By George W. Connelly The Tax Court recently issued a Summary Opinion, Malonzo v. Commissioner of Internal Revenue, T.C. Summ. Op. 2013-47, involving an individual who was underwater on her mortgage, and who abandoned the property, subsequent to which the mortgage loan was foreclosed. She took no formal steps to transfer title or provide the lender … Continue reading Before You Abandon That Underwater House, Read This!
By Hale Sheppard Life grants few chances at true redemption. The Internal Revenue Code, likewise, is not known for facilitating taxpayer salvation. Sure, under certain circumstances, taxpayers have an opportunity to file late tax-related elections to rectify an oversight, and other forms of clemency exist. However, the general rule is that taxpayers are stuck with … Continue reading The Parameters of Qualified Amended Returns Examined by Tax Court in Case of First Impression
By Hale Sheppard Back in the era of beepers, being "on call" evoked imagery of importance. Indeed, those people required by their job to carry a beeper, along with those who did so voluntary, displayed the devices with a noticeable degree of smugness. The positive aspects of this status symbol aside, anyone who has been … Continue reading If You’re On Call, You’re Out of Luck in Passive Activity Cases
By Hale Sheppard Nearly all taxpayers will face penalties by the IRS at some point, regardless of their sophistication level and size. Accordingly, tax practitioners, even those who claim not to get involved in traditional "collection" activities, must understand key aspects of abatement and collection procedures in order to effectively advise their clients. This is … Continue reading Always Say Never: Does Financial Distress Create Reasonable Cause Sufficient To Abate Tax Penalties?
By Dustin Covello & Phil Karter As Tax Blawg readers know, after the Supreme Court’s Mayo decision adopted the deferential Chevron standard for determining the validity of Treasury regulations (instead of the less deferential National Muffler standard that taxpayers preferred), taxpayers and practitioners have speculated that seeking to invalidate a regulation may be a fool’s … Continue reading Tax Court May Be The Forum Of Choice For Taxpayers Seeking To Challenge Treasury Regulations
By Hale Sheppard For better or worse, many a tax dispute has been won or lost on procedure, often on the question of whether a document - be it a tax return, refund claim, or petition - was timely filed. The centrality of this issue helps explain the renown of the otherwise unremarkable "mailbox rule" (a.k.a. … Continue reading As the World Turns: Court Rebuffs Novel Spin on International Tax Filing Rules
By Jonathan Prokup and Dustin Covello Many practitioners were taken aback by the recent Tax Court decision in Canal Corp. v. Commissioner, where Judge Kroupa issued a stinging opinion that not only recast a leveraged partnership distribution as a disguised sale, but also upheld penalties against the taxpayer for what the judge characterized as the … Continue reading Deconstructing Canal Corp. v. Commissioner – Part I