Robert Willens

9206 Results

Spin-Off Of "Cross Financed" Rental Business Does Not Qualify: December 1, 2023 - Volume 17 Issue 230 Print Report; M was engaged in two businesses, operating a hotel and renting improved real estate, both residential and commercial. The hotel business was started upon organization in 1920 a...

"True Object" Of A Mixed Transaction Determines Its Taxability: December 1, 2023 - Bulletin Print Report; The company conducts business as a "travel experience enterprise." The company conducts travel business through two legal entities, CA and CB. CA and CB are sister co...

Is This A Wash Sale?: December 1, 2023 - Bulletin Print Report; A taxpayer owns stock in Ycorporation which has, unfortunately, declined in price during the period the taxpayer has owned the stock. Thus, the taxpayer is "sitting&...

The State Was Not The "Owner" Of Collected Sales Taxes: December 1, 2023 - Bulletin Print Report; R started a business in 2014. Between August 2015 and December 2016, R's business filed sales tax returns without paying any sales tax. R's business closed in 2017. The...

Fee For Use Of Golf Simulator Not Taxable: November 30, 2023 - Volume 17 Issue 229 Print Report; Petitioner, (P), is the owner and operator of a golf simulator business. The golf simulator facility has four golf simulators, a bar, and limited food service....

Qualified Research Excludes "Funded" Projects: November 30, 2023 - Bulletin Print Report; C, an 'S' corporation, claimed tax credits for 2013 pursuant to section 41 of the Code. The Code provides a tax credit for qualified research activities. To constitute...

Severance Tax Is Based On "Gross Value" Of Natural Resources Severed: November 30, 2023 - Bulletin Print Report; E is a natural gas producer. At each well, E recovers an impure mixture of various liquid and gaseous natural resources, together with water and sediment. E uses its own equipm...

NAPA's Merger Is Structured For Tax Efficiency: November 30, 2023 - Bulletin Print Report; The Duckworth Portfolio, Inc., ("NAPA"), recently announced that it has entered into a definitive agreement to acquire Sonoma-Cutrer Vineyards,Inc., ("SCV")...

Functional Analysis Test Applied To State Law Limited Partners: November 29, 2023 - Bulletin Print Report; SorobanCapital Partners LP, ("S"), is a limited partnership composed of a general partner and limited partners. It reported as net earnings from self-employment...

PG Awarded Research Credits: November 29, 2023 - Volume 17 Issue 228 Print Report; Procter & Gamble, (PG), has long engaged in extensive research activities. As a result of these activities, PG claimed research tax credits under Sec. 41 of the I...

Premature Commencement Of Article 7 Proceeding Dismissed: November 29, 2023 - Bulletin Print Report; On September 19, 2016, petitioner, ("P"), the record owner of the "property" commenced this proceeding pursuant to Real Property Tax Law, ("RPTL")...

Concurrent Jurisdiction Over Appeals Found: November 29, 2023 - Bulletin Print Report; C owns non-residential property with an equalized municipal valuation of $1 million or greater in the City... C requested a partial abatement of its 2021 property taxes, which...

State And Local Taxes Not Aggregated For Commerce Clause Purposes: November 28, 2023 - Bulletin Print Report; During the relevant years, APP resided in Philadelphia, (the "City"), but worked exclusively in Wilmington, Delaware. Thus, she was subject to four income taxes (and...

Transfer Of Property To An LLC Not A "Retail Sale": November 28, 2023 - Volume 17 Issue 227 Print Report; A joint venture operating in California plans to partially liquidate by distributing certain tangible personal property to each of its "50/50 partners."...

Citibank Had A Physical Presence In Washington: November 28, 2023 - Bulletin Print Report; Citibank, ("C") does not have a place of business or any employees or property within Washington, ("W"). However, C generated, during the assessment period,...

"As Applied" Challenge To Utah's "AVL" Failed: November 28, 2023 - Bulletin Print Report; The property tax obligations of certain businesses--including airlines--are centrally assessed by the Utah State Tax Commission, (the "Commission"). Before 2017, the...

The Willens Deal Survey November 2023: November 27, 2023 - The Deal Survey: November 2023 Print Report; Welcome to this month's summary of deals. Full reports on some of these transactions can be found via the link in the description, or by searching the company name in our database.

Overlapping Ownership Rule Saves An RMT Transaction: November 27, 2023 - Bulletin Print Report; DP, a Country A publicly traded corporation, is the ultimate parent of a worldwide group of corporations. DP appears to be Flex LTD. The Distributing Group consists of Business...

Withholding Tax Imposed On Guaranteed Payments: November 27, 2023 - Bulletin Print Report; Taxpayer, ("TP"),is an Indiana limited liability partnership. TP files Form 1065 and Form IT-65, respectively. For the non-resident partners, TP files composite...

Continuity Of Interest And Long-Term Bonds: November 27, 2023 - Volume 17 Issue 226 Print Report; The Gulf Coast Irrigation Company was the owner of irrigation properties. Petitioner was the sole shareholder of the Irrigation Company. A contract called for a conveyance of a...

Data Entry Error Precludes Property Tax Discount: November 27, 2023 - Bulletin Print Report; For tax year 2020-21, the Assessor offered an online option to pay property tax bills...using ACH.The Assessor used a vendor known as FIS as part of the online payment pr...

Characterizing False Claims Act Settlement Payments: November 24, 2023 - Volume 17 Issue 225 Print Report; F operates dialysis centers in the U.S. and throughout the world. Between 1993 and 1995, whistleblowers brought a series of civil actions against F under the False Claims Act (...

Recordation Tax Need Not Be Paid On "Holdbacks": November 24, 2023 - Bulletin Print Report; Presidential, ("P"), is a company that conducts closings for real estate sales. A portion of the funding secured by the deed of trust, ("DOT") was not distr...

Employee Not Entitled To Any Premium Tax Credit: November 24, 2023 - Bulletin Print Report; In November 2013, petitioner was both unemployed and without health insurance. He applied for health insurance through the Federal Health Insurance Marketplace, (the "Mark...

Facilities Were Not "Processing Facilities": November 24, 2023 - Bulletin Print Report; The crux of thisdispute is where C's natural gas production stops and processing begins. Costs incurred in the production of...natural gas are not deductible...but co...

Claims Processing Services Were Rendered In Maine: November 22, 2023 - Bulletin Print Report; ESI and its affiliated entities were engaged in a unitary business that involved business activity within and outside Maine. ES sold prescription drugs by mail order delivery a...

Recapitalization Paves The Way For A Prompt Spin-Off: November 22, 2023 - Volume 17 Issue 224 Print Report; M, a domestic corporation engaged in the hardware business, owned all of the common stock and 12 percent of the preferred stock of N, a domestic corporation engaged in the appl...

Resale Exemption From Use Tax Found Applicable: November 22, 2023 - Bulletin Print Report; During the relevant tax period, S was wholly owned by a subsidiary of Wal-Mart Stores, Inc. S purchased Equipment for resale to other Wal-Mart subsidiaries that own and operate...

Johnson Controls' Disclosures Were Adequate: November 22, 2023 - Bulletin Print Report; In January 2016, at the very height of the "inversion" craze, Johnson Controls, Inc., ("J"), entered into an agreement to merge with Tyco International, plc...

Is Twenty-Seven Percent "Good" Continuity Of Interest?: November 21, 2023 - Bulletin Print Report; Crescent Point Energy Corporation, ("CPG"), announced that it has entered into an "arrangement agreement" to acquire Hammerhead Energy, Inc., ("HHRS&qu...

Presumption Of Validity Not Rebutted By Zillow.com Data: November 21, 2023 - Bulletin Print Report; P and his wife owned residential real property in V which they purchased in 2012 for $270,000. The property was reassessed in 2021 at $303,800 and P filed a grievance challengi...

Section 965 Income In Not A "Deemed" Dividend: November 21, 2023 - Bulletin Print Report; PCC's foreign subsidiaries had earnings generated outside the U.S. In 2017, the U.S. deemed such income from 1986 to 2017 repatriated into the U.S. under the "TCJA.&qu...

Taxpayer Found To Have Acquired Equitable Title To Property: November 21, 2023 - Volume 17 Issue 223 Print Report; In 1993, petitioners moved from VBV to RMV. After reading about a house for sale in the local newspaper, petitioners contacted the seller, GF. GF offered to finance the sale wi...

Partnership's Taxable Income Was "ECI": November 20, 2023 - Bulletin Print Report; YAG was formed as a Delaware limited partnership on January 2, 2001. In early 2007, YAG registered under the laws of the Cayman Islands. Until January 14, 2007, YA was YAG'...

Capital Contribution Not Described In Sec. 382(l)(1): November 20, 2023 - Volume 17 Issue 222 Print Report; T has been engaged in Business A since 1985. Part of T's business is the development of products the commercial sale of which is subject to regulatory approval; T has not y...

Aramark Does Not Act As An Agent: November 20, 2023 - Bulletin Print Report; Aramark Corporation, ("A"), provides its services based on two types of contracts: (1) profit and loss and (2) management. Under a profit and loss contract, A operate...

Real Property Was "Substantially Ready" For Its Intended Use: November 20, 2023 - Bulletin Print Report; Plaintiff, ("P"), was the owner of real property and improvements, (the "subject property"). The subject property is improved with a four-story brick apartm...

Failure To Provide Written Statement Renders "NOFD" Void: November 17, 2023 - Bulletin Print Report; The Department is a state agency. On September 27, 2017, the Department issued a notice of proposed assessment to Ingram Micro, Inc., ("I"). I requested a review of t...

Liberty Media Corporation Retires Debt Tax-Efficiently: November 17, 2023 - Bulletin Print Report; Recently, Liberty Media Corporation, ("LMC"), and a newly formed corporation, Atlanta Braves Holdings, Inc., ("ABH"), engaged in a reorganization, of the &#...

Home Office Not A Regular Place Of Business: November 17, 2023 - Volume 17 Issue 221 Print Report; Petitioner, (P), maintained a law office at 222 Madison Avenue, New York, NY during the 1983 tax year. P contended that during the 1983 tax year he maintained law offices both...

Post-Spin Equity Awards Excluded From Section 355(a)(1)(D) Calculus: November 17, 2023 - Bulletin Print Report; D is the parent of a worldwide group...engaged in Business A and Business B. D has outstanding D Debt, including the Revolver Amount. Subsidiary, ("S"), has outstandi...

Inadvertent REIT Election Treated As Not Made: November 16, 2023 - Bulletin Print Report; TP was formed on Date 2 as a State limited liability company. TP's sole member, LP, is a subsidiary partnership of a private equity real estate fund, (the "Fund")...

Adoption Tax Credit Denied: November 16, 2023 - Volume 17 Issue 220 Print Report; Under Sec. 23 of the Internal Revenue Code, a taxpayer undertaking the "adoption of a child with special needs which becomes final during a taxable year" is eligible...

The Department Of Environmental Protection Cannot Impose A Tax: November 16, 2023 - Bulletin Print Report; The Petition for Review, ("PFR"), relates to Pennsylvania's participation in the Regional Greenhouse Gas Initiative, (the "RGGI"), based on regulations...

Sham Transaction Did Not Produce A Deductible Loss: November 16, 2023 - Bulletin Print Report; In October 2002, APP incorporated F. During the 2004, 2005, and 2006 tax years,F reported net losses. Between June 4, 2003, and December 20, 2007, APP made numerous trans...

DISH Network And EchoStar Change The "Direction" Of Their Merger: November 15, 2023 - Bulletin Print Report; In August, 2023 DISH Network Corporation, ("D") entered into an Agreement and Plan of Merger, (the "Original Merger Agreement"), with EchoStar Corporation,...

Ascertaining The Date Of "Disposition" Of Stock: November 15, 2023 - Volume 17 Issue 219 Print Report; On July 1, 1958, the taxpayer purchased 100 shares of common stock. On October 1, 1958, the taxpayer entered into an agreement for the sale of this stock at a loss; and to deli...

Taxpayer Entitled To Lower "Refinancing" Rate: November 15, 2023 - Bulletin Print Report; An individual purchased four condominium units by four separate deeds. Each unit was encumbered by a different deed of trust with different lenders. The four units were transfe...

Tax Court Affirms That 90-Day Petition Deadline Is Jurisdictional: November 15, 2023 - Bulletin Print Report; On March 21, 2022, respondent issued to petitioner a notice of deficiency for tax year 2018. The notice indicated that the "last day to petition (the) Tax Court" was...

United Therapeutics Joins The List Of CVR Issuers: November 14, 2023 - Bulletin Print Report; When the parties to an acquisition are uncertain about the value of the target, it may be best to delay paying a portion of the merger consideration until such time, if ever, t...

Taxpayer Cannot Deduct Interest Paid On Another's Indebtedness: November 14, 2023 - Volume 17 Issue 218 Print Report; The taxpayers were majority shareholders in a cattle ranch known as RV. On June 19, 1965, RV borrowed $1.5 million from T at an interest rate of 10 percent per annum....

I.R.S. Tax Claims Accorded Priority Status: November 14, 2023 - Bulletin Print Report; On April 9, 2021, S filed their chapter 7 bankruptcy petition. On July 13, 2021, the I.R.S. filed their proof of claim, ("Initial Proof of Claim"). The I.R.S. stated...

Catering Services Are Subject To Sales Tax: November 14, 2023 - Bulletin Print Report; APP is a restaurant and tenant of a hotel. In addition to its restaurant services,APP also provides catering services to the hotel. The hotel contracts with banquet group...

RPT Special Dividend Should Be Free Of Withholding Tax: November 13, 2023 - Bulletin Print Report; The acquisition of RPT Realty, ("RPT"), by Kimco Realty Corporation, ("KIM"), each a real estate investment trust, (a "REIT"), seems to be proceed...

None Of The Income Allocated To KO Was "Blocked": November 13, 2023 - Bulletin Print Report; The Coca-Cola Company, ("TCCC"), is the ultimate parent of a group of entities, ("Company"). The Internal Revenue Service made adjustments that increased pe...

Distribution Motivated By Mixed Purposes Satisfies Sec. 355: November 13, 2023 - Volume 17 Issue 217 Print Report; X has been engaged in the farming business for more than five years. The stock is owned 25 percent each by Father, Mother, Son, and Daughter. Although Father and Mother partici...

Fusion Targets Are Not Subject To Sales Tax: November 13, 2023 - Bulletin Print Report; TP operates the "Facility" that has on its premises: a storefront, two pistol shooting ranges, one rifle shooting range, a classroom.... The shooting ranges are only...

Internal Sales Valued By Reference To Comparable External Sales: November 10, 2023 - Bulletin Print Report; M is an asphalt manufacturer with production facilities in Washington. M's manufacturing division provides asphalt both to its construction division ("internal sales&q...

"Customer/Competitor" Business Purpose Supports A Split-Off: November 10, 2023 - Volume 17 Issue 216 Print Report; Y is engaged in the business of commercial printing and has been so engaged for the past five years. Its outstanding stock consists of shares of common stock of which 15 percen...

Non-Profit Corporation Did Not Distribute Income or Profit: November 10, 2023 - Bulletin Print Report; Plaintiff, ("P"), paid $7,500 to become a member of the Club, a non-profit organization formed under N.J.S.A. 15A-2.1. His membership payment was memorialized in a &q...

Collection Notice Violated The "Automatic Stay": November 10, 2023 - Bulletin Print Report; B filed a chapter 13 petition for relief on March 19, 2021. On November 1, 2021, Treasury sent B a notice attempting to collect a pre-petition claim. Through the notice, Treasu...

Reverse Morris Trust Features A Downstream Merger: November 9, 2023 - Bulletin Print Report; In most cases, the second "leg"of a "Reverse Morris Trust" transaction involves the merger of spincowith and into an unrelated corporation. In o...

John Malone Is Not Infallible: November 9, 2023 - Bulletin Print Report; In January 2010, Liberty Global, Inc., ("LG"), indirectly owned more than 50 percent of the voting interests in Jupiter Telecommunications Co. Ltd., ("JT"),...

Sec. 305(b) Found Inapplicable: November 9, 2023 - Volume 17 Issue 215 Print Report; On Date K, SHA was one of three unrelated individuals that collectively owned all of the stock of T. T was a State X corporation whose outstanding stock consisted of one class...

Home Office Deductions Not Permitted: November 9, 2023 - Bulletin Print Report; P is an IT professional. P was employed by SRA OSS. In addition to working for SRA OSS, P purportedly conducted an activity that he reported as a business activity on Schedule...

Tender Offer And Merger Treated As An Integrated Acquisition Of Assets: November 8, 2023 - Bulletin Print Report; Cadeler A/S, a public limited company incorporated under the laws of Denmark, is offering to exchangefor each outstanding share of Eneti, Inc., a corporation incorporated...

Trustees Can "Manage" The Affairs Of A REIT: November 8, 2023 - Volume 17 Issue 214 Print Report; Advice has been requested whether trustees of an unincorporated trust can contract for the construction of an office building on land owned by the trust without adversely affec...

Non-Owning Spouse Has No Interest In Marital Property: November 8, 2023 - Bulletin Print Report; R owes the United States $327,419.11 for unpaid income taxes, interest, and penalties. Multiple federal liens attached to his property interests, including his interest in the...

MCL 211.78t Is Both Exclusive And Constitutional: November 8, 2023 - Bulletin Print Report; Respondents owned real properties and fell behind on their property taxes. Petitioner foreclosed their properties effective March 31, 2021. None of the respondents tim...

Party To A Reorganization: November 7, 2023 - Volume 17 Issue 213 Print Report; X corporation changed its name and issued new stock certificates to its shareholders in exchange for the X stock held by them prior to X corporation's change in name. The t...

Cash Boot Purge Includes Normal Quarterly Dividends: November 7, 2023 - Bulletin Print Report; D, which may well be Johnson & Johnson, is the parent of a worldwide group of entities, (the "DWG"). D is also the common parent of an affiliated group that files...

Certain Clothing And Footwear Is Exempt From Sales Tax: November 7, 2023 - Bulletin Print Report; Petitioner, ("P"), is a retailer of party goods... P is owned by PCH, a publicly traded retail chain. A statement of proposed audit changes was issued to P, "SSO...

Penalty Approval After Formal Communication Found Timely: November 7, 2023 - Bulletin Print Report; An examination of P's returns for 2011 and 2012 was conducted by a tax compliance officer, ("TCO"). On June 2, 2014, the TCO issued P letter 692 ("15-day let...

Extension Of Variable Prepaid Forward Contracts Is A Taxable Event: November 6, 2023 - Bulletin Print Report; In "EI," we considered whether decedent realized capital gain by executing amendments extending two variable prepaid forward contracts, ("VPFCs"), in 2008....

Option Treated As Exercised: November 6, 2023 - Volume 17 Issue 212 Print Report; Prior to Date A, TP owned 15,000 shares of M stock. On Date A and Date B, TP was granted 10,000 Incentive Stock Options (ISOs) and 30,000 ISOs for M stock, respectively. The ex...

Accumulated Depreciation Includes The Cost Of Removal: November 6, 2023 - Bulletin Print Report; S owns an interstate electric transmission line. S files an annual valuation report with the Arizona Department of Revenue, (the "Department"), and maintains its book...

Reliance On Agent Does Not Excuse Late e-Filing: November 6, 2023 - Bulletin Print Report; L hired CPA KW to prepare and file his federal income tax returns for 2014-2016. Treasury Regulations deemed KW a "specified tax return preparer," requiring him to fi...

Grants Excluded From Gross Income: November 3, 2023 - Volume 17 Issue 211 Print Report; State established the Grant Program, run by Department,for the purpose of securing job-creating economic development opportunities....

An 'S' Election Is Property Of The Estate: November 3, 2023 - Bulletin Print Report; O founded V in 1993. O elected that it be treated as an 'S' corporation. V filed for chapter 11 bankruptcy. V contracted to sell its assets. The sale price was $370 mil...

Transfer Of Property At Husband's Death Was Exempt From Death Taxes: November 3, 2023 - Bulletin Print Report; The Ws created the Trust on June 26, 2007. The Trust assets included the Ws' personal residence and 5,938 shares of stock. The Ws previously owned the residence as tenants...

Military Contractor Engaged In "Sales For Resale": November 3, 2023 - Bulletin Print Report; O produces specialty vehicles. The U.S. government regularly contracts with O to design and manufacture vehicles for the U.S. military. O routinely purchases both direct and in...

FUN Will Cease To Be An MLP: November 2, 2023 - Bulletin Print Report; When Are Special Foods and Beverages Medical Care Expenses?; November 2, 2023 - Volume 17 Issue 210 Print Report; On Date 2, the taxpayer, (TP), had a physician advise adouble mastectomy in orderto address medical conditions "X" and "Y". On Date 3,...

Loss Corporation Permitted To Make A Late Section 382(l)(5)(G) Election: November 2, 2023 - Bulletin Print Report; For the taxable year endingDate 1, Parent and its subsidiaries, which included Sub 1 and Sub 2, elected to file a consolidated federal income return, (the "Parent Gr...

Taxpayer Did Not Dwell At His Purported Principal Residence: November 2, 2023 - Bulletin Print Report; P claimed a principal residence exemption, ("PRE"), on the H property in 2005 and enjoyed the exemption for several years. At some point in 2012, P began caring for h...

Data Migration And Management Is A Qualified Trade Or Business: November 2, 2023 - Bulletin Print Report; C was formed in Year 1 and elected classification as an association to be taxed as a 'C' corporation. On Date 1, C elected to be classified as an 'S' corporatio...

PEAK And DOC Forgo A Basis Step-Up: November 1, 2023 - Bulletin Print Report; HealthpeakProperties, Inc., ("PEAK"), and Physicians Realty Trust, ("DOC"), are each real estate investment trusts, ("REITs"), within the me...

"Capital Asset" Is Narrowly Construed: November 1, 2023 - Volume 17 Issue 209 Print Report; TP owned Vessel, a fishing vessel. In Year 2, TP sold Vessel to Transferee. TP retained ownership of Vessel's "catch history" and license limitation per...

Claims Barred By Sovereign Immunity: November 1, 2023 - Bulletin Print Report; The Development Authority of DeKalb County, (the "Authority"), is the title owner for a piece of real property, (the "property"). The Authority leased the p...

Escheat Provisions Found To Be Unconstitutional: November 1, 2023 - Bulletin Print Report; At the time of his death in 2006, D owned a parcel of property in Richmond, Virginia. Payment of local property taxes on the parcel ceased after his death. The City filed an ac...

O And SRC Propose A Tax-Free Reorganization: October 31, 2023 - Bulletin Print Report; Realty Income Corporation, ("O"), and Spirit Realty Capital, Inc., ("SRC"), are each real estate investment trusts, ("REITs"), within the meaning...

Citigroup Must Pay Sales Tax On Purchase Of Bicycle Equipment: October 31, 2023 - Volume 17 Issue 208 Print Report; P has entered a contract with the NYCDOT to operate a bicycle rental program (Program). P is Citigroup. The Program provides Users with access to bikes located at hundreds of s...

"MA" Organization Not Exempt From Illinois Income Tax: October 31, 2023 - Bulletin Print Report; Y requested information regarding the taxability of Medicare Title XVIII premiums under Illinois law. Section 201(a) of the Illinois Income Tax Act, ("IITA"), imposes...

Settlement Payment For Tort Damages Not Deductible As "COGS": October 31, 2023 - Bulletin Print Report; AnadarkoPetroleum Corporation, ("A"), an oil and natural gas production company, partnered with British Petroleum, ("BP")...through a joint operating...

The Equitable Tolling Principle Does Not Apply To Section 6511: October 30, 2023 - Bulletin Print Report; Mr. W initiated this action on January 13, 2020. He alleged that he owed an outstanding tax debt, but also that the I.R.S. had "seized" his tax refunds for 2001 and 2...

"Purge" Allows For 'B' Reorganization: October 30, 2023 - Volume 17 Issue 207 Print Report; X is engaged in the banking business. Y is a holding company. Y holds "d%" of the stock of X. Y proposes to acquire sufficient shares of X so that it will hold at lea...

No Relief Where Excessive "Household Income" Found: October 30, 2023 - Bulletin Print Report; Utah Code Ann. section 59-2-103(2) provides for the assessment of property as follows: "All tangible taxable property located within the state shall be assessed and taxed...

New Jersey's Litter Fee Applies To Manufacturers: October 30, 2023 - Bulletin Print Report; C manufactures litter-generating packaged meat products which it distributes throughout the country. C stores and distributes meat products through its Swedesboro, New Jersey f...

Who Owns A Lottery Ticket?: October 27, 2023 - Volume 17 Issue 206 Print Report; A and B are individual taxpayers who have been married to each other since date (a). Throughout their marriage, they have filed joint returns, held their property in joint owne...

Netflix And Its Competitors Do Not Offer "Video Service": October 27, 2023 - Bulletin Print Report; Illinois requires anyone who wants to provide "cable or video service" to obtain permission from state or local authorities, and pay a fee, as a condition of using pu...

Government Cannot Obtain Summary Judgment On Willfulness Dispute: October 27, 2023 - Bulletin Print Report; K was born in Japan. K obtained a U.S. Permanent Resident Card. K does not speak English. In 2014, the Japanese Tax Authority informed the I.R.S. that K received certain income...

Novartis Sets Sandoz Free: October 27, 2023 - Bulletin Print Report; Recently, Novartis AG completed the separation of its subsidiary, Sandoz Group AG. The business purpose asserted for the spin-off was the ubiquitous "fit and focus,"...

Will SWX's Spin-Off Of Centuri Group Holdings, Inc. Be Delayed?: October 26, 2023 - Bulletin Print Report; ...

Redeemed Shareholder Not Barred From Attribution Waiver: October 26, 2023 - Volume 17 Issue 205 Print Report; X is a domestic corporation engaged in an ongoing business. It has 1,000 shares of voting common stock outstanding which are held as follows: A (548), B-D (39 each), E (333), a...

A Form 1099-C Does Not Discharge Debt: October 26, 2023 - Bulletin Print Report; Debtor, ("D"), filed a chapter 13 petition on July 8, 2022. CF filed an unsecured claim on July 29, 2022. D objected to CF's claim. D argues that "the debt h...

Retroactive Change To Terms Of Trust Saves Transfer Tax: October 26, 2023 - Bulletin Print Report; On September 4, 2018, Grantors, ("Gs"),created Trust. It is a revocable living trust. During their lifetimes, G are entitled to a quarterly distribution of &quo...

Research Credits Are Subject To The Section 38(c) Limitation: October 25, 2023 - Bulletin Print Report; JI, an 'S' corporation, reported research credits under section 41 to its shareholders for 2013 through 2016. Shareholders J and K claimed their share of research credi...

Parent's Cancellation of Sub's Debt Does Not Cause CODI: October 25, 2023 - Volume 17 Issue 204 Print Report; P, a foreign corporation, owned all of the stock of S, a domestic corporation. S conducted Business A. In its business, S maintained an inventory of component parts....

Public Auction That Excluded Potential Bidders Ruled Invalid: October 25, 2023 - Bulletin Print Report; The provisions of the Code governing the procedure for conducting a tax sale begin with the requirement for the Department to provide notice to the property owner. Payment to t...

The Willens Deal Survey October 2023: October 24, 2023 - The Deal Survey: October 2023 Print Report; Welcome to this month's summary of deals. Full reports on some of these transactions can be found via the link in the description, or by searching the company name in our database.

Warrants For Stock: Recapitalization Or Taxable Exchange?: October 24, 2023 - Bulletin Print Report; Allego N.V., ("ALLG," or the "company"), recently announced that it has commenced an "exchange offer," (the "Offer"), and companion &quo...

Restrictions Imposed On NOL Carrybacks In N.Y. Are Proper: October 24, 2023 - Volume 17 Issue 203 Print Report; Because P sustained net operating losses (NOLs) of $110,833 in 1973 and $235,226 in 1974, he filed a claim for both Federal and New York refunds for income taxes paid in 1971,...

Getting To The Essence Of A Canadian "Butterfly" Transaction: October 24, 2023 - Bulletin Print Report; D is a publicly traded corporation engaged in non-pharmaceutical Business A and non-pharmaceutical Business B, which includes conducting research and development activities for...

Installed Cranes Are Real Property: October 24, 2023 - Bulletin Print Report; TP operated a marine cargo terminal and was in the business of providing marine cargo handling services at the Port of Virginia. The Department audited TP and assessed use tax...

No Withholding Tax Imposed On Redemption Distributions: October 23, 2023 - Bulletin Print Report; One of the more interesting deals in the market is Vista Outdoor, Inc.'s proposal for disposing of its Sporting Products business and returning to its shareholdersthe...

"Place Of Amusement" Found: October 23, 2023 - Volume 17 Issue 202 Print Report; Article 28 of the (New York State) Tax Law requires a sales tax to be paid on any "admission charge" for use of any "place of amusement." The taxpayer (TP)...

Valuation Errors In Centrally Assessed Property Cannot Be Corrected: October 23, 2023 - Bulletin Print Report; After persuading the department that the valuation methodology that it hadused to assess taxpayer's property in 2020-21 had been flawed, taxpayer asked the department...

"SOH" Transfer Application Was Not Timely Filed: October 23, 2023 - Bulletin Print Report; This case involves Florida's "SOH" assessment cap. In 2008, voters approved a separate constitutional amendment that permits a homeowner to transfer the benefit a...

Sonny Corleone's Tax Problem: October 20, 2023 - Bulletin Print Report; This case concerns two IRAs that James Caan, ("C"), held at UBS. One of the IRAs held a partnership interest ("PAI") in a hedge fund ("PAF"). It w...

Refund Of Subscription Price Of Rights: October 20, 2023 - Volume 17 Issue 201 Print Report; The outstanding stock of X consists of a single class of common stock. In 1973, the directors of X distributed to its common shareholders transferable rights to subscribe, on o...

Certificate Holder Not A Person Entitled To Surplus Proceeds: October 20, 2023 - Bulletin Print Report; Every March, the City of Baltimore, Marylandissues a list of residential properties with attached liens that will become available at the tax sale in May. When its bids a...

Hyatt Hotels Cannot Avail Itself Of The Trust Fund Doctrine Exception: October 20, 2023 - Bulletin Print Report; Hyatt Hotels Corporation was the U.S. common parent for the Hyatt group of companies. Petitioner owns, leases, manages, and franchises hotel, residential, and timeshare propert...

Trust NOL Expires Upon Termination: October 19, 2023 - Volume 17 Issue 200 Print Report; GM executed a trust agreement on January 1, 2002 that created the MCLT. The corpus of the trust consisted of part ownership in several real estate partnerships. The trust was f...

VMW Shareholders Must Elect The Form Of Merger Consideration: October 19, 2023 - Bulletin Print Report; Broadcom, Inc., ("AVGO"), and VMware, Inc., ("VMW"), announced that the deadline for VMW's shareholders to elect the form of merger consideration they w...

BAM To Separate A Portion Of Its Asset Management Business: October 19, 2023 - Bulletin Print Report; Brookfield Asset Management recentlyannounced the details of its ambitiousplan to distribute to its Class A and Class B shareholdersall of the stock of a newl...

WHLR Replaces Equity With Debt: October 19, 2023 - Bulletin Print Report; Wheeler Real Estate Investment Trust, Inc., ("WHLR"), is offering to exchange shares of its Series D Cumulative Convertible Preferred Stock for six percent Subordinat...

No Tax Relief Granted For Repayment Of Overpaid Wages: October 18, 2023 - Bulletin Print Report; Under Utah Code Ann. section 59-10-104(1), "a tax is imposed on the state taxable income of a resident individual." State taxable income means the resident individual...

Real Property Correctly Classified Through An Article 78 Proceeding: October 18, 2023 - Bulletin Print Report; In this article 78 proceeding for declaratory judgment and other relief the petitioner seeks to reverse the administrative decision of the DOF,upheld on appeal by the Com...

Bargain Sale Did Not Produce Deductible Loss: October 18, 2023 - Bulletin Print Report; In 2006, S purchased three retail buildings as investments. In 2017, S transferred the "E" property to the City and claimed a loss relating to that property. S stated...

Sec. 83(b) Election Properly Disregarded: October 18, 2023 - Volume 17 Issue 199 Print Report; On March 26, 1990, the Board of Directors of C voted to transfer 300 shares of stock to Employees (Es) subject to restrictions that constitute "a substantial risk of forfe...

Floating Boat Docks Are Tangible Personal Property: October 17, 2023 - Bulletin Print Report; Applicant has rented floating dock space from a Lessor for ten years, with the lease renewal and billing cycle being done annually. The Lessor has charged the Applicant sales t...

Related Party Loss From Sale Of Inventory Disallowed: October 17, 2023 - Bulletin Print Report; APP, a California resident, was the sole owner and president of TM, a California-based 'S' corporation that developed and manufactured custom boats. In 2016, prior to d...

Sales Tax and Donuts: October 17, 2023 - Volume 17 Issue 198 Print Report; Krispy Kreme Doughnut Corporation, (KK), sought review of a decision that it must collect sales tax at the four percent rate (rather than at the one percent rate) on...

Exemption Began On First Day Of Real Property Tax Year: October 16, 2023 - Bulletin Print Report; Petitioners, ("Ps"), are the owners of an 18-acre parcel of real property. On March 4, 2004, the Town adopted a resolution whereby Ps were granted a real property tax...

Triangular Merger And Liquidation Recast As A 'C' Reorganization: October 16, 2023 - Volume 17 Issue 197 Print Report; P, whose stock is widely held and publicly traded, is a manufacturing corporation organized under the laws of State A. T, whose stock is closely held, is a manufacturing corpor...

Tractor Did Not Satisfy The "Double-Direct" Test: October 16, 2023 - Bulletin Print Report; TP, an Indiana farmer, purchased a Ford 5000 tractor, ("Tractor"), at auction. TP paid sales tax on the Tractor. TP requested a refund of the tax paid, stating that t...

Nine West Failed To Meet Its Evidentiary Burden: October 16, 2023 - Bulletin Print Report; Nine West, ("NW"), is a global designer, marketer, and wholesaler of apparel... NW paid CAT on receipts for all goods shipped to distribution centers in Ohio, includi...

Purchaser Of Foreign Goods Was Not The "Importer": October 13, 2023 - Bulletin Print Report; Plaintiff is a wholesaler and retailer of truck parts and tires. From 2012 to 2017, TT purchased tires wholesale from Chinese manufacturers. The parties stipulate that, "A...

Series Of Steps Collapsed Into An 'F' Reorganization: October 13, 2023 - Bulletin Print Report; Parent, a Country A corporation, is the foreign parent of a worldwide group, (the "Parent Group"). Parent has a single class of voting common stock outstanding that i...

Period For Requesting A "CDP" Hearing Is Subject To "Equitable Tolling": October 13, 2023 - Bulletin Print Report; When the I.R.S. files a notice of federal tax lien, ("NFTL"), on a taxpayer's property to collect an unpaid assessment, the Code gives the taxpayer the right to a...

Recomputing A Worthless Stock Deduction: October 13, 2023 - Volume 17 Issue 196 Print Report; P (or TP) is an Indiana corporation engaged in the manufacture of precision instruments. M was an Illinois corporation engaged in a business related in character to that conduc...

Exxon and Pioneer Reach Historic Agreement: October 12, 2023 - Bulletin Print Report; It did not take long for the rumors to become reality. Exxon Mobil Corporation ("Exxon"),and Pioneer Natural Resources, ("Pioneer"), jointly announced...

Carry Back Of NOL To Resident Taxable Year Permitted: October 12, 2023 - Volume 17 Issue 195 Print Report; Petitioner, (P), was a resident of New York State (NYS) during taxable years 1993-1995. P intends to change his residence during 1996 at which time he will be considered a nonr...

I.R.S. Extends Wash Sale Relief To All Money Market Funds: October 12, 2023 - Bulletin Print Report; An investment company that is registered under the Investment Company Act of 1940that meets the requirements of Rule 2a-7 under the 1940 Act is permitted to hold itself o...

Tours Conducted For Amusement Are Subject To Sales Tax: October 12, 2023 - Bulletin Print Report; SC charges customers for rides in horse-drawn carriages in downtown Nashville, Tennessee. SC is licensed and regulated by the Commission. SC charges its customers based on time...

Sale Of Scientific Books By A Museum Produces UBTI: October 11, 2023 - Volume 17 Issue 194 Print Report; The organization maintains and operates an art museum devoted to the exhibition of American folk art. It operates a shop in the museum that offers for sale to the general publi...

Electronically Delivered Software Not Subject To Sales Tax: October 11, 2023 - Bulletin Print Report; TMRsubmitted a timely sales tax refund claim. The Department issued a Notice of Denial Letter. TMR is an affiliate of T-Mobile, ("TM"), and acts as a procuremen...

OTCs Are Technology Companies: October 11, 2023 - Bulletin Print Report; The Online Travel Companies, ("OTCs"), are technology companies that operate websites that enable travelers to research destinations...and request reservations... The...

Restored Pay And Allowances Not Excludible From Gross Income: October 11, 2023 - Bulletin Print Report; The issue is whether forfeited military pay that is subsequently restored to a service member pursuant to section 875 of the Uniform Code of Military Justice when a court-marti...

BMY Will Use CVRs In Connection With Its Acquisition Of MRTX: October 10, 2023 - Bulletin Print Report; Bristol-Myers Squibb, ("BMY"), and Mirati Therapeutics, Inc., ("MRTX"), announced that they have entered into a definitive merger agreement pursuant to ...

DISH Network Scores A Refund Of Penalties And Interest: October 10, 2023 - Bulletin Print Report; Washington imposes a "B&O" tax on every person that has a substantial nexus with this state...for the act or privilege of engaging in business activities. The tax...

Federal NOLs Cannot Offset Connecticut AGI: October 10, 2023 - Volume 17 Issue 193 Print Report; In 2008, the plaintiffs reported a net operating loss (NOL) of $66,044,546. As a result of the NOL, the plaintiffs sought to reduce their 2003 federal tax liability to zero and...

Taxation Of "Motor Vehicles" Is Capped: October 10, 2023 - Bulletin Print Report; In Jack's Custom Cycles, Inc. v. South Carolina Department of Revenue, 439 S.C. 35, 885 S.E.2d 433 (Ct. App. 2023), the Court of Appeals held that the te...

Food For Home Consumption Exempt From Sales Tax: October 9, 2023 - Bulletin Print Report; Company, ("C"), is a remote seller of food products and has no physical presence in Colorado, ("CO"). C does not have any retail locations. The food product...

Holidays And Holding Period: October 9, 2023 - Volume 17 Issue 192 Print Report; The taxpayer purchased a security from a registered security exchange on December 24, 1968. He made payment for and received delivery of the security on December 30, 1968, and...

Economic Substance Doctrine Precludes Alcohol Fuel Mixture Credits: October 9, 2023 - Bulletin Print Report; The "VEETC" (or the "alcohol fuel mixture credit") was available pursuant to section 6426(b) until the end of 2011 for taxpayers who created qualifying fuel...

Service Provider Ineligible For Industrial Processing Exemption: October 9, 2023 - Bulletin Print Report; S describes itselfas a "precision oncology company" established to partner "with pharmaceutical companies for cancer drug development..."S state...

AMC May Proceed With Its Restructuring Plan: October 6, 2023 - Bulletin Print Report; AMC Entertainment Holdings, Inc., ("AMC"), is now poised to implement its controversialrestructuring plan since, on August 11, 2023, the court finally approved...

Tour Bus Not A "Place Of Amusement": October 6, 2023 - Volume 17 Issue 191 Print Report; Petitioner, (P), intends to provide bus sightseeing tours in midtown Manhattan. The tour is narrated by two guides, runs 75 minutes in duration, and follows a 4.2 mile route. T...

Habitual Late Filer Had Statutory Penalty Reduced: October 6, 2023 - Bulletin Print Report; Taxpayer is appealing the penalty assessed by the Division under Utah Code Ann. section 59-2-207, for the late filing of the annual property tax statement for the 2022 tax year...

Claims Court Incorrectly Conflated Two Tax Doctrines: October 6, 2023 - Bulletin Print Report; GSS Holdings (Liberty), Inc., ("GSS"),serves as the managing member and owner of Liberty Street Funding LLC, ("LS"). In September 2006, LS purchased a...

Consent Payment Does Not Result In "Significant Modification": October 5, 2023 - Volume 17 Issue 190 Print Report; TP is a publicly traded and widely held corporation. S is wholly-owned by TP and is an entity disregarded as separate from TP. S has "a" series of publicly-traded exc...

Writ Of Mandamus Denied: October 5, 2023 - Bulletin Print Report; O is a school district. In June 2023, it began the process to place a new operating levy on the November 2023 general-election ballot. R.C. 5705.03 establishes the process that...

Underpayment Penalty Falls In The Face Of Substantial Authority: October 5, 2023 - Bulletin Print Report; TP's Schedule C described his business as "farmer/produce retail." TP's business in 2015 involved the sale of marijuana products. After audit, the Department...

Tardy Administrative Claim For Refund Bars Lawsuit: October 5, 2023 - Bulletin Print Report; This case concerns W's 2016 and 2018 income taxes, Those taxes were one of the subjects of W's Chapter 13 bankruptcy proceedings in the U.S. Bankruptcy Court. The I.R.S...

Is LLY's PNT Acquisition A Business Combination Or Asset Acquisition?: October 4, 2023 - Bulletin Print Report; Eli Lilly and Company, ("LLY") and POINT BiopharmaGlobal, Inc., ("PNT"), announced a definitive agreement for LLY to acquire PNT, a "radiopharmac...

Redemption Of Non-Voting Common Stock Found To Be A Distribution: October 4, 2023 - Volume 17 Issue 189 Print Report; Corporation has outstanding 150 shares of voting common stock and 1,657.8 shares of non-voting common stock. A, the President and Chairman of the Board of Directors, directly o...

"Taking" Does Not Occur When Condemnation Action Is Filed: October 4, 2023 - Bulletin Print Report; At issue in this case is whether the former owners of property that was taken by the City through eminent domain are entitled to a refund of the property taxes they paid betwee...

Taxpayer Successfully Changed His Domicile: October 4, 2023 - Bulletin Print Report; Taxpayer, ("TP"), asserts thathe was not required to file Louisiana, ("LA"), income tax returns or pay LA income tax for the Tax Years because he was...

Pledging Option Stock As Collateral: October 3, 2023 - Volume 17 Issue 188 Print Report; Company has extended Incentive Stock Options to its employees. Following exercise of an option, the employee may enter into a "Margin Account Agreement" (the Agreemen...

Theft By False Pretenses Not Established: October 3, 2023 - Bulletin Print Report; J began investing in the real estate activities of H in 2001 and continued through approximately the end of 2011. J invested through two negotiated unsecured promissory notes,...

Only Duress Can Discredit An Arm's-Length Sale: October 3, 2023 - Bulletin Print Report; The Fiscal Officer valued the subjectproperty, an automobile dealership, at $988,900 for tax year 2019. The BOE filed a complaint seeking a value of $2,450,000 with the B...

Audiometers Are Not Hearing Aids: October 3, 2023 - Bulletin Print Report; Applicant uses items, referred to as "audiometers," in its business to "test patients for possible hearing aids." Sales of hearing aids and hearing aid supp...

Starbucks Doubleshot Energy Drink Not Subject To Sales Tax: October 2, 2023 - Volume 17 Issue 187 Print Report; Petitioner's stores sell Starbucks Doubleshot Energy (SDE) coffee drinks in cans for off-premises consumption. Labels submitted by Petitioner for the drinks listed as the p...

Lease Revenues From "COAMs" Exempt From Sales Tax: October 2, 2023 - Bulletin Print Report; F owns and operates an amusement facility in Georgia that contains an arcade room... Some of the equipment used at F's facility...are classified as "coin operated amus...

Candy Is Taxed At The "Food" Rate: October 2, 2023 - Bulletin Print Report; Applicant is a business that sells various in-house made fudge, in-house made chocolate, and various other types of individual pieces of candy. It was represented that "th...

Debtor Only Entitled To "Surplus Proceeds" From Foreclosed Property: October 2, 2023 - Bulletin Print Report; After Mr. Freed, ("F"), fell behind approximately $1,100 on his property taxes, T, acting on behalf of the County, and pursuant to Michigan's "GPTA," fo...

Converting An MLP Into A REIT: September 29, 2023 - Volume 17 Issue 186 Print Report; PS is a publicly traded limited partnership that owns and operates Property. PS owns the stock of two subsidiaries, Sub 1 and Sub 2. To improve access to capital markets and fo...

Capitalized Interest Is Not Deductible: September 29, 2023 - Bulletin Print Report; SSE sells commercial, industrial, and residential electric services. H owned 96 percent of the stock and W owned the remaining four percent. H chose to have SSE be a 'C'...

Certain Penalties Not Subject To Supervisory Approval Requirement: September 29, 2023 - Bulletin Print Report; Petitioner, Piper Trucking & Leasing, LLC, is a single-member limited liability company. Employers are required to file Form W-2...and Form W-3 with the Social Security Adm...

Regulation Curing Constitutional Defect Applied Retroactively: September 29, 2023 - Bulletin Print Report; Lorillard Tobacco Company, ("LTC"), claimed a 100 percent exception to the add-back of New Jersey, ("NJ"), allocated royalties it paid to its wholly owned s...

Conversion Did Not Result In A New Obligor On The Debt Instrument: September 28, 2023 - Bulletin Print Report; LLC 1 is engaged in Business A. LLC 1 is wholly owned by LLC 2. LLC 2 is wholly owned by LLC 3. LLC 3 is "s%" owned by LLC 4, with the remaining interest held by a th...

Acquiring Control In A "Permissible" Manner: September 28, 2023 - Volume 17 Issue 185 Print Report; X and Y were corporations engaged in manufacturing. A and B, individuals, each owned 50 percent of the stock of X. A owned 25 percent of the stock of Y and X owned the remainin...

Equipment To Be Used In A Data Center Is Exempt From Sales Tax: September 28, 2023 - Bulletin Print Report; In 2014, TP began purchasing equipment to establish a data center in Virginia, ("V"). The purchased equipment was delivered to a storage facility...but not to the sit...

The Ultimate Destination Determines The Situs Of Receipts: September 28, 2023 - Bulletin Print Report; V is a global manufacturer of oleo-chemicals and personal care products. It manufactures bar soap, deodorant, and similar items at its plant in Kansas. V has no property or emp...

Deferred Fees Sourced Using The "BAP" For The Years Earned: September 27, 2023 - Bulletin Print Report; In 2017, petitioners were non-resident partners of Aristeia Holdings, L.P., ("A"). A owned 100 percent of AristeiaCapital, LLC, ("AC"), a disregarded...

Sales of Property Between "Related Parties": September 27, 2023 - Volume 17 Issue 184 Print Report; The total stock issued by petitioner, W.A. Drake, Inc., (WD), was 4,380 shares. WD had acquired 1,176 1/3 shares which were held in its treasury. The remaining 3,203...

Botox Found Subject To Use Tax: September 27, 2023 - Bulletin Print Report; Applicant is a medical spa that offers "cosmetic injectionsThe cosmetic products are purchased from out of state and are injected by registered nurses or nurse pract...

Resident Credits Are Limited To Taxes Imposed On Income: September 27, 2023 - Bulletin Print Report; TPs were Virginia, ("V"), residents, and the husband, ("H"), was a shareholder in an 'S' corporation, ("SSC"), that paid corporate franchi...

Liberty Media's Proposed "Business Combination" With SIRI: September 26, 2023 - Bulletin Print Report; In November 2021, Liberty Media Corporation, ("LMC"), acquired sufficient additional stock in Sirius XM Holdings, Inc., ("SIRI"), to place LMC "in cont...

Gain From Sale Of Real Estate Treated As "IRD": September 26, 2023 - Volume 17 Issue 183 Print Report; A, an individual, entered into a real estate sales contract containing a clause making the contract cancellable by either party if the borrower did not obtain a mortgage commit...

Taxpayer Was Not A "Bona Fide Non-Resident": September 26, 2023 - Bulletin Print Report; Taxpayer, ("TP"), purchased a truck in 2018 and another truck in 2019 from a Rhode Island, ("RI") dealer and both times used a Massachusetts address. TP fil...

Connections With Virginia Did Not Prevent Domicile Change: September 26, 2023 - Bulletin Print Report; The Department of Revenue, (the "Department),determined that the taxpayer, ("TP"), was taxable as a part-year resident of Virginia, ("V") and iss...

Compression System Was Not Farm Machinery And Equipment: September 26, 2023 - Bulletin Print Report; Taxpayer, ("TP"), is an Oregon corporation engagedin the business of compressing large bales, consisting of straw, into smaller bales using a "Compression...

The Deal Survey September 2023: September 22, 2023 - The Deal Survey: September 2023 Print Report; Welcome to this month's summary of deals. Full reports on some of these transactions can be found via the link in the description, or by searching the company name in our database.

"Proportional" Payments Of Compensation Was A Disguised Dividend: September 22, 2023 - Bulletin Print Report; The Vs formed K, a C corporation, in 2003. On February 13, 2012, K sold its assets to a third party for a total sales price of $5.1 million. The buyer issued two promissory not...

Social Security Benefits Are Not An "Internal-Revenue Tax": September 22, 2023 - Bulletin Print Report; S held the position of I.R.S. Senior Appraiser beginning on July 10, 2006. S transferred from Connecticut to Hawaii. On September 16, 2011, C, S's supervisor, received an a...

Sec. 1341 Applies To "Arrowsmith" Payments: September 22, 2023 - Volume 17 Issue 182 Print Report; A, an individual, owned 75 percent of the outstanding stock of X. X owned all of the stock of three domestic corporations. In 1976, X adopted a plan of liquidation and pursuant...

The Section 6511 Limitations Periods Are Jurisdictional: September 22, 2023 - Bulletin Print Report; On August 16, 2010, the I.R.S. prepared a substitute income tax return for Plaintiffs for the tax period ending December 31, 2008. The return resulted in an assessment of taxes...

Income From Disposition Of Property Not Treated As "IRD": September 21, 2023 - Volume 17 Issue 181 Print Report; B, A's father, died testate on "X." During B's lifetime, B was a professional artist. At B's death, B owned a number of the paintings that B had created....

Sanitization Of Textiles Constitutes "Processing": September 21, 2023 - Bulletin Print Report; A operates industrial facilities in Tennessee. A is in the business of leasing hygienically-clean textiles to customers for a single use. Some are new and some are used. When A...

Remedial Actions Survive The Death Of A Party: September 21, 2023 - Bulletin Print Report; After G passed away in July 2003, his wife, L, was the sole beneficial owner of the "Swiss Account." She passed away in 2021. The parties agree that she failed to tim...

Interest On A Deficiency Runs From Due Date Of Return: September 21, 2023 - Bulletin Print Report; On April 13, 2018, petitioner filed an electronic request for an extension of time within which to file her New York State personal income tax return for the tax year 2017. The...

Loss On Sale Of Bonds Not Precluded By Sec. 1091: September 20, 2023 - Volume 17 Issue 180 Print Report; Y would like to sell 98 U.S. Treasury 7 1/2 percent bonds and purchase, on the same day. 98 U.S. Treasury 8 3/8 percent bonds. The U.S. Tre...

Asset Reorganizations Implicate The Disposition-Payment Rule: September 20, 2023 - Bulletin Print Report; In 2011, TBLtransferred intangible property to an affiliated foreign corporation. The transfer occurred in the context of a reorganization. The tax treatment of TBL's...

Tax Court Petition Date Could Not Be Extended: September 20, 2023 - Bulletin Print Report; On May 23, 2022, the I.R.S. sent petitioners, by certified mail, a notice of deficiency for tax year 2019. The notice advised petitioners that they had 90 days from the date of...

Sourcing A Mutual Fund Service Provider's Receipts: September 20, 2023 - Bulletin Print Report; APP is an investment management company headquartered in Colorado. APP provides services to mutual funds. In accordance with Reg. Sec. 25137-14, APP assigned the gross receipts...

GPRE Takes A Page From MMP's "Rollup" Playbook: September 19, 2023 - Bulletin Print Report; Green Plains, Inc., ("GPRE"), owns an approximately49 percent limited partner interest and a two percent general partner interest in a publicly traded partnersh...

PENN Entertainment's Payments To ESPN Should All Be Tax-Deductible: September 19, 2023 - Bulletin Print Report; PENN Entertainment, Inc., ("PENN"), recently announced that it hadentered into an exclusive U.S. online sports bettingagreement, referred to as the "...

Husband And Wife Were Not "Living Apart": September 19, 2023 - Volume 17 Issue 179 Print Report; Throughout 1997, Petitioner, (P), was married to MC, although the couple was "emotionally estranged." Nevertheless, P and MC both resided in the same residence (the M...

Instructional Classes Are Not Subject To Sales Tax: September 19, 2023 - Bulletin Print Report; Applicant, ("APP"), is a bakery that makes various food items, including decorative cookies. On occasion, APP will host cookie decorating classes. These classes take...

The Postmark Determines The Timeliness Of A Refund Claim: September 19, 2023 - Bulletin Print Report; T alleges the following: "On April 15, 2022, I mailed my 2018 tax return for the year ending December 31, 2018 to the defendant by certified mail. I never received my refu...

Palmer Applies To Redemption/Sale Of "ROFR" Stock: September 18, 2023 - Volume 17 Issue 178 Print Report; X is a retired executive officer of C. X was a participant in C's executive stock purchase plan (the Plan). X has entered into 14 different stock restriction agreements in...

"ESBTs" Can Carry Over NOLs: September 18, 2023 - Bulletin Print Report; An 'S' corporation incurred a net operating loss, ("NOL"), that it passed through to its sole shareholder, an electing small business trust, ("ESBT"...

Capital Loss Induced Refund Request Was Timely Filed: September 18, 2023 - Bulletin Print Report; Taxpayer, ("TP"), is an out-of-state corporation. TP conducts business in Indiana. TP submitted an amended 2017 tax return calling for a refund of income tax. The Dep...

Section 404A Plans Are Not "Qualified Retirement Plans": September 18, 2023 - Bulletin Print Report; G filed for Chapter 7 bankruptcy on May 11, 2021. G claimed an exemption for the Fund. The Fund is a Registered Retirement Savings Plan, ("RRSP"), organized under Can...

Transfer Of Legal Title Not A "Disposition" Of Option Stock: September 15, 2023 - Volume 17 Issue 177 Print Report; Following the exercise by an employee of an Incentive Stock Option, (ISO), such employee may enter into a "street name arrangement" with a brokerage firm....

Post-Production Expenses Are Not A Factor In Valuation: September 15, 2023 - Bulletin Print Report; Antero Resources Corporation,("A"),asks us to return to the issues we considered in Steager v. Consol. Energy, Inc., 242 W.Va. 209 (201...

Target Granted An Extension To Make A "Safe Harbor" Election: September 15, 2023 - Bulletin Print Report; TP, a publicly held corporation, entered into a merger agreement dated Date 4. TP had no majority shareholder. TP was acquired in a reverse triangularmerger with Merger S...

"D&O" Insurance Proceeds Excluded From A REIT's Gross Income: September 15, 2023 - Bulletin Print Report; TP is a real estate investment trust, ("REIT"). P is a publicly traded REIT which owns an "a"% indirect interest in TP through OP. On Date 2, C and P entere...

TNET Raises The Possibility Of Constructive Dividends: September 14, 2023 - Bulletin Print Report; TriNet Group, Inc., ("TNET"), is engaging in a massive, nearly $1 billion, stock repurchase which has some unusual features, most notablyfrom a federal income t...

Informal Claims for Refund: September 14, 2023 - Volume 17 Issue 176 Print Report; During 2005, petitioners sold real property located in California that resulted in a capital gain of $425,330, while they were N.Y. residents. &...

"Development Rights" Are Real Property: September 14, 2023 - Bulletin Print Report; TP is a limited partnership. TP owns Property 1, located in City A, State Z, through one of its disregarded entities, DE 1. Property 1 has been held for productive use in a tra...

Failure To Provide Sufficient Notice Upends A Tax Sale: September 14, 2023 - Bulletin Print Report; W, a New Jersey resident,is the record owner of a residential property located in Pennsylvania. W owed delinquent taxes for tax year 2019. On June 26, 2021, the Bureau se...

Smurfit Kappa And WestRock Propose A Business Combination: September 13, 2023 - Bulletin Print Report; The boards of directors of paper manufacturersSmurfit Kappa Group plc, ("S"), and WestRock Company, ("W"), recently announced the signing of a definit...

Involuntary Conversion By Destruction And Condemnation: September 13, 2023 - Volume 17 Issue 175 Print Report; The taxpayer owned improved real estate that it used in its trade or business in City X. Dangerous chemicals were released in the city where the taxpayer's property was loc...

Threshold Rejection Of Whistleblower's Cannot Be Reviewed: September 13, 2023 - Bulletin Print Report; On February 25, 2020, petitioner, ("P"), filed with the WBO Form 211. P alleged that Targets had engaged in money laundering through real estate transactions. On June...

No Credit Permitted For Taxes Paid By Another Consumer: September 13, 2023 - Bulletin Print Report; In 2013, PCM contracted with the Daimler Group for the construction of a data center in New Albany, Ohio. In 2016, after construction was complete, the tax commissioner commenc...

A Merger In Which Each Constituent Serves As The "Acquirer": September 12, 2023 - Bulletin Print Report; Bank of California, Inc., ("BANC"), and PacWest Bancorp, ("PACW"), two West Coast stalwarts who have been punishedin the wake of the Silicon Valley Ba...

SJM's Stock Will Be Taxable To TWNK's Shareholders: September 12, 2023 - Bulletin Print Report; Hostess Brands, Inc., ("TWNK"), announced that it has entered into a definitive agreement with the JM Smucker Company, ("SJM"), in connection with which the...

Taxpayer Involuntarily Disposed Of Option Stock: September 12, 2023 - Volume 17 Issue 174 Print Report; In June 1973, X granted an option to purchase shares of its common stock to the taxpayer who was one of its employees. The option satisfied the qualified stock option requireme...

The "SCDF" Was Not A Component Of "Sales Price": September 12, 2023 - Bulletin Print Report; J sold NGL it produced from gas wells to EP under the terms of the Purchase Agreement. Gas from wells operating prior to June 1, 2012, was classified as "Base Production;&...

Tax Sale Found To Be Invalid: September 11, 2023 - Bulletin Print Report; On October 1, 2015, the County assessed the property in the name of "LW," the property's owner at that time. Three months later, LW conveyed the property to C, wh...

Accrual Delayed By A Condition Subsequent: September 11, 2023 - Volume 17 Issue 173 Print Report; TP is a multiple-employer VEBA formed by P Corporation, (P), in Year 1. T is a simple trust operating as a welfare benefit fund and was formed by P in Year 2....

Insurance Policy Covered Opioid Costs: September 11, 2023 - Bulletin Print Report; MD is a wholesale distributor of pharmaceutical drugs. C insured MD under a claims-made liability policy. The policy provides for reimbursement of defense costs and for liabili...

Non-Dealer Ineligible To Use The "Resale" Exception: September 11, 2023 - Bulletin Print Report; DK formed KC LLC to purchase, modify, and resell automobiles. DK obtained an investor, LH, to contribute to his business plan, and they began buying cars and titling them in Mo...

FASB Will Alter The Accounting For "Crypto" Assets: September 8, 2023 - Bulletin Print Report; The Financial Accounting Standards Board, ("FASB"), has reached final decisions on the controversial topic of accounting for so-called "crypto assets." It a...

DRE And Member Are Separate And Distinct Trades Or Businesses: September 8, 2023 - Volume 17 Issue 172 Print Report; LLC was previously a subsidiary of Company that converted, in Year A, to a limited liability company, whose sole member is Company. LLC has not made an election under Reg. Sec....

Exception of "No Cause Of Action" Denied: September 8, 2023 - Bulletin Print Report; The Department of Revenue, (the "Department"), claims that the Taxpayer, ("TP"), owes sales taxes on Hotel rooms and poolside cabanas furnished and rented t...

Excess Tax Sale Funds Are Personal Property: September 8, 2023 - Bulletin Print Report; On May 15, 2015, the City of Atlanta filed a demolition lien against a certain parcel of real property. The record shows that JL was the record owner of the property at the tim...

Bloomberg Article On Spin-Offs Does Not Make Any Sense: September 7, 2023 - Bulletin Print Report; We feel compelled to respond to a Bloomberg Intelligencer article in which the author speculates that the I.R.S. is preparing to "attack" and "retroactively tax&...

Dividends Indirectly Derived From Debt Financed Property Not UBTI: September 7, 2023 - Volume 17 Issue 171 Print Report; Y is a tax-exempt organization recognized under Sec. 501(c)(3) of the Code. Y intends to form a corporation in Foreign Country ("C") for the purpose of facilitating a...

Receipts From Wholesale Sales Included For "CAT" Purposes: September 7, 2023 - Bulletin Print Report; The typical transaction at issue in this case goes as follows. A customer approaches a dealer, (the "transferee dealer"), about purchasing a specific vehicle, for exa...

Intangible Assets Must Be Removed From The Taxable Value Of Realty: September 7, 2023 - Bulletin Print Report; The Westin St. Francis, ("WSF") is the third largest hotel in San Francisco. The hotel consists of two buildings on two lots. C operates the hotel pursuant to a manag...

"Operational Term Payments" Were Qualifying REIT Income: September 7, 2023 - Bulletin Print Report; TP, a real estate investment trust, ("REIT"), owns or controls timberlands. TP has entered into an agreement, (the "Agreement"), with SU under which SU pays...

TransAlta's Stock Appears To Be Taxable To U.S. Holders: September 6, 2023 - Bulletin Print Report; TransAlta Corporation, ("TAC"), owns approximately sixty percent of the outstanding stock of TransAlta Renewables, Inc., ("RNW"). Each of TAC and RNWi...

ICE And BKI Finally Close Their Deal: September 6, 2023 - Bulletin Print Report; It has taken quite a while but, finally, Intercontinental Exchange, Inc., ("ICE"), was grantedpermissionto complete its acquisition of Black Knight, Inc.,...

Reciprocal Options Do Not Cause A Present Sale: September 6, 2023 - Volume 17 Issue 170 Print Report; X is an 'S' corporation. X and A propose to enter into an agreement that provides options to both parties that, at a future date, may result in the transfer of ownershi...

REGN's CVRs Helped To Land DBTX: September 6, 2023 - Bulletin Print Report; The use of contractual contingent value rights, ("CVRs"), to bridge valuation gaps has become almost standard operating procedure in the world of health care acquisit...

Animal Vaccines Are Exempt "Drugs": September 5, 2023 - Bulletin Print Report; This letter is in reply to your request on behalf of the Taxpayer regarding the Virginia retail sales and use tax application to certain animal vaccines. The Taxpayer requests...

FASB Seeks To Impose "Robust" Income Tax Disclosure Requirements: September 5, 2023 - Bulletin Print Report; It is virtually impossible, under the current state of income tax reporting, to determine the amount of income taxes a company actually pays during a given taxable year with re...

"Regulated Public Utility Exception" Did Not Apply: September 5, 2023 - Volume 17 Issue 169 Print Report; H and W and their three grandchildren owned all the stock in S, an 'S' corporation. For 1977 and years prior, S owned a 19.59652 percent working interest in an oil prod...

Loan Participations Were Not "Securities": September 5, 2023 - Bulletin Print Report; M was a drug testing company. In March 2012, defendants executed a credit agreement (the "2012 Credit Agreement") providing M with a term loan and revolving loan. &qu...

UBS Made A "Bargain Purchase": September 1, 2023 - Bulletin Print Report; It has now been several months since the closing of the historic acquisition by UBS Group AG of troubledCredit Suisse AG. Upon the closing of the transaction, each outsta...

"Additional Consideration" Spoils A 'B' Reorganization: September 1, 2023 - Volume 17 Issue 168 Print Report; A was the sole shareholder of Y, and was the guarantor on an unsecured note of Y in the principal amount of $200x issued to Z, an unrelated party, in exchange for a loan....

Amended Return Constituted A Claim For Refund: September 1, 2023 - Bulletin Print Report; Petitioner's representative, C, filed petitioner's Original 2017 Louisiana Individual Income Tax Return, (the "OR"), on June 19, 2020. The OR showed a balance...

Retirement Income Not Exempt From State Income Tax: September 1, 2023 - Bulletin Print Report; Taxpayer, ("TP"), argues that the income for the tax years at issue is from a "retirement system for retirees of the United States Government." It is undisp...

"COI" and "COBE" Found To Exist: August 31, 2023 - Volume 17 Issue 167 Print Report; T is a holding company which, through its subsidiaries, is engaged in Business P and in Business D. T has three classes of stock outstanding: Class A voting common stock owned...

Taxpayer Properly Fell Within The "Amusement" Classification: August 31, 2023 - Bulletin Print Report; Petitioner is a limited liability company that runs a jeep tour business. Petitioner's jeep tour business operates by taking customers on jeep tours in the desert surroundi...

On-Demand Air Carrier Not Eligible For Sales Tax Exemption: August 31, 2023 - Bulletin Print Report; TP is an air carrier authorized by the Federal Aviation Administration, ("FAA"),to operate...in Virginia. As a result of an audit by the Department, TP was asse...

Issuance Of Check "Moots" Refund Lawsuit: August 31, 2023 - Bulletin Print Report; J produces Tezos tokens, a form of cryptocurrency, through a process known as "staking." As J sees it, he owes taxes on the tokens only when he sells or transfers the...

Calculating A Creditor's Holding Period In Repossessed Property: August 30, 2023 - Volume 17 Issue 166 Print Report; A small group of investors, termed the LO, has leased a parcel of land to corporate taxpayer, the LE. The LO is entitled, upon the LE's default, to repossess the land and t...

Service Charges Includible In Retailer's Gross Receipts: August 30, 2023 - Bulletin Print Report; APP is engaged in the business of providing election services and/or products, including ballot administration. APP's customers contract with APP to administer elections an...

Use Restrictions Are Not Real Or Tangible Personal Property: August 30, 2023 - Bulletin Print Report; The subject property is comprised of a use restriction, a right of first refusal, and a reservation of mineral rights related to real property. C conveyed title of the land and...

Credit For Taxes Paid To California Denied: August 30, 2023 - Bulletin Print Report; The issue is whether TPs are entitled to a credit against their New Mexico taxes for taxes paid to California. TPs have income from numerous sources. TPs have rental properties...

KIM Agrees To Annex RPT: August 29, 2023 - Bulletin Print Report; Kimco Realty Corporation, ("KIM"), and RPT Realty, ("RPT"), are each real estate investment trusts, ("REITs"), for federal income tax purposes and...

Notice Of Deficiency Was Timely Issued To Joint Filers: August 29, 2023 - Bulletin Print Report; All of the Ss'tax returns from 1999 through 2003, and from 2005 through 2014, were filed as joint returns. The tax return at issue in this case is the Ss' 2004 ta...

Marketplace Facilitator Need Not Collect And Remit Use Tax: August 29, 2023 - Bulletin Print Report; Applicant, ("APP"),is a California based section 501(c)(3) non-profit organization and marketplace facilitator. APP provides a marketplace platform exclusively...

"Mind Body" Classes Subject To NYC Sales Tax: August 29, 2023 - Volume 17 Issue 165 Print Report; Petitioner, (P), operates several facilities in New York City (NYC). These facilities provide instruction in yoga as well as a variety of classes that are included as part of a...

Cook County's Lost Tax Revenues Cannot Be Recouped: August 28, 2023 - Bulletin Print Report; Cook County, ("CC"), contends that a number of banks operating in northern Illinois made credit too readily available to some borrowers, who defaulted, and then forec...

Where The "Historical" Shareholder Dissolves: August 28, 2023 - Volume 17 Issue 164 Print Report; P owned all of the stock of S for over five years during which time P has been engaged in the manufacture and sale of wire products and S has also been engaged in the active co...

Member Must Report Disregarded Entity's COD Income: August 28, 2023 - Bulletin Print Report; P was the sole member of S, a single member limited liability company. S ceased to exist in approximately May 2008. It was a disregarded entity, ("DRE"), for federal...

A State May Tax All Income Of Its Residents: August 28, 2023 - Bulletin Print Report; Taxpayers, husband and wife, filed Virginia resident tax returns for the 2018 through 2020 taxable years, claiming subtractions for distributions taken from retirement accounts...

Section 355(a) Is Not Elective: August 25, 2023 - Bulletin Print Report; Section 355(a) of the Internal Revenue Code Code provides, in pertinent part, that "If a corporation...distributes to a shareholder, with respect to its stock...solely sto...

Receiving Stock Of A Successor To The Issuer Of "CVRs": August 25, 2023 - Volume 17 Issue 163 Print Report; FA, an FC corporation, uses the accrual method of accounting. FA wished to acquire T, the domestic common parent of a consolidated group of corporations using the accrual metho...

Property Used In A Production Activity Is Exempt From Sales & Use Tax: August 25, 2023 - Bulletin Print Report; The Court of Special Appeals ruled that Potomac Edison Co., ("PE"), processing activities were performed within the statutory definition of "production activity....

Debtor's Tax Refund "Attributed To" Refundable Credits: August 25, 2023 - Bulletin Print Report; Debtor filed his Chapter 7 bankruptcy petition on September 28, 2021. A tax refund comes from tax "payments," including refundable credits and other payments such as...

FASB Standardizes Accounting For Joint Venture Formations: August 24, 2023 - Bulletin Print Report; Accounting Standards Update, ("ASU"), 2023-25, "Business Combinations--Joint Venture Formations" (Subtopic 805-60) Recognition and Initial Measurement, fill...

The Deal Survey August 2023: August 24, 2023 - The Deal Survey: August 2023 Print Report; Welcome to this month's summary of deals. Full reports on some of these transactions can be found via the link in the description, or by searching the company name in our database.

PR And ESTE To Engage In A "Two-Party" 'A' Reorganization: August 24, 2023 - Bulletin Print Report; Permian Resources Corporation, ("PR"), and Earthstone Energy, Inc., ("ESTE"), announced that they have entered into a definitive agreement under which PR wi...

First Prong Of "All Events" Test Not Satisfied: August 24, 2023 - Volume 17 Issue 162 Print Report; GE owns supermarkets and pharmacies under the name "GE" and gas stations and convenience stores under the names "GG" and "GEE." During the years a...

FBAR Conviction Upheld On Appeal: August 24, 2023 - Bulletin Print Report; The Bank Secrecy Act requires many citizens and residents to report financial relationships and transactions with foreign banks. See 31 U.S.C. section 5314(a).Citizens an...

Taxes For Late Filed Returns Are Not Dischargeable: August 23, 2023 - Bulletin Print Report; On August 12, 2020, the Court confirmed the Debtor's plan...which she successfully completed, and on March 31, 2023, the Court entered an order granting the Debtor a discha...

When Is Deferred Compensation A "Payroll Expense?": August 23, 2023 - Volume 17 Issue 161 Print Report; Petitioner, ("P"), inquires whether nonqualified deferred compensation earnings are considered taxable for purposes of the Metropolitan Commuter Transportation Mobili...

Tax Court Unable To Order Refund Of Overpayment: August 23, 2023 - Bulletin Print Report; Petitioner did not timely file a Federal income tax return for 2015. The I.R.S. prepared a substitute for return, ("SFR"), and, on April 5, 2021, issued petitioner a...

Trust Entitled To A Section 642(c)(1) Deduction: August 23, 2023 - Bulletin Print Report; Decedent created Trust on Date 1 and died on Date 2. Decedent owned an individual retirement account, ("IRA"), at the time of his death, which named Trust as the sole...

JNJ Announces Results of KVUE Exchange Offer: August 22, 2023 - Bulletin Print Report; Johnson & Johnson, ("JNJ"), is now poised to complete the "split-off" of its subsidiary, Kenvue, Inc., ("KVUE"). The exchange offer though whi...

Leased Apartments Not "Taxable Premises": August 22, 2023 - Volume 17 Issue 160 Print Report; Petitioner, (P), which owns retail stores throughout the world, maintains its principal offices in New York City. It is necessary for it to call to this City, from time to time...

Student Loan Discharged In Bankruptcy: August 22, 2023 - Bulletin Print Report; In 2010 and 2011, A obtained two loans from Bank of North Dakota, ("BND"),to attend GU. A graduated with an associate degree of applied medical science in Decem...

Informal Claim For Refund Insufficient To Waive Sovereign Immunity: August 22, 2023 - Bulletin Print Report; JP created the Trust on February 26, 2002, and subsequently conveyed his home, (the "Property"), to the Trust for a term of five years. P, the son of JP, was the sole...

Disregarding Transitory Steps: August 21, 2023 - Volume 17 Issue 159 Print Report; X, a State C banking corporation, has outstanding 2,000x shares of common stock which were publicly-held. X has decided that its stock should be owned directly by a c...

Transferred Property Included In Gross Estate: August 21, 2023 - Bulletin Print Report; Decedent died on August 30, 2014. SW, Decedent's daughter, was appointed the personal representative of Decedent's estate on September 25, 2014.A Maryland estate...

COD Income Or Gain?: August 21, 2023 - Bulletin Print Report; In 2012, E was an 'S' corporation. P was the 100 percent shareholder of E. E was the sole member of the PLF entities, treated as disregarded entities. The PLF entities...

The "California Method" Strikes Again: August 21, 2023 - Bulletin Print Report; The Franchise Tax Board, ("FTB"), accepted APPs' assertion that they were part-year residents of California during the 2018 taxable year. Part-year residents are...

DINO Agrees To "Roll Up" HEP: August 18, 2023 - Bulletin Print Report; HF Sinclair Corporation, ("DINO") owns a 47 percent limited partner interest in Holly Energy Partners, L.P., ("HEP").and a non-economic general partne...

ET And CEQP To Engage In An "Assets-Over" Merger: August 18, 2023 - Bulletin Print Report; Energy Transfer L.P. ("ET"), and Crestwood Equity Partners L.P., ("CEQP"), each a publicly traded partnership, announced that the parties have entered into...

Effects Of Liquidating An "Insolvent" Subsidiary: August 18, 2023 - Volume 17 Issue 158 Print Report; P is a State X corporation the stock of which is widely held and publicly traded. FS is a Country Y corporation which was formerly engaged in retailing consumer electronic merc...

The Section 4980H Exaction Is A "Tax": August 18, 2023 - Bulletin Print Report; The Affordable Care Act, ("ACA"), contains both an individual mandate and an employer mandate. The employer mandate requires "large employers" to give full...

Exercising Stock Option With Previously Acquired Stock: August 17, 2023 - Volume 17 Issue 157 Print Report; A corporation has both a qualified stock option plan and a nonqualified stock option plan. An employee who exercises an option granted under the nonqualified plan may pay for t...

Taxpayer Permitted To Contest Revocation Of Homestead Exemption: August 17, 2023 - Bulletin Print Report; In 2003, H purchased a home, (the "subject property"). In 2007, he applied for, and received, a homestead exemption on the subject property. Generally, an application...

Tax Credit Denied For Lack Of "Notice" And "Registration": August 17, 2023 - Bulletin Print Report; Taxpayers, ("TPs"), claimed an overpayment for the 2013 Tax Period, in part based on their claim for the Motion Picture Investment Tax Credit, ("MPITC"). Th...

Baseball Team's Promotional Items Not Eligible For Resale Exemption: August 17, 2023 - Bulletin Print Report; P was a professional baseball team. The team's stadium is owned by City, and P rents the property from City. Texas imposes a tax upon each sale of a taxable item in this st...

FIS's Tax Problem Will Be Mitigated By "Leveraged Partnership" Technique: August 16, 2023 - Bulletin Print Report; In 2019, to much fanfare, Fidelity National Information Services, Inc., ("FIS"), acquired all of the outstanding stock of Worldpay, Inc., ("WP"). The acquis...

Luxury Box Not Used For Commercial Activity: August 16, 2023 - Volume 17 Issue 156 Print Report; Petitioner, (P), is a national accounting firm with offices in New York City. From 1974-1985, P was a party to a series of three-year agreements with the operator of Madison Sq...

Holding Company Properly Excluded From New York Combined Return: August 16, 2023 - Bulletin Print Report; LL is a publicly traded Australian corporation that conducts business operations in numerous countries. LLAH, a Delaware corporation, wholly owns a group of subsidiaries (colle...

Sales Factor Properly Used To Apportion "Tax Base": August 16, 2023 - Bulletin Print Report; The MBTAimposed "a business income tax on every taxpayer with business activity within this state..." For companies operating in multiple jurisdictions, the MBT...

CLF And X: Forward Or Reverse Merger Proposed?: August 15, 2023 - Bulletin Print Report; Cleveland-Cliffs, Inc., ("CLF"),decided to go public with an offer it previously made exclusively to the Board of Directors of the United States Steel Corporati...

Novartis Breathes Life Into The "Open Transaction" Doctrine: August 15, 2023 - Bulletin Print Report; Companies with products and/or processes that are still in the developmental stage, and have not yet attainedcommercial viability, are notoriously difficult to value. Whe...

Recalculating Gross Profit From An Installment Sale: August 15, 2023 - Volume 17 Issue 155 Print Report; In 1969, a taxpayer sold shares of stock having an adjusted basis of $40,000 for $100,000 and elected to report his gross profit of $60,000 from the sale on the installment met...

Fracking Equipment Exempt From Sales Tax: August 15, 2023 - Bulletin Print Report; S is in the fracking business. Fracking is a process that entails pumping a pressurized mixture of...into the earth to fracture...rock formations and extract oil and gas. At is...

Rescinded Sale Does Not Interrupt Holding Period: August 14, 2023 - Volume 17 Issue 154 Print Report; Trust X (TX) acquired Farm Y (FY) on December 31, 1951. On September 9, 1974, TX sold FY to T, the trustee of TX, for a total sales price that was less than the appraised value...

Tax Court Had Jurisdiction To Review "WB's" Action: August 14, 2023 - Bulletin Print Report; Section 7623 provides for awards to individuals who supply information to the Government about third parties who have underpaid their taxes or otherwise violated the internal r...

Operated Rentals Are Subject To Sales Tax: August 14, 2023 - Bulletin Print Report; TP rents audio equipment to customers for use in concerts, festivals, meetings, and other events. TP's rentals can be categorized into two general groups: rentals of bare e...

A "Refinancing" Does Not Require The Same Borrowers: August 14, 2023 - Bulletin Print Report; An individual acquired four condominium units...by four separate deeds. Each unit was encumbered by a different deed of trust with different lenders. The four units were transf...

AVID Is A "Loss Corporation": August 11, 2023 - Bulletin Print Report; Avid Technology, Inc., ("AVID"), is the subject of a leveraged buy-out, ("LBO"). It recently announced that it has entered into a definitive agreement to be...

Alaska Taxes Some Dividends Received By Foreign Corporations: August 11, 2023 - Volume 17 Issue 153 Print Report; Schlumberger Limited (SL) is incorporated in the Netherlands Antilles. Its only service is the management of its subsidiaries; it receives fees for this service. It also receiv...

Who Bears The Burden Of Estate Tax On Non-Probate Property?: August 11, 2023 - Bulletin Print Report; On March 12, 2018, B signed his last will and testament, (the "Will"). In his Will, B appointed S as executor of his estate. The Will bequeathed $100,000 to S. It pro...

Change Of Domicile Is "Part Of A Process": August 11, 2023 - Bulletin Print Report; The Department of Revenue, (the "Department"), concluded that TP was taxable as a domiciliary resident of Virginia. TP appeals, contending she was a resident of State...

Asset Sale Did Not Accelerate Deferred Compensation Deductions: August 10, 2023 - Bulletin Print Report; H is a limited partnership formed in 2000 to acquire an N.B.A. franchise, the Vancouver Grizzlies, which later became the Memphis Grizzlies. In October 2012, H sold the Grizzli...

Museum's Gift Shop Sales Do Not Generate UBTI: August 10, 2023 - Volume 17 Issue 152 Print Report; Y is exempt from tax under Sec. 501(c)(3) of the Code. Y's purposes include operation of a museum and research center that provides a location to receive and display materi...

The "SRP" Is Found To Be A "Tax Measured By Income": August 10, 2023 - Bulletin Print Report; From 2014 to 2018, the Affordable Care Act's "individual mandate" instructed most Americans to purchase health insurance. See section 5000A(a). Abstainers paid a...

Resort Considered Commercial Property: August 10, 2023 - Bulletin Print Report; The "Resort" is comprised of 109 condominium units that contain 5,688 timeshare fractional interests under the Tennessee Timeshare Act. Timeshare fractional interests...

DISH And SATS Will Become One: August 9, 2023 - Bulletin Print Report; The Ergen family has long enjoyed a controlling interest in each of DISH Network Corporation, ("DISH"), and EchoStar Corporation, ("SATS"). Approximately fo...

Trailers Not Eligible For Sales Tax Exemption: August 9, 2023 - Bulletin Print Report; B sold "trailer type vehicles" to non-Wisconsin residents, who did not use the trailers in Wisconsin. Each of the trailers was designed to be used in conjunction with...

Lack Of Employees Does Not Preclude Finding Of Active Business: August 9, 2023 - Volume 17 Issue 151 Print Report; D is an 'S' corporation. A and B each directly own "a%" of the equity ownership interests of D. The remaining "b%" of the equity ownership interests...

Refunds Belong To Working Spouse: August 9, 2023 - Bulletin Print Report; The debtor and his wife filed a joint tax return for 2022. On February 2, 2023, the debtor filed his Chapter 7 bankruptcy petition. He is the primary wage earner for the family...

Purging Sec. 306 Stock: August 8, 2023 - Volume 17 Issue 150 Print Report; X corporation (X) has outstanding Class A nonvoting common stock, Class B voting common stock, and nonvoting preferred stock. The preferred stock was limited and preferred as t...

Termination Of Insurance Policy Gave Rise To Income: August 8, 2023 - Bulletin Print Report; P resided at his home, (the "SMP"), through February 16, 2017. The SMP was left vacant until September 15, 2017. As of that date through the end of 2017, P rented the...

Resale Exception To Use Tax Not Available: August 8, 2023 - Bulletin Print Report; K was a part owner of SP, which enhanced high-performance cars and made them faster. K started a new side business that would purchase, modify, and resell automobiles. He forme...

Hot Tub/Spa Not Exempt From Gross Retail Tax: August 8, 2023 - Bulletin Print Report; Taxpayer protests the Indiana Department of Revenue's (the "Department") denial of his claim for refund of the sales tax paid on the purchase of a spa. The taxpay...

Patent Infringement Suit Legal Expenses Are Deductible: August 7, 2023 - Bulletin Print Report; The Hatch-Waxman Act, ("HWA"), established an expedited process for obtaining FDA approval to sell generic drugs. Generic manufacturers could now file an Abbreviated...

Sales Tax Was Not Overpaid: August 7, 2023 - Bulletin Print Report; Taxpayer, ("TP"), is an individual who purchased a vehicle in Indiana and paid sales tax at the time of purchase. TP'svehicle was transported to his home st...

Foreign Corporation Not Included In Kentucky Consolidated Return: August 7, 2023 - Volume 17 Issue 149 Print Report; AT&T (T) is organized under the laws of New York and has hundreds of subsidiaries across the nation. Approximately 20 were located in Kentucky (KY). The subsidiaries not lo...

Horse Farm Activity Fell Short Of A Trade Or Business: August 7, 2023 - Bulletin Print Report; The issue in this appeal involves the Department's disallowance of expenses for a horse farm that Taxpayers claimed on their Schedules F. The Department contends that the h...

Refund Of Sales Tax Denied Art Dealer: August 4, 2023 - Volume 17 Issue 148 Print Report; Petitioner, (P), is art gallery located in New York City. On or about September 9, 2003, P acquired what was purported to be a Max Ernst painting (the Painting) from GDM for th...

Basis Adjustment Attributable To "Bonus Depreciation" Was Permitted: August 4, 2023 - Bulletin Print Report; H was a partner in a partnership that placed equipment in service in 2009. Fixed date conformity, ("FDC"), additions and subtractions for bonus depreciation were clai...

Health Care Services Were "Sitused" To Ohio: August 4, 2023 - Bulletin Print Report; TRC'sprimary service is dialysis treatment and education. TRC asserted that laboratory testing services and healthcare provider services were performed out of state,...

I.R.S. Identifies "MISTs" As A "Listed Transaction": August 4, 2023 - Bulletin Print Report; It will come as no surprise that gross income includes, among many other things,"gains from dealings in property." See section 61(a)(3) of the Code. In general,...

Senior Living Facilities Are Health Care Properties: August 3, 2023 - Volume 17 Issue 147 Print Report; TP elected to be taxed as a REIT. TP is in the business of owning and leasing senior housing and healthcare related real estate. In Year 2, TP acquired an ownership interest in...

No Assessable Leasehold Interest Was Found: August 3, 2023 - Bulletin Print Report; The subject parcel is a leasehold interest in a public parking garage which was constructed in 2016. Respondent valued the leasehold interest at $6,896,400. Respondent issued a...

CSC's Capital Loss Is Being Questioned By The I.R.S.: August 3, 2023 - Bulletin Print Report; CSC was the U.S. parent of a group of corporations that joined in the filing of a consolidated Federal income tax return. In July 2007, CSC acquired all of the stock of COV. As...

Challenge To Amended Section 6050I Is Premature: August 3, 2023 - Bulletin Print Report; Plaintiffs, ("Ps"), are regular users of crypto currency. Ps seek declaratory relief against the enforcement of section 6050I. In 2021, the Infrastructure Investment...

NEWR Will Engage In A "Parent-Subsidiary" LBO: August 2, 2023 - Bulletin Print Report; On July 31, 2023, New Relic, Inc., ("NEWR"), announced it had entered into an Agreement and Plan of Merger with Crewline Buyer, Inc., ("Parent"), and Crewli...

Sports Clubs Not Part Of Lodging Facilities: August 2, 2023 - Volume 17 Issue 146 Print Report; TP intends to elect to be taxed as a REIT. TP was formed to acquire a portfolio of hotels. TP's acquisition of the hotels will be effectuated by a contribution of the prope...

Transfer Of Ownership Found To Have Occurred: August 2, 2023 - Bulletin Print Report; In 2007, the parents formed P, a limited liability company. P's assets include two residential rental properties. In 2014, the parents assigned 100 percent of their interes...

Sales Tax Paid Twice On The Same Purchase: August 2, 2023 - Bulletin Print Report; TP is an Arkansas, ("AK"), resident who chose to purchase a car from an Indiana dealership. The dealership charged TP Indiana sales tax at TP's home state's r...

Warrants Are Securities Which Have No Principal Amount: August 1, 2023 - Bulletin Print Report; Historically, stock purchase warrants were neither "stock" nor "securities" for tax purposes. Thus, when warrants were received in a non-recognition transac...

Condominium Units To Be Combined Taxed At Lower Rate: August 1, 2023 - Volume 17 Issue 145 Print Report; Petitioners have entered into a Purchase Agreement (the Agreement) for the purchase of three adjacent condominium units (the Property) which they intend to combine into a singl...

A Tax Sale Is Not A "Judicial" Sale: August 1, 2023 - Bulletin Print Report; The United Department of Housing and Urban Development has two deeds of trust on a Missouri home. They were security for home-equity loans taken out by a couple that previously...

The Processing And Storage Of Wine Is "Agriculture": August 1, 2023 - Bulletin Print Report; APP owns a stretch of land in TC. The majority of the property comprises 63 acres. This parcel is made up entirely of vineyards. In 2018, the TC Auditor created two new parcels...

OID Accruals Were Investment Interest: July 31, 2023 - Bulletin Print Report; Petitioner, ("P"), is an attorney. He has been involved in real estate activities for many years. IM is a limited partnership of which P was a member. XWD is a single...

Section 6213(a)'s Deadline Is Not Jurisdictional: July 31, 2023 - Bulletin Print Report; In 2015, I and D each received $8,826.30 to settle a lawsuit. The I.R.S. mailed a notice of deficiency. The I.R.S. levied on their property. The Cs filed a petition in the Tax...

Bank Can Deduct Discount On Mortgage Prepayment: July 31, 2023 - Volume 17 Issue 144 Print Report; The taxpayer is a domestic savings and loan association. With interest rates higher in the 1980s as compared to earlier years, the taxpayer offered discounts on an individual b...

Louisiana Basis And Federal Basis Diverge: July 31, 2023 - Bulletin Print Report; Ps arethe sole shareholders of BJF, (the "Corporation"). The Corporation is an 'S' corporation. For the 2019 tax year, the Corporation sold a commercial...

"Unclean Hands" Doctrine Was Not Applicable: July 28, 2023 - Bulletin Print Report; With respect to P's Federal income tax for 2013 and 2017, the I.R.S. determined deficiencies...plus accuracy related penalties. The deficiencies are attributable to short-...

Musician Subject To New York State MCTMT: July 28, 2023 - Volume 17 Issue 143 Print Report; Petitioner, (P), is a nonresident musician who has been touring and making albums for many years. He currently performs several times a year in the metropolitan commuter transp...

Transfer Of Ground Lease Subject To D.C. Tax: July 28, 2023 - Bulletin Print Report; The Archbishop of Washington is the owner of land at 1717 Rhode Island Avenue, N.W. In 2002, the Archbishop and M entered into an agreement for the lease of the land to M until...

"Lev Par" Is An Antidote For A Low Basis: July 28, 2023 - Bulletin Print Report; Fidelity National Information Services, Inc., ("FIS"), in 2019, acquired Worldpay, Inc., ("W"), in a cash and stock deal for well north of $30 billion. The...

Is Goodwill a Capital Asset?: July 27, 2023 - Volume 17 Issue 142 Print Report; During Year 1 through Year 2, TP, a C corporation, operated a "b" business consisting of three separate divisions: X, Y, and Z....

Sovereign Immunity Waiver Was Not "Unequivocally Expressed": July 27, 2023 - Bulletin Print Report; The I.R.S. concluded that WA owed a tax deficiency and it undertook efforts to collect that amount. WI was involved in that effort. WA learned that the I.R.S. had levied and ga...

The Theft Loss Deduction Has Been Suspended: July 27, 2023 - Bulletin Print Report; In December 2010, plaintiffs became the owners and operators of FP. FP, operating online, sold raw pet food. In October 2014, G moved the business to Florida, registering the b...

PACW Will Be The "Accounting Acquirer": July 26, 2023 - Bulletin Print Report; Bank of California, Inc., ("BANC"), and PacWest Bancorp, ("PACW"), have announced the signing of a definitive merger agreement pursuant to which the compani...

Registering Shares With The S.E.C.: July 26, 2023 - Volume 17 Issue 141 Print Report; Pursuant to a plan of reorganization which qualified under Sec. 368(a)(1) of the Internal Revenue Code, the acquiring corporation paid all of the costs necessary to register wi...

"Futility Exception" Obviates Need For Administrative Review Of Claim: July 26, 2023 - Bulletin Print Report; G.L. 1956 section 31-36-7 requires that: "Every distributor shall...render a report...of the amount...of fuels purchased, sold, or used by the distributor within this stat...

Airport Property Exempt From Taxation: July 26, 2023 - Bulletin Print Report; AA applied for a tax exemption for fifteendifferent properties that it owns and leases to private entities. The properties are located within airports in HC. The lessees...

No Retail Transaction Found: July 26, 2023 - Bulletin Print Report; TP is an Indiana resident. TP purchased a vehicle in 2017 in Illinois, listing both himself and his corporation as co-owners. TP later sold his company and k...

JNJ Chooses A Split-Off Of KVUE: July 25, 2023 - Bulletin Print Report; Johnson & Johnson, ("JNJ"), currently owns 1,716,160,000 shares of Kenvue, Inc., ("KVUE"), or approximately 89.6 percent of KVUE's issued and outsta...

Disposition Of Note With Unstated Interest: July 25, 2023 - Volume 17 Issue 140 Print Report; In January 1970, X issued 1,000 shares of its common stock in exchange for all of the stock of Y. On September 1, 1972, X sold its stock in Y to M for a noninterest bearing not...

Only Temporary Housing Is Exempt From Taxation: July 25, 2023 - Bulletin Print Report; CC is non-stock corporation established in 1984. CC is recognized as a charitable organization under section 501(c)(3) of the Code. CC is licensed by DDS to operate "CLA&q...

Tesla Buyer Not Entitled To A Trade-In Credit: July 25, 2023 - Bulletin Print Report; JM wanted to purchase a 2022 TeslaModel Y. He owned a 2015 Buick Enclave and intended to use that vehicle as a trade-in when buying the Tesla. But there were no Tesla dea...

New Jersey Has Retaliated Against Its Neighboring States: July 24, 2023 - Bulletin Print Report; As threatened, the great state of New Jersey has taken action to "level the playing field," from a tax point of view, with several of its neighboring states, most not...

No Credit For Tax Imposed On 'S' Corporation Income Allocated To N.J.: July 24, 2023 - Volume 17 Issue 139 Print Report; Plaintiff, (P), is the sole shareholder of C, a New Jersey corporation. C has elected to be taxed as an 'S' corporation. For 2009, C filed a New York State 'S'...

Related Party Advances Found To Be Equity: July 24, 2023 - Bulletin Print Report; AL coordinated lot sales for six bonded real estate developments, ("2009 development projects"): (1) SD, being developed by RI, (2) CBD, being developed by RRDN...

Taxpayer Who "Paid The Tax" Is Entitled To A Refund: July 24, 2023 - Bulletin Print Report; C is an Indiana car dealership whose customers include Kentucky residents. C collected Kentucky's "MVUT" for its Kentucky customers and deposited the funds into i...

Sec. 267(b)(4) Should Not Be Read Literally: July 21, 2023 - Volume 17 Issue 138 Print Report; Y owns all of the stock of C. A is Y's son-in-law. A is active in the management of C and is also the trustee of several trusts created by Y for the benefit of A's chil...

In-State Activity Exceeded P.L. 86-272 Protection: July 21, 2023 - Bulletin Print Report; U is an 'S' corporation with its headquarters in Wisconsin. U is a web-based distributor of industrial and packaging products. U shipped most inventory items from its d...

Non-Resident's Income Taxed In California: July 21, 2023 - Bulletin Print Report; APPs timely filed a Form 540 California Resident Income Tax Returnfor the 2017 tax year, reporting a California adjustment for Nevada wage income earned by AH in 2017. FT...

Frivolous Return Penalty Is Constitutional: July 21, 2023 - Bulletin Print Report; Minnesota, ("M"), law imposes an income tax on the taxable income of both residents and non-residents. Non-resident individuals and shareholders are required to file...

The Willens Deal Survey July 2023: July 20, 2023 - The Deal Survey: July 2023 Print Report; Welcome to this month's summary of deals. Full reports on some of these transactions can be found via the link in the description, or by searching the company name in our database.

Withholding Agent Cannot Rely On Incorrect Exemption Form: July 20, 2023 - Volume 17 Issue 137 Print Report; The withholding agent (WA) filed Forms 1042-S with the Service showing a claimed exemption from withholding on payments of "effectively connected income." During an e...

Uncashed Checks Included In Gross Estate: July 20, 2023 - Bulletin Print Report; In 2007, D signed a power of attorney agreement appointing his son, DO, as his agent. DO made annual monetary gifts to family members from 2007 to 2014. On September 6, 2015, D...

The Tax Injunction Act Robbed A Federal Court Of Jurisdiction: July 20, 2023 - Bulletin Print Report; H is an Arizona company that sells products online throughout the country. It argues that Louisiana's parish-by-parish sales-and-use tax system is so costly to navigate tha...

Payments That Benefit Shareholders Not Considered Dividends: July 19, 2023 - Volume 17 Issue 136 Print Report; Approximately 1/3 of C's shareholders own less than 100 shares of C's common stock. More than 1/2 of these shareholders own less than 26 shares. C incurs substantial ex...

The Braves Are On Their Own: July 19, 2023 - Bulletin Print Report; On July 18, 2023, Liberty Media Corporation effected a distribution of its stock in Atlanta Braves Holdings, Inc. to the holders of certain classes of its tracking stock. The v...

Reacquisition Of Vehicle Subjected To Use Tax: July 19, 2023 - Bulletin Print Report; TP, as part of a new job, sold her vehicle to her new employer. After a week or so of working at the employer, TP decided she would return to her old job and left the new emplo...

Cutting Is Not "Fabrication": July 19, 2023 - Bulletin Print Report; APP is a steel and aluminum distributor. APP purchases its aluminum and steel from various vendors for resale. On occasion, a customer may request "further work" from...

No Double Credit For The Same Investment: July 18, 2023 - Bulletin Print Report; B is an insurance company. B is in the business of issuing accident and health insurance plans. B is subject to a "Premium Tax," as well as corporate income tax on it...

Fair Cash Value Was Not Less Than Assessed Value Of Dwelling: July 18, 2023 - Bulletin Print Report; On January 1, 2019, and January 1, 2020, APP was the assessed co-owner of a condominium unit, (the "subject unit"). The subject unit is a two-story unit with an ocean...

"Arrowsmith" Required Capital Loss Treatment For Settlement Payment: July 18, 2023 - Volume 17 Issue 135 Print Report; In 1961, the taxpayer sold his interest in two oil and gas leases and reported a long-term capital gain of $190,000 from the sale. In 1962, it was determined that the wells on...

Corporation Allowed A Gross Receipts Tax Deduction: July 17, 2023 - Bulletin Print Report; R had commercial contracts with the VA and IHS. Under these contracts, R's nurse employees would provide health care services for the VA and IHS. The Department assessed R...

CEO Maintained A Permanent Place Of Abode In New York City: July 17, 2023 - Bulletin Print Report; The Division conducted a residency audit of petitioner for the tax year 2017. The sole issue is whether petitioner, who admittedly spent more than 183 days within New York City...

Securing A Dependency Exemption For A Non-Relative: July 17, 2023 - Volume 17 Issue 134 Print Report; Petitioner, (P), and his wife were married in September 2009. At that time, P's wife moved out of her mother's home and into P's apartment. At the time P's wife...

Vessel Found Subject To California Use Tax: July 17, 2023 - Bulletin Print Report; On January 14, 2014, in Oregon, APP purchased a sailing yacht, (the "Vessel"), for $65,000.00. APP did not remit any sales or use tax to the Oregon sellers in connect...

Only Tax On Income "Derived" From Another State Is Creditable: July 14, 2023 - Volume 17 Issue 133 Print Report; On June 18, 2001, Petitioner, (P), an individual who is domiciled in New York State, won a jackpot at a slot machine at the Trump Taj Majal Casino in Atlantic City, New Jersey....

The Dominant Motivation Was Investment Related: July 14, 2023 - Bulletin Print Report; AH was in the business of real estate development and hotel ownership and management. AH, PG, and RL founded S to raise funds for SS, which was S's wholly owned subsidiary....

Furnishing Of Go-Karts Constituted "Leasing" Of "TPP": July 14, 2023 - Bulletin Print Report; APP operates indoor go-kart racing venues in California. APP purchased go-karts for use at its venues from a vendor in Italy without paying tax to California or tax reimburseme...

State Tax Refunds Constitute Qualifying REIT Income: July 13, 2023 - Volume 17 Issue 132 Print Report; TP elected to be treated as a REIT. TP owns 100 percent of the stock in S. S is a qualified REIT subsidiary (QRS). S owns, indirectly through entities taxable as partnerships,...

Eli Lilly Embraces The "Closed Transaction" Approach To CVRs: July 13, 2023 - Bulletin Print Report; Recently, Eli Lilly & Co., ("E"), and SigilonTherapeutics, Inc., ("S") announced a definitive agreement for L to acquire the stock of S from its s...

Taxpayer Provides "Credit Bureau Services": July 13, 2023 - Bulletin Print Report; TP is an out-of-state corporation that provides two types of check risk management services: (1) retail check services, and (2) payroll check cashing services. TP makes recomme...

Leasehold Interest Found To Be "Public Property": July 13, 2023 - Bulletin Print Report; The Authority sued the Board, seeking a declaration that its leasehold interest in certain property, "SH," was exempt from ad valorem taxation. The trial court grante...

Citigroup Can Deduct Its Worthless "RAP Right": July 13, 2023 - Bulletin Print Report; One S&L-crisis era"assisted" merger occurred between Glendale Federal Bank, FSB, ("G"), and First Federal Savings and Loan of Broward, ("B&qu...

Spin-Off To Facilitate Raising Needed Capital: July 12, 2023 - Volume 17 Issue 131 Print Report; P corporation, (P), is a closely-held corporation that owns and operates a golf and tennis resort in State A. P has for more than five years owned all of the stock of S corpora...

Fishing Charter Activity Not Engaged In For Profit: July 12, 2023 - Bulletin Print Report; S has been fishing in Alaska for more than thirty years. In 2010, he decided to establish HJC and acquired a boat designed to fish for halibut. In 2015 and 2016, S filed fishin...

Late Filed Appeal Robs Court Of Jurisdiction: July 12, 2023 - Bulletin Print Report; In 2012, plaintiffs purchased residential real property in defendant for $6,267,500. Starting in 2013, and in every year thereafter, plaintiffs submitted a forest management pl...

Contributed Property Found To Be Inventory: July 12, 2023 - Bulletin Print Report; GC is a partnership. In January 2006, ILC purchased nearly 2,000 acres of undeveloped land in Tennessee for over $9 million to develop into a residential vacation comm...

"HEROES" Act Does Not Authorize Loan Forgiveness: July 11, 2023 - Bulletin Print Report; The Higher Education Act of 1965, (the "EA"), specifies the terms and conditions attached to federal loans. It authorizes the Secretary to cancel or reduce loans,&nbs...

Excluded Gain Supports Deduction Of Suspended PALs: July 11, 2023 - Volume 17 Issue 130 Print Report; A, an individual, buys a principal residence for $700,000 and occupies and uses the residence as his principal residence for two years before converting the residence into a re...

Taxpayer Never Abandoned Ohio Domicile: July 11, 2023 - Bulletin Print Report; S applied for refunds of personal income tax paid for tax years 2016 and 2017. On her applications, she asserted that she lived in Florida to help care for her aging parents du...

Where Does Infringing Conduct Occur?: July 11, 2023 - Bulletin Print Report; H manufactures radio remote controls for construction equipment. It sells and services these products...in more than 45 countries. A began to sell H-branded products that incor...

"TIF" Is Not An "Assessment" Excluded From "Real Estate Taxes": July 10, 2023 - Bulletin Print Report; The Minnesota legislature established "TIF" as a financing tool "to support local economic development...using the incremental property taxes, or 'tax increm...

Timing Of Sec. 304 Dividend: July 10, 2023 - Volume 17 Issue 129 Print Report; The I.R.S. will dispose of cases under Sec. 301 (relating to distributions of property by a corporation to its shareholders) that are substantially identical on their facts to...

IT Business Was "Carried On" In New York City: July 10, 2023 - Bulletin Print Report; Taxpayer is an IT consulting service that involves analysis and programming. The partners that own the firm reside in New York City and work from their homes located i...

Sovereign Immunity Is Abrogated "With Respect To" 11 U.S.C. Sec. 544: July 10, 2023 - Bulletin Print Report; Section 544(b)(1) of the Bankruptcy Code provides that "the trustee may avoid any transfer of an interest of the debtor in property...that is voidable under applicable law...

Reinsurer Qualifies As An "Insurance Company": July 7, 2023 - Volume 17 Issue 128 Print Report; Retailer (R) sells Products to customers. R offers customers the option to also purchase a Product Service Contract (PSC). The PSC is issued by O and provides coverage for the...

Declaratory Relief Is Unavailable With Respect To Federal Taxes: July 7, 2023 - Bulletin Print Report; On April 4, 2021, Plaintiff, ("P"), filed a Complaint against the Commissioner of the I.R.S. The United States filed a Motion to Dismiss the Complaint. P alleges he i...

Acquisition Indebtedness Exceeded The Statutory Limit: July 7, 2023 - Bulletin Print Report; In 2019, petitioners, ("Ps"), owned two homes, which they acquired after October 1987 and before December 16, 2017. Ps owned the first home in Virginia for the entire...

Tax Court Correctly Calculated "Entire New Jersey Income": July 7, 2023 - Bulletin Print Report; Plaintiffs are a married couple who were involved in two disputes with the Director. The first dispute occurred in 2004, ("TI"). During that period, T earned income i...

U.S. Property Held By Trustee Not Held By CFC: July 6, 2023 - Volume 17 Issue 127 Print Report; Y corporation, ("Y"), a controlled foreign corporation (CFC) is a wholly-owned subsidiary of X corporation, ("X"), a domestic corporation. &...

Petition For Property Tax Relief Was Not Timely Submitted: July 6, 2023 - Bulletin Print Report; On December 28, 2015, petitioner, ("P"), filed a petition in Superior Court pursuant to section 44-5-26(c), alleging that respondent conducted an illegal property tax...

Parkour Classes Are A Physical Fitness Activity: July 6, 2023 - Bulletin Print Report; TP operates a parkourgym in Washington and conducts parkour classes. Audit determined that the income was properly classified under the retailing B&O tax classificati...

UPS Permitted To Use Alternative Apportionment Formula: July 6, 2023 - Bulletin Print Report; In 3.5.19.15 of the New Mexico Administrative Code, the Department sets forth special rules for apportioning income for interstate trucking companies. The regulation appo...

Taxpayer Did Not "Construct" Principal Residence: July 5, 2023 - Volume 17 Issue 126 Print Report; On January 23, 2009, Petitioner, (P), purchased a house in Port St. Lucie, Florida from GMAC. GMAC had obtained title to the property as a result of foreclosure proceedings. P...

Only A Certificate Can Earn One An Exemption From FICA Tax: July 5, 2023 - Bulletin Print Report; Plaintiffs are Australian nationals who were living in the U.S. temporarily between 2017 and 2020. During that time, plaintiff's employer collected Social Security taxes (&...

Stamping And Embroidering Dog Tags And Collars Is "Manufacturing": July 5, 2023 - Bulletin Print Report; TP makes online sales of pet products such as tags, collars, leashes, and people products, such as military and medical ID tags. The typical customer is a pet owner purchasing...

Losses Did Not Occur In A Disaster Area: July 5, 2023 - Bulletin Print Report; On March 13, 2020, President Trump declared that the COVID-19 outbreak in the U.S. constituted a nationwide emergency pursuant to the Stafford Act. The declaration is referred...

FIS Exploring Sale Of Worldpay: July 3, 2023 - Bulletin Print Report; In 2019, Fidelity National Information Services, Inc., ("FIS"), and Worldpay, Inc., ("WP), engaged in a business combination in which FIS acquired the stock of W...

CFC Partner Avoids Sec. 956: July 3, 2023 - Volume 17 Issue 125 Print Report; TP is a domestic corporation and the parent of a consolidated group. US1 is a domestic corporation wholly owned by TP. F1 is wholly owned by a member of TP's consolidated g...

Section 1603 Grants Are Separate Intangible Assets: July 3, 2023 - Bulletin Print Report; OC partnered with A in 2006 "to finance, develop, and construct wind farms." OC and A entered into an agreement with SCE providing that the OC/A subsidiary would deve...

Unsigned Return Is Not Valid: July 3, 2023 - Bulletin Print Report; S's purported 2013 federal income tax return was filed on October 15, 2014. The return included two signatures: one for CA, a certified public accountant who signed as prep...

A Contractual Commitment Is Not Consideration For A Retail Sale: July 3, 2023 - Bulletin Print Report; Sales taxes in Massachusetts are governed by G.L. c. 64H. Section 2 mandates a 6.25 percent tax on retail sales of tangible personal property and services. The tax is based on...

One Year Note Found To Be A "Security": June 30, 2023 - Volume 17 Issue 124 Print Report; M, on December 16, 1958, formed a corporation under the laws of Georgia. On January 1, 1959, M transferred various assets to the corporation. M received for the transfer 2,498...

Lease Breach Acceleration Debt Was A Liability: June 30, 2023 - Bulletin Print Report; During 2015, petitioner, ("P"), owned and operated PBS, LLC. On June 17, 2015, P signed a promissory note to FFBC for a small business loan in the amount of $15,000....

U.C.L.A. M.B.A. Qualified Taxpayer For A New Trade Or Business: June 30, 2023 - Bulletin Print Report; Petitioner graduated with a liberal arts degree in Spanish and French from Occidental College in 2012. She began working for IL as a translation services coordinator. During 20...

Sale Of Two Condominium Units Not A "Bulk Sale": June 30, 2023 - Bulletin Print Report; Taxpayers sold two condominium units. One unit was a four-bedroom apartment, unit number 4X, which the taxpayers acquired in 1996 as a primary residence. Additionally, the taxp...

Chinook/Novartis Endorse Open Transaction Approach To CVRs: June 29, 2023 - Bulletin Print Report; We have reviewed many deals over the past few years in which the consideration offered to the shareholders of the acquired corporation consisted not only of "current"...

Preferential Dividend Does Not Reduce REIT's Earnings and Profits: June 29, 2023 - Volume 17 Issue 123 Print Report; TP is a domestic corporation that has elected to be treated as a REIT. TP is engaged in the acquisition and holding of commercial mortgage-backed securities (CMBS) issued by RE...

Electronic Tax Court Petition Not Timely Filed: June 29, 2023 - Bulletin Print Report; The Commissioner mailed a notice of deficiency to S on September 8, 2022. The notice stated that the last day to file a petition with the Tax Court was December 12, 2022. While...

Uninhabitable Property Not Properly Classified As Commercial: June 29, 2023 - Bulletin Print Report; The issue to be determined is whether the Assessor has proven, by a preponderance of the evidence, that the property should be classified as commercial for tax years 2022 and 2...

Attribute Of Stock Or Other Property?: June 28, 2023 - Bulletin Print Report; Where a transaction qualifies as a "reorganization," within the meaning of section 368(a) of the Code, the shareholders of the acquired corporation are permitted ...

Furnishing Electricity Is A Service: June 28, 2023 - Volume 17 Issue 122 Print Report; The taxpayer, a producer of electricity, argued that it was entitled to a refund because it paid taxes when it was actually eligible for an exemption under Sec. 39-26-709(1)(a)...

OAH Must Dismiss Constitutional Claims To Tax Statutes: June 28, 2023 - Bulletin Print Report; PM used its "Capital Base" to calculate its franchise tax in accordance with N.C.G.S.section 105-122(b). A corporation's Capital Base was to be calculated b...

The Right To Purchase Wireless Service Is Subject To Sales Tax: June 28, 2023 - Bulletin Print Report; W is an 'S' corporation. N is its sole shareholder. W operated six stores...selling mobile phone equipment, products, and services as an independent contractor with Boo...

Deemed Liquidation Created By Sec. 338(h)(10) Not Under Sec. 332: June 27, 2023 - Volume 17 Issue 121 Print Report; P is the common parent of a consolidated group. P owns all of the stock of S1. S1 owns at least 80 percent of the stock of S2. S2 owns all of the stock of S3. &...

Venue Is A Function Of Statute: June 27, 2023 - Bulletin Print Report; G owns an underground natural gas storage facility in RC. It owns additional properties, including pipelines, that run through thirty-two Mississippi, ("M"), counties...

Late Filed Safe Harbor Election Denied: June 27, 2023 - Bulletin Print Report; On Date 7, TP entered into an agreement with Investment Bank, ("IB"), which provided that IB would act as TP's financial advisor in connection with the sale of TP...

E-Mail Was Not A Claim For Refund: June 27, 2023 - Bulletin Print Report; Defendant conducted an audit of plaintiff's tax returns in May 2018. On October 17, 2018, L sent an e-mail to VB, the "Holdings Memo." The memo begins with L'...

The Willens Deal Survey June 2023: June 26, 2023 - The Deal Survey: June 2023 Print Report; Welcome to this month's summary of deals. Full reports on some of these transactions can be found via the link in the description, or by searching the company name in our database.

New Yorker Denied Resident Tax Credit: June 26, 2023 - Volume 17 Issue 120 Print Report; Petitioner, (P), and her late husband, in 1981, invested approximately $25,000 in RA, LP (R). R, along with an insurance company, built an office tower in Boston, Massachusetts...

Retention Of Driver's License Did Not Preclude Change Of Domicile: June 26, 2023 - Bulletin Print Report; Virginia recognizes two classes of "residents," a domiciliary resident and an actual resident. For a person to change domiciliary residency, that person must intend t...

Cadeler A/S And Eneti, Inc. Announce A Business Combination: June 26, 2023 - Bulletin Print Report; CadelerA/S, ("C"), and Eneti, Inc., ("E"), announced that they have entered into a business combination agreement to combine through a stock-for-stock...

The Bankruptcy Code Strips Tribes Of Their Immunity: June 26, 2023 - Bulletin Print Report; P is a federally recognized Tribe that owns several business entities. One of the businesses, L, allowed C to borrow $1,100 in the form of a short-term loan. C filed for Chapte...

Deducting Dividends On "Qualified Preferred Stock": June 23, 2023 - Volume 17 Issue 119 Print Report; A, B, and C are public utilities. Rates charged to customers are regulated. Therefore, A, B, and C are public utilities within the meaning of Sec. 247(b)(1) of the Internal Rev...

"NIL" Collectives Are Not Tax-Exempt: June 23, 2023 - Bulletin Print Report; In 2021, the NCAA adopted an interim name, image, and likeness, ("NIL"), policy, (the "Interim Policy"), permitting student-athletes to be compensated for u...

Obligation To Repatriate Foreign Assets Not "Stayed" Pending Appeal: June 23, 2023 - Bulletin Print Report; On November 11, 2022, the court entered Final Judgment for the United States and against S in the amount of $12,555,813.00, plus further accruals of late payment penalties and...

Government May Execute Upon Debtor's Cello: June 23, 2023 - Bulletin Print Report; F was the executor of Estate. F created the Trust, ostensibly transferring the Cello from F as Settlor to F as Trustee. The Estate stipulated to additional tax liabilities. F f...

Assessing The Date Of "Transfer" Of Option Stock: June 22, 2023 - Volume 17 Issue 118 Print Report; X has granted nonqualified options to certain of its key employees. Under the terms of the options, the employees have an unconditional right to receive X stock upon notice to...

Objectively Reasonable Claim Can Be A False Claim: June 22, 2023 - Bulletin Print Report; The False Claims Act, ("FCA"), imposes liability on anyone who "knowingly" submits a "false" claim to the Government. The FCApermits private...

CVRs Are Now Standard Operating Procedure: June 22, 2023 - Bulletin Print Report; Chinook Therapeutics, Inc., ("KDNY"), is a biopharmaceutical company focused on developing medicines for the treatment of kidney diseases. It announced that it has en...

Retroactive Application Of Act Found Unconstitutional: June 22, 2023 - Bulletin Print Report; From April 2009 through March 2012, C was an authorized dealer for B, a provider of prepaid wireless service, and operated three stores. C sold cellular telephones, accessories...

Pre-Recorded On Demand Fitness Classes Subject To Sales Tax: June 21, 2023 - Bulletin Print Report; TP offers access to both live, instructor-led fitness classes and pre-recorded, on demand fitness classes. Customers gain access to the classes by purchasing online memberships...

Taxpayer Not Engaged In A Rental Business: June 21, 2023 - Volume 17 Issue 117 Print Report; H worked full time in the sales division of PA. In June 2004, petitioners (H and his wife) acquired a single-family home (CP). In 2004, petitioners and their children were livi...

Taxpayer Did Not Occupy Property As His Principal Residence: June 21, 2023 - Bulletin Print Report; Petitioner, ("P"), owns two residential properties in Kalamazoo, Michigan--the L property and the O property. P requested a principal residence exemption,("...

Vacant Real Property Eligible For Property Tax Exemption: June 21, 2023 - Bulletin Print Report; Petitioner, ("P"), was incorporated in 1864 as a charitable organization. One of its charitable objects is to: "build and maintain a Masonic hall or temple in th...

Redemption Of Fractional Shares Of Sec. 306 Stock: June 20, 2023 - Volume 17 Issue 116 Print Report; X is a domestic corporation with only one class of $15 par value voting common stock outstanding. On April 30, 1980, X effected a recapitalization whereby, pursuant to the plan...

Property Not Used For Purposes Warranting A Tax Exemption: June 20, 2023 - Bulletin Print Report; Petitioner is a local development corporation organized for several charitable and public purposes, including the protection of water quality in the portion of New York City...

Compensation For Providing Free Hotel Stays Is Subject To "TPT": June 20, 2023 - Bulletin Print Report; D participates in the Marriott Rewards Program, (the "RP"). The RP permits hotel guests to earn points from their paid stays at Marriott-branded hotels. The members m...

Taxpayer Was Not A Grocery Store: June 20, 2023 - Bulletin Print Report; The Taxpayer, a retailer of home decor with several locations in Virginia, sells a limited selection of packaged foods in its stores. The Taxpayer states that it has been colle...

Anatomy Of A Master Limited Partnership "Roll-Up": June 16, 2023 - Bulletin Print Report; Recently, ONEOK, Inc., ("OKE"), and Magellan Midstream Partners, L.P., ("MMP), a master limited partnership, ("MLP"), announced that they have executed...

Liquidating An Insolvent Corporation: June 16, 2023 - Volume 17 Issue 115 Print Report; C is a State X corporation engaged in property management and other businesses. C has outstanding 228,000 shares of voting common stock, all of which are held by Trust (T), a r...

Loss From "Sham" Transaction Not Deductible: June 16, 2023 - Bulletin Print Report; In October 2002, APP co-foundedand incorporated F. F reported net losses. APP made numerous transfers or advances of funds to F. APP's trust and W executed a document...

Surplus Lines Broker Includible In Combined Tax Return: June 16, 2023 - Bulletin Print Report; TP and its affiliates filed combined Virginia corporate income tax returns and consolidated federal income tax returns. The Department's auditor removed Subsidiary A from t...

D's Payment Of Liabilities To Which Assets Transferred To C Are Subject: June 15, 2023 - Volume 17 Issue 114 Print Report; D is a State A corporation engaged in the "a" and "b" businesses. D has one class of voting common stock outstanding, all of which is held by A. C is a corp...

Sales Not Found To Be "Wholesale" Sales: June 15, 2023 - Bulletin Print Report; T is a Wyoming corporation and has a retail location in Mississippi, ("M"). T sells various items of property to purchasers in the oil and gas industry. Section 27-65...

Appeals Before The OTA Are Not Tolled By The "Automatic Stay": June 15, 2023 - Bulletin Print Report; CDTFA based two notices of deficiency ("NOD"), on its determination that APP had aggregate unreported sales of nearly $21 million. Subsequently, APP appealed CDTFA...

Venerable Common-Law Rule Completely Supplanted By Statute: June 15, 2023 - Bulletin Print Report; The I.R.S. audited P. The I.R.S. misinterpreted its own audit, concluding that P had underpaid. He paid up. Properly understood, the audit revealed that P had overpaid. So P ti...

Loss On Sale Of Farm Disallowed: June 14, 2023 - Volume 17 Issue 113 Print Report; Petitioner, (P), was a family corporation. The assets of the corporation consisted mostly of farm lands. Included among them was the "Anderson farm."...

The Care Of Horses Is A Charitable Purpose: June 14, 2023 - Bulletin Print Report; MEC is a Connecticut non-stock corporation. MEC owns property in Torrington, Connecticut. MEC is recognized as a charitable organization under section 501(c)(3) of the Internal...

An LLC Is Distinct From Its Member: June 14, 2023 - Bulletin Print Report; CalSTRS, ("CS"), the California State Teachers' Retirement System, is a "unit of the Government Operations Agency" authorized to "invest the assets...

Liberty Media Prepares To Split-Off The Atlanta Braves: June 14, 2023 - Bulletin Print Report; Liberty Media Corporation, ("LMC"), is in the final stages of separating from the LMC family its subsidiary that operates the Atlanta Braves baseball club and also da...

Taxpayer Denied Real Property Tax Credit: June 13, 2023 - Volume 17 Issue 112 Print Report; During 2007, WM, an individual, was the sole shareholder of LO and of LOH. LOH was the sole shareholder of MI. LO, LOH, and MI were all 'S' corporations. LO became cert...

Purchase Of Partnership Interest Benefits From "Expansion Doctrine": June 13, 2023 - Bulletin Print Report; Corporation A, a country A corporation, owns all of the stock of Corporation B. Corporation A and Corporation B together own all the outstanding stock in Distributing. Distribu...

Union's Conduct Not Protected By NLRA: June 13, 2023 - Bulletin Print Report; The National Labor Relations Act, (the "NLRA"),encourages collective bargaining between labor and management. To enforce the NLRA, Congress created the National...

Redemption Obligation Is Not A "Liability": June 13, 2023 - Bulletin Print Report; M and T owned all of the stock of C. M owned 77.18 percent of the stock; and T owned 22.82 percent thereof. M and T are brothers. The brothers and C entered into a stock purcha...

NDAQ Will Not Get A Basis Step-Up: June 12, 2023 - Bulletin Print Report; It is ordinarilythe case, where a public corporation acquires a private one, that the deal will be structured to permit the acquirer to obtain a "cost" (i.e., s...

Source-Identifying Trademarks Are More Likely To Infringe And Dilute: June 12, 2023 - Bulletin Print Report; VIP Products LLC makes a dog toy designed to look like a bottle of Jack Daniel's whiskey. Though not entirely. For example, on the toy, the words "Jack Daniel's&qu...

Energy Credit Available To Domestic Partnership: June 12, 2023 - Volume 17 Issue 111 Print Report; Y, a domestic corporation, was the sole member of X, a disregarded entity. Y has not elected to be exempt from federal income tax pursuant to Sec. 936 of the Code. Z, a domesti...

Tax Court Abates Late Filing And Late Payment Penalties: June 12, 2023 - Bulletin Print Report; Petitioner, 92 years old, operated a law practice. He did not timely file returns or timely pay employment tax liabilities for the periods ending September 30, 2017 through Jun...

Section 11 Liability Only Attaches To Registered Shares: June 12, 2023 - Bulletin Print Report; The Securities Act of 1933 requires a company to register the securities it intends to offer to the public with the SEC. The Securities Exchange Act of 1934 requires publicly t...

Fraternal Organization Not Eligible For A Property Tax Exemption: June 9, 2023 - Bulletin Print Report; In 2017, petitioner, as an alleged "benevolent organization," filed an application for a real property tax exemption pursuant to (New York) Real Property Tax Law sect...

Sale To Private Third Party Comes Within Sec. 1033: June 9, 2023 - Volume 17 Issue 110 Print Report; The district court found that the sale by the taxpayer of its property to TBCC was as a result of the threats of condemnation described in the findings. However, the court conc...

Foundation Was Not A "Scientific Institution": June 9, 2023 - Bulletin Print Report; The Foundation is a non-profit corporation that occupies about two-thirds of Hurricane Island under a forty-year lease that began in January 2010. In March 2019, the Foundation...

Section 183(b)(2) Deductions Are Unequivocally "Below-The-Line": June 9, 2023 - Bulletin Print Report; In 2011, the Gs formed CLC to own and charter a yacht. CLC elected treatment as a disregarded entity. Because CLC lacked a profit motive, the Commissioner adjusted the Gs'...

Stock Acquisition And Preplanned Liquidation Not Integrated: June 8, 2023 - Volume 17 Issue 109 Print Report; Mr. A owns T. T had $150x worth of assets and $50x of liabilities. The value of P's assets, net of liabilities, is $410x. P forms X for the sole purpose of acquiring all th...

EIP Will Vote Against The ONEOK/MMP Deal: June 8, 2023 - Bulletin Print Report; Not surprisingly, we suppose, one of the largest holders of Magellan Midstream Partners, L.P., ("MMP"), has indicated that the tax profile of the MMP/ONEOK deal will...

Contingent Fee Arrangement Was Improper: June 8, 2023 - Bulletin Print Report; ISD employed attorney L to pursue claims regarding the Appraisal District's allegedly inaccurate valuation of Kinder Morgan's mineral interests. The contract with L pro...

Is Deferred Compensation An "Above-The-Line" Item?: June 8, 2023 - Bulletin Print Report; The taxpayer, ("TP"), on the receiving end of TAM 202315010, January 9, 2023,is taxed as a non-life insurance company under part II of subchapter L of the Code....

Corrected Refund Claims Were Untimely: June 8, 2023 - Bulletin Print Report; In 2017, D's tax preparer filed amended tax returns for him...claiming a refund of amounts paid for tax years 2013 and 2014.The I.R.S. denied the refund claims and in...

REIT May Render Non-Customary Services Through A TRS: June 7, 2023 - Volume 17 Issue 108 Print Report; R is a REIT. R owns and operates rental apartment properties. In 2002, R formed T to provide services to tenants of its properties. R and T filed Form 8875 to jointly elect for...

Clinical Testing Expenses That Are Also Qualified Research Expenses: June 7, 2023 - Bulletin Print Report; U, a biotechnology company, is a Delaware public benefit corporation. For each of the tax years 2011 through 2014, U computed and claimed both the research credit under section...

Only The Account Owner Can Claim A "529" Deduction: June 7, 2023 - Bulletin Print Report; In 2008, petitioners established a section 529 tuition plan ("529 Plan") for the benefit of their minor son, with the state of Rhode Island, ("RI 529"), thr...

Whistleblower's Information Did Not Lead To Administrative Action: June 7, 2023 - Bulletin Print Report; V sent information to the Whistleblower Office of the I.R.S. that he believed showed a company was underpaying taxes by taking unjustified deductions and using improper transfe...

A Stock’s “Inherent Attribute” Determines Whether It Is “Voting Stock": June 6, 2023 - Bulletin Print Report

Who Is An "Independent Contractor?": June 6, 2023 - Volume 17 Issue 107 Print Report; The trust, a REIT, entered into a partnership with X for the purpose of constructing and holding for investment a number of apartment buildings. The trust contributed 10 acres...

Tax Exemptions Are Not Granted By Implication: June 6, 2023 - Bulletin Print Report; B reported income from his law practice and a sizable net operating loss carry forward that was more than sufficient to shield his income from income tax. But his self-employme...

Vehicle Expenses Were Non-Deductible Commuting Expenses: June 6, 2023 - Bulletin Print Report; L is a sheet metal worker. During the years at issue he was employed by DZ. From 2012 through 2019, L worked at the Browns Ferry Nuclear Plant, ("BFNP"), as an employ...

Cleaning Equipment Not Used In The Production Process: June 5, 2023 - Bulletin Print Report; S manufactures and distributes cheese. Cheese is manufactured in batches. After each batch is completed, the "clean-in-place," ("CIP"), equipment runs a cle...

Proceeds From Voluntary Sale Not Eligible For Sec. 1033 Benefits: June 5, 2023 - Volume 17 Issue 106 Print Report; The taxpayer was the owner of a shopping center that contained a number of stores and offices under various lease agreements. A part of the...

GNL And RTL Choose A Tax-Free Deal: June 5, 2023 - Bulletin Print Report; While many acquisitions of real estate investment trusts, ("REITs"), are structured as taxable acquisitions of the assets of the acquired REIT, so as to provide the a...

Club's Real Property Not Used Exclusively For Charitable Purposes: June 5, 2023 - Bulletin Print Report; The subject property is improved with a building. The Club claimed the property was used for "monthly meetings, luncheon/card parties, Election Day luncheons..." The...

Thomson Reuters To Return Capital To Shareholders: June 2, 2023 - Bulletin Print Report; Thomson Reuters, ("TRI"), has been gradually liquidatingits positionin the London Stock Exchange, ("LSEG"). More accurately, the shares so sold...

Preliminary Recapitalization Makes Spin-Off Possible: June 2, 2023 - Volume 17 Issue 105 Print Report; Distributing, (D), is a holding company incorporated in State X. Its assets consist of 3,602 shares of voting common stock in Controlled (C), a 27.875 percent interest in a par...

Non-Resident Employee "Transacted Business" In Alabama: June 2, 2023 - Bulletin Print Report; Taxpayer, it is undisputed, is a domiciliary of Florida. The Taxpayer is a director for T.R. Miller Company, Inc., ("TRM"), which is located in Brewton, Alabama, and...

Tax Sale Purchaser Can Be Reimbursed For "Preservation Improvements": June 2, 2023 - Bulletin Print Report; The property had served as a rental home located in a residential neighborhood. The property owner, K, stopped paying property taxes in 2015 after a fire extensively damaged th...

Factor Analysis Used To Determine Reasonable Compensation: June 1, 2023 - Bulletin Print Report; H was formed in 1980 as a subchapter 'C' corporation. CH and his wife, GH, each owned fifty percent of the stock. By 2015, largely through the efforts of CH, the compan...

No UBT Deduction For Compensation Paid To Partners: June 1, 2023 - Volume 17 Issue 104 Print Report; TAM is a limited partnership. It was an investment advisor registered with the S.E.C. TAM's affairs were managed by TMC, its general partner, a corporation which elected &#...

Motion To Vacate Tax Lien Foreclosure Was Time-Barred: June 1, 2023 - Bulletin Print Report; In July 2015, the City of New York commenced this action...to foreclose certain tax liens. A notice of foreclosure dated July 24, 2015, was published for six successive weeks i...

Film Venture Not Engaged In For Profit: June 1, 2023 - Bulletin Print Report; S is a physician who practices emergency medicine. During taxable year 2015, the year at issue, S worked at federal facilities in Arizona. S estimates that he works approximate...

Exchange Found To Qualify Under Sec. 1036: May 31, 2023 - Volume 17 Issue 103 Print Report; Mr. D, an individual, transferred his Class A voting common stock of a corporation to Mrs. C, also an individual, solely in exchange for Class B non-voting common stock of the...

Special Purpose Entity Not Conducting Business In Indiana: May 31, 2023 - Bulletin Print Report; TP is a company engaged in the business of providing communications services. TP filed amended corporate tax returns to includeone of its affiliates, "Holdings."...

Medical Office Workers Are Employees: May 31, 2023 - Bulletin Print Report; Petitioner, ("P"),is a limited liability company whose sole member is Dr. K, ("K").P was treated as a disregarded entity. K operated his medical...

Twitter Does Not "Aid And Abet" Terrorist Attacks: May 31, 2023 - Bulletin Print Report; United States nationals who have been "injured...by reason of an act of international terrorism" may sue for damages. 18 U.S.C. section 2333(d)(2) also imposes civil...

The Interaction Of Sec. 1248 And Sec. 351: May 30, 2023 - Volume 17 Issue 102 Print Report; T is a domestic corporation. T owns all of the stock of S, a Country A corporation, and all of the stock of EE, a domestic corporation. T proposes to transfer the stock of S to...

A Partnership Is An Entity For "FIRPTA" Purposes: May 30, 2023 - Bulletin Print Report; PRS is a partnership. C is a U.S. real property holding corporation, ("USRPHC"). C's stock is regularly traded on an established securities market. NRA, a non-res...

Who Is Liable For Unpaid Estate Taxes?: May 30, 2023 - Bulletin Print Report; AP died on July 19, 2000. His gross estate was valued at $193,434,344 for federal estate tax purposes. Nearly all of his assets were held in a living trust. In October 2001, JM...

Taxpayer Need Not Have A Legal Interest In Records Summoned: May 30, 2023 - Bulletin Print Report; The I.R.S. may issue a summons to "determine the liability" of a taxpayer or "any transferee or fiduciary" for unpaid taxes. See section 7602(a). The I.R.S....

DM Will Engage In An "Outbound" Transaction: May 26, 2023 - Bulletin Print Report; Stratasys Ltd., ("SSYS"), an Israeli corporation, and Desktop Metal, Inc., ("DM"), a domestic corporation, announced that they have entered into a definitiv...

Remaining Value From A Tax Sale Is "Property": May 26, 2023 - Bulletin Print Report; Hennepin County, ("HC"), imposes an annual tax on real property. GT bought a condominium in Minneapolis. By 2015, it had accumulated about $2,300 in unpaid taxes and...

Liquidating Distributions Were Compensation For Services: May 26, 2023 - Volume 17 Issue 101 Print Report; The issue is whether payments made in liquidation of partnership interests which constitute the retiring partners' pro rata share of the partnership's unrealized receiv...

Taxpayer Used "Cost Accounting Methodology": May 26, 2023 - Bulletin Print Report; PESCO, ("P"), designs and manufactures unique products for use in the oil and gas industry. It applied for a tax credit to recoup some of its research and development...

Apportionment Method May Be Elected In An Amended Return: May 25, 2023 - Bulletin Print Report; H is a Virginia corporation. Virginia law requires that "multi-state businesses...apportion their income to determine the amount of their income that is taxable in Virgini...

Gauging The Basis Of Property Acquired For Stock: May 25, 2023 - Volume 17 Issue 100 Print Report; M is a State X corporation which is engaged in the manufacture and sale of products and systems. M is the parent of an affiliated group which files a consolidated federal incom...

Decorative Grass Is Not "A Thing Of The Soil": May 25, 2023 - Bulletin Print Report; T is a lawn care company. By its own admission, it is not an agricultural business. T cares for the lawns and landscaping of its residential and commercial clients. The followi...

Refund Of Early Withdrawal Penalty Is Excluded From Debtor's Estate: May 25, 2023 - Bulletin Print Report; M filed a Chapter 7 petition with the Bankruptcy Court on September 27, 2022. He disclosed a 2021 tax refund not yet received that was joint with his ex-spouse. H, the trustee,...

CVX's Basis In PDCE Will Not Reflect Its Outlay: May 24, 2023 - Bulletin Print Report; Chevron Corporation, ("CVX"), recently announced it has entered into a definitive agreement with PDC Energy, Inc., ("PDCE"), to acquire all outstanding shar...

The Willens Deal Survey May 2023: May 24, 2023 - The Deal Survey: May 2023 Print Report; Welcome to this month's summary of deals. Full reports on some of these transactions can be found via the link in the description, or by searching the company name in our database.

Lack Of Employees Not A Bar To Meeting Active Business Test: May 24, 2023 - Volume 17 Issue 99 Print Report; D has elected to be an 'S' corporation. D owns approximately "a" acres of land. D engages principally in Business A. S, which is wholly owned by D, is engaged...

Deficient "CWA" Precludes Charitable Contribution Deduction: May 24, 2023 - Bulletin Print Report; APPs deducted $5,021,550 on Schedule A of their 2009 California income tax return for charitable cash contributions to the Foundation. Foundation,a tax-exempt private fou...

Defective Certificate Of Formation Precludes Property Tax Exemption: May 24, 2023 - Bulletin Print Report; P owns five parcels of real property, (the "Subject Properties"), located in Jersey City, New Jersey. P submitted applications to the Municipality for property tax ex...

Notice Of Gift Tax Deficiency Not Timely Issued: May 23, 2023 - Bulletin Print Report; On September 22, 2006, UVLPolicy No. XXX-X03-06 was issued. On April 23, 2007, S and his mother jointly requested that SW assign the policy so that S's mother, aunt,...

I.R.A. Runs Afoul Of Sec. 408(m): May 23, 2023 - Volume 17 Issue 98 Print Report; CM and its affiliate, CN, are non-bank entities that provide precious metals administration and safekeeping services to various customers. Taxpayer requests the following rulin...

Debt Discharge Must Be Reported To The I.R.S.: May 23, 2023 - Bulletin Print Report; E is a credit union. When certain debtors defaulted on loans, E sent presale notices to the debtors stating that the collateral for the loans was being repossessed. Two of thes...

Intellectual Property Is The Corporation's Principal Asset: May 23, 2023 - Bulletin Print Report; H founded Company on Date 1 as a 'C' corporation. On the date of its formation, Company issued "A" shares constituting "B%" of Company's stock t...

"Buy/Sell" Transactions Were An Exchange Of Inventory: May 22, 2023 - Bulletin Print Report; SP was the general partner of SL. SP had three corporate partners, each of which was included in S's Tax filings for the Tax Period. SPMT was a disregarded entity that flow...

I.R.A. Did Not Purchase A Collectible: May 22, 2023 - Volume 17 Issue 97 Print Report; CM formed Trust T(TT) as an investment trust under State A law. The trustee of TT is TN, a banking corporation organized under the laws of State A. TT is a grantor trust....

Sovereign Immunity Was Not Unmistakably Abrogated: May 22, 2023 - Bulletin Print Report; Congress passed the Puerto Rico Oversight, Management, and Economic Stability Act of 2016, ("PROMESA"), to deal with a fiscal emergency. PROMESA creates, as its cente...

Disability Benefits Properly Excluded From Gross Income: May 22, 2023 - Bulletin Print Report; Conn. Gen. Stat. section 5-192p provides: "If a member of Tier II, while in state service, becomes disabled...prior to age sixty-five, he is eligible for disability retire...

REIT Merger Intended To Qualify As A Tax-Free Reorganization: May 19, 2023 - Bulletin Print Report; Regency Centers Corporation, ("REG"), and Urstadt Biddle Properties, Inc., ("UBP"), each a real estate investment trust, ("REIT"), announced that...

Receipts From Hedging Not Derived From Primary Business Activity: May 19, 2023 - Bulletin Print Report; P was engaged in a fully integrated petroleum business. P used derivative commodity instruments...to manage risks related to the price volatility of crude oil and other petrole...

Origination Of Mortgage Loan Not A "Purchase" Thereof: May 19, 2023 - Volume 17 Issue 96 Print Report; Petitioner, (P), a bank, claimed an investment tax credit in the amount of $701,785 on its 1999 franchise tax return in connection with a building that it purchased and used ex...

FRG Is Engaging In A "Two-Corporation" LBO: May 19, 2023 - Bulletin Print Report; Management and itsaffiliates and related partiescurrently owns approximately 36 percent of the stock of Franchise Group, Inc., ("FRG"). The remainder of t...

Tax Fraud Sentences Are Geared To Actual And Intended Losses: May 19, 2023 - Bulletin Print Report; U and T were indicted in 2018 for engaging in two fraudulent tax schemes over the course of a decade. U was convicted of conspiracy to defraud the United States and eight count...

Is UBS's Acquisition Of Credit Suisse A Reorganization?: May 18, 2023 - Bulletin Print Report; More details have now emerged regarding UBS Group AG's acquisition of its former rival, Credit Suisse Group AG. As advertised, the acquisition will be structured as a merge...

Sale Of Borrowed Stock Effects A "Disposition" Of Option Stock: May 18, 2023 - Volume 17 Issue 95 Print Report; The taxpayer acquired stock through the exercise of a "qualified stock option." Prior to the lapse of the holding period required in Sec. 422(a)(1) ("no disposit...

Interest On Child Support Arrearages Was Taxable: May 18, 2023 - Bulletin Print Report; During 2011 and 2012, petitioner and her former spouse were engaged in litigation in the Circuit Court of Mobile County, Alabama, (the "state court"),concerning...

Section 6426 Credits Reduce Excise Tax Liability: May 17, 2023 - Bulletin Print Report; G is an agricultural cooperative that sells gasoline and diesel fuel, renewable fuels, alcohol fuel mixtures, and biodiesel mixtures. Petitioner incurred a section 4081 fuel ex...

Pension Agreement Is Not A Prohibited Interest: May 17, 2023 - Volume 17 Issue 94 Print Report; A and A's children, B and C, own all of the stock of X. Upon A's retirement, X redeemed all its stock held by A for an amount of cash equivalent to the fair market valu...

Not All Residential Property Eligible For Property Tax Exemption: May 17, 2023 - Bulletin Print Report; The Utah Legislature chose to enact a property taxexemption, but limited the definition of "residential property" to "any property used for residential pur...

Verizon's Services Are Internet Access Services: May 17, 2023 - Bulletin Print Report; The Division determined that petitioner, ("P"), was liable for additional tax pursuant to Tax Law section 184 on its gross receipts from Verizon's services. The a...

Distributions Of Stock Disregarded For Purposes Of Sec. 355(b)(2)(D): May 16, 2023 - Volume 17 Issue 93 Print Report; X has operated a business since 1960 and has owned all the stock of Y which has conducted an active trade or business since its incorporation in 1961. &n...

Unity Of Ownership And Occupation Not Required For Tax Exemption: May 16, 2023 - Bulletin Print Report; TSF is a non-profit entity. It has two member churches. TSF owns the property...in Paducah, Kentucky. The property has been used for many years as a church by other oc...

Residence And Intent Are The Essential Ingredients For A New Domicile: May 16, 2023 - Bulletin Print Report; Taxpayer stated that his position is that he was not domiciled in Alabama in 2018 and, therefore, he is not subject to Alabama income tax on his wages during that year. The Rev...

Title To Property Did Not Confer Ownership: May 16, 2023 - Bulletin Print Report; This matter involves real property located in the City, ("property"). The Church uses the property exclusively for religious purposes, which the City does not dispute...

Carryover Of Unused Foreign Tax Credits: May 15, 2023 - Volume 17 Issue 92 Print Report; P, a foreign corporation, owns all of the stock of S-1 and S-2. S-1 is a foreign corporation that is incorporated in Country X. S-2 is a domestic corporation engaged in the ban...

Newmont's Acquisition Of Newcrest Will Not Be A Reorganization: May 15, 2023 - Bulletin Print Report; Newmont Corporation, ("NEM"), announced that it has finally bagged the prize it has long been pursuing. It has entered into a binding "Scheme Implementation Deed...

OKE's Acquisition Of MMP Will Be Fully Taxable: May 15, 2023 - Bulletin Print Report; ONEOK, Inc., ("OKE"), and Magellan Midstream Partners, L.P., ("MMP"), announced that they have executed a definitive merger agreement, in whicha newly...

Netflix's Winning Streak Continues In Louisiana: May 15, 2023 - Bulletin Print Report; This case concerns the application of Louisiana's Consumer Choice for Television Act, (the "CCTA"), which authorizes subdivisions of the State to collect franchis...

Refund Of Tobacco Products Excise Tax Granted: May 15, 2023 - Bulletin Print Report; APPsreported andpaid tax to CDTFAon the distribution of "shisha."Shishais a product containing molasses, flavorings, and tobacco. APPs&#...

Section 6501(a) Is Inapplicable To Assessment Of Section 6700 Penalties: May 12, 2023 - Bulletin Print Report; The Internal Revenue Service assessed penalties pursuant to section 6700 of the Code against C in connection with his promotion of a tax shelter scheme. C filed a motion to rec...

Gain Was Realized Before Domicile Changed: May 12, 2023 - Bulletin Print Report; For tax year 2016, petitioners filed form IT-203 as New York State part-year residents. Petitioners reported that they moved out of New York City on May 15, 2016. Petitioners r...

Entire "Gap" Mortgage Subject To New York Recording Tax: May 12, 2023 - Volume 17 Issue 91 Print Report; On July 6, 2011, petitioner (P) purchased an auto dealership, which included real property, in Middle Village, New York. On that date, P entered into a mortgage agreement with...

Electronically Filed Tax Court Petition Was Not Timely: May 12, 2023 - Bulletin Print Report; The Commissioner mailed a notice of deficiency to the Ns on April 14, 2022, determining an income tax deficiency. The notice was dated April 18, 2022, and the notice stated tha...

Livent Corporation Will "Invert": May 11, 2023 - Bulletin Print Report; Allkem Ltd., and Livent Corporation announced the signing of a definitive agreement "to combine the two companies." From Livent's point of view, the deal resemble...

Failure To Withhold Does Not Relieve Employee Of Liability: May 11, 2023 - Volume 17 Issue 90 Print Report; Mr. I reported income he received in 2009 from GW as "wages, salaries, tips and other employee compensation" on his Massachusetts (M) Resident Income Tax Return filed...

Interest Accrued On U.S. Savings Bonds Was Found To Be "IRD": May 11, 2023 - Bulletin Print Report; Petitioner filed his 2018 federal income tax return on April 15, 2019. For that year, OZ issued him a Schedule K-1...that reported interest income and dividend income. For 2018...

Claim Excepted From Chicago's False Claims Ordinance: May 11, 2023 - Bulletin Print Report; PL was engaged in the "lease-to-own" business. PL had not been paying the Chicago lease tax on its lease transactions. W, a former employee of PL, filed a complaint a...

Taxpayer Not "Doing Business" in N.Y.: May 10, 2023 - Volume 17 Issue 89 Print Report; P Corporation, (P), sells gifts and awards to companies that wish to honor their employees. P has manufacturing and inventory warehousing facilities located in North...

Vested Rights Cannot Be Extinguished Retrospectively: May 10, 2023 - Bulletin Print Report; H filed earnings tax returns with the city of Kansas City, (the "City"), in March 2022, seeking a refund of earnings taxes withheld from her pay checks during 2019 an...

Out-Of-State Resident Entitled To Sales Tax Refund: May 10, 2023 - Bulletin Print Report; Taxpayer, ("TP"), is a Michigan resident who purchased a recreational vehicle, ("RV"), from an Indiana dealership. TP paid Indiana's seven percent sales...

REIT Does Not Furnish Health Care Services: May 10, 2023 - Bulletin Print Report; TP is a limited liability company that intends to elect to be taxed as a real estate investment trust,("REIT"). The Facilities are marketed as "Independent...

Braves Split-Off Features Tax-Free Debt Extinguishment: May 9, 2023 - Bulletin Print Report; Liberty Media Corporation ("Liberty")is in the process of converting its Atlanta Braves tracking stock into "asset-based" stock via a tax-free distrib...

Payments To Protect Business Reputation Are Deductible: May 9, 2023 - Volume 17 Issue 88 Print Report; The taxpayer is a furniture moving and storage company. During the taxable year, a fire totally destroyed its warehouse, which contained household goods of many of the taxpayer...

Non C-Band Assets Constitute Qualified Replacement Property: May 9, 2023 - Bulletin Print Report; TP is a partnership for federal income tax purposes. TP operates commercial communications satellites. TP has rights to transmit information in...the spectrum. Many of TP's...

California "HCSPs" Are Not "Insurers": May 9, 2023 - Bulletin Print Report; Theseappeals ariseout of suits brought by M. M seeks to compel the California State Board of Equalization...to collect the gross premium tax, ("GPT"), fro...

Special Dividends Not Part Of The Purchase Price Of Stock: May 8, 2023 - Bulletin Print Report; Husband, ("H"), owned stock in Cellmania, ("C"), a 'C' corporation. On June 11, 2010, Research in Motion, ("R"), sent a letter of intent,...

Sequential Reorganizations Recast: May 8, 2023 - Volume 17 Issue 87 Print Report; W was incorporated in 1954, and was engaged in the business of owning and leasing real estate and personal property. W has 1,169 shares of common stock issued and outstanding....

QRTEA's Deferred Tax Liability: May 8, 2023 - Bulletin Print Report; Qurate Retail, Inc., ("QRTEA"), is reporting a deferred tax liability in the amount of $970 million and labeled"Discount on exchangeable debentures."...

Pre-Wayfair Nexus Not Found: May 8, 2023 - Bulletin Print Report; The sole issue is whether Arizona has "nexus" under pre- Wayfair cases. Nexus is one part of a four-part Commerce Clause analysis set forth in precedent,...

Repeal Of Section 958(b)(4) Singes MO: May 5, 2023 - Bulletin Print Report; Altria Group, Inc., ("MO"), has owned slightlymore than 10 percent of the stock, by vote and value, of Anheuser-Busch InBevSA/NV, ("ABI"), for s...

Tennessee "Respects" Sec. 338(h)(10) Elections: May 5, 2023 - Volume 17 Issue 86 Print Report; SP owns all of the stock of S. S, in turn, owns all of the stock of T. T will distribute more than 50 percent of its retained assets and certain liabilities to S. A subsidiary...

Linen Rental Business Was Not A "Processing Operation": May 5, 2023 - Bulletin Print Report; AN rents disinfected, reusable linens to hospitals, outpatient facilities, and long-term care centers in Arizona, ("AZ"). AN seeks summary judgment that its purchases...

Right To Proceeds Fixed Before Gift Of Stock Completed: May 5, 2023 - Bulletin Print Report; As of January 1, 2015, CSTCwas owned by petitioner and his two brothers, with each such sibling holding a one-thirdshare of the stock. FC is a tax-exempt charitable...

Taxpayer Received A Profits Interest For Services: May 4, 2023 - Bulletin Print Report; Before October 14, 2011, JL owned 100 percent of the outstanding shares or membership interests in NPA, Inc., CCS, NOU, and ACC. Those entities conducted consumer loan business...

Loss On Sale Of Farm To Son-In-Law Is Deductible: May 4, 2023 - Volume 17 Issue 85 Print Report; In 1939, Petitioner, (P), purchased a farm, paying $5,500 for it. He made improvements to the farm. Title to the farm was in the name of P's spouse. In October 1938, P'...

Protocol Upgrade Is Not A Realization Event: May 4, 2023 - Bulletin Print Report; An individual holds a cryptocurrency native to a blockchain distributed ledger that undergoes a protocol upgrade. In particular, Mr. T, on Date 1, purchases ten units of C, a c...

Energy Project Properly Increased Value Of Underlying Real Estate: May 4, 2023 - Bulletin Print Report; Plaintiff, ("P"), owns a 14.6 acre tract of land in Lincoln, Rhode Island, (the "property"). Pentered into a long-term lease with G for the constructi...

Partnership Interest Did Not Acquire A Business Situs In Massachusetts: May 3, 2023 - Bulletin Print Report; E, a Delaware Limited Liability Company, ("LLC"), provided portfolio management services. E was classified as a partnership. E had offices in California, Massachusett...

"In Connection With" Is Broadly Construed: May 3, 2023 - Volume 17 Issue 84 Print Report; Sec/ 174(a)(1) of the Code allows a taxpayer to take as a deduction "experimental expenditures which are paid or incurred by him during the taxable year in connec...

Disability Payments Were Includible In Gross Income: May 3, 2023 - Bulletin Print Report; On September 8, 2014, H was hired to work for an insurance agency and brokerage company. The company provided disability insurance for its employees, including H. On June 1, 20...

North Carolina Law Does Not Incorporate Federal Definition Of "Partner": May 3, 2023 - Bulletin Print Report; "A taxpayer that has constructed, purchased, or leased renewable energy property" is eligible to receive a credit "if the property is placed in service in this S...

JPM Makes A "Bargain" Purchase: May 2, 2023 - Bulletin Print Report; JPMorgan Chase, ("JPM") announced that it has acquired "the substantial majority of assets and assumed the deposits and certain other liabilities of First Republ...

"Headlee" Claim For Refund Determined To Be Time-Barred: May 2, 2023 - Bulletin Print Report; The City is served by two electric utility providers, L and C. The City granted L use of the City's rights of way. In exchange, L agreed to "collect and remit to the C...

Loss On Sale To Step-Grandson Not Barred: May 2, 2023 - Volume 17 Issue 83 Print Report; H and M are husband and wife. H was the owner of a two-family apartment house and the land on which it stood in Syracuse, New York. On Marc...

Gains Are "Reportable As Income": May 1, 2023 - Bulletin Print Report; H is a limited liability company that acquired leasehold interests in several oil and gas properties. H sold its leasehold interests and reported to the Comptroller on its fran...

Bankruptcy Court Cannot Grant Innocent Spouse Relief: May 1, 2023 - Bulletin Print Report; Debtor, ("D"), commenced this adversary proceeding seeking a determination under section 505 of the Bankruptcy Code that she owes no taxes for 2015, 2016, and 2017 as...

The Long Reach Of Sec. 1042(e)(1): May 1, 2023 - Volume 17 Issue 82 Print Report; TP is a shareholder of A, a domestic C corporation. A maintains an ESOP. TP did not receive the shares in a distribution from a plan described in Sec. 401(a) of the Code, or a...

"CRAT" Distributions Were Ordinary Income: May 1, 2023 - Bulletin Print Report; The A and G charitable remainder annuity trust, ("CRAT"), was created on November 2, 2015. A and G were the CRAT's non-charitable beneficiaries. The CRATins...

Can Illumina Spin-Off GRAIL Tax-Efficiently?: April 28, 2023 - Bulletin Print Report; Illumina, Inc., ("ILMN"),acquired GRAIL, ("G"), in August 2021. The transactionwas structured along familiar lines. ILMN, to effect the acquisit...

Unsworn Letter From Contractor Cannot Establish Basis: April 28, 2023 - Bulletin Print Report; Petitioners, ("Ps"), owned real property located at 500 Old Town Road, Southampton, New York, (the "S property"). On December 4, 2013, Ps sold the S propert...

Merger Without "Continuity" Cannot Be A Reorganization: April 28, 2023 - Volume 17 Issue 81 Print Report; The Tax Court held that literal compliance with the provisions of a state law authorizing a merger would not in itself effect a reorganization; that the test of contin...

Items That Have General Use Are Not "Medical Equipment": April 28, 2023 - Bulletin Print Report; The taxpayer filed a claim for refund of the sales tax she paid on the purchase of a "swim spa." The Department of Revenue, (the "Department"), determined t...

A Rolled Over IRA Constitutes "Retirement Funds": April 28, 2023 - Bulletin Print Report; Debtor was married to RK, who passed away in 2008. After her husband's death, Debtor "rolled over"RK's IRA to Debtor's IRA. All funds in the account...

Amounts Spent By "Relocation" Entity Not Income To Employee: April 27, 2023 - Volume 17 Issue 80 Print Report; Y has established an employee relocation program designed to assist its employees being transferred to new work locations. As part of the program Y has entered into a contract...

"Solely" Leaves No Leeway: April 27, 2023 - Bulletin Print Report; Lithium Americas Corporation, ("L"), and Arena Minerals, Inc., ("A"), each a Canadian corporation, announced the completion of their plan of arrangement &qu...

Employee Could Not Prove He Was A "Real Estate Professional": April 27, 2023 - Bulletin Print Report; Petitioners, ("Ps"), deducted rental real estate losses for 2017 from their three cabins in Maine. Respondent determined that Ps' loss from the cabins was a passi...

No Deductible Loss On Sale Of Residence: April 26, 2023 - Volume 17 Issue 79 Print Report; A taxpayer and his spouse conveyed their unencumbered personal residence to an unrelated individual in exchange for an annuity agreement that provided for payments of a specifi...

Aircraft Not "Situated" In California: April 26, 2023 - Bulletin Print Report; A7, a Delaware limited liability company,owned a GulfstreamG-550 jet aircraft. The aircraft was physicallypresent in Ventura County for seven and a half month...

An Interstate Compact Is Construed As A Contract: April 26, 2023 - Bulletin Print Report; In 1953, New York, ("NY"), and New Jersey, ("NJ"), entered into the Waterfront Commission Compact, (the "WCC"). In 2018, NJ sought to withdraw fro...

Debtor Not Engaged In The Business of Liquidating: April 25, 2023 - Volume 17 Issue 78 Print Report; BM's primary business was the transportation of medical specimen between doctors' offices and laboratories. On July 7, 2000, BM filed for Chapter 11 bankruptcy protecti...

Hospital Assessment Fee Not An Illegal Exaction: April 25, 2023 - Bulletin Print Report; The purpose of the program is "to levy an assessment fee on hospitals..." The program imposes a yearly assessment on non-exempt hospitals in an amount calculated as a...

Only Trade-In Consideration Reduces Sales Price: April 25, 2023 - Bulletin Print Report; On October 24, 2015, L purchased a new motor vehicle, ("vehicle 1"), from an automotive dealership for $36,590.00, and paid $3,155.89 in New York State sales tax on t...

Professor's Wages Not Sourced To Location Of Students: April 25, 2023 - Bulletin Print Report; State taxable income derived from Utah sources includes state taxable income attributable to or resulting from...the carrying on of a business, trade, profession, or occupation...

The Willens Deal Survey April 2023: April 24, 2023 - The Deal Survey: April 2023 Print Report; Welcome to this month's summary of deals. Full reports on some of these transactions can be found via the link in the description, or by searching the company name in our database.

Albertsons Will Treat "Spinco" As "Merger Consideration": April 24, 2023 - Bulletin Print Report; One of the longest-running sagas in recent deal history involves the union of Albertsons Companies, Inc., ("ACI"), and Kroger Co., ("KC"). In connection wit...

Structural Constitutional Challenges Belong In District Court: April 24, 2023 - Bulletin Print Report; The Securities Exchange Act and the FTC Act authorize the Commissions to address statutory violations either by bringing civil suits or by instituting their own administrative...

Property Tax Appeal Dismissed For Lack Of Subject Matter Jurisdiction: April 24, 2023 - Bulletin Print Report; On August 25, 2021, IXCfiled with the BOR a "Special COVID-19-Related Complaint Against the Valuation of Real Property" with regard to three separate parcels of...

Payment Is Made When A Check Is Delivered: April 24, 2023 - Bulletin Print Report; In February 1995, G incorporated R. In June 1995, he incorporated H, and H became R's parent. R paid $7.25 million for C, a nursing home, and for the leases to nine other n...

Employee Transfer Does Not Create Massachusetts Nexus: April 24, 2023 - Volume 17 Issue 77 Print Report; ADSW and ADNAC, ADSW's parent, were subsidiaries of Allied-Domecq, an international conglomerate headquartered in England. Included within the Allied-Domecq family is Dunki...

HBM Will Acquire CMMC In A Tax-Free Manner: April 21, 2023 - Bulletin Print Report; Hudbay Minerals, Inc., ("HBM"), and Copper Mountain Mining Corporation, ("CMMC"), each organized under the laws of Canada, have announced a business combina...

Transfer Of QRP To Estate Not A Disposition: April 21, 2023 - Volume 17 Issue 76 Print Report; SH owns 100 percent of the common stock of X. SH will sell qualified securities to an ESOP that is qualified under Sec. 401(a) and satisfies the requirements of Sec. 4975(e)(7)...

Membership Interest In LLC Treated As "Stock": April 21, 2023 - Bulletin Print Report; On March 13, 2003, LLC was formed as an Arizona limited liability company. Plaintiff, ("P"), was a member of LLC. LLC was taxed as an 'S' corporation...

Construction And Building Materials Are Exempt From Sales Tax: April 21, 2023 - Bulletin Print Report; Company is a retailer that sells grass seed, erosion control blankets, and fertilizer. On occasion, Company sells those products to construction contractors who present Company...

Charter's Equipment Was Used Directly In Manufacturing: April 20, 2023 - Bulletin Print Report; To provide telecommunications service to Charter, ("C") customers, CI's various pieces of equipment work together in a coordinated and synchronized fashion to tra...

Sec. 1042 Election Made By Decedent's Executor: April 20, 2023 - Volume 17 Issue 75 Print Report; On September 21, 1989, Decedent (D) sold 9,161 shares of Corporation A (CA) common stock to the ESOP maintained by CA. At the time of D's death on August 14, 1990, he had y...

Only Income From "Incidental" Investments Is Deductible: April 20, 2023 - Bulletin Print Report; The LLCs are investment funds, and they acquire investors through private offerings...known as a private placement. The LLCs invest in debt instruments like defaulted credit ca...

The Claim For Which Legal Fees Were Incurred Was Personal: April 20, 2023 - Bulletin Print Report; A was a physician, geneticist, and molecular biologist. A holds over 34 patents related to gene therapy. During A's years at the University of Southern California, his rese...

NWSA Settles Defamation Case: April 19, 2023 - Bulletin Print Report; As everyone now knows, Fox News has reached an agreement with Dominion Voting Systems resolving, via settlement, a lawsuit brought by Dominion in which Fox was accused of infli...

Buildings Were Not "Damaged" By COVID-19 Pandemic: April 19, 2023 - Bulletin Print Report; RSA 76:21, I, provides that local officials "shall prorate" a building's assessment "whenever a taxable building is damaged due to uninten...

Sale Of Undamaged Property Is An Involuntary Conversion: April 19, 2023 - Volume 17 Issue 74 Print Report; TP owned a four-family apartment building situated on a city lot at Location B in City A which was destroyed by fire. TP received insurance proceeds as compensation for the des...

Intangible Assets Immune From Direct Property Taxation: April 19, 2023 - Bulletin Print Report; Tax assessors sometimes appraise commercial property using the income method. Los Angeles County, (the "County"), incorrectly assessed a hotel owned by the taxpayer,...

GrubHub Is A Retailer's Agent: April 19, 2023 - Bulletin Print Report; Appellant operated a restaurant from June 1, 2011 through July 15, 2014. Appellant made in-person sales at the restaurant, and online sales via Eat24 and GrubHub. Appellant and...

Section 6038(b) Penalties Are Not "Assessable Penalties": April 18, 2023 - Bulletin Print Report; P owned 100 percent of KCI, a foreign corporation, and 100 percent of MVI, also a foreign corporation. P had a reporting obligation under section 6038(a) to report his ownershi...

Medical Equipment Retailer Denied "Government Body" Exemption: April 18, 2023 - Bulletin Print Report; The Illinois Retailers' Occupation Tax Act, ("ROTA"), imposes a tax upon persons engaged in this State in the business of selling tangible personal property to pu...

'S' Corporation Shareholder Claimed Correct Tax Reduction Credit: April 18, 2023 - Volume 17 Issue 73 Print Report; G is the sole shareholder of TLC and FGR, each an 'S' corporation. All of the corporations' operations are contained solely within a New York State "enterprise...

"Concession Fee" Is Not "Rental Income": April 18, 2023 - Bulletin Print Report; A and E operate car rental companies at the Minneapolis-St. Paul International Airport. A and E lease their facilities from the Metropolitan Airports Commission, (the "MAC...

Specially Designed Vehicles Not Subject To Excise Tax: April 17, 2023 - Bulletin Print Report; Almost half of the peanuts produced in the U.S. are harvested in Georgia. During the harvesting season, peanuts must be properly dried. The farmer loads the peanuts onto specia...

Single Sale Comminuted Into Multiple Sales: April 17, 2023 - Volume 17 Issue 72 Print Report; The taxpayer corporation was indebted to a shareholder. Four lots of stock owned by the corporation were transferred to the shareholder. On two lots there were gains; on the ot...

FDX Obtains A Credit For Taxes Paid On "Offset Earnings": April 17, 2023 - Bulletin Print Report; The Tax Cuts and Jobs Act, ("TCJA"), replaced the worldwide system of corporate taxation with a "territorial" system. When U.S. corporations receive dividen...

Sleep Center Performs Services In The "Field Of Health": April 17, 2023 - Bulletin Print Report; ASC's central function is to conduct sleep studies and produce reports on those studies. The reports are used by physicians...to make diagnoses, determine whether or not to...

Parent Inherits Liquidated Subsidiary's Business History: April 14, 2023 - Volume 17 Issue 71 Print Report; Dover Corporation, (D), owned DCF, a Delaware corporation. DCF owned DUK. DUK owned H&C, a U.K. corporation engaged in the business of installing and servicing elevators.&n...

Navigating The Constructive Ownership Rules: April 14, 2023 - Bulletin Print Report; While there are several "flavors" of constructive ownership (of stock) rules interspersed throughout the Internal RevenueCode, it is safe to say that those cont...

Residency Is A Use-Based Requirement: April 14, 2023 - Bulletin Print Report; The homestead tax exemption...says: "Every person who the legal or equitable title to real estate and maintains thereon the permanent residence of the owner...shall be exe...

Partner Entitled To Pass-Through Energy Credit: April 14, 2023 - Bulletin Print Report; A taxpayer that has constructed, purchased, or leased renewable energy property is eligible to receive a credit "if the property is placed in service in this State during...

Sale For Nonrecourse Note Not Given Tax Effect: April 13, 2023 - Volume 17 Issue 70 Print Report; In Year A, M owned "a" shares of 'S' corporation stock. In Month B of Year A, 'S' corporation announced that it planned to establish two trusts to whi...

Retirement Account Withdrawals Were Penalized: April 13, 2023 - Bulletin Print Report; In 2018, G submitted a withdrawal request for $71,147 to his retirement company, GW, which GW duly processed. GW issued a 2018 Form 1099-R to G, indicating a distribution of $7...

Full-Time Employees Were Not "Real Estate Professionals": April 13, 2023 - Bulletin Print Report; During 2018, PH was employed full time by Northrup Grumman Systems Corporation and PW was employed full time by the U.S. Department of Defense. In addition to their employment,...

OTCs Are Not "Operators" Of Lodging Establishments: April 13, 2023 - Bulletin Print Report; In Clark County, Nevada, a "combined transient lodging tax" is imposed with the sale or rental of "transient lodging" to any individual natural person who h...

GasLog Ltd. Intends To "Roll Up" GasLog Partners: April 12, 2023 - Bulletin Print Report; GasLog Ltd., ("GLL"), and GasLog Partners, ("GLP"), announced that they have entered into a definitive merger agreement pursuant to which GLL will acquire &...

NEM's "Best And Final Proposal" Looks Like A Winner: April 12, 2023 - Bulletin Print Report; Newmont Corporation, ("NEM"), submitted a revised proposal to the Board of Directors of Newcrest Mining Ltd., ("NCM"), that appears to be more in line with...

Minimum Annual Rent Is The CRT Tax Base: April 12, 2023 - Volume 17 Issue 69 Print Report; Petitioner (P) entered into a license agreement with the NYC Department of Parks and Recreation (Ps) on August 3, 2007 with respect to the operation and management of the indoo...

Data Processing Services Are Exempt From Sales Tax: April 12, 2023 - Bulletin Print Report; In 2009, the legislature expanded the list of transactions subject to retail sales tax to include...digital automated services. The definition of "digital automated servic...

Disproportionate Incorporation Recast: April 11, 2023 - Volume 17 Issue 68 Print Report; A owned all of the stock of X. A organized Y, paying $50x for all of the common stock, and caused X to purchase from Y all of Y's four percent noncumulative, nonvoting pref...

Design Costs Are Part Of Taxable Value For Use Tax Purposes: April 11, 2023 - Bulletin Print Report; Federal contractors are generally subject to paying use tax to Washington on the value of articles used in the process of a federal contract. A contracted with the Army in 2007...

Taxpayers Did Not Substantiate The Value Of Their Casualty Loss: April 11, 2023 - Bulletin Print Report; Under section 165 of the Code, a taxpayer can deduct non-business losses that "arise from...casualty..." The first requirement of casualty losses is that only physica...

Amortized Bond Premium Was Not Deductible: April 11, 2023 - Bulletin Print Report; New York adjusted gross income, ("AGI"), starts with a taxpayer's federal AGI and is increased and decreased by New York-specific modifications. Included among th...

Divorced Father Secures Dependency Exemption Deductions: April 10, 2023 - Volume 17 Issue 67 Print Report; Petitioner (P) married CLA in 2008. CLA had two children from previous relationships: BE was born in 2006, and HA was born in 2007. P, CLA,...

Washington's Capital Gains Tax Is Constitutional: April 10, 2023 - Bulletin Print Report; Taxation in Washington, ("W"), is unique. "We have no state personal or corporate income tax and instead generate revenue primarily through a combination of sale...

Taxpayer Must Repay Her "APTC" Payments: April 10, 2023 - Bulletin Print Report; On May 15, 2018, P enrolled in health insurance for herself and her two dependents. On the basis of the information P provided in her application, she received a monthly APTC o...

Liberty Media Goes With Counsel's Opinion For Braves Split-Off: April 6, 2023 - Bulletin Print Report; Liberty Media Corporation, ("LMC"), announced, uncharacteristically we might add, that it is proceeding with the split-off of Atlanta Braves Holdings, Inc.witho...

Could SJM Have Divested Its Pet Foods Business Tax Efficiently?: April 6, 2023 - Bulletin Print Report; On February 8, 2023, Post Holdings, Inc., ("PHI"), and PCB Sub, LLC, ("PCB"), a newly created, wholly-owned, indirect subsidiary of PHI, and a disregarded e...

Loss From Sale Of Metals Disallowed: April 6, 2023 - Volume 17 Issue 66 Print Report; Petitioner (P) issued a bona fide purchase order on July 12, 1950 for 200,000 pounds of mixed metal. The company shipped nine lots totaling 199,396 pounds in April and Septembe...

Household Income Exceeded Exemption Guidelines: April 6, 2023 - Bulletin Print Report; R filed an application requesting a poverty tax exemption for her residential real property. The Board denied R's application, finding that she did not meet the "Exemp...

Consent To Change Accounting Method Not Obtained: April 6, 2023 - Bulletin Print Report; "Base acres" are the right to receive farm program subsidies for the production of certain commodities from the USDA. These rights attach to the farm, not the farm ow...

Relinquishment Of Anticipated Income Does Not Give Rise To Loss: April 5, 2023 - Volume 17 Issue 65 Print Report; The taxpayer was 47 years of age in 1967 when her husband died at age 49 while in his 28th year of employment with the Federal Government. Upon her husband's death, the tax...

Landlord Exemption Not Substantially Similar To Homestead Exemption: April 5, 2023 - Bulletin Print Report; P has lived in his LC home since 1990. P's wife, DS, owned two rental properties in Utah. Neither P nor DS ever resided at the Utah properties. DS rented the properties to...

Verano Holdings Corporation Will Undertake A "Recapitalization": April 5, 2023 - Bulletin Print Report; VeranoHoldings Corporation, ("VRNO"),a Canadian corporation whose stock is tradedon the Canadian Securities Exchange and is quoted for trading in th...

EXR Will Pursue A Tax-Free Acquisition Of LSI: April 4, 2023 - Bulletin Print Report; Extra Space Storage, Inc., ("EXR"), and Life Storage, Inc., ("LSI"), announced that the two corporations, each a real estate investment trust, ("REIT&q...

Retained Rights Prevents Sale Or Exchange: April 4, 2023 - Volume 17 Issue 64 Print Report; During the early part of 1946, petitioner became interested in forming a corporation. The corporation was incorporated on June 24, 1946, under the name TWI, and thereafter enga...

Wholesaler-To-Wholesaler Transactions Are Exempt From Business Tax: April 4, 2023 - Bulletin Print Report; E discovers, develops, manufactures, markets, and sells pharmaceutical products in the United States. E does not maintain a place of business in Tennessee, ("T"). The...

Taxpayer Was Not A "Speculative Builder": April 4, 2023 - Bulletin Print Report; In 2003, D purchased property in Spokane, Washington. In 2004, D quitclaimed the property to SU. D is SU's sole member. D and SU entered into a "purchase and sale agre...

"Involuntary" User Fee Was Not A Tax: April 4, 2023 - Bulletin Print Report; P is a non-profit residential real estate association consisting of individual members who each owned real property required to connect to public sewers. Defendant amended sect...

EDR And WWE Will Join Forces To Become "TKO": April 3, 2023 - Bulletin Print Report; Endeavor Group Holdings, Inc., ("EDR"), and World Wrestling Entertainment, Inc., ("WWE"), founded by the legendary Vince McMahon, today announced what, in r...

Part-Year Resident Tax Calculation Is Constitutional: April 3, 2023 - Volume 17 Issue 63 Print Report; In April 2000, petitioners moved from California to New York. They filed a New York income tax return for 2000 as part-year residents, but reported only a portion of petitioner...

Arm's-Length Sale Is The Best Evidence Of Value: April 3, 2023 - Bulletin Print Report; Petitioner, ("P"), is the owner of a parcel of land, (the "subject premises"), in the Town of Glenville,containing a 10,000 square foot office buildin...

Lack Of Return Of Foreclosure Mailing Not Decisive: April 3, 2023 - Bulletin Print Report; In May 2018, defendant Saratoga County, (the "County"),commenced a foreclosure proceeding against the property at issue. In December 2018, a default judgment in...

Altria Group, Inc. Can Now Monetize Its Stake In ABI Tax-Efficiently: April 2, 2023 - GGGHHHIIIJJJ Print Report; Now that AltriaGroup, Inc., ("MO"), has "sustained" its heretofore "paper"loss in JUULLabs, Inc., ("JUUL"), through th...

New Jersey Does Not Tax "Phantom" Income: March 31, 2023 - Bulletin Print Report; M invested $1.1 million in H, a limited liability company. H held a patent for an energy drink bottle. H was not a success and annual losses reduced M's capital account fro...

Determining Basis Of Stock Received In Contingent Stock Reorganization: March 31, 2023 - Volume 17 Issue 62 Print Report; X is a domestic corporation engaged in the manufacture and sale of consumer products. The stock of X is listed on the New York Stock Exchange. Y is a domestic corporation engag...

Uber Driver Did Not Maintain "Adequate Records": March 31, 2023 - Bulletin Print Report; O earned money carrying passengers using software from the ride-hailing company Uber. He used his vehicle for both business and personal purposes. O did not keep records of his...

Retired Couple's Social Security Benefits Were Largely Taxable: March 31, 2023 - Bulletin Print Report; Petitioners, ("Ps"), were retired in 2019. They received during that year investment income, Social Security benefits, and retirement benefits. Ps reported on Schedul...

Asset Not Acquired Or Passed From A Decedent: March 30, 2023 - Bulletin Print Report; In Year 1, A, an individual, established irrevocable trust, "T," and funded T with "Asset" in a transfer that was a completed gift for gift tax purposes. A...

Sec. 1033 Applies To Sales Of "Downed" Timber: March 30, 2023 - Volume 17 Issue 61 Print Report; In Rev. Rul. 72-372, 1972-2 C.B. 471, the taxpayer was the owner of timberland. As a result of a hurricane, a considerable number of trees were uprooted. The timber was not ins...

On Whom Does The "Incidence" Of Tax Fall?: March 30, 2023 - Bulletin Print Report; The excise at issue was imposed on a vehicle leased by APP. APP was an active-duty Marine...who temporarily resided in B due to his duty assignment at Fort Devens.APP lea...

"Income Earned" In Another State: March 30, 2023 - Bulletin Print Report; TP is a Louisiana, ("LA"), resident. For 2020, TP sold property in Arkansas, ("AK"), which resulted in long-term capital gain of $120,591. AK calculates the...

Sale And Exchange Properly Segregated: March 29, 2023 - Volume 17 Issue 60 Print Report; By contract between M, an individual, and the JC, a corporation, it was provided that M should sell 1,026 shares of his stock of 2C for $65 per share, but should retain the bal...

Nominal Claims For Refund Are Not "Duly Filed": March 29, 2023 - Bulletin Print Report; A taxpayer may not sue the government for a refund of an overpayment unless the taxpayer has "duly filed" a claim with the I.R.S. A claim that is untimely filed pursu...

Claims Were Not Personal Obligations Of Decedent: March 29, 2023 - Bulletin Print Report; Decedent, ("D"), died April 27, 2015. D had two children, MM and CMD. On August 7, 2003, D and his then business partner formed NH. In 2007, NH borrowed approximately...

"In-House" Leveraged Spin-Off Accomplished: March 29, 2023 - Bulletin Print Report; Parent, ("P"), and Distributing, ("D"), are members of an affiliated group of corporations that join in the filing of a consolidated U.S. federal income tax...

Partnership Interest Not Involuntarily Converted: March 28, 2023 - Volume 17 Issue 59 Print Report; TPs became limited partners in XPS in 1983 by contributing "$k." The XPS activities include investing in commercial real estate. During 1988, the General Partners ent...

IBM Cannot Deduct Royalty Payments From Foreign Affiliates: March 28, 2023 - Bulletin Print Report; Petitioner, the legal owner of certain intangible property including the International Business Machines, ("IBM"), brand, is organized under the laws of New York. Dur...

No Vested Right To Higher Rate On Tax Refunds Found: March 28, 2023 - Bulletin Print Report; BFRA section 16 provides: "...notwithstanding any other provision of law, the Comptroller shall set the annual interest rate for an income tax refund that is the result of...

Incorporation Accelerates Sec. 481 Adjustment: March 27, 2023 - Volume 17 Issue 58 Print Report; PRS commenced business in 1965 and established two separate businesses, a P business (PB) and a T business (TB). PRS applied for and received permission to change its method of...

Cost Of Food Is Not A Medical Expense: March 27, 2023 - Bulletin Print Report; TP purchased Product for TP's infant, who, at the time,was five months old and qualified as TP's dependent. Product is neither medicine nor a drug, but rather foo...

Transfer Of Real Estate To An LLC Was A Change In Ownership: March 27, 2023 - Bulletin Print Report; In 2000, the As purchased, as tenants by the entireties, a non-homestead property in Miami, (the "Subject Property"). In 2015, the As established TP, a for-profit Flo...

Remote Employee Conducted Business In Alabama: March 27, 2023 - Bulletin Print Report; During 2020, Taxpayer, ("TP"), worked for BBVA. He was renting an apartment in Alabama. During the pandemic, his job was changed to a remote job, and he was able to w...

Raytheon Company Denied Preferential Tax Rate: March 24, 2023 - Bulletin Print Report; Petitioner, ("P"), is the parent company of an affiliated group of entities. P and its affiliates, (the "R combined group"), filed combined reports... Durin...

Diversification Achieved In A "Permissible" Manner: March 24, 2023 - Volume 17 Issue 57 Print Report; A, B, Trust 1 (T1), and Trust 2 (T2) propose to form a limited partnership, P. A, B, T1, and T2 will each contribute to P shares of X common stock, stock that is traded on the...

Sales Proceeds Excluded From Receipts Factor: March 24, 2023 - Bulletin Print Report; Company is a limited partnership that files federal form 1065 and Colorado form DR 0106 partnership returns. Company is a real estate rental company. Company has always reporte...

Collection Of Sales Tax Is Not The Conduct Of "Trade" Or "Commerce": March 24, 2023 - Bulletin Print Report; G filed this class action under the Unfair Trade Practices and Consumer Protection Law, ("UTPCPL"), alleging that APPs engaged in unfair trade practices by charging s...

The Willens Deal Survey March 2023: March 23, 2023 - The Deal Survey: March 2023 Print Report; Welcome to this month's summary of deals. Full reports on some of these transactions can be found via the link in the description, or by searching the company name in our database.

Returned Surplus Not An Employer Reversion: March 23, 2023 - Volume 17 Issue 56 Print Report; On Date 1, Company (C) purchased certain assets and assumed certain liabilities from the Prior Company. In connection with this transaction, assets and liabilities of...

The Homestead Exemption Applies To Section 724(b) Of The B.C.: March 23, 2023 - Bulletin Print Report; In 2011, the Debtor and her husband bought their residence. The Debtor filed a voluntary petition seeking relief under Chapter 7 of the U.S. Bankruptcy Code. In her petition, t...

Date Of Delivery Of Deed Is Controlling: March 23, 2023 - Bulletin Print Report; I purchased the property for use as a church through a deed dated June 29, 2018, that was recorded in the county land records on September 18, 2018. On Augus...

AMC Seeks To Convert Its "APEs" Into Common Stock: March 22, 2023 - Bulletin Print Report; AMC Entertainment Holdings, Inc., ("AMC"), plans to convenea special meeting of its stockholders at which certain proposed amendments to the company's Certi...

Partner Cannot Make Sec. 1033 Deferral Election: March 22, 2023 - Volume 17 Issue 55 Print Report; In 1960, the taxpayer, a medical doctor, formed a partnership in State M with two other medical doctors for the purpose of owning and managing a medical building. The taxpayer...

Estate Did Not Effect A Qualified Reformation Of A "CRAT": March 22, 2023 - Bulletin Print Report; On September 2, 1997, B settled the Trust. On September 17, 2015, she executed a will that provided for the transfer of her residuary estate to the Trust. Upon B's death, t...

Merged Corporation Lacked Capacity To Petition Tax Court: March 22, 2023 - Bulletin Print Report; P was a 'C' corporation. P was the parent of an affiliated group of corporations which included T. T was a 'C' corporation. On January 5, 2001, P merged, downst...

Holding Company And Operating Subsidiary Were "Unitary": March 21, 2023 - Bulletin Print Report; Appellant, ("APP"),an individual, was a California non-resident. APP owned an indirect membership interest in Holdco, ("H"), which was classified as a...

Waiving Attribution In Order To Qualify Under Sec. 302(b)(3): March 21, 2023 - Volume 17 Issue 54 Print Report; A corporation (C) was owned by a father (F)and his three sons (S1, S2, and S3). F is a director, employee, and the President of C. S1 is a director, a former em...

Statute Of Limitations Never Began To Run: March 21, 2023 - Bulletin Print Report; S was a partnership. S claimed a loss of $35.5 million arising from a tax-shelter transaction on its 2001 return. A partnership's return "shall be filed...at such time...

Netflix Was Not A "Franchise Holder": March 21, 2023 - Bulletin Print Report; In 2007, the Georgia General Assembly passed the "TV Act." The Appellants argue that the trial court erred in concluding that the TV Act does not provide them with a...

UBS To Acquire Credit Suisse: March 20, 2023 - Bulletin Print Report; Whether voluntarily or not, the die is now cast. UBS is acquiring itsbeleaguered rival, Credit Suisse, in a transaction apparently brokered by the Swiss banking authoriti...

SIVB Files A Chapter 11 Petition: March 20, 2023 - Bulletin Print Report; SVB Financial Group, ("SIVB"), announced it has filed a voluntary petition "for a court supervised reorganization under Chapter 11 in the United States Bankruptc...

Defining Control: March 20, 2023 - Volume 17 Issue 53 Print Report; Certain persons transferred property to a corporation in exchange for a combination of voting and nonvoting stock, i.e., 83 percent of the Class A voting common stock, 83 perce...

StubHub "Sold At Retail" Admissions To Events: March 20, 2023 - Bulletin Print Report; StubHub, Inc., ("S"), operates an online marketplace where tickets to sporting events, concerts, theater and other live entertainment services were bought and sold. T...

RSUs And Options Are Not Counted For Section 355(a)(1)(D) Purposes: March 20, 2023 - Bulletin Print Report; D is the parent of a worldwide group, (the "D Group"). D has shares of common stock and convertible preferred stock outstanding. D also has RSUs, stock options, and r...

Massachusetts Tax Exemption Encompasses Capital Gains: March 17, 2023 - Bulletin Print Report; G.L.c. 121A provides a tax exemption as an incentive for private entities to invest in urban redevelopment projects. The tax concession provides that these private entities are...

Distributions Not "Annual Additions": March 17, 2023 - Volume 17 Issue 52 Print Report; TP elected to be treated as an 'S' corporation effective as of June 1, 1989. Effective as of January 1, 1994, TP established the Plan, an ESOP, as defined in Sec. 4975(...

Fraudster Fails Section 1341's Second Prong: March 17, 2023 - Bulletin Print Report; G was a psychiatrist in Texas between 2007 and 2014. In October 2014, he was indicted on fifty-two counts of health care fraud for submitting false claims for reimbursement to...

Failure To Provide Resale Certificate Proves Decisive: March 17, 2023 - Bulletin Print Report; Retail vendors in the District of Columbia, ("DC"), are generally required to pay a sales tax in connection with sales of tangible personal property. See D.C. Code se...

Persistent Losses Render Section 183(a) Applicable: March 16, 2023 - Bulletin Print Report; During the years at issue, S and F owned the Company, a horse farm in New Jersey. The taxpayers lost more than $3.5 million during the years at issue, 2010-2013.The Tax C...

Sec. 167(c)(2) Does Not Prevent Lease Termination Deductions: March 16, 2023 - Volume 17 Issue 51 Print Report; ABC is a Michigan corporation that makes and distributes non-alcoholic beverages. ABC acquired a company that held a long-term lease on a bottling plant. ABC concluded that the...

QTIP Trust Property Is Included In The Gross Estate: March 16, 2023 - Bulletin Print Report; Decedent's husband's will instructed the trustees of the SK Trust to pay the trust's net income to decedent at least quarterly during her lifetime and authorized th...

Goodwill Industries' Thrift Store Is Exempt From Property Taxation: March 16, 2023 - Bulletin Print Report; The subject property is owned by GW, of which the sole member is Goodwill Industries, Inc., ("G"). G is a non-profit corporation and is exempt from federal taxes unde...

Anti-Dilution Adjustments In Connection With Spin-Offs Are Benign: March 15, 2023 - Bulletin Print Report; Where a corporation which has stock purchase warrants outstanding engages in a tax-free spin-off, it is generally the case that the terms of the warrants will be adjusted in or...

Acquisition Found To Be A "QSP": March 15, 2023 - Volume 17 Issue 50 Print Report; P is a state chartered banking corporation. It has outstanding 75,000 shares of common stock held by approximately 300 shareholders. T is a corporation formed to purchase a par...

Momentary Ownership Overlooked For 'S' Corporation Election Purposes: March 15, 2023 - Bulletin Print Report; D corporation, ("D"),was formed on Date 1. On Date 2, D elected to be treated as an 'S' corporation. D is engaged in Business X and Business Y, which is...

Devisee Had A Legal Interest In Property: March 15, 2023 - Bulletin Print Report; The real property at issue was owned by BH, who died on December 13, 2019. BH's will devised her real and personal property to L. At some point before BH's death, the p...

What Will Become Of SVB's NOLs?: March 14, 2023 - Bulletin Print Report; SVB Financial Group, the parent of Silicon Valley Bank, had, surprisingly, approximately $6.4 billion of net operating loss carryovers as of the close of its most recent taxabl...

Banking Difficulties Shine A Spotlight On Accounting For Debt Securities: March 14, 2023 - Bulletin Print Report; The Federal Reserve's efforts to increase interest rates, with a view towards taming inflation, has caused problems for certain financial institutions whose asset/liability...

Unamortized Loan Costs: March 14, 2023 - Volume 17 Issue 49 Print Report; Mr. A died in 1983. During his lifetime, he hadpurchased a number of single-family homes, townhouses, and condominiums that he leased to others. ...

Related Party License Arrangement Did Not Have Economic Substance: March 14, 2023 - Bulletin Print Report; Skechers USA, Inc., ("S") is a company headquartered in California. S sells footwear. In 1999, S formed SKII, a Delaware corporation, as a wholly-owned subsidiary. Th...

Water Rights Are Real Property And Like Kind To Fee Interest in Realty: March 14, 2023 - Bulletin Print Report; In Year 1, F began Ranch, ("R"), and was the original licensee of a License for the diversion and use of water issued by State A. Ranch Owners are the successors in i...

Abandoned Property "Escheats" To The State Of Purchase: March 13, 2023 - Bulletin Print Report; "Escheatment" is the power of a State...to take custody of property deemed abandoned. These cases require us to decide which States have the power to escheat the proc...

80 Percent of the "Voting Power": March 13, 2023 - Volume 17 Issue 48 Print Report; At the beginning of 1984, when Alumax, Inc. (AL)was owned 50 percent by Amax (A) and 50 percent by "Japanese interests" (J), AL undertook a restructur...

Gain On Sale Of Partnership Interests Classified As Ordinary Income: March 13, 2023 - Bulletin Print Report; TP engaged in the promotion and sale of interests in LLCs. The only asset held by the LLCs was land. Each of the LLCs engaged in transactions involving the donation of an easem...

Claims Court Lacked Jurisdiction To Consider A Tax Refund Suit: March 13, 2023 - Bulletin Print Report; A FICA tax is "imposed on the income of every individual." Wages under a non-qualified deferred compensation plan are subject to a special timing rule. The FICA tax o...

No Substantial Reduction In Activities Performed: March 10, 2023 - Volume 17 Issue 47 Print Report; X corporation, (X), owned two parcels of real property (parcel A and parcel B), each consisting of land and a building erected thereon. X has one class of stock outst...

Social Club's Property Is Exempt From Taxation: March 10, 2023 - Bulletin Print Report; The Italian-American Brotherhood Club, ("IAB"), is a tax-exempt non-profit corporation under section 501(c)(3) of the Code. It applied for property tax exemption. The...

The Shared Responsibility Payment Is "Measured By Income": March 10, 2023 - Bulletin Print Report; Under the Bankruptcy Code, certain categories of claims have priority, including (1) excise taxes on transactions, and (ii) taxes on or measured by income. Debtors, ("Ds&#...

Appraised Value Not Used For Insolvency Purposes: March 10, 2023 - Bulletin Print Report; The question is whether the Taxpayers were, in fact, insolvent. The resolution of that dispute hinges on the fair market value (at the time of the debt cancelation) of certain...

AbbVie's "Inversion" With Shire plc Is Still Causing Problems: March 9, 2023 - Bulletin Print Report; One of the most notorious transactions of the "inversion era" was one that was not seen to completion, the inversion of AbbVie, Inc., in which Shire plcwas to s...

ENGH's Stock Will Be Redeemed: March 9, 2023 - Bulletin Print Report; Vistra Corporation, ("VST"), announced that it has executed a definitive agreement with Energy Harbor Corporation, ("ENGH"), pursuant to which ENGH will mer...

"Excessive" Payments Included in Gross Income: March 9, 2023 - Volume 17 Issue 46 Print Report; Sec. 1603 of the American Recovery and Reinvestment Act, (ARRA), appropriated funds for paymentsto applicants who placed specified energy property in service du...

Lessor's Reimbursed Costs Are Subject To Sales Tax: March 9, 2023 - Bulletin Print Report; Wisconsin, ("W"), imposes a five percent sales tax on the sale or lease of tangible personal property, ("TPP"), including aircraft, as well as on select&nbs...

Retailer Denied Refund Of Excess Sales Tax Reimbursements: March 9, 2023 - Bulletin Print Report; Appellant, ("APP"), a California corporation, operates a facility in South El Monte, California, where APP designs and manufactures fluid control and filtration produ...

Digital Assets Belong To The Bankruptcy Estate: March 8, 2023 - Bulletin Print Report; Who owns the cryptocurrency, ("CC"), assets deposited in Earn Accounts by Celsius's account holders before the July 15, 2022 petition date, (the "Petition Da...

"Disproportionate" Split-Off Recast: March 8, 2023 - Volume 17 Issue 45 Print Report; P owns all of the stock of S. For valid business reasons, P distributed all of the stock of S to one of its shareholders, Mr. A (A), in exchange for all of the shares of P owne...

PBM Services Are Functionally Related To Insurance: March 8, 2023 - Bulletin Print Report; During the 2012 to 2015 tax period at issue in this appeal, the insurance business exemption provided: "This chapter shall not apply to any person in respect to 'insur...

The "TUF" Was Not A Tax: March 8, 2023 - Bulletin Print Report; The City established a Transportation Utility Fee, ("TUF"). Property owners would be charged a monthly fee based on their "intensity of use" of the city str...

Sale Does Not Reduce Possessions Corporation Credit: March 7, 2023 - Volume 17 Issue 44 Print Report; Between 1976 and 1996, Congress encouraged U.S. corporations to invest in Puerto Rico (PR) by establishing a possessions corporation system of taxation. A special credit availa...

Daily Rate Worker Not Paid On A "Salary Basis": March 7, 2023 - Bulletin Print Report; The Fair Labor Standards Act, (the "FLSA"), exempts certain categories of workers from its protections, including the overtime-pay guarantee. When an employee is a &q...

Car-Racing Expenses Were Not Deductible: March 7, 2023 - Bulletin Print Report; Petitioner, ("P"), became licensed to practice law in 1982. In 2003, he moved to Indiana and became licensed to practice law there. In 2010, he moved back to Colorado...

Non-Operating Interest Owners Lacked Standing: March 7, 2023 - Bulletin Print Report; Kinder Morgan, ("KM"), is a 44 percent fractional interest owner in the MU, (the "unit").The members of CO2 are non-operating working interest owners...

MO Will "Crystallize" The Capital Loss In Its JUUL Stake: March 6, 2023 - Bulletin Print Report; Altria Group, Inc., ("MO"), has, to say the least, experienced bitter disappointment from its once-heralded investment in JUUL Labs, Inc. ("JLI"). From all...

Sec. 1033 Election Must Be Made By Partnership: March 6, 2023 - Volume 17 Issue 43 Print Report; A and M each owned 50 percent of the stock of KBRC, which had acquired title to an office building in Newark, NJ in October 1944. On November 3, 1960, the corporation was disso...

Selling Costs Not Governed By The "Indopco" Regulations: March 6, 2023 - Bulletin Print Report; P is a domestic 'C' corporation. TP is a wholly owned domestic subsidiary of P. S is a domestic limited partnership. S is a closed private equity investment fund. On Da...

Notice Of Deficiency Was Timely Issued: March 6, 2023 - Bulletin Print Report; MRS is listed as the beneficial owner of XE. XE held a single asset, a UBS account ending in 0857. UBS records reflect that MRS is the beneficial owner of UBS account 0857. NPB...

"Odd Lot" Shareholders Do Not Receive Constructive Dividend: March 3, 2023 - Volume 17 Issue 42 Print Report; Approximately 1/3 of the shareholders of Company, (C), ownfewer than 100 shares. More than 1/2 of these shareholders own less than 26 shares. C incurs substanti...

Court Embraces Destination-Based Sourcing For Services: March 3, 2023 - Bulletin Print Report; The question requires our interpretation of a provision of the Tax Reform Code of 1971 allocating a corporation's sales of services between Pennsylvania and other states fo...

Debt For Money "Obtained By Fraud" Not Dischargeable: March 3, 2023 - Bulletin Print Report; In 2005, K and D, (the "Bs"), jointly purchased a house in San Francisco, California. Acting as business partners, the pair decided to remodel the house and sell it a...

Securing “Exchange” Treatment In A Brother-Sister Redemption: March 2, 2023 - Bulletin Print Report; A sale or exchange of stock gives...

Sec. 1042 Applied To Sale By Partnership: March 2, 2023 - Volume 17 Issue 41 Print Report; TP acquired 666,363 shares of C stock in 1995 as a result of a reorganization. C is the sponsor of an ESOP. On April 30, 1997, the ESOP purchased 309,478 shares of C from TP. A...

Local Sales Tax Precluded Revenue Sharing: March 2, 2023 - Bulletin Print Report; Before 2019, section 39-22-623(1)(a)(II)(A), C.R.S. 2022, provided that to receive shares of state income tax revenue from cigarette sales, local governments were "prohibi...

A Life Estate Is Not A "Fee Simple Estate": March 2, 2023 - Bulletin Print Report; Petitioners, ("Ps"), filed an application to place their property in the State Property Tax Deferral Program, (the "Program"). Maine Revenue Services, (&quo...

Penalties For Non-Willful "FBAR" Violations Are Accrued Per Report: March 1, 2023 - Bulletin Print Report; The Bank Secrecy Act, ("BSA"), requires those who possess foreign accounts with an aggregate balance of more than $10,000 to file an annual report on a form known as...

ROCC Shareholders Will Be Taxed On BTE's Equity: March 1, 2023 - Bulletin Print Report; Baytex Energy Corporation, ("BTE"), a Canadian corporation, announced that it has entered into a definitive agreement to acquire Ranger Oil Corporation, ("ROCC&q...

Taxpayer Did Not Effect A "Deferred Exchange": March 1, 2023 - Volume 17 Issue 40 Print Report; On April 21, 1995, while married to his first wife, Petitioner (P) purchased property A (PA) for $488,000. P and his first wife were later divorced, and on February 4...

Contractor Qualified For "Mill Machinery Exemption": March 1, 2023 - Bulletin Print Report; F used approximately 80 percent of the hot mix asphalt, ("HMA") it produced at its facilities for various construction projects upon which it served as a contractor o...

Merger Recharacterized As A 'B' Reorganization: February 28, 2023 - Volume 17 Issue 39 Print Report; P and Y are each publicly owned corporations. P wanted to acquire "the business" of Y but could do so "with an effective result" only if the corpo...

Seller/Buyer Non-Compete Clauses Survive The FTC's Purge: February 28, 2023 - Bulletin Print Report; The Federal Trade Commission, (the "FTC"), in its never-ending quest to remove real and perceivedobstacles to competition, hasnow focused its attention on...

Widow Was A "Person Aggrieved": February 28, 2023 - Bulletin Print Report; P and her husband, G, purchased the subject property as tenants-by-the-entirety in 1976. G died in December 2020, leaving P as the sole owner. In 2021, P received a notice of a...

Commissions Paid To DISC Are For Partner Services: February 28, 2023 - Bulletin Print Report; P is an architectural, urban planning, and engineering firm. It was a New York limited liability partnership. SD was formed on June 28, 2004. As an entity subject to subchapter...

I.R.S. Could Not Rely On Form 1099: February 27, 2023 - Bulletin Print Report; In 2017, the SSA reported on Form SSA-1099 that T was awarded disability benefits totaling a gross amount of $17,164. However, the SSA reduced this gross amount by a total of $...

Legal Use Of Property Controls For RPTT Purposes: February 27, 2023 - Bulletin Print Report; The Property is located in Staten Island. The Property consists of two buildings, each a semi-detached two-family house. The Property was used as two separate two-family dwelli...

Media Company Taxed As If It Were The Owner Of Signs: February 27, 2023 - Bulletin Print Report; On January 1, 2020, the Massachusetts Bay Transportation Authority, ("MBTA"), was the owner of 14 Signs located in Boston. The appellee assessed O on the Signs. O pai...

Gain From Sale Of Real Estate Not UBTI: February 27, 2023 - Volume 17 Issue 38 Print Report; Y is exempt from tax under Sec. 501(c)(3) of the Code. The M property (MP) is a 7.6 acre piece of land which has been developed by its various lessees. Y has been a p...

Aviation Fuel Not Consumed Solely Outside Of Illinois: February 24, 2023 - Bulletin Print Report; Petitioner, ("P"), contracted, purchased and arranged for the shipment and delivery of aviation fuel into Illinois from various suppliers and resold that fuel to Amer...

Court Allocates Burden Of Withholding Tax: February 24, 2023 - Volume 17 Issue 37 Print Report; PTI is a Taiwan-based manufacturer of semiconductors. PTI filed the underlying claim against T in December 2011, alleging claims breach of contract and fraud arising...

ATVs Eligible For Partial Sales Tax Exemption: February 24, 2023 - Bulletin Print Report; J is in the business of selling ATVs and UTVs. J collected and remitted sales tax up to $300 on the retail purchase price of each ATV and UTV because J considered them to be &q...

"Holds" Substantially All Of Its Properties: February 23, 2023 - Volume 17 Issue 36 Print Report; P is a manufacturing corporation organized under the laws of State A. T is also a manufacturing corporation organized under the laws of State A. P organizes S as a wholly owned...

TECK Proposes A Taxable Spin-Off: February 23, 2023 - Bulletin Print Report; Where a foreign corporation engages in what we would identify as a "spin-off," it is rarely the case that such spin-off is carried out in a manner that would render i...

Section 6621(d) Provides A Temporal Limitation For Interest Netting: February 23, 2023 - Bulletin Print Report; Under section 6621(d) of the Code, when "underpayments and overpayments by the same taxpayer offset each other, no interest is due." In Case 1, B's un...

Tax Treaty Is Relevant To Determination Of FBAR Filing Requirement: February 23, 2023 - Bulletin Print Report; The I.R.S. audited plaintiffs' tax filings for the 2011 through 2015 tax years. The led to FBAR penalties which were assessed only for tax years 2012 and 2013. Anyone who q...

The Willens Deal Survey February 2023: February 22, 2023 - The Deal Survey: February 2023 Print Report; Welcome to this month's summary of deals. Full reports on some of these transactions can be found via the link in the description, or by searching the company name in our database.

Taxpayer Must Capitalize "Indirect" Inventory Costs: February 22, 2023 - Volume 17 Issue 35 Print Report; TP is primarily in the business of purchasing grain from farmers and producers and reselling the grain to large grain terminals and processors. The CBOT provides an o...

iCloud Subscriptions Not Subject To Sales Tax: February 22, 2023 - Bulletin Print Report; Petitioner, ("P"), offered a remote personal electronic storage capacity service called "iCloud," ("IC"). IC allows a user to upload their persona...

Canadian Plan Of Arrangement Appears To Be Tax-Efficient: February 22, 2023 - Bulletin Print Report; B2Gold, ("B"), and Sabina Gold & Silver Corporation, ("S"), each a Canadian corporation, announced that the parties have entered into a definitive agree...

Salary Continuation Benefits Not Excluded From California Income: February 22, 2023 - Bulletin Print Report; W worked for AmgenUSA, Inc. during the 2014 tax year. W did not contribute to State Disability Insurance, ("SDI"), during the 2014 tax year because her employer...

Costs Attributable To Abandoned "Alternatives" Not Deductible: February 21, 2023 - Volume 17 Issue 34 Print Report; The taxpayer is primarily engaged in the business of Business A to consumers and small businesses. Prior to Year 3, the taxpayer also operated two businesses that provided Busi...

Insurance Companies Cannot File Combined Returns: February 21, 2023 - Bulletin Print Report; This case involves the calculation of tax under the Income Tax Act of 1967, MCL 206.1 et seq. Petitioners, ("Ps"), argue that under MCL206.61...

Installation Of Repair Parts Subject To Use Tax: February 21, 2023 - Bulletin Print Report; APP, a New York corporation, is a distributor, retailer, and repairer of medical devices. APP offered optional lump-sum maintenance contracts with the sale of its products and...

"MSGE Spinco" Will Be Capitalized With Two Classes Of Stock: February 17, 2023 - Bulletin Print Report; We now have the details (with the public filing of the Form 10) regarding the eagerly anticipated spin-off by Madison Square Garden Entertainment Corporation of a portion,...

"Renting" Or "Leasing" Connotes Possession And Use: February 17, 2023 - Bulletin Print Report; W is the owner of property located in Grand Rapids, Michigan, (the "property"). She purchased the property in 2006 and, since 2007, after converting the property from...

Parent Cancels Subsidiary's Indebtedness: February 17, 2023 - Volume 17 Issue 33 Print Report; P is the parent of an affiliated group of corporations that file their Federal income tax return on a consolidated basis. P's stock is publicly held. Sub 1 and Sub 2 are ea...

Abatement Of Interest On Deficiency Denied: February 17, 2023 - Bulletin Print Report; In 2014 and 2015, plaintiffs reached agreement with the I.R.S. regarding their federal tax liability, and the I.R.S. issued final federal determinations for the Years at Issue....

Walmart Subsidiary Achieves An Abatement Of Use Tax: February 17, 2023 - Bulletin Print Report; WS is a Delaware limited liability company. The Director assessed Missouri use tax against WS. WS was a subsidiary of ELP. ELP, in turn,was a subsidiary of Wal-Mart Store...

Shared Appreciation Mortgages: February 16, 2023 - Volume 17 Issue 32 Print Report; In Rev. Rul. 83-51, 1983-1 C.B. 48, in each of three situations, an individual purchased a home in 1981 and used it as his principal residence. In connection with the...

"LTIP" Payment Was Not A Signing Bonus: February 16, 2023 - Bulletin Print Report; In 2011, APP resided in New York and Florida. At this time, APP was employed by JPM. K offered APP the position of Chief Risk Officer in Oakland, California. The Employment Agr...

Section 751 Deems A Sale Of Inventory Items: February 16, 2023 - Bulletin Print Report; R was a non-resident alien individual during 2008 and 2009. IV manufactures and sells 5-hour Energy drinks. IV was treated as a partnership for federal income tax purposes. Bet...

Personal Goodwill Not Distributed By Corporation: February 15, 2023 - Volume 17 Issue 31 Print Report; On April 19, 1982, B organized BT. B owned 100 percent of BT. B did not have an employment contract with BT; and he never signed a noncompete agreement. None of BT's employ...

Will NEM's All-Stock Offer Be Taxable?: February 15, 2023 - Bulletin Print Report; Where the "merger consideration" in a proposed transaction consists exclusively of the acquirer's stock, it generally follows that the shareholders of the acquire...

Parking Easement Is A Present Interest In Real Estate: February 15, 2023 - Bulletin Print Report; The condominium consists of a nine-story, thirty-seven unit residential building with fifty-four parking spaces. M paid the developer of the condominium $33,000 for a "per...

Is FIS's Spin-Off Dependent On Satisfying The "Expansion Doctrine?": February 14, 2023 - Bulletin Print Report; In 2019, Fidelity National Information Services, Inc. ("FIS"), and Worldpay, Inc., ("WP"), engaged in a business combination in which the former acquired al...

Kentucky Law Discriminates Against Interstate Commerce: February 14, 2023 - Bulletin Print Report; The PSC, (the "Commission"),regulates utilities in Kentucky, ("K"). K utilities are encouraged to buy cheaper coal. Compared to states with no severan...

Taxpayer Successfully Established New Domicile: February 14, 2023 - Volume 17 Issue 30 Print Report; The issue is whether TP was domiciled in Alabama in 2007 and thus subject to Alabama income tax in that year. TP was born and raised in Alabama. She moved to New York...

Full Refund Of EZ-ITC Permitted: February 14, 2023 - Bulletin Print Report; GlobalFoundries U.S., Inc.operates a manufacturing facility within a designated Empire Zone in Malta, New York. Petitioner, ("P"), seeks a refund of EZ-ITCs in...

Landlord Was Not A Charitable Organization: February 14, 2023 - Bulletin Print Report; U and W appeal from decisions of the Appellate Tax Board, (the "board"), finding that the taxpayers were not entitled to real estate tax exemptions under G.L. c. 59,...

No Refund Of "REET" Tax Permitted: February 13, 2023 - Volume 17 Issue 29 Print Report; Decedents, husband and wife, had two children, BA and BB, and owned property located in Washington (the Property). Decedent A died intestate in May 2009. Decedent B d...

Waste Hauler Not Eligible For The "Rolling Stock" Exemption: February 13, 2023 - Bulletin Print Report; Petitioner contends that it is entitled to an exemption from use tax because its trucks are "rolling stock used in interstate commerce and purchased, rented, or leased by...

Distributing Corporation Takes Steps To Eliminate An "ELA": February 13, 2023 - Bulletin Print Report; Distributing is a publicly traded domestic corporation. Distributing is engaged in the active conduct of Business A, Business B, and Business C. Distributing owns all of the st...

3M Loses A Transfer Pricing Case: February 10, 2023 - Bulletin Print Report; 3M Company owns, directly and indirectly, hundreds of subsidiaries, one of which is 3M Brazil. Many years ago, 3M Company granted 3M Brazil a non-exclusive license to use certa...

Will A "Constructive" Redemption Trigger Repurchase Excise Tax?: February 10, 2023 - Bulletin Print Report; Section 4501 of the Internal Revenue Code, enacted in the Inflation Reduction Act of 2022, as is by now well-known, imposes on each "covered corporation" an excise ta...

I.R.A. Did Not Purchase Property: February 10, 2023 - Volume 17 Issue 28 Print Report; In 2008, D rolled over funds from an I.R.A. at NM into a pre-existing self-directed I.R.A. he had with Charles Schwab (CS). On February 6, 2009, D signed a contract t...

The Right To Brownfield Credits Is A Receivable: February 10, 2023 - Bulletin Print Report; Taxpayer, ("TP"), will elect to be a real estate investment trust, ("REIT"), for the taxable year ending Date 1. TP owns "Site," which is in State...

A Club's Initiation Fees Are Fully Deductible: February 9, 2023 - Bulletin Print Report; R is a non-profit corporation that owns and operates a country club. R offers several levels of membership. New members must pay a one-time initiation fee with their applicatio...

ADP Leased Tangible Personal Property: February 9, 2023 - Bulletin Print Report; eTime, ("ET"), is an application software that allows clients' employees to login using the internet from their computers and enter their time and other employmen...

Educational Organization Entitled To Charitable Tax Exemption: February 9, 2023 - Bulletin Print Report; R's stated purpose was "to improve and stimulate agricultural and mechanical skill." R organizes the annual Rochester Fair, ("RF"). In 2020, R filed an...

Attribution Rules Apply To Sec. 302(b)(1): February 9, 2023 - Volume 17 Issue 27 Print Report; Y is a corporation engaged in the business of publishing a daily newspaper. Prior to October 31, 1977, Y had outstanding400 shares of stock. Of that number, 250...

Contract Terms Determines Proper Time For Accrual: February 8, 2023 - Volume 17 Issue 26 Print Report; TP uses the accrual method of accounting. It manufactures consumer products and distributes these products to dealers, who in turn sell to the public. TP provides adv...

Qualified Appraisal Not Found: February 8, 2023 - Bulletin Print Report; During 2016 and 2017, petitioners,("Ps"), were the soleshareholders of I. I was an 'S' corporation. Ps executed an agreement with M. The engagemen...

Failure To Exhaust Administrative Remedies Led To Dismissal Of Suit: February 8, 2023 - Bulletin Print Report; On August 11, 2017, W filed her 2012 income tax return with the South Carolina Department of Revenue, (the"Department"), claiming a refund. On February 14, 2018...

Accuracy-Related Penalties Properly Imposed: February 8, 2023 - Bulletin Print Report; Petitioner hired DC to prepare his 2018 federal income tax return. DC did not have a preparer tax identification number ("PTIN"). The 2018 federal income tax return w...

Share Repurchases Not Evidence Of A Device: February 7, 2023 - Bulletin Print Report; D is a publicly traded State A corporation. We believe D is GE. D is engaged in Business A and Business B (including Business C, a division of Business B). At the time of...

Non-Profit Corporation Not An Instrumentality Of Government: February 7, 2023 - Bulletin Print Report; I is a private, non-profit corporation. I's members includes counties, county officers and employees, and affiliated associations. I is comprised of fifteen affiliate assoc...

Business License Tax Imposed On Gross Income Is Constitutional: February 7, 2023 - Volume 17 Issue 25 Print Report; This appeal involves a constitutional challenge to the Town of Hilton Head Island'sbusiness license tax ordinance (O), which requires businesses within the...

Spin-Off By A Controlled Foreign Corporation: February 7, 2023 - Bulletin Print Report; Parent, ("P"), is the parent of a worldwide group of affiliates, (the "P Worldwide Group"). The P Worldwide Group is engaged in multiple businesses, includi...

SPAC's Self-Tender Offer Appears Subject To Repurchase Tax: February 6, 2023 - Bulletin Print Report; dMY Technology Group VI, ("D"), a special purpose acquisition company, ("SPAC"), has located a target, "RWT,"which it is proposing to acquir...

PSA Is Proposing A Taxable Transaction: February 6, 2023 - Bulletin Print Report; Public Storage, Inc., ("PSA"), we learned this morning, is proposing to acquire "all of the outstanding shares and units of Life Storage, Inc., ("LSI")...

JNJ's "Talc" Affiliate Was Not In "Financial Distress": February 6, 2023 - Bulletin Print Report; OC, a wholly owned subsidiary of Johnson & Johnson, ("JJ"), sold healthcare products. It also produced Baby Powder, a skincare product. Its base was talc. Concern...

Points On Refinancing Bridge Loan Deductible In Year Paid: February 6, 2023 - Volume 17 Issue 24 Print Report; In January 1981, the Hs financed the purchase of their principal residence by obtaining a $122,000 three year loan with a balloon payment secured by a mortgage on the...

Faculty Housing Qualifies For Tax Exemption: February 6, 2023 - Bulletin Print Report; R is a registered not-for-profit college preparatory school in Westchester County, New York.R is a day school that provides education for children from pre-kindergarten t...

Limited Scope Of "Next-Day" Rule: February 3, 2023 - Volume 17 Issue 23 Print Report; ACQ is the common parent of a consolidated group. On 11/30/xx, a subsidiary in the ACQ group merges with and into T and T's shareholders exchange their T stock for cash (th...

Amounts Paid To Acquire "PRVs" Must Be Capitalized: February 3, 2023 - Bulletin Print Report; A pharmaceutical company, ("PC"), must obtain FDA approval of a new drug application, ("NDA"), to market and sell any new drug in the United States. Congres...

Debtor Neither Legal Nor Equitable Owner Of Residential Property: February 3, 2023 - Bulletin Print Report; The property involved in this case is located in Paradise Valley, Arizona, (the "property"). In 2005, E purchased the property for $1,525,000...obtaining a $1,143,750...

Gain On Sale Of SBUX Stock Was Non-Business Income: February 3, 2023 - Bulletin Print Report; P is headquartered in Washington State. P and Starbucks, ("S") are unaffiliated, not a unitary business, and are in unrelated industries. In 1991 or before, P purchas...

Interest On GSE Obligations Not Exempt From Taxation: February 2, 2023 - Volume 17 Issue 22 Print Report; TP is a Washington-based bank. TP was audited by the Department of Revenue. Tax was applied to TP's gross income from interest on securities issued by Fannie Mae and Freddi...

Payment Of Spouse's Attorney's Fees Was Not "Alimony": February 2, 2023 - Bulletin Print Report; Petitioner, ("P"), instituted divorce proceedings in California. A court order, ("order"), was issued. P was ordered to pay $9,146 in monthly alimony. Under...

Original Cost Is Reduced By "Rebates": February 2, 2023 - Bulletin Print Report; A business receives a rebate for making purchases of certain fixed assets in bulk. The assets are purchased and the rebate is given after the fact as a refund. The rebate is pr...

GEO Group Is Not An "Instrumentality" Of Any Government: February 2, 2023 - Bulletin Print Report; The GEO Group, Inc., ("G"), owns and operates correctional and detention facilities. G operated such facilities in Texas under contracts with the State of Texas and t...

Gain From Sale Of Goodwill Classified As Business Income: February 1, 2023 - Bulletin Print Report; KC founded Cities Management, Inc., ("CMI"), in 1988 as a Minnesota corporation. CMI was primarily engaged in the business of managing community associations in Minne...

Nonrefundable Interest Must Be Ratably Allocated: February 1, 2023 - Volume 17 Issue 21 Print Report; In October 1977, petitioner (P) entered into negotiations to purchase an office building from TF. P paid the entire purchase price with a nonrecourse purchase money mortgage fo...

Equitable Tolling Of A Statute Of Limitations Not Available: February 1, 2023 - Bulletin Print Report; A served in the Navy from 1977 until 1981. Approximately 30 years later, the VA received A's application for disability compensation. The regional office granted A benefits...

Exception To ALJ Determination Not Timely Filed: February 1, 2023 - Bulletin Print Report; The determination of the Administrative Law Judge, ("ALJ"), was mailed by the United States Postal Service, ("USPS"), certified mail on March 10, 2022 to pe...

Skilled Nursing Provider Could Not Deduct Its Gross Receipts: January 31, 2023 - Bulletin Print Report; TP is a licensed home health agency. Specifically,TP is a licensed skilled nursing provider that offers services to the United States Department of Energy employees...wit...

No Refund Of "HI" Tax Permitted: January 31, 2023 - Volume 17 Issue 20 Print Report; Plaintiff (P) was employed as a pilot by United Airlines (U) from January 29, 1979 until October 1, 2004. This case concerns the FICA tax treatment of P's retirement benefi...

MAGT To Be Acquired In A "Disproportionate" Acquisition: January 31, 2023 - Bulletin Print Report; Magnet Forensics, Inc., ("MAGT"), a Canadian corporation, announced it has entered into a definitive arrangement agreement with "PU," a newly-created corpor...

Notice 2007-83 Has Been "Set Aside": January 31, 2023 - Bulletin Print Report; In 2004, Congress added section 6707A to the Internal Revenue Service'sarsenal of tools for identifying tax avoidance schemes. Section 6707A permits the I.R.S. to pen...

Isolated Redemption Does Not Trigger Deemed Distribution: January 30, 2023 - Volume 17 Issue 19 Print Report; C is a privately held holding company with all of its stock (consisting of Class A voting stock and Class B nonvoting stock) held by or for the benefit of members of...

Software Vendor Denied Approval Of Claim For Refund: January 30, 2023 - Bulletin Print Report; Petitioner, ("P"), filed an Application For Refund. The Department issued a Notice of Decision of Refund Denial. In 2007, Oracle, ("O"), first sold a perpet...

The "Functional" Approach Is Used In Bankruptcy Cases: January 30, 2023 - Bulletin Print Report; The Affordable Care Act, (the "ACA"), included a mandate (sincerepealed) requiring most individuals to maintain health insurance. Individuals who did not mainta...

St. Louis Area Teleworkers Not Subject To Local Tax: January 30, 2023 - Bulletin Print Report; The City adopted the Earnings Tax in 1959. Since then, the City has imposed a one percent tax on the earnings of non-residents of the City "for work done or services perfo...

Civil Fraud Penalty Timely Approved By Revenue Agent's Supervisor: January 27, 2023 - Bulletin Print Report; M was indicted on two counts of tax evasion. He pled guilty to the 2000 count and the government dismissed the 2001 count. The I.R.S. sent M a notice of deficiency asserting in...

Points Paid To Refinance Mortgage Addressed: January 27, 2023 - Volume 17 Issue 18 Print Report; In 1981, A obtained a 16-percent mortgage loan (old mortgage loan) expressly for the purchase of a principal residence. On August 20, 1986, A refinanced the old mortg...

Discharged Non-Recourse Debt Is Included In The "Amount Realized": January 27, 2023 - Bulletin Print Report; California encourages adult citizens with developmental disabilities to live in group homes. They are operated by social-service entrepreneurs like the Ps. Group homes are much...

NOLs Had To Be Carried Back: January 27, 2023 - Bulletin Print Report; TP and its affiliates filed consolidated federal and separate Virginia corporate income tax returns for the years at issue. TP reported a separate net operating loss, ("NO...

ACI Finally Pays Its Controversial Special Dividend: January 26, 2023 - Bulletin Print Report; Albertsons Companies, Inc., ("ACI"), in connection with its proposed business combination with The Kroger Company., ("KR"), declared a special dividend in O...

Adding Accrued Interest To Loan Balance: January 26, 2023 - Volume 17 Issue 17 Print Report; A state permits lending institutions to make "reverse" mortgage loans to individuals who own their own homes which they occupy as their principal residence. A reverse...

Can SPGI's Stock Repurchase Constitute A Partial Liquidation?: January 26, 2023 - Bulletin Print Report; S&P Global, ("SPGI") recently announced that it has entered into an agreement to sell its Engineering Solutions business to investment funds managed by KKR...for...

Diabetes Did Not Render A Taxpayer "Disabled": January 26, 2023 - Bulletin Print Report; In 2017, L worked at LCEwhere he had been employed for approximately four years. L lost his job in 2017. To make ends meet, he obtained a distribution from a section 401(...

The Willens Deal Survey January 2023: January 25, 2023 - The Deal Survey: January 2023 Print Report; Welcome to this month's summary of deals. Full reports on some of these transactions can be found via the link in the description, or by searching the company name in our database.

"Payment" Of Interest Is Required To Secure A Deduction: January 25, 2023 - Volume 17 Issue 16 Print Report; The Battelsteins were land developers. In 1971, G, a financial institution, agreed to lend the Battelsteins more than $3 million to cover the purchase of a piece of p...

Determining A Service Member's Domicile: January 25, 2023 - Bulletin Print Report; The Alabama Department of Revenue determined that TPs' domicile during 2016 was Alabama. TPs moved to Alabama in 2014, had purchased a home, and had claimed a homestead exe...

Brokers Receive Some Relief From "PTP" Withholding Requirements: January 25, 2023 - Bulletin Print Report; Sections 864(c)(8) and 1446(f) were added to the Internal Revenue Code by the TCJA. The former provides that gain or loss of a foreign person on the sale or exchange of an inte...

Ohio Will Allow Vendors Bad Debt Deductions For Uncollectible Accounts: January 25, 2023 - Bulletin Print Report; Many retailers offer their customers store-branded private label credit cards that are issued to the customers by a financial institution. Under the typical agreement between t...

Fees Paid With Negotiable Promissory Note: January 24, 2023 - Volume 17 Issue 15 Print Report; An individual issued and delivered a negotiable promissory note to a lawyer who accepted the note in payment for legal services rendered to the individual as operator of a smal...

Cryptocurrency Donations Require A Qualified Appraisal: January 24, 2023 - Bulletin Print Report; TPA purchased units of Cryptocurrency B, ("CB"), for personal investment purposes. TPA later transferred all of herunits to CH, a charitable organization descri...

Identification Of The "Retailer" Is A Discretionary Determination: January 24, 2023 - Bulletin Print Report; Amazon fulfills orders for products sold by third-party merchants through a program it calls "Fulfillment by Amazon," ("FBA"). Amazon provides advertising,...

QSub Gain Is Realized By Parent: January 24, 2023 - Bulletin Print Report; P is an Iowa chartered bank that is 100 percent owned by A. A elected to be treated as an 'S' corporation. A made the election for P to be taxed as a qualified subchapt...

Spin-Off Motivated By Desire To Raise Capital: January 23, 2023 - Volume 17 Issue 14 Print Report; D is the common parent of an affiliated group of corporations that files a consolidated federal income tax return. D owns all of the stock of C, a State A corporation, and all...

Prematurely Filed Lawsuit Was Dismissed: January 23, 2023 - Bulletin Print Report; CB became a permanent resident of the U.S. in 2006. CB's father opened an account in her name at the Taiwan Cooperative Bank, ("TCB"). She had a financial interes...

Housing Accommodation Includible In Gross Income: January 23, 2023 - Bulletin Print Report; S received an offer of employment from R to work as an engineer at the Joint Defense Facility at Pine Gap, Alice Springs, Northern Territory, Australia, ("Pine Gap")....

Retailer Not A Guarantor Of Uncollectible Accounts: January 23, 2023 - Bulletin Print Report; TP owned and operated more than a dozen retail department stores in Washington. TP offers its customers a store-branded private label credit card that was issued to its custome...

When Is A Cryptocurrency Loss Sustained?: January 20, 2023 - Bulletin Print Report; TPA purchased units of Cryptocurrency B, ("CB"), in 2022 at $1 per unit for personal investment purposes on a cryptocurrency exchange. The per unit value decreased si...

What We Can Learn From 3M's Reverse Morris Trust Ruling: January 20, 2023 - Bulletin Print Report; LTR 202249011, May 10, 2022, is the ruling letter issued by the I.R.S. to 3M Company, ("MMM"),in connection with its "Reverse Morris Trust," ("RM...

NY Legislators Propose Surtax On Capital Gains And Mark-To-Market Levy: January 20, 2023 - Bulletin Print Report; Although Governor Hochulseems intent on not raising taxes this year, her colleagues in the New York State Legislature are not expressing such reticence. The recent setbac...

Indirect Ownership Counts For Purposes Of Sec. 1504(d): January 20, 2023 - Volume 17 Issue 13 Print Report; P has a 52-53 week taxable year ending on the last Saturday in December. Part of P's business in Country is conducted through a holding company, SM1, which was organized un...

Vacant Land Not Eligible For Exemption: January 20, 2023 - Bulletin Print Report; The subject property is 0.295 acres of vacant land with no improvements thereon... The subject property was deeded to Rockford Baptist Church, Inc. on January 21, 2004. The sub...

Coin-Operated Laundry Facilities Create UBTI: January 19, 2023 - Volume 17 Issue 12 Print Report; TP is a private operating foundation. Grantor owns Apartment complex (AC). Grantor intends to transfer ownership of AC to TP as a donation. The AC annually generates several mi...

Education Expenditures Could Not Be Substantiated: January 19, 2023 - Bulletin Print Report; Petitioner, ("P"), has a daughter, AM, who was enrolled in post-secondary education at University College, London, ("UCL"), during the year in issue. UCL is...

Reagents Not Exempt From Sales Tax: January 19, 2023 - Bulletin Print Report; Taxpayer, ("TP"), is a provider of diagnostic testing and analytical services with locations in Virginia and throughout the United States. The auditor denied TP refun...

Anatomy Of An "Upstream" Exchange: January 19, 2023 - Bulletin Print Report; There areobvious advantages, from a tax standpoint, to "replacing" equity with indebtedness, not the least of which is the opportunity to convert non-deductible...

Disallowed Interest Reduces E&P When It Is Incurred: January 18, 2023 - Volume 17 Issue 11 Print Report; A holds a paid-up life insurance contract on his own life. X is a calendar-year C corporation unrelated to A. On the first day of Year 1, X purchases A's life ins...

Ranching Activity Entered Into For Profit: January 18, 2023 - Bulletin Print Report; Petitioners, ("Ps"), sought to diversify their business interests by acquiring a cattle ranch. Ps purchased the property for $2 million. Ps hired a foreman, RP. Withi...

Residence Is Not Synonymous With Employment: January 18, 2023 - Bulletin Print Report; On March 17, 2021, the Department assessed TP for personal income tax, penalty, and interest for the 2018 tax year. TP filed a timely written protest to the assessment. Prior t...

Lump-Sum Payment Found To Be Alimony: January 18, 2023 - Bulletin Print Report; APP and FH married in 1991 and divorced in 2002. APP and FH executed a Marital Settlement Agreement, ("MSA"), which was incorporated into a Judgment of Dissolution. S...

OTA's Function Is To Determine The Amount Of Tax Liability: January 17, 2023 - Bulletin Print Report; Appellant, ("APP"),timely filed her 2015 California tax return, reporting tax due. APP remitted timely payment of tax due when she filed the return. On March 9,...

Shareholders' Agreement Does Not Constitute "Voting Securities": January 17, 2023 - Volume 17 Issue 10 Print Report; The taxpayer, a corporation licensed by the Small Business Administration to operate as a small business investment company, registered with the S.E.C. as a closed-en...

"COD" Income Requires A Bona Fide Debt: January 17, 2023 - Bulletin Print Report; F owned RSB. H moved from New Jersey to California around June 2011, when he began working for RSB. F purchased a residential house located in California for APPs, (the "C...

Taxpayer Must Establish Undue Hardship: January 17, 2023 - Bulletin Print Report; The Department of Revenue, (the "Department"),assessed TPs for deficient taxes...for tax year 2013. TPs appealed to the Magistrate Division of the Tax Court. Wh...

No Resident Tax Credit For Out-Of-State Franchise Taxes: January 13, 2023 - Bulletin Print Report; Taxpayers filed a Virginia resident income tax return for 2018 claiming a credit for Unincorporated Business Franchise Tax, ("UBFT"), paid to the District of Columbia...

Gain From Sale Of Land Is Ordinary Income: January 13, 2023 - Volume 17 Issue 9 Print Report; Plaintiff (A)purchased the Property (undeveloped real estate in EastPalo Alto,California) in 1987. He purchased the land for purposes of developing...

Non-Uniform Tax Assessment Was Unconstitutional: January 13, 2023 - Bulletin Print Report; The Company must pay M&T tax to the County for the machinery and tools it uses in its factory. On May 11, 2017, the Board increased the M&T tax rate to $4.24 per $100 o...

Determining An Estate Beneficiary's Constructive Ownership: January 12, 2023 - Volume 17 Issue 8 Print Report; Advice has been requested whether, for purposes of Sec. 318(a) of the Internal RevenueCode, in determining the applicability of Sec. 302(b)(2) to a redemption o...

PSX To "Roll Up" DCP: January 12, 2023 - Bulletin Print Report; Phillips 66, ("PSX"), and its "captive" MLP, DCP Midstream, L.P., ("DCP"), announced that they have entered into a definitive agreement pursuant t...

Suspended Corporation Cannot Initiate Lawsuit Regarding Its Tax Status: January 12, 2023 - Bulletin Print Report; The I.R.S. issued petitioner, ("P"), a final adverse determination letter revoking its tax-exempt status retroactively to 2016. P petitioned this court seeking a decl...

"Unearned" APTC Creates A Tax Liability: January 11, 2023 - Bulletin Print Report; Since April 2015, petitioner, ("P"), has been unemployed. Consequently, she made early withdrawals from a retirement or pension plan. P was enrolled in health insuran...

Sec. 354(a) Takes Precedence Over Sec. 453B(a): January 11, 2023 - Volume 17 Issue 7 Print Report; T is a trust that is subjectto the provisions of Secs. 671-677 and A is the grantor of T. T holds notes (Old Notes) thatare payable by X, a corporation. T...

The "California Method" Does Not Tax Extraterritorial Income: January 11, 2023 - Bulletin Print Report; APP filed a 2016 California Non-Resident Return reporting $82,070 in Federal AGI and $75,581 of California AGI. The Franchise Tax Board, ("FTB"), received information...

"Relo" Company Is The Purchaser Of An Employee's Home: January 10, 2023 - Volume 17 Issue 6 Print Report; X, a limited partnership, is in the business of providing relocation services to employers (E). X and E will enter into an agreement pursuant to which X, upon notific...

Sweepstakes Was An Amusement Service: January 10, 2023 - Bulletin Print Report; The Texas sales tax is imposed on the sale of amusement services... Amusement services includes "the provision of amusement, entertainment, or recreation." For purpos...

Lease Agreements Found To Be Joint Ventures: January 10, 2023 - Bulletin Print Report; TP entered into contracts with convenience stores, (the "proprietors"), concerning coin-operated amusement machines, (the "machines"). The contracts reflect...

Payment Of Expenses Not Incompatible With 'B' Or 'C': January 9, 2023 - Volume 17 Issue 5 Print Report; Pursuant to a plan of reorganization, X proposes to transfer substantially all of its properties to Y in exchange for shares of voting stock of Y followed by the dist...

Farm Machinery Not Primarily Used For Exempt Purposes: January 9, 2023 - Bulletin Print Report; P is a veterinarian about 75 percent of whose practice involves treating large animals. P tows a trailer marked "Small Animal Mobile Clinic" behind his pickup truck....

No Relief Granted For Late Filing Of A Refund Claim: January 9, 2023 - Bulletin Print Report; FICA tax is imposed on the income of every individual... Wages under a non-qualified deferred compensation plan are subject to a special timing rule. The FICA tax on wages defe...

"Book-Out" Transactions Found To Be Taxable: January 9, 2023 - Bulletin Print Report; Cook County (Illinois) taxes the sale of gasoline, diesel fuel, biodiesel fuel, and GDiesel at a retail level pursuant to the Fuel Tax Ordinance. When a distributor sells fuel...

'B' Reorganization Gives Way To Qualified Stock Purchase: January 6, 2023 - Volume 17 Issue 4 Print Report; Acquiring Corporation, (ACQ), a State A corporation, is the parent corporation of a consolidated group. Target (T) a Country B corporation, is the parent company of a...

Municipality's Tax On Remote Workers Not Unconstitutional: January 6, 2023 - Bulletin Print Report; This case stems from a provision in 2020 H.B. 197--section 29--regarding municipal taxation that the General Assembly enacted in March 2020 in response to Governor DeWine's...

Transfer Of Reversionary Interests Is Taxable: January 6, 2023 - Bulletin Print Report; The District of Columbia generally taxes the sale of real estate as a percentage of the total sale, divided equally between the buyer and seller. It does so through two differe...

Remedy For Uniformity Clause Violation Is A Refund Of Previous Taxes: January 6, 2023 - Bulletin Print Report; TP is a Delaware corporation. TP carried into the 2014 Tax Year net losses...apportioned to Pennsylvania, ("P"), in the amount of $791,244,978. For the 2014 Tax Year,...

A Financial Transaction Is Not An Unexpected Event: January 5, 2023 - Bulletin Print Report; APP held stock in CelgeneCorporation. On November 19, 2019, Bristol-Myers Squibb Company purchased Celgene Corporation in a "merger acquisition, which resulted in AP...

SPAC's Stock Issuance Should Reduce Repurchase Excise Tax Base: January 5, 2023 - Bulletin Print Report; It turns out that SPACswill not only benefit from the I.R.S.'s surprising decision to exclude liquidating distributions from the definition of a "repurchase,&quo...

Tender Offer/Merger Stepped Together To Find A Reorganization: January 5, 2023 - Volume 17 Issue 3 Print Report; P and T are widely-held, manufacturing corporations organized under the laws of State A. P seeks to acquire all of the outstanding stock of T. P initiates a tender of...

"USAC" Is Not A Federal Government Instrumentality: January 5, 2023 - Bulletin Print Report; A is a telecommunications company that provides wireless telecommunications services to consumers...including Lifeline, ("L"), services. L is a federal program design...

Merchants' Claims Were Barred By The Tax Injunction Act: January 5, 2023 - Bulletin Print Report; G is a trade association for e-commerce merchants. Members sell products through Amazon's "FBA" program. Goods are ostensibly sold by the merchant, but "fulf...

Assignable Note Includible In Gross Income: January 4, 2023 - Volume 17 Issue 2 Print Report; On January 14, 1977, the Covenantor (the CO) and the Company (the C) executed a non-competition agreement. Under this contract, the CO agreed not to compete with the...

Law Firm's Deferral Scheme Thwarted: January 4, 2023 - Bulletin Print Report; TP is a law firm organized as a partnership. TP is a cash method taxpayer. TP represents a client, ("C"), in connection with C's legal claim against a defendant,...

"Cookies" Did Not Translate Into In-State Physical Presence: January 4, 2023 - Bulletin Print Report; U was an online retailer that sold after-market automobile parts and accessories; it was headquartered in California. U did not own or lease any offices, facilities, inventory,...

Fracking Services Subject To Sales Tax: January 4, 2023 - Bulletin Print Report; D extracts crude oil on parcels that it leases from the State of Wyoming. D hired contractors to perform fracking services. Those contractors charged D sales tax on some of the...

"COBE" Not Required In A Recapitalization: January 3, 2023 - Volume 17 Issue 1 Print Report; Sec. 368(a)(1)(E) of the Code provides that a recapitalization is a reorganization. A recapitalization has been defined, succinctly, as "a reshuffling o...

Split-Off Gains Will Be Excluded From "AFSI": January 3, 2023 - Bulletin Print Report; The I.R.S.'s guidance on the corporate alternative minimum tax, (the "CAMT"), enacted in the Inflation Reduction Act of 2022,adopts the same governing...

Tax Court Petition Was Not Timely Filed: January 3, 2023 - Bulletin Print Report; A appeals the Tax Court's dismissal of his petition to challenge a notice of deficiency...for lack of jurisdiction. The I.R.S. contends the Tax Court lacked jurisdiction ov...

"Full Retail Value" Does Not Include Sales Tax: January 3, 2023 - Bulletin Print Report; On February 11, 2020, defendant shoplifted a Play Station 4 video game console from a Kohl's department store. The price of the Play Station 4 was $299.99, exclusive of sal...

Sec. 311(a) Loss Reduced Basis And "AAA": December 30, 2022 - Volume 16 Issue 248 Print Report; The taxpayer, A, was formed as a C corporation on Date 1. It elected 'S' status on Date 2. On Date 3, A transferred corporate-owned real estate to B, a shareholder of A...

A Casino's "PC Points" Are Akin To Airline Miles: December 30, 2022 - Bulletin Print Report; DR operates Mohegan Sun, a casino and resort in Pennsylvania. DR contends it was entitled to deductions from its gross revenue for "PC Points" it distributed to playe...

Wisconsin Resident Had Minnesota-Source Income: December 30, 2022 - Bulletin Print Report; W was a licensed physician and surgeon by the Minnesota Board of Medical Practice specializing in anesthesiology. In 2019, he was employed as a physician and received $551,214....

A Signed "Letter 950" Is Written Supervisory Approval: December 30, 2022 - Bulletin Print Report; Respondent determined deficiencies for the years at issue, as well as an addition to tax under section 6651(a)(1) and an accuracy-related penalty under section 6662(a) for each...

CVRs Should Be Excluded From The "Amount Realized": December 29, 2022 - Bulletin Print Report; Where the parties to an acquisition are unable to agree on the value of the target (or, less frequently, on the value of the acquirer) for purposes of fixing the merger conside...

Post-Death Stock Dividends: December 29, 2022 - Volume 16 Issue 247 Print Report; This is an estate tax case in which the executor elected to value the gross estate of the decedent by valuing the property included therein on the date of decedent's death...

EITC Refunds Not Exempt From Creditor Claims: December 29, 2022 - Bulletin Print Report; On her bankruptcy schedules, M claimed exemptions in 100 percent of the tax refunds, ("Claim of Exemptions"). The Trustee objects to $4,361.00 of M's EITC tax ref...

Reliance On Tax Professional Is "Good Cause": December 29, 2022 - Bulletin Print Report; On June 9, 2021, the Department of Revenue, (the "Department"), issued petitioners, ("Ps"), a Proposed Assessment. Under the Revenue Procedures Act, Ps had...

I.R.S. Issues Guidance On The "Repurchase Excise Tax": December 28, 2022 - Bulletin Print Report; Section 4501 of the Internal Revenue Code, added by the Inflation Reduction Act, imposes on eac...

Refund Not Partnership "Item" Or "Property": December 28, 2022 - Volume 16 Issue 246 Print Report; TP is an individual investor in X, a limited liability company (LLC) that is treated as a partnership. TP has a zero basis in his partnership interest. In Year 1, the LLC purch...

"At-Risk" Rules Deny Pass-Through Losses: December 28, 2022 - Bulletin Print Report; DC was classified as a partnership for U.S. federal and California income tax purposes. SS was a disregarded entity. SS was a member of DC. APP was the sole member of SS. SPM i...

Electricity And Fuel Not Subject To Sales Tax: December 28, 2022 - Bulletin Print Report; TP is a subdivision homeowners association registered in the State of Florida as a non-profit corporation that services a community of 200 residences. Each member of the associ...

No Waiver Of Attribution For A Director: December 27, 2022 - Volume 16 Issue 245 Print Report; A redemption agreement between the corporation and the individual shareholder provides that a total of $350x will be paid to such shareholder for all ofhis stoc...

Depreciation Found To Be "Non-Taxable Income": December 27, 2022 - Bulletin Print Report; PO filed an application with County, ("C"), for so-called "circuit breaker" tax relief for the 2020 tax year. C denied the application. PO was domiciled in...

Distribution From Estate Not "Retirement Income": December 27, 2022 - Bulletin Print Report; In 2018, APP was the beneficiary of a distribution of taxable retirement benefits that were received by the estate of APP's brother. This distribution was included in APP&#...

Aluminum Producer Purchased Tax-Exempt Supplies: December 27, 2022 - Bulletin Print Report; C manufactures aluminum. As part of that business, C purchased anode stubs, Inductotherm lining, thermocouples and tube assemblies, and welding wire and industrial gases from K...

When Must A Liquidating Corporation File Its Tax Return?: December 23, 2022 - Volume 16 Issue 244 Print Report; The question relates to the time for filing a Federal income tax return and paying the tax due thereon by a corporation that has satisfied or made provision for all o...

State Of Delivery May Impose Sales Tax: December 23, 2022 - Bulletin Print Report; Petitioner, ("P"), is an 'S' corporation headquartered in Wisconsin. P is engaged in the production and sale of printed materials...for distribution across th...

Instruments And Equipment Are Subject To Sales Tax: December 23, 2022 - Bulletin Print Report; Are Taxpayer's sales of XXXX(the "Product"), subject to Florida Sales and Use Tax when sold at retail in Florida? The answer is yes... Taxpayer sells medica...

The Minnesota Estate Tax Is Constitutional: December 23, 2022 - Bulletin Print Report; J died on November 8, 2018, as a domiciliary of Minnesota, ("M"). The sole asset of her estate is the Trust. J established the Trust upon the death of her husband in...

Volkswagen Special Distribution: December 22, 2022 - Bulletin Print Report; Volkswagen AG's shareholders overwhelmingly approved a special distribution in the amount of EUR 19.06 "per ordinary and preferred share entitled to distribution."...

The Willens Deal Survey December 2022: December 22, 2022 - The Deal Survey: December 2022 Print Report; Welcome to this month's summary of deals. Full reports on some of these transactions can be found via the link in the description, or by searching the company name in our database.

Retention Of Driver's License Not Determinative Of Domicile: December 22, 2022 - Bulletin Print Report; Taxpayer, ("TP"), was born in Alabama in 1988 and lived there until 2015. He moved to Jacksonville, Florida, because his child had been born there. He leased an apart...

WFC Should Score Tax Deductions For "Remediation" Payments: December 22, 2022 - Bulletin Print Report; On December 20, 2022, Wells Fargo & Company, ("WFC") issued a press release announcing that it hasreached a settlement with the Consumer Financial Protectio...

Deemed Sale Gain Not Apportionable Business Income: December 22, 2022 - Volume 16 Issue 243 Print Report; MW was a Delaware corporation with its principal place of business located in California. MW was a wholly-owned subsidiary of MP. MW was in the business of processing...

CR Is Embarking On A "Reverse Spin-Off": December 21, 2022 - Bulletin Print Report; Crane Holdings Co., ("CR"), is proceeding towards an April 2023separation of its two principalbusinesses, its "Industrial Technology" business a...

Partnership Was The True Seller Of Real Property: December 21, 2022 - Bulletin Print Report; AWG, a limited liability company taxed as apartnership, operated a winery in Paso Robles, California.AWG had two members, YHIand WGP. WGP had four partners, K...

Certificates Treated As Equity Interests: December 21, 2022 - Volume 16 Issue 242 Print Report; Y is a farmer's cooperative association which markets and processes agricultural productson behalf ofits members. Its member-patrons possess membershi...

College Student Did Not Change Domicile: December 21, 2022 - Bulletin Print Report; Two classes of residents, a domiciliary resident and an actual resident, are set forth in section 58.1-302. The domiciliary residence of a person means the permanent place of r...

Delayed Payment Classified As "Boot": December 20, 2022 - Volume 16 Issue 241 Print Report; In 1951, D received a cash payment of approximately $12,000 from CBSI. The question is whether that payment was taxable as a long-term capital gain or was ordinary in...

Heavy Equipment Is Not "Motor Vehicles": December 20, 2022 - Bulletin Print Report; Heavy equipment sales and rentals are generally subject to sales tax under Tax Rule GR-15.2. The rentals at issue involved excavators, boom lifts, and buggies. Exemption is lim...

Nebraskans Failed To Prove A Change In Domicile: December 20, 2022 - Bulletin Print Report; The As filed Nebraska, ("N"), income tax returns claiming status as non-residents of N. The Department sent the As notices of proposed deficiencies. Each of the As ow...

New Orleans Gallonage Tax Not Properly Imposed: December 20, 2022 - Bulletin Print Report; TP is a wholesale dealer of High Alcoholic Content Beverages, ("HACB"). TP has obtained licenses and permits from the State and from Jefferson Parish, ("JP"...

Reacquisition Of Improvements To Realty Governed By Sec. 1038(a): December 19, 2022 - Volume 16 Issue 240 Print Report; In September 1976, PMC, which was wholly owned by petitioners, opened escrow on 11.3 acres of land in California. In May 1977, petitioners assumed PMC's position...

Bundled Transaction Found Subject To California Sales Tax: December 19, 2022 - Bulletin Print Report; APP operates an automated teller machine, ("ATM"), network in this state. APP enters into Franchise Agreements with franchisees. An ACFNbusiness consists of the...

Artist Was Not An "Occasional Seller" Of Property: December 19, 2022 - Bulletin Print Report; For tax year 2018, DC filed Schedule C forms as part of his federal personal income tax returns. The Schedule C reported business income. The taxpayer did not file gross receip...

Charter Communications Was Not A "Qualified New York Manufacturer": December 19, 2022 - Bulletin Print Report; On their combined returns, petitioners calculated their franchise tax on the entire net income base using the reduced tax rate as a "qualified emerging technology company....

MSGE Revises Its Spin-Off Plan: December 16, 2022 - Bulletin Print Report; Madison Square Garden Entertainment Corporation, ("MSGE"), has tweaked the spin-off plan it announced in October, although the manner in which the spin-off will be ef...

Retainers Are Prosthetic Devices: December 16, 2022 - Bulletin Print Report; Taxpayer, ("TP"), operates an orthodontic practice in Indiana. Post-treatment retainers are provided for every comprehensiveorthodontic patient to maintain stab...

Redemption Cannot Pass Muster Under Sec. 302(b): December 16, 2022 - Volume 16 Issue 239 Print Report; SHA owned, directly, 50 percent of the stock of Y. As a result of family attribution, SHA is considered to own approximately 94 percent of the stock in X. It is plann...

Fees For "Idle Time" Not Subject To Sales Tax: December 16, 2022 - Bulletin Print Report; Sales and use tax is imposed on the sales at retail...in this state. Tangible personal property is personal property which may be seen, weighed, measured, felt or touched, or i...

When Are Bonds Considered "Substantially Identical?": December 15, 2022 - Bulletin Print Report; On September 30, 2022, the New York Times reported that "this year is the most devastating period for bonds since at least 1926...and that bond investors are experiencing...

Consultant Secures A Business Bad Debt Deduction: December 15, 2022 - Volume 16 Issue 238 Print Report; In Date a, A contacted TP with a business proposition regarding the acquisition and management of Corp. B (B), a manufacturer of C. A formed N for the purpose of acqu...

Annuities Are Included In "Disposable" Income: December 15, 2022 - Bulletin Print Report; For 2019, Owner had in place a senior citizen property tax exemption for the subject property at income threshold one. The Assessor determined that Owner's 2020 income requ...

A Temporary Work Assignment Does Not Defeat NY Residency: December 15, 2022 - Bulletin Print Report; The issue is whether petitioner, who admittedly spent more than 183 days within New York City, ("NYC"), in 2017, maintained a permanent place of abode that resulted i...

Dissenters' Stock Is No Longer Outstanding: December 14, 2022 - Volume 16 Issue 237 Print Report; C is aState W corporation that performs services for both the government and the private sector. At present, 68,300 shares of C common stock are held by current...

New California Resident Scores A "Free" Basis Step-Up: December 14, 2022 - Bulletin Print Report; An Australian software magnate who had become, to his consternation, a California resident was awarded a lucrative consolation prize, what amounted to a "cost-free,"...

Taxpayer Qualified For The "M&E" Exemption: December 14, 2022 - Bulletin Print Report; TP manufactures custom component parts for industrial equipment and provides equipment repair and refurbishing services. Repairs may require replacement components. TP may fabr...

Certain Medical Examinations Are Subject To Sales Tax: December 14, 2022 - Bulletin Print Report; Worker's compensation is a state-regulated insurance program that pays medical bills and replaces some lost wages for employees who are injured at work or who have work-rel...

New Jersey To Take Action Against Its Neighboring States: December 13, 2022 - Bulletin Print Report; The New Jersey Legislature appears certain to enact, in early 2023, a tax bill that will go a long way to ending, or at least mitigating,its "second-class" stat...

"Right-Of-Use" Assets Are Intangible In Nature: December 13, 2022 - Bulletin Print Report; The Financial Accounting Standards Board, ("FASB"), has updated its accounting standards for leases. FASB requires privately-held companies...to follow Accounting Sta...

Taxpayer Denied Warehouse Tax Incentive: December 13, 2022 - Bulletin Print Report; TP is a manufacturer, wholesaler, and retailer of medical supplies. TP submitted Warehouse Tax Incentive applications...requesting remittance of sales and use tax paid for cost...

Seller Recognizes Gain On Repossession Of Real Property: December 13, 2022 - Volume 16 Issue 236 Print Report; Petitioner (P) purchased his personal residence and the surrounding 80 acres of land ("property") in 1966 for $25,000. On July 11, 2006, P agreed to sell th...

Twitter, Inc. Has Gone Private: December 12, 2022 - Bulletin Print Report; On October 27, 2022, a corporation, "Merger Sub," a wholly-owned subsidiary of "Parent," each such corporation recently created by Mr. Elon R. Musk, ("...

Status Of Property Is Determined On "Tax Day": December 12, 2022 - Bulletin Print Report; Petitioner acquired the subject property pursuant to a donation agreement on April 12, 2021. Respondent subsequently levied summer and winter taxes against the subject property...

Environmental Protection Payments Excluded From Gross Income: December 12, 2022 - Bulletin Print Report; Suffolk County (N.Y.) is experiencing degraded water quality as a result of excess nitrogen and nitrogen pollution. To address the adverse effects of nitrogen pollution...Suffo...

Determining The Basis Of Stock Received In A Sec. 351 Exchange: December 12, 2022 - Volume 16 Issue 235 Print Report; A, an individual, was engaged in business as a sole proprietor. The assets of the proprietorship consisted of accounts receivable with a basis of zero and fair market...

"Agricultural Use" Not Found: December 9, 2022 - Bulletin Print Report; In 2013, TPs submitted an application, (the "Application"). The Application sought to dedicate 32.406 acres on the Parcel to the ranching of "off site feed"...

Who "Manufactured" Polaroid Cameras?: December 9, 2022 - Volume 16 Issue 234 Print Report; Sec. 3406(a)(4) of the 1939 Code provided: "There shall be imposed on the following articles, sold by the manufacturer, producer, or importer, a tax....cameras.....

"Living Within The Boundaries" Not Synonymous With "Domicile": December 9, 2022 - Bulletin Print Report; At issue is whether TP is entitled to the income tax exemption set forth in NMSA 1978, section 7-2-5.5 (1995), which provides that income earned by a tribal member is exempt fr...

COVID-Era Method Of Taxation Is Constitutional: December 9, 2022 - Bulletin Print Report; C is a resident of ST and is employed in the petroleum refining industry with a usual place of business in O. From March 15, 2020 to thistime the complaint was filed, C w...

Sales Tax Credit Was Properly Denied: December 8, 2022 - Bulletin Print Report; On October 3, 2018, Taxpayer purchased a Trailer. Taxpayer registered the vehicle with the Department on October 25, 2018. The Trailer was purchased by, and is titled in, the n...

Los Angeles Has A New "Mansion" Surtax: December 8, 2022 - Bulletin Print Report; Los Angeles voters, overwhelmingly,approved a new tax on high end real estate transfers. The proceeds from the tax, estimated to be anywhere from $600 million to $1 billi...

Litigation Settlement Ruled Tax-Free: December 8, 2022 - Volume 16 Issue 233 Print Report; C and D, individuals, entered into an oral contract with H, an individual. H agreed to manage the business of C and D, taking a significant reduction in salary in the...

"Streamers" Are Able To Avoid Franchise Fees: December 8, 2022 - Bulletin Print Report; N and H are video-content providers that stream on-demand shows and movies to their subscribers over the Internet. Because N and H make their content available through the publ...

How To Compute The Basis Of "Qualified Replacement Property": December 7, 2022 - Volume 16 Issue 232 Print Report; In 1942, plaintiff acquired improved real property. On February 2, 1966, the Department of Highways purchased that property from the plaintiff for $125,300 in cash. According t...

"COP" Rule Used To Determine Florida Sales Factor: December 7, 2022 - Bulletin Print Report; TEI is a subsidiary of T. Both are headquartered in Minnesota. TEIearns revenue from providing services to T and certain other third parties. In 2011, TEI and T entered i...

Taxpayer's "VSC" Sales Were Wholesale Sales: December 7, 2022 - Bulletin Print Report; P's business involves entering into vehicle service contracts, ("VSCs"), with buyers of vehicles and then administering those VSCs. The VSCs are extended warranti...

Tax Abatement Agreement Not Found: December 7, 2022 - Bulletin Print Report; TEX. LOC. GOV'T CODE ANN. section 381.004(b) authorizes "the commissioners court of the county to develop and administer a program...for state and local economic devel...

When Are Shares No Longer Outstanding?: December 6, 2022 - Volume 16 Issue 231 Print Report; P is the common parent of an affiliated group filing a consolidated federal income tax return. S is a member of P's affiliated group. P owns 100 percent of the common stock...

Fuel Surcharges Are Subject To Sales And Use Tax: December 6, 2022 - Bulletin Print Report; Retailers selling tangible personal property at retail may or may not charge their customers for delivering merchandise via their own vehicle. However, when fuel costs increase...

Transfer To Trust Terminates Property Tax Relief: December 6, 2022 - Bulletin Print Report; At issue is whether Mr. B's transfer of the "subject property" to the Trust made him ineligible for taxpayer relief pursuant to TENN. CODE ANN. section 67-5-702(a...

Taxpayer's "ESA" Payment Was Timely: December 6, 2022 - Bulletin Print Report; This case involves the issue of whether petitioner, ("P"), complied with the statutory requirements of the Eligible Manufacturing Personal Property, ("EMPP"...

Depositors Have The Rights Of Shareholders: December 5, 2022 - Volume 16 Issue 230 Print Report; X and Y, both organized in State R, have operated continuously for many years as mutual savings banks. Neither had any capital stock outstanding, nor were there any other writt...

Absence Of A "Return" Prevented Discharge Of Tax Debts: December 5, 2022 - Bulletin Print Report; K failed to file income tax returns when due for 1997 and 2000. Nor did he pay the taxes that were owed. In March 2003, the I.R.S. assessed the tax believed to be due for 1997....

Deeded Property Subject To Inheritance Tax: December 5, 2022 - Bulletin Print Report; The parties stipulated decedent "deeded" the property to C by a series of deeds from 1992 to 1995. The parties further stipulated decedents continued to control and f...

Mayo Clinic Is An "Exclusively Educational Organization": December 5, 2022 - Bulletin Print Report; In 1965, the I.R.S. determined that Mayo Clinic, ("MC") was a tax-exempt entity under section 501(c)(3) of the Internal RevenueCode. On February 28, 1969, MC me...

Who Is The "Manufacturer" Of Medical Device?: December 2, 2022 - Volume 16 Issue 229 Print Report; C1 produces "Device" for C2 pursuant to License Agreement. Device is a taxable medical device described in Sec. 4191(b) of the Code. Sec. 48.0-2(a)(4)(i) of the Manuf...

Challenge To Mandatory Repatriation Tax Dismissed: December 2, 2022 - Bulletin Print Report; Appellants' Petition for Rehearing En Banc is DENIED. Four judges dissented. At the Founding, the dissenters noted, for a direct tax to be constitutional, the federal gover...

Tier 1 Railroad Retirement Benefits Are Not Workmen's Compensation: December 2, 2022 - Bulletin Print Report; S worked for 33 years for Metro-North, ("MN"), until hisretirementin 2015. He retired following diagnosis and surgery for colon cancer. Upon his retiremen...

Video Service Not Provided: December 2, 2022 - Bulletin Print Report; In 2008, the Tennessee, ("T"), General Assembly enacted the Competitive Cable and Video Services Act, (the "Act"). The Act requires "any entity...seeki...

General Electric Will Retain 19.9 Percent Of HealthCare Shares: December 1, 2022 - Bulletin Print Report; General Electric Company, ("GE"), announced that its Board of Directors has approved the spin-off of its health care business, ("GE HealthCare"). GE HealthC...

CFC Partners Hold U.S. Property Held By Another Partner: December 1, 2022 - Volume 16 Issue 228 Print Report; USP is the common parent of an affiliated group of corporations that file a consolidated income tax return. Throughout Tax Year 1, USP indirectly wholly owned numerous controll...

When Are Tax Credits "Awarded": December 1, 2022 - Bulletin Print Report; In 2015, plaintiffs, ("Ps"), installed solar panels on their home and received a Residential Energy Tax Credit, ("RETC)", totaling $6,000. Ps' RETC appl...

NASCAR's Receipts Are Not "Sitused" To Ohio: December 1, 2022 - Bulletin Print Report; The Ohio General Assembly enacted the Commercial Activity Tax, ("CAT"), in 2005. The CAT is imposed on "taxable gross receipts for the privilege of doing busines...

PKN Orlen To Acquire Oil And Gas Producer: December 1, 2022 - Bulletin Print Report; One of the world's largest companies, PKN Orlen, recently acquired, as a complement to its oil refining business, the assets, subject to the liabilities, of an oil and gas...

Can We Insure “Exchange” Treatment of Pre-Merger Distributions?: November 30, 2022 - Bulletin Print Report; One of more enduring issues faced by tax advisors who travel in the mergers and acquisitions space is the proper classification, for federal income tax purposes, of what we can...

A REIT's Swap Income Is Not Included in Gross Income: November 30, 2022 - Volume 16 Issue 227 Print Report; TP has elected to be taxed as a Real Estate Investment Trust, (REIT). S is wholly-owned by TP and has elected to be taxed as a "taxable REIT subsidiary" und...

Damages For Emotional Distress Not Excludible From Gross Income: November 30, 2022 - Bulletin Print Report; In September 2009, Chicago State University, ("CSU"), hired T as project director of a federal grant that CSU had received. T expressed concerns to the U.S. Departmen...

Tenancy By The Entireties Equated To Right Of Survivorship: November 30, 2022 - Bulletin Print Report; The As created the Trust on August 17, 2004. The As created the Trust to qualify as a "grantor trust." The Trust provided that the As would be the trustors and truste...

STAR In-Kind Dividend Update: November 29, 2022 - Bulletin Print Report; Following up on yesterday's bulletin, iStar, Inc., ("STAR"), has announced the pr...

Substitution Of Obligor Not A Significant Modification: November 29, 2022 - Volume 16 Issue 226 Print Report; D and C are both Country A corporations. Neither is required to file a U.S. federal incometax return. On Date M, D distributed pro rata to its shareholders all...

Cost Of Performance Properly Used To Determine Fair Value Of Services: November 29, 2022 - Bulletin Print Report; Texas imposes a franchise tax on each taxable entity that does business in the state. A taxable entity's franchise tax obligation is determined by multiplying the "tax...

Premature Attempt To Redeem Delinquent Property Not Penalized: November 29, 2022 - Bulletin Print Report; Plaintiff, ("GK"), purchased a tax sale certificate on a condominium unit in North Bergen, New Jersey, owned by defendant, GC. After waiting the full two years requir...

Recast Transaction Treated As Consecutive Spin-Offs: November 29, 2022 - Bulletin Print Report; Foreign Parent is the parent of a large, worldwide group of business entities. Foreign Parent owns FDE1, which owns FDE 2, which owns FDE 3. Parent is a domestic corporat...

Retroactive Changes To The I.R.C. Produce A State Tax Refund: November 28, 2022 - Bulletin Print Report; A Colorado taxpayer's state income tax liability begins with their "federal taxable income, as determined pursuant to section 63 of the internal revenue code." Th...

STAR To Disburse An "In-Kind" Dividend: November 28, 2022 - Bulletin Print Report; The merger of Safehold, Inc., ("SAFE"), and iStar, Inc., ("STAR"), was already a rather complicated affair. It just got even more complex. To recap, STAR cu...

Absence Of Income Does Not Preclude A Finding Of An "ATB": November 28, 2022 - Bulletin Print Report; Distributing is a privately held corporation engaged in "Business." Business includes conducting research and development activities for the production of Product X a...

One's Only Residence Is His Principal Residence: November 28, 2022 - Volume 16 Issue 225 Print Report; At the time of his mother's passing, petitioner's sister lived in the Elmsford (N.Y.)home (EH), while petitioner lived in a New York City apartment. In...

Pandemic Did Not Excuse Failure To Appeal: November 25, 2022 - Bulletin Print Report; Plaintiff challenges the value of property...for the 2020-21 tax year. Defendant moves to dismiss Plaintiff's appeal of the 2020-21 tax year because plaintiff failed to app...

Payroll And Property Must Be Considered Together: November 25, 2022 - Bulletin Print Report; In 2001, Avnet, Inc., ("AI"), instituted a program to securitize its accounts receivable. It did so by selling its accounts receivable to a wholly owned subsidiary, &...

Waived Dividend Does Not Produce "Constructive" Dividend Income: November 25, 2022 - Volume 16 Issue 224 Print Report; M is an insurance holding company. M has outstanding common stock that is widely-held and publicly traded. M also has outstanding shares of preferred stock consisting...

Taxpayer Denied Special Assessment Ratio: November 25, 2022 - Bulletin Print Report; When a property is classified as residential, it receives a special assessment ratio of four percent, rather than the default six percent ratio. The four percent ratio is appli...

Incentive Payments Are Not A Rebate: November 23, 2022 - Volume 16 Issue 223 Print Report; Auto manufacturers offer "Facility Image Upgrade Programs" (P). To provide an incentive for a dealership to participate in P, a manufacturer may offer "...

Partnerships Are An “Aggregate” For Spin-Off Purposes: November 23, 2022 - Bulletin Print Report

Property Tax Increase Not Subject To Referendum: November 23, 2022 - Bulletin Print Report; The petitioners ask us to decide whether "a property tax increase by a school district is subject to a referendum..." Article VI, section 1 of the Utah Constitution p...

Toyota Prius Prime Not Eligible For Use Tax Exemption: November 23, 2022 - Bulletin Print Report; TP purchased a new 2021 Toyota Prius Prime XLE, (the "Vehicle"), from a Toyota auto dealer...located in Oregon in 2020. It had a Hybrid Synergy Drive System, ("H...

Roadside Services Do Not Alter Or Improve The Vehicle: November 22, 2022 - Bulletin Print Report; B provides...roadside services to drivers in Wyoming, ("W"). B has nevercollected sales tax on these services. The Department of Revenue, ("DOR"), det...

Transportation Companies Not Exempt From Texas Franchise Tax: November 22, 2022 - Bulletin Print Report; S initiated administrative proceedings seeking a refund claim for franchise tax paid... The trial court granted the State's motion for summary judgment and denied S's m...

Purchases Allocated To The Government Not Subject To Sales Or Use Tax: November 22, 2022 - Bulletin Print Report; O is a Wisconsin corporation. O incurred various expenses for indirect materials that were allocated to the "Five Government Contracts." O was assessed UTAor pa...

I.R.S. Reclassifies What Is In Form A Charitable Contribution: November 22, 2022 - Volume 16 Issue 222 Print Report; In 1966, Y, a taxable corporation, paid dividends to its sole shareholder, Z, an organization exempt under Sec. 501(c)(3) of the Code as a charitable organization. In...

Attorney Had Priority Lien Against Qui Tam Funds: November 21, 2022 - Bulletin Print Report; The issue in this False Claims Act, ("FCA"), case is who gets priority over funds obtained through a partial settlement of the case: is it the government...or the pla...

Residential Property Not Held For Investment: November 21, 2022 - Bulletin Print Report; The Trust was created on July 20, 2006 by the Bs to hold title to land, (the "LAp"). The Bs used the LApto collateralize a $3 million mortgage...to finance cons...

The Willens Deal Survey November 2022: November 21, 2022 - The Deal Survey: November 2022 Print Report; Welcome to this month's summary of deals. Full reports on some of these transactions can be found via the link in the description, or by searching the company name in our database.

FNF's "Imperfect" Spin-Off: November 21, 2022 - Bulletin Print Report; Fidelity National Financial, Inc., ("FNF"), has a well-deserved reputation forcreativity both in terms of its capital structure and the ways in which it chooses...

Dominant Motivation Finding Yields Business Bad Debt Deduction: November 21, 2022 - Volume 16 Issue 221 Print Report; In 1980, L founded AFS. The purpose of ASF was to provide and install alternative fuel systems. L was the principal shareholder of AFS. He was also the chairman of th...

Uber's "Safe Rides Fee" Is Subject To Sales Tax: November 21, 2022 - Bulletin Print Report; Beginning April 2014, Riders paid Uber a "Safe Riders Fee" on trips facilitated by and through the Uber App. From July 23, 2012 until March 2014, Uber did not charge...

Contribution Made Within 60 Days Of Withdrawal Is A "Rollover": November 18, 2022 - Volume 16 Issue 220 Print Report; H developed technology in the late 1990s and licensed the technology to several related companies. He made secured loans to two of these companies in 2006 and 2007. T...

A Lease Tax Was Not An Ad Valorem Tax: November 18, 2022 - Bulletin Print Report; L filed suit against P alleging that the parties' lease agreement required P to pay a certain tax imposed by the City of Chicago on the lease of personal property. The circ...

Moving Expense Reimbursement Found To Be Taxable: November 18, 2022 - Bulletin Print Report; On his 2018 Virginia, ("V"), resident individual income tax return, TP claimed a subtraction for moving expenses that were paid for by his employer during the 2018 ta...

The Braves Are Set To Become A Rare "Pure Play" Sports Franchise: November 17, 2022 - Bulletin Print Report; Investors have been anticipating this day for quite some time, and now it has finally arrived. Liberty Media Corporation, ("LMC"), has announced that its board of dir...

Developer Not Entitled To Capital Gains Treatment: November 17, 2022 - Volume 16 Issue 219 Print Report; GB and DD formed GF in September 2002. In November of that year, GF purchased, for approximately $3.2 million, 1,982 acres of land in Florida (the GFp). Petitioners s...

City Had No Right Of Action Against Netflix And Hulu: November 17, 2022 - Bulletin Print Report; The Arkansas Video Service Act, (the "VSA"), establishes a state wide franchising scheme for authorizing video service providers to provide services in political subd...

Reasonable Cause For Failure To File Found: November 17, 2022 - Bulletin Print Report; Taxpayer is a physician with specialties in Critical Care and Cardiology.Between February 1 and June 25, 2021, Taxpayer served in a voluntary deployment to NYC Health + H...

Property Owner Found Exempt From Income Taxes: November 17, 2022 - Bulletin Print Report; C is engaged in the business of selling and developing real estate. C sought an income tax exemption pursuant to R.C. 715.72(Q). The trial court found that C was exempt from in...

MMX Acquisition Appears To Be Taxable: November 16, 2022 - Bulletin Print Report; Triple Flag Precious Metals Corporation, ("TFPM") and Maverix Metals, ("MMX"), each a Canadian corporation, announced that they have entered into a definiti...

Court Enjoins Student Loan Discharge Program: November 16, 2022 - Bulletin Print Report; This case centers on the plaintiff States' request to preliminarily enjoin the Secretary of Education from implementing a plan to discharge student loan debt. The district...

"Bausch & Lomb" Doctrine Prevents a 'B' Reorganization: November 16, 2022 - Volume 16 Issue 218 Print Report; X corporation, ("X"), owned all of the outstanding stock of Y corporation, ("Y"). Y owned in excess of 80 percent of the outstanding stock of Z co...

Court Cannot Entertain Challenge To The "GILTI" Regulations: November 16, 2022 - Bulletin Print Report; Plaintiffs, ("Ps"), challenge regulationseffecting the TCJA's provisions revising the "GILTI" of certain controlled foreign corporations. On June...

Issuer Of Extended Warranties Is An Insurance Company: November 15, 2022 - Volume 16 Issue 217 Print Report; TP is a partnership operating under the laws of State N. TP is engaged in the business of selling equipment to commercial customers. TP is forming a wholly-owned subs...

Responsible Party Tax Assessment Not Time-Barred: November 15, 2022 - Bulletin Print Report; GD, a corporation, operated a bar in Kansas City. T was the owner and an officer of GD before he passed awayin December 2015. The director made additional assessments aga...

Vacation Pay And Termination Pay Subject To Virginia Taxation: November 15, 2022 - Bulletin Print Report; During 2018, Taxpayers, a husband and wife, were residing in Virginia when the husband separated from his Virginia employer. He received both severance pay and pay for unused v...

"Unusual Condition(s)" Requires Revaluation Of Property: November 15, 2022 - Bulletin Print Report; In May 2020, after receiving their 2020 property valuations, the taxpayers sent a letter to Weld County's assessor requesting revaluation of their properties under the unus...

Platform Credits Are Not Subject To Sales Tax: November 14, 2022 - Bulletin Print Report; Company, ("C"), enables people, ("Viewers"), to watch streaming videos on C's Internet-based platform, ("Platform"). Viewers can view real-tim...

Deductions And Credits Denied For Want Of A Profit Motive: November 14, 2022 - Bulletin Print Report; O bought solar lenses through a program created by J. Under the program, J would use the lenses in a new system to generate electricity... J never finished the system. J funded...

Transfer Of Funds To Charity Not Deductible: November 14, 2022 - Volume 16 Issue 216 Print Report; Prior to 1959, the taxpayer was owned by SR (75 percent) and byPB (25 percent). Following SR's death in 1959, his stock was transferred to the SR Foundation...

Retained Shares Used To Satisfy Recently-Incurred Debt: November 14, 2022 - Bulletin Print Report; D retained the "Retained Shares." See section 355(a)(1)(D). D generally will use the Retained Shares to satisfy debt. D has determined that the Retention furthers wha...

A Corporation In "Run-Off" Mode Is Still An Insurance Company: November 11, 2022 - Volume 16 Issue 215 Print Report; On Date 1, the "B" court entered an order finding Taxpayer, (TP), to be "insolvent" and as a consequenceplaced TP into "rehabilitation&...

Any Appeals And Petitions Toll The Statute Of Limitations: November 11, 2022 - Bulletin Print Report; For the six-year period from 1986 through 1991, W did not pay federal income taxes. In October 1994, W late-filed his tax returns for those years. The I.R.S. made tax assessmen...

ALKS To Pursue Spin-Off Of Oncology Business: November 11, 2022 - Bulletin Print Report; Alkermesplc, ("ALKS"), announced approval by its Board of Directors "to explore separating its commercial stage neuroscience business an...

Membership Dues Subject To Sales Tax: November 11, 2022 - Bulletin Print Report; The Club is a federal tax-exempt entity. The Club collected and remitted sales tax on monthly membership dues collected from Club membersand also on charges for meals and...

Pre-Revenue Corporations Are Not Active For Helen Of Troy Purposes: November 10, 2022 - Bulletin Print Report; FA conducts research and product development. FA will acquire all the USC stock from USSHin exchange for newly-issued FA stock pursuant to a reorganization described in s...

An "Induced" Split-Off Is A "True Bargain Transaction": November 10, 2022 - Bulletin Print Report; Although a pro-rata spin-off remains the most popular methodfor a corporation to divest itself, tax-efficiently, of a suddenly incompatible business, some distributing co...

The "Forward Cash Merger" Is Alive And Well In REIT-Land: November 10, 2022 - Bulletin Print Report; An acquisition technique that had, at one time, occupied a prominent place in an investment banker's arsenal, the "forward cash merger," was relegated to relative...

Dividends Qualify For The "Same Country" Exception: November 10, 2022 - Volume 16 Issue 214 Print Report; X is a publicly held domestic corporation. X owns all of the stock of Y, a domestic corporation. Prior to Date 1 of Year 1, X owned all of the stock of Z, a corporation o...

Difficulty Of Care Payments Are Subject To FICA And FUTA Tax: November 9, 2022 - Bulletin Print Report; A parent who is an individual service provider to his or herdisabled child received in-home care payments from a State program. A 2002 Field Service Advisory, 2002 WL 131...

Sale Of Portion Of Business Line Produced "Operational" Income: November 9, 2022 - Volume 16 Issue 213 Print Report; Elan Corporation plc (P) is an Irish public limited company headquartered in Ireland. It is a worldwide pharmaceutical company. P conducted operations through two primary busin...

Section 1398 Does Not Apply To Corporations: November 9, 2022 - Bulletin Print Report; EFI was incorporated in 1991. EFI made a valid election to be treated as an 'S' corporation. Petitioners held a tenpercent interest in EFI, while petitioners'...

Weather Forecasting Services Not Subject To Sales Tax: November 9, 2022 - Bulletin Print Report; TP provides forecasting to its clients. The forecasting may include location specific forecasts, advance notice and assessment of severe weather threats, severe weather alerts,...

IAA To Move North Of The Border: November 8, 2022 - Bulletin Print Report; Ritchie Brothers Auctioneers, Inc., ("RBA"), a Canadian corporation, and IAA, Inc., ("IAA"), a domestic corporation, have entered into a definitive agreemen...

Parent And Subsidiary Not Related At The Relevant Time: November 8, 2022 - Volume 16 Issue 212 Print Report; P owns S. On Date 1, P formed HS, by transferring "$a" to HS in exchange for "b" shares of HS stock. On Date 2, HS filed a registration statement with the S...

Out-Of-State Law Firm Had Substantial Nexus With Washington: November 8, 2022 - Bulletin Print Report; TP is an out-of-state law firm specializing in legal services related to the procurement of patents from the USPTO. TP provides legal services to customers headquartered in Was...

Injectable Medication And Injectable Biologics Are Subject To Sales Tax: November 8, 2022 - Bulletin Print Report; Is the sale at retail of an injectable medication or injectable biologic for use in a hospital or an independent surgery center exempt from sale and use tax under Code section...

Patronage Dividends Excluded From REIT's Gross Income: November 7, 2022 - Volume 16 Issue 211 Print Report; TP elected to be treated as a REIT. TP's primary business is to own and manage timberlands. In Year 1, TP entered into a credit agreement. In Year 5, TP borrowed "$b&q...

The DTA Cannot Consider Facial Constitutional Challenges: November 7, 2022 - Bulletin Print Report; On April 13, 2017, J filed an electronic request for an extension of time within which to file her New York State personal income tax return for 2016. She filed her return on S...

Benefit Of Services Received At A Customer's Residence: November 7, 2022 - Bulletin Print Report; TP provides professional genealogical services to individuals. Audit attributed TP's gross receipts to the state of each customer's residence because Audit determined t...

Unrestricted Right To Income Bars Application Of Section 1341: November 7, 2022 - Bulletin Print Report; The trust was established as a revocable trust. It became an irrevocable trust upon the death of the decedent. Before his death, the decedent transferred his assets to the trus...

Ligand Pharmaceuticals Entrusts OmniAb To A SPAC: November 4, 2022 - Bulletin Print Report; We have seen an inordinate number of special purpose acquisition companies, ("SPACs"), "throw in the towel" and announce their intention to liquidate due to...

Sec. 338(h)(10) Incorporates a Sec. 332 Liquidation: November 4, 2022 - Volume 16 Issue 210 Print Report; P is a domestic corporation that conducts a life insurance business. All of P's stock is owned by H. T is a domestic corporation that conducts a life insurance bu...

Property Tax Payment Service "Relates To Real Property": November 4, 2022 - Bulletin Print Report; TP performs residential real estate property tax payment services for banks, mortgage companies and other financial institutions, ("Lenders"). TP maintains a database...

"Inflation Fees" Are Subject To Sales Tax: November 4, 2022 - Bulletin Print Report; As a result of recent inflationary times, some retailers are adding a separate fee to a customer's invoice or receipt in order to recover some or all of their increased ope...

EMR Should Plan On Incurring A Large "Minimum" Tax Liability: November 3, 2022 - Bulletin Print Report; Emerson Electric Co., ("EMR"), and Blackstone, Inc., ("BI"), announced a transformative transaction that has as its objective the placing of EMR's...

10 Percent "Additional" Tax Imposed on Plan Distributions: November 3, 2022 - Volume 16 Issue 209 Print Report; The taxpayer, W, an individual,had beena full-time employee of the Association of American Medical Colleges (AAMC) from March 1, 1981 until her retirement...

Interest On "MBS" Subject To "B&O" Tax: November 3, 2022 - Bulletin Print Report; TP is a financial institution. TP earned interest income on investments in mortgage-backed securities, ("MBS investments"), and home equity conversion mortgage-backed...

ABMD Shareholders Will Receive CVRs: November 2, 2022 - Bulletin Print Report; Johnson & Johnson, ("JNJ"), and Abiomed, ("ABMD"), announced that they have entered into a definitive agreement under which JNJwill acquire, throu...

EMR To Employ Leveraged Partnership Divestiture Technique: November 2, 2022 - Bulletin Print Report; On October 30, 2022, Emerson Electric Co., ("EMR"), "BCP Emerald," a Delaware limited partnership formed by investment funds managed by affiliates of Blacks...

Stock Dividend Costs Are Capital In Nature: November 2, 2022 - Volume 16 Issue 208 Print Report; TP is a public utility organized under the laws of West Virginia. Its stock is widely held and it consistently paid cash dividends to shareholders. To retain addition...

Post-Transfer Stock Dividend Includible In Gross Estate: November 1, 2022 - Volume 16 Issue 207 Print Report; In January 1979, D, the decedent, gratuitously transferred 500 shares of stock of X to A. The stock of X is publicly traded. In December 1979, X declared a stock divi...

Refunds Are Not Final Determinations: November 1, 2022 - Bulletin Print Report; Before their marriage on May 16, 2015, petitioners, ("Ps"),separately enrolled in health insurance for taxable year 2015 through ALIC, which they purchased thro...

Student Loan Relief Plan Did Not Cause Injury: November 1, 2022 - Bulletin Print Report; Plaintiff is a Pell Grant recipient who has taken out federal student loans. To pay back his student loans, plaintiff utilizes an income-driven program and intends to seek forg...

Flagstar Is Not Sure How Its Special Dividend Will Be Characterized: October 31, 2022 - Bulletin Print Report; In May 2021, New YorkCommunity Bancorp, Inc., ("NY"), and Flagstar Bancorp, Inc., ("FB"), entered into a definitive merger agreement pursuant to which...

Statutory Conversion Not Subject To Real Estate Transfer Tax: October 31, 2022 - Volume 16 Issue 206 Print Report; In 1969, ABCRT was formed as a Massachusetts Business Trust to hold a single piece of real estate located in New Hampshire. The sole beneficiary of the trust is XYZLP...

Rare Approval Of Alternative Apportionment Method Granted: October 31, 2022 - Bulletin Print Report; In 2019, TP received a favorable ruling authorizing the use of an alternative apportionment method. C1 is a partnership. C1H, formerly C2, is a disregarded limited liability co...

Employees Not "Injured" By Employer's Failure To Remit Withheld Taxes: October 31, 2022 - Bulletin Print Report; Plaintiffs, ("Ps"), worked as delivery drivers for E, a service provider for FedEx. Ps allege that their supervisor told them he was withholding part of their weekly...

Leased Employees Not Included in Payroll Factor: October 28, 2022 - Volume 16 Issue 205 Print Report; TP is an out-of-state holding company which owns a 100 percent membership interest in several limited liability companies. The limited liability companies are disrega...

Receipts From Sale Of Goodwill Excluded From Sales Factor: October 28, 2022 - Bulletin Print Report; Historically, C1's operations consisted of three operating segments: (1) Industry 1 and Industry 2, (2) Industry 3, and (3) Retail. Vital to this petition are C2's comp...

Production Tax Credits Are Intangible Property: October 28, 2022 - Bulletin Print Report; In 2015, KW began construction of a wind farm. The total fair cash value in both counties was $458,003,507. KW filed an appeal. KW sought to have Production Tax Credits, ("...

MSGE's Spin-Off Features A "Retention": October 27, 2022 - Bulletin Print Report; Madison Square Garden Entertainment Corporation, ("MSGE"), announced that it has "confidentially submitted an initial Form 10 Registration Statement with the S.E...

"Equity Of Redemption" Does Not Delay Worthless Stock Deduction: October 27, 2022 - Volume 16 Issue 204 Print Report; A corporation became insolvent and all of its assets were sold in October 1970 under a foreclosure proceeding for the amount of the company's bonded debt. At that...

Strike Three For Disney: October 27, 2022 - Bulletin Print Report; Petitioner, ("P"), licensed intellectual property to affiliates organized under the law of foreign countries in exchange for royalty payments. P deducted royalty paym...

Premium Tax Credit Cannot Be Used As An Income Tax Credit: October 27, 2022 - Bulletin Print Report; BC has been a certified mutual insurance company...engaged in the business of issuing accident and health insurance plans. As such, BC is subject to and pays the Premium Tax. L...

The Willens Deal Survey October 2022: October 26, 2022 - The Deal Survey: October 2022 Print Report; Welcome to this month's summary of deals. Full reports on some of these transactions can be found via the link in the description, or by searching the company name in our database.

"Conduit" Does Not Have Unreported Income: October 26, 2022 - Volume 16 Issue 203 Print Report; In 2001, MK and his brother bought a home in Minnesota for $141,000. In 2004, MK's brother transferred his interest in the home to MK. In 2006, MK decided to refi...

LLY Will Use CVRs As Merger Consideration: October 26, 2022 - Bulletin Print Report; Eli Lilly & Co., ("LLY"),and Akouos, Inc., ("AKUS"), recently announced a definitive agreement pursuant to which LLY will acquire all of the stock...

"Submit" Means "Receive" And Not Merely "Transmit": October 26, 2022 - Bulletin Print Report; Plaintiff, ("P"), owns rental properties in H. On or before April 15, 2016, the assessor provided P with forms on which to disclose P's income and operating expen...

Gift of Stock Before Liquidation Not Recast: October 25, 2022 - Volume 16 Issue 202 Print Report; On April 1, 1986, the directors of C Corporation, (C), adopted a plan of complete liquidation to be effective on that date. Foundation, (F), was incorporated on April...

Reasonable Cause For Untimely Filing Not Shown: October 25, 2022 - Bulletin Print Report; Appellants, ("APPs"),hired a professional accounting firm to file their 2016 tax returns. APPs reviewed the return prior to the extended due date and authorized...

Failure To Limit "Clientele" To Those In Need Doomed Property Tax Break: October 25, 2022 - Bulletin Print Report; P is a tax-exempt charitable organization for federal tax purposes that owns real property, (the "Property"). P provides "flexible financing" for the develo...

Sec. 905(c) Applies In Terms Of U.S. Dollars: October 24, 2022 - Volume 16 Issue 201 Print Report; Petitioner, (P), had its principal office at Philadelphia, PA,and engaged primarily in the operation of an aircraft design facility in the U.K. For fiscal year...

Underpayment Penalties Could Not Be Abated: October 24, 2022 - Bulletin Print Report; Petitioners are Delaware residents who seek an abatement of a penalty arising from petitioners' failure to pay the proper amount of estimated income taxes for 2019. For man...

Confirmation Of Chapter 11 Plan Does Not Lift Automatic Stay: October 24, 2022 - Bulletin Print Report; Respondent issued petitioners a notice of deficiency for taxyear 2011 on July 7, 2016. Shortly thereafter, petitioners filed the petition with this court challenging resp...

Employment Verification Services Are Not Taxable: October 21, 2022 - Bulletin Print Report; Petitioner, ("P"), operates an employment screening business. P provides screening services for its clients including verification services and drug screening service...

Registrar And Transfer Agent Fees: October 21, 2022 - Volume 16 Issue 200 Print Report; A corporation listed its capital stock on a registered stock exchange and appointed botha registrar and a transfer agent to whom fees were paid "to take ca...

Equitable Title Taken Without Just Compensation: October 21, 2022 - Bulletin Print Report; Oakland County took title to plaintiffs' homes under the Michigan General Property Tax Act, (the "Act"), which prescribed the process for tax foreclosures. If tax...

STOR's Merger Consideration Should Not Be Subject To Withholding Tax: October 21, 2022 - Bulletin Print Report; As we previously reported, STORE Capital Corporation, ("STOR"), a real estate investment trust, ("REIT"), and GIC and Oak Street announced that they have en...

CLR Is "Going Private": October 20, 2022 - Bulletin Print Report; The family, led by HGH, (the "Founder"),which owns approximately 83 percent of the stock of Continental Resources, Inc. ("CLR"), has decided that it w...

I.R.S. Applies Sec. 856(c)(5)(J) To Preserve REIT Status: October 20, 2022 - Volume 16 Issue 199 Print Report; A (or TP) is a real estate investment trust (REIT). TP owned "a" properties and leased "b" properties from third parties. As of Date 1, approximat...

Tax Debts Are Excepted From Discharge: October 20, 2022 - Bulletin Print Report; Debtor, ("D"), filed a case under chapter 13 of the Bankruptcy Code on February 11, 2009. It was converted to a case under chapter 11 on March 2, 2010. On August 12,...

Amounts Collected Not Valid Advances And Reimbursements: October 20, 2022 - Bulletin Print Report; Taxpayers operated a full-service advertising agency in the State of Washington. Sales tax was collected from clients. However, Taxpayer remitted no retail sales tax to the Dep...

Phoenix Suns Owner Robert Sarver’s $10 Million Fine Should Be Deductible: October 19, 2022 - Bulletin Print Report; In a recent article, Richard L. Fo...

Settlement Proceeds Constituted Additional Consideration For Stock: October 19, 2022 - Volume 16 Issue 198 Print Report; Each of two trusts owned 250 shares of MS's outstanding stock. There were outstanding 76,543 shares of common stock of MS, of which some 97 percent were owned by HC and his...

Certain Credit Reporting Services Are Taxable: October 19, 2022 - Bulletin Print Report; Credit rating agencies perform services by assigning a rating to entities or debt obligations indicating the likelihood that debts will be repaid. Agencies may rate the creditw...

Business Interruption Insurance Payments Treated As Qualifying Income: October 19, 2022 - Bulletin Print Report; TP intends to elect to be taxed as a real estate investment trust, ("REIT"). TP owns and operates its properties through OP, a limited partnership. OP owns and leases...

Warrant Exchanges In "Overlap" Transactions: October 18, 2022 - Bulletin Print Report; It appears that the demise of special purpose acquisition companies, ("SPACs"), widely predicted in the popular press, has been greatly exaggerated. SPAC acquisitions...

Apparel Corporations Properly Filed On A Combined Basis: October 18, 2022 - Volume 16 Issue 197 Print Report; ITH owned all the stock of each of ITU and MAC. ITH, in turn, was owned by ITH SpA, an Italian clothing company based in Milan, Italy. ITH performed various services for ITU an...

Personal Information Service Not Subject To Sales Tax: October 18, 2022 - Bulletin Print Report; Y is a Delaware corporation. Its principal place of business is Massachusetts. Y's mission is to "help companies sell smarter." During the audit period, Y offered...

Taxpayer Relegated To "Standard" Deduction: October 18, 2022 - Bulletin Print Report; Solvay Chemicals, Inc., ("S"),mines trona from an underground mine. Much of the trona is processed into soda ash. S sells the soda ash in two forms. The majorit...

Borrowing Property Does Not Create Indebtedness: October 17, 2022 - Volume 16 Issue 196 Print Report; Y is described in Sec. 501(c)(3) of the Code. Y proposes to invest in funds that will be treated as partnerships. The main activity of these funds will consist of investing in...

A "GO" Zone Is Not A Texas "Enterprise" Zone: October 17, 2022 - Bulletin Print Report; C operated a petrochemical production facility. C's facility was designated as a Project as part of the Texas Enterprise Zone Program, ("Program"). C submitted an...

Digital Images Not Subject To Sales Tax: October 17, 2022 - Bulletin Print Report; To engage B's wedding photography services, clients contracted for one of E's packages. Every package included the transfer of digital images via a DVD or flash drive....

Bank Had No "Taxes Imposed" Within The Taxable Year: October 17, 2022 - Bulletin Print Report; US is a member of a consolidated group of affiliates owned by USB. US is subject to South Dakota's bank franchise tax, ( the "SD BFT"). The tax is applied to a fi...

New Accounting Proposal for Crypto Assets: October 14, 2022 - Bulletin Print Report; It looks like FASB has decided to change the manner in which "crypto" assets are accounted for. Currently, these assets are treated as "indefinite lived intangibl...

KR And PCI Will Form A Behemoth: October 14, 2022 - Bulletin Print Report; Just days after rumors started circulating about a potential deal, The Kroger Co., ("KR"), and Albertsons Companies, Inc., ("AC") announced this morning tha...

Safehold Will Be The Acquired Corporation In An "Upstream Merger": October 14, 2022 - Bulletin Print Report; Safehold, Inc., ("SAFE"), and iStar, Inc., ("STAR"), each a real estate investment trust, ("REIT"), engagedin the business of acquiring,&nbs...

Repurchase Tax Not Limited To “Conventional” Redemptions: October 14, 2022 - Bulletin Print Report

The "Origin of the Claim" Determines Deductibility of an Outlay: October 14, 2022 - Volume 16 Issue 195 Print Report; On November 3, 1956, B-W Corporation, (BW), filed a complaint against Corporation A, (A), alleging thatcertain inter-company correspondence between BW and A con...

Parking Spaces Are "Accommodations": October 14, 2022 - Bulletin Print Report; Prior to June 5, 2019, section 40-26-1, Ala. Code 1975, provided: "There is levied and imposed...a privilege or license tax upon every person...engaging in the business of...

No Reasonable Cause For Failure To Substantiate Contributions: October 13, 2022 - Bulletin Print Report; P served as the Director of African and Oceanic Art at Sotheby's from 2006-2015. In 2011, P decided to make a substantial contribution to the Minneapolis Institute of Art,...

Securities Lending Constitutes "Effecting Transactions in Securities": October 13, 2022 - Volume 16 Issue 194 Print Report; Each Fund, (F), is a widely-held foreign entity treated as an association and engaged in investment in stocks and securities in the United States. Each F trades its s...

Operator Of "Platform" Need Not Collect And Remit Rental Receipts Tax: October 13, 2022 - Bulletin Print Report; Taxpayer is a "peer-to-peer" car sharing platform headquartered in California. Taxpayer operates a technology platform that enables vehicle owners, (the "hosts&q...

California Residence Preceded Sale Of Stock: October 13, 2022 - Bulletin Print Report; From 2008-2011 APP remained domiciled in Tennessee, ("T"). On November 1, 2012, C and EE entered into a Purchase Agreement for the sale of EE. C subsequently redeemed...

GE's Plans For Spin-Off Of GE Healthcare Clarified: October 12, 2022 - Bulletin Print Report; General Electric Company's plan to divide itself into three independent publicly traded companies is now coming into sharper focus. GE's filing of the Form 10 with resp...

Vessels Not Engaged In Interstate Or Foreign Commerce: October 12, 2022 - Volume 16 Issue 193 Print Report; Petitioner, (P), is in the business of transporting crushed stone, brick, and sand for its parent, CII, which manufactures and sells crushed stone. P's activities which are...

Philip Morris USA, Inc. Denied North Carolina Export Credits: October 12, 2022 - Bulletin Print Report; In 1999, the North Carolina, ("NC") General Assembly enacted the Export Credit Statute granting cigarette manufacturers a tax credit based on the number of cigarettes...

Only "Owners" Can Claim Historic Rehabilitation Tax Credits: October 12, 2022 - Bulletin Print Report; FIS is a block of adjoining buildings in downtown Toledo, Ohio. Prior to the summer of 2016, Plaintiffs, ("Ps"), owned a number of the buildings in this row. In July...

Therapeutic Devices Sold To Medical Providers Are Subject To Sales Tax: October 12, 2022 - Bulletin Print Report; TP is a multinational medical device and health care company that manufactures Product A. Product A is a device used by medical providers in diagnostic evaluation and monitorin...

MSGS Will Pay A "Special Dividend": October 11, 2022 - Bulletin Print Report; Madison Square Garden Sports Corporation, ("MSGS"), the owner of the New York Knicks and New York Rangers, announced that its board of directors has declared a specia...

"Boot Relaxation Rule": October 11, 2022 - Volume 16 Issue 192 Print Report; X entered into a plan of reorganization with Y. Pursuant to the plan, X transferred all of its assets to Y in exchange for voting stock of Y and the assumption by Y o...

Absence Of Tax Opinion Elicited Penalties From Illinois: October 11, 2022 - Bulletin Print Report; This court previously ruled that PepsiCo's decision to create PGM LLC to be the corporate home for its expatriates lacked economic substance and business purpose. Prior to...

Service Not Adequate To Satisfy Due Process Clause: October 11, 2022 - Bulletin Print Report; The assessor mailed TP a request for income and expense information pursuant to N.J.S.A. 54:4-34, otherwise known as "Chapter 91," via certified mail on September 15,...

Shareholder Withdrawals Did Not Constitute "True" Debt: October 10, 2022 - Volume 16 Issue 191 Print Report; C is a corporation engaged in an ongoing business. The stock of C consists of 135 shares of common stock, of which A and B, ahusband and wife, owned 117 shares....

Taxpayer Did Not Purchase A Contract To Perform Capital Improvements: October 10, 2022 - Bulletin Print Report; On December 8, 2015, petitioner made a purchase from J. Petitioner describes the items purchased from J as "completed kitchen cabinetry." Petitioner sought aref...

Lack Of Duly Filed Refund Claim Warranted Dismissal Of Suit: October 10, 2022 - Bulletin Print Report; CS has suffered from Stage IV pulmonary sarcoidosis since 2003. Consequentially, CS has been considered permanently disabled by the State of Ohio since 2006. On May 22, 2019, P...

Rental Property Not Eligible For Four Percent Assessment Ratio: October 10, 2022 - Bulletin Print Report; In 2018, Petitioners purchased their home in Georgetown County. The Assessor denied Petitioners' request to be taxed at the four percent residential assessment rate for 202...

Debt Cancelled "By Operation Of Law": October 7, 2022 - Volume 16 Issue 190 Print Report; BBC was incorporated on October 21, 1946. During her life, the deceased maintained a running loan account with the corporation. The deceased and B, her husband, filed...

Membership Fees Are Deductible From "Base Rent": October 7, 2022 - Bulletin Print Report; TP operates a members-only workspace where paying members utilize offices, desks, meeting rooms, and collaborative spaces. TP provides four levels of membership. Upon joining,...

Protective Services At A Construction Site Are Subject To Sales Tax: October 7, 2022 - Bulletin Print Report; As required by local law, petitioner, a developer, engaged the services of a company for the provision of "guard and protective services" at a building construction s...

"CRAT" Distributions Treated As Ordinary Income: October 7, 2022 - Bulletin Print Report; During 2015-2017, petitioners, ("Ps"), were actively engaged in the farming business. In July 2015, Ps formed a charitable remainder annuity trust, ("CRAT I"...

"Underneath" Bank Mergers Satisfy Continuity Of Interest Requirement: October 6, 2022 - Bulletin Print Report; Provident Financial Services, Inc., ("PFS"),the parent of Provident Bank, ("PB"), and Lakeland Bancorp, Inc., ("LBI"),the parent of La...

Properly Issued Notice Of Deficiency Presumed Correct: October 6, 2022 - Volume 16 Issue 189 Print Report; In accordance with Sec. 6103(d) of the Internal Revenue Code, the Division of Taxation (the Division) received information from the I.R.S. that indicated that petitio...

Trust Found To Be A "Non-Resident" Trust: October 6, 2022 - Bulletin Print Report; Trust was created for the benefit of the child of "Settlors" under a trust agreement between Settlors and the Initial Trustee. The beneficiary of the Trust is... (the...

Excess APTC Is A Tax Liability: October 6, 2022 - Bulletin Print Report; During 2017, petitioners were enrolled in health insurance provided by HMOL, which they purchased through the HIM. Petitioners' health insurance premium was $1,524 per mont...

Pennsylvania Recognizes Sec. 338(h)(10) Elections: October 4, 2022 - Volume 16 Issue 188 Print Report; CA, a Pennsylvania corporation, is a wholly-owned subsidiary of CB. CA owns all of the issued and outstanding stock of CC, a New York corporation. CC owns all of the...

"POB" Fees Are Part Of "Selling Price": October 4, 2022 - Bulletin Print Report; TP sells cannabis. Audit determined that the $4.00 fee, (the "POB Fee"), should be includedin the retail selling price in transactions using TP's POBs...

Judicial Decisions Are Given Full Retroactive Effect: October 4, 2022 - Bulletin Print Report; Plaintiffs owned real property within Kent County. Defendants foreclosed on the real property pursuant to the General Property Tax Act, ("GPTA"), because of delinquen...

Division Of Jointly-Owned Property Subject To "REET": October 4, 2022 - Bulletin Print Report; In 2018, G1 and G2, ("Grantors"), transferred property, ("Property"), to Grantee. Grantors explained that Grantors and Grantee owned six properties together...

Prior Spin-Off "Reopened": October 3, 2022 - Volume 16 Issue 187 Print Report; In 1977, C was a wholly owned subsidiary of D. On December 13, 1977, D decided it would distributeC stock to all its shareholders as of that same date. No prior...

Paper Machines Found To Be "Fixtures" Subject To "REET": October 3, 2022 - Bulletin Print Report; T transferred property to TP and in the process became its parent. The Department determined that the true value of the real property transferred was $550,000 and assessed real...

Software Developer Manufactured Tangible Personal Property: October 3, 2022 - Bulletin Print Report; TP is in the business of creating software platforms. TP has subscriptions to certain data provided by third party vendors. TP's products are developed on computers. The so...

Advance Payments Of Section 367(d) Annual Inclusions Not Permitted: October 3, 2022 - Bulletin Print Report; USP owns FC. In Year 1, USP transfers intangible property with an expected useful life of ten years to FC solely in exchange for stock in FC in a section 351 exchange to which...

SPAC's Early Liquidation Avoids Repurchase Tax: September 30, 2022 - Bulletin Print Report; Liberty Media Acquisition Corporation, ("LMAC"), a special purpose acquisition company, ("SPAC"), filed a preliminary proxy statement relating to a special...

Domestic Partnership Can Avail Itself of Sec. 168(g)(4)(G): September 30, 2022 - Volume 16 Issue 186 Print Report; TP is an LLC organized under the laws of State 1. TP has not elected to be treated as an association taxable as a corporation. ...

Judicial Exemption Is As Good As A Statutory Exemption: September 30, 2022 - Bulletin Print Report; In 2015, 2016, and 2017, PV owned a solar power facility whose output went only to municipal properties used for public purposes. During these tax years, the Legislature exempt...

Tax Court Refuses To Make Election On Taxpayer's Behalf: September 30, 2022 - Bulletin Print Report; In 2012, CJ was an 'S' corporation owned equally by C and J. In 2014, P was a partnership owned equally by L, C, DT and AT. In 2012, CJ owed $108,965 in property taxes...

Claim For Credit Of Overpayment Not Timely Filed: September 30, 2022 - Bulletin Print Report; Taxpayers, ("TPs"), filed their 2017 tax return on July 14, 2020, and they requested that their overpayment be carried forward. The request was denied. R.I. Gen. Laws...

Commissions Included In Taxable Gross Receipts: September 29, 2022 - Bulletin Print Report; MetroPCS, ("M"), was a cellular telephone service provider that offered a prepaid cellular telephone service to its customers. APP, an authorized M dealer, operated m...

Transfer Of Investment Assets Always A "Device" Factor: September 29, 2022 - Volume 16 Issue 185 Print Report; P has been engaged in the active conduct of two businesses, Business Q and Business R, throughout the past five years. For bona fide business reasons, P is required t...

The Underlying Document Controls For Sales Tax Purposes: September 29, 2022 - Bulletin Print Report; Taxpayer, a restaurant and hotel located in Virginia, was audited for sales and use tax compliance. During the examination, the auditor concluded that Taxpayer's rental pay...

Retired Employees Can Be Admitted To A "VEBA": September 29, 2022 - Bulletin Print Report; Taxpayer, ("TP"),was formed in Year 1. TP has periodically received determinations from the Internal Revenue Service that it is a voluntary employees' benef...

BHVN Update: September 28, 2022 - Bulletin Print Report; Biohaven Pharmaceutical Holding Company, Ltd., ("BHNV"), announced that the closing date of the acquisition by Pfizer, Inc. of BHVN, ("the Merger"), is expec...

Cleveland Cannot Tax A Non-Resident Working From Home: September 28, 2022 - Bulletin Print Report; Plaintiff, ("P"), lives in Blue Bell, Pennsylvania, and is employed by A, a biotech company located in Cleveland, Ohio. Prior to the COVID-19 pandemic, P usually ...

Assumption Of Contingent Stock Obligation Approved: September 28, 2022 - Volume 16 Issue 184 Print Report; Pursuant to a plan of reorganization, all of the stock of Y was acquired by X solely in exchange for voting stock of X. Because of the inability of the parties to agr...

Inversion Averted: September 28, 2022 - Bulletin Print Report; Partners and Foreign Founders, all of whom are individuals, together own all of the interests in FP1 and FP2, each treated as a partnership. FP 2 owns certain interests in FP3....

"Buyer's Remorse" Not Sufficient To Create "Standing": September 28, 2022 - Bulletin Print Report; A donor-advised fund, ("DAF"), is a charitable giving vehicle thatallows donors to take a present-year tax deduction, while distributing the funds to charity at...

Taxpayer Did Not Maintain Permanent Place Of Abode In NYC: September 27, 2022 - Volume 16 Issue 183 Print Report; TP is domiciled in Tennessee. TP and her family are observant orthodox Jews. The community where TP lives is not large enough to sponsor a suitable religious high sch...

Pass-Through Entities Found Liable For Withholding Tax: September 27, 2022 - Bulletin Print Report; LC is a Delaware limited partnership with its principal location in Los Angeles. All of the partners were residents of California, Washington, and Alaska. R is a California gen...

Forgiven PPP Loans Includible In Gross Income: September 27, 2022 - Bulletin Print Report; For both rounds of Paycheck Protection Program, ("PPP"), loans, ("covered loans"), the lender may forgive, and the SBA may guarantee, the full principal amo...

Disabled Veteran Did Not Serve "In Time Of War": September 27, 2022 - Bulletin Print Report; Plaintiff is the owner of the property at 259 Fairview Avenue, Lawnside, New Jersey, (the "subject property"). Plaintiff was in active service with the United States...

Steel City's "Jock" Tax Is Patently Unconstitutional: September 23, 2022 - Bulletin Print Report; Defendant instituted a "Non-Resident Sports Facility Usage Fee," ("Facility Fee"). Under this program, non-residents of Pittsburgh, ("P"), who use...

Gain From Sale Of Interest In NY Partnership Not NY Source Income: September 23, 2022 - Volume 16 Issue 182 Print Report; Petitioner, (P), is a Georgia limited partnership. The general partner of P is J, a Georgia general partnership. J has a three percent interest in P. On September 27,...

Bookstore's "Memberships" Are Subject To Sales Tax: September 23, 2022 - Bulletin Print Report; Books-A-Million, Inc., ("B"), is a retail bookstore operating thirteen locations throughout South Carolina. Customers of B can become members in the so-called "M...

Carfax Does Not "Manufacture" Vehicle History Reports: September 23, 2022 - Bulletin Print Report; Carfax, Inc., ("C"), is engaged in the business of selling Vehicle History Reports, ("VHRs"), to consumers and dealers. A VHR is a report generated for a sp...

The Willens Deal Survey September 2022: September 22, 2022 - The Deal Survey: September 2022 Print Report; Welcome to this month's summary of deals. Full reports on some of these transactions can be found via the link in the description, or by searching the company name in our database.

I.R.S. Finds Substantiality Test Is Substantially Complied With: September 22, 2022 - Volume 16 Issue 181 Print Report; UST is a domestic corporation. UST is engaged in Business C with significant interests in the U.S., Europe, and Asia. UST has issued and outstanding shares of common stock, as...

Penalties Need Only Be Approved Before They Are "Assessed": September 22, 2022 - Bulletin Print Report; K failed to report cash transfers from a former business partner. The I.R.S. concluded that the transfers should have been reported as taxable income. On August 6, 2012, the I....

Durable Medical Equipment Found Subject To Sales Tax: September 22, 2022 - Bulletin Print Report; Taxpayer supplies a device/durable good (an anesthesia machine) for all in the medical profession, including healthcare/hospitals and dental offices. This device can be used by...

California Proves Unsympathetic To "Bottom-Dollar" Guaranties: September 22, 2022 - Bulletin Print Report; A partnership liability can, under certain circumstances, be treated as a recourse liability with respect to a partner who has guaranteed said liability. The tantalizingq...

Lottery Winner Cannot Avoid NYS Tax: September 21, 2022 - Volume 16 Issue 180 Print Report; In 1984, P, a resident of New York State, was a Jackpot Winner in the New York State Lotto Game. P was advised by a letter from the Director of the New York State Lottery: &quo...

"Carried Interest" Not Derived From Connecticut Sources: September 21, 2022 - Bulletin Print Report; AG was domiciled in New York State and City during 2014 and 2015. AG received a schedule K-1 as a partner of Hildene Holding Company, ("H")... The K-1 reported ordina...

Claim For Refund Barred By California Statute Of Limitations: September 21, 2022 - Bulletin Print Report; On June 16, 2011, the Social Security Administration determined that APP was disabled. On March 28, 2005, FTB issued a a Notice of Proposed Assessment, ("NPA"), propo...

Section 172(b)(3) Election Is Also Applicable For NYS Tax Purposes: September 21, 2022 - Bulletin Print Report; Petitioner, ("P"), filed a New York resident income tax return for 2007, dated March 10, 2010, reporting tax due in the amount of $19,414.00. P filed a New York resid...

ADT, Inc.'s Redemption Is Part Of A Larger Transaction: September 20, 2022 - Bulletin Print Report; ADT, Inc. is inviting its shareholders, including its controlling shareholder, Apollo Global Management, Inc., to tender shares of its common stock at a price of $9 per share....

Calculating "Repurchase Premium": September 20, 2022 - Volume 16 Issue 179 Print Report; PR, a C corporation, acquired S3 in Year 1 when the latter's assets were valued at "$c". When S3 was acquired, P became the new holding company, and S3...

Expenses Not Found To Be "Ordinary And Necessary": September 20, 2022 - Bulletin Print Report; In 2013, 2015, and 2016, H was employed as a sales agent for A, a manufacturer of audio recording equipment and software. In 2017, H was employed as a sales agent for U, a manu...

Expenses To Place Property In Efficient Condition Must Be Depreciated: September 20, 2022 - Bulletin Print Report; Plaintiffs, ("Ps"), purchased a commercial property in Klamath Falls, Oregonin April 2018. Ps intended to renovate the property and then rent the space to fledg...

Retroactive Tax Rate Increase Not Unconstitutional: September 19, 2022 - Volume 16 Issue 178 Print Report; On three separate dates in May, 2004, Mr. Charles DeMuth (CD) sold a total of 110,000 shares of stock ofHudson City Bancorp (HCB) which resulted in a net gain o...

"Reservation Fees" Are Deductible In Months When Gas Is Transported: September 19, 2022 - Bulletin Print Report; WPX produced natural gas from wells in the Powder River Basin. To transport this gas, WPX's affiliate, M, entered into long-term, firm transportation service agreements wit...

Non-Resident Not Required To Make Declaration Of Estimated Tax: September 19, 2022 - Bulletin Print Report; Plaintiff, ("P"), is a non-resident of Oregon. She neither earned wages subject to Oregon withholding nor had any business or trade connected with Oregon. In 2019, P...

"FBA" Merchants Need Not Collect And Remit Sales Tax: September 19, 2022 - Bulletin Print Report; Section 202(a) of the Tax Code, 72 P.S. section 7202(a), imposes a six percent tax "upon each separate sale at retail of tangible personal property or services." Purs...

STOR's Purchasers In Line For A Basis Step-Up: September 16, 2022 - Bulletin Print Report; STORE Capital Corporation, ("STOR"), an internally-managed, "net lease," real estate investment trust, ("REIT"), and GIC, in partnership with with...

Fraud Penalties and Earnings And Profits: September 16, 2022 - Volume 16 Issue 177 Print Report; Rev. Rul. 107, C.B. 1953-1, 178, holds that fraud penalties recommended against a corporation should not be allowed as liabilities for the purpose of determining the amount of...

Careless Investor Did Not Sustain A Theft Loss: September 16, 2022 - Bulletin Print Report; On July 28, 2008, H won a bid and purchased a leasehold interest in certain property, (the "R sublease"), for $6,330,350. H anticipated that the R sublease would enti...

Credit Or Refund Of Overpaid Estimated Taxes Denied: September 16, 2022 - Bulletin Print Report; Plaintiffs, ("Ps"), made 18 estimated payments during the relevant tax years totaling $875,000. Despite making substantial estimated payments during those years, Ps d...

New R&D Capitalization Rules Wreak Havoc On Free Cash Flow: September 15, 2022 - Bulletin Print Report; In the past, a taxpayer was permitted to treat research or experimental expenditures...as expenses "which are not chargeable to capital account." The expense...

Alternative Method Of Basis Recovery Approved: September 15, 2022 - Volume 16 Issue 176 Print Report; TP is a partnership for tax purposes. TP owns 100 percent of the membership interests of CA, a disregarded single member limited liability company. CA owned 100 percent of the...

Closing Agreement Did Not Prohibit Assessment Of Interest: September 15, 2022 - Bulletin Print Report; The parties agreed Plaintiff, ("P"), had a $7,466,599 deficiency for the 2012 tax year, but no deficiencies for years 2010, 2011, and 2013. The parties entered into a...

Extension Of Time To Make A Section 382(l)(5)(G) Election Granted: September 15, 2022 - Bulletin Print Report; Taxpayer is the common parent of an affiliated group of corporations that files consolidated federal income tax returns, (the "Taxpayer Group"). Taxpayer has represen...

Transfer Restrictions Do Not Create A Second Class Of Stock: September 14, 2022 - Volume 16 Issue 175 Print Report; X has two classes of stock outstanding: voting common stock and nonvoting common stock. The nonvoting common stock is held by A, B, C, siblings, and by D, an unrelated individu...

"Must" And "Shall" Are Not Permissive: September 14, 2022 - Bulletin Print Report; W owns a parcel of real estate in PC. The assessor changed the valuation of the property for the 2018 tax year and again for the 2019 tax year, and sent W a notice of the valua...

REIT's Distributions Treated As Made From Earnings And Profits: September 14, 2022 - Bulletin Print Report; Taxpayer, ("TP"),elected to be treated as a real estate investment trust, ("REIT"), under sections 856 through 860 of the Internal RevenueCode....

Apportioning Litigation Revenues: September 14, 2022 - Bulletin Print Report; BPM is a law firm. The present appeal revolves around the apportionment of revenues that BPM received from insurance companies for providing two distinct services: (1) client a...

How Will SPACs Fare Under The New "Repurchase" Tax?: September 13, 2022 - Bulletin Print Report; The Inflation Reduction Act, (the "Act"), recently signed into law by President Biden, introduces into the tax law an excise tax imposed on the act, by a covered corp...

Bonus Depreciation Properly Claimed: September 13, 2022 - Volume 16 Issue 174 Print Report; TP worked full-time as a high school teacher. TP's uncle told him that one Johnson (J) had an agreement to lease vehicles to the federal government, but that J needed inves...

Two Separate Real Property Transfers Found: September 13, 2022 - Bulletin Print Report; A developer, ("PU"), buys commercial property located in New York City, (the "Property"), for a total purchase price of $100 million, (the "Total Consi...

Split-Off "Acquisitions" Are Disregarded For Section 355(e) Purposes: September 13, 2022 - Bulletin Print Report; D is a closely-held corporation that operates Business A. D has made an election to be treated as an 'S' corporation. D has a single class of common stock outstanding....

Royalties Found To Be Self-Employment Income: September 12, 2022 - Volume 16 Issue 173 Print Report; During the years 1931-1966, an individual wrote and had published 28 books for which he has receivedroyalties. The term, self-employment income, means the "...

Lower RPTT Rate Applies To Sale Of Combined Co-Op Units: September 12, 2022 - Bulletin Print Report; New York City property records show that cooperative apartment units were purchased from separate sellers by Taxpayer. Taxpayer states that the two units were physically combin...

Employee's Travel Expenses Not Allowed As A Deduction: September 12, 2022 - Bulletin Print Report; P has over 30 years of experience working for, or being associated with, non-profit organizations. P served as the executive director of CHJ. CHJ provided educational services...

Appreciation Interest Ruled Deductible: September 12, 2022 - Bulletin Print Report; On August 31, 2006, B organized WTS, a limited liability company, in order to purchase and operate a parcel of commercial real property, (the "Rp"). D purchased an in...

Acquisition Indebtedness: September 9, 2022 - Volume 16 Issue 172 Print Report; F is exempt from tax under Sec. 501(c)(3) of the Internal Revenue Code and is a private foundation under Sec. 509(a). F has n...

Replacement Income Has The Same Character As What It Is Replacing: September 9, 2022 - Bulletin Print Report; Taxpayers own and operate a shrimp boat in the Gulf of Mexico. Taxpayers were residents of Florida. The percentage of shrimp caught by Taxpayer which were sold in Alabama over...

PTC Not Available For "COBRA" Months: September 9, 2022 - Bulletin Print Report; After his employment was terminated in 2015, S purchased "COBRA" continuation health insurance coverage through his former employer. Ps maintained their COBRA coverag...

Social Security Benefits Replacing Disability Benefits Are Taxable: September 9, 2022 - Bulletin Print Report; In 2019, the Commissioner of Internal Revenue determined that M had under-reported her Social Security income on her 2016 Federal income tax return. The Commissioner issued her...

Constellation Brands Revises Its "Reclassification" Agreement: September 8, 2022 - Bulletin Print Report; Constellation Brands, ("STZ" or the "Company"), has two classes of common stock outstanding, Class A common stock and Class B common stock. The classes are...

Outbound Spin-Off: September 8, 2022 - Volume 16 Issue 171 Print Report; FP operates Global Business, which includes Business X and Business Y. FP owns all of the stock of D, a domestic corporation incorporated in State A that was formed o...

Foreign Worker's "Tax Home" Was Not Iraq: September 8, 2022 - Bulletin Print Report; P was offered a position in Iraq with T. That employment lasted from May 23, 2014, until August 21, 2015, when he left Iraq to begin working in Egypt. While P was in Iraq, his...

Donation Of Appreciated Property Goes Terribly Awry: September 8, 2022 - Bulletin Print Report; In 2015, Burbank was a limited partnership existing for the purpose of owning and operating a single hotel property, (the "Hotel"). K was a limited partner in Burbank...

How To Apportion E&P To Distributions: September 7, 2022 - Volume 16 Issue 170 Print Report; M files its income tax return on the basis of a calendar year. On July 1, 1973, M redeemed for cash 25 percent of its outstanding common stock in a transaction that q...

Settlement Payments Did Not Compensate For Physical Injuries: September 7, 2022 - Bulletin Print Report; P worked for PFIas a sales representative. P was hospitalized for acute gastrointestinal bleeding, ("AGB"), and a resulting heart attack. P's AGB was unrela...

Embolization Product Not Exempt From Sales Tax: September 7, 2022 - Bulletin Print Report; APP is a medical corporation... One of the products APP sells is a hydro coil system used for embolization. A catheter with a metallic occludingcoil is inserted into an a...

Unauthorized Insurance Company Exempt From Corporate Income Tax: September 7, 2022 - Bulletin Print Report; L is a Vermont corporation that is a wholly-owned subsidiary of Macy's Inc., ("M"). L is a "captive" insurance company and provides insurance for M'...

"Cohan" Rule Could Not Be Applied: September 6, 2022 - Bulletin Print Report; Respondent determined a deficiency in P's federal income tax and an accuracy-related penalty for 2016. On June 6, 2012, P purchased a home in Southampton, New York. P title...

401(k) Plan Was Not A "Qualified Joint And Survivor Annuity": September 6, 2022 - Bulletin Print Report; Plaintiff, ("P"), was married to G from 2011 until his death on May 15, 2021. G participated in W's 401(k) retirement plan. P was the sole beneficiary of G's...

Mandatory Statutes Trump Permissive Ones: September 6, 2022 - Bulletin Print Report; Property taxes are based on the assessed value of property as determined by county assessors. See RCW 84.40.030. Property owners may challenge assessors' determinations in...

Outside Basis Not Recoverable By NY Non-Resident: September 6, 2022 - Volume 16 Issue 169 Print Report; Petitioner, (P), was a resident of Colorado in 2005. He filed a New York State nonresident and part-year resident personal income tax return claiming a long-term capi...

Commodity Futures Contracts Are Not Treated As Inventory: September 2, 2022 - Bulletin Print Report; Texas imposes a franchise tax on businesses based or operating in the state. Franchise tax liability is calculated by multiplying a business's "taxable margin" by...

Retirement Funds Subject To Garnishment: September 2, 2022 - Bulletin Print Report; In 2017, G was convicted of Conspiracy to Commit Wire Fraud and Conspiracy to Commit Securities Fraud. At the time G so conspired, he was a partner at K and served as R's o...

Expenses In Defending Patent Infringement Claims Are Deductible: September 2, 2022 - Bulletin Print Report; Between 2008 and 2009, W defended itself in Hatch-Waxman, ("HW"), litigation involving seven different Abbreviated New Drug Applications, ("ANDA"), with Par...

Income Attributable To Prior Services Is Self-Employment Income: September 2, 2022 - Volume 16 Issue 168 Print Report; The corporation in questionhas a policy of appointingindividuals who have served as members of its board ofdirectors for a period of 20 years to the...

WARR Is Liquidating: September 1, 2022 - Bulletin Print Report; Warrior Technologies Acquisition Company, ("WARR"), a special purpose acquisition company, ("SPAC"), that was unable to accomplish its mission, i.e., to com...

Reorganization Was The Origin Of The Claim: September 1, 2022 - Volume 16 Issue 167 Print Report; AG manufactures and sells cement. Before December 31, 2000, V owned approximately 2/3 of the outstanding AG stock. V also owned LRC, a ready-mix cement company. V was...

Absence Of “Residential Interest” Precludes NYS Resident Status: September 1, 2022 - Bulletin Print Report; Petitioners, (“Ps”), j...

Virginia Does Not Permit A Subtraction Modification For "Subpart F Income": September 1, 2022 - Bulletin Print Report; Taxpayer, ("TP"), was a non-resident of Virginia, ("V"), who had an ownership interest in an 'S' corporation that had V taxable income during the 20...

Practicing Attorney Treated As Professional Fiduciary: August 31, 2022 - Volume 16 Issue 166 Print Report; TP is engaged in the private practice of law. In addition to incomederived from his practice, TP receives income as trustee of 12 separate trusts that he admini...

The Section 72(t) "Exaction" Is Not A Penalty: August 31, 2022 - Bulletin Print Report; P was an employee of the State of New York and was a member of the State's pension plan. In 2015, at the age of 42,she borrowed from her pension account. She did not...

Charges For Use Of Fitness Facility Are "Retail Sales": August 31, 2022 - Bulletin Print Report; Taxpayer, ("TP"), operates a fitness facility, (the "gym"). TP offers access to the gym to customers in exchange for a membership fee. Members also have acc...

Venue Of Voter Registration And Driver's License Proved Decisive: August 31, 2022 - Bulletin Print Report; In 2013, Petitioners, ("Ps"),acquired residential property in Frankfort, Michigan, (the "BRP"). Ps filed a "PRE" affidavit which was approve...

"Return Of Capital" Distribution Taxable For State Tax Purposes: August 30, 2022 - Volume 16 Issue 165 Print Report; Plaintiffs own common shares in Capstead Mortgage Corporation (CMC), a REIT. Pursuant to a resolution adopted by its board of directors, CMC paida cash distribu...

Recycling Machines Not Eligible For Industrial-Processing Exemption: August 30, 2022 - Bulletin Print Report; Plaintiff, ("P"), sells and leases the container-recycling machines commonly found in grocery stores and also sells repair parts for those machines. These machines ac...

Current Liabilities Are Not Subject To "Add-Back": August 30, 2022 - Bulletin Print Report; Taxpayer conducts operations within the United States through its U.S. Branch, (the "U.S. Branch"). For federal income tax purposes, the Taxpayer reports the activity...

NBC Universal Is An "Interstate Broadcaster": August 30, 2022 - Bulletin Print Report; N owned and operated news and entertainment television networks. N's news and entertainment network consisted of N's owned and affiliated television stations, as well a...

Debentures Not "Subordinated" Under Sec. 279(b)(3): August 29, 2022 - Volume 16 Issue 164 Print Report; A is the common parent of an affiliated group of corporations filing a consolidated return. B, C, and D were the other members of the affiliated group. On Date 2, A a...

Alaska Tax Statute Not Unconstitutionally Vague: August 29, 2022 - Bulletin Print Report; N is the parent entity of the U.S. group. Alaska, ("AS"), law requires corporations doing business in ASto file corporate income tax returns and to pay tax on i...

"Alimony In Gross" Cannot Be Deducted: August 29, 2022 - Bulletin Print Report; TP and his former wife entered into a separationagreement, (the "Agreement"). The Agreement provides, inter alia, "The Husband shall con...

JBLU/SAVE Tax Guidance Is Equivocal: August 25, 2022 - Bulletin Print Report; JetBlue Airways, Corporation, ("JBLU"), and Spirit Airlines, Inc., ("SAVE"), have entered into a definitive merger agreement pursuant to which JBLU has agre...

A Liquidating Trustee Is Not A Section 505 Trustee: August 25, 2022 - Bulletin Print Report; On June 3, 2019, GUE Liquidation Companies, Inc. and certain affiliated entities, (the "Debtors"), filed voluntary petitions under chapter 11 of the Bankruptcy Code....

Vessel Engaged In Interstate Commerce: August 25, 2022 - Volume 16 Issue 163 Print Report; Petitioner (P) is a corporation that charters vessels to its clients for parties and fishing expeditions. Usually, P's vessels depart from Port Jefferson, NY. How...

Tax Payment Requirement For Protesting Assessment Was Relaxed: August 25, 2022 - Bulletin Print Report; By judgment dated June 4, 2021 (and mailed June 9, 2021), the Board issued a judgment affirming the assessment of $835,000 imposed on the Subject for tax year 2021. The deadlin...

Private Equity Holding Company Had No "Nexus" With Detroit: August 24, 2022 - Bulletin Print Report; This case was remanded by the Court of Appeals for reconsideration of the issue of "nexus" in light of South Dakota v. Wayfair, Inc., 138 S.Ct. 208...

Transfer Of Stock To Settle Claims Is A Disposition Thereof: August 24, 2022 - Volume 16 Issue 162 Print Report; XMC was the investment advisor to various Z Mutual Funds. XMC was merged into a subsidiary of Y, XXMC. The shareholders of XMC received Y stock. &...

Entireties Property Not Exempt From The Bankruptcy Estate: August 24, 2022 - Bulletin Print Report; M filed for Chapter 7 bankruptcy on July 16, 2021. He listed among his property a home, (the "Property"), which he and wife own together as "tenants by the entir...

The Willens Deal Survey August 2022: August 23, 2022 - The Deal Survey: August 2022 Print Report; Welcome to this month's summary of deals. Full reports on some of these transactions can be found via the link in the description, or by searching the company name in our database.

Director Not Engaged In A Trade Or Business: August 23, 2022 - Volume 16 Issue 161 Print Report; In 1947, DP struck up a friendship with JK. In 1955, DP became a director of U, an insurance company, at the request of JK and "out of friendship for him." JK was the...

Will AMMO, Inc. Use The "Expansion" Doctrine?: August 23, 2022 - Bulletin Print Report; AMMO, Inc., the owner of GunBroker.com, the largest online marketplace serving the firearms and shooting sports industries, and a leading vertically integrated producer, design...

Building Materials Purchased By "Contractor" Subject To Sales Tax: August 23, 2022 - Bulletin Print Report; In addition to selling manufactured homes to tenants, Taxpayer also provided additions such as steps, carports, skirting, sun rooms, sheds, garages, driveways, and parking pads...

Convertible Subordinated Debentures Free Of Sec. 279 Taint: August 22, 2022 - Volume 16 Issue 160 Print Report; In 1985, TP, a corporation, borrowed "$x" from financial institutions. The loans are not subordinated and are not convertible into stock of TP. Of the "$x,"...

Rental Of Office Space Not Subject To Sales Or Use Tax: August 22, 2022 - Bulletin Print Report; Taxpayer, a Virginia business entity, provides temporary office space, shared workspace, meeting rooms, business address and mailbox services, and live phone answering services...

Section 3102(b)'s Indemnity Obligation Includes Attorneys' Fees: August 22, 2022 - Bulletin Print Report; The Hospital employed the Residents enrolled in ACGMEat a medical college known as the Hospital's Weill Cornell Campus. In August 2013, two groups of Residents filed...

Beneficial Owner Of Foreign Account Must File An "FBAR": August 22, 2022 - Bulletin Print Report; K was born and grew up in Buffalo, New York. After completing college, K moved to Greece. K and her father went to Zurich and opened two accounts with UBS. K's name is on b...

Our Proposal For How The JBLU/SAVE Deal Should Be Taxed: August 19, 2022 - Bulletin Print Report; JetBlue Airways Corporation, ("JBLU"), as everyone is now aware, has entered into a definitive agreement pursuant to which JBLU, assuming it secures the necessary reg...

No FTHBC For Property Acquired From Family Member: August 19, 2022 - Volume 16 Issue 159 Print Report; JM, the mother of KM, purchased the K property on May 1, 2007. She has permitted KM and his wife, MM, to live in the home located on the property rent-free since shortly after...

Loans Or Advancements Are Not "Liabilities": August 19, 2022 - Bulletin Print Report; BCBSAis a national association of 35 independently owned and locally operated Blue Cross Blue Shield, ("BCBS"), companies, which collectively provide health ins...

"Studio" Units Are Not Individual Residential Condominium Units: August 19, 2022 - Bulletin Print Report; TP, a Delaware limited partnership, was the owner of a residential condominium unit, ("Apartment Unit"), in Manhattan. TP was also the owner of two "Studio Units...

Acquired By Inheritance: August 18, 2022 - Volume 16 Issue 158 Print Report; Petitioner, (L),is a grandson of MBL who died in 1931, leaving as her heirs four surviving children and L and his brother who were sons of a deceased daughter o...

Arrangement Was Properly Classified As A Foreign Trust: August 18, 2022 - Bulletin Print Report; In 2005, JR formed the EF as a Stiftung, ("S"), under the laws of Liechtenstein, ("L"). EF's purpose is to provide education and gene...

Dwelling Eligible For Reduced Assessment Ratio: August 18, 2022 - Bulletin Print Report; In 2014 or 2015, S and her husband renovated a structure on the same property as S's legal residence, expanding it from a 400-square foot structure to a structure comprisin...

Bulk Purchase Of Durable Medical Equipment Subject To Use Tax: August 18, 2022 - Bulletin Print Report; Taxpayer operates a dental practice specializing in dental implants. As a result of an audit, Taxpayer was assessed consumer use tax due to the purchase of prosthetic devices a...

Sales Tax Assessed On Purchases By Employees Of Charity: August 17, 2022 - Volume 16 Issue 157 Print Report; TP disputes the assessment of sales tax. In Utah, sales tax is imposed on certain transactions including "retail sales of tangible personal property made within the state....

Transfer Of Condominium Units Exempted From "RPTT": August 17, 2022 - Bulletin Print Report; A limited liability company, (the "Sponsor"), owns a residential condominium building, (the "Building"). The Sponsor is owned by four members, (the "Me...

Solar Energy System Not Exempt From Property Tax: August 17, 2022 - Bulletin Print Report; SS's equipment, (the "Equipment"), is located on property owned by CU. SS and CU entered into an agreement which gave CU the option to purchase the Equipment... T...

WHR And EMR Advertise Vastly Different Multiples of EBITDA: August 17, 2022 - Bulletin Print Report; Whirlpool Corporation, ("WHR"), announced that it has entered into a definitive agreement with Emerson Electric Co., ("EMR"), to acquire EMR's "ISE...

Trustee And Revocable Trust Are Not "The Same Consumer": August 16, 2022 - Bulletin Print Report; On February 14, 2020, TP, an individual, purchased a motor vehicle. The invoice lists TP as the buyer. TP registered the vehicle in his personal name with the Department. At th...

Redemptions Do Not "Spoil" a 'B' Reorganization: August 16, 2022 - Volume 16 Issue 156 Print Report; Acquiring Corporation (AC) has only a single class of voting common stock outstanding. That stock iswidely-held and publicly-traded.For the purpose of fac...

Ascertaining Alaska Air's "Transportation Revenue": August 16, 2022 - Bulletin Print Report; Alaska Airlines, Inc., ("A") was an airline that provided air transportation services to passengers to more than 100 cities... Horizon Air Industries, Inc., ("H&...

New York Moves To "Codify" The Goldman Sachs "Petershill" Decision: August 16, 2022 - Bulletin Print Report; In Matter of Goldman Sachs PetershillFund Offshore Holdings (Delaware) Corporation, TAT(E) 16-9 (GC), New York City Tax Appeals Tribunal, (March 12, 20...

Father's Stock Attributed To Each Of His Sons: August 15, 2022 - Volume 16 Issue 155 Print Report; The petitioner, a corporation, sold, on December 15, 1941, 20 shares of BMC to HWH for $1,000. Its basis in the stock was $2,000. It sold on the same day 250 shares o...

Resident Taxed On Community Property Of Non-Resident's Income: August 15, 2022 - Bulletin Print Report; Husband, ("H"),was a California, ("C"), non-resident who resided and was domiciled in Texas, ("T"). H earned out-of-state wage income throug...

AMC To Distribute "Preferred Equity Units": August 15, 2022 - Bulletin Print Report; Never a dull moment when it comes to the machinations of AMC Entertainment Holdings, Inc., ("AMC"). On August 4, 2022, the company announced that its Board of Directo...

Legitimate Business Activity Found In Post-Tax Profit Pursuit: August 15, 2022 - Bulletin Print Report; In 2004, Congress created a refined-coal tax credit. AJG formed a new subsidiary, C. C's business model made economic sense only by accounting for the tax credit.&...

"Reverse" Termination Fee Ruled A Capital Loss: August 12, 2022 - Bulletin Print Report; In ILM 202224010, February 24, 2022, the "Agreement" provided for TP's acquisition of T. TP and T later decidedto terminate the Agreement; and TP paid to T...

SPAC Merger Said To Satisfy "COBE" Requirement: August 12, 2022 - Bulletin Print Report; Holisto Ltd., an Israeli corporation,has decided to engage in a business combination with a special purpose acquisition company, (a "SPAC"), by the name of Mori...

Imputed Interest Income Is Non-Business Income: August 12, 2022 - Volume 16 Issue 154 Print Report; Utah taxable income means apportioned income plus non-business income allocable to Utah net of related expenses. Business income means income arising from transaction...

Payments That Survive Death Are Not "Alimony": August 12, 2022 - Bulletin Print Report; A and E married in 1984. On February 4, 2008, A and E entered into a Marital Termination Agreement, ("MTA"). Two weeks later, the court entered its Judgment and Decre...

Interest Accruing After Delivery Date Belongs To Buyer: August 11, 2022 - Volume 16 Issue 153 Print Report; X, a dealer in municipal bonds, purchased certain municipal bonds on September 1, 1972. On September 15, 1972, X agreed to sell the bonds, and delivered a written con...

XOM's Agreements Were Mineral Leases: August 11, 2022 - Bulletin Print Report; The Qatari agreements grant Exxon, ("E"), rights to explore the North Field. In exchange for mineral rights, E must extract gas and pay Qatar, ("Q"), royalt...

I.R.S. Relaxes Requirements For A Section 754 Election: August 11, 2022 - Bulletin Print Report; A prime example of the dominance of the "aggregate" (as opposed to the "entity") theory of partnership taxation is the election afforded partnerships by sec...

Missouri's Challenge Of "ARPA" Is Dismissed On "Standing" Grounds: August 11, 2022 - Bulletin Print Report; The American Rescue Plan Act of 2021, Pub. L. No. 117-2, ("ARPA"), which was enacted in March 2021, appropriates over $200 billion to states, territories, and tribal...

Returning Escrowed Stock Can Give Rise To Gain Or Loss: August 10, 2022 - Volume 16 Issue 152 Print Report; In January 1976, X acquired substantially all of the assets of Y, subject to its liabilities, in exchange for 150 shares of X voting common stock in a transaction tha...

Wind Turbines Found To Be Real Property: August 10, 2022 - Bulletin Print Report; The principal issue in this appeal is whether wind turbines used for the generation of electricity, and their associated equipment, are properly classified as real property pur...

Online Advertising Does Not Create Nexus: August 10, 2022 - Bulletin Print Report; C, a remote seller of shoes, clothing, and accessories via the internet, does not have employees or representatives that travel within the Commonwealth, nor does C own or lease...

Freight Broker Is Not Subject To The Lower Public Utility Tax: August 10, 2022 - Bulletin Print Report; E is a freight broker; it contracts with motor carriers and customers "to facilitate and coordinate the transportation of goods" nationally. The Department of Revenue...

SARs Are Not Options For Purposes Of Sec. 302: August 9, 2022 - Volume 16 Issue 151 Print Report; Company, (C), is a State X corporation whose stock is widely-held and publicly traded. A, B, and C (the Executives) are executives of C. C signed employment agreement...

Taxpayer Was Not An "Urban Transit Hub": August 9, 2022 - Bulletin Print Report; J contests M's assessment of a non-residential development fee against the Subject Property. The statute imposes "a fee...on all construction resulting in non-resident...

IS's Shareholders Are Offered Tax Advice: August 9, 2022 - Bulletin Print Report; Unity Software, Inc., ("U"), and ironSource Ltd., ("IS"), a corporation organized under the laws of Israel,are planning a business combination in conn...

COVID-19 Did Not Cause An "Access Interruption": August 9, 2022 - Bulletin Print Report; Utah Code Ann. section 59-2-103 provides for the assessment of property as follows: "All tangible property...shall be assessed and taxed at a uniform and equal rate on the...

3M Chooses A Split-Off In Connection With Its "RMT" Transaction: August 8, 2022 - Bulletin Print Report; 3M Company, ("3M"), decided to dispose of its Food Safety business via a "Reverse Morris Trust," ("RMT"), transaction. In an RMT transaction, the...

Senate Approves New Minimum Tax And "Repurchase" Tax: August 8, 2022 - Bulletin Print Report; H.R. 5376, the so-called "Inflation Reduction Act of 2022," contains two new tax initiatives, each of which promises to have importantimplications for investors...

Ascertaining The Basis Of Replacement Property: August 8, 2022 - Volume 16 Issue 150 Print Report; In 1976, unimproved land with a basis of $60x that was held for investment by the taxpayer, an individual, was condemned, and $300x was paid to the taxpayer by the co...

Payment Processing Services Are Not Subject To Sales Tax: August 8, 2022 - Bulletin Print Report; Taxpayer, ("TP"), offers a payment card management program, ("PCMP"). The PCMPoffers customers the ability to manage and customize debit and prepaid c...

Member Of Affiliated Group Deemed To Have Filed Form 1122: August 5, 2022 - Bulletin Print Report; Parent acquired Sub 1, a non-life insurance company, on Date 4. On Date 5, Parent timely filed an initial consolidated return for the taxable year ending Date 3. Parent filed t...

Disregarded Entity's Personal Property Subject To Local Property Tax: August 5, 2022 - Bulletin Print Report; BP was a Virginia limited liability company whose sole member was DR. BP owned coal and fuel oil situated in the town of Somerset, ("T"), that was used in connection...

PFE's Interest Expense Need Not Be "Added Back": August 5, 2022 - Bulletin Print Report; PTI filed a 2012 tax return in Ireland and reported the $658 million in interest that PTIreceived from Pfizer, Inc., ("TP"), as income on that return. TP acknow...

Income From "Rabbi Trust" Is Business Income: August 5, 2022 - Volume 16 Issue 149 Print Report; M is a Mississippi corporation with operations in several states, including Missouri (MO). In 1988, M established a deferred compensation plan (the Plan) for a group...

Lessor Denied Sales Tax Credits: August 4, 2022 - Bulletin Print Report; G is a fleet management company that leases fleets of vehicles to businesses. G entered into lease agreements for motor vehicles ("Leased Vehicles") to businesses in...

Timely Protest Bars Discharge Of Tax Indebtedness: August 4, 2022 - Volume 16 Issue 148 Print Report; On February 23, 1988, the California Franchise Tax Board (FTB) sent B a notice of proposed tax assessment for the tax years 1983 and 1984. In response, B's attorn...

Pre-Litigation Notice Of Intent To Foreclose Ruled Sufficient: August 4, 2022 - Bulletin Print Report; In 2005, HNT purchased three contiguous parcels of real property. Property tax payments on all three parcels became delinquent. Lien holders, ("Ls"), each purchased a...

Vertical Division Of A Single Business Passes Muster: August 4, 2022 - Bulletin Print Report; Distributing is an 'S' corporation. Distributing manages and operates a single business, Business A. Distributing has one class of common voting stock. Sibling A is a t...

The Limits Of The "Convertibility" Test: August 3, 2022 - Volume 16 Issue 147 Print Report; In Date A, TP's wholly-owned subsidiary, NS, acquired assets of OP, consisting of the stock of its wholly-owned subsidiary, OS, and other assets. In order to rais...

Equipment Not Found To Be "Fixtures": August 3, 2022 - Bulletin Print Report; This appeal involves the classification for tax purposes of various equipment associated with grain storage bins. The equipment was bolted to the storage bins. The district cou...

SHLX's "Roll-Up" Will Likely Produce Ordinary Gain: August 3, 2022 - Bulletin Print Report; Over the past few years, we have witnessed numerous "roll-ups" of MLPs. In a roll-up, the general partner/sponsor acquires the publicly held partnership units and, in...

Profit Motive Alone Does Not Indicate A Business: August 3, 2022 - Bulletin Print Report; The Commissioner issued a use tax assessment against BG relatedto the title transfer of nine vehicles in 2010. The Commissioner assessed AM a total tax due of $305,109.47...

Attribution Rules Apply Even Without Actual Ownership: August 2, 2022 - Volume 16 Issue 146 Print Report; In 1958, GC transferred 66 shares of C&R to R for $19,800. He reported a long-term capital gain on this sale. The I.R.S. was of the view that the proceeds should...

MTZ's Stock Will Be Taxable: August 2, 2022 - Bulletin Print Report; MasTec, Inc., ("MTZ"), and Infrastructure and Energy Alternatives, Inc.,("IEA"), announced that they have entered into a definitive agreement under wh...

WLL/OAS Deal Features Unusual Payout By The "Issuing" Corporation: August 2, 2022 - Bulletin Print Report; Whiting Petroleum Corporation, ("WLL"), and Oasis Petroleum, Inc., each a domestic oil and gas exploration and production company,("OAS"), recently an...

NortonLifeLock's "Occasional Sale" Treated Harshly By Illinois: August 2, 2022 - Bulletin Print Report; In the summer of 2019, NortonLifeLock, Inc., ("NLOK"), then known as SymantecCorporation, ("SC"), announced that it had reacheda transformative...

Tax Liability Not Discharged In Bankruptcy: August 1, 2022 - Volume 16 Issue 145 Print Report; Appellant (AP) and her husband filed a timely California tax return for 2008. The couple reported taxable income of $81,953 and tax of $2,359. Later, the Franchise Ta...

Claims For Refund Are Not "Evidences Of Indebtedness": August 1, 2022 - Bulletin Print Report; In their 2018 state and federal tax return, filed on March 31, 2020, the Ws elected to apply their tax refunds to the subsequent tax year's return. They made the same elect...

Activities Did Not Constitute "Significant Participation Activities": August 1, 2022 - Bulletin Print Report; TP, through multiple grantor trusts, wholly owns C, an 'S' corporation. C owned multiple entities, the activities of which are treated as separate un-grouped activities...

Boot In A Single Entity Reorganization: July 29, 2022 - Volume 16 Issue 144 Print Report; X has outstanding 420 shares of voting common stock of which A owned 120 shares and B, C, and D each owned 100 shares. X adopted a plan of recapitalization that permitted a sha...

A Revised Piece Of Tax Legislation Emerges From The Ashes: July 29, 2022 - Bulletin Print Report; To everyone's surprise, it appears that the odds of tax legislation in this session of Congress has increased substantially now that Senator Manchin (D. W.Va.) has agreed t...

"Judicial Admission" At Trial Supports FBAR Penalty Assessment: July 29, 2022 - Bulletin Print Report; B held two bank accounts with UBS. He disclosed neither to the Federal Government until 2008, despite his accountant telling him he was breaking the law by failing to note a fo...

Gain On Sale Of Partnership Interest Is Not Distributive Share: July 28, 2022 - Bulletin Print Report; TP, commercially domiciled in City, is a subsidiary of C1 in Country 1. TP has Illinois, ("I"), nexus. TP acquired a minority and limited partner interest in a partne...

The Inevitability Of Dividends: July 28, 2022 - Volume 16 Issue 143 Print Report; During the years 1950-1952, N was the parent of an affiliated group. The group included N's three wholly-owned subsidiaries, a 99.24 percent controlled subsidiary, RE, and...

Trade-In Credit Denied: July 28, 2022 - Bulletin Print Report; G is a Delaware statutory trust that transacts business in Nebraska, ("N"). It purchases motor vehicles and then leases them to customers in N. As a lessor, G elected...

Only the "Acquiring Corporation" Can Assume Liabilities in a 'C': July 27, 2022 - Volume 16 Issue 142 Print Report; X Corporation, (X), owns Y Corporation, (Y). X proposed to acquire all of the properties of Z Corporation, (Z). X and Z enter...

Tax Refund Traceable To Social Security Benefits Is Exempt: July 27, 2022 - Bulletin Print Report; On February 24, 2022, D, ("D"), filed a Chapter 7 bankruptcy petition. After the petition date, D received an income tax refund of $5,536 for the 2021 tax year. On hi...

Assessment Based On Fraud Was Time-Barred: July 27, 2022 - Bulletin Print Report; Taxpayer's appeal involves final assessments of 2007 though 2013 Alabama individual income tax that were entered by the Alabama Department of Revenue, (the "Department...

Presence Of "Financial Disability" Not Found: July 27, 2022 - Bulletin Print Report; Plaintiff, ("P"), alleges she filed her 2012, 2013, and 2014 tax returns late on April 12, 2019, because she suffered mental and physical impairments from an abusive...

JEF Will Spin-Off Vitesse Energy, Inc.: July 26, 2022 - Bulletin Print Report; Jefferies Financial Group, Inc., ("JEF"), as it periodically does, announced that it has adopted a plan to restructure its businesses. The most recent announcement is...

Holder Of Life Estate "Owns" Property: July 26, 2022 - Volume 16 Issue 141 Print Report; Petitioner's (P) husband, R, owned a home before he and P married. R passed away in August 2011. His will provided P with a life estate in the home, and provided his...

California Bifurcates Non-Resident's Sale Of A Partnership Interest: July 26, 2022 - Bulletin Print Report; 1. Non-resident partner A owns a 49 percent interest in ABC Partnership, ("ABC"). ABC's business is carried on wholly within California. ABC's assets include...

Child-Related Contingency Precludes Alimony Deduction: July 26, 2022 - Bulletin Print Report; A and C divorced in 2012. On July 25, 2012, the L.A. Superior Court entered a judgment of dissolution that stated: Neither party shall pay child support; Neither party shall pa...

Federal Courts Cannot Enjoin Assessment Of State Tax: July 25, 2022 - Bulletin Print Report; GLF is a non-profit corporation offering various cultural as well as educational services. In 2013, GLF acquired a property in Queens, (the "Property"), and received...

"IRD": July 25, 2022 - Volume 16 Issue 140 Print Report; Mr. Henry C. Bickmeyer, (HB), died on November 15, 1973. At the time of his death, HB owned 489 shares of HBC, Inc., (HBC), and 2,500 shares of HBL, Inc., (HBL)....

Art Gallery Not Operated For Profit: July 25, 2022 - Bulletin Print Report; Appellants, ("APPs"), owned LLC which purchased commercial propertyAKB. APPs reported a gain of $7,524,139 from their sale of AKB. On March 8, 2008, APPs began...

Governor's Proclamation Waives Late Payment Interest: July 25, 2022 - Bulletin Print Report; Taxpayer operates a manufacturing facility located in Washington. The Department of Revenue's Audit Division identified additional business and occupation, ("B&O&q...

"Short" Put Option Can Precipitate A "Wash Sale": July 22, 2022 - Volume 16 Issue 139 Print Report; On December 3, 1984, Mr. A, an individual, sold 100 shares of stock of X corporation (X) and realized a loss with respect to the shares. On December 4, 1984, A sold a...

Concrete Supplier Did Not Install Capital Improvements: July 22, 2022 - Bulletin Print Report; Petitioner is a New York corporation that performs general contracting and concrete placement work for construction projects. Petitioner filed applications for a refund of sale...

Patent Infringement Not A Fifth Amendment Taking: July 22, 2022 - Bulletin Print Report; Dr. F is a licensed attorney and a neurosurgeon who contributed to the development of Diffusion Tensor Imaging, ("DTI"), a magnetic resonance imaging technique that a...

Internet Service Providers Are Not Subject To Virginia's "BPOL" Tax: July 22, 2022 - Bulletin Print Report; In 1998, Congress enacted the Internet Tax Freedom Act, ("ITFA"). The statute places a moratorium on state and local taxes on internet access services. ITFAinit...

The Willens Deal Survey July 2022: July 21, 2022 - The Deal Survey: July 2022 Print Report; Welcome to this month's summary of deals. Full reports on some of these transactions can be found via the link in the description, or by searching the company name in our database.

Power To Vary The Investment Not Found: July 21, 2022 - Volume 16 Issue 138 Print Report; S, a financial services corporation, created an investment trust funded with a fixed portfolio that included a certain issue of tax-exempt debt obligations. The oblig...

UBS Executive Denied Connecticut Resident Tax Credits - Part II: July 21, 2022 - Bulletin Print Report; C joined UBS in 1996. In 1998, he moved to Connecticut, ("CT"), and moved his office from New York City to Stamford, CT. Gradually, however, his time spent performing...

FASB Clarifies Accounting For Stock With Contractual Sale Restrictions: July 21, 2022 - Bulletin Print Report; FASB points out, in Accounting Standards Update, ("ASU")No. 2022-03, June 2022, "Fair Value Measurement of Equity Securities Subject to Contractual Sale Re...

Disgorgement Did Not Serve A Compensatory Purpose: July 21, 2022 - Bulletin Print Report; CZ was the president of FMC. FMC originated and acquired residential mortgages. FMC pooled the mortgages into mortgage backed securities, which were guaranteed by the GNMA and...

Resolving A Conflict Between The Bankruptcy Code And The "TIA": July 20, 2022 - Bulletin Print Report; WPG is a real estate investment trust. This dispute concerns WPG's subsidiary, WPGN. Anoka County, ("AC"), assesses ad valorem taxes on January 2 each year. The t...

Contribution To Capital Not Necessarily A Device: July 20, 2022 - Volume 16 Issue 137 Print Report; P has owned all the stock of S for more than five years. Each has been engaged in the active conduct of a trade or business for more than five years. As a result of a...

SAND And NSR Announce Plan Of Arrangement: July 20, 2022 - Bulletin Print Report; Nomad Royalty Co. Ltd., ("NSR"), and Sandstorm Gold Ltd., ("SAND"), each a corporation organized under the laws of Canada, have entered into an "Arrang...

IRA Distribution Is "Moneys Received": July 20, 2022 - Bulletin Print Report; At issue is whether APP qualifies for the homestead property tax relief program offered pursuant to N.C. Gen. Stat. section 105-277.1. He does not. The County denied APP's...

N.E.A. Has UBTI: July 19, 2022 - Volume 16 Issue 136 Print Report; The National Education Association, (N), and its affiliates are exempt from tax under Sec. 501(a) as Sec. 501(c)(5) labor organizations. Each N member paid dues of $1...

When Is A Gift Of A Check Complete?: July 19, 2022 - Bulletin Print Report; Decedent, ("D"), was domiciled in Pennsylvania, ("PA"), when he died testate on September 11, 2015. In January 2007, D executed a Power of Attorney, ("...

CVRs Can Resolve Valuation Disputes: July 19, 2022 - Bulletin Print Report; In acquisitions in the biotechnology field, it is sometimes difficult to place a value on a target's nascent technology. Manythings have to fall in place, both from a...

Conditions For Section 1059(c)(4) Election Were Met: July 19, 2022 - Bulletin Print Report; Section 1059(a) of the Internal Revenue Code provides that "if any corporation receives any extraordinary dividend with respect to any share of stock and such corporation...

Broadcom Files Preliminary S-4: July 18, 2022 - Bulletin Print Report; Broadcom's preliminary S-4 contains a brief discussion of its expect...

Tardy Tax Payment Forecloses Appeal Of Assessment: July 18, 2022 - Bulletin Print Report; On October 1, 2020, the Board issued a final assessment appraising the fair market value of the property for ad valorem tax purposes. On October 16, 2020, A filed a notice of a...

Sale-Leaseback Did Not Constitute A Mortgage: July 18, 2022 - Bulletin Print Report; TP purchased a gas station for $1,520,000. On the following day, TP sold the gas station to BL for $2,015,200. BL entered into a Lease with TP on the very same day and leased t...

Losses Not Considered In Computing Homeowner's "Income": July 18, 2022 - Bulletin Print Report; At issue is whether APP qualifies for the homestead property tax relief program offered pursuant to N.C. Gen. Stat. section 105-277.1. APP filed an application to participate i...

Nontaxable Annuity Receipts Are Part Of "Disposable" Income: July 18, 2022 - Volume 16 Issue 135 Print Report; For assessment year 2010, for taxes payable in 2011, the Owner applied for a senior citizen property tax exemption under RCW 84.36.379. The Assessor denied the exempt...

Successor Pension Plan Not Deemed To Be In "Critical Status": July 15, 2022 - Bulletin Print Report; Plan A, a multi-employerdefined benefit pension plan, is an eligible multi-employer plan under section 432(k)(3) of the Code. Plan A applies to the PBGCfor special...

"Excess" Tax Sharing Agreement Remittance Is A Dividend: July 15, 2022 - Volume 16 Issue 134 Print Report; Petitioner, (P), was formed by a merger on October 31, 1945 of two other corporations, BLS and BNIC. BLS had three wholly-owned subsidiaries with which it filed conso...

Additional Tax On Amended Return Draws Late Payment Interest: July 15, 2022 - Bulletin Print Report; APPs timely filed a 2017 California income tax return, indicating that rental property destroyed by fire would be replaced with similar property under section 1033 of the Inter...

IRA Found Subject To Garnishment: July 15, 2022 - Bulletin Print Report; In 2018, Defendant was sentenced to a term of imprisonment and supervised release and was ordered to pay restitution in the amount of $185,181.43. On March 18, 2022, the United...

U And IS Announce An "All-Stock" Combination: July 14, 2022 - Bulletin Print Report; Unity Software, Inc., ("U"), and ironSource Ltd., ("IS"), a corporation organized and existing under the laws of Israel,announced that they have enter...

Business Purpose Needed For Gaining Spin-Off Control?: July 14, 2022 - Volume 16 Issue 133 Print Report; X owned 40 percent of the stock of Z. Y owned 60 percent of the stock of Z. All of the stock of each of X and Y was owned by Mr. A. Each corporation had been engaged...

Federal Tax Lien Attaches To Alimony Payments: July 14, 2022 - Bulletin Print Report; Y has asked about the priority of the federal tax lien, (the "FTL"), in a situation where the taxpayer was ordered to pay monthly alimony payments to his ex-wife as a...

I.R.S. Not Precluded From Asserting Excise Tax Liability: July 14, 2022 - Bulletin Print Report; In 1999, P was employed as the president of N. N was a subsidiary of T. T maintained an ESOP. As of 2004, P owned 4,586 shares of stock in the ESOP. He also enjoyed benefits un...

Taxpayer Not "Away From Home": July 13, 2022 - Volume 16 Issue 132 Print Report; Ethel Merman (EM)is a well-known entertainer. She has been in "show business" since 1930, performing mainly in the theater on Broadway. In March 1953,...

Only Apportioned Business Income Is Taxable In California: July 13, 2022 - Bulletin Print Report; APP was a non-resident of California. APP contracted with the CHRBto serve as a HorseRacing Steward in California. Under her contract, APP judged horse races in Cal...

Ticket Broker Need Not Collect And Remit Sales Or Use Tax: July 13, 2022 - Bulletin Print Report; Applicant is a ticket broker located outside Missouri. Applicant acquires and sells tickets to events located within and outside of Missouri. Applicant is unaffiliated with the...

G.M.'s Tax Credit Information Is Subject To Disclosure: July 13, 2022 - Bulletin Print Report; In 1995, the Michigan Legislature the MEGA Act, creating MEGA within the Michigan Strategic Fund, ("MSF"). Pursuant to the Act, refundable tax credits were awarded to...

Pre-Marital NOL Cannot Offset Income Of Spouse: July 12, 2022 - Volume 16 Issue 131 Print Report; AC and LC were married in December 1959. Originally, for the taxable year 1959, they each filed a separate tax return. AC reported adjusted gross income of $8,044.19...

Recycling Not A Bar To Imposition Of New Jersey's "Litter" Fee: July 12, 2022 - Bulletin Print Report; P operates a cardboard manufacturing business which produces shipping containers and displays for sale to its clients. When ready to leave the manufacturing facility, the boxes...

Senior Residential Facilities Were Not "Health Care Facilities": July 12, 2022 - Bulletin Print Report; Taxpayer, ("TP"), is a real estate investment trust, (a "REIT"). TP holds interests in age-restricted senior residential facilities, (the "Facilities&q...

"Failed To Act" Means "Failed To Render A Decision": July 12, 2022 - Bulletin Print Report; On January 26, 2016, N submitted a tax refund claim to S and NN (collectively, the "Collector"). The claim alleged an overpayment of sales and use tax. By letter date...

New York Seeks To Tax More Of Hedge Funder's Deferred Compensation: July 11, 2022 - Bulletin Print Report; In 2017, F and T were non-resident partners of AristeiaHoldings, LP, ("AR"). In 2017, AR recognized non-qualified deferred compensation in the amount of $126,20...

Foreign Currency Not Subject To The Wash Sale Provisions: July 11, 2022 - Volume 16 Issue 130 Print Report; The questionto be consideredis whether foreign currenciesconstitute "securities" within the meaning of Sec. 1091 of the Code, relating to...

Inadequate Tax Reporting Caused A Breach Of Contract: July 11, 2022 - Bulletin Print Report; G purchased at a premium a number of taxable municipal bonds issued by Michigan and Texas that he held in his brokerage account at UBS. His relationship with UBS was governed b...

"MSA" Payments Not Includible In Cost Of Goods Sold: July 11, 2022 - Bulletin Print Report; Petitioners, ("Ps"), are engaged in the business of manufacturing cigarettes. Ps are parties to a Master Settlement Agreement, ("MSA"). The MSA requires the...

Accounting For HTA's Special Distribution: July 8, 2022 - Bulletin Print Report; Healthcare Trust of America, Inc., ("HTA"), announced that its Board of Directors has established the last business day prior to the closing date of the merger with H...

Who Is "The Person" Who Made The Overpayment?: July 8, 2022 - Volume 16 Issue 129 Print Report; The husband and wife filed a joint return. The entire amount of the tax liability was paid by the wife. Subsequently, it was determinedthat there was an overpay...

A Portion Of Retirement Benefits Are From "Privately Funded Sources": July 8, 2022 - Bulletin Print Report; The taxpayer, ("TP"),is a retired Federal government employee. Under the Federal Employees Retirement System, ("FERS"), retired Federal government emp...

Substantial Compliance With A Statutory Requirement Is Not Sufficient: July 8, 2022 - Bulletin Print Report; In 2012, the Commissioner notified I that he had deficiencies for the 2009 and 2010 tax years. I petitioned the Tax Court. He argued that he was entitled to a deduction of $338...

Actual Payment Not Required For Sec. 881 To Apply: July 7, 2022 - Volume 16 Issue 128 Print Report; During 1990, petitioner (a Mexican corporation) rented a fleet of trucks and trailers to another Mexican corporation, H. H did not pay rent for the use of theeq...

Baker's Purchase Of Utilities Subject To Sales Tax: July 7, 2022 - Bulletin Print Report; Applicant has a bakery and freezing operation that produces dough which is then sold to its stores. Applicant combines the raw materials necessary to make the dough. The questi...

Federal Tax Lien Did Not "Attach" To Debtor's Personal Property: July 7, 2022 - Bulletin Print Report; S filed a petition under Chapter 13 of the Bankruptcy Code on August 17, 2021. On September 15, 2021, the I.R.S. filed a proof of claim. S's objection to the claim asserts...

Plant Sales Were Subject To Sales Tax: July 7, 2022 - Bulletin Print Report; Applicant, ("APP"),is a section 501(c)(3) charitable and educational organization whose exclusive purpose is horticultural education to support and to supplemen...

Non-Resident Shareholders Taxed On 'S' Corporation's Business Income: July 6, 2022 - Bulletin Print Report; In 2014, the Family Trust, ("FT"), and the Evan Trust, ("ET"), each an electing small business trust within the meaning of section 1361(e) of the Code, were...

Shares Held In Escrow Are Owned "Directly": July 6, 2022 - Volume 16 Issue 127 Print Report; X purchased for cash, payable in installments, all the outstandingshares of stock of Y. The shares consisted of Class A common stock and Class B common stock. T...

Corporation Not Synonymous With Its Disregarded Entity: July 6, 2022 - Bulletin Print Report; Plaintiff, ("P"), is a 'C' corporation. During 2016 and 2017, P wholly owned two subsidiaries, (the "subsidiaries"). The subsidiaries are each limit...

Bulk Sale Purchaser Became Liable For Seller's Sales Taxes: July 6, 2022 - Bulletin Print Report; In or around November 2016, P acquired business assets from A. A form AU 196.10 was not filed at any time. P operated an automotive repair shop at a Queens County location. Pri...

GSK plc Announces A "De-merger": July 5, 2022 - Bulletin Print Report; GSKplc, ("GSK"), and Pfizer, Inc., ("PFE"), operate a joint venture, "Consumer Healthcare Holdings," ("CH JVCo"), in which GSK&nbs...

Parent Owns Subsidiary's Stock Until Sale Closes: July 5, 2022 - Volume 16 Issue 126 Print Report; A is a publicly-held corporation. A is the common parent of an affiliated group of corporations filing a consolidated income tax return. B is a wholly-owned subsidiar...

Con Edison Does Not Charge Twice For The "GRT": July 5, 2022 - Bulletin Print Report; Petitioners, ("Ps"), each had properties located in New York City during 2014 through 2016. Ps are all related entities owned by Brookfield Properties, Inc. Ps purcha...

"Deed-In-Lieu" Property Produced Only Section 1231 Gain: July 5, 2022 - Bulletin Print Report; During 2012, H was the sole shareholder of an 'S' corporation, EMJ, which was a 50 percent member of LEP. LEP was classified as a partnership for tax purposes. SDM ...

N.J. Resident Did Not Have A "Residential Interest" In N.Y. Vacation Home: July 1, 2022 - Bulletin Print Report; In April 2016, a notice of deficiency was issued to petitioners, ("Ps"), from the Department of Taxation and Finance, (the "Department"). Ps were domiciled...

Corporation's Exercise Of Option Does Not Result In Dividend: July 1, 2022 - Volume 16 Issue 125 Print Report; In 1968, Corporation, (C), had 20,000 shares of common stock outstanding of which 15,000 shares were held by B and 5,000 shares were held by A. On February 20, 1968,...

Bulk Water Is Not Tangible Personal Property Subject To Sales Tax: July 1, 2022 - Bulletin Print Report; The question presented for considerationis whether Company's sales of water are tangible personal property subject to Colorado sales tax. Company is engaged in the bu...

Leases Of "COAMs" Subject To Sales And Use Tax: July 1, 2022 - Bulletin Print Report; TP operates a business where children can drive miniature vehicles along an indoor track. TP leases certain of its business equipment, including its "COAMs," from ano...

Taxpayer's "Abode" Was Outside The United States: June 30, 2022 - Bulletin Print Report; Respondent issued a notice of deficiency to P. P retired from the U.S. Army in 2008 and thereafter purchased a home in Georgia. P's daughter lived with him in the home and...

Contributions to Capital Are Not "Items of Income": June 30, 2022 - Volume 16 Issue 124 Print Report; N1, N2, and W, each of whom is an individual, own all of the stock of three 'S' corporations, WNNY, GLD, and WNCA. N1 and N2 are brothers. &nb...

TracFone Subject To Maine's Service Provider Tax: June 30, 2022 - Bulletin Print Report; TF sells telecommunications services. TF did not own or operate its own telecommunications facilities but instead purchased the services from other licensed wireless network op...

"Suspended" Corporation Is Capable Of Making A Distribution: June 30, 2022 - Bulletin Print Report; A was incorporated in Delaware on January 29, 2004. A borrowed funds to purchase real property, (the "Q property"). H paid the "earnest money deposit" of $4...

Has JUUL's Stock Become Worthless?: June 29, 2022 - Bulletin Print Report; The FDA recently reached a controversial decision and issued an accompanying order in which it determined that JUUL Labs, Inc. would no longer be permitted to marketits p...

Income From Supplying Water Is Qualifying Income: June 29, 2022 - Volume 16 Issue 123 Print Report; X is a limited partnership. X intends to become a publicly traded partnership by effecting an initial public offering of units. X expects to earn income primarily by assessing...

Supreme Court Rejects "Disparate Impact" Theory: June 29, 2022 - Bulletin Print Report; Medicare, ("M"), provides health insurance coverage for those who are 65 years of age or over, or are disabled. In 1972, Congress extended M coverage to individuals w...

Seattle's "Amazon Tax" Is Constitutional: June 29, 2022 - Bulletin Print Report; On July 6, 2020, the City adopted Ordinance 126108 imposing a "payroll expense tax" on certain entities engaging in business in Seattle. The City delayed the date of...

Trustee Does Not Acquire A Prohibited Interest: June 28, 2022 - Volume 16 Issue 122 Print Report; X had outstanding voting stock all of which was held by A, B, C, D, and Trust. A and B were husband and wife. C was their son, and D, their daughter. Trust was a trust establis...

SAVE/ULCC Merger Bumping Up Against The "Control Requirement": June 28, 2022 - Bulletin Print Report; Frontier Group Holdings, Inc., ("ULCC"), and Spirit Airlines, Inc., ("SAVE"), are attempting to push their merger to the finish line, in the face of strong...

Land Used In Connection With A Public Water Supply Is Taxable: June 28, 2022 - Bulletin Print Report; The Authority is a municipal utility responsible for supplying potable water to Atlantic City. The Authority owns various parcels of land in the Municipalities. Those lands are...

Property Tax Exemption Limited To One Dwelling: June 28, 2022 - Bulletin Print Report; This case involves three contiguous parcels of real property, the "2514" parcel, the "2520" parcel, and the "2524" parcel. The properties collecti...

Taxpayer Sold "Day Trips For Sightseeing Purposes": June 27, 2022 - Bulletin Print Report; Taxpayer operates a railroad within Washington. Taxpayer charges its customers for tickets to go on short train trips and special events, and also sells snacks and drinks. Taxp...

Premiums On "Stop-Loss" Insurance Policies Are Taxable: June 27, 2022 - Bulletin Print Report; H does business as Blue Cross Blue Shield, ("BC"). Texas approved BC to sell stop-loss policies to employers who self-fund their employees' health insurance. BC r...

Competition for Capital Precipitates a Spin-Off: June 27, 2022 - Volume 16 Issue 121 Print Report; D is a publicly traded corporation that conducts a pharmaceuticals business. C, a wholly-owned subsidiary of D, conducts a cosmetics business. &...

Cost Of Business Clothing Ruled Deductible: June 27, 2022 - Bulletin Print Report; During each year in issue, MR was employed as a stationary engineer; MRS was employed as a nurse in a clinic operated by K. K's dress code required that MRS be dressed in &...

Cash Originating With Target Treated As "Boot": June 24, 2022 - Volume 16 Issue 120 Print Report; T is a State A corporation that is a holding company. T has one class of outstanding stock. T owns "a%" of the outstanding stock of ACQ. The ACQ stock is T's prin...

Lessee Had Equitable Title To The Underlying Property: June 24, 2022 - Bulletin Print Report; J is a non-profit corporation and open-enrollment public charter school. On November 13, 2018, J entered a "Build to Suit Lease and Option" to lease property for a ca...

OAS's Special Dividend Promises To Be "Extraordinary": June 24, 2022 - Bulletin Print Report; Oasis Petroleum, Inc., ("OAS"), announced that its Board of Directors has...declared a "special dividend" of $15.00 per share. The dividend is being declare...

Net Lessee May Grieve Real Estate Tax Assessment: June 24, 2022 - Bulletin Print Report; D operates a car dealership in M. In 2007, D entered into a 20-year net lease with O of a parcel of real property located in M. The lease obligates D to pay "all...real es...

The Willens Deal Survey June 2022: June 23, 2022 - The Deal Survey: June 2022 Print Report; Welcome to this month's summary of deals. Full reports on some of these transactions can be found via the link in the description, or by searching the company name in our database.

New Home Not Acquired By Means Of "Purchase": June 23, 2022 - Volume 16 Issue 119 Print Report; MLZ died on April 24, 2008. She left her entire estate to her two sons, EZ and AZ, "to be divided equally, share and share alike." Her estate included a home (the Pro...

Transfer Of Low-Income Housing Exempt From "REET": June 23, 2022 - Bulletin Print Report; In 2017, a Washington Limited Partnership...transferred a controlling interest in...LLC ("Taxpayer") to Transferee. Taxpayer filed a Real Estate Excise Tax(&quo...

Will The Acquisition Of LWRK Qualify As A Reorganization?: June 23, 2022 - Bulletin Print Report; TELUSCorporation, ("TU"), announced that it has entered into a definitive agreement with LifeWorks, Inc., ("LWRK"), pursuant to which TUwill acq...

Website "Began" Before Revenue Was Generated: June 23, 2022 - Bulletin Print Report; In 2013, P formed V, of which he was the sole member. P and the engineers he hired completed V's core functionality in March 2015, and worked to resolve software "bugs...

Withholding Tax Likely On Algoma's Stock Buyback: June 22, 2022 - Bulletin Print Report; Algoma Steel Group, Inc., a Canadian corporation, is launching a rather...

AT&T's Spin-Off Ruling Does Not Dwell On The "Active Business" Issue: June 22, 2022 - Bulletin Print Report; LTR202224002, December 28, 2021, appears to be the ruling that was issued to AT&T, ("T"), in connection with its highly publicized"Reverse Morris...

Ascertaining The Owner Of Escrowed Shares: June 22, 2022 - Volume 16 Issue 118 Print Report; Pursuant to a stock purchase agreement (SPA) executed on Date 1, PU agreed to acquire 100 percent of the sole class of outstanding stock of T from its shareholders (Ss) over th...

Discharge Of Debt Not Prerequisite To Issuance Of Form 1099-C: June 22, 2022 - Bulletin Print Report; In March 2012, T's predecessor obtained a judgment against G and his wife. After G failed to satisfy the judgment, T issued an I.R.S. Form 1099-C to G for the 2018 tax year...

Defaulting Taxpayer Not Entitled To "QRI" Deduction: June 22, 2022 - Bulletin Print Report; In 2007, Ps executed a credit agreement with HTB,consisting of a promissory note and mortgage secured by their principal residence, with respect to a line of credit up to...

Resort-Area Tax Did Not Automatically "Sunset": June 21, 2022 - Bulletin Print Report; C seeks to recover a locally imposed resort-area gross receipts excise tax which PIB originally enacted in 1995. PIBenacted its resort-area tax in 1995 by passing Ordinan...

Timely Merger Brings Sec. 332 Into Play: June 21, 2022 - Volume 16 Issue 117 Print Report; P is a domestic corporation. P has issued and outstanding a single class of common stock of which 42.77 percent is held by A, 42.77 percent is held by B, and 14.46 pe...

Expropriation Loss Not Claimed In Proper Year: June 21, 2022 - Bulletin Print Report; H was born in Iran. Prior to the revolution, H inherited one-fourth ownership of a family property, (the "Property"). APPs received a Notice of Confiscation from the...

Modular Units Were Not "Immovable": June 21, 2022 - Bulletin Print Report; The dispute concerns the applicability of local sales or lease tax on certain property, (the "Property"), that TP leased to FF. A lease or rental is the leasing or re...

Congressionally Sanctioned "Tax Avoidance" Immune From Sec. 269: June 17, 2022 - Volume 16 Issue 116 Print Report; M was organized in 1967 to engage in the business of selling and distributing certain products. All of its common stock was owned by A. M intermittently engaged in th...

Car Lifts Are Not "Capital Improvements": June 17, 2022 - Bulletin Print Report; Petitioner, ("P") is in the business of design, installation, repair and maintenance, and the sale and lease of car lifts. The Division of Taxation, (the "Divisi...

Sales Of Services Not Covered By P.L. 86-272: June 17, 2022 - Bulletin Print Report; Petitioner, ("P"), is a Florida corporation. P is in the business of selling travel services utilizing Independent Travel Consultants, ("ITCs"), nationwide,...

Author Did Not Provide A Service: June 17, 2022 - Bulletin Print Report; R is a limited liability company solely owned by K. R is the holding company for all the rights, transactions, and income related to K's literary works. R has entered into...

Federal Conformity Cannot Be Inferred: June 16, 2022 - Bulletin Print Report; States and localities are by no means obligated to acknowledge, embrace or otherwise adhere to the federal income tax treatment of a transaction. Accordingly, a transaction tha...

Characterizing "Tax Sharing" Payments: June 16, 2022 - Volume 16 Issue 115 Print Report; X and Y are wholly-owned subsidiaries of P and M and R are wholly-owned subsidiaries of X, all of which qualify as members of an affiliated group, as that term is def...

Ramp Supervisor Engaged In Interstate Commerce: June 16, 2022 - Bulletin Print Report; LS works for Southwest Airlines, ("SA"), as a "ramp supervisor." Her work frequently requires her to load and unload baggage, airmail, and commercial cargo...

Michigan Resident Denied The Benefit Of "Principal Residence Exemption": June 16, 2022 - Bulletin Print Report; P is a Michigan resident. For many years, P enjoyed a principal residence exemption, ("PRE"), on his Michigan residence. In late 2016, P purchased a second home in Ar...

STZ's Controlling Shareholders Propose A Recapitalization: June 15, 2022 - Bulletin Print Report; Constellation Brands, Inc., ("STZ"), has long had a high vote/low vote common stock structure. The Sands family, (the "Family"), collectively holds over 98...

Fuel Exchange Agreement Creates Nexus: June 15, 2022 - Volume 16 Issue 114 Print Report; TP is a fuel producing companywith an oil refinery in State A. TP's sales office is located in State B, with the company headquarters in State C. For a numb...

"Prospective Use" Doctrine Does Not Provide Tax Exemption: June 15, 2022 - Bulletin Print Report; It is well-settled that real property is presumed taxable, and exemption statutes are strictly construed. See Anderson/Maltbie Partnership v. Levin, 127 Ohio...

Loss From Sale Of Real Estate Was Capital In Nature: June 15, 2022 - Bulletin Print Report; D purchased for investment five condominiums in WB and immediately sold two. D also acquired for investment purposes undeveloped lots and a house in W, (the "WH"). On...

PLD And DRE Enter Into A Merger Agreement: June 14, 2022 - Bulletin Print Report; Prologis, Inc., ("PLD"), and Duke Realty Corporation, ("DRE"), each a real estate investment trust, ("REIT"), announced that they have entered int...

Tax Motivated Disaffiliation Respected: June 14, 2022 - Volume 16 Issue 113 Print Report; P files a consolidated tax return with its includible affiliates. P's sole shareholder, FP, is a foreign corporation. P holds all of the stock of Sub 1, as well a...

The "MRT" Passes Constitutional Muster: June 14, 2022 - Bulletin Print Report; In 2005, the Ms invested in KK. KK is a controlled foreign corporation, ("CFC"). KK is located in India. The TCJAcreated the Mandatory Repatriation Tax, ("...

Expense Of Seller Is Part Of The "Sales Price": June 14, 2022 - Bulletin Print Report; TP, a restaurant, has implemented a "Cash Discount Program" so as to give patrons an incentive for paying with cash as opposed to paying with credit cards. All items...

Merger Transferee Succeeded To Transferor's Unused Tax Credits: June 13, 2022 - Bulletin Print Report; C is a bank holding company with many subsidiaries, of which three are relevant here. Before 2005, KWA earned tax credits. Those credits were governed by the SBTA, which allowe...

An FBAR Penalty Is A "Debt": June 13, 2022 - Bulletin Print Report; The Bank Secrecy Act requires U.S. citizens to report interests in foreign accounts with a value exceeding $10,000. Citizens must declare their accounts through an FBAR. C fail...

Voting Stock Can Be "Other Than Common Stock": June 13, 2022 - Volume 16 Issue 112 Print Report; X has outstanding 1,000 shares of common stock all of whichwere held by five related individuals. X issued two new classes of stock, Class A stock and Class B s...

In-Kind Redemption By Open-End Management Investment Company: June 10, 2022 - Volume 16 Issue 111 Print Report; IC is a corporation organized under the laws of State A and is registered under the Investment Company Act of 1940 as an open-end management investment company. Fund...

Retail Installment Contracts Not Allocated To Louisiana: June 10, 2022 - Bulletin Print Report; T's business at issue herein is its Retail Finance line of business, through which it acquires and services Retail Installment Contracts, ("RICs") from independen...

Reinsurer Granted Permission To Change Apportionment Methodology: June 10, 2022 - Bulletin Print Report; C is domiciled in STATEand has been fully licensed to conduct life, health, and annuity insurance operations in Illinois by the Department of Insurance. C's insurance...

Sec. 318 Applies Only Where Expressly Made Applicable: June 9, 2022 - Volume 16 Issue 110 Print Report; M owned 45 percent of the stock of X. A, an individual, owned 10 percent of the stock of X and 100 percent of the stock of M. The assets of X consist solely of 100 pe...

Bow Manufacturer Properly Subject To Excise Taxes: June 9, 2022 - Bulletin Print Report; E is a wholesale distributor of archery bows and parts. E was owned by S, C, B, O, and K. E's owners established PF to manufacture archery equipment. PF was owned by E'...

SRLP Is Going Private: June 9, 2022 - Bulletin Print Report; Sprague Resources, L.P., ("SRLP"), announced that it has entered into a definitive agreement and plan of merger, (the "Agreement"), pursuant to which an aff...

NYS Tax On Distributions From An I.R.A.: June 8, 2022 - Volume 16 Issue 109 Print Report; Petitioner's spouse had been employed by the New York City Police Department. He submitted retirement papers but died before any payments had been received by him...

Sale For Resale Exemption Not Properly Claimed: June 8, 2022 - Bulletin Print Report; On March 19, 2019, Taxpayer purchased "Aircraft" registered with the FAA. The seller of Aircraft located in Arkansas, ("AK"), did not charge sales tax becau...

Tax Refund Properly Offset Against Delinquent Student Loan: June 8, 2022 - Bulletin Print Report; Between 1981 and 2002, S took out a series of federal student loans to finance his education. All are in default. As of December 5, 2018, S's "Total Balance" was...

Prohibition On Receipt Of Income Precludes Allocation Thereof: June 7, 2022 - Volume 16 Issue 108 Print Report; TT purchased crude oil from the Saudi government by way of Arabian American Oil Company (AA) and resold it both to affiliates and unrelated customers. From early 1979...

No Credit Available For UK Taxes Imposed On Earned Income: June 7, 2022 - Bulletin Print Report; The taxpayers, a husband, ("H"), and wife, ("W"), filed a Virginia, ("V"), resident income tax return for the 2018 taxable year in February 2020....

Hedge Fund Manager Improperly Denied Right To A Jury Trial: June 7, 2022 - Bulletin Print Report; J established two hedge funds and selected P28 as the investment adviser. The SEC launched an investigation and chose to bring an action within the agency alleging that petitio...

Sec. 351 Exchange Can Terminate A Partnership: June 6, 2022 - Volume 16 Issue 107 Print Report; S, a corporation, is wholly owned by a taxpayer, an individual. The taxpayer alsoowned a 50 percent interest in the capital and profits of PYZ partnership. The...

"Retail Sale" Of Medical Equipment Found: June 6, 2022 - Bulletin Print Report; Petitioner, ("P"), develops, manufactures, and commercializes products for the treatment of dermatological disorders. In June 2015, P acquired a technology called &qu...

Disaster Relief Payments Not Included In Gross Income: June 6, 2022 - Bulletin Print Report; P is a utility holding company. P is the parent of S1, S2, and S3, (the "Utility Companies"). The Utility Companies are public utilities under the Federal Power Act....

Change In Use Of Farm Property Did Not Trigger Added Assessments: June 6, 2022 - Bulletin Print Report; The "Subject" consists of two contiguous parcels, about 97.3 acres in total. For several years, plaintiffs applied for, and the assessor annually approved the Subject...

Unrecovered Basis Added To Basis Of Related Person: June 3, 2022 - Volume 16 Issue 106 Print Report; P is a publicly traded corporation. P owns, directly and indirectly, all of the Sub A common stock and all of one class of Sub A preferred stock. Sub A owns all the S...

Rental Activity Does Not Preclude A "PRE": June 3, 2022 - Bulletin Print Report; Petitioner, ("P"), had applied for and received a Personal Residence Exemption, ("PRE"), in 2018, but respondent revoked it in 2020 on the basis that it det...

Filling Of Prescriptions Constitutes A Qualified Trade Or Business: June 3, 2022 - Bulletin Print Report; TP is a C corporation. TP is only involved in the retail sale of a limited number of drugs and does not manufacture them. The manufacturers of these drugs prefer entering into...

Physical Presence Created Substantial Nexus: June 3, 2022 - Bulletin Print Report; Taxpayer is a New York corporation which sells various consumer products over the Internet, and specifically through Amazon.com marketplace. Taxpayer participated in A...

Will GFI's Acquisition Of AUY Constitute A Reorganization?: June 2, 2022 - Bulletin Print Report; Gold Fields Limited, ("GFI"), and Yamana Gold, Inc., ("AUY"), announced that they have entered into a definitive agreement, (the "Arrangement Agreement...

Earnings On Pensions Not Excluded From NY AGI: June 2, 2022 - Volume 16 Issue 105 Print Report; Petitioners jointly filed their 2007 Resident Income Tax Return, reporting a pension and annuity income exclusion in the amount of $128,000. Mr. Kane (Kane) had attai...

Employee Benefit Expenses Not Included In "COGS": June 2, 2022 - Bulletin Print Report; Petitioner, ("P"), was the reporting entity for its combined group for Texas franchise tax purposes. One of the affiliates was CB. CB was a manufacturer until 2006, w...

Deed Did Not Satisfy The Requirements Of Section 170(f)(8)(B): June 2, 2022 - Bulletin Print Report; Petitioner, ("P"), and her late husband acquired a large collection of Native American jewelry and artifacts during their marriage. On or around December 19, 2014, P...

PCH Agrees To Foot OP Unitholders' Tax Bills: June 1, 2022 - Bulletin Print Report; PotlachDeltic Corporation, ("PCH"), and CatchMark Timber Trust, ("CTT"), each a real investment trust, ("REIT"), announced that they have entered...

Preliminary Expenses Not Deductible: June 1, 2022 - Volume 16 Issue 104 Print Report; A taxpayer, in connection with the selection of a site and the establishment of a sales program for a boy's camp which he intends to establish and operate as his business,...

Lubricants And Dyed Diesel Fuel Exempt From Sales Tax: June 1, 2022 - Bulletin Print Report; Taxpayer, ("TP"),manufactures stone aggregate. TP filed a claim for refund of sales tax it paid on its purchase of tangible personal property, including dyed di...

Late "ESBT" Election Does Not Terminate 'S' Corporation Status: June 1, 2022 - Bulletin Print Report; X elected to be an 'S' corporation effective Date 2. On Date 2, shares of X were owned by Trust 1, a grantor trust of which A was deemed to be the owner, and by Trust 2...

Taxpayer Cannot Rely On Erroneous "STC" Interpretation: May 31, 2022 - Bulletin Print Report; P married JL in 2001. After their marriage, they purchased and resided at "413." On March 18, 2010, P was deeded the "Fp;" her husband was not on t...

Seminar Tuition Not Deductible Under Sec. 212: May 31, 2022 - Volume 16 Issue 103 Print Report; TP has a number of business interests, including rental property, a car wash, a laundry, and real estate held for investment purposes. In addition, TP owns stocks and mutual fu...

High-Speed Trader Subject To Use Tax On Market Data: May 31, 2022 - Bulletin Print Report; Petitioner, ("P"), traded stocks and other financial instruments throughout the world. It was headquartered in City A, Texas. P's business model was based on high...

"Momentary Ownership" Ignored For 'S' Corporation Election Purposes: May 31, 2022 - Bulletin Print Report; Distributing is a closely held corporation that operates Business A. Distributing has made an election to be treated as a subchapter S corporation. Distributing has a single cl...

AVGO's Acquisition Of VMW Is Intended To Qualify As A Reorganization: May 27, 2022 - Bulletin Print Report; Broadcom, Inc., ("AVGO"), and VMware, Inc., ("VMW"), announced an agreement under which AVGO will acquire "all of the outstanding shares of VMWin...

No Sec. 338 Election Without A "Qualified Stock Purchase": May 27, 2022 - Volume 16 Issue 102 Print Report; A Sec. 338 election has the salubriouseffect of "converting" a purchase by one corporation of the stock of another into a purchase of the latter's...

Section 481(a) Adjustment Does Not Constitute Gross Income: May 27, 2022 - Bulletin Print Report; Taxpayer is a State corporation that intends to elect to be taxed as a real estate investment trust, ("REIT"), under sections 856 through 860 of the Code beginning wi...

Food Stamps Are Not An "Asset": May 27, 2022 - Bulletin Print Report; On June 6, 2017, the State Tax Commission, ("STC"), issued a bulletin addressing the application of MCL 211.7u, the homestead property tax exemption for persons unabl...

Joint Tenant Not Entitled To First Time Homebuyer Credit: May 26, 2022 - Volume 16 Issue 101 Print Report; Plaintiff ("B") argues that she qualifies for a first time homebuyer credit for her 2010 purchase of real property ("HMP"). The record demonstrates that the...

Massachusetts Cannot Tax Foreign Corporation's Capital Gain: May 26, 2022 - Bulletin Print Report; V was formed in 1999 as an 'S' corporation with its commercial domicile and headquarters in Illinois. V operated call centers in Canada. T was a Massachusetts limited l...

Retail Sales Includes Sales Of Digital Goods: May 26, 2022 - Bulletin Print Report; TP is a photography business. TP specializes in producing portrait photographs... The Client Service Agreement, (the "Agreement"), includes the following relevant pro...

Ten Year Carry Back Of "SLLs" Denied: May 25, 2022 - Bulletin Print Report; In Year 3 and Year 4, TP incurred consolidated net operating losses, ("NOLs"). TP validly elected to waive its two-year NOL carry back with an election state...

Non-Custodial Parent Denied Dependency Exemption: May 25, 2022 - Volume 16 Issue 100 Print Report; In 1997, CEK and MEB had a son, EJK. CEK and MEB were never married to each other and maintained separate residences. Pursuan...

Tuition Tax Credit Rejected: May 25, 2022 - Bulletin Print Report; The Ls filed their 2018 South Carolina, ("SC"), Income Tax return on February 7, 2019. The Ls claimed the tuition tax credit based on tuition they paid for their depe...

Duty To Collect Sales Tax Not Affected By Customer Exemption: May 25, 2022 - Bulletin Print Report; TP specializes in providing technical expertise in operations and engineering for the biogas use and management industries. The Customer, ("C"), produces energy from...

The Willens Deal Survey May 2022: May 25, 2022 - The Deal Survey: May 2022 Print Report; Welcome to this month's summary of deals. Full reports on some of these transactions can be found via the link in the description, or by searching the company name in our database.

Highway Use Tax Is Equivalent To Sales Tax: May 24, 2022 - Bulletin Print Report; Taxpayer resides in North Carolina. In April 2021, Taxpayer purchased a vehicle from a dealership in Indiana, (the "Dealership"). The Dealership collected Indiana sal...

Both Spouses Must Qualify Under The Same Paragraph Of Sec. 36(c): May 24, 2022 - Volume 16 Issue 99 Print Report; The Packards were married on November 22, 2008 and lived in separate residences until December 1, 2009, when they purchased and moved into a home together in Florida...

Damage Charges Included In Taxable Income: May 24, 2022 - Bulletin Print Report; TP rents recreational vehicles, ("RVs"), to drivers in Washington. The rental agreements specifically address the possibility that vehicles will be returned subject t...

Debtor's IRA Did Not Lose Its Tax Exempt Status: May 24, 2022 - Bulletin Print Report; M filed a petition under Chapter 7 of the Bankruptcy Code. M claimed an exemption in a self-directed IRA. The Trustee, ("T"), objected. On April 14, 2016, M opened a...

Spin-Off Will Not Impede Acquisition Of VMW: May 23, 2022 - Bulletin Print Report; On November 1, 2021, Dell Technologies, Inc., ("DTI"), distributed 81 percent of the stock of its subsidiary, VMWare, Inc., ("VMW"), to its shareholders in...

Alimony Or Separate Maintenance Payments Not Found: May 23, 2022 - Bulletin Print Report; I and E were married on June 20, 2008. On August 2, 2016, I and E separated. On September 17, 2016, I and E signed a "Marital Separation Agreement," ("Agreement&...

The I.R.S. Gets "Whammed": May 23, 2022 - Volume 16 Issue 98 Print Report; In Rev. Rul. 80-228, 1980-2 C.B. 115, X Corporation, (X), operated its businesses in two separate divisions, (D1 and D2). Each division operated as if it were a separ...

"Ordinary Care" Is Not Synonymous With "Reasonable Cause": May 23, 2022 - Bulletin Print Report; Four plaintiffs are the "hotel owners." The other three plaintiffs, referred to as "E," are hotel management companies. The hotel owners contracted with E t...

Trade Date Controls Gain Or Loss Reporting: May 20, 2022 - Volume 16 Issue 97 Print Report; A uses the cash receipts and disbursements method of accounting and files his income taxreturns on a calendar year basis. For several years, A held stock that i...

Military Retirement Payments Were Not Excludible From Gross Income: May 20, 2022 - Bulletin Print Report; Petitioner, ("P"), served in the U.S. Army for 26 years. In April 1989, an "MEB" evaluated P and recommended that he be found "physically unfit for wor...

Extension Of Time To File "Triple-Eye" Agreement Granted: May 20, 2022 - Bulletin Print Report; TP is a domestic individual. TP and members of TP's family owned stock in Corporation, ("C"). On "Date," all of TP's stock was redeemed in exchange...

A "Clean Room" Constitutes Tangible Personal Property: May 20, 2022 - Bulletin Print Report; Taxpayer, ("TP"), with a research facility located in Virginia, is engaged in pharmaceutical development, formulation, and production. The Department's auditor as...

No Landlord/Tenant Relationship Between Husband And Wife: May 19, 2022 - Volume 16 Issue 96 Print Report; A and B purchased certain farmland in X as tenants in common in 1981. A farms the land and reports the income and expenses on Schedule F. Beginning in 1984, A paid B...

Purchase Of In-Flight Meals Subject To Sales Tax: May 19, 2022 - Bulletin Print Report; Taxpayer, ("TP"),is an airline operating as a common carrier in interstate and foreign commerce. TP has a contract with V to provide food and beverages for ...

Faxed Delinquent Return Was Property "Filed": May 19, 2022 - Bulletin Print Report; S is a partnership. S believed its filed its tax return for 2001 in July 2002. The I.R.S. has no record of receiving such a filing. In July 2005, an I.R.S. agent sent S a lette...

Pipeline Is Tangible Personal Property: May 19, 2022 - Bulletin Print Report; M is a subsidiary of Marathon Petroleum Corporation. It owns or leases several thousand miles of pipeline throughout the United States. The pipeline at issue transports crude o...

Gain Attributable To Inventory Not Eligible For Installment Reporting: May 18, 2022 - Volume 16 Issue 95 Print Report; P was a partner in a partnership that held "substantially appreciated inventory." A porton of that property constituted inventory within the meaning of Sec....

FANG's "Roll-Up" Will Be A Tax-Free Reorganization: May 18, 2022 - Bulletin Print Report; There have been numerous MLP "roll-ups" over the past severalyears. These transactions ordinarily involve the acquisition by the "sponsor" of the publ...

The "Assessable Payment" Is A "Tax": May 18, 2022 - Bulletin Print Report; If certain employers fail to offer their full-time employees specified healthcare coverage, they must pay the federal government a yearly "assessable payment." See se...

Non-Resident Partner Taxable On "Effectively Connected Income": May 18, 2022 - Bulletin Print Report; I is a domestic limited liability company located in New York. I's business is brokering health insurance to college students. KZ, a New York State resident, held a 33 perc...

Playstudios Will Redeem Its Warrants: May 17, 2022 - Bulletin Print Report; Playstudios, Inc., ("MYPS"), has both publicly issued and privately placed stock purchase warrants outstanding. In an effort to lend a degree of certainty and stabili...

Expenses Of Appraisal Proceedings Not "Organizational Expenditures": May 17, 2022 - Volume 16 Issue 94 Print Report; Petitioner is the successor by merger to PII. PII was organized on December 3, 1962 in the course of implementing an agreement to consolidate five existingcorpo...

The Shared Responsibility Payment Is Governed By Section 507(a)(8)(A): May 17, 2022 - Bulletin Print Report; In July 2019, Debtors, ("Ds") filed a Chapter 13 petition. The I.R.S. filed a proof of claim for unpaid taxes, including a shared responsibility payment, ("SRP&q...

Exemption Applies From First Day Of Exempt Use: May 17, 2022 - Bulletin Print Report; TPsown mineral leasehold interests, (the "Leases"). TPs paid property taxes on the Leases in 2018. In March 2019, they timely applied to exempt the Leases from...

Unrecovered Basis In A Sec. 304 Redemption: May 16, 2022 - Volume 16 Issue 93 Print Report; A owns 100 shares of X which is all the outstanding stock of X. B, the son of A, owns all of the stock of Y. A sold 25 shares of stock of X to Y for an amount of cash...

"FIT" Statutes Make No Business/Non-Business Income Distinction: May 16, 2022 - Bulletin Print Report; TP is a holding company. TP's subsidiaries provide banking services. TP filed combined 2014, 2015, and 2016 Indiana Financial Institution Tax, ("FIT"), returns, w...

All Owners Were Not Religious Societies: May 16, 2022 - Bulletin Print Report; Petitioner, ("P"), filed a Petition asserting that it is entitled to a property tax exemption...as a house of public worship. Under MCL 211.7s: "Houses of public...

Sale Of Fabric Subject To NYS Sales Tax: May 16, 2022 - Bulletin Print Report; Petitioner sells fabric by the yard, as well as other clothing accessories, such as buttons, thread, zippers, linings, etc. Petitioner contends that customers "purchase fa...

Will BAM's "Special Distribution" Be Tax-Free For U.S. Shareholders?: May 13, 2022 - Bulletin Print Report; Brookfield, ("BAM"), in conjunction with its Q1 earnings report, announced that it intends to distribute 25 percent of the equity interestsinan entity tha...

Not All Capitalized Costs Are Recoverable: May 13, 2022 - Volume 16 Issue 92 Print Report; TP is aBusiness E holding company. TP's subsidiaries provide various Business F services. Prior to Date X, T1 was a Business E holding company operating und...

Reimbursed Expenses Included In Gross Receipts For Sales Tax Purposes: May 13, 2022 - Bulletin Print Report; CE contracts with customers to perform construction, maintenance, and emergency repairs on those customers' power lines, which are taxable services. The tax is imposed on t...

Award Of Attorney Fees Not Income To Litigants: May 13, 2022 - Bulletin Print Report; The parties seek guidance from the court regarding the proper procedure for disbursing $249,000 in attorney fees, which the court awarded to plaintiffs in a November 19, 2021 o...

Joint Filers Are A "Taxable Unit": May 12, 2022 - Volume 16 Issue 91 Print Report; In 1980, Taxpayer husband (TPH) inherited a substantial sum of money from his father, which was used to purchase stocks, bonds, and to open savings accounts. These in...

Cell Tower Is Taxable Real Property: May 12, 2022 - Bulletin Print Report; Petitioner is the owner of real property in the Town of Vestal, Broome County.In 2015, petitioner and UST entered into a land use agreement wherein UST leased a portion o...

Personal Reports Are Not A Taxable "Information Service": May 12, 2022 - Bulletin Print Report; Petitioner, ("P"), provides a coaching/facilitation service that teaches techniques for effective listening and communication in a business environment. P administers...

PFE To Acquire The Balance Of BHVN: May 12, 2022 - Bulletin Print Report; Pfizer, Inc., ("PFE"), and its affiliate, BiohavenPharmaceutical Holding Co., Ltd., ("BHVN"),a company organized under the laws of the British V...

When Does the Sec. 1033 Clock Start?: May 11, 2022 - Volume 16 Issue 90 Print Report; A taxpayer (TP) acquired Property A on Date 1 and leasedsuch propertyto commercial tenants. On Date 2, City Agency filed a condemnation action to acquire...

"IDA" Receipts Not Sourced To New York: May 11, 2022 - Bulletin Print Report; Petitioner, T.D. Ameritrade, Inc., ("P"), introduces brokerage client accounts to TDAC, an affiliated clearingbroker-dealer. P is responsible for opening, appro...

Glucose Monitors Are Subject To Sales Tax: May 11, 2022 - Bulletin Print Report; C sells "Devices." The Devices cannot be purchased without a prescription from a physician. The Devices have two main parts: (i) a Reader, and (ii) a Sensor that User...

New York Non-Residents and "QSOs": May 10, 2022 - Volume 16 Issue 89 Print Report; In 1968, Petitioner, (P), was granted stock options by his employer, Avon Products, Inc., pursuant to a qualified employee stock option plan. He exercised the options...

Corporate Officer Found Liable For Unpaid Withholding Taxes: May 10, 2022 - Bulletin Print Report; In 1993, the family chose Plaintiff, ("P"), to succeed her father as board chair. When P became board chair, "it was determined that the business would be run by...

Section 6020(b) Tax Liabilities Cannot Be Discharged: May 10, 2022 - Bulletin Print Report; Debtor, ("D"), filed his Chapter 13 bankruptcy petition on April 22, 2015 and noted significant tax liabilities in his Schedules. The I.R.S. assessed D's tax liab...

ICE Pursues A Fully Taxable Transaction: May 9, 2022 - Bulletin Print Report; Intercontinental Exchange, Inc., ("ICE"), announced that it has entered into a definitive agreement to acquire Black Knight, Inc., ("BKI"). The "cash a...

I.R.S. May Attach Property Held By Nominee: May 9, 2022 - Volume 16 Issue 88 Print Report; P has accumulated, as of September 30, 2013, $529,887.09 in unpaid tax liabilities, penalties, and interest for the taxable years 1999-2003. P and his wife incorporat...

Improvements On Tribal Land Are Subject To Property Tax: May 9, 2022 - Bulletin Print Report; In 1999, C, a non-Indian-owned entity, leased 320 acres of land from the Tribe to construct and operate an electric power generating plant, (the "Plant"), on reservat...

"Any Means" Of Understatement Attracts A Penalty: May 9, 2022 - Bulletin Print Report; R timely filed her 2015 North Carolina tax return. On her Schedule C, R claimed business income and deductions for G. The Department disallowed the entire amount of business lo...

Gaming Company Avoids Nevada Use Tax: May 6, 2022 - Volume 16 Issue 87 Print Report; HOC is a Delaware corporation registered to do business in Nevada. HOC purchased four aircraft for the purpose of transporting employees and guests to and from its establishmen...

The FBAR Penalty Is Not A "Fine": May 6, 2022 - Bulletin Print Report; The Bank SecrecyAct, (the "Act"), requires all U.S. residents and citizens to file returns and keep records of certain relationships with foreign financial agen...

Excess Contributions Cause Loss Of Tax-Exempt Status: May 6, 2022 - Bulletin Print Report; Debtor, ("D"), disclosed among her assets an IRA. She claimed the IRA as exempt. The Trustee concluded that D inherited the IRA and filed this Objection. D, the court...

Credit Card Surcharge Is Part Of The "Sales Price": May 6, 2022 - Bulletin Print Report; M operates real properties as vacation rentals. He markets these properties through third parties, ("third-party marketers"). The third-party marketers collect the ap...

Redemption Proceeds Can Be Distributed In Partial Liquidation: May 5, 2022 - Volume 16 Issue 86 Print Report; X was a member of a cooperative organization for the purpose of purchasing products from the cooperative for resale in its business and receiving other services provided by the...

Vendor Allowances Are Integrated With Purchase And Sale Of Inventory: May 5, 2022 - Bulletin Print Report; APP operates a chain of home merchandise retail stores and is headquartered in New Jersey. APP has a treasury department at its New Jersey headquarters. L is a member of APP...

"Filed" Means "Delivered": May 5, 2022 - Bulletin Print Report; H filed applications for abatement or refund of property taxes relating to 85 acres of property that had been divided into 92 parcels. H mailed the applications to the Assessor...

Actual Use Of Property Is Necessary For Exemption: May 4, 2022 - Bulletin Print Report; The subject property is 0.97 acres improved with an 8,659 square foot office building...in Nashville, Tennessee. The property was purchased by United Neighborhood Health Servic...

Visual Display Work Is A "Retail Sale": May 4, 2022 - Bulletin Print Report; D is a New York based company that serves clients around the globe. D's primary service is to execute "roll-out work." When one of D's clients has a marketing...

Passive Investment Activities Are An "Insurance Business": May 4, 2022 - Volume 16 Issue 85 Print Report; HC is a State A insurance holding company. HC is the parent of P, a State B stock holding company. P owns C, a State C corporation. C is a life insurance company. S is a State...

"QEZE" Tax Reduction Credit Informed By 'S' Corporation's "BAP": May 4, 2022 - Bulletin Print Report; B&H Foto& Electronics Corporation, ("B"), is taxed under subchapter S of the Internal Revenue Code. B was certified as a qualified empire zone enterpris...

Management Fees Were Nothing More Than Disguised Distributions: May 3, 2022 - Bulletin Print Report; A's stock was held by MD, an individual, and JEC and MEL. A has not paid dividends since the '70s but has paid its shareholders management fees for at least 20 years. T...

SFI Inclusions Constitute "Qualifying" Income: May 3, 2022 - Volume 16 Issue 84 Print Report; X is a State limited partnership. X contemplates becoming a publicly-traded partnership (PTP). X has invested and will continue to invest the majority of its assets i...

Withholding Tax Is Included In Gross Income: May 3, 2022 - Bulletin Print Report; Petitioner, ("P"), elected to receive a distribution from his employer retirement plan, ("B"), in the amount of $45,000 in 2016. Utilizing a portion of the...

Loss Deduction Would Frustrate Public Policy: May 3, 2022 - Bulletin Print Report; P was employed by the Department of State from May 2003 until March 2014. Between August 2010 and September 2012, P was employed as a consular officer by the State Department a...

Land Not Devoted Primarily To Agricultural Use: May 2, 2022 - Bulletin Print Report; On September 11, 2017, N purchased an 8.9 acre parcel of land in K. At the time of purchase, the property was zoned agricultural and contained no habitable structures. In 2018,...

Increase In Conversion Ratio Is Not A Deemed Distribution Of Stock: May 2, 2022 - Volume 16 Issue 83 Print Report; X has outstanding both common stock and convertible preferred stock. The preferred stock is convertible into common stock at a fixed ratio. X distributed all of the stock in it...

Janitorial Services Not Subject To Sales Tax: May 2, 2022 - Bulletin Print Report; Taxpayer runs a lumber mill in the state of Washington. A local landscaper, (the "Vendor"), provided landscaping services to Taxpayer. Vendor charged retail sales tax...

Affixing Labels To Finished Products Is Not Manufacturing: May 2, 2022 - Bulletin Print Report; P sold wine and water with customized promotional labels. The auditor determined that the labels printed by an out-of-state vendor, "CA," and shipped to P in Texas we...

Settlement Costs Did Not Facilitate Capital Transaction: April 29, 2022 - Volume 16 Issue 82 Print Report; On Date 1, TP and T, publicly traded corporations, entered into a merger agreement under which TP agreed to acquire T in a stock for stock transaction. The merger closed on Dat...

Sales By Receivers Are Subject To "REET": April 29, 2022 - Bulletin Print Report; Taxpayer owned certain real property in Washington. Taxpayer took out two loans from Bank, and issued two promissory notes to Bank, securing them by a Deed of Trust in the real...

Off-Premises/On-Premises Sign Distinctions Are Content Neutral: April 29, 2022 - Bulletin Print Report; Federal, state, and local governments have long distinguished between signs (such as billboards) that promote...products...located elsewhere and those that promote things locat...

Promotional Items Not Sold To Customers: April 29, 2022 - Bulletin Print Report; P was a professional baseball team based in Texas. Texas imposes a tax on each sale of a taxable item in this state. The term, "taxable item," includes tangible perso...

Credits Reduce Tax Liabilities: April 28, 2022 - Bulletin Print Report; Under section 6426, a fuel producer can earn a credit, (the "Mixture Credit"), by mixing alcohol or biodiesel into its products. The Mixture Credit applies "agai...

Residents Of Puerto Rico May Be Excluded From Benefits Programs: April 28, 2022 - Bulletin Print Report; The United States includes five Territories. This case involves one such Territory, Puerto Rico. Congress has not required residents of Puerto Rico to pay most federal taxes. C...

Can A "Blocker" Corporation Avoid Estate Tax?: April 28, 2022 - Volume 16 Issue 81 Print Report; Petitioner, (P), is domiciled in a state other than New York and is considering the purchase of a condominium in New York. She wants to know the estate tax consequenc...

Section 6330(d)(1)'s Filing Deadline Is Subject To Equitable Tolling: April 28, 2022 - Bulletin Print Report; B is a law firm. In 2015, the I.R.S. notified B of a discrepancy in its tax filings. When B did not respond, the agency assessed an "intentional disregard" penalty an...

PSA To Distribute PSB Gain: April 27, 2022 - Bulletin Print Report; Recently, PS Business Parks, Inc., ("PSB") agreed to be acquired by Blackstone Real Estate ("BREIT"), in a transaction structured as a "reverse cash me...

TWTR's NOLs (And Interest Expense) Will Take A Licking: April 27, 2022 - Bulletin Print Report; Twitter, Inc., ("TWTR"), as everyone now knows, is being acquired by Mr. Elon Musk, ("EM"). EM will be acquiring TWTR through what Ginsburg and Levin refer...

Merger Consideration Constructively Received In Year Of Merger: April 27, 2022 - Volume 16 Issue 80 Print Report; NS owned 21,534 shares of common stock in HCA. Rather than turn the certificates over to a broker or to a bank, NS maintained possession of the certificates. In Novem...

Neither Spouse Qualified As A "Real Estate Professional": April 27, 2022 - Bulletin Print Report; S was the only member of DBS, a single member LLC through which he operated a wholesale HVAC business. In 2013, DBS purchased two properties in Florida, the "R property&qu...

BX Forgoes Basis Step-Up: April 26, 2022 - Bulletin Print Report; Just last week, the consistently acquisitiveBlackstone Real Estate, ("BREIT"), entered into a plan to acquire ACC. The transaction was structured in the manner...

Workmen's Compensation Excluded From Disposable Income: April 26, 2022 - Bulletin Print Report; The subject property is one of a six-unit residential condominium. The Owners have lived at the property since their purchase on May 1, 2007. DF was 63 years of age on the asse...

Auxiliary Property Found To Be Tax-Exempt: April 26, 2022 - Bulletin Print Report; A operates a network of health care facilities, including hospitals, clinics, and rehabilitation centers, such as "the subject property." A is a tax-exempt organizati...

"In-House" Qualified Stock Purchase: April 26, 2022 - Volume 16 Issue 79 Print Report; P, a publicly traded and widely held domestic holding company, is the common parent of a consolidated group that conducts a number of businesses, including Business A...

Statutory Resident (Of NY) Not Entitled To Credit For CT Taxes: April 25, 2022 - Volume 16 Issue 78 Print Report; Plaintiffs are domiciled in Greenwich, CT and also own a vacation home in East Hampton, NY. Plaintiffs acknowledge that they spent more than 183 days in New York Stat...

Property Not Used "Primarily As A Dwelling": April 25, 2022 - Bulletin Print Report; County property records identified the subject property as "single family residential." Defendant inspected the subject property and determined that it was commercial...

Owner Is Not A Qualified Employee: April 25, 2022 - Bulletin Print Report; Taxpayer operates dog breeding schools in Washington and in two other states, as well as online, as a limited liability company. Taxpayer took the Veteran's Employer Tax Cr...

Compensation And Grants Are Mutually Exclusive: April 25, 2022 - Bulletin Print Report; In 2010 and 2011, B worked at JL. B had a J-1 exchange visitor visa. He received W-2s from JL. He filed 1040-NR forms with the I.R.S., which claimed an exemption as to the enti...

GENZ's Royalty Income Not Excluded From "Entire Net Income": April 22, 2022 - Bulletin Print Report; Genzyme Corporation, ("G"), was organized under the laws of the U.S. G owned 100 percent of GLS. G owned 100 percent of GTPC and GTPL. GTPC and GTPL owned one percent...

Non-Residential Development Fee Properly Imposed: April 22, 2022 - Bulletin Print Report; Plaintiff, ("P"),is the owner of real property, (the "subject property"). The subject property was improved with two dwellings prior to P's non-re...

Extracting "Unwanted" Assets In The Context Of Sec. 338(h)(10): April 22, 2022 - Volume 16 Issue 77 Print Report; X is a holding company. X owns P, also a holding company. P owns T. T is engaged in Business A. T owns Sub A. Sub A is engaged in Business A. P owns Sub B. Sub B is e...

Conveyance Of Realty Subject To Maximum "RPTT" Rate: April 22, 2022 - Bulletin Print Report; Petitioner, ("P"), owned real property in Staten Island, (the "Property"). The Property covered two separate street addresses. Each street address has a sem...

The Willens Deal Survey April 2022: April 22, 2022 - The Deal Survey: April 2022 Print Report; Welcome to this month's summary of deals. Full reports on some of these transactions can be found via the link in the description, or by searching the company name in our database.

The Uncertain Tax Consequences Of "Poison Pill" Plans: April 21, 2022 - Bulletin Print Report; While so-called "poison pill" plans have been around for several decades, only recently, with the adoption by TWTR of a poison pill plan intended to fend off an unwan...

Small Reductions Can Also Be Regarded As Meaningful Ones: April 21, 2022 - Volume 16 Issue 76 Print Report; Company, (C), had outstanding as of September 30, 1982 the following stock: (a) 122,240 shares of voting common stock (NC); (b) 272,988.64 shares of 1 percent cumulat...

The Common Law "Mailbox Rule" Has Been Supplanted: April 21, 2022 - Bulletin Print Report; The complaint alleges that, on July 18, 2017, P's accountants mailed amended returns, via First Class mail, "in a single envelope to the I.R.S. service center in Holts...

Customers Did Not Purchase Apple Gift Cards: April 21, 2022 - Bulletin Print Report; P designs and markets consumer electronics, software, and personal computers, selling its products through its own retail and online stores. In 2011, P offered a "Back to...

ACC Will Be The Subject Of A Forward Cash Merger: April 20, 2022 - Bulletin Print Report; American Campus Communities, Inc., ("ACC"), a real estate investment trust, ("REIT"), has entered into a definitive agreement in connection withwhich...

Smelter Processes Natural Resources: April 20, 2022 - Volume 16 Issue 75 Print Report; X owns and operates an aluminum smelter. X proposes to transfer the business to a partnership. Units in the partnership will be publicly-traded. The production of alu...

Mailbox Rule Does Not Apply To Court Documents: April 20, 2022 - Bulletin Print Report; To maintain a tax refund suit against the United States, taxpayers must first file a refund claim with the I.R.S. See section 7422(a) of the Code. Taxpayers then have two years...

Airline Tickets Includible In Retiree's Gross Income: April 20, 2022 - Bulletin Print Report; M is a retired airline pilot who was formerly employed by United Airlines, ("UA"). In 2016, UA provided retired pilots (and their family members and friends) with fre...

Stock Subject To First Refusal Right Is Common Stock: April 19, 2022 - Volume 16 Issue 74 Print Report; Pursuant to a plan of recapitalization, X issued shares of new voting common stock and new nonvoting common stock to its shareholders in exchange for shares of its ou...

Private Duty Nurses Were Employees: April 19, 2022 - Bulletin Print Report; P was engaged in the business of providing at-home private duty nursing services to children with special needs, ("patients"). P supplied all nurses with a contract f...

Jurisdiction Lacking With Respect To Untimely Refund Claims: April 19, 2022 - Bulletin Print Report; B and K are retired United Airlines, ("UA"), employees covered by UA's non-qualified deferred compensation, ("NQDC"), plan. Normally, for purposes of FI...

Grant Of Option Is Not A Sale, Exchange, Or Other Disposition: April 18, 2022 - Volume 16 Issue 73 Print Report; An option agreement provided that the option is exercisable only after the death of the optionor by giving notice to the proper person within a certain period of time...

Section 280E Properly Omitted From Computation Of "Base Income": April 18, 2022 - Bulletin Print Report; TP is a licensed producer of medical cannabis. TP dispenses cannabis to qualified patients through a statewide system of dispensaries. The Department's audit claimed "...

Only Property "Used" Or "Held" Is Eligible For Depreciation: April 18, 2022 - Bulletin Print Report; Plaintiff, ("P"), purchased the "Hansen Lodge" in December 2017. It needed to be improved. As of January 2018, the lodge "was furnished, utilities were...

Taxpayer Not Engaged In "Highway Transportation For Hire": April 18, 2022 - Bulletin Print Report; APP appeals from a final determination of the Tax Commissioner affirming a sales tax assessment issued to APP in connection withthe purchase of a truck and trailer. APP p...

Rebates Are Not Includible In Gross Income: April 14, 2022 - Volume 16 Issue 72 Print Report; The taxpayer, (TP), an individual, will acquire a credit card issued by a bank through an arrangement promoted by Company, (C). TP will make purchases with the credit...

Restaurant Utensils Not Purchased For Resale: April 14, 2022 - Bulletin Print Report; C operated as a casual restaurant. When C served its customers, it provided them with utensils, items the parties refer to as "small wares," for use within the...

Couple Cannot Meet Section 121's "Use" Requirement: April 14, 2022 - Bulletin Print Report; The Ws married in 2004. In 2005, MSWwas diagnosed with cancer. In that same year, she purchased the MI house where the Ws resided from 2005 through 2009. The Ws did not r...

Affiliated Group Of Entities Found: April 14, 2022 - Bulletin Print Report; TP is a subchapter S corporation. TP is owned by four siblings. Sibling A owns 100 percent of the Class A voting stock, but is only a 40 percent shareholder of Class B non-voti...

FRO And EURN Announce A Business Combination: April 13, 2022 - Bulletin Print Report; Frontline Ltd., ("FRO"), and Euronav NV, ("EURN"), have signed a term sheet that has been approved by the boards of directors of each such corporation...

Gain Not Characterized As "IRD": April 13, 2022 - Volume 16 Issue 71 Print Report; TP, Decedent's revocable trust, entered into a contract to sell a plot of real property on Date 1, with an intended closing date of Date 2. Before Date 2, however...

Connecticut Follows "Libson Shops": April 13, 2022 - Bulletin Print Report; A Connecticut combined unitary group consists of four members: A, B, C, and D, (the "Combined Group"). The Combined Group has filed a Connecticut unitary corporation...

Taxes Are "Paid" When The Tax Return Is Filed: April 13, 2022 - Bulletin Print Report; For tax year 2012, R made estimated tax payments totaling $626,965. R's tax return was due on March 15, 2013. After securing an extension, and making a final quarterly paym...

Non-Filer Not Entitled To Itemize Deductions: April 12, 2022 - Bulletin Print Report; P resided in Arizona and was employed by Home Depot. P worked from home but traveled regularly by car to the stores under his supervision. P was laid off in mid-2013. He receiv...

Shareholders Had Basis In 'S' Corporation Sufficient To Absorb Losses: April 12, 2022 - Volume 16 Issue 70 Print Report; During 1976, petitioners owned 25 percent of the stock of F, a Nevada corporation. F was an electing small business corporation. On April 23, 1976, F borrowed $100,00...

Shredded Tires Are No Substitute For Coal: April 12, 2022 - Bulletin Print Report; The question presented is whether shredded tires and railroad ties that are utilized and burned to subsidize the requirement for coal in the cement manufacturing process are ex...

Architectural Firm Was Exempt From Sales Tax: April 12, 2022 - Bulletin Print Report; The Applicant is an architectural, engineering, planning, interiors, graphics, and consulting firm. The Applicant's corporate headquarters is located in Missouri. The Appli...

Rental Vehicle Fee Properly Imposed: April 11, 2022 - Bulletin Print Report; G is an 'S' corporation. G requested a refund of rental vehicle fees. The Department denied G's refund request. G leases its taxicabs and equipment to drivers for t...

Aspiring Real Estate Broker Cannot Deduct Educational Expenses: April 11, 2022 - Volume 16 Issue 69 Print Report; During 1976, petitioners were employed as real estate agents in San Diego, California. Both were licensed to sell real estate, as real estate agents, by the Californi...

A "Section 17 Corporation" Has No "Non-Resident Taxable Income": April 11, 2022 - Bulletin Print Report; CNI is a federally chartered corporation created and organized in 1996 under the Oklahoma Indian Welfare Act, ("OIWA"), commonly referred to as a "section 17 cor...

"Residence" Necessitates Some Degree Of Permanence: April 11, 2022 - Bulletin Print Report; The parties were married in 1985. They moved to New Jersey. Beginning in the late 1990s, the parties rented an apartment on the Upper West Side of Manhattan. In 2010, the parti...

Ascertaining The Amount Of A Claim Against The Estate: April 8, 2022 - Volume 16 Issue 68 Print Report; WS, an attorney, died on November 2, 2003. His wife, GS, died on November 27, 2004. Prior to his death, WS hadrepresented HS. On September 24, 2004, HS's es...

Approval Of A Penalty Need Only Occur Before Assessment: April 8, 2022 - Bulletin Print Report; Taxpayers must disclose participation in "listed transactions" by attaching a disclosure statement to their return. In 1999, Taxpayer became a participating employer...

Section 481(a) Adjustment Excluded From REIT's "Gross Income": April 8, 2022 - Bulletin Print Report; Taxpayer is a State A corporation that intends to elect to be taxed as a real estate investment trust, ("REIT"), beginning with its tax year ending Date B. Taxpayer o...

Homeowner Exemption Statutes Were Substantially Similar: April 8, 2022 - Bulletin Print Report; P has lived in his LC home since 1990. P's wife owned property in Utah. P and his wife filed joint income tax returns. Neither P nor his wife ever resided at either Utah pr...

Post Holdings' Spin