6800 Results

Business Purpose For Distribution Found
June 23, 2021 - Volume 15 Issue 119 Print Report
Distributing, (D), is a State X corporation. D is engaged in two businesses: MB and EB. D has a single class of common stock outstanding, all of which is held by SHA. Employee...
L Brands, Inc. Announces Details Of Proposed Victoria's Secret Spin-Off
June 23, 2021 - Bulletin Print Report
L Brands, Inc., ("L"), has decided to divest its Victoria's Secret operation in a tax-efficient manner, i.e., by means of a tax-free spin-off of such operation to...
Virginia Has Not Adopted The "CARES" Act
June 23, 2021 - Bulletin Print Report
The taxpayer filed a 2018 Corporate Application for Refund Carry Back of Net Operating Loss, claiming a net operating loss deduction for the 2016 taxable year by carrying back...
Universal Music Group B.V. Will Have New Owners
June 22, 2021 - Bulletin Print Report
Vivendi S.E., ("V"), currently owns 80 percent of the Ordinary Shares of Universal Music Group B.V., ("UMG"), and a consortium led by the Tencent group owns...
The Willens Deal Survey June 2021
June 22, 2021 - The Deal Survey: June 2021 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.
Temporary Cessation of Business Activity Does Not Bar Deduction
June 22, 2021 - Volume 15 Issue 118 Print Report
X, an attorney, was admitted to practice law in Z in May 1987. In September 1986, X began employment as an associate attorney with a law firm. In June 1988, accepted employment...
Claims Processing Services Not Subject To Sales Tax
June 22, 2021 - Bulletin Print Report
Petitioner, ("P"), is a Kansas limited liability company with a principal place of business in Florida. P does not maintain an office in New York State. P does not ha...
Bitcoin And Ether Differ In "Nature And Character"
June 22, 2021 - Bulletin Print Report
Virtual currency is a digital representation of value that functions as a medium of exchange, a unit of account, or a store of value other than a representation of the U.S. dol...
Plaintiffs Not Injured By Unenforceable "Individual Mandate"
June 21, 2021 - Bulletin Print Report
As originally enacted, the Affordable Care Act required most Americans to obtain minimum essential health insurance coverage. The Act also imposed a monetary penalty on individ...
Donor Lacks "Standing" To Sue Donor-Advised Fund's Sponsor
June 21, 2021 - Bulletin Print Report
Schwab Charitable Fund, ("SCF"), is a 501(c)(3) public charity that sponsors a donor-advised fund. The fund allows donors to make tax-deductible charitable donations...
Ascertaining One's "Principal Residence"
June 21, 2021 - Volume 15 Issue 117 Print Report
For the past 11 years, petitioner, (P), has been employed as an internal revenue officer by the I.R.S. in New Jersey. On January 21, 2005, P purchased a "residential condo...
Advisory Bulletin Is Not A "Regulation"
June 18, 2021 - Bulletin Print Report
Oil and gas producers in Alaska have been subject to an annual production tax since 1977. The statutes have included a variety of credits that North Slope producers may obtain...
Inherited I.R.A. Ruled To Be Exempt Property In Chapter 7 Case
June 18, 2021 - Volume 15 Issue 116 Print Report
The Chapter 7 Trustee objected tothe claim of exemption of debtors JST and SFB in the asset known as "the Inherited I.R.A." The Inherited I.R.A. was a...
Legal Tender Generally Exempt From Illinois Retailers' Occupation Tax
June 18, 2021 - Bulletin Print Report
A client will be selling paper currency to customers located in Illinois. The currency to be sold was generally issued by a nation or by a state's government. The currency...
What Is The "Change" Date In A Title 11 Case?
June 17, 2021 - Volume 15 Issue 115 Print Report
TP began incurring losses and generated a net operating loss (NOL) carryforward in its tax year ending Year 1. On Date 1, TP filed a voluntary petition in bankruptcy...
No Loss Deduction For "Withheld" Income
June 17, 2021 - Bulletin Print Report
Mr. Mark Staples, ("S"), worked for the federal government until 2012, at which time he retired therefrom due to a disability. In that same year, he began receiving d...
Aircraft Not Used Principally In Interstate Commerce
June 17, 2021 - Bulletin Print Report
A purchased the Aircraft in Ohio and stored it in Maryland, his place of residence. He did not pay any sales and use tax for the Aircraft in either of Ohio or Maryland. During...
Property Leased By A Charter School Not Exempt From Tax
June 17, 2021 - Bulletin Print Report
Texas has authorized O to operate public open-enrollment charter schools and provide public education... Part of O's main campus is located on property it does not own but...
Taxpayer Runs Afoul Of The "Substantial Variance" Rule
June 16, 2021 - Bulletin Print Report
E's 2017 tax return reported a loss of $1,419,373. Several months after filing its 2017 return after the close of its 2017 fiscal year on March 31, 2018, E filed an amended...
Defrauded I.R.A. Owner Not "Distributee" Of Unauthorized Withdrawals
June 16, 2021 - Volume 15 Issue 114 Print Report
During 2008, Petitioner, (P), was an employee of the U.S. Air Force, and MS, his wife, was an employee of BT. P and MS permanently separated in January 2009 and were...
Inherited 401(k) Account Is Not Part Of Bankruptcy Estate
June 16, 2021 - Bulletin Print Report
Debtors filed a Chapter 7 bankruptcy petition on April 2, 2020. Prior to the filing of the bankruptcy, Decedent died on February 5, 2020. The Decedent owned a 401(k) account wi...
Valuing A "Survival Claim Action" For Estate Tax Purposes
June 16, 2021 - Bulletin Print Report
Decedent, a New Jersey resident, died testate on March 4, 2014 from a natural gas explosion which occurred when a utility company struck a gas line while performing underground...
MIC Announces Final Step Of Its "Strategic Alternative Process"
June 15, 2021 - Bulletin Print Report
More quickly than we thought possible, Macquarie Infrastructure Corporation, ("MIC"), has announced the culmination of its "strategic alternative process" b...
Organic Mattresses Are Not "Medicines" Exempt From Sales Tax
June 15, 2021 - Bulletin Print Report
Starting in 2008, APP sold "all-organic" mattresses at retail in California. APP purchased the mattresses from a supplier,("S"),in Illinois for...
Accelerated Issuance Of Contingent Stock
June 15, 2021 - Volume 15 Issue 113 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. The plan included an agreement that the shareh...
I.R.S. Rules Favorably On A Retention Of Formation Shares
June 15, 2021 - Bulletin Print Report
The Internal Revenue Servicewill issue favorable rulings regarding the application of Sec. 355(a)(1)(D)(ii), relating to the retention by D (in a transaction intended to...
Equipment Not "Used Directly" In Manufacturing
June 15, 2021 - Bulletin Print Report
APP is a manufacturer of drywall finishing products. APP purchases an item designated as a "roll lifter." The roll lifter is designed to pick up rolls of raw material...
Start-Up Expenses Are Not "Ordinary"
June 14, 2021 - Bulletin Print Report
A is an inventor and registered patent attorney. He practices law through his firm, APPA, an 'S' corporation of which he is the sole member and owner. In 2005, he devel...
Sec. 481(a) Adjustment Included In Adjusted Taxable Income
June 14, 2021 - Bulletin Print Report
TPAtimely filed a Form 3115 to change its method of accounting for depreciation with respect to certain property beginning with the taxable year beginning January 1, 2020...
XERS's Acquisition Of SBBP Will Feature The Use Of "CVRs"
June 14, 2021 - Bulletin Print Report
Xeris Pharmaceuticals, Inc., ("XERS") and StrongbridgeBiopharmaplc, ("SBBP"), an Irish public limited company, announced that they have entered...
Pre-Sale Distribution Not A Constructive Dividend To Buyer
June 14, 2021 - Volume 15 Issue 112 Print Report
P and S were U.S. corporations filing consolidated federal incometax returns. All of the outstanding stock of S was held by P. In 1971, S and T, an unrelated U....
Recovery Of Capital Treatment For Lawsuit Settlement Proceeds Denied
June 11, 2021 - Bulletin Print Report
In March 2010, P's former spouse filed for divorce. As part of the divorce proceedings, P and her divorce attorney participated in mediation. In May 2012, P's divorce a...
Advertising Services Not Subject To Sales Tax
June 11, 2021 - Bulletin Print Report
Petitioner provides marketing and customer relationship consulting services exclusively to businesses in the automotive industry, primarily car dealerships. Petitioner uses its...
Student Not "Established" In A Trade Or Business
June 11, 2021 - Volume 15 Issue 111 Print Report
Petitioner, (P), graduated from Cornell University (CU) in May 1981 with a Bachelors degree in operations research. Following graduation, P was employed by Xerox Corp...
Oregon's Method Of Taxing Part-Year Residents Upheld
June 11, 2021 - Bulletin Print Report
Before 2016, Plaintiffs, ("Ps") resided out of state and had "no personal or financial connection to Oregon." On January 3, 2016--still residing outside of...
Social Security Benefits Are U.S. Source Income
June 10, 2021 - Bulletin Print Report
The question is whether the I.R.S. correctly computed the allowable foreign tax credit, ("FTC"), for 2014. During 2014, H received wages of $74,680 for services perfo...
Southwest Airlines Did Not Operate Enough "Departing Flights"
June 10, 2021 - Bulletin Print Report
In May 2011, SW completed an acquisition of AT. Despite the merger, the two airlines continued to file separate air carrier reports with the Department of Revenue, ("DOR&q...
Landlord Entitled To Sales Tax Credit
June 10, 2021 - Bulletin Print Report
Petitioner, ("P"), is a commercial real estate company that acquires and manages commercial properties throughout New York City. P purchases electricity and electric...
Unaccrued Contract Rights Are Property
June 10, 2021 - Volume 15 Issue 110 Print Report
RL was a closely-held corporation engaged in the mortgage banking and themortgage servicing business. RL serviced mortgages as agent for insurance companies and...
Seattle's "Amazon" Tax Found To Be Constitutional
June 9, 2021 - Bulletin Print Report
The City, on July 6, 2020, passed Ordinance No. 126108 imposing a payroll expense tax, ("PET"), on certain entities engaged in business in the City of Seattle. Ordina...
Aggregate Gross Receipts
June 9, 2021 - Volume 15 Issue 109 Print Report
In 1970, P, a domestic manufacturing corporation, formed S, a wholly-owned domestic corporation, with a capital contribution of $10,000x. P and S filed their tax returns on a c...
Rights To Tax Refund Not Exempt From Bankruptcy Estate
June 9, 2021 - Bulletin Print Report
The Debtors in this Chapter 7 bankruptcy case are husband and wife. The Debtors each claimed as exempt 100 percent of their interests in tax refunds. The Trustee objected to th...
CPA's FBAR Violations Were Found To Be Willful
June 9, 2021 - Bulletin Print Report
After graduating from the University of Miami (Fla.), K worked for an accounting firm for two years and then began his own accounting practice. During the course of his career,...
QTS's Acquisition Will Be Structured As A "Forward Cash Merger"
June 8, 2021 - Bulletin Print Report
QTS Realty Trust, ("QTS"), and Blackstone, ("BX"), announced that they have entered into a definitive agreement "under which Blackstone Infrastructure...
Adjustment To Gross Income Was A Partnership Item Of FPAA Recipient
June 8, 2021 - Bulletin Print Report
Respondent issued a notice of final partnership administrative adjustment, ("FPAA"), for the 2011 taxable year of ES NPA. The FPAA increased ES NPA's ordinary inc...
Discharge Of "Purchase Money Debt" Does Not Invoke Sec. 108(a)
June 8, 2021 - Volume 15 Issue 108 Print Report
The taxpayer is a general partnership whose sole asset is an office building, which was purchased for "$x" under a contract providing for the payment of monthly insta...
"Unprotected Conduct" Subjects Foreign Corporation To N.J. Taxation
June 8, 2021 - Bulletin Print Report
Plaintiff, ("P"), is a wholesale produce distributor which purchases and sells fresh fruits and vegetables. P purchases and distributes produce to supermarkets, groce...
MIC's Tax Vision On The Brink Of Realization
June 7, 2021 - Bulletin Print Report
In February, we wrote about Macquarie Infrastructure Corporation, ("MIC"), and its ambitious plan to divest itself of its Atlantic Aviation, ("AA"), busines...
Seat Of Management Determines "Commercial Domicile"
June 7, 2021 - Bulletin Print Report
APP is a limited liability company, ("LLC"), that was organized in Arizona on January 7, 2016. APP's articles of organization list only two members, JR and DG, bo...
Exploring The Tax Consequences Of PSTH's Proposed Transaction
June 7, 2021 - Bulletin Print Report
Pershing Square Tontine Holdings, Ltd., ("PSTH"), a special purpose acquisition company, ("SPAC"), has announced a proposed transactionthe likes of wh...
Termination Payments Not Self-Employment Income
June 7, 2021 - Volume 15 Issue 107 Print Report
M began working as an exclusive insurance agent, on an independent contractor basis, for State Farm, (SF), in 1949. On March 1, 1977, M and SF entered into the fourth of a succ...
Receipt Of Boot Does Not Warrant Loss Deduction
June 4, 2021 - Volume 15 Issue 106 Print Report
Petitioner, (P), is a New York corporation. W is a Delaware corporation with an authorized capital stock of 1,000 shares. Between September 27, 1933 and November 27, 1934, P ac...
Intent To Defraud Is A Necessary Element Of Embezzlement
June 4, 2021 - Bulletin Print Report
P and ER co-founded WW, an 'S' corporation. During 2016, P was the sole shareholder of WW. On July 18, 2018, P filed a civil suit against ER. P alleged that ER had misa...
MoneyGram Does Not Receive "Deposits"
June 4, 2021 - Bulletin Print Report
MoneyGram International, Inc., ("M"), offers various money transfer services to individuals and financial institutions. It contends that two of its services make it a...
Tax Imposed On Short-Term Occupancy Was Valid
June 4, 2021 - Bulletin Print Report
The Hs own homes within Fairfax County, ("FC"). Prior to March 20, 2018, the Hs used various online marketplace platforms to rent out their individual homes for short...
Qualified Temporary Investment Income
June 3, 2021 - Volume 15 Issue 105 Print Report
TP is a REIT. TP is the managing general partner of LP and owns approximately "a%" of the outstanding common units of LP. In Month 1, TP raised capital through a publ...
"Dual" Resident Entitled To Tax Credit
June 3, 2021 - Bulletin Print Report
Taxpayer, ("TP"), filed a Virginia resident income tax return for the 2019 taxable year, claiming a credit for income tax paid to Maryland. The Department denied the...
Vessel Manager Liable For Use Tax
June 3, 2021 - Bulletin Print Report
The Use Tax Act imposes a tax on the use, storage, or consumption of tangible personal property in this State. The Use Tax Act defines "use" as "the exercise of...
Access Is Not "Possession Or Control"
June 3, 2021 - Bulletin Print Report
G owns and operates health clubs in Texas that sell memberships subject to a Membership Agreement. G purchased items for its health clubs on which it paid sales and use tax. Th...
NOLs From "Closed" Years Could Not Be Adjusted
June 2, 2021 - Bulletin Print Report
R is in the business of aircraft leasing. R leases aircraft to its affiliate. On its tax year 2012 CBT return, it reported the total net operating loss, ("NOL"), carr...
The American Jobs Plan Would Dismantle The TCJA
June 2, 2021 - Bulletin Print Report
In addition to the "American Families Plan," primarily dealing with the taxation of individuals and families, President Biden is proposing the "American Jobs Pla...
"Place Of Celebration" Rule Determines Surviving Spouse
June 2, 2021 - Bulletin Print Report
S and H were married in New York City in 1955 and subsequently had two children together. In 1965, they entered into a separation agreement. From that point on, S and H never r...
Merger Between Date of Death and Alternate Valuation Date
June 2, 2021 - Volume 15 Issue 104 Print Report
At the time of his death on August 13, 1967, the decedent owned 41,738 shares of C. On January 11, 1968, C was merged with and into Gulf & Western, (GW). As a result of the...
Overpayment Interest On A Late-Filed Return
June 1, 2021 - Bulletin Print Report
Sec. 6611(a) of the Code provides that interest shall be allowed and paid upon any overpayment in respect of any internal revenue tax. Sec. 6611(b) provides that interest start...
Drop-Shipper Denied "COGS" Offset To Gross Receipts
June 1, 2021 - Bulletin Print Report
During 2017, P bought and sold items online, using a "drop-shipping" model in which he would purchase an item from a third party, such as Home Depot or through eBay.c...
The American Families Plan Would Increase Tax On "Capital Income"
June 1, 2021 - Bulletin Print Report
President Biden's budget proposal contains tax provisions that would implement his vision of a "fairer" tax code; one in which "high income" taxpayers w...
"Defective" 'B' Reorganization Is A Qualified Stock Purchase
June 1, 2021 - Volume 15 Issue 103 Print Report
ACQ is the common parent of an affiliated group that files a consolidated income tax return (the ACQ Group). ACQ does not directly own a controlling interest in ACQ Sub, but AC...
Accounting For "Guaranteed Excess Yield" On Participations
May 28, 2021 - Volume 15 Issue 102 Print Report
The taxpayer is a domestic building and loan association. The taxpayer sells participation interests in loans. The average contract rate of interest on the loans was lower than...
Refund Claims Not Timely Filed
May 28, 2021 - Bulletin Print Report
Plaintiff, ("P"), filed an Oregon corporation excise tax return on December4, 2015, for the tax year ending February 28, 2015. P filed an amended federal return...
SPAC To Serve As The Acquired Corporation In Cross-Border Deal
May 28, 2021 - Bulletin Print Report
In all of the SPAC deals we have encountered, the SPAC serves as the "issuing" corporation in the transaction. The SPAC issues its stock (and any other merger conside...
Cleveland Can Tax A Non-Resident's Option Exercise Income
May 28, 2021 - Bulletin Print Report
In 2007, while W was working in Cleveland, Ohio, Sherwin-Williams, ("SW"), granted her options to purchase 2,715 shares of SW common stock. W retired and moved to Flo...
"Interest" Paid On Dividend Arrearages Not Deductible
May 27, 2021 - Volume 15 Issue 101 Print Report
A corporation has outstanding seven percent cumulative preferred stock. The preferred stock certificates contain the following provisions: (1) The holders of preferre...
Laboratory Instrument Not Exempt From Sales Tax
May 27, 2021 - Bulletin Print Report
Taxpayer is an accredited hospital operating in Florida. Taxpayer is renting the "System" from "Lessor," and Lessor is charging the Taxpayer Florida Sales T...
Hertz's Reorganization Plan Has Something For Everyone
May 27, 2021 - Bulletin Print Report
The Hertz Corporation will soon emerge from bankruptcy, seemingly healthier than it ever was. In fact, the spirited bidding for Hertz not only will permit its numerouscre...
Waiver Of Carryback Period Applies To "SLLs" (Not Composed Of "PLLs")
May 27, 2021 - Bulletin Print Report
TP is the parent of an affiliated group that files a consolidated federal income tax return. In each ofYear 3 and Year 4, TP incurred consolidated net operating losses, (...
No Redemption Or "Other Corporate Contraction" Found
May 26, 2021 - Volume 15 Issue 100 Print Report
C is the common parent of an affiliated group that files a consolidated federal income tax return. C owns all of the stock of H. T was the common parent of an affilia...
Merger "Direction" Matters
May 26, 2021 - Bulletin Print Report
On May 21, 2021, Canadian National Railway, ("CN"), and Kansas City Southern, ("KCS"), announced that they have entered into a definitive merger agreement....
Grant Of Voting Rights To Preferred Holders Facilitates Reorganization
May 26, 2021 - Bulletin Print Report
Cabot Oil & Gas Corporation, ("COG"), and Cimarex Energy Company, ("XOC"), announced that they have entered into a definitive agreement whereby the comp...
Retirement Plan Contributions Exempted From "Disposable Income"
May 26, 2021 - Bulletin Print Report
P is 36 years of age. Her annual income is above the median family income in South Carolina for her household size. P makes monthly contributions to her retirement plan of $471...
The Willens Deal Survey May 2021
May 25, 2021 - The Deal Survey: May 2021 Print Report
Welcome to our summary of deals for May 2021. 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 Broad Sweep Of A Sec. 302(c)(2)(A) "Interest" In the Corporation
May 25, 2021 - Volume 15 Issue 99 Print Report
Stock in Corporation (C) was held by family members A, B, C1, and D and by Trusts 1-9 established by the family. As a result of a dispute between A, B, C1, and D and...
Software Vendors Have Access To The Tax Abatement Process
May 25, 2021 - Bulletin Print Report
Between 2009 and 2012, H purchased or licensed software from the "vendors." H installed the software on its servers in the Commonwealth (i.e., Massachusetts); and the...
Taxpayer Cannot Litigate Existence Or Extent Of Withholding Obligations
May 25, 2021 - Bulletin Print Report
In July 2014, the Gs and N entered a Contract for Deed, ("Contract"), for the sale of residential property in Arizona, ("Property"). The Gs agreed to pay $1...
Value Not Synonymous With Consideration
May 25, 2021 - Bulletin Print Report
In 2015, APP sold to P a hotel and conference center, ("HB"), for the purchase price of $125,000,000. The HB was comprised of real property, tangible personal propert...
Cycle-boats Are Not "Commercial Vessels"
May 24, 2021 - Bulletin Print Report
Petitioner provides "cycle-boat" sightseeing tours. Passengers may purchase individual tickets or book the entire boat for a group tour. Petitioner provides the drive...
Sec. 338(h)(10) Election Triggers Mandatory New York 'S' Election
May 24, 2021 - Bulletin Print Report
On July 21, 2012, FI acquired the stock of LI and BI from petitioners, ("Ps"), for cash and shares of FI, (the "sale"). LPI was an 'S' corporation....
T/DISCA--"Delayed RMT" Will Not Be Necessary
May 24, 2021 - Bulletin Print Report
The Agreement and Plan of Merger, (the "Agreement"), dated May 17, 2021, regarding the Reverse Morris Trust transaction to be undertaken by T and DISCA, reiterates, i...
Exempt Assets Count In Insolvency Computation
May 24, 2021 - Volume 15 Issue 98 Print Report
On October 9, 1984, the taxpayers purchased their residence for $130x. On October 7, 1987, the mortgagee foreclosed on the residence. At the time of the foreclosure,...
Social Security Recipient Found To Have "Excess APTC"
May 21, 2021 - Bulletin Print Report
Before 2017, H had a pending claim for Social Security benefits under the SSDI program for a disability from several years before. At or about the beginning of 2017, H enrolled...
Receipts From Sale Of "Scrip" Subject To Sales Tax
May 21, 2021 - Bulletin Print Report
Petitioner serves as the managing member of The Executive Club, LLC, which operates an adult entertainment establishment, (the "club"), in Manhattan. After guests pai...
Business Purpose Not A Factor Under Sec. 302(b)(1)
May 21, 2021 - Volume 15 Issue 97 Print Report
CMI was organized on February 20, 1976. Upon incorporation, DZ was the sole ownerof all ofthe stock. On September 8, 1978, DZ transferred 1/3 of the stock...
Tax Refunds Owned As "TBE"
May 21, 2021 - Bulletin Print Report
On March 26, 2019, the Debtor, ("D"), filed this case under Chapter 7 of the Bankruptcy Code. After the filing, D and his spouse, G, filed their 2018 and 2019 federal...
Additional Thoughts Regarding T's Historic "RMT" Transaction
May 20, 2021 - Bulletin Print Report
Apparently, certain analysts were disappointed to learn that AT&T, Inc., ("T"), is divesting its WarnerMedia business through the means of a Reverse Morris...
Theft By False Pretenses
May 20, 2021 - Volume 15 Issue 96 Print Report
A and B, while shareholders of U and V, entered into an agreement and plan of reorganization with W, a publicly traded corporation whose stock was listed on the Ameri...
Express Scripts Is A Service Provider
May 20, 2021 - Bulletin Print Report
Many health insurers provide health insurance and medical benefits programs to their members or employees, a standard part of which is a prescription drug or pharmacy benefit....
PFGC And CORE Will Engage In A "Reorganization"
May 20, 2021 - Bulletin Print Report
Performance Food Group Co., ("PFGC"), and Core-Mark Holding Co., Inc., ("CORE"), announced that they have entered into a definitive agreement pursuant to wh...
Gain From Grant Of Easement Determined
May 19, 2021 - Volume 15 Issue 95 Print Report
The taxpayer purchased a 60-acre farm in 1928 for $60,000. In 1964, an electric power company purchased an easement along the southern boundary of the farm for the construction...
Taxpayer Acted With "Reckless Disregard" Of A Known Or Obvious Risk
May 19, 2021 - Bulletin Print Report
R has been a naturalized citizen of the United States since 1982. In 1998, R opened his first foreign bank account, ("UBS account"). R chose to have a numbered, rathe...
IHSS Payments Constitute "Earned Income"
May 19, 2021 - Bulletin Print Report
APPs filed a joint federal income tax return for 2018. On that return, APPs reported wages of $6,308; adjusted gross income of $6,308; zero taxable income; zero tax liability;...
Is Mayo Clinic An "Educational Organization?"
May 19, 2021 - Bulletin Print Report
Mayo Clinic, ("M"), oversees healthcare system subsidiaries and operates the Mayo College. M is a tax-exempt organization under Sec. 501(c)(3) of the Code. The I.R.S....
Suit To Enjoin Reporting Requirements Not Barred By The "AIA"
May 18, 2021 - Bulletin Print Report
The Anti-Injunction Act, (the "Act"), provides: "No suit for the purpose of restraining the assessment or collection of any tax shall be maintained in any court...
Newspaper Cannot Deduct Cost Of a Subscriber List
May 18, 2021 - Volume 15 Issue 94 Print Report
X corporation, ("X"), is the publisher of a local newspaper. On January 1, 1971, X entered into a contract with Y corporation, ("Y"), also a publisher, for...
Reliance On Attorney Insufficient To Show Reasonable Cause
May 18, 2021 - Bulletin Print Report
Failure to file an estate tax return or pay estate tax by the relevant deadlines results in the imposition of penalties. For both late filing and late payment, penalties are ca...
How Are Digital Assets Accounted For?
May 17, 2021 - Bulletin Print Report
Although the Financial Accounting Standards Board, ("FASB"),has not yet opined on the proper accounting for digital (or "crypto") assets, we do have s...
Land Used By Utilities Authority Subject To Tax
May 17, 2021 - Bulletin Print Report
Plaintiff, ("P"), is the owner of various parcels in the defendant municipalities. P made a claim for a tax exemption. P's exemption application was denied. In 19...
Taxpayer Was A "Manufacturer" For "BPOL" Tax Purposes
May 17, 2021 - Bulletin Print Report
The Taxpayer, ("TP"), operates a plant in the City that produces fertilizer additives that are sold to fertilizer companies to be incorporated into fertilizer. Raw ma...
T And DISCA To Embark On A Massive "RMT" Transaction
May 17, 2021 - Bulletin Print Report
AT&T, Inc., ("T"), and Discovery, Inc., ("DISCA"), announced a definitive agreement "to combine WarnerMedia's entertainment, sports, and news a...
New York Gross Receipts
May 17, 2021 - Volume 15 Issue 93 Print Report
A Corporation (A), a Delaware corporation, owns and operates a social networking website. A also provides online advertising services to advertisers. A maintains sale...
Investment Club Earnings Not Subject To "SE" Tax
May 14, 2021 - Volume 15 Issue 92 Print Report
A partnership is engaged solely in the operation of a group investment program involving insured bank savings certificates. Individuals participating in the arrangeme...
No "COGS" Deduction In The Absence Of Gross Receipts
May 14, 2021 - Bulletin Print Report
During tax years 2008 and 2009, B paid approximately $180 million to acquire hundreds of thousands ofacres of minerals and lease interests in West Virginia, Pennsylvania,...
Signed And Completed "RAR" Constitutes An "Initial Determination"
May 14, 2021 - Bulletin Print Report
On November 28, 2011, an I.R.S. examining agent, ("EA"), sent petitioners a revenue agent's report, ("RAR"), attached to a Letter 4121 regarding petitio...
"Formal Declarations" Not Sufficient To Establish New Domicile
May 14, 2021 - Bulletin Print Report
Petitioners, ("Ps"), filed Form IT-203 for 2013. The form reflects that Ps moved out of New York State on June 11, 2013. Ps filed Form IT-203 for 2014. Ps' Florid...
ADS Announces A "Leveraged" Spin-Off
May 13, 2021 - Bulletin Print Report
Alliance Data Systems Corporation, ("ADS"), announced its intention to spin-off its LoyaltyOne segment, comprising its Canadian AIR MILEsReward Program and its...
Damages For Lost Rental Income
May 13, 2021 - Volume 15 Issue 91 Print Report
During a taxable year, the taxpayer, a land holding company whose income is primarily derived from the business of renting its land,granted a pipeline right-of-...
Excess Social Security Benefits Includible In Gross Income
May 13, 2021 - Bulletin Print Report
For a number of years before 2016, Petitioner, ("P"), was eligible for, and in fact received, Social Security disability benefits. Her eligibility ended sometime in 2...
Regulatory Measures Attract Less Scrutiny Under The Commerce Clause
May 13, 2021 - Bulletin Print Report
G is a North Carolina-based corporation engaged in the business of selling tobacco products and related items. The products are delivered to G's Florida customers by common...
What If Sycamore Acquired Victoria's Secret?
May 12, 2021 - Bulletin Print Report
The beleaguered L Brands, Inc., ("LB"), announced that its Board of Directors has unanimously approved a plan to separate the company into two independent public comp...
Child Tax Credit Not "A Public Assistance Benefit"
May 12, 2021 - Volume 15 Issue 90 Print Report
Debtor, (D),filed a petition for relief under Chapter 13 of the bankruptcy code. On her Schedule C, D claimed exempt, as a "public assistance benefit,"...
Sellers Of Stock Were California Residents
May 12, 2021 - Bulletin Print Report
APPs were residents of Californiathrough 2007. APPs owned all of the shares of J. On February 25, 2008, APPsdrove to Henderson, Nevada and stayed for three days. AP...
Lessee-User Tax Not Properly Assessed
May 12, 2021 - Bulletin Print Report
The center is owned by the foundation and is used as a fitness center. The foundation hired the management company to manage the operations of the fitness center. The Managemen...
Merger Consideration Measured By Foregone Dividends
May 11, 2021 - Bulletin Print Report
Bonanza Creek Energy, Inc., ("BCEI"), and Extraction Oil & Gas, Inc., ("XOG"), announced that they have entered into a definitive agreement to combine i...
"COBE" Applies to 'B' Reorganizations
May 11, 2021 - Volume 15 Issue 89 Print Report
T Corporation, (T) sold all of its assets for cash to Z Corporation, (Z). T and Z were unrelated. The sale was made "as part of a plan" in connection with&n...
Determining The "Source" Of An IRA Contribution
May 11, 2021 - Bulletin Print Report
TPs are residents of State-1. In 2016, TPsearned W-2 wages. All of the wages were earned in Utah. TPs filed a Utah tax return as non-residents, reporting this income. Als...
Comptroller's Selection Of Apportionment Method Upheld
May 11, 2021 - Bulletin Print Report
The Partners are headquartered in Massachusetts. Each of the Partners is a corporation. Each of the Partners is a limited or general partner in T, a limited partnership. T'...
City Of Hampton's BPOL Tax On Internet Access Is Grandfathered
May 10, 2021 - Bulletin Print Report
The court must determine whether the gross receipts that Cellco, ("C"), earns through providing "internet access services" can be included in the "BPOL...
Dividend Income Is Subject To Tax Under Sec. 1411
May 10, 2021 - Bulletin Print Report
TP is a shareholder in a C corporation. It was determined that the corporation paid TP'spaid TP's personal expenses from corporate accounts, and the payments were...
Reducing Redemption Indebtedness
May 10, 2021 - Volume 15 Issue 88 Print Report
Y, a newly formed corporation, purchased all of the stock of X from A for cash and debt, including a subordinated debenture. Shortly after the acquisition of X stock,...
Shipping And Delivery Charges Subject To Sales Tax
May 7, 2021 - Bulletin Print Report
Petitioner sells and distributes terrazzo flooring supplies and natural stone countertop materials to customers in New York State. It is undisputed that these flooring supplies...
Remote Work Deemed Performed At Principal Place Of Business
May 7, 2021 - Bulletin Print Report
On March 22, 2020, Ohio's State Director of Health issued an Order directing that "all individuals currently living within the State of Ohio...stay at their home or at...
Bid-In Price Did Not Represent Fair Market Value
May 7, 2021 - Volume 15 Issue 87 Print Report
Petitioners owned real property in Austin, Texas (the "DCP"). The DCPwas not used in any trade or business of petitioner. The mortgage on the DCP, whi...
Sales Of Hydrogen Fuel Not Subject To Sales Tax
May 7, 2021 - Bulletin Print Report
Petitioner intends to establish a "hydrogen distribution network" using high-pressure hydrogen supply and charging stations in New York State to supply vehicles power...
Does ODP's Spin-Off Portend Or Deter Its Acquisition?
May 6, 2021 - Bulletin Print Report
The ODP Corporation, ("ODP"), announced that its Board of Directors has approved a plan "to pursue a separation of the Company into two independent, publicly tra...
Investment Club Not Engaged In A Trade Or Business
May 6, 2021 - Volume 15 Issue 86 Print Report
An "investment club," a partnership for Federal income tax purposes, was formed by a group of 20 individuals solely for the purpose of investing in securities. The me...
Deferred Compensation Not New York Source Income
May 6, 2021 - Bulletin Print Report
Petitioner, ("P"), retired in 2014 and became a resident of California on March 31, 2014. Prior to his retirement, P was a resident of New York State. P was employed...
A Shooting Range Falls Under The "Amusement" Category
May 6, 2021 - Bulletin Print Report
S operates an indoor shooting range in Phoenix, Arizonaunder the name "Shooter's World." The transaction privilege tax is an excise tax on the privilege or...
Unclaimed Deposits Constitute Income To Bank
May 5, 2021 - Volume 15 Issue 85 Print Report
The taxpayer, a national bank, acquired various assets and assumed certain liabilities of a liquidated national bank (the predecessor bank). Among such liabilities were certain...
Foreign Corporation's Capital Gain Subject To NYC "GCT"
May 5, 2021 - Bulletin Print Report
Petitioner, ("P"), is owned by two limited partnerships, OLP and QOLP, (the "POEs"). The POEs' investment strategy is to buy equity interests in alterna...
"Unitary" NOL Not Eligible For Carryover
May 5, 2021 - Bulletin Print Report
Maine applies the "unitary business/formula apportionment approach" to identify the portion of income that is fairly taxable by Maine. If a group of corporations meet...
Investors Denied Theft Loss Deduction
May 4, 2021 - Bulletin Print Report
Petitioners, ("Ps"), filed Schedules C for wife's realty business and husband's consulting business, ("H"). H entered into a stock purchase agreemen...
Payments To Settle Civil Antitrust Lawsuit Are Deductible
May 4, 2021 - Volume 15 Issue 84 Print Report
T is a railroad that transports coal throughout various central and southern states. In 1973, Competitor ("C") was formed to develop, build, and operate the pipeline....
MDP Unveils A "Morris Trust" Transaction
May 4, 2021 - Bulletin Print Report
Meredith Corporation, ("MDP"), is engaged in the active conduct of two separate and distinct trades or businesses:a "Local Media" business and a "...
District Court Does Not Have Jurisdiction Over Overpayment Interest Claim
May 4, 2021 - Bulletin Print Report
The Ps are victims of Bernie Madoff'sPonzi scheme and "paid millions of dollars in taxes on income that they later learned was fictitious." The Ps filed mul...
Legal Expenses In Defending Infringement Claims Ruled Deductible
May 3, 2021 - Bulletin Print Report
Mylan, Inc., ("M"), is a manufacturer of brand name and generic pharmaceutical drugs. It incurred significant legal expenses in preparing "notice letters" a...
Realty Income Corporation Will Acquire VEREIT, Inc.
May 3, 2021 - Bulletin Print Report
Realty Income Corporation, ("R"), and VEREIT, Inc. (V), each a real estate investment trust, ("REIT"), announced that the two companies have entered into a...
When Is A Dividend "Distributed?"
May 3, 2021 - Volume 15 Issue 83 Print Report
T is a REIT. T has outstanding one class of stock which is traded on a national stock exchange. T owns "x%" of the stock of A. T acquired the stock in Month 1 as rent...
Storage Tanks Exempted From Personal Property Tax
April 30, 2021 - Bulletin Print Report
AG manufactures power drive gear systems. The manufacturing process requires AG to use special furnaces. The parties do not dispute that the furnaces constitute "machinery...
New Jersey's "AMA" Is Preempted By P.L. 86-272
April 30, 2021 - Bulletin Print Report
S, located in California, is a canner of tomato products. The taxpayer employs a representative in New Jersey. S did not maintain an inventory of products in N.J. The Director...
I.R.S. Explains How to Correct a Pension Reporting Error
April 30, 2021 - Volume 15 Issue 82 Print Report
A taxpayer, TP, commenced pension benefits on August 31, 2002. TP is entitled to a monthly amount payable for his life. If TP's spouse, B, survives after his deat...
Attorney's Fees Were Miscellaneous Itemized Deductions
April 30, 2021 - Bulletin Print Report
Petitioners timely filed a joint income tax return for 2016 reporting wages of $53,875 and a $14,000 loss on Schedule E, Supplemental Income and Loss. Petiti...
Royalty Income Exclusion Again Found To Be Unavailable
April 29, 2021 - Bulletin Print Report
On P's amended form CT-3A for 2009, P subtracted $273,090,225 on line 15. Of the total amount, $259,649,019 represents royalty payments received by P pursuant to license ag...
Calculating A QSF's Modified Gross Income
April 29, 2021 - Volume 15 Issue 81 Print Report
In Year 1, the S.E.C. filed a civil action against Entities and certain individual defendants alleging violation of federal securities laws. The court granted the S.E...
Will FSM's Acquisition Of Roxgold Be A Reorganization?
April 29, 2021 - Bulletin Print Report
Fortuna Silver Mines, Inc., ("FSM"), and Roxgold, Inc., ("R"), each a Canadian corporation, announced that they have entered into a definitive agreement &qu...
Trucks Not Part Of The Manufacturing Process
April 29, 2021 - Bulletin Print Report
C is a sugar cane milling and manufacturing company. C argued that the trucks and trailers it used to transport cut cane to the sugar mill are "an integral part of the sug...
President Biden Releases Certain Details Of His "American Families Plan"
April 28, 2021 - Bulletin Print Report
In advance of tonight's address before a joint session of Congress, President Biden and his staff have published a "fact sheet" that provides certain details of h...
Night Worker Is the "Custodial" Parent
April 28, 2021 - Volume 15 Issue 80 Print Report
Petitioner, (P), timely filed his 2009 and 2010 Idaho income tax returns. Subsequent to P filing his incometax returns, the Tax Commission received a second pai...
JCOM Announces A Spin-Off
April 28, 2021 - Bulletin Print Report
J2 Global, Inc., ("JCOM"), "a leading internet information and services company," announced its plan to separate the company into two independent publicly t...
Honey Bees Constitute "Livestock"
April 28, 2021 - Bulletin Print Report
The question presented is the following: Are sales of honey bees exempt from the sales and use tax as "livestock" under South Carolina Code Section 12-36-2120(4)? The...
Who Owns Residential And Commercial Waste?
April 27, 2021 - Bulletin Print Report
The use-tax assessments at issue relate to N's purchases of (1) a 2015 P truck, (2) a 2013 P truck, and (3) a 2013 L truck. The L truck is designed to pick up and haul resi...
Owner Of A Foreign Bank Account Has A "Financial Interest" Therein
April 27, 2021 - Bulletin Print Report
Regulations implementing the Bank Secrecy Act require that "each person subject to the jurisdiction of the United States...having a financial interest in...a...financial a...
Characterizing Income From Surrender Of Insurance Contract
April 27, 2021 - Volume 15 Issue 79 Print Report
TP, a corporation headquartered in State A, is a distributor of Product 1 and a producer of Product 2. On Date 1, TP purchased from C1 contracts that provided approxi...
The FTC's Ability To Seek Equitable Monetary Relief Is Circumscribed
April 26, 2021 - Bulletin Print Report
The petitioner, ST, controlled several companies that provided borrowers with short-term "payday" loans. In 2012, the Federal Trade Commission, (the "FTC" o...
11th Circuit Reverses District Court On Tax Refund Issue
April 26, 2021 - Volume 15 Issue 78 Print Report
NB is the parent of a number of subsidiaries, including B. NB filed consolidated income tax returns on behalf of itself and its subsidiaries pursuant to a tax sharing...
Cannabis Business Cannot Enlarge Its "COGS"
April 26, 2021 - Bulletin Print Report
H operates a retail cannabis dispensary. H sold several categories of products, including "buds." H purchased the buds from its patients-growers and did not grow any...
Reasonable Cause For Failure To File Not Shown
April 26, 2021 - Bulletin Print Report
Mr. A operates a construction business as a sole proprietorship. Mrs. A handles the business paperwork. Plaintiffs, ("Ps"), regularly hire subcontractors as needed fo...
The Willens Deal Survey April 2021
April 23, 2021 - The Deal Survey: April 2021 Print Report
Welcome to our summary of deals for April 2021. 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.
MLHR To Annex KNL In A Taxable Transaction
April 23, 2021 - Bulletin Print Report
Herman Miller, Inc., ("MLHR"), and Knoll, Inc., ("KNL"), announced that they have entered into a definitive agreement pursuant to which MLHR will acquire KN...
Partnerships Need Not Reduce Their Depletion Deductions
April 23, 2021 - Bulletin Print Report
TPs are engaged in the business of mining and thus both are subject to the Minnesota occupation tax. See Minn. Stat. section 298.01 subd. 4. The occupation tax, which is impose...
Prepayment Of Mortgage At A Discount
April 23, 2021 - Volume 15 Issue 77 Print Report
In order to reduce the number of its low-interest mortgages, a financial institution offered a 10-percent discount to each individual with an existing low-interest mo...
MIDD Agrees To Acquire WBT
April 23, 2021 - Bulletin Print Report
The Middleby Corporation, ("MIDD"), and Welbilt, Inc., (WBT), announced that they have entered into a definitive agreement "under which MIDDwill acquire WB...
The Limits of Sec. 1033
April 22, 2021 - Volume 15 Issue 76 Print Report
In 1936, petitioner, (W), bought a tract of land in Port Arthur, Texas, on which was situated a building known as the LC. W's basis in the property was $47,015.13...
NASCAR's Broadcast Revenues Allocated To Ohio
April 22, 2021 - Bulletin Print Report
NASCAR Holdings, Inc., ("N"), is headquartered in Daytona Beach, Florida and sanctions races at tracks in more than 30 states, Canada, Mexico, and Europe. During the...
CNI Makes "Blowout" Bid For KCS
April 22, 2021 - Bulletin Print Report
Just a few weeks ago, Canadian Pacific Railway, Ltd., ("CP"), and Kansas City Southern, ("KCS"), entered into a definitive agreement pursuant to which CP wa...
Derivative Commodity Instruments Are Intangible Assets
April 22, 2021 - Bulletin Print Report
P and its subsidiaries "engage in fully integrated petroleum operations, chemicals operations, mining operations, power generation, and energy services." P uses deriv...
Sec. 246(c)(1)A) Applies To RIC-Designated Dividends
April 21, 2021 - Volume 15 Issue 75 Print Report
X qualifies as a regulated investment company (RIC). Y, a domestic corporation that held shares of X stock, received a distribution from X. Y did not meet the holding...
Special Assessment Found To Be Valid
April 21, 2021 - Bulletin Print Report
The City Code authorizes special benefit assessments against any building to which the city of W provides water and sewer service. For warehousing, the charges are calculated b...
DELL's Exchange Offer Not A Taxable Event
April 21, 2021 - Bulletin Print Report
Dell International LLC and EMC Corporation, affiliates of Dell Technologies, Inc., ("DELL"), are offering to exchange outstanding notes for "exchange notes."...
Thoughts On VMW's "Special Cash Dividend"
April 21, 2021 - Bulletin Print Report
An important aspect of the transaction pursuant to which VMW will be separated from DELL via a tax-free spin-off, is that, at closing, "VMW will distribute a 'special...
Qualifying For a New Trade or Business
April 20, 2021 - Volume 15 Issue 74 Print Report
In 1964, ER was qualified as a licensed practical nurse, (LPN), in Minnesota. She has been engaged in the nursing field since 1964....
Shared Responsibility Payment Is Not Entitled To Priority
April 20, 2021 - Bulletin Print Report
On November 15, 2019, J filed for relief under Chapter 13 of the Bankruptcy Code. The United States claims a tax and interest for a total priority claim attributable to the sha...
PepsiCo Shell Subsidiary Properly Included In Unitary Group
April 20, 2021 - Bulletin Print Report
Under Illinois law, business income from a unitary business group which is properly attributable to Illinois is subject to income taxation. Illinois allows...
Sales To A Fraternity Are Subject To Meals And Rooms Tax
April 19, 2021 - Bulletin Print Report
Petitioner, ("P"), provides meals and management services to a fraternity, on the premises of a fraternity house at a public university, through a meals and managemen...
Lavish Spending Prevents Discharge Of Tax Debts
April 19, 2021 - Bulletin Print Report
H appeals the district court's determination that his federal tax debts were not dischargeable in bankruptcy because H had willfully evaded paying them. H has been a self-e...
KIM And WRI Plan A Two-Party Merger
April 19, 2021 - Bulletin Print Report
Kimco Realty Corporation, ("KIM"), and Weingarten Realty Investors, ("WRI"), each a real estate investment trust, ("REIT"), announced that they ha...
Worthless Loan Is a Nonbusiness Bad Debt
April 19, 2021 - Volume 15 Issue 73 Print Report
Petitioner is a software engineer. He developed software and licensed it to NPGS and NPS. During the year in issue, petitioner, age 51, was the C.E.O. and owned 48.3...
Site Fees Subject To Sales Tax
April 16, 2021 - Bulletin Print Report
P owns a special events venue in Suffolk County, New York. It offers facilities for events and celebrations... The venue can be rented to customers with or without catering. Re...
Split-Off Not Recast as a Shareholder-Level Exchange
April 16, 2021 - Volume 15 Issue 72 Print Report
X Corporation, (X), and Y Corporation, (Y), were each engaged in the construction business. Mr. A and Mr. B each owned, for more than five years, 50 percent of the st...
Yogurt Cups Not Subject To Sales Tax
April 16, 2021 - Bulletin Print Report
P is a convenience store chain with numerous locations throughout New York State. These locations have both indoor and outdoor seating for customers. P locates the individual 8...
DELL Announces Eagerly Anticipated Spin-Off Of VMW
April 15, 2021 - Bulletin Print Report
With the five year anniversary of Dell Technologies Inc.'s acquisition of EMC Corporation rapidly approaching, such anniversary beingthe date on or after which a spin...
Maintenance Of Citizenship Does Not Prevent Change Of Domicile
April 15, 2021 - Bulletin Print Report
Taxpayer, ("TP"), filed a Virginia Special Non-Resident Claim for Individual Income Tax Withheld for the 2019 taxable year for taxes withheld on a distribution from a...
Deed In Lieu Of Foreclosure
April 15, 2021 - Volume 15 Issue 71 Print Report
Appellant and her former spouse, JDO, were separated on August 29, 1988, and were subsequentlydivorced on August 22, 1991. &nb...
The I.R.S. Non-Acquiesces To The Schieber Decision
April 15, 2021 - Bulletin Print Report
In Schieber v. Commissioner, T.C. Memo. 2017-32, the issue was whether, and to the extent to which, the taxpayer was "insolvent" for tax purposes....
Lawyer's Fines Not Deductible
April 14, 2021 - Volume 15 Issue 70 Print Report
Petitioner, (P), is a licensed attorney. Amonghis clients is his brother's business. P is a cash basis taxpayer. In...
Inventories Are Valued At "Cost"
April 14, 2021 - Bulletin Print Report
TP has a single trade or business in which it purchases and resells units of tangible personal property ("goods") that constitute merchandise in the hands of TP. TP d...
Federal Incentive Payments Are Not Contributions Or Donations
April 14, 2021 - Bulletin Print Report
TP is a medical services provider. TP operates health clinics and surgery centers. TP received federal incentive payments to upgrade its physical medical records to electronic...
"SPAC" Warrants Invite S.E.C. Scrutiny
April 13, 2021 - Bulletin Print Report
The Acting Chief Accountant of the Division of Corporate Finance of the S.E.C. has disclosed that, in certain circumstances, warrants issued by special purpose acquisition comp...
Reduction of Amount of Nonrecourse Debt
April 13, 2021 - Volume 15 Issue 69 Print Report
In 1988, A borrowed $1 million from C and signed a note payable to C for $1 million that bore interest at a fixed market rate payable annually. A had no personal liab...
Costs Related To Egg Donation And Surrogacy Are Not Deductible
April 13, 2021 - Bulletin Print Report
TPs are a male same sex couple legally married in State. TPs wish to have a child who has as much representative DNA from the couple as possible. TPA will donate sperm and TPB&...
Insurance Agent Engaged In A Qualified Trade Or Business
April 13, 2021 - Bulletin Print Report
P was formed in Year 1. In exchange for stock in P, TP and certain other shareholders contributed cash to P on Date 2. P converted into a limited liability company on Date 3 an...
"Made In America" Tax Plan Seeks To Raise U.S. Corporate Tax Revenue
April 12, 2021 - Bulletin Print Report
Because the foreign source income of a foreign corporation is not subject to United Statestaxation, U.S. corporations have always found it advantageous to conduct their f...
I.R.S. Rules On DD's "Reverse Morris Trust" Transaction
April 12, 2021 - Bulletin Print Report
LTR202114017, January 21, 2021, addresses the "leveraged"Reverse Morris Trust transaction in which DuPont de Nemours, Inc., ("D"), combined its...
Preferred Stock Dividends Not "Extraordinary"
April 12, 2021 - Bulletin Print Report
Taxpayer (whom we are assuming is a domestic corporation)acquired newly issued preferred stock of Corporation, (the "Preferred Stock"). The Preferred Stock is n...
"Open Transaction" Method Rejected
April 12, 2021 - Volume 15 Issue 68 Print Report
Plaintiff, (P), was established in the last will and testament of BP, who died onJanuary 5, 1981. P formerly owned 25 percent of the stock of W and B. In 1990,...
A Trust And Its Creators Are Separate Entities
April 9, 2021 - Bulletin Print Report
D and G owned a Chevrolet titled in their collective names. D and G also serve as grantors, trustees, and beneficiaries for the "D and G Joint Revocable Trust," (the...
"Wrongful Act" Insurance Premiums Are Deductible
April 9, 2021 - Volume 15 Issue 67 Print Report
A corporation engaged in the business of banking purchased two group liability insurance policies. The first policy indemnifies the bank against damages sustained as...
All Employees Contribute To GLG's Receipts
April 9, 2021 - Bulletin Print Report
This petition concerns the proper method for calculating petitioner's receipts for purposes of determining its general corporation tax and tax obligation to the City of New...
Determining The "Character" of "Boot" Gain
April 9, 2021 - Bulletin Print Report
Many reorganizations feature a mix of consideration paid to the target company's shareholders. It is not uncommon, for example, for the merger consideration to consist of e...
Deductions Allowed For "Business Meal Expenses"
April 8, 2021 - Bulletin Print Report
I.R.S. Notice 2001-25, (April 8, 2021), provides guidance regarding one of President Trump's last initiatives, i.e., the institution of a temporary 100-percent deduction fo...
CODI Or Gain?
April 8, 2021 - Volume 15 Issue 66 Print Report
B is a limited partnership. During 1983 and 1984, B acquired a three-acre parcel of land ("property") and constructed a 12-story office building on the prop...
Determining The Classification Of A "Foreign Eligible Entity"
April 8, 2021 - Bulletin Print Report
1. On Date 1, S1 and S2, each a non-resident alien individual, form X, a foreign business entity that is eligible to make a classification election described in Reg. Sec. 301.7...
Fire Detection Systems Are Not Mill Machinery
April 8, 2021 - Bulletin Print Report
Taxpayer, ("TP"), manufactures spun yarns. TP purchases special fire detection and suppression systems, ("Systems"). Systems are designed and used for prote...
Notification Service Is Subject To Sales Tax
April 8, 2021 - Bulletin Print Report
Petitioner sells two automated services related to government requests for proposals, ("RFPs"). The first is its Procurement Service. A governmental customer creates...
Liquidation Disregarded
April 7, 2021 - Volume 15 Issue 65 Print Report
Corporation, ("C"), is a State W professional corporation. C has been an 'S' corporation since 1985. C is authorized to issue 200 shares of common stock of wh...
Purely Public Charity Is Not A "Business"
April 7, 2021 - Bulletin Print Report
GS is a Pennsylvania non-profit corporation with its principal office in the City of Allentown, (the "City").GS is a tax-exempt organization under Sec. 501(c)(3...
Marshall Island Shippers To Combine
April 7, 2021 - Bulletin Print Report
International Seaways, Inc., ("I"), and Diamond S Shipping, Inc., ("D"), are each organized under the laws of the Marshall Islands. D and I announced that t...
No Willful Attempt To Evade Or Defeat Tax
April 7, 2021 - Bulletin Print Report
Plaintiff, ("P"), and her former husband, WH, were 50/50 owners of the Farm and SF. P and WH filed their 2012, 2013, and 2014 tax returns. The amount owed was $81,107...
Hertz's Net Operating Losses
April 6, 2021 - Bulletin Print Report
Hertz Global Holdings, Inc., ("HGH"), announcedlate last week that it has selected "an enhanced proposal" from Centerbridge Partners, Warburg Pincus,...
Goodwill Proceeds Excluded From Sales Factor
April 6, 2021 - Volume 15 Issue 64 Print Report
TP is in the business of developing and selling test, measurement, and monitoring equipment. During its 1999 tax year, TP sold its printer division to another corporation for a...
Repurchase Analogized To An Open Market Repurchase
April 6, 2021 - Bulletin Print Report
D is a State A corporation the stock of which is publicly traded and widely held. On Date 1, D formed C. D contributed assets and liabilities to C representing the operations o...
Clothing Designer Not Entitled To Research Credits
April 6, 2021 - Bulletin Print Report
M was the sole shareholder of LMI, an 'S' corporation. LMI designed, developed, produced, and sold clothing under many different brands or clothing lines. LMI followed...
The "SRP" Is Entitled To Priority Treatment
April 5, 2021 - Bulletin Print Report
In 2018, RS had not obtained health insurance. Consequently, the I.R.S. assessed a shared responsibility payment, ("SRP"), against him. On July 19, 2019, Ds jointly f...
Nurse Denied Education Expense Deduction
April 5, 2021 - Bulletin Print Report
O became licensed as a registered nurse, ("RN"), in 1999. Starting in 2005, O worked as an RN for WVC. In 2016, O's employer encouraged, but did not require, her...
Spouse's Home Ownership Deprives Couple of FTHBC
April 5, 2021 - Volume 15 Issue 63 Print Report
Before both the year in issue and her marriage to MG, MH purchased a home (the SRWDH) and used such home as her principal residence. MG and...
Municipal Corporation May Only Tax Income Earned Therein
April 5, 2021 - Bulletin Print Report
During 2017, APP was a resident of Louisville, Ohio, employed by the United States Postal Service, ("USPS"). APP reported to work at the USPS office located within th...
Update on ICLR/PRAH Deal
April 1, 2021 - Bulletin Print Report
ICLR has entered into a definitive agreement to acquire PRAHin a cash and stock transaction in which the per share merger consideration consists of (i) $80 in cash, and (...
Non-Resident Aliens And Citizens Are Not "In The Same Circumstances"
April 1, 2021 - Bulletin Print Report
Plaintiff, ("P"), and his wife are Canadian citizens who reside in Windsor, Ontario, Canada. They are both non-resident aliens who work in the United States under &qu...
Payments In Settlement Of A Fraud Judgment Are Deductible
April 1, 2021 - Volume 15 Issue 62 Print Report
In 1965, petitioner, (P), and two others formed PAP (the Company). P owed 10 percent of the Company's stock and was its president and general manager.  ...
Charges For Recycling Oily Waste Not Subject To Sales Tax
April 1, 2021 - Bulletin Print Report
Petitioner, ("P"), owns and operates a recycling terminal in New Jersey, where it recycles "oily waste." When P obtains oily waste, it recycles it through a...
News Corporation Secures A "Cost" Basis In HMH Assets
March 31, 2021 - Bulletin Print Report
Houghton Mifflin Harcourt Company, ("HMH"), owns all of the stock of Houghton Mifflin Harcourt Publishing Company, ("PC"). PC has entered into an "Asse...
Transaction Structured To Avoid The Purposes Of Sec. 1031(f)
March 31, 2021 - Volume 15 Issue 61 Print Report
Sec. 1031(f) provides that an exchange will not qualify for nonrecognition treatment when a taxpayer exchange like kind property with a related person, and when either party th...
Form 1099-C Does Not Actually Discharge Debt
March 31, 2021 - Bulletin Print Report
This putative class action stems from a consumer installment loan taken out by G prior to 2012. In early 2012, SB obtained a judgment against G. The judgment was levied against...
Administrative Remedies Must Be Exhausted Before Courts Will Act
March 31, 2021 - Bulletin Print Report
Petitioner owns commercial real estate in Charleston, West Virginia, known as the Charleston Marriott property. On February 21, 2019, petitioner filed a Notice of Intent to Fil...
Computing Entire Net Income
March 30, 2021 - Volume 15 Issue 60 Print Report
Petitioner, (P), timely filed a New York General Business Corporation Franchise Tax Return for the tax year ended December 31, 2007. In com...
Disbursements To Shareholders Found To Be Distributions
March 30, 2021 - Bulletin Print Report
SU is an 'S' corporation. SU owns an apartment building in Manhattan. SM and EM, brother and sister, own 75 percent and 25 percent of the outstanding capital stock of&n...
"Knowledge" Factor Served To Deny "Innocent Spouse" Relief
March 30, 2021 - Bulletin Print Report
When their 2005 joint tax return came due, L and D could not pay the taxes owed. D was forced to set up an installment agreement with the I.R.S. Little changed in 2006. A simil...
Property Tax Exemptions Were "Substantially Similar"
March 30, 2021 - Bulletin Print Report
Petitioner, ("P"), has lived in his LC home since 1990. P's wife owns two rental properties in Utah, but she sold one in 2018. Neither P nor his wife ever resided...
Supreme Court Lays Out The Criteria For "Specific Jurisdiction"
March 29, 2021 - Bulletin Print Report
Ford Motor Company, ("F"), is incorporated in Delaware and headquartered in Michigan. But its business is everywhere. Accidents involving two of F's vehicles are...
Cancellation Of Debt Owed To A Shareholder
March 29, 2021 - Bulletin Print Report
Foreign Parent is a publicly traded Country Y entity that is treated as a corporation for U.S. federal income tax purposes. Foreign Parent is the parent of a worldwide group of...
MSGE To Acquire MSGN
March 29, 2021 - Bulletin Print Report
Madison Square Garden Entertainment Corporation, ("MSGE"), and MSG Networks, Inc., ("MSGN"), announced that they have reached a definitive agreement for MSG...
Isolated Recapitalization Avoids Sec. 305(b)(3)
March 29, 2021 - Volume 15 Issue 59 Print Report
X corporation, (X), has 3,000 shares of voting common stock outstanding. A plan of recapitalization was adopted pursuant to which X agreed to theissuance...
Taxpayer Committed Only One Non-Willful Violation Of Sec. 5314
March 26, 2021 - Bulletin Print Report
B had a financial interest in 14 financial accounts in the U.K. with an aggregate balance in excess of $10,000. B did not disclose the accounts to the I.R.S. The I.R.S. conclud...
No Sec. 847 Deduction On An Amended Return
March 26, 2021 - Volume 15 Issue 58 Print Report
At the heart of this case is Sec. 847, a statute that allows insurance companies to take an optional tax deduction, provided that they also make a corresponding speci...
Deduction Of Interest Proves That The Loan Is A "QEL"
March 26, 2021 - Bulletin Print Report
Between 2000 and 2007, D took on loans (both federal and private) each semester to attend college. After graduating in 2007, D consolidated her various loans into two loans: (1...
COHR Is Terminating Its Merger Agreement With LITE
March 26, 2021 - Bulletin Print Report
One of the more heated takeover battles of the recent past appears to have come to a conclusion. Coherent, Inc., ("COHR"), announced that its board of directors has d...
Refunds Claims Dismissed For Lack Of Jurisdiction
March 25, 2021 - Bulletin Print Report
Plaintiffs, ("Ps"), seek a refund of certain federal income tax paid during tax years 2016 and 2017. Ps retained the services of a tax accounting firm--CC--to prepare...
Foreign Partnership Must File a Sec. 754 Election
March 25, 2021 - Volume 15 Issue 57 Print Report
TP is a North Carolina corporation. On January 1, 1973, TP acquired a 1/3 interest in a German partnership, known as KG. The interest acquired was equivalent to a lim...
Maximum FBAR Penalty Was Warranted
March 25, 2021 - Bulletin Print Report
K is a citizen of the United States.K's parents opened an investment account at UBS and designated K as a joint owner. Following her father's death, K signed vari...
Theft Loss Deduction Denied
March 24, 2021 - Volume 15 Issue 56 Print Report
AAA marketed itself as an investment company. In 1999, V, an individual, decided to invest in two of AAA's programs. On F...
"Temporary Storage Rule" Eliminates Use Tax
March 24, 2021 - Bulletin Print Report
PS is primarily engaged in the business of furnishing and installing custom curtain wall on buildings. PS assembles and glazes the curtain walls at its facility, (the "Fac...
A Rental Or License Is A Retail Sale Of Tangible Personal Property
March 24, 2021 - Bulletin Print Report
Petitioner, ("P"), is a casual dining company with restaurant locations nationwide, including in New York. It has entered into a contract with Company X, ("X&quo...
Canadian Pacific And Kansas City Southern To Join Forces
March 23, 2021 - Bulletin Print Report
Canadian Pacific Railway Ltd., ("CP"), and Kansas City Southern, ("KCS"), announced that they have entered into a merger agreement under which CP has agreed...
Federal Employee Entitled To "Subtraction Modification"
March 23, 2021 - Bulletin Print Report
Petitioner, ("P"), was employed by the Social Security Administration, ("SSA"), and was a member of the Federal Employees' Retirement Service,(&qu...
A Credit Is Not A "Payment"
March 23, 2021 - Volume 15 Issue 55 Print Report
A died in 1982. A's interest in X Corporation, (X), a closely held business, exceeded 35 percent of the adjusted gross estate and A's personal representative...
IBM Is Not Entitled To The "Royalty Income Exclusion"
March 23, 2021 - Bulletin Print Report
International Business Machines Corporation, ("IBM"), owns 100 percent of the stock of WTC. IBM operates in over 170 countries, primarily through locally incorporated...
Excise Tax On Billboard Owners Passes Constitutional Muster
March 22, 2021 - Bulletin Print Report
In June 2013, the Baltimore City Council enacted an ordinance, (the "Ordinance"), that imposed an excise tax "on the privilege of exhibiting outdoor advertising...
Casinos Need Not Treat Business Expenses As Wagering Losses
March 22, 2021 - Bulletin Print Report
Y requested advice on whether the Tax Cuts and Jobs Act, ("TCJA"), amendment to the deduction for wagering losses under Sec. 165(d) of the Code applies only to indivi...
Withholding Tax For CTB's Foreign Shareholders?
March 22, 2021 - Bulletin Print Report
Goodyear Tire & Rubber Co., ("GT"), and Cooper Tire & Rubber Co., ("CTB"), have entered into a definitive merger agreement pursuant to which GT will...
The Willens Deal Survey March 2021
March 22, 2021 - The Deal Survey: March 2021 Print Report
Welcome to our summary of deals for March 2021. 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.
Transfer Of Identical Assets Does Not Result In Diversification
March 22, 2021 - Volume 15 Issue 54 Print Report
A, B, T1, and 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 istraded on the New Y...
Maintenance And Repairs Of Rental Vehicles Not Subject To Sales Tax
March 19, 2021 - Bulletin Print Report
Petitioner is engaged in the business of passenger car rentals. Petitioner states that its fleet of rental cars requires, not surprisingly, "frequent maintenance and occas...
New Jersey Court Endorses The "Per Form" FBAR Penalty Approach
March 19, 2021 - Bulletin Print Report
Regulations require the annual filing of an "FBAR" form for covered individuals who have "a financial interest in a financial account in a foreign country."...
Exempt Organization Acted As A "Co-Vendor" For Sales Tax Purposes
March 19, 2021 - Bulletin Print Report
Petitioner is an exempt organization under Sec. 501(c)(3) of the Internal Revenue Code; and is registered as an exempt organization for New York State Sales Tax purposes. Petit...
Power To Terminate Life Estate Not Property
March 19, 2021 - Volume 15 Issue 53 Print Report
In a prior year, a taxpayer entered into a trust agreement pursuant to which the taxpayer transferred common stock to the trustee. The trust agreement provides that the income...
Why Does New York Like Assigned Long-Term Vehicle Leases?
March 18, 2021 - Bulletin Print Report
In some instances, a New York customer of P who entered into a long-term motor vehicle lease agreement with P seeks to assign that lease to another person. The assignee does no...
LBO Is A QSP
March 18, 2021 - Volume 15 Issue 52 Print Report
H is a State X corporation organized to hold all of the stock of P. H has an authorized capitalization of 10 million shares which are owned as follows: (i) 18.25 percent by cer...
Per Capita Payments To Tribe Members Are Taxable
March 18, 2021 - Bulletin Print Report
The Miccosukee Tribe, (the "Tribe"), is a federally recognized American Indian tribe under the Indian Reorganization Act of 1954. C and O, a married couple with five...
Separation From Service Exception To Sec. 72(t) Not Applicable
March 18, 2021 - Bulletin Print Report
P worked for Home Depot and participated in its section 401(k) plan. In 2014, he retired from Home Depot and transferred his section 401(k) plan account balance to a traditiona...
Late Transfer Not "Incident To The Divorce"
March 17, 2021 - Volume 15 Issue 51 Print Report
TP and Former Spouse (FS) jointly purchased the House, which they used as their marital home during their marriage. TP and FS were divorced pursuant to a Judgment of...
General Electric Company To Propose "Reverse Stock Split"
March 17, 2021 - Bulletin Print Report
General Electric Company, ("GE"), has an inordinately large number of shares outstanding, approximately 8.8 billion at last count. Its board of directors hasexp...
Property Not Used Exclusively For Charitable Purposes
March 17, 2021 - Bulletin Print Report
The subject property, for which a real property tax exemption is sought, is improved with the "DRAC," which contains an indoor swimming facility, locker rooms, storag...
Upkeep Of A Certified Historic Structure Is Permissible
March 17, 2021 - Bulletin Print Report
If a donor of an easement on a building in a registered historic district installs an accessibility ramp in order to comply with the Americans With Disabilities Act, ("ADA...
ESA And ESH Will Go Private
March 16, 2021 - Bulletin Print Report
Extended Stay America, Inc., ("ESA"), and Extended Stay Hospitality, Inc., ("ESH"), have had a unique relationship that will soon be ending. The companies f...
Complete Liquidation Recast To Partial Liquidation
March 16, 2021 - Volume 15 Issue 50 Print Report
X was engaged in the business of land development. X's assets consisted of contract receivables, developed land, and undeveloped land. Y is a wholly owned subsidi...
Contractor Did Not Purchase Installation Contract
March 16, 2021 - Bulletin Print Report
Petitioner, ("P"), performs general contracting and concrete placement work, ("concrete work"), for customers in New York. P purchases concrete from supplie...
Death Of U.S. Transferor Not A Triggering Event
March 16, 2021 - Bulletin Print Report
On Date 1, SH, a U.S. person, transferred stock of a domestic corporation to a foreign corporation, ("TFC"), in exchange solely for "a" shares of TFC, (&quo...
Instructional Classes Are Exempt From Sales Tax
March 16, 2021 - Bulletin Print Report
Applicant is a woman-focused health and fitness club where woman can go to work out for health, cardio, and toning activities. Applicant offers 30 minute group workouts that in...
Converting Recyclable Material Constituted "Manufacturing"
March 15, 2021 - Bulletin Print Report
FPRprovides both employees and management of those employees to businesses in the recycling industry. During the period at issue, FPR contracted with owners of material r...
A State's Audit Was Not An "Alternate Remedy"
March 15, 2021 - Bulletin Print Report
In Illinois, the ROTA imposes a tax on retailers who sell tangible personal property. A retailer remits the retailers' occupation tax to the Department, which the retailer...
AerCap In Line For A Basis Step-Up
March 15, 2021 - Bulletin Print Report
On March 9, 2021, General Electric Company, ("GE"), entered into a transaction agreement with AerCapHoldings, N.V., ("AerCap"), pursuant to which GE w...
Equitable Ownership Lacking
March 15, 2021 - Volume 15 Issue 49 Print Report
Petitioner's brother, BP, purchased a home (San Francisco property) in South San Francisco in 2002. He made a down-payment toward the purchase price and financed...
Guard Services Are Always Subject To Sales Tax
March 12, 2021 - Bulletin Print Report
P was engaged in a project that consisted of the development of a parcel of real estate located in the City of New York, ("Project"). The Project was new construction...
Toll Increase Did Not Violate The Commerce Clause
March 12, 2021 - Bulletin Print Report
Owned by the Indiana Finance Authority, the Indiana Toll Road, (the "Toll Road"), has been operated since 2006 by a lessee, ITR. What ITR can charge depends on state...
Location Of House Determines Residence
March 12, 2021 - Bulletin Print Report
Petitioner, ("P"), and his wife own a property that straddles the Bronx/Yonkers border. P and his wife maintain their residence on the property, which has an address...
Series E Bond Interest Is IRD
March 12, 2021 - Volume 15 Issue 48 Print Report
DA, the mother of petitioner, purchased 49 Series E bonds over the years 1948 and 1953 through 1959 of an aggregate face value of $5,125, at a total cost of $3,843.75...
LITE And COHR Revise Merger Agreement
March 11, 2021 - Bulletin Print Report
Lumentum Holdings, Inc., ("LITE"), announced an amendment to the previously announced definitive agreement between LITE and Coherent, Inc., ("COHR"). Under...
Composite Tax Return Filing Requirement Is Not Unconstitutional
March 11, 2021 - Bulletin Print Report
BE is a Virginia limited liability company that earned income from its business operations in a facility located in Alabama from 2008 to 2011. Sec. 40-18-24.2(b)(1), ("sec...
Virgin Islands' "Timeshare Tax" Is Constitutional
March 11, 2021 - Bulletin Print Report
At the center of these consolidated appeals is the Virgin Islands' timeshare occupancy tax, (the "Tax"). The Tax levies a $25 flat fee on each timeshare unit with...
Contribution of Series E Bonds
March 11, 2021 - Volume 15 Issue 47 Print Report
Y owned certain Series E bonds, in her name alone, which she wished to donate to an organization to which a charitable contribution may be made pursuant to the provis...
MCFE's Special Dividend Unlikely To Qualify As A Partial Liquidation
March 10, 2021 - Bulletin Print Report
McAfee Corporation, ("MCFE"), announced it has entered into a definitive agreement to sell its Enterprise business to a consortium led by Symphony Technology Group, (...
APO And ATH Will Effect A "Double Dummy" Transaction
March 10, 2021 - Bulletin Print Report
Apollo Global Management, Inc., ("APO"), and Athene Holding, Ltd., ("ATH"), have entered into a definitive agreement to "merge" in an all-stock tr...
Series E Bonds Cannot Be Discounted For Built-In Taxes
March 10, 2021 - Volume 15 Issue 46 Print Report
Decedent purchased Series E U.S. savings bonds (Bonds) for a total purchase price of "$b." Interest totaling "$c" accrued on the Bonds to the last date of m...
Intent To Abandon Old Domicile Not Present
March 10, 2021 - Bulletin Print Report
J and M were assessed for a total amount due of $37,934.62. The Commissioner of Ohio, (the "Commissioner"),found that J and M were residents of Ohio for each of...
C.P.A. Avoids Malpractice Liability
March 9, 2021 - Volume 15 Issue 45 Print Report
In 1986, WM, an individual, won $25 million in the Ohio lottery. WM's winnings were spread out over 20 years. At the time WM won the lottery, he bothlived a...
Assumption Reinsurance Transaction Did Not Result In A "BEAT" Amount
March 9, 2021 - Bulletin Print Report
P owns all the stock of TP. TP and CA join in the filing of a consolidated return with P. P, TP, and CA are indirect subsidiaries of FC1. P, TP, CA, and FC1 offer insurance pro...
Residence Of Ordained Minister Is Exempt From Property Tax
March 9, 2021 - Bulletin Print Report
C is an ordained minister who works for petitioner, ("P"), in an administrative capacity in the church hierarchy. C does not serve any specific congregation....
Use Tax Exemption Only Partially Granted
March 9, 2021 - Bulletin Print Report
APLUX LLC, ("A"), is a Missouri limited liability company. Its sole business purpose is to own and lease aircraft. In August 2011, A purchased the "TBM" fro...
Are TYL's Senior Notes Corporate Acquisition Indebtedness?
March 8, 2021 - Bulletin Print Report
Tyler Technologies, Inc. ("TYL") announced its intention to offer...a total of $1.6 billion aggregate principal amount of "convertible senior notes," (the &...
IRA Not Exempt From Garnishment
March 8, 2021 - Bulletin Print Report
C pleaded guilty to health care fraud. The district court ordered him to pay the defrauded insurance companies $514,576.29 under the Mandatory Victim Restitution Act,(MVR...
CVX Will "Roll Up" NBLX
March 8, 2021 - Bulletin Print Report
Chevron Corporation, ("CVX"), and Noble Midstream Partners, L.P., ("NBLX"), announced that they have entered into a definitive agreement for CVX"...
"Incident To The Divorce"
March 8, 2021 - Volume 15 Issue 44 Print Report
Petitioner, (P), was divorced in 1999. P received a check in the amount of $231,499.67 from her ex-husband in 2010, in settlement of their divorce agreement. P was a resident o...
Actual And Honest Objective Of Making A Profit Lacking
March 5, 2021 - Bulletin Print Report
Team roping has become its own event, completely separate from rodeo, and is done all over the world--though it remains most popular in the United States.Muchof the...
Graduated Transfer Tax Rates Not Unconstitutional
March 5, 2021 - Bulletin Print Report
The transfer tax is an excise tax on the privilege of recording a document when ownership of real property is transferred. The transfer tax has five tiered or graduated tax rat...
Sec. 6330 Does Not Create Independent Conditions
March 5, 2021 - Bulletin Print Report
PP was an employee leasing company that provided payroll services to a private security company in 2010 and 2011. PP paid its employees' wages and issued W-2 forms to them...
Whose Purpose Counts For Sec. 265(a)(2) and Sec. 246A?
March 5, 2021 - Volume 15 Issue 43 Print Report
HEI is a Delaware corporation. From October 1, 1987 to March 9, 1994, the common stock was owned by F and trusts for the benefit of F's family members (50 percent...
Property Zoned For Residential Use Had Been "Subdivided"
March 4, 2021 - Bulletin Print Report
As of January 1, 2007, L owned an eleven acre parcel of vacant land, ("l6A"), in Lexington, Massachusetts. For FY 2008, the town issued to L a $169,788.17 property ta...
Excess Interest Is A Capital Expenditure
March 4, 2021 - Volume 15 Issue 42 Print Report
In July, 1972, A executed a loan agreement with 10 banks under which a total of "$T" was advanced on separate seven-year notes. For the first two years, interest is a...
FB Employee's Compensation From RSUs Allocated On A Linear Basis
March 4, 2021 - Bulletin Print Report
APP began working for Facebook, Inc., ("FB"), in California in 2007. APP has not been a California resident since he departed for Singapore in 2010. APP's compens...
"RAR" Was "Initial Determination" Of Assessment Of Fraud Penalty
March 4, 2021 - Bulletin Print Report
Respondent, ("R"), commenced an examination of Petitioners', ("Ps"), 2011 Form 1040 on or shortly after October 30, 2014. RARmet with Ps' cert...
CSGP Puts Its Best Foot Forward
March 3, 2021 - Bulletin Print Report
CoStar Group, Inc., (CSGP), is determined to acquire CoreLogic, (CLGX). Its determination is unmistakably evidenced by the preemptive bid it recently communicated to the CLGX&n...
Senator Warren Unveils A "Wealth Tax" Proposal
March 3, 2021 - Bulletin Print Report
True to her word, SenatorElizabeth Warren, (D-Mass.), along with several prominent co-sponsors, has proposed what she refers to as "The Ultra-Millionaire's Tax A...
"Triangular" Constructive Dividends
March 3, 2021 - Volume 15 Issue 41 Print Report
During 1974 and 1975, G, an individual, was the president and sole shareholder of J, Inc., (J), a manufacturing company. He was also a 50 percent shareholder of GHR,...
Only "Unabsorbed" NOLs Are Extended
March 3, 2021 - Bulletin Print Report
In 2002, the New Jersey Legislature enacted "Subparagraph E," ("SE"), and disallowed a deduction for net operating loss, ("NOL"), carryovers in ta...
Sales Of Sulfuric Acid Subject To Sales Tax
March 2, 2021 - Bulletin Print Report
Petitioner, ("P"), is in the business of selling sulfuric acid, ("SA"), to contractors who perform cesspool cleaning for their customers. P's position i...
Connecticut Residents Can Look Forward To Tax Credits
March 2, 2021 - Bulletin Print Report
The Connecticut House of Representatives has passed a bill, H.B. 6516, designed to insulate"remote workers" from perniciousdouble taxation during the COVI...
Accounting For Credit Sales
March 2, 2021 - Volume 15 Issue 40 Print Report
TP is an S corporation using the accrual method of accounting. It operates an automobile dealership. Mr. O is an individual owning all of the stock of TP. &...
Department Of Revenue Cannot Contradict Its Own Guidance
March 1, 2021 - Bulletin Print Report
Deere, ("D"), was a corporation that was incorporated under Delaware law. D was the sole owner of DH, a disregarded entity. D and DH collectively owned all of the equ...
Leasing Of Painting Did Not Qualify Purchaser For "Resale Exemption"
March 1, 2021 - Bulletin Print Report
Petitioner, ("P"), is a Delaware limited liability company. P is a collector of artwork that, on occasion, leases pieces of art to others. The members of P are two tr...
T Will De-Consolidate DIRECTV
March 1, 2021 - Bulletin Print Report
AT&T, Inc., ("T"), and TPG Capital announced that they have entered into a definitive agreement under which the two parties will establish a new entity(actu...
Trademark Subsidiary and Licensee Parent Are "Unitary"
March 1, 2021 - Volume 15 Issue 39 Print Report
Home Depot (HD) is a Delaware corporation headquartered in Atlanta. It operates retail stores selling home improvement products throughout the U.S. HD created Homer T...
ICLR Agrees To Acquire PRAH
February 26, 2021 - Bulletin Print Report
ICON plc, ("ICLR"), announced it has entered into a definitive agreement to acquire PRA Health Sciences Inc. ("PRAH"), "in a cash and stock transaction...
Purchase And Trade-In Did Not Occur "At The Same Time"
February 26, 2021 - Bulletin Print Report
The Bs purchased Truck 1 from CD 1 on July 11, 2017. The purchase price of Truck 1 was $51,978.27 less the value of the trade-in vehicle, valued at $29,000, for a reduced sales...
A Partnership Is Not An Individual
February 26, 2021 - Volume 15 Issue 38 Print Report
On February 27, 2009, petitioner's cousin, XZ, acquired legal title to a property in Salinas, California (the Salinas property), which was subject to a purchase m...
Retailer Not A Guarantor Of Its Customers' Debts
February 26, 2021 - Bulletin Print Report
M operates home improvement stores. M entered into an agreement with CO, under which CO agreed to issue a private label credit card branded with M's name to M's retail...
Payments After Termination Of Employment Constitute Retirement Income
February 25, 2021 - Bulletin Print Report
Petitioner, ("P"), maintains offices and transacts business in various states, including New York. P maintains a 401(k) Plan and a Pension Plan, both of which are qua...
"Retirement Income" Not Subject To New York Withholding Tax
February 25, 2021 - Bulletin Print Report
Petitioner, ("P"), is a large retailer with locations throughout the U.S. P makes payments of various types of compensation to its employees, including payments from...
Furnishing "Personal" Information Is Not Subject To Sales Tax
February 25, 2021 - Bulletin Print Report
Petitioner enters into agreements with its customers to maintain their fleets of vehicles. Petitioner also maintains data on all maintenance performed for saidcustomers,...
Payments For Participation In Medical Study Not Excludible
February 25, 2021 - Volume 15 Issue 37 Print Report
Since approximately 1983, petitioner has suffered from gout. In 2008, C announced that it was conducting a gout study in Honolulu, Hawaii, where thepetitioner r...
Asset Acquisitions Generate New York Sales Tax Obligations
February 24, 2021 - Bulletin Print Report
TheStreet.com, Inc., ("TS" or "P"), was a publicly held corporation with its principal place of business in New York City. P is in the business of providing...
Certain Credit Card "Rewards" Found To Be Taxable
February 24, 2021 - Bulletin Print Report
During 2013 and 2014, American Express, ("AE"), offered a rewards program known as Blue Cash, ("Rewards Program"). The Rewards Program paid "Reward Dol...
City Income Taxes Not Creditable
February 24, 2021 - Bulletin Print Report
Petitioners, ("Ps"), filed a 2015 Utah resident income tax return, on which they reported their federal adjusted gross income. In addition, Ps filed a 2015 State-1 no...
Release Of Escrowed Shares Not a "Payment"
February 24, 2021 - Volume 15 Issue 36 Print Report
TP and three other individuals owned all of the stock of I. On March 14, 1971, the shareholders entered into a plan of reorganization and agreement of merger (the Acq...
GT And CTB Announce A Definitive Transaction Agreement
February 23, 2021 - Bulletin Print Report
Goodyear Tire & Rubber Company, ("GT"), and Cooper Tire & Rubber Company, ("CTB"), long-time competitors, announced that they have "entered a d...
Spinco Is A Sec. 7874(b) Surrogate Foreign Corporation
February 23, 2021 - Bulletin Print Report
D is the parent of a worldwide group of domestic and foreign affiliates, (the "D Group"). D owns Sub 1, Sub 2, Sub 3, FSub 1, and FSub 2. The D Group is engaged in Bu...
No COD Income On Surrender Of Insurance Policy
February 23, 2021 - Volume 15 Issue 35 Print Report
In September, 1984, B acquired an insurance policy on his life from Guardian Life Insurance Co. (G). The policy had a cash value portion and a dividends portion. B wa...
Third Party Reimbursement Of Price Discounts Is Part Of "Sale Price"
February 22, 2021 - Bulletin Print Report
Apple, Inc., ("A"), is a manufacturer and retailer of electronic equipment, including wireless telephones marketed as iPhones, ("IPs"). A operates online st...
The Willens Deal Survey February 2021
February 22, 2021 - The Deal Survey: February 2021 Print Report
Welcome to our summary of deals for February 2021. 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....
MIC's Reorganization Will Solve Its Tax Problem
February 22, 2021 - Bulletin Print Report
Macquarie Infrastructure Corporation, ("MIC"), is faced witha tax problem that it will deftly eliminate by means ofan "internal" reorganization...
Depreciation Is An Amount "Incurred" During The Taxable Year
February 22, 2021 - Bulletin Print Report
S operated a medical cannabisdispensary pursuant to California law. S sold cannabis to individuals who held a valid doctor's recommendation to use cannabis. S also so...
Escrowed Stock Is Part Of "Amount Realized"
February 22, 2021 - Volume 15 Issue 34 Print Report
During 1970, a taxpayer exchanged shares of stock of a corporation that he had purchased in 1969 for shares of stock in another corporation. The value of the stock re...
FTHBC Recapture Obligation Is A "Tax"
February 19, 2021 - Bulletin Print Report
ES, (or the "Debtor"),purchased a home with his mother and sister in 2008. In his income tax return for that year, he claimed a first-time homebuyer credit, (&q...
Malpractice Settlement Not Excludible From Gross Income
February 19, 2021 - Bulletin Print Report
In August 2007, B was admitted to a hospital for left knee replacement surgery. While there, B allegedly suffered personal injuries after being directed by an admissions clerk...
Energy Transfer L.P. And Enable Midstream Partners LP Strike A Deal
February 19, 2021 - Bulletin Print Report
Energy Transfer L.P., ("ET"), a master limited partnership, and Enable Midstream Partners, L.P., ("EN"), another such master limited partnership, announced...
Sec. 338(h)(10) Gain Constitutes "Business Income"
February 19, 2021 - Volume 15 Issue 33 Print Report
TP provides its customers with electronic payment services. TP's wholly-owned subsidiary, FDISG, was a Massachusetts corporation with headquarters in Massachusett...
The Tribune Buy-Out Is A "Zenz" Transaction
February 18, 2021 - Bulletin Print Report
Tribune Publishing Co., ("TPCO"), and affiliates of Alden Global Capital,in particular the affiliate named Tribune Enterprises, LLC, ("TEL"), announce...
Bankrupt Corporation Engages In A Sec. 351 Transaction
February 18, 2021 - Volume 15 Issue 32 Print Report
P1 is the common parent of an affiliated group which has elected to file a consolidated return. Sub 1, a first-tier subsidiary of P, is a property and casualty insura...
Medical Equipment And Supplies For "M&M" Patients Subject To Sales Tax
February 18, 2021 - Bulletin Print Report
Petitioner, ("P"), operates for-profit nursing homes in several states. P purchases "consumable items" such as food...drugs or medicine, medical equipment.....
Imposition Of New York Mortgage Recording Tax Not Unconstitutional
February 18, 2021 - Bulletin Print Report
The plaintiff is a not-for-profit corporation incorporated in New Jersey, and a certified development company under the "504 Loan Program," which is managed by the U....
Vivendi On The Verge Of A "Spin-Off" Of UMG
February 17, 2021 - Bulletin Print Report
Vivendi Universal S.A., ("V"), is seriously considering a distribution of 60 percent of the share capitalof its subsidiary, UMG, to V's shareholders. In fac...
Preferred Stock Is Property Other Than Money
February 17, 2021 - Volume 15 Issue 31 Print Report
P owns all of the stock of S. S sold all ofthe stock of three of its subsidiaries, S-1, S-2, and S-3, to Z for cash, an interest-bearing note, and "junior...
Economic Impact Does Not Justify A City's Largesse
February 17, 2021 - Bulletin Print Report
In 2010, the City adopted strategies to spur economic development. In 2015, Huntington University, Inc., ("HU"), and the City entered into an agreement for HU to leas...
HRL's Purchase Of KHC's "Planters" Business Comes With Tax Benefits
February 17, 2021 - Bulletin Print Report
Hormel Foods Corporation, ("HRL"), announced that it has entered into a definitive agreement to acquire the Planters snack nut portfolio from the K...
Overlapping Ownership Rule Frees RXN From The Rigors Of Sec. 355(e)
February 16, 2021 - Bulletin Print Report
Regal Beloit Corporation, (RBC), and RexnordCorporation, (RXN), announced that they have reached a definitive agreement whereby RXN will separate its "PMC" segm...
Parking Space Found Subject To Real Estate Tax
February 16, 2021 - Bulletin Print Report
The issue is whether the appellant, ("APP"), is subject to a real estate tax on her interest in a parking space in the Condominium, (the "C"). By deed dated...
Only A "Filing" Starts The Statute Of Limitations
February 16, 2021 - Bulletin Print Report
The United States and the United States Virgin Islands, ("USVI"), are separate taxing entities. Bona fide USVI residents only owe 10 percent of the income tax on thei...
Tax Court Recasts Transaction At Taxpayer's Behest
February 16, 2021 - Bulletin Print Report
Petitioner, ("P"), was organized in May 2009 to participate in the transactions described below. CMH was organized in January 2008 to serve as a holding company for t...
Bonus Payment Is Ordinary Income
February 16, 2021 - Volume 15 Issue 30 Print Report
On January 24, 1996, petitioners purchased 100 acres in Pennsylvania for $47,000. This property was subject to an oil and gas lease which expired on or about March 14...
Retirement Plan Distribution Used For Restitution Is Taxable
February 12, 2021 - Bulletin Print Report
P is a former C.P.A. From 2008 to March 2014, he worked for PCGas the company's corporate accounts payable manager. During his employment, P caused PCG to issue fraud...
Permitted Or Authorized Piping Is Real Property
February 12, 2021 - Bulletin Print Report
C is an interstate pipeline company that transports refined petroleum products. C typically obtains easements from property owners, rather than buying property, to allow the co...
Property Bequeathed To A Corporation
February 12, 2021 - Volume 15 Issue 29 Print Report
The sole shareholder of a corporation died on October 1, 1972. Under the terms of his will, all of the stock was bequeathed to his surviving spouse and children and a...
Nature Of Claim Determines Character Of Settlement Award
February 11, 2021 - Bulletin Print Report
W was employed as a Human Resources Assistant at V from July 1, 2011 until January 13, 2015. On February 4, 2014, W was diagnosed with shingles. Starting May 21, 2014, her imme...
Calculating A Resident Shareholder's "Tax Factor" For QEZE Purposes
February 11, 2021 - Bulletin Print Report
BHFis a New York corporation. BHF is taxed under Subchapter S of the Internal Revenue Code. BHF was certified as a qualified empire zone enterprise, ("QEZE"). P...
KO Will Reserve Only A Fraction Of Its Potential Tax Liability
February 11, 2021 - Bulletin Print Report
The Coca-Cola Company, (KO), recently found itselfon the wrong end of a Tax Court decision that produced a massive $3.3 billion tax deficiency which, with statutory inter...
Determining The "Amount Realized"
February 11, 2021 - Volume 15 Issue 28 Print Report
TP, a domestic corporation using the accrual method of accounting, is in the business of constructing single family homes. On January 1, 1975, a home was sold for $40...
I.R.S. Takes A Narrow View of "Historic Business"
February 10, 2021 - Volume 15 Issue 27 Print Report
T is a corporation engaged in the investment business. From its inception, T's investment practice has been to maintain approximately 1/3 of the value of its inve...
Court Refuses To Pierce The Corporate Veil
February 10, 2021 - Bulletin Print Report
On April 30, 2014, W entered into a distributorship agreement ("2014 Agreement") with B. When the parties entered into the 2014 Agreement, B was a Delaware corporatio...
Sale Of Prepaid Wireless Service Subject To Sales Tax
February 10, 2021 - Bulletin Print Report
TP was an authorized dealer for Boost Mobile, ("BM"), during the audit period. BM required TP to accept customer payments for the monthly cell-phone service plans off...
Sovereigns Are Not Called To Account For "Domestic Takings"
February 9, 2021 - Bulletin Print Report
This case concerns several dozen medieval relics and devotional objects known as the "W." During the waning years of the Weimar Republic, a consortium of three art fi...
Assessing The Nature Of SHEN's Special Dividend
February 9, 2021 - Bulletin Print Report
Shenandoah Telecommunications Company, ("SHEN"), and T-Mobile US, Inc., (TM), expect to enter into a definitive asset purchase agreement during the first quarter of 2...
"Key Employee Satisfaction" Is a Good Business Purpose
February 9, 2021 - Volume 15 Issue 26 Print Report
X, a large widely held and publicly traded corporation, owned all of the stock of Y for more than five years. X and Y were each engaged in the active conduct of a sep...
Penalty Upheld For Untimely "Submission" Of Tax Forms
February 8, 2021 - Bulletin Print Report
Plaintiff, ("P"), was the owner of certain parcels of rental property located in Hamden, Connecticut, ("properties"). On February 1, 2016, the assessor asse...
Vacation Home Found To Be A Permanent Place Of Abode
February 8, 2021 - Bulletin Print Report
Petitioners, ("Ps"), are domiciled in New Jersey. Petitioner-husband, ("P"), works primarily out of his office in New York City and was present within New Y...
Consultation Services Not Subject To Sales Tax
February 8, 2021 - Bulletin Print Report
P is incorporated in Delaware and is commercially domiciled in California. P does not have an office in New York State. P is engaged in the business of providing professional c...
The Limited Scope of the N.J. Resident Tax Credit
February 8, 2021 - Volume 15 Issue 25 Print Report
During tax year 2004, plaintiffs earned $500,000 in wages. Of that amount, $117,500 was attributable to New York (NY). Plaintiffs also earned interest income of $6,125 and divi...
COVID-19 Prevention Expenses Can Be Deducted "Above The Line"
February 5, 2021 - Bulletin Print Report
The term, "adjusted gross income," means...gross income minus the following deductions: The deductions allowable by this chapter...which are attributable to a trade o...
Ascertaining The "True Object" Of A Bundled Transaction
February 5, 2021 - Bulletin Print Report
APP is a corporation that operated two prenatal imaging centers in California. APP's prenatal imaging centers provided 3D and 4D ultrasound services to pregnant women and t...
Income From Sale of "GWPs" Is Qualifying Income
February 5, 2021 - Volume 15 Issue 24 Print Report
X is a limited partnership. X owns and operates timberland properties and timber processing operations in the U.S. X's business consist...
Fabricating Machine Not Exempt From Sales Tax
February 5, 2021 - Bulletin Print Report
P is a dentist who is purchasing a Sirona CerraMilling Machine for the fabrication of crowns, inlays, outlays, and veneers. The machine also has the capability to mill de...
A Lease Is A Sale When "Possession" Is Transferred
February 4, 2021 - Bulletin Print Report
P is a full-service teleprompter company that provides teleprompting services for corporate and entertainment events... A teleprompting service package includes a complete tele...
"Competitive" Charitable Organization's Sales Are Subject To Sales Tax
February 4, 2021 - Bulletin Print Report
R is a non-profit organization that works in conjunction with the City "to promote and add life to our downtown." One of the ways we do this "is by producing a v...
Outbound Liquidation Qualifies For Sec. 337 Protection
February 4, 2021 - Volume 15 Issue 23 Print Report
P is a Country A corporation. P conducts Business in the U.S. through USC, a State B entity treated as a corporation. P's interest in USC constitutes a U.S. Real Property I...
Liberty Media Plans To "Consolidate" Sirius XM
February 3, 2021 - Bulletin Print Report
Liberty Media Corporation, ("LM"), on February 1, 2021, entered into a "tax sharing" agreement with Sirius XM Holdings, Inc., ("SXM"), "gover...
'B' Reorganization Accompanied By An Exchange Of Securities
February 3, 2021 - Volume 15 Issue 22 Print Report
X acquired all of the stock of Y in exchange for voting stock of X. Y has an issue of six percent 15-year debentures outstanding. Pursuant to the plan, X acquired all of the de...
The Pandemic Is Not A Catastrophe For Real Estate Tax Purposes
February 3, 2021 - Bulletin Print Report
By Consent Order and judgment entered on November 2, 2017, Ps' 2017 Article 7 challenge to the assessment of their Property was resolved pursuant to an agreement whereby th...
"Usage Agreements" Are Not Sales Of Tangible Personal Property
February 3, 2021 - Bulletin Print Report
P is a publicly traded Delaware corporation that develops, manufactures, and commercializes products for the treatment of dermatological disorders. In June 2015, P acquired a l...
Short-Term Rentals Subject To Sales Tax
February 2, 2021 - Bulletin Print Report
R operates retail stores and markets tangible personal property on a "rent-to-own" basis. Customers select an initial rental term of monthly, semi-monthly, or weekly....
Applying Sec. 306(b)(4)(B)
February 2, 2021 - Volume 15 Issue 21 Print Report
C is a domestic corporation. C has outstanding shares of voting common stock. A holds 88.88 percent of the common stock. Seven other shareholders hold the rest.
Sale Of Assets Not Eligible For The "Liquidation Exception"
February 1, 2021 - Bulletin Print Report
In 2002, E was wholly owned by EPLC. In May 2000, EPLC acquired TLC. After the acquisition, EPLC merged TLC with and into E. The acquisition of TLC marked EPLC's entry into...
FCA And PSA Complete Historic Cross-Border Merger
February 1, 2021 - Bulletin Print Report
On January 16, 2021, Fiat Chrysler Automobiles N.V., ("FCA"), and Peugeot S.A., ("PSA"), were finally permitted to consummate their long-awaited business co...
Litigation Proceeds Are Massachusetts Sales
February 1, 2021 - Bulletin Print Report
S is a Delaware corporation that has a commercial domicile in Massachusetts, ("M"). S holds numerous patents on its technology. Prior to the tax years at issue, S bro...
"Opportunity" Costs Are Not Deductible
February 1, 2021 - Volume 15 Issue 20 Print Report
In 2007, the taxpayer, (TP), an individual, was the owner of a Web site business. TP and his wife, on their joint Federal income tax return for 2007, on Schedule C, d...
Fire Protection System Is a "Structural Component"
January 29, 2021 - Volume 15 Issue 19 Print Report
A taxpayer purchased and installed a fire protection system in a building used in the taxpayer's business. The system is designed to detect fire at any point in t...
Advertising Analyst Furnished Taxable Information Services
January 29, 2021 - Bulletin Print Report
DL (or "P") provides services to its clients that measure advertising effectiveness. DL measures advertising effectiveness by surveying consumers or internet users wh...
Lodging Expenses Ruled Non-Deductible
January 29, 2021 - Bulletin Print Report
P is an attorney and is licensed to practice in both Minnesota, ("M") and Washington, D.C., ("W"). During the year at issue, P maintained solo law practices...
Impairment Charges Do Not Necessarily Foreshadow Tax Losses
January 28, 2021 - Bulletin Print Report
Over the past few days, we have had announcements from companies as diverse United Parcel Service, Inc., AT&T, and Office Depot regarding plans to exit businesses that have...
Determining Holding Period For Purposes Of Sec. 857(b)(6)(C)
January 28, 2021 - Volume 15 Issue 18 Print Report
TP is a REIT. TP is an "a%" partner in Operating Partnership, (OP),which owns numerous real properties throughout the U.S. "Property," the r...
Mixture Credits Reduce Excise Tax Liability
January 28, 2021 - Bulletin Print Report
Sec. 6426 of the Code provided: "There shall be allowed as a credit--Against the tax imposed by Sec. 4081, an amount equal to the sum of the credits described in subsectio...
Notice Of Determination Was Timely Issued
January 28, 2021 - Bulletin Print Report
After Appellants, ("APPs"), filed their 2015 Minnesota, ("M"), individual income tax return and property tax refund claim, the Commissioner received a repor...
Taxpayer's "Investment In The Contract" Was Zero
January 27, 2021 - Volume 15 Issue 17 Print Report
On July 1, 1958, petitioner, (P), purchased a "Thirty Premium Life" insurance policy from NY Life. The policy required P to make quarterly premium payments...
Racking Equipment Not Eligible For Construction Costs Exemption
January 27, 2021 - Bulletin Print Report
TP designs, develops, and operates automated cold storage warehouses within the United Statesand Europe. TP provided information regarding its plans to construct a new co...
New Orleans Sales Tax Preempted By Louisiana Constitution
January 27, 2021 - Bulletin Print Report
TP seeks a redetermination of the assessment of sales and/or use tax in connection with the furnishing of meals to students and staff of M, a non-profit educational institution...
AJRD Characterizes Its "Pre-Closing Dividend"
January 26, 2021 - Bulletin Print Report
In December 2020, Aerojet Rocketdyne Holdings, Inc., ("AJRD"), announced that it had entered into a definitive agreement to be acquired by Lockheed Martin Corporation...
The Sec. 72(t) "Exaction" Is A "Tax"
January 26, 2021 - Bulletin Print Report
In 2015, the year in which P turned 42, she took loans in connection with her New York State pension plan. The Retirement System sent her a Form 1099-R. P did not report any re...
"Gross Income From The Property"
January 26, 2021 - Volume 15 Issue 16 Print Report
The Black Lung Benefits Act of 1977 imposes an excise tax on the sale of coal. The excise tax applies to all coal mined in the U.S. that is sold or used after March 31, 1978. T...
New Jersey's "PFF" Is Not Unconstitutional
January 26, 2021 - Bulletin Print Report
N.J.S.A. 54A:8-6(b)(2)(A) requires "each entity classified as a partnership for federal income tax purposes," that has more than two owners, "having any income d...
Management Fees Paid To Shareholders Not Deductible
January 26, 2021 - Bulletin Print Report
P operated an asphalt paving business in Waterloo, Iowa. P had three shareholders: JEC (owning 40 percent of the stock), MEL (owning 40 percent of the stock), and D (owning 20...
Consideration Is Needed To Find A "Sale"
January 25, 2021 - Bulletin Print Report
Petitioner operates a golf course that is "open to the public." On its website, it describes itself as a "daily fee golf course." Golfers pay a fee per pers...
Foreign Corporation's Tardiness Causes It To Forfeit Deductions
January 25, 2021 - Bulletin Print Report
P is incorporated under the laws of the U.K. P's only income-producing asset was a support vessel. A U.S. firm chartered P's vessel to perform work in the Gulf of Mexic...
Disproportionate Distributions Do Not Terminate 'S' Election
January 25, 2021 - Volume 15 Issue 15 Print Report
X Corporation, (X), elected to be an 'S' corporation effective on Date 2. However, beginning in the taxable year ending on Date 3, X made disproportionate dis...
Non-Exempt Transfer Triggers Reassessment Of Home
January 22, 2021 - Bulletin Print Report
In 1999, BW and SW created the WFT, (the "trust"), and recorded a grant deed transferring their home, (the "property"), to themselves as trustees. The trust...
Spin-Off Following A Reverse Triangular Merger
January 22, 2021 - Volume 15 Issue 14 Print Report
CP acquired all the stock of Sub 1 on Date a. The acquisition qualified as a reorganization under Sec. 368(a)(1)(A) (by reason of Sec. 368(a)(2)(E)) and under Sec. 36...
Nature Of Visa Is Determinative Of Foreign Domicile
January 22, 2021 - Bulletin Print Report
In February 2016, the Department of Revenue, (the "Department"), issued to the Hs a notice of proposed deficiency. The Hs protested the deficiency determination, clai...
The Willens Deal Survey January 2021
January 21, 2021 - The Deal Survey: January 2021 Print Report
Welcome to our summary of deals for January 2021. 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. <...
LITE's Acquisition Of COHR Features Successive Mergers
January 21, 2021 - Bulletin Print Report
LumentumHoldings, Inc., ("LITE"), and Coherent, Inc., ("COHR"), announced that they have entered into a definitive agreement "under which LITE wi...
Private Foundation Does Not Have "Excess Business Holdings"
January 21, 2021 - Volume 15 Issue 13 Print Report
Y is a private foundation within the meaning of Sec. 509(a) of the Internal Revenue Code. Y was created to receive the assets of the Estate. Those assets included, in...
Pfizer, Inc. And Mylan N.V. Collaborate To Create Viatris, Inc.
January 21, 2021 - Bulletin Print Report
Pfizer, Inc., ("PFE"), intended to effect a garden variety spin-off or split-off of its Upjohn, Inc. subsidiary. Upjohn conducted PFE's"off-patent bran...
Rental Fleet Not Considered Inventory
January 21, 2021 - Bulletin Print Report
Taxpayer, ("TP"), claimed the Inventory Tax Credit, ("ITC"), for rented machinery and equipment that was sold to third parties. La. R.S. 47:6006 provides th...
The Long Reach Of Sec. 355(b)(2)(D)
January 20, 2021 - Volume 15 Issue 12 Print Report
Rev. Rul. 74-5, 1974-1 C.B. 82, involved a distribution of the stock of a controlled corporation, Y, by a distributing corporation, X, to X's parent corporation,...
Claims For Refund Not Timely Filed
January 20, 2021 - Bulletin Print Report
On May 6, 2004, D and G closed on their purchase of SD. The purchase price was $3.7 million. D advanced the funds necessary to purchase the property. D created SD LLC. D transf...
Computing Non-Willful "FBAR" Penalties
January 20, 2021 - Bulletin Print Report
K is a U.S. citizen who has resided in Israel since 1979. During 2008-2010, K had a financial interest in several financial accounts in Israel, ("foreign financial account...
Connection/Disconnection Fees Are Subject To "URT"
January 20, 2021 - Bulletin Print Report
TP is a utility company providing electric services to customers within Indiana and outside of Indiana. The Indiana Department of Revenue, ("Department"), conducted a...
Preliminary Thoughts on Office Depot
January 19, 2021 - Bulletin Print Report
There could be a significant tax implication if Office Depot simply sold its consumer business to Staples, while retaining its other businesses and assets. Such a sale would be...
Regular Mail Provides Sufficient Notice Of A Tax Liability
January 19, 2021 - Bulletin Print Report
JO runs a farming operation and heavy construction business as a sole proprietorship. The Commissioner first sent JO a letter on April 27, 2017, to his home address, which is a...
Retention Of Estate Property Does Not Violate "Automatic Stay"
January 19, 2021 - Bulletin Print Report
Under the Bankruptcy Code, the filing of a bankruptcy petition has certain immediate consequences. A petition "creates an estate" that...comprises "all legal or...
Management Fees Treated As Not Constituting Gross Income
January 19, 2021 - Bulletin Print Report
TP elected to be a real estate investment trust,("REIT"). TP conducts substantially all of its business through OP. OP is a disregarded entity for tax purposes....
Deferred Compensation Subject To S.E. Tax
January 19, 2021 - Volume 15 Issue 11 Print Report
In 1982, P began working as an independent beauty consultant for Mary Kay, Inc. (MK). P sold MK products and recruited other individuals to join the company. <...
Partners Allocated "COD" Income
January 15, 2021 - Bulletin Print Report
In 2009, H, B, along with BO, and R formed E. E was in the business of text message advertising. E's partners entered into an operating agreement. That agreement stated tha...
I.R.S. Issues Rare Sec. 1221(a)(1) Ruling
January 15, 2021 - Volume 15 Issue 10 Print Report
TP is a REIT. TP owns and leases residential real estate to third parties. LP owns in excess of "a%" of all classes of stock of TP and all ofTP's...
Trailers Are Not Exempt "Truck Bodies"
January 15, 2021 - Bulletin Print Report
Petitioner is the owner of BT LLC, ("B"). B sells trailer-type vehicles. During the dates at issue in this matter, B sold trailer-type vehicles to non-Wisconsin resid...
Restitution And Remediation Are Deductible
January 15, 2021 - Bulletin Print Report
The I.R.S. recently issued final regulations regarding the controversial topic of the deductibility of "fines, penalties, and other amounts." The statute governing th...
"Internal" Spin-Off Not A "Disqualified Distribution"
January 14, 2021 - Volume 15 Issue 9 Print Report
P acquired Sub 1 on DateA, a date less than five years ago.Sub 1 owns all of the stock of Sub 2. Sub 2 owns all of the stock of EE. EE owns D. D is regula...
Taxpayer Retained No Substantial Rights To Research
January 14, 2021 - Bulletin Print Report
E is an 'S' corporation that designs and produces integrated controls and switchgears for custom applications in the power generation industry. In February 2009, E was h...
STE Reaches An Agreement With CMD
January 14, 2021 - Bulletin Print Report
STERIS plc, ("STE"),an Irish company, and Cantel Medical Corporation, ("CMD"), a domestic corporation, announced that STE has signed a definitive agre...
Sales Tax Refund For Utility Purchases Granted
January 14, 2021 - Bulletin Print Report
TP is an Indiana corporation which purchased an Indiana restaurant in July 2018. In July 2019, TP filed a Form ST-200 with the Department. At the same time, TP filed a Claim fo...
Taxpayer Had Constructive Receipt Of Unregistered Stock
January 13, 2021 - Bulletin Print Report
Naranda Systems, LLC, ("N"), elected to be taxed as a corporation. In January 2012, N filed a lawsuit against Violin Memory, Inc., ("V"), alleging infringem...
Sec. 86 Does Not Suffer Any Constitutional Infirmities
January 13, 2021 - Bulletin Print Report
During 2014, PK was married to GK. Before their marriage, PK and GK executed and recorded an agreement electing, under Louisiana law, a Separate Property Matrimonial Regime. In...
Do Not Rule Out A REIT Spin-Off
January 13, 2021 - Volume 15 Issue 8 Print Report
Sec. 355(h)(1) of the Code provides that: "This section (i.e., Sec. 355) shall not apply to any distribution if either the distributing corporation or the controlled corpo...
Marking The Date On Which Deficiency Interest Commences Accruing
January 13, 2021 - Bulletin Print Report
C was a Maine corporation engaged in both interstate and intrastate transportation of cargo. During 2014 and 2015, C purchased a motor vehicle, (the "Vehicle"), outsi...
Direct Deeding Of Like Kind Property Allowed
January 12, 2021 - Volume 15 Issue 7 Print Report
X and Y are unrelated persons. On May 14, 1989, X and Y entered into a contract that requires X to transfer B to Y and Y to transfer to X property of a like kind....
Waiver Of Estimated Tax Penalty Denied
January 12, 2021 - Bulletin Print Report
During tax year 2018, APPs sold shares of stock which resulted in capital gains of over $3.8 million. APPs made estimated tax installment payments... These three installment pa...
Contribution Of Partial Interest In Property Not Deductible
January 12, 2021 - Bulletin Print Report
After LM purchased real property in Bethesda, Maryland, known as 5300 Moreland Lane, she and her husband decided to tear down the existing house on that property and build a ne...
BLUE To Benefit From I.R.S.'s Relaxed Spin-Off Policy
January 12, 2021 - Bulletin Print Report
bluebird bio, Inc., ("BLUE"), has announced its intent to "separate its severe genetic disease and oncology businesses into differentiated and independent public...
FTI's "Spin-Off" Will Give Rise To Dividend Income
January 11, 2021 - Bulletin Print Report
TechnipFMC plc, ("FTI"), announced, on January 7, 2021, the resumption of activities toward its planned separation "into two industry-leading independent, public...
Replacement Property Held Primarily For Sale
January 11, 2021 - Bulletin Print Report
L is the sole member of HQE. In early 2010, HQE exchanged a warehouse property for two replacement properties. The first replacement property was a residential property, and th...
Can Boeing Deduct Any Amounts Paid (Or To Be Paid) Under Its "DPA?"
January 11, 2021 - Bulletin Print Report
The Boeing Co., ("BC" or the "Company"), the Department of Justice's Fraud Section, and the United StatesAttorney's Office recently entered in...
Conveyance of "QRP" To A "CRUT" Does Not Trigger Deferred Gain
January 11, 2021 - Volume 15 Issue 6 Print Report
TPs, husband and wife, are shareholders of C. C maintains an employee stock ownership plan (ESOP). TPs sold "x" shares of C's common to the ESOP and reinvested &q...
Processing and Marketing Methanol Produces Qualifying Income
January 8, 2021 - Volume 15 Issue 5 Print Report
X is a limited partnership. X intends to become a publicly traded partnership (MLP or PTP). X will operate two facilities that will process natural gas into methanol and synthe...
TDY And FLIR Propose A "Forward Merger"
January 8, 2021 - Bulletin Print Report
Teledyne Technologies, Inc., ("TDY"), and FLIR Systems, Inc., ("FLIR"), recently announced that they have entered into a definitive agreement under which TD...
Sole Member Of LLC Not Liable For Gross Receipts Tax
January 8, 2021 - Bulletin Print Report
New Mexico, ("NM"), imposes gross receipts tax on all "entities that engage in business in NM." The Department requires taxpayers subject to gross receipts...
Partnership Merger Qualifies As A Reorganization
January 7, 2021 - Bulletin Print Report
When can a partnership merger qualify as a reorganization for tax purposes? When the partnerships elect to be treated as corporations for federal income tax purposes. Navios Ma...
Expenses Paid With "Covered Loans" Are Deductible
January 7, 2021 - Bulletin Print Report
On January 6, 2021, the Internal Revenue Service issued Rev. Rul. 2021-2, a pronouncement of more than passing importance. This ruling renders obsolete each of Notice 2020-32,...
Insurance Premiums Cannot Be Deducted
January 7, 2021 - Bulletin Print Report
On Date 1, Member, ("M"), began circulating a private placement memorandum, ("PPM"), to potential investors. M's purpose was to acquire a membership int...
Redemption Does Not Give Rise To a Constructive Dividend
January 7, 2021 - Volume 15 Issue 4 Print Report
B and C, who are brothers, each owned 50 percent of the stock of a corporation. C died. B was a party to a stockholders' agreement which provided that, upon the death of ei...
Ownership Includes "Equitable Title" To Property
January 6, 2021 - Bulletin Print Report
International American Education Federation, Inc., ("IAEF"), operates charter schools in Texas. In 2016, IAEF leased real property, (the "Property"), from a...
Loss Of Access Is Not A Physical Loss
January 6, 2021 - Bulletin Print Report
Plaintiff, ("P"), owns and operates a full-service salon and medical spa in Miami Beach, Florida. On December 19, 2019, Defendants, ("Ds"), issued an all-ri...
Receipts Not "Interest" For Purposes of Sec. 165(g)(3)
January 6, 2021 - Volume 15 Issue 3 Print Report
TP is the parent of a group of domestic and international entities. TP, through certain of its subsidiaries (the Group), provides specialty financial services to individuals th...
DD To Shed Nutrition & Biosciences, Inc.
January 5, 2021 - Bulletin Print Report
DuPont de Nemours, Inc., (DD), will be disposing of its subsidiary, Nutrition & Biosciences, Inc., (NB), in a so-called "Reverse Morris Trust," (RMT), transaction...
Notes Excluded From Numerator Of Property Factor Ratio
January 5, 2021 - Bulletin Print Report
On June 17, 2015, P filed three refund claims for corporate franchise tax paid. The Department denied each claim. The issue is the proper method of apportionment of P's fra...
NOL Limits Ruled Unconstitutional
January 5, 2021 - Bulletin Print Report
Corporations can join with groups of affiliated corporations to file consolidated income tax returns with the I.R.S. On these consolidated returns, groups can claim consolidate...
Determining REIT Taxable Income
January 5, 2021 - Volume 15 Issue 2 Print Report
Advice has been requested on whether amounts of a REIT's income, which are used to pay the amortization of mortgages and amounts required by FHA regulations to be kept in c...
Sale Gain Belonged In The Denominator Of The Revenue Ratio
January 4, 2021 - Bulletin Print Report
DL is Texas corporation doing no business in Louisiana, ("L"). DL's only business activities consisted of holding its interest in LLC, a Texas limited liability c...
SL Green Realty Corporation Will Be Making Stock Distributions
January 4, 2021 - Bulletin Print Report
On December 4, 2020, the board of directorsof SL Green Realty Corporation, ("SLG"), declared an ordinary dividend and a special dividend, each payable on Januar...
I.R.S. Had "Clear And Concise" Notice Of An Address Change
January 4, 2021 - Bulletin Print Report
In 2016, the I.R.S.sent a notice of deficiency to the Gs' former address, which their CPA had incorrectly listed on their 2014 tax return. The Gs had subsequently lis...
Aggregation Of Costs Of Blocks Of Stock Prohibited
January 4, 2021 - Volume 15 Issue 1 Print Report
MC owned a high-rise apartment building. The taxpayers acquired 52 percent of the corporation's stock in 1949 at a cost of $1,040. The remaining 48 percent of the stock was...
Facility Did Not Qualify As A "Distribution Center"
December 31, 2020 - Bulletin Print Report
TP is a nationwide retailer and operates retail stores across the U.S. In addition, TP accepts orders and makes retail sales via its catalogs and the Internet. TP operates regi...
Sales Tax Levied On "Gross Proceeds Of Sales"
December 31, 2020 - Bulletin Print Report
Under a tobacco company "buy-down" contract with retailers, the tobacco company agrees to pay the retailer a specified amount for each pack of cigarettes sold by the...
Loss From Destruction of "Illegal" Home Allowed
December 31, 2020 - Volume 14 Issue 252 Print Report
In Year 1, TPs purchased an N1-acre parcel of property jointly with another couple, the A. TPs built a home on the property and lived in the home since early Year 2....
Interest Expense Safe Harbor For Residential Living Facilities
December 30, 2020 - Bulletin Print Report
Sec. 163(j) of the Code limits the amount of "business interest expense" that can be deducted for taxable years beginning after December 31, 2017. Under Sec. 163(j)(1...
Carved-Out Leasehold Is Property
December 30, 2020 - Volume 14 Issue 251 Print Report
M will be formed as a general partnership. M will have three general partners, O, a corporation; P, a general partnership comprised of three individuals; and Q, a cor...
Unlimited Use Phone Cards Subject To Special Charge
December 30, 2020 - Bulletin Print Report
Applicant is a retailer that sells prepaid wireless telecommunications services. One of the ways that the customers of Applicant purchase these services is through "unlimi...
Sale Or Service?
December 30, 2020 - Bulletin Print Report
In 1984, O began operating Gott's To Go, ("G"), a business engaged in providing portable toilet services. O purchased portable toilets from a Michigan business. W...
MIC Sets Record Date For Special Dividend
December 29, 2020 - Bulletin Print Report
Macquarie Infrastructure Corporation, ("MIC"), announced that it has successfully completed the sale of its "IMTT" business for $2.67 billion, including ass...
Litigation Award Is "Business Income"
December 29, 2020 - Volume 14 Issue 250 Print Report
C is a corporation that files as part of an Arizona consolidated return with its parent, P. C develops, manufactures and sells products to customers. As part of its r...
Marketing Analytics Firm Rendered Non-Taxable Consulting Services
December 29, 2020 - Bulletin Print Report
Petitioner, MarketShare Partners, LLC, ("P"), is a marketing analytics firm headquartered in Los Angeles, California, with offices in New York City. P had four lines...
Electronic Information Services Subject To Sales Tax
December 29, 2020 - Bulletin Print Report
CF operates several banks in Cincinnati. Several years ago, it began using Fiserv, ("F"),banking software for its online banking system. F is "a premier pr...
A Utility Is A "Manufacturer" Of Electricity
December 29, 2020 - Bulletin Print Report
D is a regulated public utility engaged in the generation, transmission, distribution, and sale of electricity in North Carolina and in South Carolina. The Department of Revenu...
Attorney's Fee Portion Of Qui Tam Award Is Taxable In N.J.
December 28, 2020 - Bulletin Print Report
TP is a medical doctor who initiated a qui tam , ("QT"), action against the Cooper Health System, ("C"). TP alleged that C had paid physicians...
Arkansas "PBM" Law Not Preempted By ERISA
December 28, 2020 - Bulletin Print Report
Pharmacy benefit managers, ("PBMs"), serve as intermediaries between prescription-drug plans and the pharmacies that beneficiaries use. When a beneficiary of a prescr...
Wheeler REIT To Redeem Convertible Preferred Stock
December 28, 2020 - Bulletin Print Report
Wheeler REIT has run into some financial difficulties. These difficulties will become insuperable if Wheeler does not take decisive actionbefore the date on which its Ser...
Cousins Not Dependents
December 28, 2020 - Volume 14 Issue 249 Print Report
Petitioner, (P), is an immigrant from Kenya and has lived in the U.S. since 2007. P's aunt and cousins emigrated from Kenya to Arizona in April, 2009. &...
Sec. 1060 Allocation Does Not Represent "True And Fair Value"
December 24, 2020 - Bulletin Print Report
TP is a Washington corporation that previously engaged in the business of producingpulp and paper products at a mill located in Washington, ("M"), as a subsidia...
Transfer Of Installment Notes Lacked Substance
December 24, 2020 - Volume 14 Issue 248 Print Report
A is the sole shareholder of TP. TP has two divisions, Y and Z (the "Dealers"), which operate used car dealerships. Dealers finance all of their sales. Deal...
Foundation Denied Abatement Of "UBIT"
December 23, 2020 - Bulletin Print Report
P is a tax-exempt private foundation under Sec. 501(c)(3) of the Internal Revenue Code. P retained Northern Trust Company,("NTC"),to prepare its tax retur...
Qui Tam Recoveries Not Taxable In Pennsylvania
December 23, 2020 - Bulletin Print Report
In June 2014, the taxpayer, ("TP"),filed a qui tam , ("QT"), action in federal court alleging that a certain financial institution, (the...
Short-Term Investment In Municipal Bonds Allowed
December 23, 2020 - Volume 14 Issue 247 Print Report
X is engaged in the development, ownership, and operation of plants and facilities throughout the U.S. X has a number of plants under development. X expects to reach...
What To Make Of AJRD's Special Dividend
December 22, 2020 - Bulletin Print Report
Aerojet Rocketdyne Holdings, Inc., ("AJRD"), announced that it has entered into a definitive agreement to be acquired by Lockheed Martin Corporation, ("LMT"...
Taxpayer Found To Be A "Publicly Offered REIT"
December 22, 2020 - Bulletin Print Report
TP is a real estate investment trust,('REIT"). PR is a REIT. PR is listed on Exchange. TP represents that PR has been a "publicly offered REIT" at all...
How The Pros Effectuate A Spin-Off Or Split-Off
December 22, 2020 - Bulletin Print Report
D, which is Pfizer, Inc., ("PFE"), is the parent of worldwide group of entities, (the "D Worldwide Group"), and is the common parent of a group of affiliate...
The Service Will Follow Holsey
December 22, 2020 - Volume 14 Issue 246 Print Report
The Internal Revenue Service will follow the decision rendered by the Third Circuit Court of Appeals in a case entitled Holsey v. Commissioner , 258 F.2d 865...
The Willens Deal Survey December 2020
December 21, 2020 - The Deal Survey: December 2020 Print Report
Welcome to our summary of deals for December 2020. 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....
Merger Of Lower-Tier Banks Should Qualify As A Reorganization
December 21, 2020 - Bulletin Print Report
Huntington Bancshares, Inc., ("HBAN"), the parent of Huntington National Bank, ("HNB"), and TCF Financial Corporation, ("TCF"), the parent of TCF...
Retention Of Place Of Abode Decisive Of Domicile Issue
December 21, 2020 - Bulletin Print Report
Based on the audit of P and the determination that he was a domiciliary of New York City, ("NYC"), during 2012, the Division issued a statement of proposed audit chan...
Service Approves "Retention" of Spun-off Subsidiary's Stock
December 21, 2020 - Volume 14 Issue 245 Print Report
D is a State E corporation and is the common parent of a consolidated group. D has outstanding "g" shares of common stock. These shares are widely held and...
Absence Of Sales-Related Activity Does Not Prevent Finding Of Nexus
December 21, 2020 - Bulletin Print Report
TP is an out-of-state corporation that developsand publishes a multiplayer, online video game, ("Game"). Game is free to play. TP's source of income is excl...
Equinox Gold Corporation Will Acquire Premier Gold Mines Ltd.
December 18, 2020 - Bulletin Print Report
Equinox Gold Corporation, ("E") and Premier Gold Mines, Ltd., ("P"), announced that the companies, each organized under the laws of Canada, have entered int...
Sovereign Immunity Bars Transportation Excise Tax Refund Lawsuit
December 18, 2020 - Bulletin Print Report
JP sells credit card processing services to merchants and banks. DA was a charter airline that contracted with JP to process credit card transactions for its customers. Purchas...
Pluralsight, Inc. Is Going Private
December 18, 2020 - Bulletin Print Report
Pluralsight, Inc., ("PS"), recently announced that it has entered into a definitive agreement to be acquired by affiliates of Vista Equity Partners in an all-cash tra...
Bargain Sale Did Not Result In A Gift
December 18, 2020 - Volume 14 Issue 244 Print Report
WJSC was owned prior to 1928 by WJS. He sold the common stock in 1928 to WMF and at that same time the corporation issued 1,000 shares of its six percent cumulative p...
Canadian Cannabis Companies To Engage In Business Combination
December 17, 2020 - Bulletin Print Report
Aphria, Inc., ("APHA"), and Tilray, Inc., ("TLRY"), each organized and existing under the laws of Canada, announced that they have entered into a definitive...
Taxpayer Found To Change Accounting Method
December 17, 2020 - Volume 14 Issue 243 Print Report
TP, a financial institution employing an accrual method of accounting, computes its interest on installment loans under the "sum of the months-digits method.&quo...
"Actual Knowledge" Does Not Constitute A "Filing"
December 17, 2020 - Bulletin Print Report
The United States, ("U.S."), and the United States Virgin Islands, ("USVI"), are separate taxing entities. Under the USVI's Economic Development Program...
TCP Will Be "Rolled Up"
December 17, 2020 - Bulletin Print Report
TC Energy Corporation, ("TRP"), a Canadian corporation announced it has entered into a definitive agreement and plan of merger "to acquire all the outstanding Co...
Start-Up Expenses Not Deductible
December 16, 2020 - Volume 14 Issue 242 Print Report
Petitioners purchased a single-family house in Virginia on August 25, 2008. Petitioners made repairs and reported other expenses relating to the property on Schedule...
LLY's Acquisition Of PRVL Features A Regulatory Approval CVR
December 16, 2020 - Bulletin Print Report
Eli Lilly and Company, ("LLY"), and Prevail Therapeutics, Inc., ("PRVL"), announced a definitive agreement for LLY to acquire PRVL"for $22.50 in...
Assessment Of Back-Up Withholding Tax Time-Barred
December 16, 2020 - Bulletin Print Report
James Quezada, ("Q"),works as a stone mason and owns Quezada Masonry, ("QM"). General contractors hire him for masonry work, and he hires subcontracto...
Advertising Services Are Not Subject To Sales Tax
December 16, 2020 - Bulletin Print Report
Petitioner, ("P"), is a digital marketing services business. It provides consulting, managed services, and technical services, and acts as a reseller of advertising-a...
The Latest Variety Of "CVRs"
December 15, 2020 - Bulletin Print Report
Where there are disagreementsabout the value of a target corporation, the parties may decide to make a portion of the merger consideration contingent on the outcome of pr...
Film Research Expenses Not Deductible
December 15, 2020 - Volume 14 Issue 241 Print Report
Petitioner, (P), is an attorney. In 2006, P began researching American history for the purpose ofcreating an American history film series. The film series was i...
JNJ's "Insurance Premium Tax" Refund Upheld
December 15, 2020 - Bulletin Print Report
Johnson & Johnson, ("JNJ"), is insured through MA, which is wholly owned and which provides insurance exclusively to JNJ. MA is a so-called "captive insurer....
"Tax Insurance" Premiums Are Not Deductible
December 15, 2020 - Bulletin Print Report
Can a partnership deduct the cost of premiums paid for an insurance policy that contemplates reimbursing the partners for an adjustment that reduces the tax benefits they are e...
Alexion and AstraZeneca To Join Forces
December 14, 2020 - Bulletin Print Report
Alexion Pharmaceuticals, Inc., ("API"), and AstraZenecaPLC, ("AZ"), have entered into a definitive agreement for "AZ to acquire API." The tr...
Real Property Tax Classification Is Controlling For "RPTT" Purposes
December 14, 2020 - Bulletin Print Report
The "Property" consists of a two-family house with a ten-car garage. From the time Y purchased the Property until its sale by the LLC for $1,080,000, the house and th...
LLC Debt Is Non-Recourse With Respect To Its Member
December 14, 2020 - Bulletin Print Report
D is the common parent of a business group that includes corporations and disregarded entities, (the "D Group"). The D Group is engaged in Business, which included&nb...
Damages For "Loss Of Consortium" Are Excluded From Gross Income
December 14, 2020 - Bulletin Print Report
Years before the Taxable Year, H was struck by an automobile while riding his bicycle, (the "collision"). H suffered severe and permanent injuries to his body, includ...
Minority Interest Is Part Of Controlling Interest
December 14, 2020 - Volume 14 Issue 240 Print Report
A owned 600 shares of the common stock of X corporation, (X). The 600 shares represented 60 percent of the outstanding stock of X. &...
Clothing Rentals Not Subject To Sales Tax
December 11, 2020 - Bulletin Print Report
Petitioner operates a clothing rental business in New York State. Rental subscriptions are set up on a monthly basis, with the monthly charge based exclusively upon the number...
GAAP Informs The Scope Of Perrigo's Privilege Waiver
December 11, 2020 - Bulletin Print Report
PerrigoCo., PLC, ("P"), is facing an unusual number of tax "headwinds." It is fighting tax deficiency assessments on two continents, both in Ireland a...
When Does The "Testing Period" Begin?
December 11, 2020 - Volume 14 Issue 239 Print Report
TP began incurring losses and generated a net operating loss (NOL) carryover in its taxable year ending Year 1. On Date 1, TP...
Dog Storage Charges Are Subject To Sales Tax
December 10, 2020 - Bulletin Print Report
Petitioner, ("P"), provides "safe and secure climate-controlled doghouses, ('units'), at varying locations throughout Brooklyn for dog owners to store th...
Taxpayer Converts Capital Gain Into Capital Loss
December 10, 2020 - Bulletin Print Report
In 2002, Appellant, ("APP"), while a Canadian citizen and resident, co-founded Westwind Capital Corporation, ("W"), an international investment bank headqua...
Change In Accounting Practice Not Change In Accounting Method
December 10, 2020 - Volume 14 Issue 238 Print Report
T pays commissions to its employees. Currently, T is deducting these commissions twice for federal income tax purposes. First, T deducts the amount of the commissions at the ti...
"Voting Stock" And "Stock" Are Not Interchangeable
December 10, 2020 - Bulletin Print Report
The "Corporation" held title to two pieces of real property, (the "Property"), in Los Angeles. All of the Corporation's voting stock was issued to the &...
The (Capital Gain) Rates, They Are a-Changin'
December 9, 2020 - Bulletin Print Report
It turns out that one of the biggest financial news stories of the year, at least based on the volume of coverage it received, was the great Bob Dylan's decision to sell hi...
Convertible Notes Not "Stock" For Purposes of Sec. 382
December 9, 2020 - Volume 14 Issue 237 Print Report
C is the common parent of an affiliated group that files a consolidated tax return (C Group). C has one class of stock outstanding---publicly traded common stock....
Credible Testimony Establishes Material Participation
December 9, 2020 - Bulletin Print Report
P practices medicine through his wholly owned C corporation, IC. P would typically work at IC for approximately three 8-hour workdays and two 4-hour workdays, Monday through Fr...
"Reckless" Taxpayer Found To Have Acted "Willfully" In FBAR Matters
December 9, 2020 - Bulletin Print Report
This case deals with the relatively arcane topic of tax litigation, arising out of a taxpayer being assessed a penalty for failure to file an I.R.S. form, commonly referred to...
The I.R.S. Finds a 'G' Reorganization
December 8, 2020 - Volume 14 Issue 236 Print Report
T is a consumer finance company. T has common and preferred stock outstanding. ACQ is a financial institution as defined in Sec. 581 of the Internal Revenue Code. It has one cl...
Disposing Of Waddell & Reed's "Unwanted" Assets
December 8, 2020 - Bulletin Print Report
Macquarie Management Holdings, Inc., ("MMI"), the asset management division of Macquarie Holdings Pty Ltd.,and Waddell & Reed Financial, Inc., ("WDR&qu...
"FBAR" Articles Found To Be Admissible Evidence
December 8, 2020 - Bulletin Print Report
This case raises a single issue: whether B's failure to file a Form TD F 90-22.1, ("FBAR"), disclosing his offshore UBS bank account was willful. A finding of wil...
WORK's Net Operating Losses Should Be Of Value To CRM
December 7, 2020 - Bulletin Print Report
Last week, salesforce.com, inc., ("CRM"), and Slack Technologies, Inc., ("WORK"), announced that they had entered intoa definitive agreement for CRM t...
Restitution Order Measures Theft Loss
December 7, 2020 - Bulletin Print Report
Plaintiff, ("P"), owned and operated a "factoring" business during 2015. P became the unwitting victim of fraud during 2015 when an individual diverted paym...
Beneficial Ownership Counts For Purposes Of Sec. 1504
December 7, 2020 - Bulletin Print Report
Parent wholly owns Sub; and Sub owns all of the interests in Management Co., ("MC"). MC is a State Y limited liability company.Parent is the common parent of an...
Annuity Exempt From Creditors' Claims
December 7, 2020 - Volume 14 Issue 235 Print Report
Debtor, (D), filed a Chapter 7 bankruptcy case on June 6, 2012. D claimed the Annuity as exempt under 11 U.S.C. Sec. 522(b)(3)(C), and the Trustee (T) objected to the claimed e...
AMC's Stock Issuance Should Not Give Rise To An Ownership Change
December 4, 2020 - Bulletin Print Report
AMC Entertainment Holdings, Inc., ("AMC"), as much any company has seen its business ravaged by the pandemic. AMC, not surprisingly, is a "loss corporation."...
Reinstated Employee Not Entitled To Tax "Gross-Up"
December 4, 2020 - Bulletin Print Report
In April 2009, the Department hired G in the position of Pharmacy Services Chief II. On September 14, 2012, the Department discharged G based on her "insubordination and r...
Valuing Minority Interests
December 4, 2020 - Volume 14 Issue 234 Print Report
Prior to decedent's death in 1991, the decedent and his son owned 100 percent of the stock in a corporation. The decedent owned 48.59 percent of the stock and the...
Delivery of Note Is Not A "Payment"
December 3, 2020 - Volume 14 Issue 233 Print Report
Petitioner, (P), owned 66.67% of T. On April 8, 1982,T entered into an agreement with C to purchase equipment for $4.825 million. C financed the sale of the equ...
"Contractors" Are Subject To Sales Tax
December 3, 2020 - Bulletin Print Report
APP is Missouri funeral home that, as part of its service, sells burial container/vaults, ("Vs"), to its customers. When the customer purchases a V from APP, APP orde...
Non-Resident 'S' Corporation Taxed On Massachusetts Capital Gains
December 3, 2020 - Bulletin Print Report
Prior to October 31, 2011, APP was a subchapter S corporation organized under the laws of Illinois and headquartered in Illinois. APP was the sole shareholder of VAS USA, an Il...
CRM And WORK Have Agreed To A "Two-Step" 'A' Reorganization
December 2, 2020 - Bulletin Print Report
Slack Technologies, Inc., ("WORK"), and salesforce.com, inc., ("CRM"), have entered into a definitive agreement pursuant towhich CRM will acquire WORK...
Directly Used Or Consumed In The Production Of Natural Resources
December 2, 2020 - Bulletin Print Report
AR Corporation, ("A"), is engaged in the exploration, development and acquisition of natural gas and oil from properties located in the Appalachian Basin. A has been...
Transferring Minority Interests To Family Members
December 2, 2020 - Volume 14 Issue 232 Print Report
P owned all of the single class of outstanding stock of Xcorporation (X). P transferred all of P's shares by making simultaneous gifts of 20 percent of the...
Cell Towers Found To Be Improvements To Real Property
December 2, 2020 - Bulletin Print Report
Petitioner, ("P"), is a communication construction company. P primarily provides antenna, line, and microwave installations on raw land and existing sites throughout...
SPGI Will Annex INFO
December 1, 2020 - Bulletin Print Report
S&P Global, Inc., ("SPGI"), and IHS MarkitLtd., ("INFO"), a "Bermuda exempted company limited by shares," announced they have entered in...
Trading Activity Not "Substantial"
December 1, 2020 - Volume 14 Issue 231 Print Report
During 2005 and 2006, petitioner executed certain trades of certain securities on an investment account that she maintained at TDA ("petitioner's investment...
Amended Statute Of Limitations Could Not Be Given Retroactive Effect
December 1, 2020 - Bulletin Print Report
Claimant pays sales tax to the Oklahoma Tax Commission, ("OTC"), each and every month. Due to an error in computation, Claimant made "significant overpayments of...
Mortgage Lender Not Doing Business In Tennessee
December 1, 2020 - Bulletin Print Report
The Fund is organized as a limited partnership formed and domiciled outside the U.S. The Fund's only business activity is owning mortgages and receiving payments on those m...
LORL Shareholders Can Elect Different Forms Of Merger Consideration
November 30, 2020 - Bulletin Print Report
Loral Space & Communications, Inc., ("LORL"), owns a 62.7 percent economic interest, and a 32.6 percent voting interest, in Telesat Canada, ("TC"). The...
Tax Felons Cannot Possess Firearms
November 30, 2020 - Bulletin Print Report
F pled guilty in 2011 to a federal felony: willfully making a materially false statement on her tax returns. F's conviction left her subject to 18 U.S.C. section 922(g)(1),...
House Was Used As A Residence
November 30, 2020 - Bulletin Print Report
Plaintiff, ("P"), owns two houses: one in G, where he lives, and the other on TR in S, (the "TR property").The TR property is 19.7 acres with a house,...
Blocks of Stock Aggregated For Purposes of Sec. 2031
November 30, 2020 - Volume 14 Issue 230 Print Report
In 1962, the decedent created a trust and transferred a block of stock of C, along with other property, to the trust. The decedent retained the power to alter the ben...
Coca-Cola Failed To Charge "Arm's-Length" Royalties To Affiliates
November 27, 2020 - Bulletin Print Report
The Internal Revenue Service, ("I.R.S."), in connection with its examination of The Coca-Cola Company's, ("KO"), tax returns for 2007-2009, made adjustm...
Theater Owner's Customers "Bore" Disputed Sales Tax
November 27, 2020 - Bulletin Print Report
Petitioner, ("P"), owns and operates several movie theaters in Michigan and sells food and beverage items at concession stands. Respondent argues that the Michigan Ta...
No Deduction For Payment of Another Taxpayer's Debt
November 27, 2020 - Volume 14 Issue 229 Print Report
In 1978, DH, an engineer, and his colleague, DS, formed an engineering consulting company called MTI. In 2000, MTI began to p...
Distributions From Madoff Securities Were Not Income
November 25, 2020 - Bulletin Print Report
In 2001, petitioners, ("Ps") received distributions from Madoff Securities, ("MS"). MS later filed bankruptcy after the discovery of the now-infamous Madoff...
Sec. 1031 Only Applies To Exchanges Of Certain "Real Property"
November 25, 2020 - Bulletin Print Report
Sec. 1031(a)(1) of the Internal RevenueCode provides: No gain or loss shall be recognized on the exchange of real property held for productive use in a...
PNC Will Not Obtain A Basis Step-Up For Its Acquisition Of BBVA
November 25, 2020 - Bulletin Print Report
PNC Financial Services Group, Inc., ("PNC"), and Banco Bilbao Vizcaya Argentaria, S.A., ("S"), recently announced that they have signed a definitive agreeme...
Easements Constitute An "Interest In Real Property"
November 25, 2020 - Volume 14 Issue 228 Print Report
Through a series of corporate transactions, the plaintiffs came into ownership of two natural gas pipelines within the State of New York, together with the easeme...
Unwanted Assets In A Sec. 338(h)(10) Transaction
November 24, 2020 - Volume 14 Issue 227 Print Report
S, a corporation incorporated in Delaware, owns 100 percent of the stock of T, a New York corporation. S is a taxpayer under Article 9-A of the Tax Law of New York.
Payments To Home Buyers Are Purchase Price Adjustments
November 24, 2020 - Bulletin Print Report
TP is a corporation headquartered in State X. S, wholly owned by TP,is a real estate brokerage company in State Y. S provides online platforms where potential buyers may...
Willfulness Is Not A Consideration In PFIC Cases
November 24, 2020 - Bulletin Print Report
S immigrated to the United States from Canada in the mid-'90s. He became a naturalized U.S. citizen "during 2005-2007." Beginning in 2007 and continuing for sever...
Purchases Of Rock Salt Subject To Sales Tax
November 24, 2020 - Bulletin Print Report
P is a property services provider for primarily commercial, medical, and industrial clients. P performs snow and ice management for businesses in the Glen Falls, New York, area...
Income From Leasing Signs Not Excluded From Rents From Real Property
November 23, 2020 - Bulletin Print Report
TP is a real estate investment trust, ("REIT"). Through partnerships, TP owns real property, including buildings, located at Address A and Address B. Affixed to the e...
Retained Stock Distributed On A Tax-Free Basis
November 23, 2020 - Bulletin Print Report
D, a publicly traded corporation, is the parent of a worldwide group, (the "D Group"). Before the Proposed Transaction, D directly will own DRE 1, 2, 3, 4, Sub 1, 2,...
Qurate Retail's Special Dividend Appears To Be "Extraordinary"
November 23, 2020 - Bulletin Print Report
Qurate Retail, Inc., ("Q"), a Liberty company, announced that its Board of Directors declared a "special cash dividend" in the amount of $1.50 per common sh...
Periodic Redemption Plan Exempted From Sec. 305(b)(2)
November 23, 2020 - Volume 14 Issue 226 Print Report
X Corporation, (X), wished to acquire all of the stock of Y Corporation, (Y). X and Y were unrelated except that shareholders of X owning 10 percent of its stock owne...
West Fraser Timber Ltd. To Acquire Norbord, Inc.
November 20, 2020 - Bulletin Print Report
West Fraser Timber Co. Ltd., (WFT), and Norbord, Inc., (OSB), each a Canadian corporation,announced that they have entered into a "strategic business combination&quo...
The Willens Deal Survey November 2020
November 20, 2020 - The Deal Survey: November 2020 Print Report
Welcome to our summary of deals for November 2020. 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 Mandatory Repatriation Tax Is Constitutionally Valid
November 20, 2020 - Bulletin Print Report
The Tax Cuts and Jobs Act, ("TCJA"), broadened the types of controlled foreign corporation, ("CFC"), income subject to subpart F. The TCJA also enacted a on...
Exercise of Warrants Is A Prohibited Transaction
November 20, 2020 - Volume 14 Issue 225 Print Report
The Plan is a defined benefit plan. As of December 31, 1976, the Plan held 97,000 shares of Employer (E) common stock. In July, 1976, E offered to holders of its comm...
Liberty Broadband To Issue Exchangeable Debentures
November 19, 2020 - Bulletin Print Report
Once Liberty Broadband, ("LB"),and GCI Liberty complete their recently announced business combination, the former will be the owner of approximately 26 percent...
Reasonable Expectation Of Repayment Precludes Deduction Of Expenses
November 19, 2020 - Bulletin Print Report
1. During the period beginning on February 15, 2020, and ending on December 31, 2020, ("covered period"), A paid expenses that are described in Sec. 161 of the Code a...
Defective Liquidation Crystallizes Worthless Stock Deduction
November 19, 2020 - Volume 14 Issue 224 Print Report
TP is the domestic parent of an affiliated group that joins in the filing of a consolidated return. TP is wholly owned by Vivendi. H is directly owned by TP, except t...
When Does A Lease Commence?
November 19, 2020 - Bulletin Print Report
Petitioner signed a commercial space lease for property, (the "Premises"), located in lower Manhattan. The Premises are located in an area that has been granted certa...
Presence Of Swimming Pool Does Not Exempt Gym From Sales Tax
November 18, 2020 - Bulletin Print Report
Petitioner, ("P"), operates a national health and wellness business. P has one New York City facility and anticipates opening additional New York City locations. P...
Latest SPAC Transaction Structured As A "Global" Sec. 351 Exchange
November 18, 2020 - Bulletin Print Report
In the latest installmentof the "SPAC Chronicles,"Roth CH Acquisition I Co., ("ROCH"), and PureCycleTechnologies LLC, ("PCT"), a...
Transfer of Encumbered Property To Partnership Not a Disguised Sale
November 18, 2020 - Volume 14 Issue 223 Print Report
On "x," T entered into an agreement with S to purchase real estate. Approximately 75 percent of the purchase price will be borrowed by T from an unrelated l...
Aggregation Of Non-Operating Mineral Interests Permitted
November 18, 2020 - Bulletin Print Report
TP is a subsidiary of HC. TP owns A, a disregarded entity. B is a wholly-owned subsidiary of TP. HC is wholly-owned by C. C is an international mineral resource and investment...
Only Installation Sales Tax On Solar Equipment Is Refundable
November 17, 2020 - Bulletin Print Report
TP filed an Application for Sales Tax Refund on Purchases and Installation of Qualified Renewable Energy Equipment," ("Application"), on November 9, 2017. On Dec...
"Earn-Outs" A Staple Of "SPAC" Transactions
November 17, 2020 - Bulletin Print Report
The most recent "SPAC" acquisition, like the vast majorityof its predecessors, is structured to qualify as a tax-free reorganization; and features the use of &q...
IRA Beneficiary Found To Engage In a Prohibited Transaction
November 17, 2020 - Volume 14 Issue 222 Print Report
By 2005, E had accumulated a substantial amount in his Sec. 401(k) account from his many years of service as an employee of AP. &nbs...
Aerospace Product Developer Not Entitled To Preferential Tax Rate
November 16, 2020 - Bulletin Print Report
TP is a Washington limited liability company that develops and sells aerospace products. TP does not engage in manufacturing activity. The majority of TP'...
Tax Imposed On Exported Oil Is Not Merely A User Fee
November 16, 2020 - Bulletin Print Report
T is an independent commodity trading and logistics house. As part of its business, T purchases and exports domestic crude oil from the United States by vessel and truck. From...
Casual Gambler Can Use The "Per Session" Method
November 16, 2020 - Bulletin Print Report
During 2019, TP, a resident of another state, visited a casino in Indiana and recreationally played the slot machines. TP had some wagering gains and some wagering losses. TP r...
Sec. 1248(b) Limitation Applied To 'S" Corporation Shareholder
November 16, 2020 - Volume 14 Issue 221 Print Report
A is an individual investor who owns "D%" of the stock of B, an 'S' corporation. B's sole asset is "E%" of the outstanding shares of C...
Taxpayer Never Abandoned Brooklyn Domicile
November 13, 2020 - Volume 14 Issue 220 Print Report
Petitioner, TV, filed Form IT-203 for each of 2004-2006 as a non-resident of New York, with a filing status of head of household. &n...
Jaws Acquisition Corporation Chooses An "Up-C" Structure
November 13, 2020 - Bulletin Print Report
Jaws Acquisition Corporation, ("J"), a special purpose acquisition company, ("SPAC"), and a Cayman Islands exempted company, and Cano Health LLC, (&qu...
Taxpayer Did Not Act As Agent For IRA Fiduciary
November 13, 2020 - Bulletin Print Report
During 2012 and 2013, Petitioner, ("P"), participated in a SEP-IRA, the custodian of which was J.P. Morgan Chase Bank, N.A., ("C"). On two occasions in 2012...
Mitten Clips Are Not Clothing
November 13, 2020 - Bulletin Print Report
Petitioner sells mitten clips. Petitioner states that the mitten clips are used to attach the gloves or mittens of infants and toddlers to their coats so they will not lose the...
Redemption Of Partnership Interests Differs From Redemption Of Stock
November 12, 2020 - Bulletin Print Report
While corporate self-tender offers are hardly unusual, the same cannot be said for tender offers mounted by publicly traded partnerships, commonly known as MLPs. Such a tender...
Unsigned Notice Of Deficiency Is Valid
November 12, 2020 - Bulletin Print Report
In 2016, Petitioner had an individual retirement account, ("IRA"),with National Financial Services, LLC, ("NFS"), from which he received a distributio...
"QEZE" Claimant Failed To Increase Its Workforce
November 12, 2020 - Bulletin Print Report
The Empire Zones Program is an incentive program implemented by the New York State Legislature to encourage economic development in disadvantaged areas of the state. Petitioner...
An Item Is "Permanent" If Removal Would Cause "Functional" Damage
November 12, 2020 - Volume 14 Issue 219 Print Report
Petitioner, (P), owns an amusement park. P entered into a contract with CCI to design, engineer, and construct a roller coaster on its premises, known as the "Si...
Stock Owned By Trust Attributed To Present Beneficiaries
November 11, 2020 - Volume 14 Issue 218 Print Report
The Hs, a husband and wife, were the sole shareholders of A from the date it was incorporated until all ofits stock was transferred to the trustees of the trust...
Transfer Of "Excess" Assets To "QRP" Is Not A "Reversion"
November 11, 2020 - Bulletin Print Report
Taxpayer, ("TP"), is a publicly traded corporation. TP sponsors two plans qualifiedunder Sec. 401(a), Plan X and Plan Y. Plan X is a defined benefit pension pla...
Sales Commission Not Excluded From "Total Revenue"
November 11, 2020 - Bulletin Print Report
During the period at issue, Claimant, ("C"), provided audiovisual equipment and services to hotel customers. It contracted with the hotels to provide the equipment an...
Can "Boot" Gain Be Treated As A Dividend?
November 10, 2020 - Bulletin Print Report
BridgeBio Pharma, Inc., ("BB"), owns approximately 64 percent of the outstanding stock of Eidos Therapeutics, Inc., ("ET"). A definitive merger agreement wa...
"Specified Income Tax Payments" Not Subject To "SALT" Limitation
November 10, 2020 - Bulletin Print Report
Sec. 164(a) of the Internal Revenue Code generally allows a deduction for certain taxes for the taxable year within which paid or accrued, including: State and local, and forei...
Seller Of Wine Must Collect Sales Tax
November 10, 2020 - Volume 14 Issue 217 Print Report
Petitioner, (P), is incorporated under the laws of California. It is a retailer of bottled wine, which it sells through its website and on-line catalogs. P possesses...
Spin-Off Preceded By "Unifying" Brother/Sister Merger Passes Muster
November 10, 2020 - Bulletin Print Report
Shareholder One and Shareholder Two own all of the outstanding stock of Distributing in equal proportions. Distributing is a State A corporation and is the common parent of a g...
Dredging Company Not Engaged In The "Transportation Of Freight"
November 9, 2020 - Bulletin Print Report
M owns a fleet of heavy marine construction and dredging equipment that includes 60 specialized vessels and over 50 barges. M claimed that some of its vessels were exempt from...
I.R.S. Waives Attribution Rules
November 9, 2020 - Bulletin Print Report
FP owns all of the stock of FH, and directly and indirectly through its wholly owned foreign entities owns all the stock of US Sub 1. FH owns all of the stock of F Sub 1. F Sub...
Late Filing Penalty Could Not Be Abated
November 9, 2020 - Bulletin Print Report
Though April 15th is a statutorily fixed yearly deadline, the I.R.S. provides taxpayers with a mechanism by which to obtain an extension of the deadline to file their tax retur...
Charitable Contribution Recast
November 9, 2020 - Volume 14 Issue 216 Print Report
A corporation, (CORP), furnishes free lodging....to train crews that are away from home overnight. Free lodging is furnished either in bunkhouses owned and operated b...
Foreign Corporation Does Not Have A Substantial Nexus In Tennessee
November 6, 2020 - Bulletin Print Report
TP is a foreign entity that is classified as a corporation for federal income tax purposes. TP is registeredto do business in Tennessee, ("TN"). TP's busine...
How Ballot Measures With Tax Implications Fared On Election Day
November 6, 2020 - Bulletin Print Report
It is frequently the case that voters, in addition to electing individuals to serve in Congress, state legislatures, and of course the White House, are routinelyasked to...
Indebtedness Not "Secured Debt"
November 6, 2020 - Volume 14 Issue 215 Print Report
On October 31, 2001, petitioners purchased real property ("MRP") for $365,000. On January 1, 2003, petitioners signed a document described as a "mortga...
Pet Sitters Are Common Law Employees
November 5, 2020 - Bulletin Print Report
PS is a residential pet care operation offering services such as feeding, walking, entertainment, medication administration, and general household chores. PS advertises for pro...
Singer Changes His Domicile
November 5, 2020 - Volume 14 Issue 214 Print Report
TP was born and raised in Alabama. He graduated from Auburn University in 2006. He moved to Missouri in that year and began work as a professional singer. &...
Telenav, Inc. LBO Sets The Stage For A Sec. 338 Election
November 5, 2020 - Bulletin Print Report
We have written about how ownership changes experienced by loss corporations in the current environment of exceedingly low interest rates can wreak absolute havoc on the loss c...
Perrigo: Bruised But By No Means Beaten
November 4, 2020 - Bulletin Print Report
PerrigoCompany plc, ("PRGO"), received a Notice of Assessment from its friends at Irish Revenue in December 2018. The Notice assessed an Irish corporation...
Severing A Tenancy In Common Is Not A "Conveyance"
November 4, 2020 - Volume 14 Issue 213 Print Report
Owners owned the property in Manhattan (the "Property"). On March 26, 2006, Owners and Developer executed a contract (the "Contract") and deeds wh...
Merger Price Not Indicative Of "Fair Market Value" Of Stock
November 4, 2020 - Bulletin Print Report
The value of unlisted stock is best determined by considering actual sales at arm's length in the normal course of business within a reasonable time before or after the val...
Prosus N.V. To Purchase Naspers Ltd.'s Stock
November 4, 2020 - Bulletin Print Report
The board of directors of Prosus N.V., with a view towards closing the massive disparity (approximately $60 billion according to Bloomberg ) between Prosus N.V....
Accounting For Asset Retirement Costs
November 3, 2020 - Volume 14 Issue 212 Print Report
The assets of X, a telephone company, include telephone polls A and B. X placed A in service in 1979 on land it owned. X placed B in service in 1982 on land owned by...
"MAGI" Includes Retirement Plan Distributions
November 3, 2020 - Bulletin Print Report
Petitioners, ("Ps"), filed a joint federal income taxreturn for 2014. Ps reported their adjusted gross income, ("AGI"), as $122,948. They deducted a l...
Ambiguity In Credit Statute Resolved Against The Taxpayer
November 3, 2020 - Bulletin Print Report
Duke Energy Corporation, ("D"), is a utility company providing electrical power to South Carolina citizens and, as such, is allowed to claim certain investment tax cr...
Sale Of Environmental Credits Not A Unique Event
November 2, 2020 - Bulletin Print Report
American Honda Motors Co., Inc., ("AH"), distributes a fleet of vehicles designed to conserve natural resources and reduce pollution. The EPA and the NHTSAdevel...
Sec. 1603 Grant Dispute Must Proceed To Trial
November 2, 2020 - Bulletin Print Report
The Facility is a PV power plant located in Nevada. The Facility is designed to produce electricity through solar energy. Plaintiff, ("P"), was owned by NextEra Energ...
Dividend Waiver Revisited
November 2, 2020 - Volume 14 Issue 211 Print Report
Under a plan of merger between X corporation, (X), and Y corporation, (Y), Mr. C, the majority shareholder of X, surrendered his stock and received in exchange Class...
MRVL And IPHI Will Combine Using A "Double Dummy" Format
November 2, 2020 - Bulletin Print Report
Marvell Technology Group, Ltd., ("MRVL"), a Bermuda exempted company, and Inphi Corporation, ("IPHI"), announced a definitive agreement under which MRVL&nbs...
Foreign LLC With California Employee "Doing Business" Therein
October 30, 2020 - Bulletin Print Report
Appellant is a foreign limited liability company, ("LLC"), that is not registered to do business in California with the Secretary of State. It is classified as a part...
Compulsive Gambler Adequately Substantiated Gambling Losses
October 30, 2020 - Bulletin Print Report
P is a compulsive gambler. P acknowledges that his gambling has adversely affected his financial circumstances and his family life. P has been receiving treatment for his gambl...
ELY Will Acquire The Rest Of Topgolf
October 30, 2020 - Bulletin Print Report
Callaway Golf Company, ("ELY"), and Topgolf International, Inc., ("TGO"), a privately held corporation in which ELY owns a 14.3 percent stake, announced tha...
Taxpayer Not Engaged In Business In New York
October 30, 2020 - Volume 14 Issue 210 Print Report
Petitioner, (P), is a domestic corporation whose only facility is located in Stamford, Connecticut. P has 12 employees, all of whom work out of the Stamford facility....
DHIL's Special Dividend Should Not Be "Extraordinary"
October 29, 2020 - Bulletin Print Report
Diamond Hill Investment Group, Inc., ("DHIL"), has rewarded its shareholders with special dividends in past years. This year is no exception. The company announced th...
SPAC Forced To Surrender Its BVI Tax Status
October 29, 2020 - Bulletin Print Report
Alberton Acquisition Corporation, ("ALAC"), a British Virgin Island company, and a special purpose acquisition company, ("SPAC"). announced that it will be...
Location Of Family Confirms Change Of Domicile
October 29, 2020 - Bulletin Print Report
In 2007, F and his family moved to Oregon where he worked as a store manager at his employer's Eugene, Oregon location. On September 26, 2014, F was promoted to district ma...
Principal Method of Accounting Did Not Clearly Reflect Income
October 29, 2020 - Volume 14 Issue 209 Print Report
TP is primarily engaged in Business X, as was Subsidiary, (S). TP uses an accrual method as its overall method of accounting. S merged with and into TP in a transacti...
A Redemption Of "Straight" Preferred Should Always Be An "Exchange"
October 28, 2020 - Bulletin Print Report
SLM Corporation, ("SLM"), is offering to purchase, for cash, up to two million shares of its Floating Rate Non-Cumulative Preferred Stock, Series B, (the "Securi...
The I.R.S. Will Rule On Dividend Waivers
October 28, 2020 - Volume 14 Issue 208 Print Report
In Rev. Rul. 56-431, 1956-2 C.B. 171, a majority shareholder of a corporation whose relatives owned an additional 25 percent of the stock attempted to waive his right...
Fees To Access Instructional Videos Not Subject To Sales Tax
October 28, 2020 - Bulletin Print Report
P is an online learning company that helps people learn new skills on various topics. Such skills include business, software, technology, and creative skills. Through subscript...
Is The Husky Energy Acquisition A Reorganization?
October 27, 2020 - Bulletin Print Report
Cenovus Energy, Inc., ("CVE"), and Husky Energy, Inc., ("HSE"), each a Canadian corporation, announced a transaction to create "a new integrated Canadi...
Water Slide Is a Permanent Improvement
October 27, 2020 - Volume 14 Issue 207 Print Report
Petitioner (P) owns a water amusement park on real property that it leases. In 2008, P entered into a contract with a manufacturer for the design of a water slide and...
A "Reckless" Violation Is A "Willful" One In The Civil Context
October 27, 2020 - Bulletin Print Report
The Bank Secrecy Act of 1970 requires that U.S. citizens who maintainforeign bank accounts report the accounts to the government on an annual basis by filing a Report of...
Jeopardy Does Not Have "Minimum Contacts" With Louisiana
October 26, 2020 - Bulletin Print Report
Jeopardy, ("J"), is a part of the television division of Sony Entertainment Group, which oversees game shows such as "Jeopardy!" J's principal place of...
The "SRP" Is Not Afforded Priority Status
October 26, 2020 - Bulletin Print Report
The Hs commenced a chapter 13 bankruptcy case on August 31, 2017. The I.R.S. filed a proof of claim for unpaid taxes. A portion of the claim relates to the amount the I.R.S. co...
New York Throws Down The Gauntlet On Working From Home
October 26, 2020 - Bulletin Print Report
New York State issued, or more accuratelyreiterated, its views on the manner in which residents and non-residents are taxed in light of the COVID-19 pandemic. It did so i...
Abandonment Loss Not A "Business" Loss
October 26, 2020 - Volume 14 Issue 206 Print Report
From prior to 1950 through 1975, Petitioner, (P), was a practicing physician and surgeon. In 1964, P purchased a parcel of land for the purpose of constructing a rent...
CVRs Are Not Voting Stock
October 23, 2020 - Bulletin Print Report
Continuing a trend that shows no signs of slowing down, another special purpose acquisition company, or "SPAC," Acamar Partners Acquisition Corporation, ("Acamar...
Surviving Spouse Of Disabled Vet Not Entitled To Property Tax Exemption
October 23, 2020 - Bulletin Print Report
On July 29, 2019, Plaintiff, ("P"), filed a fully executed "Claim for Property Tax Exemption." As part of her application, she included proof of her marriag...
Royalty Income Is Not Business Income
October 23, 2020 - Volume 14 Issue 205 Print Report
A taxpayer is engaged in the business of farming. He also owns a royalty interest in one producing oil and gas lease. In the taxable year at issue, the taxpa...
Sale Of Advertising Services Subject To "Gross Receipts" Tax
October 23, 2020 - Bulletin Print Report
The business seeking a ruling owns "dividers" employed at grocery stores to separate customer orders on the conveyor belt in the checkout line. The business sells adv...
Pioneer Will Score A Basis Step-Up In A Tax-Free Reorganization
October 22, 2020 - Bulletin Print Report
Pioneer Natural Resources Co., ("PNR"), and Parsley Energy, Inc., ("PAR"), announced that they have entered into a definitive agreement in connection with w...
The Willens Deal Survey October 2020
October 22, 2020 - The Deal Survey: October 2020 Print Report
Welcome to our summary of deals for October 2020. 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. <...
Finder's Fee Is Not Business Income
October 22, 2020 - Volume 14 Issue 204 Print Report
In 1972 and 1973, Petitioner, (P), was in the business of raising horses. In 1967, H was the chairman of W. That year, P heard H tell people that he might be interest...
Potential Tax Costs Of Debt Forgiveness Not Grounds For Discharge
October 22, 2020 - Bulletin Print Report
In 2002, D enrolled at TMC Law School. She was academically dismissed therefrom and never returned to law school. D paid for law school by taking out "Stafford Loans,"...
Taxpayers Denied "Safe Harbor" Theft Loss Deductions
October 22, 2020 - Bulletin Print Report
MG and WG are brothers who worked together in the mortgage business. On March 1, 1999, the brothers formed P, a federally chartered stock institution. The brothers owned P thro...
CIT's Net Operating Loss Will Be Of Little Use To FCNCA
October 21, 2020 - Bulletin Print Report
First Citizens BancShares, Inc., (FCNCA), and CIT Group, Inc., (CIT), recently announced that they have entered into a definitive agreement "under which the companies will...
"REAP" Credits Available To Successor Entity
October 21, 2020 - Bulletin Print Report
TP is an Illinois limited liability partnership that is registered as a foreign limited liability partnership with the New York Secretary of State's office. TP is currently...
Income Derived From Sale Of Paintings Is Not "IRD"
October 21, 2020 - Volume 14 Issue 203 Print Report
B died on "X." B, during his lifetime, was a professional artist. At the time of B's death, B owned a number of paintings that B had created. These pain...
How Can News Corporation Spin-Off Its Digital R.E. Segment?
October 20, 2020 - Bulletin Print Report
News Corporation, ("NC"),is engaged in several trades or businesses, one of which is referred to as its "Digital Real Estate Services" segment, (the &...
Characterizing An "FBAR" Penalty
October 20, 2020 - Bulletin Print Report
Plaintiff brings this action against CW in her capacity as Fiduciary of the Estate of LZ and against AW and DG who inherited LZ's beneficial interests in a foreign trust an...
Contributions To "Victim's Fund" Are Deductible In Year Made
October 20, 2020 - Volume 14 Issue 202 Print Report
C is a life insurance company that sells life insuranceand annuity products. I is a life insurance company domiciled in State X and, since Year 1, has been unde...
Non-Business Income Allocated To State Of Commercial Domicile
October 20, 2020 - Bulletin Print Report
In 2003, the FCC auctioned licenses granting the right to broadcast in the 700 MHz frequency of the electromagnetic spectrum in specific geographic areas. VNT purchased two FCC...
A Voluntary Sale Can Be An "Involuntary Conversion"
October 19, 2020 - Bulletin Print Report
TP provides wire line and wireless services to consumers. On Date B, Year 1, TP acquired all of the stock of Sub 1. Sub 1 owned Sub 2. Sub 2 owned L1, a single member limited l...
Chance Dominates The Outcome Of A "DFS" Transaction
October 19, 2020 - Bulletin Print Report
Daily fantasy sports, ("DFS"), are a type of fantasy sports game. A traditional fantasy sports league is comprised of participants that select players from profession...
Qualified Foreign Corporation
October 19, 2020 - Volume 14 Issue 201 Print Report
HC is a corporation organized under the laws of Cyprus. TP, a U.S. resident, owns a portion of the outstanding shares of HC. The remaining shares are owned by persons...
Contractor Exempt From Sales Tax On Glue Purchases
October 16, 2020 - Bulletin Print Report
Petitioner is a construction company that is about to obtaina contract to install ceramic tile at a terminal in John F. Kennedy International Airport, ("JFK")....
Accrued Production Costs Were Not "Incurred"
October 16, 2020 - Bulletin Print Report
T and L are each taxed as partnerships. The partnerships provide bulk-packaged tomato products to food processors and customer-branded finished products to the food service and...
Income In Respect of a Decedent
October 16, 2020 - Volume 14 Issue 200 Print Report
Decedent (D) sold common stock in 1977, and received the agreed upon payment before her death in 1978. D's estate was closed in 1979....
Missouri Is A "Strict Title State"
October 15, 2020 - Bulletin Print Report
1. The Ss, MAS and MS, are married and have been married at all relevant times. 2. The Ss file their taxes jointly and share equally in the burden of paying for their taxable p...
Lease Agreement Creates A Usufruct
October 15, 2020 - Bulletin Print Report
On August 23, 2006, J entered a 50-year lease agreement with the Commission which allowed for the construction and operation of a hotel on land owned by the Commission. The Boa...
Qualified Lending and Finance Business
October 15, 2020 - Volume 14 Issue 199 Print Report
Decedent (D) died on Date 1. At the time of his death, he owned shares of C1, a closely-held corporation organized in State 1 that had approximately "#1" fu...
Foreign Distributor Earnings Is From Performance of Personal Services
October 14, 2020 - Volume 14 Issue 198 Print Report
TP produces and sells products to U.S. and foreign distributors. A distributor's income is dependent on several criteria, including the amount of products the dis...
Option Does Not Create Equitable Ownership
October 14, 2020 - Bulletin Print Report
On September 1, 2016, SW entered into an Option Agreement with J that granted SW "the exclusive right and option...to acquire" certain real property...in exchange for...
Willful Violation Attracts Maximum "FBAR" Penalty
October 14, 2020 - Bulletin Print Report
In 1993, D began selling Swiss annuities. In 1998, D became concerned with asset protection when he was sued by an individual in the United States. To protect his substantial a...
Billboards May Be Considered In Valuing Real Property
October 13, 2020 - Bulletin Print Report
Taxpayers, ("TPs"), allowed the placement on their land of outdoor advertising signs and the signs' supporting structures, (the "billboards"). The Schoo...
Foreign Corporations Can Engage In An 'A' Reorganization
October 13, 2020 - Bulletin Print Report
HUYA, Inc., ("H"), and DouYu International Holdings Limited, ("DY"), announced that they have entered into an Agreement and Plan of Merger,
Indemnity Agreement Did Not Deprive Aggrieved Plaintiff Of "Standing"
October 13, 2020 - Bulletin Print Report
Sec. 1603 of the American Recovery and Reinvestment Act of 2009, (the "Recovery Act"), allows the Treasury to provide "Grants for Specified Energy Property In Li...
Tort Liabilities Deductible Only When Paid
October 13, 2020 - Volume 14 Issue 197 Print Report
TP has engaged in the oil and gas business and used the accrual method of accounting to report his income from such business....
Alliance Bernstein and Cedar Fair Enjoy A Unique Tax Status
October 12, 2020 - Bulletin Print Report
Partnerships are "pass-through" entities, meaning that they are not taxed, at the entity level, on their taxable income. Instead, such taxable income is "passed-...
Presence Of Office Did Not Preclude Residential "RPTT" Rate
October 12, 2020 - Bulletin Print Report
The taxpayer, ("TP"), is a limited liability company and the owner of record of the Property by deed dated XXX. X is the sole member of TP having originally purchased...
Alternative Apportionment Method Allowed By Illinois
October 12, 2020 - Volume 14 Issue 196 Print Report
C was in the business of manufacturing and renting industrial equipment as well as stamping automotive equipment. C owned three manufacturing plants in State 1 and on...
The Indiana "URT" Is Not A "Franchise" Tax
October 12, 2020 - Bulletin Print Report
During the relevant tax period, BS operated in Massachusetts, ("M"), and was subject to the M corporate excise tax. Through two of its affiliates, it also operated in...
Livongo Has No Earnings and Profits
October 9, 2020 - Bulletin Print Report
The Livongo Health, Inc. sa...
MS And EV Will Undertake A "Forward" Merger
October 9, 2020 - Bulletin Print Report
Morgan Stanley, ("MS"), and Eaton Vance Corporation, ("EV"), have entered into a definitive agreement under which "MS will acquire EV for an equity val...
Fines Found Deductible Under Sec. 162(a)
October 9, 2020 - Volume 14 Issue 195 Print Report
In 1984, Petitioner, (P), was a member of the Chicago Mercantile Exchange (CME). P conducted two separate trades or businesses as a member of the CME, acting as a &qu...
ArcelorMittal SA Will Repurchase Notes
October 9, 2020 - Bulletin Print Report
ArcelorMittal SA, ("AMS"), recently announced the launch of its tender offer, (the "Offer"), to purchase, for cash, "any and all" of its outstandi...
SPAC Deal Features Unusual "Earn-Out" Mechanism
October 9, 2020 - Bulletin Print Report
Momentus, Inc.,("MI"), a privately held entity, announced that it has signed a definitive merger agreement with Stable Road Acquisition Corporation, ("SRAC...
Sale of Stock Preceded Change of Domicile
October 8, 2020 - Volume 14 Issue 194 Print Report
In 2004, Petitioner, (P), filed a New York part-year resident income tax return identifying herself as a resident of New York from January 1, 2004 to March 31, 2004....
Grantor Trust And Grantor Are Separate "Persons"
October 8, 2020 - Bulletin Print Report
1. On January 2, 2004, the Cs purchased a 2004 Chevrolet, ("Chevy"). 2. On February 17, 2013, the Cs established, by written agreement, a joint revocable trust, (the...
"SPAC" Will "Domesticate" Prior To Acquisition
October 8, 2020 - Bulletin Print Report
Clover Health Investments Corporation, ("CHI"), is justthe latest in a long line of private companies"going public" via the SPAC "reverse m...
Conducting Business Through A Partnership
October 7, 2020 - Volume 14 Issue 193 Print Report
LLC is classified as a partnership for tax purposes. For more than five years, LLC has owned several commercial office buildings that are leased to unrelated third pa...
Lease Termination Payments Not Subject To Commercial Rent Tax
October 7, 2020 - Bulletin Print Report
On December 19, 2019, TP and their landlord entered into a lease termination agreement for the premises, through a Third Lease Amendment, (the "agreement"). Under the...
Transfer Of A "USRPI" Secures Non-Recognition Treatment
October 7, 2020 - Bulletin Print Report
FPS is a Country X limited partnership that directly engages in Business A in Country X; and owns and manages a group of foreign and domestic affiliates that engage in Business...
Latest SPAC Deal Features Eclectic Mix Of Merger Consideration
October 6, 2020 - Bulletin Print Report
Hims, Inc., ("H"), will be "going public" by means of a business combination with Oaktree Acquisition Corporation, ("OAC"), a special purpose acqu...
When Is A Trade Or Business "Actively Conducted"
October 6, 2020 - Volume 14 Issue 192 Print Report
For many years, D has been engaged in Business A, serving both large and smaller clients. D has outstanding solely common stock, all of which is held by A, B, and C o...
Renunciation Of Homestead Credit Clinches Change Of Domicile
October 6, 2020 - Bulletin Print Report
Taxpayers, ("TPs"), are married individuals who own homes in each ofFlorida and Indiana. TPsfiled a joint 2019 IT-40PNR ("Non-Resident") Indiana...
Short-Term Rental Activity Found To Be Passive
October 5, 2020 - Bulletin Print Report
During the years in issue, 2014 and 2015, L owned a short-term rental property, ("SRp"), that is several hours from petitioners, ("Ps") home. L rented...
Identifying The "Servicer" Responsible For Making A Tax Payment
October 5, 2020 - Bulletin Print Report
In April 2005, H bought a single-family residential property in Alexandria, Virginia, with a mortgage from NYCB. Later, as a result of a decline in mortgage rates, H refinanced...
Sale Of Partnership Interest Not Subject To NYC "UBT"
October 5, 2020 - Bulletin Print Report
In 2015, D entered into negotiations with T for the construction and subsequent leasing of a commercial facility. D formed I in May 2016 and I purchased the land on which the f...
A Bike Sharing Program Is Not A "QTF"
October 5, 2020 - Volume 14 Issue 191 Print Report
Under Sec. 132(a)(5), employers that provide their employees with transportation benefits can exclude those benefits from their employees' gross incomes i...
Deferred Bonus Not A "Retirement Plan Or Arrangement"
October 2, 2020 - Bulletin Print Report
B employed A as a sales representative for approximately 33 years. A and his employer entered into an Employment Agreement on January 1, 2013, ("Original Agreement")....
Sec. 721 Or Sec. 741?
October 2, 2020 - Volume 14 Issue 190 Print Report
A, an individual, owns four units of P1, a limited partnership that provides janitorial services. In order to become a partner in a real estate limited partnership, A...
Receipts From Sale Of Contracts Not Subject To Ohio's "CAT"
October 2, 2020 - Bulletin Print Report
ADT provides security services to residential and commercial property owners throughout the country. ADT enters into alarm-services contracts with its customers and provides re...
Underpayment Interest Properly Assessed
October 1, 2020 - Bulletin Print Report
On April 13, 2020, the court issued an order granting the first Motion for Summary Judgment by the United States finding that the $26,252,741.22 disputed amount, (the "Dis...
"Used Primarily For Manufacturing Activities"
October 1, 2020 - Bulletin Print Report
Petitioner, ("P"), is the owner of property, (the "site" or "property"). P is a "business incubator" under the START-UP NY program autho...
Federal Excise Tax Not Subject To Pennsylvania Sales Tax
October 1, 2020 - Volume 14 Issue 189 Print Report
Pursuant to Sec. 4051 of the Internal Revenue Code, a Federal excise tax isimposed on the retail sale of automotive truck chassis' and automotive truck bodi...
Observations on LVGO's Pre-Merger Dividend
September 30, 2020 - Bulletin Print Report
While one can never be sure about earnings and profits, or the lack thereof, the retained earnings deficit at LVGO certainly is persuasive(albeit not conclusive)evid...
Distributing A Note In Partial Liquidation
September 30, 2020 - Volume 14 Issue 188 Print Report
C is a domestic corporation engaged in ongoing business activities. As of May 31, 1984, C had issued and outstanding "p" shares of common stock which were h...
WPX Energy Will Undergo An Ownership Change
September 30, 2020 - Bulletin Print Report
Devon Energy, ("DVN"), and WPX Energy, ("WPX"), announced that they have entered into an agreement to combine in an "all-stock merger of equals" t...
Trustee-To-Trustee Transfer Is Not A "Distribution"
September 30, 2020 - Bulletin Print Report
Decedent maintained two IRAs, IRA X and IRA Y. Decedent died on Date N, after his required beginning date, as defined in Sec. 401(a)(9). Decedent was unmarried at the time of h...
Berkshire Hathaway's Role In SSP's Transformational Acquisition
September 30, 2020 - Bulletin Print Report
The E.W. Scripps Company, ("SSP"), will be purchasing the stock of ION Media Networks, Inc., ("IMN") for a total of $2.65 billion. The market has endorsed t...
SBE To Acquire Electric Vehicle Charging Network
September 29, 2020 - Bulletin Print Report
The latest "SPAC" acquisition is very much "of the moment" since the private company that will be going public through the combination with the SPAC operate...
Financing Agreements Are Not "Other Securities"
September 29, 2020 - Volume 14 Issue 187 Print Report
Petitioner, (P), is a New York corporation that manufactures and sells office equipment and supplies and provides related services. It sells its goods and services ou...
Cable TV Provider Not Entitled To A "COGS" Deduction
September 29, 2020 - Bulletin Print Report
Petitioner, ("P"), offers broadband communications services for Texas residential and business customers. P's services include internet access and telecommunicati...
Texas Premium Tax Is Not Unconstitutional
September 29, 2020 - Bulletin Print Report
APP brokered insurance policies with various Texas warehouses to insure bales of cotton temporarily stored at their facilities. APP received premiums from the Texas warehouses...
Tax Reform Bonus Payment Ruled A Gift
September 25, 2020 - Bulletin Print Report
Plaintiffs, who are all former employees of Lowe's Home Centers, LLC, ("L"), assert that L violated the Fair Labor Standards Act, ("FLSA"). Plaintiffs&#...
The Willens Deal Survey September 2020
September 25, 2020 - The Deal Survey: September 2020 Print Report
Welcome to our summary of deals for September 2020. 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 On Parent Stock Transferred To Subsidiary's Employees
September 25, 2020 - Volume 14 Issue 186 Print Report
Rev. Rul. 80-76, 1980-1 C.B. 15, holds that when a corporation's majority shareholder transfers stock in that corporation to an employee of such corporation's...
Record-Breaking SPAC Deal Structured As A JV
September 25, 2020 - Bulletin Print Report
United Wholesale Mortgage, a closely-held entity,and Gores Holdings IV, Inc., ("GHI"), a publicly traded and widely heldspecial purpose acquisition compan...
Liquidating Trust Maintains Its Status
September 24, 2020 - Volume 14 Issue 185 Print Report
D filed a voluntary petition under Chapter 11 of the Bankruptcy Code (Title 11 of the United States Code)on Date 1. The Bankruptcy Court confirmed the plan on D...
Merger Results In Loss Of Tennessee NOLs
September 24, 2020 - Bulletin Print Report
The TP companies are affiliates with common ownership. The TP companies have elected Subchapter S status for federal income tax purposes. Some of the companies have substantial...
"UFI" Payments Are Currently Deductible
September 23, 2020 - Volume 14 Issue 184 Print Report
S provides electric service to a diverse group of retail, commercial, industrial, and public sector customers in the city and suburbs of City. S is subject to the reg...
Cooking Lessons Not Subject To New York Sales Tax
September 23, 2020 - Bulletin Print Report
Petitioner intends to teach private cooking and baking lessons in peoples' homes. Petitioner will offer her customers one of three services: One such service includes Petit...
I.R.S. Waives "PPP" Reporting Requirements
September 23, 2020 - Bulletin Print Report
Section 1102 of the "CARES" Act, Pub. L. No. 116-36, established the so-called "Paycheck Protection Program," ("PPP"). The PP...
Non-Profit Corporations Do Not Have Shareholders
September 23, 2020 - Bulletin Print Report
W was organized on May 8, 2012 as a non-stock, non-profit corporation under the Kentucky Non-Profit Corporation Act, ("Act"). The articles of incorporation state: &qu...
Liberty Latin America Ltd. Distributes "Bargain Rights"
September 22, 2020 - Bulletin Print Report
Liberty Latin America Ltd., ("LLA"), is an international provider of telecommunications services. LLA recently distributed subscription rights to the holders of its C...
Refurbishment Resulted In New Or Different Tractor
September 22, 2020 - Bulletin Print Report
SNL is wholly owned by SNI. SNI, through its subsidiaries, (collectively, "S"), has operated a truck load freight transport business since 1935. S uses truck tractors...
Converting Under a "Formless" Conversion Statute
September 22, 2020 - Volume 14 Issue 183 Print Report
On January 1, 2003, A is organized in State as an unincorporated entity that is classified as a partnership for federal tax purposes. &nbs...
An Amended Return Is Not An Original Return
September 21, 2020 - Bulletin Print Report
On October 3, 2016, Plaintiffs mailed their 2015 Oregon tax return to Defendant, and Defendant processed Plaintiffs' return on October 6, 2016. Plaintiffs did not select th...
Rent Received From A TRS Can Be Qualifying Income
September 21, 2020 - Bulletin Print Report
TP is a real estate investment trust, ("REIT"). TP invests primarily in real estate serving the health care industry. TP owns a portfolio of Facilities. Each Facility...
Does The Pandemic Permit A N.Y. Non-Resident To Apportion Wages?
September 21, 2020 - Bulletin Print Report
Tax Law Sec. 601(e) imposes a personal income tax on a New York non-resident individual's taxable income that is "derived from New York sources." The tax is equal...
Equitable Owner of Property Can Deduct Mortgage Interest
September 21, 2020 - Volume 14 Issue 182 Print Report
In 2003, Mr. M and Ms. Z transferred legal and equitable title to the ED property, for a five year period, to EHC, as trustee for the ED Trust, (EDT). According to th...
Eighth Amendment Does Not Apply To "FBAR" Penalties
September 18, 2020 - Bulletin Print Report
Defendant, ("D"), has been a citizen of the United Statessince 1988. D resided here during the 2007 calendar year. In 1999, D signed paperwork to open the "...
Dividends On REIT Stock Is "Good" REIT Income
September 18, 2020 - Volume 14 Issue 181 Print Report
TP, a State A corporation, is a publicly traded REIT. TP owns a diverse portfolio of Properties in Country A. TP's Country A operations are conducted through vari...
Property "Used In Manufacturing" Is Not Exempt From "PP" Tax
September 18, 2020 - Bulletin Print Report
MG is a company specializing in the procurement, aging, and distribution of cheese...with a full line of cheese and cheese-related products. MG was a "manufacturer" a...
Income From Storing Natural Gas Is Qualifying MLP Income
September 17, 2020 - Volume 14 Issue 180 Print Report
X is the common parent of a consolidated group. PRS is a limited partnership. PRS' general partner is Y, a member of X's consolidated group. &...
The Opioid Stewardship Payment Is A Tax
September 17, 2020 - Bulletin Print Report
New York appeals from judgments of the District Court invalidating the State's Opioid Stewardship Act, ("OSA"). Part of the OSArequires opioid manufacturers...
AIV Is Planning A "Reverse" (Taxable) Spin-Off
September 16, 2020 - Bulletin Print Report
Apartment Investment and Management Company, ("AIV"), has announced a plan to separate its business into two separate and distinct publicly traded companies, Apartmen...
Provider of Fractionation Fluids Has Qualifying MLP Income
September 16, 2020 - Volume 14 Issue 179 Print Report
X is a limited partnership. X intends to consummate an initial public offering (IPO). X expects to be treated as a publicly traded partnership (PTP or MLP). X provide...
Tax Benefits Permitted For "Non-Traditional" Medical Care
September 16, 2020 - Bulletin Print Report
Petitioner, ("P"), claimed $14,722 in medical expenses on his application for property tax reduction benefits. P explained that the amount represented the costs of &q...
IPOB Lands An Attractive Target
September 16, 2020 - Bulletin Print Report
In just the latest of what has become almost a daily occurrence, Opendoor Labs, Inc., ("OLI"), a privately-held corporation, has entered into a definitive business co...
Parking Revenue Constitutes Rents From Real Property
September 15, 2020 - Volume 14 Issue 178 Print Report
TP is a REIT. It operates its business through OP. OP is a State B limited partnership. TP, OP, and lower-tier entities wholly owned by OP, collectively, are referred...
Taxpayer Outside Of California For A "Temporary Or Transitory Purpose"
September 15, 2020 - Bulletin Print Report
In February 2013, H moved from California, ("C"),to Malaysia, ("M"), for the purpose of employment for S. The contract stated that the duration of emp...
Passive Investor Found To Be Doing Business In California
September 15, 2020 - Bulletin Print Report
APP is a limited liability company, (LLC), that is classified as a partnership for both federal and California income tax purposes. It is a "foreign" LLC formed in De...
Global Indemnity Ltd. Is Re-Domiciling
September 14, 2020 - Bulletin Print Report
Global Indemnity Ltd., ("GI Cayman), will be re-incorporating in the United States. It cites the 2017 tax law, (the "TCJA"), as a motivating factor in its decisi...
Yoga Classes Exempt From Sales Tax
September 14, 2020 - Bulletin Print Report
YS is a yoga instruction and fitness franchisor. YM is a YS franchisee. YM's customers will be charged a fee to participate in yoga classes. YM intends to offer classes tha...
Foreign Limited Partner Subject To New Jersey CBT
September 14, 2020 - Bulletin Print Report
Throughout the audit years, Pulte Group Inc.,("P"),was the "apex parent" at the top of the corporate hierarchy that owned approximately 200 subs...
"Loan Funding" Fees Do Not Constitute Interest
September 14, 2020 - Volume 14 Issue 177 Print Report
A real estate investment trust (REIT) invests in construction loans. Under an agreement between the trust and a borrower, the trust agreed to advance funds to the bor...
Fiat/Peugeot Merger Is Intended To Qualify As A Reorganization
September 11, 2020 - Bulletin Print Report
Late last year, Fiat Chrysler Automobiles N.V., ("FCA"), and Peugeot S.A., ("PSA"), entered into a "combination agreement" providing for the combi...
Notice Of Deficiency Issued After Expiration Of Limitations Period
September 11, 2020 - Bulletin Print Report
Petitioner, ("P"), e-filed the 2013 Form 1040 on October 15, 2014, (the "10/15 submission"). P e-signed Form 8879 to authorize BTL to file a return on his b...
CDs Are "Cash and Cash Items"
September 11, 2020 - Volume 14 Issue 176 Print Report
Sec. 851 and Sec. 856 prescribe certain requirements that an entity must meet to qualify as a regulated investment company (RIC) or as a real estate investment trust...
Taxpayer Not A "Qualified Individual"
September 10, 2020 - Bulletin Print Report
The appellants say that JH's work in Afghanistan, ("A"), in 2011-2012 qualified them for a foreign income tax exclusion under Sec. 911 of the Internal Revenue Cod...
Guaranteed Payments For Capital Not Part of a Sale
September 10, 2020 - Volume 14 Issue 175 Print Report
PRS is a limited partnership. PRS owns and operates the Property, which has a fair market value of approximately "a" and is subject to mortgage debt of &quo...
"Soft Drinks" Are Subject To Sales Tax
September 10, 2020 - Bulletin Print Report
Petitioner is a wholesale manufacturer of orgeat almond syrup, (the "product"). Petitioner sells the product online, as well as in grocery stores. The orgeat almond s...
Substantial Compliance With "Qualified Appraisal" Requirement Sufficient
September 10, 2020 - Bulletin Print Report
On December 9, 1999, E acquired 197 acres of real property in Westford, Massachusetts for $470,000. The property was purchased through GHE LLC and is referred to as the "G...
Certain Sales Of Beer Exempt From "ABT"
September 9, 2020 - Bulletin Print Report
Petitioner is a New York State manufacturer of beer with a manufacturing facility situated in New York City. Petitioner also sub-contracts some of its manufacturing to faciliti...
LUB Is Completely Liquidating
September 9, 2020 - Bulletin Print Report
Luby's, Inc., ("LUB"), announced that its board of directors, (the "Board"), "adopted and approved a plan of liquidation and dissolution, (the &quo...
Variable Interest Found To Be Qualifying REIT Income
September 9, 2020 - Volume 14 Issue 174 Print Report
In order to restructure J's debt, J proposes to form a trust, (X). X will offer its shares to investors, and with the proceeds of the sale of X's shares J wil...
Absence Of Revenue Does Not Preclude Finding Of "ATB"
September 9, 2020 - Bulletin Print Report
Parent, ("P"), is a publicly-traded State A corporation. P wholly-owns each of Sub 1, ACQ, and D2. D2 owns LLC1, a disregarded entity. LLC1 owns all of the stock of D...
Sec. 465 Is A Method Of Accounting
September 8, 2020 - Bulletin Print Report
For tax years 2009 and 2010, S was a member of several entities which were taxed as partnerships. One such entity was SSY. For tax year 2009, S received income from other partn...
Cleaning Equipment Not "Used Directly" In The Production Process
September 8, 2020 - Bulletin Print Report
S is a U.S. subsidiary of SI, a Canadian dairy company. S operates facilities at various locations in Wisconsin. S manufactures cheese. The only type of personal property at is...
Internet Access Provider "Offered" Screening Software
September 8, 2020 - Bulletin Print Report
In 1998, Congress enacted the Internet Tax Freedom Act, ("ITFA"), which prohibited State and local governments from imposing any taxes on Internet access. Congress ma...
Contribution to Capital vs. Exchange
September 8, 2020 - Volume 14 Issue 173 Print Report
Corporation C, (C), directly owns all of the stock of Corporation B, (B). The latter owns all of the stock of Corporation A, (A), which owns all of the stock of Corpo...
Livongo/Teledoc Proxy Materials Address Special Dividend
September 4, 2020 - Bulletin Print Report
Teledoc Health, Inc. ("T"), and Livongo Health, Inc. ("L"), have entered into a definitive agreement pursuant to which T will acquire all of the stock of L....
Post-Contribution Redemption Not Attributed To Donor
September 4, 2020 - Bulletin Print Report
PH was the C.F.O. and a shareholder of GCI, a privately held corporation. The GCI board of directors, (the "Board"), authorized shareholders to donate GCI shares to F...
Accountant's Settlement Payment Not Excluded From Gross Income
September 4, 2020 - Bulletin Print Report
Grant Thornton, ("GT"), recommended that M structure his consulting business as an 'S' corporation. GT also recommended that the 'S' corporation be wh...
Step Transaction Doctrine Produces a Reorganization
September 4, 2020 - Volume 14 Issue 172 Print Report
TP, an individual, and I, also an individual, each own 50 percent of the stock of T. TP arranged for Investors (Is) to form a corporation, ACQ, on TP's behalf, fo...
Skillz Will "Go Public" Via "SPAC" Merger
September 3, 2020 - Bulletin Print Report
Skillz, Inc., ("S"), a leading, closely-held, mobile games platform, and Flying Eagle Acquisition Corporation, ("FEAC"), a publicly traded special purpose a...
Prearranged Series Of Transactions Lacked Economic Substance
September 3, 2020 - Bulletin Print Report
Petitioners, ("Ps"), organized D LLC, TSC, an 'S' corporation, ILP, and DT. Ps each owned 50 percent of TSC. Each P held a one percent general partnership int...
Manufactured Homes Constitute "Real Estate Assets"
September 3, 2020 - Volume 14 Issue 171 Print Report
Company, (C), is in the business of purchasing, pooling, selling, and servicing conditional sales contracts for manufactured housing. C also originates manufactured h...
Processing Natural Resources Gives Rise To Qualifying MLP Income
September 2, 2020 - Volume 14 Issue 170 Print Report
X corporation, (X), intends to form a publicly traded partnership (PTP or MLP) within the meaning of Sec. 7704(b) of the Internal Revenue Code....
A Right Of First Refusal Is Not An Option
September 2, 2020 - Bulletin Print Report
PS is a limited partnership organized under New York law to develop the Apartment Complex, ("AC"). Defendants SHF and SLP are Limited Partner and Special Limited Part...
I.R.S. Overlooks Failure To File Form 1122
September 2, 2020 - Bulletin Print Report
P owned Sub 1; Sub 1 owned Sub 2; and Sub 2 owned Sub 3. Sub 3 operates Business A. In Year, the following series of transactions occurred: (i) On Date 3, P was formed on behal...
Ligand Using "CVRs" To Compensate Pfenex Shareholders
September 1, 2020 - Bulletin Print Report
Ligand Pharmaceuticals, Inc., ("LPI"), recently unveiled the details of its agreement to acquire all of the outstandingstock of Pfenex, Inc., ("PFI"),...
Classifying Mixed-Use Property
September 1, 2020 - Volume 14 Issue 169 Print Report
In Date 1, TP purchased Property located at "D" for "$E", and placed the property in service during the taxable year ending Date 2. &nbs...
Convertible Virtual Currency Received For "Micro-tasks" Is Gross Income
September 1, 2020 - Bulletin Print Report
A variety of digital platforms now enable individuals or entities to "crowd source" jobs by using the Internet to outsource assignments to an undefined and often larg...
Cincinnati's Definition Of "Affiliated Group" Is Rejected
September 1, 2020 - Bulletin Print Report
Time Warner Cable, Inc., ("TWC"), amended its 2013 Cincinnati, ("C") income tax return in 2015. The Department of Finance, (the "Department"),&nbs...
Residential Property Not Converted To Business Use
August 31, 2020 - Bulletin Print Report
On July 20, 2005, Appellants, ("APPs"), purchased a residential property in Pleasanton, California, (the "property"), for $2,295,000. On May 17, 2012, APPs...
Minor Children Are Neither Qualifying Children Or Relatives Of Taxpayer
August 31, 2020 - Bulletin Print Report
DB is the mother of ADB and JNB. MB is not the biological or adoptive father of those children. In 2016, ADB was age seven and JNB was age 11. The children did not reside with...
Telecommunication Infrastructure Assets Are Real Property
August 31, 2020 - Bulletin Print Report
TP is a REIT. TP constructs and/or acquires telecommunication infrastructure assets, (the "Systems"), and then leases, licenses and/or otherwise grants the use of the...
Liquidating Sales Are Not "Prohibited Transactions"
August 31, 2020 - Volume 14 Issue 168 Print Report
TP is a REIT. TP primarily owns and leases residential real estate to third parties. LP, a State B limited partnership, owns a "Y%" interest in TP. <...
Replacement Property Not Timely Identified
August 28, 2020 - Bulletin Print Report
On April 30, 2012, Appellant, ("APP"), entered into a deferred exchange agreement with ANIto facilitate a like-kind exchange of APP's property, (the "r...
Counsel Casts Doubt On Reorganization Status of Noble/Chevron Merger
August 28, 2020 - Bulletin Print Report
Chevron Corporation, ("C"), and Noble Energy, Inc., ("N"), have entered into a definitive agreement pursuant to which C will acquire all of the outstanding...
CFC Qualifies For "Manufacturing" Exception
August 28, 2020 - Volume 14 Issue 167 Print Report
TP is a leading global provider of General Products. TP owns FC, an entity formed under the laws of Country. FC owns Disregarded Entity 1 (DE1). DE1 owns DE2. FC, DE1...
Transfer Of Title To Disregarded Entity Exempt From "RETT"
August 27, 2020 - Bulletin Print Report
Petitioner proposes to transfer three parcels of real estate owned by petitioner personally to N LLC, a New Hampshire single member LLC, which is owned by H LLC, which is in tu...
Determining The True Value Of Comcast's Capital In Mississippi
August 27, 2020 - Bulletin Print Report
Comcast, ("C"), provides cable-network and related services in Mississippi, ("MS"), C holdsinvestments in more than 50 subsidiaries that, like C, are...
The Time Limit For Filing A Petition Is Jurisdictional
August 27, 2020 - Bulletin Print Report
Respondent, ("R"), mailed a notice of deficiency by certified mail to Petitioner, ("P"), on May 21, 2019. The notice was sent to both P's last know addr...
Decline In Value Does Not Give Rise To a Deductible Loss
August 27, 2020 - Volume 14 Issue 166 Print Report
From August, 1969 until November, 1973, petitioner (P) served as asenior vice-president and a director of GDC, a publicly held corporation. &nbs...
Construction Site Safety Services Are Subject To Sales Tax
August 26, 2020 - Bulletin Print Report
Petitioner is a company that is engaged by contractors to provide site safety managers, fire safety managers, and "emergency action watchmen" for work on construction...
Accounts Receivable Not Property Held For Investment
August 26, 2020 - Volume 14 Issue 165 Print Report
XY is a partnership. Prior to the formation of XY, the business was run through X, an 'S' corporation, and Y, a partnership. A, B, C, D, and E were the shareh...
"TOD" Status Is Not Ownership
August 26, 2020 - Bulletin Print Report
On October 24, 2011, SB purchased a 2007 Chevrolet, ("Chevy"). SB titled the Chevy as SB "TOD" (i.e., "transfer on death") TB. On January 5, 2016,...
Liberty Broadband To "Monetize" Part Of Charter Stake
August 25, 2020 - Bulletin Print Report
Recently, Liberty Broadband Corporation, ("LBB"), announced a transaction in connection with which it willacquire, in a "downstream merger," the asset...
The BPOL Is A Tax On Internet Access
August 25, 2020 - Bulletin Print Report
This is an appeal from a ruling by the Tax Commissioner. C initially sought a determination from the City, challenging a portion of the City's BPOLassessment on the b...
TRS Effects "Internal" Spin-Off
August 25, 2020 - Volume 14 Issue 164 Print Report
P is a real estate investment trust (REIT). P's stock is bothpublicly-traded and widely held. P owns all of the membership interests in LLC1, a disregarded...
Spouses Can Have Separate Domiciles
August 24, 2020 - Bulletin Print Report
S and M were married in 1971. M and S each retired in 2012. LZ, their daughter, was born in 1982. In 1985, LZ was seriously injured in a sledding accident. LZ suffers from seve...
System Located On Cornell's Land Not Tax-Exempt
August 24, 2020 - Bulletin Print Report
Petitioner, ("P"), is challenging tax assessments on a solar photovoltaic electrical system ("system") that is located on its land. P has entered into an ag...
Reimbursement of Expenditures Escapes "Disguised Sale" Rule
August 24, 2020 - Volume 14 Issue 163 Print Report
C is a REIT. C proposes to sponsor the formation of a new partnership that would own and operate real estate properties for long-term investment. C plans to contribut...
Installation Services Merely Incidental To Sale Of Personal Property
August 21, 2020 - Bulletin Print Report
B is a retailer of consumer electronics and appliances. B also sometimes installs appliances in the purchasers' homes. When a customer purchases an appliance, the customer...
Nonresident Alien Not Engaged In a U.S. Trade or Business
August 21, 2020 - Volume 14 Issue 162 Print Report
The taxpayer, a nonresident alien individual, owned real property situated in the U.S. that was subject to long-term leases, referred to as "net leases."
Improper Double Taxation Not Found
August 21, 2020 - Bulletin Print Report
D erects towers, builds lines and antennas, and installs roads and fences for wireless tower sites. D pays sales tax or use tax as a consumer when it purchases building materia...
The Willens Deal Survey August 2020
August 20, 2020 - The Deal Survey: August 2020 Print Report
Welcome to our summary of deals for August 2020. 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.
Boat Not A Place Of Amusement
August 20, 2020 - Bulletin Print Report
A is a Missouri corporation. G is A's sole shareholder. A engaged in the sale and rental of fly fishing equipment and supplies and took customers on guided fly fishing trip...
Air Conditioning Units Are Structural Components Of a Building
August 20, 2020 - Volume 14 Issue 161 Print Report
TP is the owner of a shopping center. It provides rooftop heating and air conditioning units to six of the center's store tenants. &nb...
Post-Violation Conduct Does Not Establish Reasonable Cause
August 20, 2020 - Bulletin Print Report
The Hs were married on November 22, 1992. They moved to Nebraska in 1996. In 2000, C accepted a position that required him to relocate to the United Kingdom, ("U.K.")...
Only Receipts From Enumerated Services Are Subject To Sales Tax
August 19, 2020 - Bulletin Print Report
Petitioner is a New York Federal Firearms Licensee, ("FFL"). Petitioner also is a New York sales tax vendor that sells firearms from its own inventory. A New York res...
The Go-To Structure For SPAC Acquisitions
August 19, 2020 - Bulletin Print Report
There have been a plethora of "SPAC" acquisitions, or at least announcements thereof, over the recent past. As we delve into the agreements with respect to these acqu...
Classifying The "Astro Needle"
August 19, 2020 - Volume 14 Issue 160 Print Report
BI was an electing small business corporation. In 1968, BI entered into a contract with Universal Design, Ltd. (U), whereby U undertook to construct, erect, and insta...
"Open To The Public"
August 19, 2020 - Bulletin Print Report
The taxpayer, ("TP"), operates a shooting range with seven outdoor firing ranges. When the facility first opened, Gintended it to be a private shooting range. H...
Sewage System Is A Structural Component
August 18, 2020 - Volume 14 Issue 159 Print Report
Petitioners owned a small shopping center. The shopping center consisted of two buildings. Prior to 1968, the sewage generated by the shopping center was handled by t...
Split-Up Satisfies Continuity Of Interest Requirement
August 18, 2020 - Bulletin Print Report
Distributing, ("D"), is an 'S' corporation which is engaged primarily in Business A. D has outstanding "A" shares of stock all of which are held by...
Gain From Sale Of Assets Classified As "Business Income"
August 18, 2020 - Bulletin Print Report
Y is an Arizona 'S' corporation. Its principal place of business and commercial domicile is in Arizona. RP was its sole shareholder. Y operated an internet-based busine...
Disney May Not Deduct Related Member Royalties
August 18, 2020 - Bulletin Print Report
P's operations are comprised of five business segments: Media Networks, Parks and Resorts, Studio Entertainment, Consumer Products, and Interactive Media. P is The Walt Dis...
Use Of Property Is Not "Rental Activity"
August 17, 2020 - Bulletin Print Report
For the 2007, 2008, and 2009 tax years, Appellants, ("APPs"), sought refunds on their federal income taxes based on losses incurred in connection with three vacation...
Motor Vehicles Were Purchased "At Retail"
August 17, 2020 - Bulletin Print Report
TP offers car rental services under the trade names "Enterprise Rent-A-Car," "Alamo Rent-A-Car," and "National Car Rental." TP buys vehicles for t...
Corporate Partner Found To Be "Doing Business" In New York City
August 17, 2020 - Bulletin Print Report
On April 8, 1953, MA, the predecessor to Petitioner, ("P"), incorporated in the State of New York. In 1954, MA joined with NCCto form a joint venture, M/N, to a...
Demise of the "Functional" Or "Equivalency" Test
August 17, 2020 - Volume 14 Issue 158 Print Report
Rev. Rul. 67-67, 1967-1 C.B. 6, holds that a floating dock that is attached by rings to fixed pilings driven into a harbor bottom is inherently permanent property
Senators Call For Revocation Of Rev. Rul. 73-201
August 14, 2020 - Bulletin Print Report
Advice has been requested whether certain expenditures made to prevent conception and childbirth or to terminate pregnancy are amounts paid for "medical care" as that...
The I.R.C. Supersedes State And Local Tax Rules
August 14, 2020 - Bulletin Print Report
On January 10, 2018, the court converted this case to a case under chapter 7 and appointed JP as the chapter 7 trustee, ("T"). T filed this Motion, requesting that th...
Relocatable Property Classified As Real Property
August 14, 2020 - Volume 14 Issue 157 Print Report
In 1975, the taxpayer purchased a number of relocatable classroom units that it then leased to the local school district. Eac...
Claim For Refund Not "Duly Filed"
August 13, 2020 - Bulletin Print Report
The Gs timely filed their original return for 2015 on or about April 15, 2016, which claimed a refund... In late 2018, CA timely filed the Gs' 2015 amended return (Form 104...
Depreciating Special Handling Devices
August 13, 2020 - Volume 14 Issue 156 Print Report
Taxpayer, (TP), is a State X corporation. TP is engagedprincipally in the production of food products for distribution in grocery, food service, restaurant and...
Literary Club Not An Educational Or Charitable Institution
August 13, 2020 - Bulletin Print Report
The Literary Club, ("Club"), is a private organization whose primary function, as described in its constitution, is to "provide a forum for its members to read o...
Uber Is Enjoined From Classifying Drivers As Independent Contractors
August 12, 2020 - Bulletin Print Report
On May 5, 2020, the Attorney General of California filed this action on behalf of the People of the State of California, (the "People"), seeking injunctive relief...a...
Management Activities Found To Be "Usual and Customary"
August 12, 2020 - Volume 14 Issue 155 Print Report
Company, (C), which intends to elect REIT status, contributed its leasing service company assets and cash to Operating Partnership, (OP), in exchange for units in OP....
Application Of "Series-Qualifier" Rule Denies Deduction
August 12, 2020 - Bulletin Print Report
In 1980, the Washington legislature enacted former RCW 82.04.4297, which created a B&O tax exemption for "amounts received from the United States" or "from t...
Third Point's Acquisition Of Sirius Feature Eclectic Mix Of Consideration
August 11, 2020 - Bulletin Print Report
One of the more complex deals we have encountered is the proposed acquisition by Third Point Reinsurance Ltd., ("TP"), of Sirius International Insurance Group, ("...
Taxpayers Cannot Challenge "EEFVTR" Data Or Methodology
August 11, 2020 - Bulletin Print Report
Petitioners, ("Ps"), were shareholders of PP, an 'S' corporation. PP was certified as a "QEZE" effective June 28, 2008. On or about December 1, 2002...
Distribution Not In Liquidation Of Partner's Interest
August 11, 2020 - Bulletin Print Report
In 2012, W owned a 2.24 percent interest in BS, a partnership. BS owned a 19.63 percent membership interest in H. In 2012, H was acquired by DV. Under the merger agreement, mem...
Taxpayer's Gain Was a Short-Term Capital Gain
August 11, 2020 - Volume 14 Issue 154 Print Report
Petitioner, ("P"), on June 19, 1945, purchased 50,000 bushels of rye, for his own account, on a grain futures contract. He sold it on December 19, 1945, rea...
Daily Fantasy Sports Entry Fees Are Taxable "Wagers"
August 10, 2020 - Bulletin Print Report
Traditionally, fantasy sports have been typically played among a group of people...over the course of a league's season. Around 2007, companies began offering a new form of...
GCI Liberty And Liberty Broadband Announce A "Downstream" Merger
August 10, 2020 - Bulletin Print Report
GCI Liberty, Inc., ("GCI"), a company that was split-off from Qurate, owns approximately 23.5 percent of the stock of Liberty Broadband Corporation, ("LBB")...
Exceptions To The "Disguised Sale" Rules
August 10, 2020 - Volume 14 Issue 153 Print Report
M is a corporation formed in State S. Two of M's major lines of business are B and C. The B business is conducted by D, an unincorporated division of M. The C bus...
Acquisition Of LVGO Features Special Dividend
August 7, 2020 - Bulletin Print Report
Teladoc Health, Inc., ("T"), and Livongo Health, Inc., ("L"), announced that they have entered into a definitive merger agreement, the objective of which is...
Rentals And Provision Of Services Are Separate Transactions
August 7, 2020 - Bulletin Print Report
Taxpayer, ("TP"), provides wedding and party entertainment services. TP provides disc jockeys, coordination services, visual packages, photo booths and other services...
Alternate Week Employee Does Not Pass "QEZE" Muster
August 7, 2020 - Bulletin Print Report
Petitioners, ("Ps"), filed Forms IT-203 for the years 2012-2016 on which they claimed the "QEZE" Real Property Tax Credit, ("RPTC"), allegedly ear...
Holding Period Of Stock Acquired Pursuant To An Option
August 7, 2020 - Volume 14 Issue 152 Print Report
On January 1, 1948, Petitioner, (P), together with his father and brother, formed a partnership by equal contributions of capital for the purpose of conducting a lumb...
The "True Object" Test Provides Exemption From Sales Tax
August 6, 2020 - Bulletin Print Report
Taxpayer operates a bowling alley in Virginia. One of the "products" offered by Taxpayer is a bowling package called "Cosmic Bowling," ("Package")...
Payments Made To Former Spouse Did Not Increase Basis
August 6, 2020 - Bulletin Print Report
S, in 1973, formed DCA, a partnership for Federal income tax purposes. On January 1, 2008, S assigned his 70 percent membership interest in DCA to SRM, an 'S' corporati...
Depreciating Furniture and Fixtures
August 6, 2020 - Volume 14 Issue 151 Print Report
Petitioner, (P), is engaged in the banking and financial services business. During 1987-1989, P placed in service furniture and fixtures at its facilities throughout...
Damages Not Excluded From Gross Income
August 6, 2020 - Bulletin Print Report
Between 2002 and 2013, H held dual appointments at the U.C.L.A. David GeffenSchool of Medicine as Associate Professor and as the attending surgeon at the West Los Angeles...
Likelihood of Repurchase Negates Loss From Prior Sale
August 5, 2020 - Volume 14 Issue 150 Print Report
HF, an experienced investment banker, established two trusts for his two sons and in 1969 the trusts had large capital gains from the sale of certain stock. To offset...
Unauthorized Insurance Company Exempt From MD Corporate Income Tax
August 5, 2020 - Bulletin Print Report
Leadville Insurance Company, ("L"), appealed the assessment of corporate income tax in the amount of $23,831,054.34...for the years 1996-2003. The Comptroller imposed...
E-Mails Constitute A Written Separation Agreement
August 5, 2020 - Bulletin Print Report
Petitioner, ("P"), and his former spouse, ("FS"), were married on June 11, 2009. They had one child during their marriage. They separated on November 4, 201...
Farm Optional Method Income Is Not "Earned Income"
August 5, 2020 - Bulletin Print Report
Petitioner, ("P"), an unmarried individual, age 57, filed her 2017 Wisconsin Homestead Credit tax claim on February 26, 2018. The Department of Revenue, (the "De...
7-Eleven To Acquire Speedway From MPC
August 4, 2020 - Bulletin Print Report
7-Eleven, Inc., ("7E"), announced that it has entered into an agreement to acquire Speedway, ("SP"),a leading convenience store chain, from Marathon P...
Not Essentially Equivalent to a Dividend
August 4, 2020 - Volume 14 Issue 149 Print Report
TP, his wife, son, and daughter, each owned 25 percent of the common stock of X Corporation, (X). TP owned all 1,000 shares of X's non-voting preferred stock. X r...
Dissolution And Entity Classification Election Is An 'F' Reorganization
August 4, 2020 - Bulletin Print Report
Taxpayer was incorporated in State A on Date 1. Taxpayer filed "Articles of Domestication" in State B on Date 2. Taxpayer was dissolved in State A on the &qu...
State Tax Credits Constitute "Property"
August 3, 2020 - Bulletin Print Report
TP purchased three Oregon Business Energy Tax Credit, ("BETC"), certificates over the course of several years, each time for a discounted purchase price that was 33 p...
Floating Docks Bounding Boat Slips Are Real Estate Assets
August 3, 2020 - Bulletin Print Report
TP is a real estate investment trust, ("REIT"). TP intends to acquire an interest in C. C is a partnership for federal income tax purposes. C owns and leases the &quo...
Property Used In the Trade or Business
August 3, 2020 - Volume 14 Issue 148 Print Report
In April, 1956, a manufacturing corporation entered into an agreement to purchase a parcel of land and certain buildings thereon for the specific purpose of using the...
EE Pays A "Stub Period" Dividend
July 31, 2020 - Bulletin Print Report
On July 29, 2020, pursuant to an Agreement and Plan of Merger that was entered into approximately 13 month earlier, Merger Sub, a newly-created, wholly owned subsidiary of Sun...
When Does Holding Period Begin To Accrue?
July 31, 2020 - Volume 14 Issue 147 Print Report
A small group of investors, "the Lessor," has leased a parcel of land to a corporate taxpayer, "the Lessee." Under the terms of the lease arrangem...
Replacement Cannot Precede Casualty Loss
July 31, 2020 - Bulletin Print Report
On July 26, 2019, JEGbought a 2018 Cadillac, (the "Cadillac"), for $38,897. JEG paid $2,432.34 in state and local sales taxes when she titled the Cadillac. On N...
Not All "Property" Is a Capital Asset
July 30, 2020 - Volume 14 Issue 146 Print Report
On Date 1, TP, a corporation, purchased contracts that provided life insurance on the lives of its employees. The contracts were individual whole life fixed premium c...
When Are "Straddle" Year Taxes Incurred?
July 30, 2020 - Bulletin Print Report
Prior to filing for bankruptcy, the Debtors had sold or otherwise disposed of substantially all of their material assets. On October 14, 2015, the Debtors filed a voluntary pet...
Storage Satisfies "Actual Use" Requirement
July 30, 2020 - Bulletin Print Report
Christian Mission, ("CM"), owned a building and an adjacent parking lot in Passaic, New Jersey. In 2009, CM purchased the property at issue here, a commercial warehou...
Material Participation In Rental Endeavor Not Found
July 29, 2020 - Bulletin Print Report
L's father died in 1989, leaving 96 acres of property to each of L and her brother, T, as tenants in common. The property consisted of 96 acres of farm land and a three-acr...
Relocation Incentive Payments Not Contributions To Capital
July 29, 2020 - Bulletin Print Report
In 1996, New Jersey, ("NJ"), created the "Incentive Program" to "grow NJ's economy..." For a company to be eligible for grants three condition...
Monsters Of The Midway No Match For Cook County's Amusement Tax
July 29, 2020 - Volume 14 Issue 145 Print Report
All of the home games played by the Chicago Bears of the National Football Leaguewere played at historic Soldier Field during the tax periods at issue. Soldier Field has...
Payment of a Taxpayer's Expenses Produces Gross Income
July 28, 2020 - Volume 14 Issue 144 Print Report
The taxpayer, an official of an organization, was involved in certain litigation which was of a personal nature but which "focused national attention" on th...
Exemption From Petroleum Business Tax Denied
July 28, 2020 - Bulletin Print Report
P is a New York not-for-profit corporation exempt from sales and use tax under Sec. 1116(a)(4). P's purposes are religious and charitable. P filed a claim for refund of tax...
A Corporation Is Separate From Its Members
July 28, 2020 - Bulletin Print Report
On September 29, 2015, Kansas City Contracting, Inc., ("KCC"), purchased a 2015 GMC truck, ("GMC"). On December 31, 2019, KCC sold the GMC for $42,400. On J...
CNX Will "Roll Up" CNXM
July 28, 2020 - Bulletin Print Report
CNX Resources Corporation, ("CNX"), and CNX Midstream Partners, L.P., ("CNXM"), announced that they have entered into a definitive merger agreement, (the &q...
"Readily Ascertainable" Tax Planning Strategies Are Not A "Trade Secret"
July 27, 2020 - Bulletin Print Report
TLS Management and Marketing Services, LLC, ("TLS"), was a tax planning and consulting firm based in Puerto Rico, ("PR"). TLS alleged that it generated two...
Surplus Foreclosure Sales Proceeds Belong To The Property Owner
July 27, 2020 - Bulletin Print Report
R purchased a rental property in Southfield, Michiganfor $60,000 on August 15, 2011, but failed to pay the 2011 taxes due on the property. This delinquency was never paid...
Retention Of Control Gives Rise To A Use Tax Liability
July 27, 2020 - Bulletin Print Report
Petitioner is an Indiana-based company that manufactures and markets orthopedic implants, such as prosthetic joints.It also provides its customers with medical instrument...
Conversion and Replacement Are Separate Transactions
July 27, 2020 - Volume 14 Issue 143 Print Report
P is a general partnership of five individuals. In 1969, P purchased a building for commercial use. Through depreciation and other adjustments and distributions, the...
"Purchase" Buy-Down Payments Not Subject To S.C. Sales Tax
July 24, 2020 - Bulletin Print Report
Under a tobacco company "buy-down" contract with retailers, the tobacco company agrees to pay the retailer a specified amount for each pack of cigarettes sold by the...
Room Occupancy Excise Does Not Apply To "Room Comps"
July 24, 2020 - Bulletin Print Report
Company, ("C"), is licensed by the Massachusetts Gaming Commission to operate a gaming establishment in Massachusetts, ("M"). C owns and operates a hotel an...
Property Not Partnership Property
July 24, 2020 - Volume 14 Issue 142 Print Report
The taxpayer is a general partner of a firm which consists of both limited partnersand general partners. The limited partners are entitled to a fixed return on...
eBay To (Partially) Exit The Classifieds Business
July 23, 2020 - Bulletin Print Report
eBay, Inc., ("EBAY"), and AdevintaASA, ("ADE"), announced that they have entered into a definitive agreement for EBAY to transfer its classifieds busi...
"Buy Down" Payment Included In Receipts Subject To NY Sales Tax
July 23, 2020 - Bulletin Print Report
Petitioner is a retail dealer of cigarettes and tobacco products with various locations throughout New York State. Some cigarette manufacturers provide cigarette retailers with...
The Willens Deal Survey July 2020
July 23, 2020 - The Deal Survey: July 2020 Print Report
Welcome to our summary of deals for July2020. 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....
"Captive" Is An Insurance Company
July 23, 2020 - Volume 14 Issue 141 Print Report
W is an Ohio corporation actively engagedin the business of operating restaurants throughout the U.S., including Illinois. W is Wendy's International, Inc.<...
Grantor/Trustee And Trust Are Not The Same Person
July 22, 2020 - Bulletin Print Report
On June 28, 2019, JJG, an individual, purchased a 2008 Chevrolet Cobalt, ("Chevy"). JJG is a trustee and grantor of the Trust. On October 16, 2019, the Trust purchase...
Satisfying An Obligation With Property
July 22, 2020 - Volume 14 Issue 140 Print Report
Partnership, (PS), purchased property, (B), for $500x. A, a partner in PS, is entitled to a guaranteed payment under Sec. 707(c) of $800x. Subsequently, when the fair...
Say Yes To The Dress
July 22, 2020 - Bulletin Print Report
Petitioner owns and operates a bridal shop. A customer has two options when purchasing a wedding dress: (1) pay a 50 percent non-refundable down-payment on the purchase of a dr...
Partner Received A Distribution of Money
July 21, 2020 - Volume 14 Issue 139 Print Report
Partnership, (PS), owned a large parcel of "X" in State X. Taxpayer, (TP), held a total of "z%" interest in PS. Most of the partners, including TP...
Prior Payment Of Sales Tax Eliminates Necessity Of Paying Use Tax
July 21, 2020 - Bulletin Print Report
Taxpayer is a limited liability company. Taxpayer sells and installs industrial storage materials... The Department of Revenue, (the "Department"), issued an assessme...
Non-Willful FBAR Penalties Are On A "Per-Form" Not "Per-Account" Basis
July 21, 2020 - Bulletin Print Report
Congress enacted the Bank Secrecy Act, ("BSA"). Sec. 5314 provides that: "...the Secretary shall require a resident or citizen...to keep records, file reports......
Massachusetts Investor Must Adhere To The "Duty Of Consistency"
July 21, 2020 - Bulletin Print Report
In January 2006, P and his business partner formed H. P owned 75 percent of H. H was the sole member of SLLC, a disregarded entity. In February 2006, SLLC purchased a residenti...
Revisiting The Eldorado/Caesars Business Combination
July 20, 2020 - Bulletin Print Report
It appears that the last remaining obstacle to the acquisition of Caesars Entertainment Corporation, ("C"), by Eldorado Resorts, Inc., ("E"), has been surmo...
TRS Can Own (But Not Manage Or Operate) Health Care Facilities
July 20, 2020 - Bulletin Print Report
TP is a real estate investment trust, ("REIT"). TP owns a portfolio of senior housing and health care properties. F is a Region A limited partnership that owns "...
Real Property Not Used In A Trade Or Business
July 20, 2020 - Bulletin Print Report
In January 2000, petitioners, ("Ps"), purchased a 14,400 square-foot historic waterfront mansion and property in Newport, Rhode Island for $1.35 million with the inte...
Collection of Receivables Produces "RBIG"
July 20, 2020 - Volume 14 Issue 138 Print Report
Petitioner, (P), is an 'S' corporation engaged in providing medical services. P is a cash receipts and disbursementsmethod taxpayer, wholly owned...
Canceled Debt Was Not "QPRI"
July 17, 2020 - Bulletin Print Report
In 2006, W worked at SR as vice president of product and marketing. On December 13, 2006, W accepted KS's employment offer and in January 2007 she began working there. KS g...
Converted 'S' Corporation Avoids "RBIG"
July 17, 2020 - Volume 14 Issue 137 Print Report
Company, (C), owns, leases, and manages residential and commercial real estate. C reported its taxable income as a C corporation for all taxable years ending on or be...
Dell Confirms Potential For Spin-Off Of VMwawe
July 16, 2020 - Bulletin Print Report
Dell Technologies, Inc., ("DTI"), has now confirmed what was previously only rumored, i.e., that it is "exploring potential alternatives with respect to its owne...
Charging Station Operator Must Collect And Remit Sales Tax
July 16, 2020 - Bulletin Print Report
123 Company, ("123") owns and operates electric vehicle charging stations in South Carolina. Customers of 123 pay for electricity based on charging time, a "sess...
Diesel Fuel Not "Subject To" Fuel Taxes
July 16, 2020 - Bulletin Print Report
Arizona, ("AZ"), law imposes one of two distinct taxes on all diesel fuel sales--fuel tax or use tax--depending on how the diesel fuel is used. The law requires vendo...
License Fees Not Subject To "BIG" Tax
July 16, 2020 - Volume 14 Issue 136 Print Report
Company, ("CO"), a C corporation, owns "X" which it copyrighted. C also has the rights to other "X" which also has been copyrighted by a...
Apple Scores Unsurprising EC Tax Victory
July 15, 2020 - Bulletin Print Report
In 2016, the European Commission announced its decision that, as AAPL reports in its SEC filings, "Ireland granted (illegal) state aid to AAPL through the issuance of tax...
Expenses For Naturopathic Treatments Are "Medical" Expenses
July 15, 2020 - Bulletin Print Report
Petitioner claimed $13,572 in medical expenses. The Division removed therefrom$10,196 in "naturopathic" medical expenses. The Division denied the medical expens...
Estate Tax Imposed On "QTIP" Assets
July 15, 2020 - Bulletin Print Report
This case concerns whether the intangible assets in a "QTIP" trust which was created by the pre-deceasing spouse in New York, are subject to the Massachusetts, ("...
Depreciating Pipelines
July 15, 2020 - Volume 14 Issue 135 Print Report
Between 1988 and 1990, the plaintiffs constructed a steel pipeline network which linked S's gas fields to S's natural gas processing plant, (the "K facil...
Treatment Of NOLs Arising In Post-'17 Years
July 15, 2020 - Bulletin Print Report
Sec. 172 was amended by the "CARES" Act," (the "Act"). As amended, Sec. 172(a)(1) generally allows in the case of a taxable year beginning before Janua...
Gain From The Disposition of Property Is UBTI
July 14, 2020 - Volume 14 Issue 134 Print Report
M is an exempt hospital under Sec. 501(c)(3) of the Internal Revenue Code. During "u," M entered into a contract for the purchase of an undeveloped parcel o...
Installation Of Insulation Is An Exempt Capital Improvement
July 14, 2020 - Bulletin Print Report
Petitioner performs energy audits of existing homes and commercial buildings. It sometimes finds no insulation or insufficient insulation in attics or in basement rim or joist...
Tour Service Not Subject To New York Sales Tax
July 14, 2020 - Bulletin Print Report
The Petitioner provides pedal bus bike ("vehicle") sightseeing tours. Passengers book the vehicle for a group tour at a specific date, time, and location. The Petitio...
POTUS Not Immune From State Criminal Subpoenas
July 14, 2020 - Bulletin Print Report
Presidents have uniformly testified or produced documents in criminal proceedings when called upon by federal courts. This case involves the first state criminal subpoena direc...
OXY Announces Warrant Distribution
July 13, 2020 - Bulletin Print Report
Occidental Petroleum Corporation, ("OXY"), recently announced that its Board of Directors has declared a distribution to holders of its common stock of warrants to pu...
Timely "Rollover" Not Effected
July 13, 2020 - Bulletin Print Report
P is the mother of two boys, the elder of whom was scheduled to graduate from high school in 2016 and matriculate at Morehouse College, ("M"), that fall. P anticipate...
PG&E Begins The Next Phase Of Its Troubled Existence
July 13, 2020 - Volume 14 Issue 133 Print Report
PG&E Corporation, ("PGE"), and its operating subsidiary, Pacific Gas & Electric Co., ("PAC"), have, now that their complicated bankruptcy plan, (&qu...
Supreme Court Rules On Congressional Subpoenas Of POTUS Records
July 10, 2020 - Bulletin Print Report
In April 2019, three committees of the House of Representatives issued four subpoenasseeking information about the finances of President Trump, ("PT"), his chil...
Property Tax Value Not Permitted To Be Used To Fix "Just Compensation"
July 10, 2020 - Bulletin Print Report
The Kentucky Transportation Cabinet, Department of Highways, filed a petition to condemn certain real property owned by Borders Self-Storage & Rentals, LLC, ("B")...
Aon/WTW: Snatching Victory From The Jaws Of Defeat
July 10, 2020 - Bulletin Print Report
Aonplc, which recently "re-incorporated" from England to Ireland, has agreed to acquire "the entire issued ordinary share capital" of Willis Towers Wa...
Intermediary Does Not Earn "Royalty" Income
July 10, 2020 - Volume 14 Issue 132 Print Report
The organization is exempt from federal incometax as a charitable organization under Sec. 501(c)(3) of the Internal Revenue Code. Its resources are dedicated to...
Oregon's Intangible Personal Property Tax Is Discriminatory
July 9, 2020 - Bulletin Print Report
Oregon law generally taxes real and tangible personal property situated within its borders. But certain commercial and industrial entities, including railroads and other inters...
ALL Agrees To Acquire FGHC
July 9, 2020 - Bulletin Print Report
The Allstate Corporation, (ALL), has agreed to acquire the outstanding commonstock of National General Holdings, (NGHC), "for approximately $4 billion in cash or $34...
Sale of Business Gives Rise To Indiana "Business Income"
July 9, 2020 - Volume 14 Issue 131 Print Report
Under IC Sec. 6-3-2-2(a), business income of a corporation is subject to apportionment to Indiana, while nonbusiness income is generally allocable to the state from w...
Government's "SRP" Claim Accorded Priority In Chapter 13 Case
July 8, 2020 - Bulletin Print Report
S has objected to a portion of the U.S. Government's tax claim in his chapter 13 case. The portion to which he objects is the priority claim of approximately $2,000 for the...
Treasury Notes Found To Be "Debt-Financed" Property
July 8, 2020 - Volume 14 Issue 130 Print Report
Petitioner, (P), received a low-interest federal loan to finance an improvement to its facilities. At the time of construction, P withdrew only 1/2 of the approved lo...
Overpayment Interest Cases Cannot Be Heard By The District Court
July 8, 2020 - Bulletin Print Report
In January 2009, Bank of America, ("BA"), acquired Merrill Lynch, ("ML"). In October 2013, ML was merged with and into BA. In September 2017, BA filed a cla...
Sec. 338(h)(10) Deemed Sale Gain Is Not Business Income
July 7, 2020 - Volume 14 Issue 129 Print Report
In 1997, AS, a foreign corporationbut an Illinois taxpayer, was owned by ASFC. More than 80 percent of ASFC's stock was owned by L, an Indiana corporation.<...
Renter Retains Full Homestead Tax Exemption
July 7, 2020 - Bulletin Print Report
R was the sole owner of his home and used it as his permanent residence. In 1996, R applied for and received a homestead exemption on 100 percent of his residence, and he conti...
Montana's "No-Aid" Provision Is Unconstitutional
July 7, 2020 - Bulletin Print Report
In 2015, the Montana Legislature sought "to provide parental and student choice in education" by enacting a scholarship program for students attending private schools...
Best Buy Is A Retailer Of Appliances
July 6, 2020 - Bulletin Print Report
Best Buy is a retailer of consumer electronics and appliances. BB also sometimes installs appliances in the purchasers' homes. If the customer has Best Buy deliver and inst...
Charitable Contribution Not Allocable To Tax-Exempt Income
July 6, 2020 - Bulletin Print Report
An organization described in Sec. 501(c)(3) of the Code, ("Organization"), files a Return of Organization Exempt From Income Tax (Form 990). Organization also files a...
COVID-19 Disinfecting Activities Are "Cleaning Services"
July 6, 2020 - Bulletin Print Report
There appear to be two principal approaches to disinfecting coronavirus: (1) Wiping surfaces or spraying and wiping surfaces with disinfectant by hand; and (2) Using an electro...
Equipment Used To Produce X-Rays Qualifies For ITC
July 6, 2020 - Volume 14 Issue 128 Print Report
Petitioners filed a joint New York State personal income tax return for 1984. On the return, petitioners claimed an investment tax credit (ITC) in the amount of $10,8...
Deed Did Not Effect A "Transfer Of Ownership"
July 2, 2020 - Bulletin Print Report
On April 25, 1996, RZ, the owner of the property at issue in this case, executed a quitclaim deed, which conveyed title to herself and her five children as joint tenants with f...
Damages Partially Excluded From Gross Income
July 2, 2020 - Bulletin Print Report
P was employed by G as a certified nursing assistant beginning in January 2009 until her termination in January 2012. P suffered from epileptic seizures while at her workplace....
Sec. 338 Election Not a PSA "Triggering Event"
July 2, 2020 - Volume 14 Issue 127 Print Report
Between 1958 and 1983, thetax law permitted life insurance companies to accumulate, retain and defer taxes on 50 percent of undistributed profit in policyholder...
Trust Taxed On California Source Income
July 1, 2020 - Bulletin Print Report
RS established the Paula Trust, ("PT"), for the sole benefit of his daughter, M, a California resident. The PT has two co-trustees, a California resident and...
Processing Is A Qualified Activity For New York ITC Purposes
July 1, 2020 - Volume 14 Issue 126 Print Report
On March 3, 1977, the Department of Taxation and Finance, (the "Department"), issued a Notice of Deficiency against petitioner, (P), arising out of the Depa...
Vehicle Charger Does Not Sell Electricity
July 1, 2020 - Bulletin Print Report
The taxpayer owns and operates electric vehicle charging stations in Georgia. Customers pay for charging time, plus a session fee. Additional charges are imposed for "idli...
Expenses Of Producing Oil And Gas
June 30, 2020 - Bulletin Print Report
A person's taxable income under the Michigan Income Tax Act, ("MITA") is generally based on the federally adjusted income tax. Sec. 162 of the Internal Revenue Co...
Disability Benefits Are New York Source Income
June 30, 2020 - Volume 14 Issue 125 Print Report
Petitioner, (P), was at all timesa resident of New Jersey. From 1998-2010, P worked for a corporation, (C), that had locations throughout the world, including N...
Failure To File Escheat Reports Is Not "A False Record Or Statement"
June 30, 2020 - Bulletin Print Report
Delaware, ("D") requires the holders of abandoned property to file annual escheat reports with the "SE" and pay or deliver to the SE the abandoned property...
ABC Found To Be An "Interstate Broadcaster"
June 30, 2020 - Bulletin Print Report
Plaintiff, ("P"), is a diversified worldwide entertainment company with operations in five business segments: (1) Media Networks, (2) Parks and Resorts, (3) Studio En...
"Superseding" Return Does Not Restart The Limitations Period
June 29, 2020 - Bulletin Print Report
When a return is filed and then a second return is subsequently filed before the return due date (i.e., a superseding return), which return constitutes "the return" f...
Rewritten Sales Eligible For Sales Tax Holiday
June 29, 2020 - Bulletin Print Report
In 2010-2012, the Massachusetts Legislature passed legislation creating sales tax holiday weekends, such that sales of personal property costing $2,500 or less were exempt from...
Without Restoration There Can Be No Rescission
June 29, 2020 - Bulletin Print Report
In 1998, petitioners reorganized their business. Prior to that year, petitioners were the owners and operators of a group of corporations and limited liability companies known...
Taxpayer Denied Real Property Tax Credits
June 29, 2020 - Volume 14 Issue 124 Print Report
In April, 2000, a New York limited liability company, known as WL, was formed. Petitioners were partners of WL. The Division of Taxation ("Division") certif...
Bayer And Monsanto Resolve Most Litigation Regarding Roundup
June 26, 2020 - Bulletin Print Report
Bayer, presumably on behalf of its subsidiary, Monsanto, announced a series of agreements "that will substantially resolve major outstanding Monsanto litigation, including...
The Willens Deal Survey June 2020
June 26, 2020 - The Deal Survey: June 2020 Print Report
Welcome to our summary of deals for June 2020. 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.
Personal Or Individual Information Service Not Subject To Sales Tax
June 26, 2020 - Bulletin Print Report
P's customers are businesses that advertise on the internet. Typically, a business that advertises on the internet must monitor the effectiveness and performance of its adv...
Royalties Or Fees For Services?
June 26, 2020 - Volume 14 Issue 123 Print Report
The organization is exempt from Federal income tax under Sec. 501(c)(3) of the Internal Revenue Code. It was formed to promote scientific investigation and research a...
"Equitable Tolling" Does Not Apply To Tax Refund Claims
June 25, 2020 - Bulletin Print Report
On February 5, 2020, TPsfiled their 2016 non-resident Alabama income tax return. The return claimed a refund of tax paid by estimated payment in 2016. The original due da...
Law Firm Entitled To Opportunity Zone Benefits
June 25, 2020 - Bulletin Print Report
D, a law firm, leases space from B, a REIT, in the CC in Philadelphia. CC is an office complex within a now expired KOIZ ("Expired Zone"). D received tax benefits und...
TMUS's Rights Offering Has Unusual Tax Profile
June 25, 2020 - Bulletin Print Report
SoftBank Group Corporation, ("SB"), the owner of approximately 24.6 percent of the stock of T-Mobile U.S., Inc., ("TMUS"), is embarking on a program to &quo...
Ascertaining The Useful Life Of A Baseball Player's Contract
June 25, 2020 - Volume 14 Issue 122 Print Report
TP operates a professional baseball team. TP is affiliated with several minor league teams. Two of these teams are included on TP's tax return. The other affiliat...
Dell Pondering Spin-Off Of VMware
June 24, 2020 - Bulletin Print Report
The Wall Street Journal is reporting that Dell Technologies, Inc., ("DTI"), "is exploring options, including a spin-off, for its stake in VMwa...
When Is Solar Energy Equipment Placed In Service?
June 24, 2020 - Volume 14 Issue 121 Print Report
Petitioner has several clients that are currently building new homes and are purchasing and installing qualified eligible solar energy systems for these homes at the...
An Easement's Conservation Purpose Was Not Adequately Protected
June 24, 2020 - Bulletin Print Report
H granted a conservation easement over 257 acres to C, through a deed of conservation easement. The deed provides for the allocation of proceeds from an involuntary extinguishm...
Lack Of Employees Means No "Payroll Factor"
June 24, 2020 - Bulletin Print Report
The three taxpayers are affiliates under the parent corporation,FNIS, (the "Parent"). All operate in Alabama and numerous other states. FISMprovides servi...
Golf Club Dues Subject To Sales Tax
June 23, 2020 - Bulletin Print Report
The Club is a for-profit entity owned by member-stockholders and organized to promote golf. The Club owns a building that is used as a combination pro shop, club storage, and c...
Supreme Court Will Not Wade Into The "Altera" Quagmire
June 23, 2020 - Bulletin Print Report
Sec. 482 of the Internal Revenue Code grants the Secretary (of the Treasury) broad powers to allocate income and deductions between two or more organizations, trades, or busine...
Repetitive Audits Are Not Permitted
June 23, 2020 - Bulletin Print Report
TP purchased a vineyard. A notice of proposed adjustment, ("NOPA"), was issued to TP disallowing all expenses and depreciation related to the vineyard. The NOPA deter...
Maker of Countertops Eligible for New York ITC
June 23, 2020 - Volume 14 Issue 120 Print Report
Petitioner, (P), is a New York 'S' corporation that operates a granite and marble business. P purchases raw slabs of marble and granite and prepares those mat...
Existing Leasehold Interest Not Subject to S.F. Transfer Tax
June 22, 2020 - Bulletin Print Report
In 2009, 731 Market Street Owner, LLC, ("731"), the owner of a commercial building leased part of the building to CVS for 20 years plus five successive options to ext...
New York Non-Resident Limited Partners Unfairly Denied Loss Deductions
June 22, 2020 - Bulletin Print Report
While a New York "resident individual" (including both a New York domiciliary as well as a "statutory" resident) is taxed on his or her "worldwide"...
Deposit Arrangement Is Not "Insurance"
June 22, 2020 - Volume 14 Issue 119 Print Report
The taxpayer, (FW), is a consolidated group of corporations that provide temporary staffing services. FW purchased two insurance policies from AHAC; one was for worke...
A Specific Provision Defeats A General Provision
June 19, 2020 - Bulletin Print Report
T sells and leases "reverse-vending machines," the bottle and can recycling machines commonly found in grocery stores. The machines sort the bottles and cans, which a...
Sec. 381 Transferee Inherits Transferor's Sec. 707 Status
June 19, 2020 - Volume 14 Issue 118 Print Report
P owns all of the stock of S. S has only one asset, rental property, that is encumbered by a nonrecourse loan of $40x originally incurred by S on January 1, 1995. S i...
Workers Found To Be "Independent Contractors"
June 18, 2020 - Bulletin Print Report
P owned and operated CC, an unincorporated business, to provide cleaning services. CC had contracts with apartment complexes to do "Unit Turnover Cleaning," and contr...
Loss On Liquidation Not Derived From New York Sources
June 18, 2020 - Bulletin Print Report
P is a limited partnership formed under the laws of another state as an affiliated investment entity of a national real estate investor and investment manager. P was formed to...
"Frozen" Earnings and Profits
June 18, 2020 - Volume 14 Issue 117 Print Report
Distributions by an 'S' corporation which has accumulated earnings and profits constitute dividends (up to the amount of such earnings and profits) in cases w...
Hertz's NOLs Might Be Imperiled By Its Planned Public Offering
June 17, 2020 - Bulletin Print Report
On May 22, 2020, Hertz Global Holdings and several of its affiliates, (the "Debtors"), filed voluntary petitions for relief Chapter 11 of the Bankruptcy Code. The Deb...
G.M.'s Tax Credits Need Not Be Disclosed
June 17, 2020 - Bulletin Print Report
In 1995, the Michigan Legislature enacted the Michigan Economic Growth Authority, ("MEGA"), Act...to promote economic growth and job creation within the state. The ME...
Real Property Used In The Trade Or Business
June 17, 2020 - Volume 14 Issue 116 Print Report
Petitioner is engaged in the business of distributing tobacco products in North and South Carolina on a wholesale basis. It was incorporated in 1917. At that time, it...
Self-Created Intangible Asset Eligible For Amortization
June 17, 2020 - Bulletin Print Report
TP is a holding company. TP owns P1. P1 is regulated by C1 and C2. On Date 1, State enacted the Act to address the Event in State and the liabilities of the Companies, includin...
Trust Assets Included In Calculation Of Inheritance Tax
June 16, 2020 - Bulletin Print Report
Decedent created an irrevocable trust in June 2007 funded with cash and securities. He relinquished the right to "alter, amend, revoke or terminate any Trust provision or...
Foreign GP Was Doing Business In California
June 16, 2020 - Bulletin Print Report
APP is a Washington corporation. APP did not file a timely California return for its 2011 tax year. APP was the sole general partner in two limited partnerships in California,...
Percentage Rents Constitute Qualifying REIT Income
June 16, 2020 - Volume 14 Issue 115 Print Report
An unincorporated trust, otherwise qualifying as a real estate investment trust, (REIT), under Sec. 856 of the Internal Revenue Code, leases space to a tenant in a bu...
Sec. 481 Adjustment Properly Excluded From REIT's Gross Income
June 15, 2020 - Bulletin Print Report
Taxpayer, ("TP"), has elected to be taxed as a real estate investment trust,('REIT"). TP's primary business is the leasing of space on and at telec...
JET Wins The GRUB Sweepstakes
June 15, 2020 - Bulletin Print Report
On June 10, 2020,Just Eat Takeaway.com N.V., ("JET"), entered into an Agreement and Plan of Merger between and amongJET, Grubhub, Inc., ("GRUB")...
Coins Are Property (Other Than Money)
June 15, 2020 - Volume 14 Issue 114 Print Report
L owned and operated a sole proprietorship, PO, whose business was to trade such items as gold and silver coins, diamonds, jewelry and oriental rugs....
I.R.S. Defines "Real Property" For Like Kind Exchange Purposes
June 12, 2020 - Bulletin Print Report
Thanks to the TCJA, Public Law 115-97, the "like kind" exchange provisionswere substantially narrowed. Only qualifying exchanges of "real property" ar...
Training and Consulting Services Create "Nexus"
June 12, 2020 - Volume 14 Issue 113 Print Report
TP, an entity headquartered outside Virginia, has an employee located in Virginia. The employee will travel to consult with customers in the U.S. The consulting servi...
Unilever To Simplify Its Corporate Structure
June 11, 2020 - Bulletin Print Report
Unilever announced plans to unify "its Group legal structure under a single parent company, Unilever PLC, creating a simpler company with greater strategic flexibility, th...
TCO's Damages (If Any) Will Not Jeopardize REIT Status
June 11, 2020 - Bulletin Print Report
Simon Property Group, Inc. ("SPG"), announced that it has exercised its contractual rights to terminate its merger agreement with Taubman Centers, Inc., ("TCO&qu...
Refund Not Found To Be A "Rebate"
June 11, 2020 - Bulletin Print Report
1. On October 3, 2018, S purchased a 2018 Tesla. 2. The net purchase price was $70,200. 3. On October 29, 2018, S titled the Tesla and paid $5,355 in sales tax. 4. Subsequent t...
Plan of Liquidation
June 11, 2020 - Volume 14 Issue 112 Print Report
The issue is whether the taxpayer, SCI, a corporation, received the property of its wholly-owned subsidiary, FG, in a tax-free liquidation. The answer was yes. See
Poorly Structured U.K. Buyout Leads To Double Taxation
June 10, 2020 - Bulletin Print Report
In the United States, the buyer(s) of a closely-held corporation will frequently,in what is sometimesreferred to as a "bootstrap" acquisition, decide to&n...
Capital Of SMLLC Included In Member's Tax Base
June 10, 2020 - Bulletin Print Report
W is a Delaware corporation with several subsidiary companies doing business in Mississippi, ("M"), including single member limited liability companies, ("SMLLCs...
"Care" Days Spent In New York Count For Residency Purposes
June 10, 2020 - Volume 14 Issue 111 Print Report
Petitioners have been married since 1976. They own a one-family house in Pennsylvania. In 2006, petitioners filed Pennsylvania and federal income tax returns. Petitio...
Electronic Gaming Devices Found Subject To The "A&A Tax"
June 10, 2020 - Bulletin Print Report
This appeal concerns electronic gaming devices placed by C in various bars, restaurants, and convenience stores throughout Baltimore. A 2010 audit showed that C had not paid &q...
Percentage Rent Does Not "Taint" Fixed Rent
June 9, 2020 - Volume 14 Issue 110 Print Report
A real estate investment trust, (REIT), leased office space in a building that it owned to 10 different tenants under 10 separate leases, with nine ofsuch tenan...
Donor's Reticence Dooms Donee's Gift Claim
June 9, 2020 - Bulletin Print Report
Throughout his career, P has worked extensively in the discounted cash flow industry. In the early '90s, P met and developed a business relationship with DH, a high net wor...
Auxiliary Soil And Plant Substances Are Not "Fertilizers"
June 9, 2020 - Bulletin Print Report
Appellants, ("APPS"), sold Grow-Plex, ("GP"), and Menefee Humate, ("MH"), to consumers. APPS' customers applied these products to land use for...
Kraft Denied Use Of Alternative Apportionment Formula
June 8, 2020 - Bulletin Print Report
On March 1, 2010, Kraft Foods Group, ("K"), sold its entire frozen pizza business to Nestle USA, Inc.for $3.693 billion. On its federal consolidated income tax...
Super Bowl Champs Not Liable For Sales Or Use Tax
June 8, 2020 - Bulletin Print Report
The "team" is a professional football club and member of the N.F.L. The team is the defending Super Bowl champions.The team plays its home games at Arrowhead St...
"Inbound" Reorganizations Produce Deemed Dividends
June 8, 2020 - Volume 14 Issue 109 Print Report
Oldco, (O), was incorporated under the laws of Country on Date 1. Trust 1 and Trust 2 were the owners of O. On Date 2, Trust 1 and Trust 2 were domesticated as trusts...
Petitioner Never Incurred "Acquisition Indebtedness"
June 5, 2020 - Bulletin Print Report
P is a C.P.A. and holds an M.B.A. For many years, he has been friends with R. In 1991, R purchased as his residence a beach house in Hermosa Beach, California, (the "Hermo...
"Used In The Trade Or Business"
June 5, 2020 - Volume 14 Issue 108 Print Report
Petitioner, (P), was primarily engaged in business as an architect. During 1957, P ownedsixrental business properties which were eachpurchased, impr...
No Reduction Of Depletion Deductions Required
June 4, 2020 - Bulletin Print Report
APP is a JV that owns and operates a taconite mine in Minnesota. UT, (and together with APP, "APPS"), is a limited liability company that owns and operates a taconite...
Transfer Of Property Was "Incident To Divorce"
June 4, 2020 - Bulletin Print Report
APP and D were married in 1984. In1988, APP loaned $1 million to 3-V Fasteners, Inc., ("3V"). APP's loan was later converted into a capital contribution in...
Interest On Valid Debt Not Deductible
June 4, 2020 - Volume 14 Issue 107 Print Report
The deductions at issue arise out of an illegitimate tax shelter. An individual would borrow a sum of money and use it to buy gold. He would simultaneously enter into...
Transfer Of Property To Grantor Trust Did Not Produce Losses
June 3, 2020 - Bulletin Print Report
S owned IDG, an 'S' corporation in the business of buying land and developing it into finished lots. By 2007, IDG had acquired three parcels of real property, V, P, and...
The "Boot" Went In The Wrong Direction
June 3, 2020 - Bulletin Print Report
LTR 201948001, August 30, 2019, describes a rather garden variety"leveraged" spin-off which the I.R.S. later determined, well after the ruling was issued, was a...
Property Not Used In a Trade Or Business
June 3, 2020 - Volume 14 Issue 106 Print Report
Prior to 1967, each petitioner had been a shareholder in R, which was activelyengaged in the business of owning and operating a motel-restaurant and cocktail lo...
Income From a Limited Partnership Interest Is UBTI
June 2, 2020 - Volume 14 Issue 105 Print Report
The taxpayers were established as profit sharing trusts qualified under Sec. 401(a) by SBNC, SBNA, and SBNP. On July 1, 1974,...
Retroactive Tax Provision Violates Due Process Clauses
June 2, 2020 - Bulletin Print Report
P was a non-resident of New York during 2009-2011. Prior to July 31, 2009, P owned 50 percent of the shares of ESPI, a New York domestic corporation that had in place a valid e...
Pension Plan Participants Cannot Sue For Breach Of Fiduciary Duties
June 2, 2020 - Bulletin Print Report
Plaintiffs are retired participants in U.S. Bank's retirement plan. The plan is a defined-benefit plan, not a defined-contribution plan. In a defined-benefit plan, retirees...
Scheme To Elongate Holding Period Fails
June 1, 2020 - Bulletin Print Report
Various provisions of the Internal Revenue Code provide favorable treatment when taxpayers dispose of capital assets with holding periods that exceed designated periods of time...
Gain From Sale Of Passive Investment Not "Business Income"
June 1, 2020 - Bulletin Print Report
In 1993, MN incorporated NI in Virginia to develop and sell combat and tactical gear. In 2003, NI transferred its assets to B, a limited liability company, in exchange for a 78...
Lack Of "Reasonable Prospect Of Recovery" Proven
June 1, 2020 - Bulletin Print Report
In September 1997, the As began investing in securities with OK. In late 1999, the As opened investment accounts at D. D was operating a "pump and dump" scheme. To me...
Accounting For a Bargain Sale of Property To a Charity
June 1, 2020 - Volume 14 Issue 104 Print Report
During the taxable year, an individual taxpayerconveyed unimproved real property subject to an outstanding mortgage in the amount of $10x to an organization des...
Altaba's Liability Reserves
May 29, 2020 - Bulletin Print Report
In Altaba's"Petition for Determination," recently filed with the Delaware Chancery Court, in which the companyenumerates the various actual and contin...
TUP Seeks To Retire Notes At A Steep Discount To Their Principal Amount
May 29, 2020 - Bulletin Print Report
Tupperware Brands Corporation, ("TUP"), recently announced the commencement of an offer, (the "Tender Offer"), to purchase, for cash, up to $175 million agg...
Litigation Support Agreements Did Not Give Rise To Loans
May 29, 2020 - Bulletin Print Report
Petitioner, ("P"), practiced law in Chicago with a focus on class action litigation. He executed "litigation support agreements." Under these agreements, th...
Electricity Is Tangible Personal Property
May 29, 2020 - Bulletin Print Report
Taxpayer, ("TP"), owns and operates electric vehicle charging stations. Customers pay for charging time, plus a $1.00 session fee. Additional charges are applied ...
Accelerating a Sec. 481 Adjustment
May 29, 2020 - Volume 14 Issue 103 Print Report
PRS, a partnership, commenced business in 1965 and established two separate businesses, a "P" business and a "T" business. &...
The Willens Deal Survey May 2020
May 28, 2020 - The Deal Survey: May 2020 Print Report
Welcome to our summary of deals for May 2020. 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.
Below Market Sale Does Not Give Rise To a Deduction
May 28, 2020 - Volume 14 Issue 102 Print Report
Fischer, (F),was the president and a member of the board of directors of Medalists Industries, Inc., (M).He owned 12,015 shares of M's common stock an...
Development Fees Not A Reliable Indicator Of Cost
May 28, 2020 - Bulletin Print Report
Sec. 1603 of the American Recovery and Reinvestment Tax Act of 2009, ("ARRA"), requires the Secretary of the Treasury to provide a grant to each person who places in...
Tax Allocation Agreement Created An Agency Relationship For Refunds
May 27, 2020 - Bulletin Print Report
This matter is before the court upon remand from the Supreme Court. Two entities claim ownership of the federal tax refund that is at the heart of this case. The first is UWBI,...
Royalties Are Excluded From UBTI
May 27, 2020 - Volume 14 Issue 101 Print Report
The organization is exempt from tax under Sec. 501(c)(3). Its purposes are to improve the economic and working conditions of its members, all ofwhom are profess...
Lessee Was The Owner Of Leasehold Improvements
May 27, 2020 - Bulletin Print Report
The County owns and leases land to the Airport Authority to operate the Sedona (Arizona) Airport. In 1982, the Airport Authority subleased several acres to Sky Ranch to build a...
South Carolina Discriminates Against Railroads
May 26, 2020 - Bulletin Print Report
Congress enacted the "4-R" Act to "restore the financial stability of the railway system of the United States," and sought to achieve this goal by targeting...
Extracting Cash In Connection With a Spin-Off
May 26, 2020 - Volume 14 Issue 100 Print Report
D is a State A corporation and is the common parent of an affiliated group of corporations that join in the filing of a consolidated income tax return (the "D Gr...
Property Used As A Daycare Center Not Exempt From Tax
May 22, 2020 - Bulletin Print Report
Defendantappeals from the circuit court's order reversing the Department's decision that plaintiffs, the University of Chicago, ("UC"), and Bright Horiz...
Detroit Has Adopted An Origin Test For Services
May 22, 2020 - Bulletin Print Report
H is a law firm that operates offices within and outside Detroit. Each year H apportions its net profit using a three-factor formula, known as the "business allocation per...
Computing Impermissible Tenant Service Income
May 22, 2020 - Volume 14 Issue 99 Print Report
Y, a real estate investment trust, (REIT), owns a high rise apartment building, Building P. Building Pcontains 100 apartments, of which 95 are standard, unfurni...
Exemption From Tax Not Fixed On The Valuation Date
May 21, 2020 - Volume 14 Issue 98 Print Report
Until March 4, 2011, the land occupied by the Arizona Center was owned by the City of Phoenix, and therefore was covered by the constitutional exemption from taxation...
Involuntary Conversion Not A "Sale"
May 21, 2020 - Bulletin Print Report
On May 14, 2018, Mr. E purchased a 2018 Chevrolet Malibu, ("Chevy"). On October 5, 2019, Mr. E purchased a 2019 Ram Truck, ("Truck"). On October 31, 2019, M...
FBAR Penalties Need Not Run The Gauntlet Of The Eighth Amendment
May 20, 2020 - Bulletin Print Report
The statute at issue in this case states as follows: "In the case of any person willfully violating...any provision of Sec. 5314---the maximum penalty...shall be increased...
Stock of Former 'S' Corporation Eligible for Sec. 1042
May 20, 2020 - Volume 14 Issue 97 Print Report
Company, (C), has never had any stock outstanding that was "readily tradable on an established securities market". TP has owned all of the outstanding stock...
Coupons Can Reduce The Purchase Price Of Taxable Items
May 20, 2020 - Bulletin Print Report
On June 24, 2015, TP filed a petition with the BOA requesting a refund of sales tax paid on purchases made at BJ's Wholesale Club, ("BJ's"), with coupons. BOA...
An Estate Is Not an Individual
May 19, 2020 - Volume 14 Issue 96 Print Report
The decedent died testate on July 4, 1955. Included in her gross estate were 2,500 shares of stock of LBC, Inc., (LBC); the remaining stock was owned by the decedent&...
TRS Can Render Tenant Services
May 19, 2020 - Bulletin Print Report
TP is a REIT. TP's business consists of the acquisition, financing, and owning of real property to be leased to third-party tenants in the healthcare sector. TP primarily i...
PNC's Contribution To Reducing The Nation's Deficit
May 18, 2020 - Bulletin Print Report
PNC Financial Services Group, Inc., ("PNC"), owned nearly 35 million shares of the capital stock of BlackRock, Inc., ("BR") for a considerable period of tim...
IPO Costs Are Netted Against The Proceeds Therefrom
May 18, 2020 - Bulletin Print Report
In Year 1, TP was a privately-held corporation. In Year 2, TP began planning an IPO and completed the offering and became a publicly traded company. TP incurred a number of cos...
Equitable Tolling Doctrine Does Not Apply to Sec. 6511
May 18, 2020 - Volume 14 Issue 95 Print Report
In each case, a taxpayer paid the I.R.S. several thousand dollars that he did not owe. In each case, the taxpayer filed an administrative claim for refund several yea...
Liberty Media Is Distributing "Bargain" Rights
May 15, 2020 - Bulletin Print Report
Liberty Media Corporation, ("LMC"),in order to raise funds with which to repay a loan, is hopingto raise thosefunds from its shareholders. In partic...
Trust Formed By New York Grantor Is A "Resident Trust"
May 15, 2020 - Bulletin Print Report
Trust, ("T"), is an irrevocable, non-grantor trust that was established by G for the benefit of G's descendants, some are which are domiciled in New York. G was d...
Decline In Conversion Ratio Does Not Precipitate "Deemed Distribution"
May 15, 2020 - Volume 14 Issue 94 Print Report
Company, (C), has outstanding "x" shares of Common Stock and "y" shares of Preferred Stock. The Preferred Stock pays a per share dividend substant...
Storage Of Aircraft Does Not Constitute Use Or Consumption
May 15, 2020 - Bulletin Print Report
AL is a certificated air carrier engaged in the business of transporting passengers and cargo within the U.S. and throughout the world. As a result of the COVID-19 pandemic and...
"Available" Deduction Is An "Allowable" Deduction
May 14, 2020 - Volume 14 Issue 93 Print Report
Prior to 1978, petitioners purchased land in San Bernardino, California. During 1978 and 1979, they caused seven one-story office buildings to be constructed on the p...
Express Allocation In Settlement Agreement Governs Taxation
May 14, 2020 - Bulletin Print Report
NCA is a real estate development and investment firm. DZ owned NCA. DZ worked with DN and RC to find properties to develop in the Los Angeles area. In 2005, they connected with...
Exempt Property Can Offset Pre-Petition Debt
May 14, 2020 - Bulletin Print Report
On May 29, 2014, the Cs filed a bankruptcy petition under Chapter 7 of the bankruptcy code. In their petition, the Cs listed the I.R.S. as a priority creditor, and identified p...
I.R.S. Issues Proposed Regulations Regarding Fines And Penalties
May 13, 2020 - Bulletin Print Report
In an effort to implement the changes enacted by the TCJA to the Internal RevenueCode (see Sec. 162(f)) regarding the deductibility of "fines, penalties, and other a...
Sec. 351 Transaction Can Terminate A Partnership
May 13, 2020 - Volume 14 Issue 92 Print Report
S, a corporation, is wholly owned by a taxpayer. The taxpayer also owned a 50 percent interest in the capital and profits of PYZ, a partnership.  ...
Electricity Generator Was A "Qualified NY Manufacturer"
May 13, 2020 - Bulletin Print Report
Petitioner, ("P"), a Delaware corporation, provides wholesale energy through its wholly owned limited liability companies, R and C. P acquired R on August 26,2008 fro...
"At The Time Of The Transfer" Means Just That
May 13, 2020 - Bulletin Print Report
Ohio employers are required to pay into the state's unemployment compensation fund. An employer's annual unemployment-contribution rate is based in part on the amount o...
"Financial Disability" Not Shown To Exist
May 12, 2020 - Volume 14 Issue 91 Print Report
R seeks a refund of federal income tax. He filed his 2005 tax return and paid taxes for that year on April 15, 2006. On June 28, 2010, after realizing the alternative...
Merger Involving Only Foreign Corporations Can Be An 'A' Reorganization
May 12, 2020 - Bulletin Print Report
On May 11, 2020, SSR Mining, Inc., ("SSRM"), and Alacer Gold Corporation, ("ASR"), announced that they have entered into a definitive agreement to combine &...
Income From Receipt Of Carbon Credits Excluded From Gross Receipts
May 12, 2020 - Bulletin Print Report
TP is exempt from tax under Sec. 501(c)(7) of the Code. It owns acres...in which its members hike, hunt, and fish. State enacted a statute that sets limits on greenhouse gas em...
Split-Off Preceded By Equity-For-Debt-Exchange
May 11, 2020 - Bulletin Print Report
Prior to the proposed transaction, which is Danaher Corporation's split-off of Envista Holdings Corporation, "D" and its subsidiaries will be engaged in the D Bus...
The "TMT" Is Not A Creditable Tax
May 11, 2020 - Bulletin Print Report
APP was a partner with KPMG, an accounting firm doing business in multiple states. Because KPMG did business in multiple states, KPMG partners owed taxes in those states based...
Withdrawal From A Partnership
May 11, 2020 - Volume 14 Issue 90 Print Report
L is a limited partner in partnership GL to which he contributed $10,000 in cash upon its formation. His distributive share of partnership items of income and loss is...
The "BPOL" Tax Is A Tax On Internet Access
May 8, 2020 - Bulletin Print Report
The issues to be decided are (1) whether Virginia's "BPOL" tax is a tax on internet access, making it preempted by the Internet Tax Freedom Act, ("ITFA"...
How Do NOLs Fare In Bankruptcy?
May 8, 2020 - Bulletin Print Report
Several prominent retailers have already filed for bankruptcy and the economic numbers are telling us that many more bankruptcy filings seeminevitable. There are usually...
Boot in a Sec. 351 Transaction
May 8, 2020 - Volume 14 Issue 89 Print Report
X Corporation, (X), operated its business in two separate divisions, (D1 and D2), keeping a separate bank account and a separate set of books for each division....
Positive "AAA" Prevents Dividend Income
May 7, 2020 - Bulletin Print Report
M corporation, ("M"),which was originally organized as a C corporation, made an 'S' election several years later. M has followed Sec. 168(k), allowing S...
Receipts From Texas Satellite Radio Subscribers Apportioned Thereto
May 7, 2020 - Bulletin Print Report
Texas imposes a franchise tax on each taxable entity that does business in this state. Generally, a taxable entity's franchise tax liability is calculated by first determin...
No Deduction For Donation of "Facade Easement"
May 7, 2020 - Volume 14 Issue 88 Print Report
In December, 2003, the taxpayer, (K), entered into an agreement with the National Architectural Trust, (NAT), pursuant to which K gave to NAT a facade easement
Tax Cuts & Jobs Act Does Not Disturb Closing Agreement
May 6, 2020 - Bulletin Print Report
In Year 1, S and other "Ws" of Product 1 executed Agreement A with the "Xs" to resolve claims by the Xs for...relief. Agreement A requires each W to remit a...
Coffee And Tea Brewers Were Used To Process "TPP"
May 6, 2020 - Bulletin Print Report
The Alabama legislature has imposed an excise tax on the...use...in this state of tangible personal property, ("TPP"), at the rate of four percent of the sales price...
Marijuana Purveyor Found To Be A "Reseller"
May 6, 2020 - Bulletin Print Report
In 2010, R obtained a license from the city of Richmond, California, ("RI"),to open a medical marijuana facility. During the years in issue, R operated a medica...
Contribution of a Partnership Interest
May 6, 2020 - Volume 14 Issue 87 Print Report
L became a limited partner in a partnership upon its formation in 1971. In 1974, he contributed his partnership interest to a charitable organization described in Sec...
I.R.S. Temporarily Reduces A REIT's "Cash Limitation Percentage"
May 5, 2020 - Bulletin Print Report
In recognition of the need "for enhancing liquidity during the current period of economic disruption," the I.R.S. has issued a revenue procedure, Rev. Proc. 2020-19,...
Physical Presence Required For Imposition of Premiums Tax
May 5, 2020 - Volume 14 Issue 86 Print Report
Prior to 2001, United Parcel Service, Inc., (UPS), included the income of UPINSCO and UPS Re on the affiliated group's Indiana corporate income tax return. In 200...
The FBAR Penalty Is Primarily Remedial
May 5, 2020 - Bulletin Print Report
In 1970, Congress enacted the Bank Secrecy Act, ("BSA"), in order to combat money laundering in the U.S. Pursuant to the BSA, U.S. "persons" are required to...
Theater Workers Found To Be Statutory Employees
May 5, 2020 - Bulletin Print Report
WPPis a non-profit off-Broadway theater company that produces plays written and directed by women. The Department of Labor concluded that WPP owed additional tax contribu...
Loral To Pay Special Dividend
May 4, 2020 - Bulletin Print Report
On April 30, 2020, Loral Space & Communications, Inc., ("L"), announced that its Board of Directors has declared a "special dividend" in the amount of $...
Receipts From F-16 Sales Are Not "Texas Gross Receipts"
May 4, 2020 - Bulletin Print Report
The Arms Export Control Act restricts sales of U.S.-manufactured military goods to foreign governments. Defense articles of greater military sensitivity, including the F-16 fig...
COD Income Can Arise From A "Significant Modification" Of Debt
May 4, 2020 - Bulletin Print Report
We have recently seen some prominent companies engage in acts that, unless ameliorativecorrective action is taken, could lead to a finding that they have "defaulted&...
Contingent Interest Is Good REIT Income
May 4, 2020 - Volume 14 Issue 85 Print Report
A REIT entered into a loan agreement with X. Under the agreement, X borrowed $4,500,000 from the REIT for a term of five years to be used solely to acquire 200 acres...
Book Seller's Club Membership Fees Subject To Sales Tax
May 1, 2020 - Bulletin Print Report
B operates a discount book retail business headquartered in Birmingham, Alabama. B sells books, magazines, collectible supplies, cards, and other gifts in retail stores through...
Expenses Funded By "Covered Loans" Not Deductible
May 1, 2020 - Bulletin Print Report
Easily the most controversial aspect of the CARES Act, (the "Act"), is the well-publicized Paycheck Protection Program, ("PPP"), which was enacted by Sec. 1...
Inadvertent Termination of 'S' Election
May 1, 2020 - Volume 14 Issue 84 Print Report
X was formed in State on Date 1. X made an election to be treated as an 'S' corporation, effective Date 1. X's ma...
Sign Support Components Constitute Tangible Personal Property
April 30, 2020 - Bulletin Print Report
TP designs, manufactures, and installs signs and building fascia used in facility branding. The Department's auditor assessed sales tax on TP's sale and installation of...
Ford's Isolated Recapitalization
April 30, 2020 - Volume 14 Issue 83 Print Report
Corporation, (C), which is Ford Motor Company, is primarily engaged in Business A. C has two classes of stock, Class A Common Stock and Class B Common Stock. The Clas...
The Willens Deal Survey April 2020
April 29, 2020 - The Deal Survey: April 2020 Print Report
Welcome to our summary of deals for April 2020. 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 Government's "Risk Corridor" Obligations Must Be Satisfied
April 29, 2020 - Bulletin Print Report
In 2010, Congress passed the Patient Protection and Affordable Care Act, ("ACA"). The ACA called for the creation of "Health Benefit Exchanges" in each Stat...
Structural Components As Real Property
April 29, 2020 - Volume 14 Issue 82 Print Report
An unincorporated trust, otherwise qualifying as a real estate investment trust,(REIT), plans to invest in obligations secured by mortgages on real property, in...
Partnership Distributions Found To Be "Dividends"
April 29, 2020 - Bulletin Print Report
Deere & Company, ("D"), is the sole member of the limited liability company, JDH-US. D and JDH-US formed the partnership, JDH-Lux. The Partnership Agreement named...
Will Loews Wreak Havoc On Diamond Offshore's NOLs?
April 28, 2020 - Bulletin Print Report
On April 26, 2020, Loews Corporation's, ("LC"), 53 percent owned subsidiary, Diamond Offshore Drilling, Inc., ("DOD") (and certain of DOD'ssub...
Exchanging Timberlands
April 28, 2020 - Volume 14 Issue 81 Print Report
TP owned 50 acres of timberland in fee which he held for investment purposes. Over the previous ten years TP had sold most of the merchantable timber growing on its l...
Rental Property Not Used Primarily For "Commercial" Purposes
April 28, 2020 - Bulletin Print Report
Plaintiffs each purchased property in a Chicago enterprise zone with the intent to continue operating it as affordable housing under section 8 of the United States Housing Act...
Installment Sale Gain Escapes Virginia Taxation
April 27, 2020 - Bulletin Print Report
TP is a Virginia, ("V"), resident who owns stock in an 'S' corporation that apportions approximately 10 percent of its income to V. TP intends to sell all of...
Bank Denied NOL Deduction
April 27, 2020 - Bulletin Print Report
In 2010, NBSC merged with CBT and was renamed SynovusBank, ("P"). CBT reported net operating losses, ("NOLs") for 2009; NBSCreported NOLs for 20...
Bona Fide Losses Are Deductible
April 27, 2020 - Volume 14 Issue 80 Print Report
The question is whether trusts may recognize capital losses generated by stock sales between themselves. The answer is yes. See Widener et al. v. Commissioner
Assessing The Tax Treatment Of Payments To CT Homeowners
April 24, 2020 - Bulletin Print Report
In August 2015, agencies of the State of Connecticut, ("CT"),began investigating complaints by homeowners concerning the premature deterioration of the concrete...
NOL Provisions Of The "CARES" Act
April 24, 2020 - Bulletin Print Report
We are expecting numerous corporations to sustain net operating losses, ("NOLs"), in 2020 for obvious reasons. An NOL arises when a corporation's allowable deduct...
Sec. 1031(f)(4) Denies Taxpayer Nonrecognition Treatment
April 24, 2020 - Volume 14 Issue 79 Print Report
A owns real property (P1) with a fair market value of $150x and an adjusted basis of $50x. B owns real property (P2) with a fair market value of $150x and an adjusted...
Double Taxation Of Undistributed Capital Gains Of RICs
April 23, 2020 - Bulletin Print Report
The taxpayer, a regulated investment company, ("RIC"), for federal income tax purposes, requests a ruling regarding whether it is permitted to subtract its shareholde...
Pension Plan Imposed An "Active Service" Requirement
April 23, 2020 - Bulletin Print Report
The General Court of New Hampshire, ("legislature"), enacted the Plan as "a defined benefit plan providing disability, death, and retirement protection to member...
Daily Fantasy Sports Contests Are Not "Gambling"
April 23, 2020 - Bulletin Print Report
On April 4, 2016, DB filed a complaint against W. The complaint alleged that DB and W had engaged in a daily fantasy sports, ("DFS"), contest on a website known as Fa...
Retailers Denied Sales Tax Refunds
April 23, 2020 - Volume 14 Issue 78 Print Report
Plaintiffs, as retailers, entered into agreements with financing companies to issue "private label credit cards" (PLCC). When a customer makes a purchase wi...
Rent Free Use Of Railroad Track Not A Gift Of Public Funds
April 22, 2020 - Bulletin Print Report
During the Second World War, the War Department of the U.S. government used its eminent domain powers to acquire hundreds of square miles near the Columbia River (in the State...
Taxpayer Not Eligible For "Separation From Service" Exception
April 22, 2020 - Bulletin Print Report
Petitioner, ("P"), worked for R until 1987. He later worked for N until 1999. P has been "generally unemployed" since 2002, when he was 46 years of age. In...
I.R.S. Will "Reconsider" Liberal FTC Ruling
April 22, 2020 - Bulletin Print Report
The I.R.S. has decided to reconsider a revenue ruling it issued nearly 50 years ago regarding the limitations period for filing claims for refund (or credit) ofoverpaymen...
Timber Is "Part of the Land"
April 22, 2020 - Volume 14 Issue 77 Print Report
TP is an individual who was married to K. Together, they acquired substantial acreage in timberlands for investment. They divorced in Year 1, but continued holding th...
Conservation Purposes Not Protected "In Perpetuity"
April 21, 2020 - Bulletin Print Report
H owns the historic Tremaine Building in Cleveland, Ohio. H donated an easement in the facade of the building and certain airspace restrictions associated with the building to...
Governmental Grants Included In Gross Income
April 21, 2020 - Bulletin Print Report
TP is a municipal corporation formed under the laws of State. TP established Program. Program provides grants on behalf of eligible homeowners with adjusted gross inco...
Is Liberty TripAdvisor Holdings, Inc. Preparing To End Its Existence?
April 21, 2020 - Bulletin Print Report
Last week, amid unprecedented peregrinationsin its stock price, Liberty TripAdvisor Holdings, Inc. ("LTRPA") was forced to report that "it is not aware of...
When Is a Guarantee Fee "Incurred"
April 21, 2020 - Volume 14 Issue 76 Print Report
TP was formed as a limited liability partnership for the purpose of constructing and operating a residential housing project. In order for TP to receive a lower inter...
Energy Transfer L.P. Is Not An "Investment Company"
April 20, 2020 - Bulletin Print Report
X, which we believe is Energy Transfer L.P., is a publicly-traded partnership within the meaning of Sec. 7704(b) of the Code that is classified as a partnership for federal inc...
Solar Energy System Exempt From Property Tax
April 20, 2020 - Bulletin Print Report
The school district adopted a resolution to opt out of a tax exemption for the value of solar energy systems subsequently installed on real property within the school district....
When Does A Private Equity Business Begin?
April 20, 2020 - Bulletin Print Report
In 2007, PH formed GSEas a sole proprietorship. PH intended for GSEto operate as a holding company for insurance businesses he hoped to acquire and nurture. In late...
Depreciation Of Automobile Not Deductible
April 20, 2020 - Volume 14 Issue 75 Print Report
During 1974, JE was required to make 48 trips between his residence and his physician in order to receive needed medical treatment. In making these trips, JE and his...
Lawn Care Business Not Exempt From Use Tax
April 17, 2020 - Bulletin Print Report
Michigan's use tax exempts property consumed in the "tilling, planting, caring for or harvesting things of the soil..." The question presented is whether the Legi...
Property "Damaged" By COVID-19 Not Eligible For Texas Tax Exemption
April 17, 2020 - Bulletin Print Report
Sec. 11.35 of the Texas Tax Code, enactedin response to the physical damage Hurricane Harvey caused to property in the coastal region in 2017, creates...
Exhibiting At Trade Show Created Substantial Nexus
April 17, 2020 - Bulletin Print Report
TP is a California-based company that did not have any employees located in Washington until November 2012. In 2010, 2011, and 2012, however, TP sent employees to Seattle, ...
Disgorging E&P of an 'S' Corporation
April 17, 2020 - Volume 14 Issue 74 Print Report
C was incorporated in 1946 and its principal business activity is leasing improved real property. On December 29, 1986, C elected to be treated as an 'S' corp...
Berkshire Hathaway's Stock Dividends From OXY Will Be Taxable
April 16, 2020 - Bulletin Print Report
Berkshire Hathaway, as it is known to do, came to Occidental Petroleum's rescue in the latter's efforts to acquire AnadarkoPetroleum Corporation. Crucial funding...
University Basketball Games Escape Connecticut "Admission" Tax
April 16, 2020 - Volume 14 Issue 73 Print Report
The University (most likely the University of Connecticut, or UConn) is an entity exempt from federal income tax under Sec. 501(c)(3) of the Internal Revenue Code. Th...
Interest Paid On Appraisal Award Is Taxable As Such
April 16, 2020 - Bulletin Print Report
On August 22, 1997, SMC was merged into S, a privately-held Delaware corporation. At the time of the merger, G held 120,000 shares of the common stock of S. As a result of the...
Change In Method Of Accounting Invokes Sec. 481
April 16, 2020 - Bulletin Print Report
During 2012, petitioners owned and rented two real estate properties in Hawaii. They purchased the first property, ("BH"), in September 2003 for $1,600,000. They purc...
Baker Hughes Will Write-Off 75 Percent Of Its Goodwill Balance
April 15, 2020 - Bulletin Print Report
Baker Hughes, ("BKR"), in light of the "significant decline in oil and gas prices and the COVID-19 Pandemic," decided it could not wait until July 1st to pe...
Split-Off Preceded By Property Exchange
April 15, 2020 - Volume 14 Issue 72 Print Report
D has outstanding a single class of stock. A and B own all shares of D stock, each owning "a" shares. D is engaged in Business A and in Business B. <...
Lack Of Intent To Deceive Prevents Theft Loss Deduction
April 15, 2020 - Bulletin Print Report
On June 1, 2006, the Ss and MRSL closed the escrow for the "P" property. Shortly after moving into the P property, petitioners had problems with the well-water system...
Provider Of "VOIP" Services Required To Collect "E911" Tax
April 15, 2020 - Bulletin Print Report
TP is a foreign corporation with its commercial domicile in California. TP provides Voice over Internet Protocol, ("VOIP"), services. TP's VOIP equipment allows O...
Xperi And TiVo Have A Number Of Tax Hurdles To Surmount
April 14, 2020 - Bulletin Print Report
The merger of Xperi Corporation, ("XC"), with TiVo Corporation, ("TV"), seems to be on schedule with a second quarter closing anticipated. The merger is str...
Determining Sec. 304's "Value Test"
April 14, 2020 - Volume 14 Issue 71 Print Report
I owned all ofthe outstanding stock of Y. I and C, a person not related to I, together owned all of the outstanding stock of X. I owned the Class B stock (44 sh...
Purchases By Utility Of Electricity Subject To Sales Tax
April 14, 2020 - Bulletin Print Report
Petitioner, ("P"), is a New York public utility that provides telecommunication services to consumers nationwide. In November 2013 and August 2014, P applied for refu...
A Blog Is Not An "Other Publication"
April 14, 2020 - Bulletin Print Report
The City requests an advisory opinion regarding the exemption for newspapers, magazines, newsletters and other publications for purposes of the Business, Professional and Occup...
UBS Executive Denied Connecticut Resident Tax Credits
April 13, 2020 - Bulletin Print Report
MRC and MRSC, husband and wife, were domiciled in, and residents of, Connecticut, ("CT"), for the tax years 2005, 2007, and 2008. During the tax years, MRC, an execut...
Roof Replacement Expenses Must Be Capitalized
April 13, 2020 - Bulletin Print Report
Plaintiffs, ("Ps"), purchased the CD property, ("CDP"), on June 8, 1977 for $43,000. The CDP has a "steep roof" or a "steep pitch roof."...
Subordination Payments Are Rents From Real Property
April 13, 2020 - Volume 14 Issue 70 Print Report
An unincorporated trust, otherwise qualifying as a real estate investment trust, (REIT), under Sec. 856 of the Internal Revenue Code, acquired the fee interest only i...
Correction Instrument Not Effective To Eliminate Real Estate Transfer Tax
April 9, 2020 - Bulletin Print Report
S is a limited liability partnership. On January 12, 2016, an Electronic Real Estate Transfer Return, ("eRETR"), was filed reporting the December 29, 2015 conveyance...
Lottery Winnings Not Constructively Received
April 9, 2020 - Volume 14 Issue 69 Print Report
In 1989, J was employed as a clerk at Nigeria's New York City Consulate. After purchasing 12 $1 lottery tickets, he hit the jackpot, winning a grand total of $26,...
Substance Over Form Doctrine Informs Insolvency Determination
April 9, 2020 - Bulletin Print Report
MRH borrowed more than $150,000 to pay costs associated with medical school for his son. These loans were fully discharged in 2011. That same year, MRHreceived a non-taxa...
Child Contingency Turns Deductible Alimony Into Child Support
April 8, 2020 - Bulletin Print Report
Petitioner, ("P"), and his former spouse were married for 14 years and had four children together before they officially dissolved their marriage on April 19, 2010. T...
Taxpayer Eligible For Wholesale Sales Exemption From Use Tax
April 8, 2020 - Bulletin Print Report
PF purchases meals from a third party, HSG, without paying sales tax; provides the meals to its residents as a component of its nursing home services; and includes the cost of...
Real Estate Taxes Paid By Lessee Are Rents From Real Property
April 8, 2020 - Volume 14 Issue 68 Print Report
In its operations, an unincorporated trust, otherwise qualifying as a real estate investment trust, (REIT), purchased the land underlying an apartment complex and acq...
Environmental Credit Sales Give Rise To Business Income
April 8, 2020 - Bulletin Print Report
American Honda Motor Company, Inc., ("AH"), is the principal United Statessubsidiary of Honda Motor Co., a Japanese corporation. AH has a long-standing traditio...
UTX And RTN Have Combined To Form RTX
April 7, 2020 - Bulletin Print Report
On Friday, April 3, 2020, Raytheon Technologies Corporation, ("RTX"), was born. RTX is the product of the highly touted "merger of equals" transaction in wh...
Repurchasing Escrowed Stock
April 7, 2020 - Volume 14 Issue 67 Print Report
Under a plan of reorganization, Y Corporation, (Y), acquired all ofthe properties of X Corporation, (X), solely in exchange for 40,000 shares of voting common s...
Film Exhibition Costs Are Not "Cost Of Goods Sold"
April 7, 2020 - Bulletin Print Report
Since 1893, the State of Texas has imposed a franchise tax on most domestic and foreign corporations operating in this State. Determining a taxable entity's franchise tax l...
Rental Fees Are Not Tax-Exempt "Demurrage"
April 7, 2020 - Bulletin Print Report
Airgas, ("AG"), sells industrial, medical, and welding gases. Its customers take delivery of the gases in steel cylinders that AG owns. AG charges a rental fee of 12...
The "SRP" Is Not An "Excise Tax On A Transaction"
April 6, 2020 - Bulletin Print Report
Debtor, ("D"), filed a voluntary petition for relief under Chapter 13 of the U.S. Bankruptcy Code on August 12, 2019. The I.R.S. filed a proof of claim, ("Claim&...
Undistributed 'S' Corporation Income Is Not Debt
April 6, 2020 - Bulletin Print Report
Atek was an 'S' corporation formed in 1996 by AT and EK. Atek was a construction company. In 2002, AT gave 10 percent of his stock to MT. For tax years 2002 and 2003, A...
Lawsuit Settlement Agreements Are Binding Contracts
April 6, 2020 - Bulletin Print Report
D appealed the local property tax assessments on his commercial properties. On February 21, 2019, the parties entered into a stipulation of settlement reducing saidassess...
When Is Cosmetic Surgery Medical Care?
April 6, 2020 - Volume 14 Issue 66 Print Report
TPA undergoes mastectomy surgery that removes a breast as part of treatment for cancer and pays a surgeon to reconstruct the breast.  ...
Investment Adviser Relegated To Place Of Performance Sourcing
April 3, 2020 - Bulletin Print Report
P is incorporated under the laws of New York. P is a wholly owned subsidiary of BTG S.A. BTG S.A. is a wholly owned subsidiary of BSA. P is the sole member of US BD and US AM....
Tardy Taxpayer Denied Adoption Tax Credit
April 3, 2020 - Bulletin Print Report
S's adoption of her son, a child with "special needs," was finalized in 2003, but S did not claim a credit for "qualified adoption expenses" for the 200...
Calculating a REIT's NOL
April 3, 2020 - Volume 14 Issue 65 Print Report
TP is a REIT. For its taxable year ended Date 2, TP had a net capital gain of approximately "$a." For the same taxable year, TP generated a net operating lo...
T-Mobile And Sprint Complete Their Business Combination
April 2, 2020 - Bulletin Print Report
Ironically, April 1, 2010 is now officially the date on which the long-awaited, and seemingly doomed, business combination of T-Mobile US, Inc., ("T"), and Sprint Cor...
MSG Board Approves Spin-Off
April 2, 2020 - Bulletin Print Report
On March 31, 2020, the Board of Directors of Madison Square Garden, Inc., ("Registrant"), approved the distribution to its shareholders of the common stock of a newly...
Real Estate Partnership Is Not An Exempt "Investment Partnership"
April 2, 2020 - Bulletin Print Report
1. Partnership, ("PS"), is a Limited Partnership owned by six limited partners. 2. PS owns real estate in North Carolina, ("NC"). 3. One of the partners res...
Services Did Not "Taint" Otherwise Qualifying Rents
April 2, 2020 - Volume 14 Issue 64 Print Report
X is a REIT. X had contracted with an independent contractorto provide services and perform managerial and operational functionswith respect toits c...
Are Stock Dividends In The Offing For REITs?
April 1, 2020 - Bulletin Print Report
In order for a real estate investment trust, ("REIT"), to maintain its tax status it must, among other things, distribute to its shareholders at least 90 percent of i...
Indefinite Assignment Shifts Location Of "Tax Home"
April 1, 2020 - Bulletin Print Report
B operates a "concierge CFO" business called "Project Next," ("PN"), in which he contracts with companies to manage their finances and to lead and...
Where Do LendingTree's Customers Receive The Benefit Of Its Service?
April 1, 2020 - Bulletin Print Report
LendingTreeLLC, ("L"), operates an online loan marketplace that matches prospective borrowers with potential lenders. Interested borrowers can complete an onlin...
Terminating the Two-Person Partnership
April 1, 2020 - Volume 14 Issue 63 Print Report
In 1946, Mr. McClausen, (M), and his brother, (B), formed a partnership to engage in the floral business. On October 17, 1956, M and B executed an agreement which pro...
Convenience And Order Processing Fees Not Subject To Sales Tax
March 31, 2020 - Bulletin Print Report
The taxpayer, ("TP"), operates the Event Center in Salt Lake City, Utah. The Utah Jazz play their home games at the Event Center. TP sells tickets to the events held...
When Is A Dividend Includible In Gross Income?
March 31, 2020 - Volume 14 Issue 62 Print Report
P is a wholly-owned subsidiary of FW, a publicly held resident foreign corporation organized under the laws of the U.K. . P owns all of the stock of E, a Canadian cor...
Parking Revenues Qualify As "Rents From Real Property"
March 31, 2020 - Bulletin Print Report
TP and REIT A, (together, "Companies"), have each elected to be taxed as a REIT. REIT A and LLC, a REIT,plan to develop an unimproved parcel in Area, ("Par...
When Can A Delaware Corporation Repurchase Its Stock?
March 31, 2020 - Bulletin Print Report
At the risk of incurring the wrath of certain politicians, those corporations who are not participating in government loan programs (and are therefore temporarily barred from r...
Termination Of A Trust Is Not Analogous To A Merger
March 30, 2020 - Bulletin Print Report
Per Illinois Code, a tax is imposed on the privilege of using any motor vehicle acquired by...transfer... Similar language is used for the Aircraft and Watercraft Use Tax. In 2...
Supreme Court Approves Use Of "But For" Causation Test
March 30, 2020 - Bulletin Print Report
Mr. B.A. owns Entertainment Studios Network, ("ESN"), the operator of seven television networks. ESN sought to have Comcast, ("C"), carry its channels. C re...
Airbnb, Inc. Does Not Exercise A Taxable Privilege
March 30, 2020 - Bulletin Print Report
The Companies each manage an online platform that permits property owners or their agents, ("Owners"), to list and advertise their properties for short-term accommoda...
Guaranteed Payments Deductible For NYC UBT Purposes
March 30, 2020 - Volume 14 Issue 61 Print Report
Petitioner, an Ohio limited partnership, owns and operates the New York Yankees. Five limited partners withdrew from the partnership and, pursuant to the partnership...
Cruise Lines Appear To Be Ineligible For Loan Guarantees
March 27, 2020 - Bulletin Print Report
The cruise line companies are able, for the most part, to avoid U.S. tax consequence with respect to the income they earn "from the international operation of ships...&quo...
A Mixture Of Butane And Gasoline Is Not An "Alternative Fuel Mixture"
March 27, 2020 - Bulletin Print Report
Plaintiff, ("P"), alleges that it is a producer of a mixture of butane and gasoline. P filed amended returns that claimed the alternative fuel mixture credit, ("...
Another Victory For Fannie Mae and Freddie Mac
March 27, 2020 - Volume 14 Issue 60 Print Report
Hall County, Georgia, argues that it is entitled to collect taxes from theDefendants pursuant to O.C.G.A. Sec. 48-6-1. That statute imposes a tax "on each...
The Senate COVID-19 Bill Features Certain Significant Tax Provisions
March 26, 2020 - Bulletin Print Report
While tax relief is hardly the principal focus of the Senate's attempt to soften the economic blow that COVID-19 is visiting on the country, there are certain interesting a...
Bakery Had No "Nexus" With Florida
March 26, 2020 - Bulletin Print Report
TP is an "X" corporation. It is a bakery solely dedicated to the exclusive manufacture and sale of brownies, cookies, and bars for human consumption. At times, TP'...
Casualty Loss Does Not Generate Sales Tax Refund
March 26, 2020 - Bulletin Print Report
On December 22, 2010, DG purchased a 2008 Toyota Camry. On June 10, 2019, DG and her husband, PG, purchased a 2016 Toyota Prius. On August 30, 2019, DG suffered a "compreh...
Classifying Expenses Incurred By a Bankruptcy Trustee
March 26, 2020 - Volume 14 Issue 59 Print Report
M Corporation, (M), reported its income under the accrual method. During 1973, M filed a petition for a reorganization under Chapter X of the Bankruptcy Act. A was ap...
Butane Classified As A "Taxable Fuel"
March 25, 2020 - Bulletin Print Report
In 1954, Congress enacted Sec. 4081, which imposesa tax on the removal, entry, or sale of a taxable fuel . Sec. 4083 defines taxable fuels subject to Sec. 40...
Foreign Commerce Qualifies As "Interstate" Commerce
March 25, 2020 - Bulletin Print Report
Company, ("C"), is a foreign corporation. C has neitheroffices nor "presence" in Illinois. C is global aircraft leasing company. C engages in buying,...
Conveyance of Condominium Units Not Subject To The "Mansion Tax"
March 25, 2020 - Volume 14 Issue 58 Print Report
Petitioner, (P), is the sponsor of the "X" Hotel New York (Hotel). The Hotel is a high-rise luxury hotel condominium located in Manhattan, consisting of app...
The Allure Of "Market Discount" Preferred Stock
March 24, 2020 - Bulletin Print Report
On March 23, 2020, in Barron's, the always informative Andrew Barypointed out that many preferred securities, issued in many cases by household names such as Wells Fa...
Treating Myopia Constitutes Medical Care
March 24, 2020 - Volume 14 Issue 57 Print Report
A has an optical disorder known as "myopia" (nearsightedness) and is considering undergoing a procedure to correct this condition. Myopia occurs when the ey...
Limestone Purchases Exempt From Sales And Use Tax
March 24, 2020 - Bulletin Print Report
Nelson Industrial Steam Company, ("N"), produces electricity by burning petcoke to create steam that turns turbines to generate electricity for its own use and for re...
No "Prior Transfer Credit" Against Illinois Estate Tax
March 24, 2020 - Bulletin Print Report
SM died on May 21, 2015, leaving behind an estate valued at approximately $6.57 million. SM's parents preceded her in death. In 2007, SM's mother, LM, died, leaving SM...
The Willens Deal Survey March 2020
March 23, 2020 - The Deal Survey: March 2020 Print Report
Welcome to our summary of deals for March 2020. 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.
Claim For Reimbursement Prevents Theft Loss Deduction
March 23, 2020 - Bulletin Print Report
Petitioner, ("P"), amended her 2017 income tax return to claim a theft loss on Schedule A for money she invested in KAI, a "Ponzischeme." The auditor...
WalMart Entitled To The "Freeport" Exemption
March 23, 2020 - Bulletin Print Report
WalMart, ("W"), filed with the Fayette County Board of Tax Assessors, (the "Board"), a business personal property tax return on March 24, 2017, for two cate...
Taxpayer Found To Be An Investor
March 23, 2020 - Volume 14 Issue 56 Print Report
M incorporated C in December, 1982, to oversee money managers charged with investing certain of his assets. M was the sole shareholder and president of C. &...
Automatic Filing (And Payment) Extension Instituted By Treasury Dept.
March 21, 2020 - Bulletin Print Report
Sec. 7508Aof the Internal Revenue Code provides the Secretary of the Treasury, or his delegates, ("Secretary"), with authority to postpone the time for performi...
BNY's Lien Was Not "Choate"
March 20, 2020 - Bulletin Print Report
ALL issued a homeowner's insurance policy, (the "Policy"), to the Cs for their home in Southampton, New York. On March 6, 2015, the property sustained damage and...
Land Surveying Is Within The "Field of Engineering"
March 20, 2020 - Volume 14 Issue 55 Print Report
The taxpayer, Kraatz & Craig Surveying, Inc., (KCS), is in the business of surveying land. KCS does not have any employees who are licensed engineers. At issue is...
Cincinnati Bell Finally Chooses A Suitor
March 20, 2020 - Bulletin Print Report
Cincinnati Bell, ("CB"), proved to be a very attractive target. After being pursued by several suitors, it has now entered into an Agreement and Plan of Merger with R...
Room Furnishings Not Resold To Hotel Guests
March 20, 2020 - Bulletin Print Report
DHC owned DIS and managed several dozen hotels in Missouri, ("DH"). DIS sells furnishings and supplies, ("room furnishings"), to the hotels managed by DHC....
April 15th Federal Tax Payments Are Postponed
March 19, 2020 - Bulletin Print Report
On March 13th, the President issued an emergency declaration, ("Emergency Declaration"). The Emergency Declaration instructed the Secretary of the Treasury "to p...
"Recognized" Losses Reduce E&P Of a CFC
March 19, 2020 - Volume 14 Issue 54 Print Report
P owns all of the voting stock of S, a controlled foreign corporation (CFC) within the meaning of Sec. 957(a). S owns all of the voting stock of S1, a foreign corpora...
Aircraft Found Subject To California Use Tax
March 19, 2020 - Bulletin Print Report
Appellant, ("APP"), purchased the aircraft in question on December 30, 2004 in California. The aircraft was first functionally used in California. The seller of the a...
BEP Plans To Roll Up TERP
March 19, 2020 - Bulletin Print Report
From what we can gather, Brookfield Renewable Partners, L.P., ("BEP"), is owned by Brookfield Asset Management, Inc., ("BAM"), and by the public. BEP, in tu...
Sec. 351(a) Supersedes The "Assignment of Income" Doctrine
March 18, 2020 - Volume 14 Issue 53 Print Report
A conducted a medical practice as a sole proprietorship, the income of which was reported on the cash receipts and disbursements method of accounting.  ...
FLWS Will Be Buying A "Disregarded Entity"
March 18, 2020 - Bulletin Print Report
Recently, 1-800-FLOWERS.COM, ("FLWS"), announced the signing of a definitive agreement to acquire PERSONALIZATIONMALL.COM, ("PM"). PM is a limited liability...
Legal Fees Allocable To Tax-Exempt Income Not Deductible
March 18, 2020 - Bulletin Print Report
In July 2011, JK appointed D to serve as a Circuit Court judge. In November 2012, D was elected to a six-year term. His term of office expired on January 7, 2019. The OCJFD&nbs...
Intuit Cannot Compel Arbitration
March 18, 2020 - Bulletin Print Report
Intuit, Inc., ("II"), owns TurboTax, ("TT"), an online tax preparation service. In 2002, II and several other tax preparation services entered into an agree...
Statutory Apportionment Formula Found To Be Unconstitutional
March 17, 2020 - Bulletin Print Report
MLI was an 'S' corporation headquartered in Big Lake, Minnesota. At no time did MLImaintain a permanent business location in Michigan or retain permanent employee...
Taxation Of "FHPs" Is Not Unconstitutional
March 17, 2020 - Bulletin Print Report
Appellants, ("APPs"), filed applications for refunds of sales tax they paid for feminine hygiene products, ("FHPs"). Their claims for refund were denied. Th...
Broker's Tax Home Was The Location Of His Clients
March 17, 2020 - Bulletin Print Report
Z is a broker specializing in helping high technology companies meet their needs for what he terms the "necessary evil" of office space. Most of his clients are headq...
Amounts Paid For Diagnostic Procedures Are Deductible
March 17, 2020 - Volume 14 Issue 52 Print Report
TPA undergoes an annual physical examination, which is performed by a physician. TPA pays for the physician's services and for laboratory tests. &...
Equitrans Midstream Corporation To "Roll Up" EQM
March 16, 2020 - Bulletin Print Report
Equitrans Midstream Corporation, ("EMC"), was spun-off from EQT on November 12, 2018. In fact, only 80.1 percent of the stock of EMC was distributed by EQT on that da...
California Resident Runs Afoul Of The "Duty Of Consistency"
March 16, 2020 - Bulletin Print Report
From 2000 through 2004, appellants, ("APPs"), acting through Trust, purchased 157 shares of stock of Kiwi for $3,198,862. According to Annual Information Statements i...
State Acted As A Market Participant Not As A Regulator
March 16, 2020 - Bulletin Print Report
The Indiana East West Toll Road is one of several east-west routes across Indiana from the Illinois Border to the Ohio Border, but it is Indiana's only toll road. The India...
Depreciation Is Not A Medical Expense Deduction
March 16, 2020 - Volume 14 Issue 51 Print Report
The issue is whether petitioners are entitled to deduct depreciation as a medical expense under Sec. 213. Petitioners' so...
PEP'S Acquisition Of Rockstar Energy Beverages Has "Up-C" Overtones
March 13, 2020 - Bulletin Print Report
Pepsico, Inc., ("PEP"), announced that it has entered into an agreement to acquire Rockstar Energy Beverages, ("REB"), "the popular energy drink maker,...
Termination Payments Are Not Eligible For Capital Gain Treatment
March 13, 2020 - Volume 14 Issue 50 Print Report
B worked as an insurance agent for State Farm Insurance Company (SFIC) from 1963 to 1997 and conducted business as the WLBIA....
Tenants By The Entirety Are "One Person In Law"
March 13, 2020 - Bulletin Print Report
On April 30, 2018, Husband, ("H"), sold an automobile. In May 2018, Wife, ("W"), purchased an automobile. The discrepancy in titled owners was later noticed...
USPS Postmark Trumps A Private One
March 13, 2020 - Bulletin Print Report
On November 30, 2017, respondent mailed petitioners, ("Ps"), by certified mail to their last known address, a notice of deficiency for tax year 2015. The notice of de...
Tesco plc Announces Massive "Special Dividend"
March 12, 2020 - Bulletin Print Report
Tesco plcmade a stunning announcement recently regarding certain transformative transactions it has agreed to pursue. Thus, the company announced that it has entered into...
California Residents Not Allowed An "OSTC" For Arizona Taxes
March 12, 2020 - Bulletin Print Report
Appellants, ("APPs"), were California residents in 2014. In 2014, APPs, sensing a market opportunity, sold property situated in Arizona, which resulted in them recogn...
Sec. 72(t) Withstands "Rational Basis" Scrutiny
March 12, 2020 - Bulletin Print Report
Petitioner, ("P"), was a resident of Wisconsin. In 2008, when she was not yet 59 1/2 years of age, was not disabled, and was not eligible for any of the exceptions de...
Treatment For Obesity Is Medical Care
March 12, 2020 - Volume 14 Issue 49 Print Report
Taxpayer A is diagnosed by a physician as obese . Taxpayer B, by contrast, is not obese but suffers from hypertension. Taxpayer B has been directed by a physi...
CODI To Acquire A "Pass-Through" Entity
March 11, 2020 - Bulletin Print Report
Compass Diversified Holdings, ("CODI"). announced that it has entered into a definitive agreement to acquire Baton Rouge, Louisiana-based Marucci Sports, LLC, ("...
Limited Deduction for Charitable Contribution of "Sec. 306" Stock
March 11, 2020 - Volume 14 Issue 48 Print Report
In a tax-free reorganization, the petitioner, (CP), a individual, merged his six controlled corporations with andinto L Corporation, (L). In the merger, among o...
No Transfer Of Possession Or Control Of Gymnasium Equipment
March 11, 2020 - Bulletin Print Report
G owns and operates health clubs in Texas that sell memberships subject to a Membership Agreement. G purchased items for its health clubs on which it paid sales and use tax. Th...
Services Performed By JV Are Treated As Performed By TRS
March 10, 2020 - Volume 14 Issue 47 Print Report
R is a real estate investment trust, (REIT). R owns and operates rental apartment properties in several major metropolitan areas. In 2002, R formed T to provide servi...
Aon To Combine With Willis Towers Watson
March 10, 2020 - Bulletin Print Report
Aon plc, ("AON"), and Willis Towers Watson plc, ("WLTW"), announced a definitive agreement to combine "in an all-stock transaction" with an implie...
Real Property Found To Be A Commercial Hotel
March 10, 2020 - Bulletin Print Report
During the years at issue, B owned a four-story building that contained 124 private rooms and was situated on approximately two acres of land in Fort Wayne, Indiana. Each room...
Sales Tax Is Imposed On "Retail Sales" Of Tangible Personal Property
March 10, 2020 - Bulletin Print Report
PC LLC is an automobile sales and service group that wholly owns a number of luxury car dealerships, each of which is organized as a limited liability company. Petitioner, (&qu...
Dividends Eligible For The DRD Constitutes "Income Not Taxable"
March 9, 2020 - Bulletin Print Report
G is a New York corporation headquartered in St. Louis, Missouri. G filed as a C corporation for both federal and North Carolina, ("NC"), tax purposes. G is the paren...
Separated Spouse Not Entitled To Interest And Property Tax Deductions
March 9, 2020 - Bulletin Print Report
In 2015, MRV and MSV were separated while a divorce proceeding was pending in the Circuit Court. Throughout that year, MSVlived in the marital home. The parties had a not...
MCK Sets Final Exchange Ratio For Split-Off Of PF2 SpinCo, Inc.
March 9, 2020 - Bulletin Print Report
McKesson Corporation, ("MCK"), is in the final stages of one of the more interesting transactions we have encountered, involving a "split-off" of the stock...
Is Income Derived From Selling Call Options UBTI?
March 9, 2020 - Volume 14 Issue 46 Print Report
An organization which is exempt from income tax under Sec. 501(c)(3) regularly sells call optionson certain securities held in itsin...
Real Estate Transfer Fee Applied To "Deed In Lieu" Transaction
March 6, 2020 - Bulletin Print Report
On or about December 31, 2014, a real estate transfer return was filed reporting the conveyance of real estate, (the "Property"), from W to MSCvia Specialty War...
Commitment Fees Are Not Interest
March 6, 2020 - Volume 14 Issue 45 Print Report
A real estate investment trust, (REIT), invests in construction and development first mortgage loans. In connection with making aconstruction loan,the REI...
Non-Defendant Spouse's IRA Available For Garnishment
March 5, 2020 - Bulletin Print Report
G pled guilty and was convicted of wire fraud, mail fraud, and falsifying a tax return, all in connection with the ongoing theft of funds from her employers. She was ordered to...
Homestead Exemption Denied Disabled Veteran
March 5, 2020 - Bulletin Print Report
On March 24, 1995, a trial court in Wayne County, Michigan sentenced the defendant, SM, to three life sentences for one count of second-degree murder...and two counts of assaul...
Expanding An Existing Business
March 5, 2020 - Volume 14 Issue 44 Print Report
TP was incorporated on "a." TP manufactures and sells fragrances and cosmetics, and imports and distributes ready-to-wear clothing and accessory items. TP i...
Air Carrier Did Not Qualify As A Statutory "Hub Facility"
March 4, 2020 - Bulletin Print Report
The Wisconsin Department of Revenue, (the "Department"), assesses the total market value of the property of the air carrier companies, and then calculates the percent...
Lodging Expenses Are Not Medical Care
March 4, 2020 - Volume 14 Issue 43 Print Report
The taxpayer was an attorney practicing law in Newark, New Jersey. In December, 1943, when he was 43 years of age and had suffered four heart attacks during the previ...
Gain From Sale Of Intangible Assets Is "Business Income"
March 4, 2020 - Bulletin Print Report
X corporation, ("X"), is a wholly-owned subsidiary of Y corporation, ("Y"). X operated a pork business as part of its portfolio of agricultural products. X...
Xerox Launches Tender Offer (To Be Followed By A Merger) For HP
March 3, 2020 - Bulletin Print Report
Xerox Holdings Corporation, ("Xerox"), has made good on its threat to take its acquisition offer directly to the shareholders of HP, Inc., ("HP"). Thus, XHC...
Debt Retirement In a Sec. 332 Liquidation
March 3, 2020 - Volume 14 Issue 42 Print Report
The question is whether upon the liquidation of its subsidiary in 1940 the corporation (D) of which the petitioner is the transferee realized taxable income of $310,9...
Loss Limitation Rules Apply For Purposes Of Computing "NESE"
March 3, 2020 - Bulletin Print Report
LLC elected to be treated as a partnership. LLC has three members, MA, MB, and MC. All three are general partners. During the tax year X, LLC had a current year operating loss....
New York Court Declines To Apply "Federal Conformity Principle"
March 3, 2020 - Bulletin Print Report
Petitioner, ("P"), filed a New York resident income tax return for tax year 2012. Line 71 showed "other refundable credits" of $783,807.00. In 2012, P owned...
Collection Of Income Not A Prerequisite To A "Trade Or Business"
March 2, 2020 - Bulletin Print Report
Distributing, ("D"), is publicly traded and owns all of the stock of Sub 1. D is an "Industry A" corporation. Industry A corporations seek to create "I...
Broker-Dealer's Registered Representatives Belong In Payroll Factor
March 2, 2020 - Bulletin Print Report
Seattle's "B&O" Tax uses a two-factor apportionment method to calculate taxable revenue for service related businesses. One of these factors, the "payrol...
Private Companies Did Not Qualify As "Common Carriers"
March 2, 2020 - Bulletin Print Report
Petitioner, ("P"), purchases and delivers Yellow Pages telephone directories throughout the United States, including New York. The directories are delivered to busine...
Is Money Property?
March 2, 2020 - Volume 14 Issue 41 Print Report
The question is whether the term, property, includes money within the purview of the predecessor of Sec. 332 which reads: no gain or loss shall be recognized upon the...
Single Member LLC Is A Distinct Legal Entity
February 28, 2020 - Bulletin Print Report
On or about October 28, 2019, the taxpayer, ("TP"), an individual, purchased a motor vehicle. On December 9, 2019, the Department of Finance and Administration (the &...
Loss Distributed To Single Member LLC Is Considered A Partnership Loss
February 28, 2020 - Bulletin Print Report
S formed B as a single member limited liability company. B is a disregarded entity for federal income tax purposes. B is a 50 percent partner in FS. FS is classified as a partn...
Expenses Found To Be "Pre-Opening" Expenses
February 28, 2020 - Volume 14 Issue 40 Print Report
B is the parent of several subsidiaries, one of which owned KI. KI was incorporated in Florida in July 1973 for the purpose of operating a marina. KI bought a marina...
Can Liberty Media Redeem Its SiriusXM Tracking Stock Tax Efficiently?
February 28, 2020 - Bulletin Print Report
Liberty Media's Sirius XM tracking stock is trading at a substantial discount to the "asset based" stock, i.e., the stock of Sirius XM Holdings, Inc., that the tr...
L Brands To Dispose Of A Majority Stake In Victoria's Secret
February 27, 2020 - Bulletin Print Report
L Brands, Inc., ("LB"), and Sycamore Partners, ("Sycamore"), recently announced a "strategic transaction." Under the terms of the transaction, Vic...
Disclosure Not Sufficient To Start The ERISA Statute Of Limitations
February 27, 2020 - Bulletin Print Report
Retirement plans governed by ERISAmust have at least one named fiduciary who must manage the plan "prudently" and "solely in the interests of participants...
Supreme Court Eliminates "Bob Richards" Rule
February 27, 2020 - Bulletin Print Report
United Western Bank, ("UWB"), entered receivership and the Federal Deposit Insurance Corporation, ("FDIC"), took the reins. Not long after, UWB's parent...
Husband Denied First-Time Homebuyer Credit
February 27, 2020 - Volume 14 Issue 39 Print Report
T purchased a home in July, 2009 and filed Form 5405 in that year to receive the $8,000 tax credit for first-time homebuyers....
Distribution of Encumbered Property By a Partnership
February 26, 2020 - Volume 14 Issue 38 Print Report
A and B are general partners in M, a general partnership, which was formed for the purposes of owning and operating shopping centers. &nbs...
Guard Services Are Always Subject To New York Sales Tax
February 26, 2020 - Bulletin Print Report
Petitioner, ("P"), was engaged in a project that consisted of the development of a parcel of real estate located in the City of New York, (the "Project"). T...
Intuit To Annex Credit Karma
February 26, 2020 - Bulletin Print Report
Intuit, Inc., in one of the larger deals of the past few years, announced that it has agreed to acquire a privately held entity, named Credit Karma, for approximately $7.1 bill...
No Statute Of Limitations On Assessment Of "ESRP"
February 26, 2020 - Bulletin Print Report
Sec. 4980Hof the Code creates two assessable penalties, one that is applicable when an Applicable Large Employer, ("ALE"), fails to offer its full-time employee...
WFC Cannot Take A Tax Deduction For The "Settlement Amount"
February 25, 2020 - Bulletin Print Report
Recently, Wells Fargo & Company, ("WFC"), entered into a settlement agreement, (the "Settlement Agreement"), in which it was able to resolve certain cla...
Distribution In Anticipation of Future Profits Is a Return of Capital
February 25, 2020 - Volume 14 Issue 37 Print Report
The Partnership owned all of the stock of the Corporation. Prior to the end of the Corporation's 1969 tax year, the Partnership held the Corporation's note fo...
Back Wages Properly Excluded From Gross Income
February 25, 2020 - Bulletin Print Report
Are payments in the form of back pay made to U.S. military service members following the reversal of a court martial conviction considered a civil damage, restitution, or other...
Guaranteed Debt Treated As Recourse To The Guarantor
February 25, 2020 - Bulletin Print Report
B owned a medical services company, AHM. AHMwas a C corporation during 2008 and 2009 and an 'S' corporation beginning in 2010. In addition, B owned MLLC, a disreg...
CVRs Will Be Treated As "Boot" In Lantheus/Progenis Reorganization
February 24, 2020 - Bulletin Print Report
LantheusHoldings, Inc., ("LHI"), and Progenis Pharmaceuticals, Inc., ("PPI"), have entered into an Amended and Restated Agreement and Plan of Merger....
MS's Acquisition Of EFTC Will Qualify As A Reorganization
February 24, 2020 - Bulletin Print Report
Morgan Stanley, ("MS"), and E*TRADE Financial Corporation, ("EFTC"), have entered into a definitive agreement under which MS will acquire EFTCin an &q...
No Bankruptcy Priority For Unpaid "Shared Responsibility" Delinquency
February 24, 2020 - Bulletin Print Report
The Affordable Care Act, ("ACA"), requires most Americans to "ensure" thatthey carry qualifying health insurance. This requirement is commonly known a...
Late Filing Penalty Upheld
February 24, 2020 - Volume 14 Issue 36 Print Report
Petitioner, (P), filed his tax return for 2010 on May 20, 2011, about a month after the due date for such return. The return showed a refund due of $25. The I.R.S. di...
Option Had No Readily Ascertainable Value
February 21, 2020 - Volume 14 Issue 35 Print Report
P received a nonqualified stock option in 1977 as partial compensation for underwriting a stock offering on behalf of I. At the time of receipt, I options were not pu...
XBIT Announces The Results Of Its "Partial Liquidation" Tender Offer
February 21, 2020 - Bulletin Print Report
XBiotech, Inc., ("XBIT"), announced the final results of its "modified Dutch auction" tender offer which, from the company's viewpoint, was an unmitigat...
Constitutional Language Renders Implementing Statutory Provision Invalid
February 21, 2020 - Bulletin Print Report
B is a widow who owns and resides on real property located in HillsboroughCountry, Florida. She was married to a member of the U.S. Army who was killed in action in Iraq...
Amended Federal Return Not Required For Filing Virginia Amended Return
February 21, 2020 - Bulletin Print Report
Corporation A and Corporation B are affiliates wholly owned by Taxpayer. Corporation A and Corporation B jointly owned CLLC, a limited liability company treated as a partnershi...
No Deductible Loss on Settlement of Forward Contract
February 20, 2020 - Volume 14 Issue 34 Print Report
Corporation A, (CA), agreed to buy back a certain number of its ownshares for a set price on various dates. Each contract could be settled in one of three ways:...
Alstom's Acquisition Of Bombardier Transportation Not Eligible For "Bump"
February 20, 2020 - Bulletin Print Report
Alstomrecently inkeda Memorandum of Understanding, ("MOU"), with the shareholders of Bombardier Transportation, ("BT"), Bombardier Inc. and CDPQ...
Deferred Compensation Payments Are Subject To "SE" Tax
February 20, 2020 - Bulletin Print Report
D received $115,260.96 in payments from Mary Kay Cosmetics, Inc., ("MK"), during each of 2014 and 2015. MK issued Form 1099-MISC for each year, designating the income...
Stepping Up The Basis Of A REIT's Assets
February 20, 2020 - Bulletin Print Report
Amherst Residential LLC, ("AMH"),and Front Yard Residential Corporation, ("FY"), a real estate investment trust, ("REIT"), recently announce...
The Willens Deal Survey February 2020
February 19, 2020 - The Deal Survey: February 2020 Print Report
Welcome to our summary of deals for February 2020. 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....
Refunds Of Overpayments Of Excise Taxes
February 19, 2020 - Volume 14 Issue 33 Print Report
A U.S. company imports sports fishing equipment from a foreign country. The equipment, which is subject to excise tax under Sec. 4161, was made in the foreign country...
Omission Of Basis Information Causes Loss Of Charitable Deduction
February 19, 2020 - Bulletin Print Report
Before August 2007, A owned thousands of acres of undeveloped forest property in Georgia. On August 1, 2007, A sold 1,895 acres to HRH. O is a partnership. On December 1, 2009,...
Which Spouse Owns A Tax Refund?
February 19, 2020 - Bulletin Print Report
M owned S, (the "Debtor"). The Debtor's largest creditor was T, to which it owed more than $3 million. T's loans were secured by a blanket lien on most of the...
Non-Profit Corporation Not An "Arm Of The State"
February 19, 2020 - Bulletin Print Report
ARUPis a pathology laboratory located in Utah. It receives bodily fluid and tissue samples from medical providers in all 50 states and performs tests on the samples. Medi...
MGM Will Use Its "Levpar" Proceeds To Repurchase Stock
February 18, 2020 - Bulletin Print Report
MGM Resorts International, ("MGM"), in pursuing what the company has referred to as an "asset-light" strategy, has recently "monetized" many of it...
Ascertaining The Basis Of A Life Insurance Contract
February 18, 2020 - Bulletin Print Report
Sec. 1011 and 1012 of the Internal Revenue Code provide that the adjusted basis for determining gain or loss is generally the cost of property, adjusted as provided in Sec. 101...
PG&E's Disclosure Statement Provides A Wealth Of Tax Information
February 18, 2020 - Bulletin Print Report
PG&E Corporation, ("PCG"), and Pacific Gas & Electric Co., ("PGE"), PCG's"utility" subsidiary, are the "Debtors" in a...
Loan Fees Not UBTI
February 18, 2020 - Volume 14 Issue 32 Print Report
Trust X (TX) funds a pension plan that is qualified under Sec. 401(a) and is therefore tax exempt under Sec. 501(a). Company...
BLK To Donate "Appreciated Property" To The BLK Foundation
February 14, 2020 - Bulletin Print Report
BlackRock, Inc., ("BLK"), it seems safe to say, surprised investors with itsannouncement of a charitable contribution, not in the form of cash, but, instead, in...
Captive Automobile Finance Company Escapes Ohio's "CAT"
February 14, 2020 - Bulletin Print Report
HCA is a captive automobile finance company that "provides indirect retail vehicle loan and lease financing by purchasing retail installment sale contracts, ("RISCs&q...
Sec. 351 Bars a Qualified Stock Purchase
February 14, 2020 - Volume 14 Issue 31 Print Report
The stock of X Corporation, (X), was owned by individuals A, B, C, D, E, and F. In May, 1976, A retired and had all of his stock redeemed for cash. On or about June 1...
A Notice From The "AUR" Program Is Not An "Examination"
February 14, 2020 - Bulletin Print Report
In 2013, petitioner's mother died, and he inherited an IRA that she had inherited from petitioner's father. After petitioner inherited the IRA, he took distributions fr...
Interstate Pipeliner Taxed On Instrastate Receipts
February 13, 2020 - Bulletin Print Report
R is an interstate pipeline used for transporting natural gas. The pipeline is roughly 1,700 miles long and crosses through no fewer than eight states, including Ohio. R is reg...
Court Approves Sprint/T-Mobile Combination
February 13, 2020 - Bulletin Print Report
It now appears, thanks to a recent District Court ruling, that the long-awaited combination of Sprint Corporation, ("S"), and T-Mobile US, Inc., ("TMUS"), w...
The "MTAETL" Is Constitutional
February 13, 2020 - Volume 14 Issue 30 Print Report
In 2009, the New York State Legislature passed the Metropolitan Commuter Transportation Mobility Tax Law (the "MTAETL"). The tax was imposed on employers an...
SPG And TCO Will Undertake A "Forward Cash Merger"
February 12, 2020 - Bulletin Print Report
Simon Property Group, Inc., ("SPG"), and Taubman Centers, Inc. ("TCO"), each a real estate investment trust, ("REIT"), whose activities are conduc...
Personal Residence Not Qualified Replacement Property
February 12, 2020 - Volume 14 Issue 29 Print Report
In Rev. Rul. 70-466, 1970-2 C.B. 165, the taxpayer, an individual, owned a residence that was rented for residential purposes.  ...
Deed Restrictions Prevent Qualified Conservation Contribution
February 12, 2020 - Bulletin Print Report
RCH is treated as a partnership for federal income tax purposes. On September 23, 2013, Mr. A transferred a 51 percent undivided interest in the subject property to RCM. Mr. A...
"BEA" Payments Are Not Contributions to Capital
February 11, 2020 - Volume 14 Issue 28 Print Report
The "BEA" program, which isadministered by the U.S.Department of the Treasury,encourages financial institutions to open savings accounts,...
No Second Ownership Change For Bristow Group, Inc.
February 11, 2020 - Bulletin Print Report
Bristow Group, Inc., ("B"), emerged from bankruptcy last October with approximately $145 million in net operating losses that the company ishoping to utilize in...
Residence Subject To N.J. Estate Tax Upon Death Of Surviving Spouse
February 11, 2020 - Bulletin Print Report
New Jersey, ("N.J."), is one of a handful of states with an inheritance tax. A common estate planning strategy adopted by married couples, in light of that tax, is a...
Fantasy Sports Contests Constitute Prohibited "Gambling" In New York
February 10, 2020 - Bulletin Print Report
In August 2016, the New York Legislature amended the Racing,Pari-Mutuel Wagering and Breeding Law, (the "Law"), by adding an article related to the registration...
Reimbursement Payments Constitute Qualifying Income
February 10, 2020 - Bulletin Print Report
Taxpayer, ("TP"), is a real estate investment trust, ("REIT"). TP owns "a%" of a joint venture, ("JV"), which is treated as a partnershi...
FNF Will Acquire The Balance Of FG
February 10, 2020 - Bulletin Print Report
FGLHoldings, ("FG"), a Cayman Islands annuity and life insurance company, announced that it has entered into a merger agreement pursuant to which Fidelity Natio...
Exchanging Gold Bullion For Silver Bullion
February 10, 2020 - Volume 14 Issue 27 Print Report
Y owns "x" ounces of gold bullion which Y acquired on the spot market over a period of years and which itholds for investment purposes. The gold bulli...
Cleveland Can Tax A Non-Resident's Option Income
February 7, 2020 - Bulletin Print Report
W was employed by the Sherwin-Williams Company, ("S"), in Cleveland from 1980 until she retired in 2009 and moved to Florida. In 2007, S granted her options to purcha...
Only Partners Can Benefit From Carryovers Allowed By Sec. 704(d)
February 7, 2020 - Volume 14 Issue 26 Print Report
S entered PPP as a limited partner in December, 1967. S contributed $135,000 tothe partnership and received a 33.5 percent interest in the partnership. <...
Transfer Of Rights To Use Software Subject To Massachusetts Sales Tax
February 7, 2020 - Bulletin Print Report
During the relevant taxable periods, Citrix Systems, Inc., ("C"), sold subscriptions for three online software products. A shared attribute of these online products i...
Membership Fees Found Subject To Sales Tax
February 6, 2020 - Bulletin Print Report
Taxpayer, ("TP"), a business league exempt from federal income tax under Sec. 501(c)(6) of the Internal Revenue Code, is a not-for-profit professional membership asso...
MRK To Pursue "Leveraged" Spin-Off
February 6, 2020 - Bulletin Print Report
Merck, ("MRK"), surprised the market with theannouncement of its intention to effectuate a spin-off, in which MRKwill separate those of its businesses wit...
Expenses Incurred To Obtain Donated Eggs Are 'Medical Care'
February 6, 2020 - Volume 14 Issue 25 Print Report
Y has unsuccessfully undergone repeated assisted reproductive technology procedures to enable Y to conceive a child using her own eggs. &n...
Expenses Incurred Prior To Marketing Or Selling Are Not Deductible
February 6, 2020 - Bulletin Print Report
P is a practicing attorney. He practiced law through an 'S' corporation of which he is the sole owner. From 2005 to 2016, P was awarded seven patents in connection with...
Capital Is Not An "Exhausting" Asset
February 5, 2020 - Volume 14 Issue 24 Print Report
Petitioner is a mining corporation organized under the laws of the State of Colorado, in January, 1926, with a fixed period of existence of 20 years....
McKesson Will Be Undertaking A Split-Off "RMT" Transaction
February 5, 2020 - Bulletin Print Report
In March, 2017, McKesson Corporation, ("MCK"), and Change Healthcare, Inc., ("C"), formed a joint venture, treated as a partnership for tax purposes, called...
EPP And ETP Did Not Form An "Accidental" Partnership
February 5, 2020 - Bulletin Print Report
In March 2011, Enterprise Products Partners, L.P., ("E"), approached Energy Transfer Partners, L.P., ("ETP"), about convertinga pipeline, called "...
Tax Profile Of WLN/ING And PPBI/OPB Deals
February 5, 2020 - Bulletin Print Report
WorldlineSA, ("WLN"), and Ingenico Group SA, ("ING"), announced that their respective Boards of Directors have unanimously approved a business combina...
Assets Excluded From The "Substantially All" Determination
February 4, 2020 - Volume 14 Issue 23 Print Report
P Corporation, ("P"), formed S Corporation, ("S"), as a wholly owned subsidiary for the purpose of effectuating a merger of S with and into T Corp...
Probate Litigation Expenses Are Not Deductible
February 4, 2020 - Bulletin Print Report
Mr. E's grandmother passed away in 2014. She died testate, i.e., she left a will. Mr. E pursued litigation relating to the division of his grandmother's assets. In 2015...
I.R.S. Applies Its Sec. 856(c)(5)(J) Powers To A REIT's Tax Credits
February 4, 2020 - Bulletin Print Report
Taxpayer, ("TP"), has elected to be taxed asa real estate investment trust, ("REIT"). TP holds indirect interests in Company, ("C"), which h...
New York Gains Another "Statutory Resident"
February 4, 2020 - Bulletin Print Report
Petitioner, Mr. Chewee Chew, ("P"), was a New Jersey domiciliary during 2012, the year at issue. P filed joint New York non-resident and part-year resident income tax...
Lease Acquisition Costs Must Be Capitalized
February 3, 2020 - Bulletin Print Report
TP and various dealerships entered into master agreements that provide TP the opportunity to purchase vehicle lease contracts originated by the dealership if they meet TP's...
Assessing NAV's Net Operating Losses
February 3, 2020 - Bulletin Print Report
Last week, Navistar International Corporation, ("NAV"), received an unsolicited proposal from TRATON SE regarding a proposed transaction to acquire NAV "for $35...
Wal-Mart Is Not A "Dealer" Required To Collect Sales Tax
February 3, 2020 - Bulletin Print Report
Wal-Mart.com USA, LLC, ("W"), operates an online marketplace at which website visitors can procureproducts from either W or third-party retailers. In connection...
"Term Permits" Are Interests in Real Property
February 3, 2020 - Volume 14 Issue 22 Print Report
Company, (C), is considering electing to be treated as a REIT. C owns and operates ski resorts. C conducts a major portion of its ski resort activities on federally o...
SSB Will Be "The Accounting Acquirer" Of CSFL
January 31, 2020 - Bulletin Print Report
Earlier this week, CenterStateBank Corporation, (CSFL), and South State Corporation, (SSB), jointly announced that they had entered into a definitive agreement under whic...
Outdoor Advertising Tax Does Not Violate First Amendment
January 31, 2020 - Bulletin Print Report
In 2013, Ordinance 13-139 was signed into law imposing an excise tax on the privilege of exhibiting outdoor advertising displays in the City (of Baltimore). The tax is levied u...
No Capital Loss Carryover In N.J.
January 31, 2020 - Volume 14 Issue 21 Print Report
In 1981, TG and her husband (the "Gs") owned a 40 percent interest in a partnership. During 1981, when the Gs were Pennsylvania residents, the partnership s...
Santander's Strategic Stock Buyback
January 30, 2020 - Bulletin Print Report
Santander Consumer USA Holdings, Inc., ("SC"), is offering to purchase, for cash (which it has on hand), up to $1 billion of its issued and outstanding stock, using a...
BWA To Acquire DLPH In A "Scheme Of Arrangement"
January 30, 2020 - Bulletin Print Report
We have witnessed the repatriation of several previously "inverted" companies since the enactment of the 2017 tax law, one of the goals of which was to encourage that...
Medical Marijuana Is A "Prescription Drug"
January 30, 2020 - Bulletin Print Report
Taxpayer, ("TP"), is licensed producer authorized to dispense medical marijuana, ("MM"), to qualified patients consistent with the Compassionate Use Act, (t...
Assets Securing Multiple Liabilities
January 30, 2020 - Volume 14 Issue 20 Print Report
TP is an 'S' corporation with two unrelated shareholders. SH owns 98 percent of the stock of TP and is its president....
Project Manager's EMBA Expenses Are Not Deductible
January 29, 2020 - Bulletin Print Report
In 2015, R had been an employee of IL for over 10 years. She had been promoted from Business Systems Analyst to Lead Consultant in October 2014. As a lead consultant, her princ...
Electricity Powering HVAC Units Exempt From Sales Tax
January 29, 2020 - Bulletin Print Report
SWB operates transmission and switching equipment to create telecommunication signals. This equipment runs continuously, generating significant heat. Excessive heat renders the...
Exchanging Gold Bullion Bars For Coins
January 29, 2020 - Volume 14 Issue 19 Print Report
X Corporation, (X), represents that it presently owns a substantial amount of gold bullion in the form of bars which are being held for investment purposes. The bars...
Vehicle Seller Failed To Purchase Replacement Vehicle
January 29, 2020 - Bulletin Print Report
On January 2, 2014, T and L (the "Rs"), purchased a 2014 Dodge. On August 15, 2018, the Rs sold the 2014 Dodge to their son, JR. On August 13, 2018, the Rs leased a 2...
Numismatic Coins Cannot Be Exchanged Tax-Free For Bullion Coins
January 28, 2020 - Volume 14 Issue 18 Print Report
An individual taxpayer who is not a dealer in coins purchased U.S. $20 gold coins as an investment. After the coins had substantiallyappreciated in value, the t...
No Refund Of Taxes Paid By Settlors From Unauthorized Stock Sale
January 28, 2020 - Bulletin Print Report
The Hs established the trust in 2004. The trust is governed by Wisconsin law. BMO is the successor trustee. The trust is a revocable living trust, treated as a "grantor&qu...
Sales Of Prescription Drugs Not Eligible For Preferential Tax Rate
January 28, 2020 - Bulletin Print Report
P is a institutional pharmacy that contracts with institutional health care providers such as nursing homes, assisted living facilities...and other long-term care facilities, (...
FB Financial Corporation Will Acquire Franklin Financial Network
January 27, 2020 - Bulletin Print Report
FB Financial Corporation, ("FB"), and Franklin Financial Network, Inc., ("FFN") announced that they have entered into a definitive merger agreement pursuant...
"Facilitative" Merger Costs Do Not Create A Separate Intangible Asset
January 27, 2020 - Bulletin Print Report
Taxpayer, ("TP"), is engaged in Business. In Year 1, TP acquired the stock of Target, ("T"), a manufacturer of Products, in a taxable reverse triangular mer...
Exchange of Coins Falls Within Sec. 1031
January 27, 2020 - Volume 14 Issue 17 Print Report
In 1972, an individual taxpayer purchased five lots of Mexican 50-peso gold coins as an investment. The taxpayer was not a dealer in foreign or domestic currency....
J.C. Penney Extends NOL Preservation "Rights Plan"
January 24, 2020 - Bulletin Print Report
J.C. Penney Co. Inc., ("JCP"), in its most recent 10-K, is reporting a Federal net operating loss, ("NOL"), of approximately $2.1 billion. These NOLsa...
Timely Disclaimer Does Not Give Rise To a Gift
January 24, 2020 - Volume 14 Issue 16 Print Report
Grantor created Trusts several years before his death on Date 1, a date before January 1, 1977, for the benefit of the lineal descendants of his daughter. Daughter...
"TFRPs" Are "Penalties" (Not Taxes)
January 24, 2020 - Bulletin Print Report
Petitioner, ("P"), was the sole member of ICN and N, each a limited liability company. Both companies failed to pay employment taxes for several quarters. ROC determi...
Broadcast Fax Service's Receipts Are Mostly Allocable To New Jersey
January 23, 2020 - Bulletin Print Report
X corporation, ("X"), is a broadcast fax service incorporated in Delaware with headquarters in New Jersey. Users of X's services send their customer lists and doc...
Successor Corporation Avoids a "Disguised Sale"
January 23, 2020 - Volume 14 Issue 15 Print Report
P Corporation, (P), owns S Corporation, (S). S has only one asset, rental property that is encumbered by a non-recourse loan of $40x incurred by S on January 1, 1995....
The Commissioner's "Kickback" And "Bribe" Burden
January 23, 2020 - Bulletin Print Report
Taxpayer, ("TP"), is engaged in the manufacture, promotion, and sale of Product. TP's managers allegedly encouraged sales representatives to persuade Individuals...
Retroactive Application Of Tax Statute Violated Due Process Rights
January 23, 2020 - Bulletin Print Report
Petitioner, ("P"), is a power producer that owns and operates power plants. P is the sole member of OHP, the entity that owns the "Plant." P was issued a ce...
Commercial Use Of Airport Does Not Cause Loss Of Tax Exemption
January 22, 2020 - Bulletin Print Report
The subject property consists of roughly 325.6 acres of land with various improvements, and is known as The Ohio State University Airport, (the "airport"). The subjec...
Pre-Death Option Grant Does Not Spoil "Basis Step-Up"
January 22, 2020 - Volume 14 Issue 14 Print Report
An option agreement provided that the option is exercisable only after the death of the grantor by giving notice to the proper person within a certain period of time follow...
Physician's Home Was Not Her Principal Place Of Business
January 22, 2020 - Bulletin Print Report
During 2012, Dr. Gambhir, ("G"), worked as a "hospitalist" for Northeast Georgia Medical Center, "NGMC." She was paid on a per-shift basis, rather...
Rayonier To "Roll Up" Pope Resources
January 22, 2020 - Bulletin Print Report
Rayonier, Inc., ("R"), a real estate investment trust, ("REIT"), and Pope Resources, ("PR"), a master limited partnership, ("MLP"), anno...
The Willens Deal Survey January 2020
January 21, 2020 - The Deal Survey: January 2020 Print Report
Welcome to our summary of deals for January 2020. 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. <...
BAE Systems Will Enjoy Tax Benefits
January 21, 2020 - Bulletin Print Report
BAE Systems, Inc.,("BAE"), announced that it has reached definitive agreements for the proposed acquisitions of Collins Aerospace's military Global Position...
Protective Services Are Subject To Sales Tax
January 21, 2020 - Bulletin Print Report
Petitioner, ("P"), was engaged in a project that consisted of the development of a parcel of real estate located in the City of New York, (the "Project"). T...
Guarantor's Bad Debt Deduction Permits Sales Tax Credits
January 21, 2020 - Bulletin Print Report
Lowe's, ("L"), contracted with two banks to offer private label credit cards to Washington customers. The banks offered credit to cardholders who purchased L'...
When Does "COD" Income Arise?
January 21, 2020 - Volume 14 Issue 13 Print Report
The petitioner, (M), borrowed $19,986.72 from the Connecticut Student Loan Foundation, (CSLF), in order to finance his college education. M became delinquent in his l...
Ascertaining A Taxpayer's Principal Residence
January 17, 2020 - Bulletin Print Report
In 2016, Mr. O sold his house in Portland, Oregon. He excluded gain from that sale from his gross income under Sec. 121(a). However, at audit and conference, Defendant denied M...
Restoring Property To Its Source
January 17, 2020 - Volume 14 Issue 12 Print Report
P is a limited partnership. GP is the general partner of Pand A-E are P's limited partners. A-E each own "N" shares of X. The X shares were held i...
MGM To Monetize Hotel Properties Tax-Efficiently
January 17, 2020 - Bulletin Print Report
MGM Resorts International, Inc., ("MGM"), is in the process of converting its largest and most valuable assets, its hotels, into cash that the company has indicated i...
"PFL" Payment Excluded From California Gross Income
January 17, 2020 - Bulletin Print Report
Appellants, ("As"), filed a timely California resident tax return (Form 540) for 2013, reporting federal adjusted gross income, ("AGI"), of $1,587,007, and...
Anixter Accepts Wesco's Offer
January 16, 2020 - Bulletin Print Report
After a lengthy battle, WescoInternational, Inc. ("W"), has bagged its prize, AnixterInternational, Inc., ("A"). Earlier this week, W and A anno...
Gambling Disorder Does Not Render The Taxpayer "Disabled"
January 16, 2020 - Bulletin Print Report
G began taking Mirapexin the early 2000s. Mirapexis a medication for "restless leg syndrome." After a large dosage increase in 2010, G began to exhibit co...
Distribution Will Reduce State Taxes
January 16, 2020 - Volume 14 Issue 11 Print Report
P is a holding company. P's stock is bothwidely held and publicly traded. D is a domestic corporation all of whose outstanding stock is held by P. D is enga...
System Indirectly Utilizing Solar Energy Does Not Earn Tax Credit
January 16, 2020 - Bulletin Print Report
In 2012, Petitioners, ("Ps"), installed a ground source heat pump system to heat, cool, and provide hot water for their home. A ground source heat pump system functio...
XBiotech Is "Partially Liquidating"
January 15, 2020 - Bulletin Print Report
We have found through the years that many companies whose distributions to shareholders seemed to qualify as distributions in "partial liquidation," a characterizatio...
Intragroup Purchase In Anticipation of a Spin-Off
January 15, 2020 - Volume 14 Issue 10 Print Report
P wholly owns LLC1. LLC1 wholly owns LLC2 and LLC3, and indirectly owns S. S wholly owns LLC4. Each of LLC1-LLC4 is a disregarded entity....
Spouse Is A "Member Of The Household"
January 15, 2020 - Bulletin Print Report
On December 6, 2000, HLEand EIAconveyed the real property to MCE.... The Assessor assessed the property for $1,540,655 for tax years 2016, 2017, and 2018. During th...
COT And PRMW To Undertake A Multi-Step Reorganization
January 15, 2020 - Bulletin Print Report
Cott Corporation, ("COT"),a Canadian corporation, recently announced that it has entered into a definitive agreement pursuant to which "COT will acquire Pr...
Cost of Printing Prospectus Cannot Be "Recovered"
January 14, 2020 - Volume 14 Issue 9 Print Report
Promoter P formed limited partnership LP to purchase and manage hotels. As part of a public offering of limited partnership interests in LP, P arranged for the printi...
Taxpayer Successfully Avoids Late Payment Penalties
January 14, 2020 - Bulletin Print Report
Smith International, Inc., ("S"), is engaged in the oil and gas equipment services business in the State of Louisiana, ("L"). S timely filed its L corporate...
Standard Flash Is Not "Any Game Of Bingo"
January 14, 2020 - Bulletin Print Report
TP is an organization described in Sec. 501(c)(3) of the Internal Revenue Code. TP engaged in two activities: (1) Conducting two sessions per day at a gaming hall operated by T...
Affiliate Of Investment Advisor Can Be An "EIK"
January 14, 2020 - Bulletin Print Report
TP is a REIT. TP owns "a" hotel properties that are leased to TP'sTRSsand are managed by eligible independent contractors, ("EIKs&qu...
I.R.S. Transition Rule Allows Wider Use Of The "Sec. 338 Approach"
January 13, 2020 - Bulletin Print Report
Where a loss corporation experiences an "ownership change," the "Sec. 382 limitation" comes into play. Under the Sec. 382 limitation, the loss corporation&#...
Decommissioning Activities Were Conducted Within The U.S.
January 13, 2020 - Bulletin Print Report
P is incorporated under the laws of the United Kingdom, ("UK"). P is the registered owner of a multipurpose support vessel, (the "CV"), which was placed in...
Coordinating Deductions
January 13, 2020 - Volume 14 Issue 8 Print Report
For its 1975 tax year, the taxpayer had taxable income of $470,980. Subject to percentage limitations, the taxpayer was entitled to deductions from taxable income (a)...
NLOK Declares "Special Dividend"
January 10, 2020 - Bulletin Print Report
NortonLifeLock, (NLOK), announced that its Board of Directors "has declared a special one-time cash dividend of $12 per share of NortonLifeLock, Inc. common stock, returni...
Defective Appraisal Summary Eliminates Charitable Contribution Deduction
January 10, 2020 - Bulletin Print Report
On or about July 1, 2013, petitioners, ("Ps") purchased real property in Potomac, Maryland. The property was purchased for $795,000 and consisted of 0.38 acres of lan...
Visiting Teams Are Taxed in California
January 10, 2020 - Bulletin Print Report
1. TP is a professional athletic team. TP's home territory is located outside of California. The league in which TP plays has a season that begins in October of Year 1 and...
Apportioning Income To South Carolina
January 10, 2020 - Volume 14 Issue 7 Print Report
ABC provides engineering consulting services for the development of product designs for the automotive and consumer electronic market. ABC has approximately 15 employ...
Start-Up Expenditures Were Found To Be Non-Deductible
January 9, 2020 - Bulletin Print Report
Petitioner, ("P"), lived in New York, where he worked as an accountant at a large accounting firm. During 2010 and 2011, P viewed several properties for sale in Quebe...
Failure To Elect Under Sec. 709(b)
January 9, 2020 - Volume 14 Issue 6 Print Report
G contributed $100x for a partnership interest in GL. In its firstyear, GL incurred legal fees of $20x for services incident to the organization of the partners...
Hudson's Bay Alters Its Privatization Plan
January 9, 2020 - Bulletin Print Report
Hudson's Bay Company, ("HBC"), recently announced that it has entered into an "amended arrangement agreement" with a group of its existing shareholders,...
Tribune Loses Round One Of Its "LevPar" Litigation
January 8, 2020 - Bulletin Print Report
Tribune Media Company's predecessor, Tribune Company & Affiliates, ("T"), engaged in a transaction, popularly known as a "leveraged partnership," th...
Why Did Xerox Grant Voting Rights To Convertible Preferred Holders?
January 8, 2020 - Bulletin Print Report
Earlier this year, Xerox Corporation, ("XC"), engaged in an "internal" reorganization in connection with which a holding company structure was put into plac...
Loss From Sale of Partnership Interest Is a Capital Loss
January 8, 2020 - Volume 14 Issue 5 Print Report
Petitioner, (P), is a management consultant who was associated with a large New York City consulting firm. P sought and accepted outside consulting work unassociated...
Stock Issuance Costs Are Never Deductible
January 7, 2020 - Volume 14 Issue 4 Print Report
TP is a holding company organized as a C corporation. TP's subsidiaries provide various Business F services. Prior to Dat...
Motion Picture Exhibitor Subject To Use Tax
January 7, 2020 - Bulletin Print Report
American Multi-Cinema, Inc., ("A") generates revenue by exhibiting motion pictures and selling admission tickets to the public. A's master licensing agreements, (...
Sales Prompted By "Spectrum Act" Are Involuntary Conversions
January 7, 2020 - Bulletin Print Report
The taxpayer, ("TP"), is a partnership. TP is a television and broadcasting company that previously operated Station. TP owned an FCC license to broadcast as well as...
Collection Of Competitor Information Is Not Ancillary To Solicitation
January 6, 2020 - Bulletin Print Report
Blue Buffalo Co., Ltd., ("BB"), is a Delaware corporation that is commercially domiciled in Connecticut. BB is in the business of formulating and selling premium pet...
Worthless Debt Not Owed "To The Taxpayer"
January 6, 2020 - Bulletin Print Report
Menard, Inc., ("M"), operates a chain of home improvement retail stores in several states, including Minnesota, ("MI"), M entered into agreements with "...
Sec. 852(b)(6) Applies To a Closed-End Fund
January 6, 2020 - Volume 14 Issue 3 Print Report
Fund, (F), is a closed-end management investment company, registered under the Investment Company Act of 1940. Its shares are listed and traded on a major exchange. F...
Apple Dispensed Back To School Gift Cards For Free
January 3, 2020 - Bulletin Print Report
Petitioner, ("P"), is a corporation organized under the laws of California that designs and markets consumer electronics, software, and personal computers. P's on...
Diet Beverages Do Not Promise Weight Loss
January 3, 2020 - Bulletin Print Report
In October 2017, B filed her initial complaint, alleging that Dr. Pepper's naming and marketing of Diet Dr. Pepper, ("DDP"), violated various provisions of Califo...
Court Rejects "Last Resort" Business Purpose Test
January 3, 2020 - Volume 14 Issue 2 Print Report
Prior to December 31, 1954, H-M was engaged primarily in the sale of new and used cars at retail and related services. It also provided financing and owned the real property on...
Equitable Tolling Of The Statute Of Limitations Barred
January 3, 2020 - Bulletin Print Report
ARC created a new fuel that combines natural gas with diesel fuel. Beginning in 2009, ARC applied to the I.R.S. to be a taxable fuel registrant and was granted both a "UV&...
I.B.M. Cannot Exclude Royalty Payments From New York "ENI"
January 2, 2020 - Bulletin Print Report
International Business Machines Corporation, ("IBM"), is a New York corporation. IBM World Trade Corporation, ("WTC"), is a Delaware corporation. IBM owns 1...
Substance Over Form Doctrine Is Only Available To I.R.S.
January 2, 2020 - Bulletin Print Report
The Tax Court correctly concluded that the taxpayers, ("TPs"), in calculating K and M's debt basis in CO, improperly relied on a debt that CO owed toKMGI, a...
REIT Shares Do Not Constitute Qualified Replacement Property
January 2, 2020 - Volume 14 Issue 1 Print Report
MM and SM, individuals, were the joint owners of a building used for commercial and residential purposes in Milwaukee, Wisconsin. &n...
WPX Energy Will Get A Basis Step-Up
December 31, 2019 - Bulletin Print Report
WPX Energy, Inc., ("Purchaser"), and Felix Investment Holdings II, LLC, ("Seller"), have entered into an agreement in connection with which Seller will sell...
Condominium Units Are Real Estate Assets
December 31, 2019 - Volume 13 Issue 250 Print Report
A Real Estate Investment Trust, ("REIT"), acquired, through foreclosure proceedings, upon the default of an indebtedness, the unsold units in a particular&n...
"Price Protection" Amount May Be An "Eligible Rollover Distribution"
December 31, 2019 - Bulletin Print Report
1. The employer is an 'S' corporation. The employer maintains an ESOP that previously acquired a portion of the shares of the employer using funds obtained from the emp...
Petition For Review Not Timely Filed
December 31, 2019 - Bulletin Print Report
On March 7, 2018 and on March 14, 2018, Petitioner, ("P"), filed claims for the (Wisconsin) veterans and surviving spouse credit for the tax years 2009 through 2014....
Hedge Fund Manager Denied New York Resident Tax Credit
December 30, 2019 - Bulletin Print Report
Petitioners, ("Ps"), were domiciled in New York until September 30, 2009; and were domiciled in Connecticut during the period October 1, 2009 through December 31, 201...
N.Y. Non-Residents Penalized By Sec. 338(h)(10) Election
December 30, 2019 - Bulletin Print Report
LePage, Inc., ("L"), elected to be treated, for federal income tax purposes, as a subchapter S corporation, effective as of September 26, 1999. L never filed a separa...
APY And ECL To Engage In An "RMT" Transaction
December 30, 2019 - Bulletin Print Report
Apergy Corporation, ("APY"), and Ecolab, Inc., ("ECL"), recently announced that the Boards of Directors of the two corporations have entered into a definiti...
REIT Can Deduct Distribution and Dealer Manager Fees
December 30, 2019 - Volume 13 Issue 249 Print Report
TP is a REIT. TP is externally managed by Advisor. Previously, shares of a single class of common stock of TP were issued to accredited investors in a private offerin...
Anixter And CD&R Revise Merger Agreement
December 27, 2019 - Bulletin Print Report
Anixter International, Inc., ("AII"), and Clayton, Dubilier& Rice, ("CDR"), announced an Amended and Restated Merger Agreement on December 24, 201...
Worthless Debt Not Deductible For New Jersey GIT Purposes
December 27, 2019 - Volume 13 Issue 248 Print Report
The worthless nonbusiness debt at issue was HW's January 15, 2002 loan in the amount of $14,769,320 to his brother, SW. (SW is Sam Waskal, theformer head of...
Illinois Use Tax Triggered By Transfer Of Aircraft To Revocable Trust
December 27, 2019 - Bulletin Print Report
In 2008, Michael L. Shakman, ("S"), bought an aircraft and paid corresponding general use tax. Several years later, using a bill of sale, he changed the legal o...
DraftKings Is Going Public
December 26, 2019 - Bulletin Print Report
DraftKings, Inc., known primarily for its fantasy sports operation, has entered into a definitive agreement with Diamond Eagle Acquisition Corporation, ("DEAC"), a pu...
Kirkland Lake Gold Will Acquire Detour Gold
December 26, 2019 - Bulletin Print Report
Recently, Detour Gold Corporation, ("DGC"), and Kirkland Lake Gold Corporation, ("KLG"),each a Canadian corporation, entered into an arrangement agree...
FASB Moves To Simplify The Accounting For Income Taxes
December 26, 2019 - Bulletin Print Report
The Financial Accounting Standards Board, ("FASB"), in its continuing quest to reduce complexity in applying accounting standards, has taken steps, with the issuance...
Virginia's "Add-Back" of License Fee Deductions
December 26, 2019 - Volume 13 Issue 247 Print Report
TP is engaged in the business of manufacturing. TP pays royalties to its parent for the use of patents, trademarks, and other intangible assets used in the manufactur...
Credit Sales Gains Are "Business Income"
December 24, 2019 - Bulletin Print Report
Petitioner is a California corporation and wholesale dealer of Honda products. Petitioner is subject to two Federal programs regulating the environmental attributes of its moto...
Beneficial Ownership Counts For Purposes of Sec. 269
December 24, 2019 - Volume 13 Issue 246 Print Report
Ten partners owned approximately 48 percent of H, a partnership. H managed the affairs of two investment companies, Corporation A, (CA), and Corporation B, (CB). The...
Sec. 754 Election Property Eligible For Investment Tax Credit
December 24, 2019 - Bulletin Print Report
In 2009, Lehman Brothers (LB) affiliate entities transferred their ownership interests in various entities to designated K affiliates. The K affiliates obtained the interests o...
Employer Found Liable For "Reversion" Excise Tax
December 24, 2019 - Bulletin Print Report
TP sponsors two qualified defined benefit pension plans, (the "Plans"), in its capacity as contractor for Agency and successor employer with respect to the Plans. The...
The Willens Deal Survey December 2019
December 23, 2019 - The Deal Survey: December 2019 Print Report
Welcome to our summary of deals for December 2019. 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....
Passed-Through Income Of 'S' Corporation Sourced To California
December 23, 2019 - Bulletin Print Report
Pabst Corporate Holdings, Inc., ("P"), a Delaware 'S' corporation, sold all of its shares of its qualified subchapter Ssubsidiary, Pabst Holdings, Inc.,...
IAC Discloses Separation Plan
December 23, 2019 - Bulletin Print Report
IAC/Interactive Corporation, ("IAC"), recently filed the eagerly anticipated "Transaction Agreement" in which it describes, in great detail, the manner in w...
Defective Administrative Complaint Precludes Article 7 Proceeding
December 23, 2019 - Bulletin Print Report
In a net lease dated October 10, 2007, the owner of 700 Waverly Avenue in Mamaroneck, New York, ("M"), leased it to petitioner, ("P"), for a period of 20 ye...
Losses Not Part of Gross Income
December 23, 2019 - Volume 13 Issue 245 Print Report
TP is a management investment company registered under the Investment Company Act of 1940 that elected to be taxed as a regulated investment company (RIC)....
Special Allocation Of Tax Credits By Partnership Permitted
December 20, 2019 - Bulletin Print Report
Investor, ("I"), is a limited liability company that was in existence during 2018. I intends to purchase, through its wholly-owned subsidiary, ("P"), certai...
Wages Found To Be Exempt Under U.S.-Russia Tax Treaty
December 20, 2019 - Bulletin Print Report
Petitioner, ("P"), is a Russian citizen. He was invited by UCLA to participate in an exchange visitor program as a research scholar. At some point, the UCLA program w...
Musician Engaged In A Trade Or Business
December 20, 2019 - Volume 13 Issue 244 Print Report
Petitioner, (P), began performing on the saxophone at the age of eight. He has played professionally since the age of 16. He attended Indiana University where he stud...
TIVO Takes Steps To Protect Its NOLs
December 19, 2019 - Bulletin Print Report
XperiCorporation, ("X"), and TiVo Corporation, ("T"), announced that they haveentered into a definitive agreement to combine "in an all-sto...
DD RMT Update
December 19, 2019 - Bulletin Print Report
Now that the "Separation and Distribution Agreement" has been filed, we have some more details with respect to the mechanics of the Reverse Morris Trust transaction t...
Split-Off Cannot Be A Device
December 19, 2019 - Volume 13 Issue 243 Print Report
In 1968, X corporation, (X), acquired all of the stock of Y corporation, (Y), which was owned by two shareholders, Mr. A and Mr. B, in a transaction qualifying as a r...
Lessee Of Pallets Liable For Sales Tax
December 19, 2019 - Bulletin Print Report
Tyson Fresh Meats, Inc., ("T"), is a beef manufacturing corporationthat processes and sells meat in Washington. H20, ("H"), is a corporation that manu...
Tallgrass Energy Is Being Acquired
December 18, 2019 - Bulletin Print Report
Tallgrass Energy L.P., ("TGE"), announced that it has entered into a definitive merger agreement pursuant to which affiliates of Blackstone Infrastructure Partners (a...
"Relator" Fee Includible In Gross Income
December 18, 2019 - Volume 13 Issue 242 Print Report
C was awarded and received a net $5.25 million qui tam payment from the government as a relator in two lawsuits settled against government contracto...
Absence Of Signed Plan Document Will Lead To Disqualification
December 18, 2019 - Bulletin Print Report
In Val Lanes Recreation Center v. Commissioner, T.C. Memo. 2018-92, the court found that the I.R.S. abused its discretion by revoking the Sec. 401(a) qualifi...
Excluded Shareholder Remained Beneficial Owner of Stock
December 17, 2019 - Volume 13 Issue 241 Print Report
K is a physician who specializes in radiation oncology. Around April, 1996, K and W agreed to provide radiation oncology services to patients in Florida through three...
Partnership Interest Bereft Of Liquidating Value And Future Value
December 17, 2019 - Bulletin Print Report
M is a limited liability company treated as a partnership for Federal income tax purposes. On April 1, 1998, the McMillin family formed C, a Delaware LLC. C was in the real est...
Speculative Notes Are Not "Cash Equivalents"
December 17, 2019 - Bulletin Print Report
In total, the Js and JFLPhave purchased at least 16 parcels of land consisting of over 2,300 acres and have subdivided the land into over 400 lots. At first, JFLP sold on...
DD To Engage In A Reverse Morris Trust Transaction
December 16, 2019 - Bulletin Print Report
International Flavors & Fragrances, Inc., ("IFF"), and DuPont, ("DD") announced that they have entered into a definitive agreement "for the merger...
Power Corporation Of Canada Announces A Restructuring Plan
December 16, 2019 - Bulletin Print Report
Power Corporation of Canada, ("POW"), owns approximately 64 percent of the common stock of Power Financial Corporation, ("PWF"). PWFalso has preferred...
Danaher Completes Tax-Efficient Divestiture Of Envista
December 16, 2019 - Bulletin Print Report
Danaher Corporation, ("D"), is on the precipice of completing a tax-efficient divestiture of EnvistaHoldings Corporation, ("E"), a subsidiary recently...
General Obligations Do Not Produce REIT Qualifying Income
December 16, 2019 - Volume 13 Issue 240 Print Report
An unincorporated trust, otherwise qualifying as a real estate investment trust, (REIT), invests in obligations of the Federal National Mortgage Association (FNMA), t...
Failure To File A Return Not Covered By Sec. 7434
December 13, 2019 - Bulletin Print Report
F (and the class of which he was a member) brings this action against NYTex Care, Inc., ("NYT"), alleging that Defendants willfully filed fraudulent tax information f...
Altria Seeks To Deduct Punitive Damages
December 13, 2019 - Bulletin Print Report
Altria Group, Inc., (AGI), timely field its 2012 tax return and timely and fully paid its tax liability. The I.R.S. audited AGI's return and made certain adjustments. A pai...
Court Sets Reasonable Compensation For 'S' Corporation Shareholder
December 13, 2019 - Volume 13 Issue 239 Print Report
In 2002, at the age of 54, after spending his entire career in the computer industry,M obtained a California real estate sales license and began to earn commiss...
California "DLPs" Are Exempt From Tax And Filing Requirements
December 12, 2019 - Bulletin Print Report
Taxpayer-Partner is a entity recognized for federal income tax purposes and is a partner, under local law, in a domestic (U.S.) limited partnership, (LP 1). The only other part...
Banking Fees Not Deductible Under Sec. 212
December 12, 2019 - Volume 13 Issue 238 Print Report
A, an individual taxpayer, maintains an interest-bearing checkingaccount with BK, a domestic bank. A is paid interest on amounts on deposit in the checking acco...
Independent Contractor Allowed To Deduct Some Commuting Expenses
December 12, 2019 - Bulletin Print Report
On September 17, 2013, P signed an "Independent Contractor Service Agreement," ("contract"), with FT. The contract stated that P would "provide tempora...
NLOK Rumors Can Have An Impact On Tax Treatment Of Special Dividend
December 11, 2019 - Bulletin Print Report
It has been reported that NortonLifeLock, Inc., ("N"), formerly known as Symantec Corporation, has attracted "deal interest" from a handful of companies, in...
Gain From Sale of Foreign Property Subject to Formula Apportionment
December 11, 2019 - Volume 13 Issue 237 Print Report
Petitioner, (P), is a New Jersey resident and is the owner and president of S. S is a New Jersey corporation. S does business in a number of states, including New Yor...
Land Use Restriction Credits Are Qualifying REIT Income
December 11, 2019 - Bulletin Print Report
Taxpayer, ("TP"), is a real estate investment trust, ("REIT"). TP owns an"a%" limited partnership interest in S. M owns a "b%" gen...
I.R.S. Cannot Waive Payment Of "Excess" APTC
December 11, 2019 - Bulletin Print Report
TP received a lump sum Social Security Disability payment in Year which included amounts allocated across...Years. For the taxable year, TP also received the benefit of advance...
Presence Of Non-Employees Does Not Preclude An "ATB"
December 10, 2019 - Bulletin Print Report
Distributing, ("D"), is owned in equal proportions by each ofSH1, SH2, and SH3, (the "Shareholders"). D is directly engaged inBusiness A. The Sh...
Cash And Accounts Receivable Are Assets
December 10, 2019 - Bulletin Print Report
Delcon Partners, LLC, ("D"), purchased assets valued at $1,150,000 from Seller, ("S"), an HVAC services business. D did not purchase S's cash, checking...
Income Derived From Procurement Activities Not FBCSI
December 10, 2019 - Volume 13 Issue 236 Print Report
TP andits subsidiaries form a U.S. based multinational company with operations around the world. TP indirectly owns FSub, a company organized under the laws of...
Chuck E. Cheese Denied A Sales Tax Refund
December 10, 2019 - Bulletin Print Report
CEC Entertainment, Inc., ("CEC"), owns and operates Chuck E. Cheese restaurants in Texas. These restaurants provide food, beverages, and entertainment. The entertainm...
VRNT Announces Separation Plan
December 9, 2019 - Bulletin Print Report
Verint Systems, Inc., ("VRNT"), the successor (by merger) to Comverse Technology, Inc., announced that its Board of Directors has approved "proceeding with a pla...
MoneyGram's Bank Aspirations Are Dashed
December 9, 2019 - Bulletin Print Report
MoneyGram International, Inc., ("MG"), is incorporated in Delaware and is headquartered in Texas. It is the parent of a group of companies that operate a global payme...
PG&E Reaches A Settlement Agreement With Tort Claimants
December 9, 2019 - Bulletin Print Report
PG&E Corporation and Pacific Gas & Electric Co., ("PGE"), haveagreed to a settlement with the "Official Committee of Tort Claimants" who susta...
CDs Are "Cash Items"
December 9, 2019 - Volume 13 Issue 235 Print Report
Sec. 851 and Sec. 856 of the Internal Revenue Code prescribe certain requirements that an entity must meet in order to qualify as a regulated investment company (RIC)...
Sale Of A Business Not A Non-Taxable Sale
December 6, 2019 - Bulletin Print Report
L entered into an agreement to sell an oil and gas equipment fabrication business and business assets, as well as real property located in Wyoming, to MM. The sale assets const...
A "Downstream" Merger Will Not Be Recast as a Liquidation
December 6, 2019 - Volume 13 Issue 234 Print Report
On July 12, 1972, C Corporation, (CC), was incorporated for the express purpose of acquiring the stock of NYFA, Inc., (NYFA). CC acquired all of the stock of NYFA own...
Shareholder Was True Borrower On Loan To Corporation
December 6, 2019 - Bulletin Print Report
Plaintiffs, ("Ps"), are the sole shareholders of CC, an 'S' corporation. MS is the proprietor of LLC, which owns the property upon which CC conducts its opera...
Blackstone's Incorporation Governed By Sec. 351
December 5, 2019 - Bulletin Print Report
Several high profile MLPshave converted, or are in the processof converting, to C corporation status, none more high profile than The Blackstone Group L.P. The impe...
RIC Stock Is Not QRP
December 5, 2019 - Volume 13 Issue 233 Print Report
Mr. A sold a number of shares of common stock of X corporation, (X), to the X employee stock ownership plan (ESOP). A written...
The Same Or Similar Trades Or Businesses
December 4, 2019 - Volume 13 Issue 232 Print Report
The taxpayer elected to be treated as a regulated investment company (RIC). The taxpayer owned 24 percent of the voting stock of X, a foreign holding company, and 100...
Cleveland-Cliffs To Acquire AK Steel
December 4, 2019 - Bulletin Print Report
On December 3, 2019, Cleveland-Cliffs, Inc., ("CC"), and AK Steel Holding Corporation, ("AK"), announced the execution of an Agreement and Plan of Merger by...
No Deduction For Abandonment of a Mutually Exclusive Alternative
December 3, 2019 - Volume 13 Issue 231 Print Report
The taxpayer is primarily engaged in Business A. The value of the taxpayer's stock remained stagnant between Year 1 and Year 2. In Date 1, the taxpayer engaged Co...
Parent-Child Exclusion Does Not Prevent Reassessment Of A Home
December 3, 2019 - Bulletin Print Report
A trust named H as both the grantor and trustee of such trust. R wasdesignated the successor trustee upon H's death. As successor trustee, the trust directs R to dist...
Husband's Sale Cannot Be Netted Against Wife's Purchase
December 3, 2019 - Bulletin Print Report
On August 13, 2018, CF purchased a 2018 Chevrolet for $30,789, minus a rebate of $2,519. On September 10, 2018, CF sold a 2008 Chevrolet for $4,700. On September 11, 2018, CF a...
Pain Management Center Does Not Market Compounded Drugs
December 2, 2019 - Bulletin Print Report
Center, ("C"), is a Missouri medical office that treats and manages patients' pain. This includes the medical service of injecting pain-relieving drugs administer...
State Tax Credits Constitute "Good" REIT Income
December 2, 2019 - Bulletin Print Report
TP has elected to be taxed as a real estate investment trust, ("REIT"). TP has over a "v%" general partnership interest in OP. OP is engaged in the ownershi...
Who Is The "Issuer" Of An Exchange Traded Option?
December 2, 2019 - Volume 13 Issue 230 Print Report
TP is a newly organized corporation that is registered with the S.E.C. as a management, open-end diversified investment company under the Investment Company Act of 19...
Schwab/TD Merger Not Assured Of Reorganization Status
November 29, 2019 - Bulletin Print Report
The Charles Schwab Corporation, ("S"), and TD AmeritradeHolding Corporation, ("T"), recently announced that they had entered into a definitive agreeme...
FBAR Penalties Apply On A Per-Account Basis
November 29, 2019 - Bulletin Print Report
B is a U.S. citizen. During 2010, B had a financial interest in, signature authority over, and/or otherwise controlled 14 financial accounts in the U.K. The U.K. accounts had c...
Sales Tax Rate In Effect Upon Purchase Is Controlling
November 29, 2019 - Bulletin Print Report
Petitioners, ("Ps"), purchased a Ford motor vehicle on September 25, 2018 for $51,796.24. On October 1, 2018, a one percent tax increase went into effect. The combine...
Annuity Does Not Pass Muster
November 29, 2019 - Volume 13 Issue 229 Print Report
Taxpayer A and Taxpayer B, (the TPs)are each life insurance companies. The TPs plan to issue non-qualified single premium immediate annuity contracts (the Contr...
Chemical Purchases Not Eligible For Use Tax Exemption
November 27, 2019 - Bulletin Print Report
Horsehead Corporation, ("H"), is a Delaware corporation with its primary place of business in Pittsburgh, Pennsylvania. It has a manufacturing facility located in Ill...
EBAY Positioned For A Partial Liquidation Distribution
November 27, 2019 - Bulletin Print Report
eBay, Inc., ("EBAY"), and viagogorecently announced that they have entered into a definitive agreement for EBAY to sell StubHub, ("SH"), to viagogo&nb...
No Deduction For Theft Of Untaxed Funds
November 27, 2019 - Volume 13 Issue 228 Print Report
B claimed a theft loss on his 2008 Minnesota tax return for funds misappropriated from his "traditional" IRA. The Commissioner of Revenue (the Commissioner)...
Mixed Use Building Is "Primarily Residential"
November 26, 2019 - Bulletin Print Report
The Property consists of one building with four floors and a cellar. The Property was purchased in 1962. The ground floor was used as a medical office by the owner from 1962 th...
Conveyance Of Multiple Units Eligible For Special "RPTT" Rate
November 26, 2019 - Bulletin Print Report
In 2012 TP purchased condominium unit XXX in the building located at XXXXX in New York City. In 2015, TP purchased the adjacent smaller condominium unit XXXX. Also in 2015, TP...
Foreign Currency Is Not "Securities"
November 26, 2019 - Volume 13 Issue 227 Print Report
On June 1, 1973, the taxpayer purchased currency of foreign country "M" in a transaction which wasentered into for profit.  ...
Preserving PCG's NOLs
November 25, 2019 - Bulletin Print Report
PG&E Corporation, ("PCG"), and the utility of which it is the parent, commenced their Chapter 11 cases with the Bankruptcy Court on January 29, 2019, and are pres...
Private Equity Funds Did Not Form A "Partnership-In-Fact"
November 25, 2019 - Bulletin Print Report
Sun Capital Advisors, Inc., ("SCAI"), is a private equity firm. SCAIestablished at least eight funds. Two of them, Sun Fund III and Sun Fund IV are the investor...
Value of Real Estate Contract Is Part of "Amount Realized"
November 25, 2019 - Volume 13 Issue 226 Print Report
On "d" the Taxpayers entered into a contract for the sale of a four family rental unit to P. The contract provided that , on the closing date, the Taxpayers...
Bad Debt Deductions Conditioned On The Existence Of Bona Fide Debt
November 22, 2019 - Bulletin Print Report
BJPconducted fracking services in Russia. It operated through a Russian subsidiary, BJR. In 2006, BJRentered into a three-year contract with T to provide fracking s...
Gain On Sale Of Subsidiaries Is Apportioned To Minnesota
November 22, 2019 - Bulletin Print Report
Holdings, ("H"), is an Arizona Subchapter S corporation that was doing business as Go Daddy, ("GD"). Mr. P was H's sole shareholder. Through domestic an...
Receipt Of Common Stock For Preferred Stock Not An "Acquisition"
November 22, 2019 - Volume 13 Issue 225 Print Report
Fund, (F), has qualified to be taxed as a regulated investment company (RIC). F seeks long-term capital appreciation by making venture capital investments in private...
COTY Purchases A Controlling Interest In King Kylie LLC
November 21, 2019 - Bulletin Print Report
Although by no means the largest deal of the year, one of the most scrutinized transactions of the recent past is Coty, Inc.'s investment in Kylie Jenner's burgeoning c...
Foreign Trust Owner Avoids Late Filing Penalties
November 21, 2019 - Bulletin Print Report
Mr. Joseph A. Wilson, ("W"),established an offshore trust in 2003. W named himself the grantor of the trust and was its sole owner and beneficiary. The purpose...
Basis of Property Received In Liquidation
November 21, 2019 - Volume 13 Issue 224 Print Report
Plaintiffs were shareholders in WFT which owned"the plantation" and other assets. On December 30, 1936, the corporation was liquidated and 1/2 of the...
CDs Are Not "QRP"
November 20, 2019 - Volume 13 Issue 223 Print Report
X is a domestic corporation that has no stock outstanding that is readily tradable on an established securities market. A owns 62.5 percent of the common stock of X;...
Lack Of Billing Statement Does Not Mitigate "PTC" Tax
November 20, 2019 - Bulletin Print Report
In November 2013, P was unemployed and did not have health insurance. P accessed theHealth Insurance Marketplace, ("M"), website and applied for health insuranc...
Buyer Of Assets Not Responsible For Seller's Tax Liabilities
November 20, 2019 - Bulletin Print Report
P and SW entered into a Royalty Agreement, ("Agreement"), on March 30, 2016 for the purchase of certain assets. Texas Tax Code Sec. 31.081 provides: (a) This section...
Software Executive Did Not Abandon Massachusetts Domicile
November 19, 2019 - Bulletin Print Report
On October 14, 2011, Appellant, ("APP"), filed a Form 1-Nonresident/Part-Year Resident Income Tax Return ("F1") as a resident from January 1, 2010 to June 1...
School Buses Are Not "For Hire"
November 19, 2019 - Bulletin Print Report
First Student, Inc., ("FS"), owns and operates school buses. These buses are primarily used to provide transportation services for schoolchildren through contracts wi...
"Simplified Method" of Basis Recovery Upheld
November 19, 2019 - Volume 13 Issue 222 Print Report
In 1991, Mrs. Zedaker, (MZ), returned to the profession of teaching and deposited $149,553.01 in her California State Teachers' Retirement System (CalSTRS) accoun...
The Willens Deal Survey November 2019
November 18, 2019 - The Deal Survey: November 2019 Print Report
Welcome to our summary of deals for November 2019. 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....
VAT Is Included In The Sales Factor
November 18, 2019 - Bulletin Print Report
Value Added Tax, ("VAT"), is an indirect tax imposed by, and remitted to, many foreign jurisdictions as a consumption tax on the provision of both goods and services,...
Hedge Fund Manager Scores Connecticut Resident Tax Credit
November 18, 2019 - Bulletin Print Report
Plaintiff, ("P"), and his brother, PS, were the sole members of a limited partnership, LAM LLC, which acted as the general partner of two limited partnerships, LAM LP...
Lack of Liquidation Value Establishes Worthlessness
November 18, 2019 - Volume 13 Issue 221 Print Report
On July 1, 1929, petitioner purchased 325 shares of common stock of FIC, an investment trust, dealing in securities, to a substantial extent on borrowed money. The st...
Built-In Gain Update
November 15, 2019 - Bulletin Print Report
The I.R.S. has now acknowledged that, as regards the pending elimination of the "Sec. 338 Approach"* to the determination of "recognized built-in gains," &q...
The "SRP" Cannot Be A Priority Claim
November 15, 2019 - Bulletin Print Report
Debtors filed their petition for relief on February 16, 2019. The I.R.S. filed a proof of claim and later amended it, ("Amended Claim"). Of the total amount, the Serv...
Agent Did Not Have Unreported Gross Income
November 15, 2019 - Volume 13 Issue 220 Print Report
Petitioner was 22 years old during 2003, and he intended to pursue a career in the construction business. Petitioner was generally familiar with his father's cons...
AOBC's Spin-Off Appears To Be Motivated By "Adverse Market Perception"
November 14, 2019 - Bulletin Print Report
American Outdoor Brands Corporation, ("AOBC"), announced that its board of directors has unanimously approved a plan to spin-off its outdoor products and accessories...
Invalid Regulation Does Not Control Size Of "FBAR" Penalty
November 14, 2019 - Bulletin Print Report
N opened a foreign bank account with UBS in 1999. She opened a "numbered" account, as opposed to a "named" account. From 2001 through 2008, her account bala...
When Can The N.Y. Knicks Be Acquired?
November 14, 2019 - Bulletin Print Report
The Madison Square Garden Company, ("MSG"), announced that its board of directors has approved "pursuing a revised plan for the proposed separation of its sports...
"Securing The Benefit" of a Deduction
November 14, 2019 - Volume 13 Issue 219 Print Report
The taxpayer, E, a C corporation,incurred losses while engaged in the business of selling home appliances. It disposed of all its assets and the shares were sol...
Loss Corporations Seek "Grandfathering" Of "Sec. 338 Approach"
November 13, 2019 - Bulletin Print Report
Where a "loss corporation" experiences an "ownership change," certain limitations are placed upon the amount of taxable income, for any taxable year ending...
Life Beneficiaries' Interest In Land Constitutes Replacement Property
November 13, 2019 - Volume 13 Issue 218 Print Report
Under the will of a decedent, several tracts of land were held in trust by a trustee for investment purposes. The income from the land was payable to designated indiv...
Petition For Refund Found To Be Untimely
November 13, 2019 - Bulletin Print Report
Sec. 3003.1(a) of the Tax Reform Code of 1971 (Pennsylvania) provides: "For a tax collected by the Department of Revenue...a taxpayer who has actually paid tax...may petit...
Split-Off Of A "QSub"
November 12, 2019 - Bulletin Print Report
D is an 'S' corporation. A, B, C1, and D1 collectively own 50 percent of the stock of D. B, C1, and D1 are the children of A. E, F, G, and H collectively own the remain...
Advisory Fees Are An Expense Of The Annuity Contract
November 12, 2019 - Bulletin Print Report
TP is a life insurance company and is a subsidiary of Parent. TP intends to offer three non-qualified deferred annuity contracts, (the "Contract"). The Contract will...
SunPower's Spin-Off Will Feature An Equity Infusion
November 12, 2019 - Bulletin Print Report
SunPower, (SPWR), hasannounced ambitious plans to separate itselfinto two "independent, complementary, strategically-aligned, and publicly-traded companies--Su...
The Attribution Rules Do Not Apply to Sec. 269
November 12, 2019 - Volume 13 Issue 217 Print Report
Mr. A directlyowned 100 percent of the stock of M Corporation, (M), and 10 percent of the stock of X Corporation, (X). M directlyowned 45 percent of the s...
I.R.S. Approves Retention Of "Spinco" Securities
November 11, 2019 - Bulletin Print Report
Distributing, ("D"), a widely held State A corporation, is the common parent of an affiliated group that files a consolidated federalincome tax return, (the &qu...
Employer Debt Contributed To Pension Plan
November 11, 2019 - Bulletin Print Report
Company, ("C"), provides insurance productsand financial services, and uses a calendar year accounting period and accrual method of accounting for federal incom...
Income Derived From Sand Constitutes Qualifying Income
November 11, 2019 - Volume 13 Issue 216 Print Report
X is a limited liability company organized under the laws of State. X intends to contribute all or a portion of its assets to a new limited partnership, Y. After the...
Purchases Of Natural Gas Not Deductible
November 8, 2019 - Bulletin Print Report
The taxpayer, ("TP"), co-owns, L, a power plant in New Mexico. TP purchases natural gas from various third parties for use in producing electricity at the plant. TP a...
Deducting Accrued Interest on Convertible Debentures
November 8, 2019 - Volume 13 Issue 215 Print Report
TP issued debentures which bear interest that is payable semi-annually on Date Y and on Date Z of each year. The debentures are convertible at the option of the holde...
Asset Purchase Agreement Did Not Shift Burden Of Sales Tax
November 8, 2019 - Bulletin Print Report
In 2016, pursuant to an asset purchase agreement, Plaintiffs sold Defendants the "GM" for a total of $6 million. The sale included...all real property and assets--bot...
Taylor Morrison And William Lyon To Join Forces
November 7, 2019 - Bulletin Print Report
Taylor Morrison Home Corporation, ("TMHC") and William Lyon Homes, ("WLH"), have entered into a definitive agreement pursuant to which TMHC"will...
Bulk Sales and the NYC RPTT
November 7, 2019 - Volume 13 Issue 214 Print Report
Under the New York City (NYC) Real Property Transfer Tax (RPTT), transfers of real property are taxable provided the consideration for the transfer is more than $25,0...
Sourcing Investment Advisory Receipts For Illinois Tax Purposes
November 7, 2019 - Bulletin Print Report
TP is an investment advisor located in Illinois and is designated as a C corporation. TP earns the majority of its revenue for services it performs as the investment advisor fo...
Travel To Timber Properties Found To Be Deductible
November 6, 2019 - Bulletin Print Report
P, during the early 1980s, inherited from his mother more than 100 acres of Washington State land. The land was in two counties and P traveled substantially every week to take...
Gain From Taxable Liquidation Is "Business Income"
November 6, 2019 - Volume 13 Issue 213 Print Report
TP, which is incorporated in Ohio but commercially domiciled in North Carolina, manufactures waste handling and recycling equipment for residential and commercial use...
Pre-'B' Dividends Not Treated as Consideration For the Stock
November 5, 2019 - Volume 13 Issue 212 Print Report
Operating Company, (OC), is owned by BB, a group offormer employees, and a KSOP. The board of directors of OC has determined that creating a public market for i...
Cycle Bar Classes Are "Taxable Commercial Recreation"
November 5, 2019 - Bulletin Print Report
CBFis an indoor, stationary cycling fitness franchisor of over 400 CB studios in the U.S., Canada, and the U.K. Petitioner CJHis the franchisee of a studio that it...
"Merchant" Not Eligible For Sales Tax Exemption
November 5, 2019 - Bulletin Print Report
The taxpayer, ("TP"),contracts with land owners for the right to obtain pine straw. The pine trees that eventually produced the pine straw were not planted by T...
Corporate Disbursements Gave Rise To "Constructive Dividends"
November 5, 2019 - Bulletin Print Report
S is the owner of SESP. Throughout 2010, S maintained a business checking account in his name; and another such business checking account in the name of SESP. S never filed inc...
Reverse Inversion Of Wright Medical Group N.V.
November 4, 2019 - Bulletin Print Report
This morning, another so-called "reverse inversion" was announced. We may have something of a trend at work here, when oneconsiders the recent reverse inversion...
Boat Slips Are Real Property
November 4, 2019 - Bulletin Print Report
TP has elected to be treated as a real estate investment trust, ("REIT"). TP owns substantially all of the interests in a limited liability company that is classified...
Gain On Sale Of Vacant Land Excluded Under Sec. 121
November 4, 2019 - Bulletin Print Report
TP 1 purchased Property 1 as a principal residence on Date 1 for Amount 1. TP 1 and TP 2 were married on Date 2. TPs used Property 1 as their principal residence from Year 1 to...
Litigation Award Sourced To Massachusetts
November 4, 2019 - Bulletin Print Report
APP was a Delaware corporation whose principal place of business was in Massachusetts, ("M"). APP was classified as a manufacturing corporation for M corporate excise...
Intervening Merger Will Not Taint Previously Announced Split-Off
November 4, 2019 - Volume 13 Issue 211 Print Report
The Prior Ruling Letter (issued to Viacom) concerned a proposed split-off transaction, (the "Split-off Transaction"). The Proposed Split-off has not, as yet, been con...
End-Users Of Microsoft Software Were Not Its Licensees
November 1, 2019 - Bulletin Print Report
Microsoft Corporation, ("M"), is engaged in the business of developing, distributing, and licensing computer software. OEMs are businesses, for example Dell or Hewlet...
Parent Surrendered Beneficial Ownership of Sub Stock To Creditor
November 1, 2019 - Volume 13 Issue 210 Print Report
For the fiscal year ended March 31, 1971, X elected to file, and did file, a consolidated income tax return which included M....
Cannabis Operating Costs Not Deductible in Illinois
November 1, 2019 - Bulletin Print Report
Company, ("C"), is a medical cannabis dispensary. C's principal operationis the sale of "Product" to serve the medical needs of registered patient...
Digital Realty Trust Will Expand Abroad
October 31, 2019 - Bulletin Print Report
Digital Realty Trust, a real estate investment trust, ("REIT"), and InterXion N.V. announced that they have entered into a definitive agreement "to combine their...
Gross Receipts From Deemed Sale of Assets Not In Sales Factor
October 31, 2019 - Volume 13 Issue 209 Print Report
TP was owned by P. P sold the stock of TP to an unrelated third party purchaser. The parties, TP and the purchaser, executed an election under Sec. 338(h)(10) with re...
Absence Of Utility Company Metering Prevents Solar Tax Credit
October 31, 2019 - Bulletin Print Report
JR resides in Des Moines, Iowa. He installed an eight-panel solar array on his property in 2015. The array was connected to a Mid-American Energy bi-directional meter located o...
RSUs And DCPs Are "Paid In Illinois"
October 31, 2019 - Bulletin Print Report
M is a retired full time Illinois resident who will continue to receive "RSU" and "DCP" income from Illinoisthat Company, i.e., the company from which...
Prologis, Inc. To Acquire Liberty Property Trust
October 30, 2019 - Bulletin Print Report
Prologis, Inc. and Liberty Property Trust, each of which are real estate investment trusts, ("REITs"), announced that the companies have entered into a definitive mer...
Qualifying Child Need Not Be A Dependent
October 30, 2019 - Bulletin Print Report
On February 1, 2015, P timelyfiled a New York State and City tax return on which wage income and Schedule C income was reported. P filed as "head of household"...
A Reorganization Needs a Non-Tax Business Purpose
October 30, 2019 - Volume 13 Issue 208 Print Report
ACQ, a domestic corporation, and its U.S. subsidiaries ("the Group") file a consolidated income tax return. In 1983, the Group reported a loss of nearly $2...
Texas Franchise Tax Is Not An "Occupation" Tax
October 30, 2019 - Bulletin Print Report
Claimant, ("C"), is a registered motor carrier that provides passenger transportation services. Its headquarters are in Ohio, but it operates throughout the United St...
Eaton Avoids Underpayment Penalties
October 29, 2019 - Bulletin Print Report
On July 26, 2017, the court filed its opinion in this case, known as "Eaton II," which stated at the end: "Decision will be entered under Rule 155." The par...
Exercise of Rights Rescinded
October 29, 2019 - Volume 13 Issue 207 Print Report
The stock of X consisted of a single class of common stock. In 1973, the directors of X distributed to its common shareholders transferable rights to subscribe, on or...
Member Of LLC Treated As "Doing Business" In California
October 29, 2019 - Bulletin Print Report
APP is a foreign single-member LLC domiciled in Georgia. It was not, and has never been, registered to do business in California. During 2013, APP held a 50 percent interest in...
Merger Of Family Corporations Produces A "Disguised" Gift
October 29, 2019 - Bulletin Print Report
In 1979, the Cs (MRS and MR), incorporated K. MRS owned 51 percent of K's stock and MR owned 49 percent thereof. Years later,KE, P, and J, the sons of MRS and MR, inc...
Deemed Partnership Distributions Produce Partner Level Gains
October 28, 2019 - Bulletin Print Report
TT5is a California limited liability company, (LLC), owned, as of the beginning of 2007, by B (72.5 percent), APP (22.5 percent), and 1251 LLC (five percent). During 2007...
Repurchases Of Stock Following A Spin-Off
October 28, 2019 - Bulletin Print Report
D2 was the parent of a worldwide group of domestic and foreign entities. Pursuant to transactions described in PLR-1300090-15 (February 24, 2016), D2 effectuated the distributi...
Stock Received In Merger Is "Acquired" On the Merger Date
October 28, 2019 - Volume 13 Issue 206 Print Report
X, a dealer in securities, has, for many years, engaged in the purchase and sale of Y stock. On July 31, 1973, in a transaction qualifying as a reorganization under S...
Installation Of Cabling Constitutes A "Construction Contract"
October 25, 2019 - Bulletin Print Report
During a rehabilitation of its headquarters in Columbus, Ohio, Nationwide Mutual Insurance Company, ("N"), engaged contractors to install communications lines, which...
Temporary Suspension Of Voting Rights
October 25, 2019 - Volume 13 Issue 205 Print Report
A owned100 percent ofthe stock of X. On March 13, 1977, M acquired all the X stock from A solely in exchange for 100,000 shares of M voting stock. The exc...
Sec. 280E Is Not A Penalty Provision
October 24, 2019 - Bulletin Print Report
P is a California corporation owned by DRF. P does not dispute that its business consists of operating a medical marijuana dispensary. Sec. 280E of the Internal Revenue Code pr...
Allocating Earnings and Profits
October 24, 2019 - Volume 13 Issue 204 Print Report
The corporation, (C), had a deficit in accumulated earnings and profits of $60x as of January 1, 1973. However, C had $60x of earnings and profits of the taxable year...
Purchase Of Business Not Exempt From Sales Tax
October 24, 2019 - Bulletin Print Report
D purchased assets valued at $1.15 million from S, an HVAC services business. D did not purchase any of S's cash, checking and savings accounts, accounts receivable, promis...
Club Membership Fees Subject To California Sales Tax
October 23, 2019 - Bulletin Print Report
APP, a California limited liability company, operated Tower Club, (the "club"), a members-only facility located in Oxnard, California, from April 2011 until it was so...
CBS/Viacom--"Like A Pooling"
October 23, 2019 - Bulletin Print Report
On August 13, 2019, CBS Corporation, ("CBS"), and Viacom, Inc., ("V"), entered into an Agreement and Plan of Merger which is now on the brink of being consu...
The Willens Deal Survey October 2019
October 23, 2019 - The Deal Survey: October 2019 Print Report
Welcome to our summary of deals for October 2019. 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. <...
Non Wash Sale Loss Disallowed
October 23, 2019 - Volume 13 Issue 203 Print Report
Petitioner, (P), has been a member of the New York Coffee and Sugar Exchange (the "Exchange")since 1925. P's activities consisted of acting as a b...
Gain From Short Sale Not UBTI
October 22, 2019 - Volume 13 Issue 202 Print Report
Employer M maintains Plan X, a qualified plan under Sec. 401(a) of the Internal Revenue Code. Plan X intends to engage in certain 'short sale' transactions.
"Clean Rooms" Are Not Fixtures
October 22, 2019 - Bulletin Print Report
The taxpayer specializes in the design, manufacturing, installation, and services associated with modular "clean rooms" for their customers. The purpose of a clean ro...
Event Tickets Are Not "Services"
October 22, 2019 - Bulletin Print Report
G operates Parx Casino. G distributes complimentary event tickets to patrons as a result of their table game and slot machine play. The Commonwealth of Pennsylvania, (the "...
"Straddle" Tax Years Must Be Bifurcated
October 22, 2019 - Bulletin Print Report
The Debtors provided "non-standard" personal automobile insurance policies to individual consumers who were unable to obtain insurance from "standard" autom...
Hudson's Bay Company To Be "Taken Private"
October 21, 2019 - Bulletin Print Report
Hudson's Bay Company, ("HBC"), announced, on October 21, 2019, that, "following an extensive review and analysis," it has entered into a definitive &quo...
Alexion To Acquire Achillion
October 21, 2019 - Bulletin Print Report
Alexion Pharmaceuticals, Inc., ("AL"), entered into an Agreement and Plan of Merger with "Merger Sub," a newly formed, wholly-owned subsidiary of AL, and Ac...
Non-Profit Entities Are Corporations
October 21, 2019 - Bulletin Print Report
Sec. 6621(a)(1) of the Internal Revenue Code requires the I.R.S. to apply a lower interest rate for refunds owed to "corporations," than for refunds owed to other typ...
Directors' Fees Not Sourced To California
October 21, 2019 - Bulletin Print Report
Company, ("C"), is commercially domiciled outside of California in the state of "X." The business of C is managed under the direction of its Board of Direct...
Income From Mining and Processing Kaolin Is Qualifying Income
October 21, 2019 - Volume 13 Issue 201 Print Report
X is a limited liability company organized under the laws of State. X intends to contribute all or a portion of its assets to a new limited partnership, Y. After an i...
Statutory Liens Cannot Be Avoided
October 18, 2019 - Bulletin Print Report
Debtor filed a Petition for relief under Chapter 13 on March 8, 2019. The Internal Revenue Service, ("I.R.S."), filed its Proof of Claim on June 11, 2019. The I.R.S....
Misappropriated Income Is Nevertheless Included In Gross Income
October 18, 2019 - Bulletin Print Report
N's husband died in 2002, leaving behind substantial assets to provide for her care for the remainder of her life. N's son, C, was named the executor of N's husband...
Managing One's Investments Is Not "Carrying On a Trade or Business"
October 18, 2019 - Volume 13 Issue 200 Print Report
Petitioner, with extensive investments in real estate, bonds, and stocks, devoted a considerable portion of his time to the oversight of his interests and evenh...
MGM To Engage In A Tax Efficient "Leveraged Partnership" Transaction
October 17, 2019 - Bulletin Print Report
MGM Resorts International, ("Parent"), announced that it has entered into a definitive agreement to form a joint venture, BCore Paradise JV LLC,("JV")...
Valuable Consideration Renders Aircraft Eligible For Use Tax Exemption
October 17, 2019 - Bulletin Print Report
BA purchased an aircraft from Cessna Finance Corporation in Kansas. That same day, BA entered into an aircraft lease agreement with B, a common carrier that provides charter tr...
Finder's Fee Ruled Nondeductible
October 17, 2019 - Bulletin Print Report
Plano Molding Co., ("P"), specializes in the manufacture of plastic storage equipment for outdoor sports. In February 2007, Tinicum Capital Partners, ("T"),...
CFC Does Not Generate Foreign Base Company Income
October 17, 2019 - Volume 13 Issue 199 Print Report
TP is the "x%" owner of USS, a domestic corporation which indirectly owns "y%" of a controlled foreign corporation (CFC). CFC, in turn, owns "...
PE To Acquire JAG
October 16, 2019 - Bulletin Print Report
Parsley Energy, Inc., ("PE"), and Jagged Peak Energy, Inc., ("JAG"), announced, on October 14, 2019, that they have entered into a definitive merger agreeme...
Book Value of Inventory Constitutes Personal Property Tax Base
October 16, 2019 - Volume 13 Issue 198 Print Report
Rich's Department Stores, Inc., (R),employed the "retail inventory method" to account for its merchandise inventory. &...
Refund Of "RPTT" Denied
October 15, 2019 - Bulletin Print Report
Petitioner, ("P"), is a tax-exempt organization, recognized as such by Internal Revenue CodeSec. 501(c)(3) and City Administrative Code Sec. 11-2106(b)(2). P is...
Virginia Does Not Allow A Deduction For "Creditable" Expenses
October 15, 2019 - Bulletin Print Report
The taxpayers were shareholders of a subchapter S corporation, (the "Corporation"). On its 2016 federal income tax return, the Corporationclaimed a credit pursu...
A Tax Exempt Organization's Subpart F Inclusion Is Not UBTI
October 15, 2019 - Volume 13 Issue 197 Print Report
A is the exempt domesticholding company of B, a hospital exempt from federal income tax under Sec. 501(c)(3) of the Internal Revenue Code. A has formed a contro...
What Does IAC Have In Mind?
October 14, 2019 - Bulletin Print Report
IACbeneficially owns 16,402,602 shares of Common Stock of Match Group, Inc., ("MGI"), representing approximately 23 percent of the total outstanding shares of M...
Whiskey Barrels Are Exempt From Property Tax
October 14, 2019 - Bulletin Print Report
The subject property consisted of previously-unused whiskey barrels Brown-Forman Corporation, ("BF"), either built or acquired. Once the barrels arrived at the local...
Effect of Contribution to Capital Upon Basis of Contributor's Stock
October 14, 2019 - Volume 13 Issue 196 Print Report
N is incorporated under the laws of State X. All of the outstanding common stock of N is owned by M, an individual. M desires...
RIC Stock Dividend Not Taxable
October 11, 2019 - Volume 13 Issue 195 Print Report
X Corporation, (X), distributed, pro-rata, shares of its preferred stock to the holders of its common stock. The preferred st...
"Airdrops" Of Cryptocurrency Result In Gross Income
October 11, 2019 - Bulletin Print Report
Virtual currency is a digital representation of value that functions as a medium of exchange, a unit of account, and a store of value other than a representation of the United...
Contingent Voting Rights Are Disregarded
October 10, 2019 - Volume 13 Issue 194 Print Report
A is the common parent of a group of affiliated corporations. A owns "h" shares of the common stock and "i" shares of the voting preferred stock o...
Wisconsin's Tax On Railroad Property Is Discriminatory
October 10, 2019 - Bulletin Print Report
Chapter 70 of the Wisconsin Tax Code governs the taxation of manufacturing and commercial companies aside from railroads and utilities companies. Chapter 76 governs the taxatio...
NAP To Be Acquired In A "Two-Tier" Deal
October 10, 2019 - Bulletin Print Report
Impala Platinum Holdings Limited, ("IMP"), announced that it has entered into a definitive agreement to acquire 100 percent of the outstanding shares in Canadian PGM&...
District Court Cannot Adjudicate An Overpayment Interest Dispute
October 10, 2019 - Bulletin Print Report
Federal courts, it goes without saying, must have a statutory basis to exercise jurisdiction. Plaintiffs bring this lawsuit against the government seeking to recover interest b...
Transitory Ownership Does Not Terminate 'S' Election
October 8, 2019 - Volume 13 Issue 193 Print Report
Corporation, ("C"), is an 'S' corporation. The "continuing shareholders" collectively own "a%" of the total stock of C. The &quo...
Distributions To Shareholder/Employees Characterized As Dividends
October 8, 2019 - Bulletin Print Report
Shore Building Contractors, Inc., ("SB"), is a closely-held corporation that acts as general contractor in the construction industry. J and C, unrelated individuals,&...
Are "LIHTCs" Considered In Determining Fair Market Value Of Realty?
October 8, 2019 - Bulletin Print Report
OCGA Sec. 48-5-2(3) defines the phrase, fair market value of property, for purposes of ad valorem real property taxation, as "the amount a knowledgeable buyer would pay fo...
CJ's Dividend Should Not Be "Extraordinary"
October 7, 2019 - Bulletin Print Report
C&J Services, Inc., ("CJ"), announced, on October 4, 2019,that its Board of Directors has declared, "contingent on further action by the Board to estab...
Hess Midstream Partners To Restructure
October 7, 2019 - Bulletin Print Report
Hess Corporation, ("HC"), and Global Infrastructure Partners, ("GIP"), each owns an approximate 34 percent limited partnership interest in Hess Midstream Pa...
SIX/FUN - Updated 10/7/19
October 7, 2019 - Bulletin Print Report
We thought it would be a good idea to address several of the quest...
Alternative Investments Are Not Jeopardizing Investments
October 7, 2019 - Volume 13 Issue 192 Print Report
Y is exempt from tax under Sec. 501(c)(3) and is classified as a private foundation under Sec. 509(a). Y provides grants to charities in furtherance of its charitable...
NOLs Of Acquired Corporations Reduce Maryland Modified Income
October 4, 2019 - Bulletin Print Report
Petitioner, ("P"), challenges the Comptroller of Maryland'sposition of denying P's federal net operating losses, ("NOLs"), for Maryland corpor...
Reliance On Revenue Ruling Does Not Avoid Negligence Penalty
October 4, 2019 - Bulletin Print Report
BMEis contesting the I.R.S.'s assessment of Black Lung Excise Taxes, ("ET"). The ET is imposed by Sec. 4121 of the Internal Revenue Code which provides: &qu...
Redemption of Stock Acquired In Satisfaction of a Monetary Bequest
October 4, 2019 - Volume 13 Issue 191 Print Report
A decedent bequeathed outright to his wife "an amount sufficient to utilize the marital deduction to the maximum extent allowed by Sec. 2056 after taking into co...
Shipping Goods Into Ohio Led To Imposition Of "CAT"
October 3, 2019 - Bulletin Print Report
Mia Shoes, Inc., ("MS"), is a wholesaler of footwear headquartered in Miami, Florida. MS designs and manufactures footwear, then distributes such footwear to customer...
Taxpayer's Altruism Does Not Net A Dependency Exemption Deduction
October 3, 2019 - Bulletin Print Report
During 2012, petitioner-wife, ("PW"), worked at MTC, and petitioner-husband, ("PH"), worked at the USPS. Sometime before 2012, PW met LT. In late 2011, LT a...
Partnership Not Entitled To S.C. Infrastructure Tax Credit
October 3, 2019 - Volume 13 Issue 190 Print Report
CH is a general partnership that operates in South Carolina and is wholly owned by CII's three corporate affiliates. CII is a corporation. CH acquires and develop...
Grantor Trust Is A Separate Entity
October 3, 2019 - Bulletin Print Report
The Rs, husband and wife, are the sole grantors, trustees, and beneficiaries of the R Family Trust, ("Trust"). The Rs are treated, for federal income tax purposes, as...
Transfer of Stock to Executor Not a "Sale Or Other Disposition"
October 2, 2019 - Volume 13 Issue 189 Print Report
A taxpayer, who was not a dealer in securities, purchased shares of stock of a corporation in 1968 for $30 per share. The tax...
"AAA" Is Eliminated Following Expiration Of The "PTTP"
October 2, 2019 - Bulletin Print Report
Plaintiffs are shareholders in three family-owned corporations: LSWARE, LSWASH, and LSB, (the "Corporations"). Throughout their history, these companies toggled betwe...
Disability Benefits Are "Wages" Subject To Withholding
October 2, 2019 - Bulletin Print Report
These motions, the court explained, arise from a settlement of an action to collect disability benefits under various sections of ERISA. According to the Plaintiff, ("P&qu...
Determining A REIT's "Capital Interest" In A Partnership
October 2, 2019 - Bulletin Print Report
Taxpayer, ("TP"), a limited liability company, intends to elect to be a real estate investment trust, ("REIT"). Government Entity and one or more non-govern...
Minority Partner Not Doing Business In California
October 1, 2019 - Bulletin Print Report
APP is a foreign LLC formed in Washington State. For the years in issue, it was not registered to do business with the California Secretary of State, ("SOS"). In Dece...
Taxpayer Denied Nonbusiness Bad Debt Deduction
October 1, 2019 - Volume 13 Issue 188 Print Report
During 2008, petitioner sold an apartment building and realized a significant capitalgain on the sale. She reported this gain under the installment method....
Fannie Mae Is Not A Governmental Body
October 1, 2019 - Bulletin Print Report
Plaintiff, ("P"), filed a complaint alleging that she was improperly assessed Chicago's transfer tax on property transferred to her by Fannie Mae, ("FM"...
The Value Of Stock Must Take Into Consideration A Pending Merger
October 1, 2019 - Bulletin Print Report
Donor, ("D"), is a co-founder and Chairman of the Board of Directors of Corporation A, ("CA"), a publicly traded corporation. On Date 1, D transferred Share...
Tax Credit Denied to Producer Of Alternative Fuel Mixture
September 27, 2019 - Bulletin Print Report
Sec. 6426(e) of the Code allows taxpayers to obtain a credit for producing any alternative fuel mixture for sale or use in a trade or business of the taxpayer.
Redemption of Interest In an Investment Trust
September 27, 2019 - Volume 13 Issue 187 Print Report
TR is an arrangement created under a trust instrument and classified as a trust under Reg. Sec. 301.7701-4(c). TR holds a fixed portfolio consisting of common stock i...
Johnson & Johnson Scores A Refund Of NJ "Insurance Premium Tax"
September 26, 2019 - Bulletin Print Report
Johnson & Johnson, ("J"), is a New Jersey corporation headquartered in New Brunswick, New Jersey.In 1970, J formed Middlesex Assurance Company, ("MA&qu...
Avoiding Exposure To Environmental Liabilities Drives A Spin-Off
September 26, 2019 - Volume 13 Issue 186 Print Report
Distributing, ("D"), a State X corporation, has two classes of stock outstanding, Class A and Class B. The Class A shares are voting shares while the Class B shares a...
Elliott Management's Plan For Marathon Is Tax-Efficient
September 25, 2019 - Bulletin Print Report
Elliott Management, (EM), has come out with a comprehensive and obviously well thought out plan for the restructuring of Marathon Petroleum Corporation (MPC). EM has some histo...
"Tax Gross-Up Award" Denied Aggrieved Party
September 25, 2019 - Bulletin Print Report
S is a limited partnership formed by G and P to manage housing properties. Each partner owned a 2.5 percent general partnership interest and a 47.5 percent limited partnership...
Seller Of Multiple Motor Vehicles Denied A Sales Tax Credit
September 25, 2019 - Bulletin Print Report
On February 26, 2017, the Ks sold a Ford truck for $10,500. Two weeks later, the Ks sold a Kawasaki motorcycle for $3,900. On March 14, 2017, the Ks purchased a Dodge truck for...
Patent Infringement Payments Constitute Business Income
September 25, 2019 - Volume 13 Issue 185 Print Report
Client, (C), is a corporation that files as part of an Arizona consolidated return with its Parent (the "Arizona Affiliated Group"). &...
Lessor Not Entitled To Solar Energy Device Tax Credit
September 24, 2019 - Volume 13 Issue 184 Print Report
Company, (C), is a solar equipment leasing company. C is organized as a limited liability company (LLC)and istaxed as a partnership. C desires to install,...
"ATVs" And "UTVs" Are "Motor Vehicles"
September 24, 2019 - Bulletin Print Report
Petitioner, ("P"), sells all-terrain vehicles, ("ATVs"), side-by-side vehicles or utility task vehicles, ("UTVs"), motorcycles, and utility traile...
Massachusetts Tax Credit Allowed For CT "Pass-Through Entity" Tax
September 24, 2019 - Bulletin Print Report
Massachusetts, ("M"), law generally provides for a credit (the "Sec. 6(a) credit") against taxes imposed under chapter 62 on M residents for taxes due any o...
The Willens Deal Survey September 2019
September 23, 2019 - The Deal Survey: September 2019 Print Report
Welcome to our summary of deals for September 2019. 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....
Overstock.com To Declare "Unusual" Stock Dividend
September 23, 2019 - Bulletin Print Report
Overstock.com, Inc., ("OSTK"), announced, on July 30, 2019, that its Board of Directors has declared a dividend "payable in shares of its Digital Voting Series A...
Unfinished House Not Eligible For Florida's Homestead Exemption
September 23, 2019 - Bulletin Print Report
In July 2013, the Baldwins, (the "Bs"),sold their residence and abandoned their homestead. On July 10, 2013, the Bs purchased another property with a house on i...
PIK Interest Income Was "Unitary" Income
September 23, 2019 - Bulletin Print Report
Petitioner, ("P"), is a packaged food company. Prior to March 2008, P operated in three distinctsegments: consumer foods, international foods, and food and ingr...
Basis Of "QRP" Is Determined Under Sec. 1014
September 23, 2019 - Volume 13 Issue 183 Print Report
Shareholder, (SH), owns 100 percent of the common stock of X, a Massachusetts corporation. SH will sell "qualified securities" to an employee stock ownershi...
"Durable" Power Of Attorney Prevents Tolling Of Limitations Period
September 20, 2019 - Bulletin Print Report
In October 2005, H and his father, C, executed a written "durable" power of attorney, (the "DPA"). H requested the DPAto better assist C in the manage...
IRA Withdrawal Is Not Recast
September 20, 2019 - Bulletin Print Report
On October 29, 2014, a Judgment and Property Order Attachment to Judgment, ("Property Order"), was entered that dissolved P's marriage to his former spouse. It pr...
Clear and Convincing Evidence Lacking
September 20, 2019 - Volume 13 Issue 182 Print Report
Petitioner, (P), is the founder and president of a consulting engineering firm located in Orange County (New York). In 1977 or 1978, P announced his intention to grad...
Can AT&T Spin-Off DTV?
September 19, 2019 - Bulletin Print Report
The Wall Street Journal is reporting that AT&T, Inc. ("T") is considering parting ways with DIRECTV, ("DTV"), and has explored, among other options, a s...
Last Hurrah For "Sec. 338 Approach"
September 19, 2019 - Bulletin Print Report
Sec. 382(a) of the Internal Revenue Code provides that, after an "ownership change," within the meaning of Sec. 382(g), the amount of a loss corporation's taxable...
Outbound Liquidation
September 19, 2019 - Volume 13 Issue 181 Print Report
Parent, (P), is a Country X corporation engaged in the banking business worldwide. P conducts the banking business within the U.S. through a State A branch. P owns al...
Unbroken String Of Losses Does Not Negate Profit Motive
September 19, 2019 - Bulletin Print Report
WPR is a Texas limited partnership. It operates as the owner and developer of Whistling Pines Golf Club, ("WP"). O is the general partner of WPR and owns a onep...
District Court Had No Jurisdiction Over Overpayment Interest Claim
September 18, 2019 - Bulletin Print Report
Pfizer, Inc., ("P"), filed its 2008 Federal income tax return on September 11, 2009. The return depicted an overpayment of $769,665,651, and P asked the I.R.S. to ref...
SemGroup Shareholders Will Engage In A "Disguised Sale"
September 18, 2019 - Bulletin Print Report
Energy Transfer L.P., ("ET"), a Delaware limited partnership, announced on September 16, 2019that it has entered into a "definitive merger agreement whereb...
Risk Reduction Is A Good Business Purpose For A Spin-Off
September 18, 2019 - Volume 13 Issue 180 Print Report
Distributing, (D), has two classes of stock outstanding: Class A and Class B. Each classis imbued withequal rightswith respectto dividends and...
Another CVR Sighting
September 17, 2019 - Bulletin Print Report
H. Lundbeck A/S, ("HL"), and Alder BioPharmaceuticals, Inc., ("AB"), announced a definitive agreement for "HL to acquire AB." HL will form an indi...
Deferred Compensation Constitutes "Pensions and Annuities"
September 17, 2019 - Volume 13 Issue 179 Print Report
The Plan is an unfunded contractual agreement between Petitioner and his former Employer under which Petitioner provided services to Employer in exchange for Employer...
JEF To Pay An "In-Kind" Dividend
September 17, 2019 - Bulletin Print Report
Jefferies Financial Group, Inc., ("JEF"), is engaging in a rather unusual transaction--it will be distributing "property" (other than money) to its sharehol...
Money Lender Sustains A Business Bad Debt Deduction
September 17, 2019 - Bulletin Print Report
B was a licensed real estate broker. He was also a co-founder andthe majority shareholder of A, an 'S' corporation. A was engaged in making mortgage loans secured...
Amazon Owes South Carolina Sales Tax On "Merchant" Sales
September 16, 2019 - Bulletin Print Report
Amazon Services, ("AS"), is an Amazon.com, Inc. subsidiary that operates the website amazon.com, (the "Marketplace"), which lists various products for sale,...
Zimmer Liable For Illinois Use Tax
September 16, 2019 - Bulletin Print Report
The Illinois Retailers' Occupation Tax Act imposes a tax upon persons engaged in this State in the business of selling tangible personal property to purchasers for use or c...
Contract Buy-Out Payment Not New York Source Income
September 16, 2019 - Volume 13 Issue 178 Print Report
Petitioner is a professional sports player, almost certainly a hockey player, carries a foreign passport, and is a domiciliary of X-Country (XC). In 1993, petitioner...
Prizes And Awards Are Included In Income
September 13, 2019 - Bulletin Print Report
In 2016, C was a high school student in Columbia, Tennessee. That year, a local car dealership, CCD, held its annual "Strive to Drive" competition. Strive to Drive is...
"Snowbird" Did Not Abandon NY Domicile
September 13, 2019 - Volume 13 Issue 177 Print Report
In 1971, petitioners were married and purchased a home in Queens, New York, (MH). In 1993, petitioners created a retained interesttrust which provided for them...
A "Checked" Entity Is A Corporation For Tax Purposes
September 12, 2019 - Bulletin Print Report
Petitioner, ("P"), is a Delaware corporation that manufactures and markets agricultural equipment.... P owned the single membership interest of JDH-US, a limited liab...
G.E. Will Deconsolidate Baker Hughes
September 12, 2019 - Bulletin Print Report
Baker Hughes, a GE company, ("BHGE"), as expected, announced recently that its controlling shareholder, General Electric Company, ("GE"), has commenced a se...
Obligation To Pay For Redeemed Shares Is Other Property
September 12, 2019 - Volume 13 Issue 176 Print Report
The decedent died in 1981 owning 2,600 shares of the 7,500 outstanding shares of a closely held corporation. The executor ele...
OTCs Are In The Business Of Operating Hotels
September 11, 2019 - Bulletin Print Report
Online travel companies, ("OTCs"), develop, operate, and maintain websites that offer "travel facilitation" services. One of these services allows travelers...
Certain Redemptions Count For "Substantially All" Purposes
September 11, 2019 - Volume 13 Issue 175 Print Report
AF is a State A corporation registered under the Investment Company Act of 1940 as a diversified, open-end management investment company. AF has elected to be treated...
I.R.S. Proposed Regulations Will Reduce NOL-Absorbing "RBIGs"
September 10, 2019 - Bulletin Print Report
The Internal Revenue Service has issued proposed regulations "regarding the items of income and deduction which are included in the calculation of 'built-in gains and...
No Sales Tax On Golf Cart Rentals
September 10, 2019 - Volume 13 Issue 174 Print Report
PFG owned and operated the Golf Club at Peveley Farms, (PF). PFG purchased and paid sales tax on golf carts for use at the PF course. PFG requires its customers to pa...
Charter Schools' Ad Valorem Funding Is Constitutional
September 10, 2019 - Bulletin Print Report
Under the Mississippi Charter Schools Act of 2013, (the "Act"), a charter school receives its funding from two sources: (1) local ad valorem taxes...
Private Equity Firms Seek To Remedy Symantec's Tax Inefficiency
September 9, 2019 - Bulletin Print Report
The Wall Street Journal is reporting that "Symantec Corporation, ("S"), has received interest from a pair of private-equity suitors seeking to buy the firm for m...
The "Absolute Priority" Rule Applies In Individual Chapter 11 Cases
September 9, 2019 - Bulletin Print Report
The Debtors filed a Chapter 11 Plan that provides for the secured claim of the I.R.S., in the amount of $225,884.28, to be reduced to $41,905. The reduced number represents the...
Payments In Lieu Of Liquidating Dividends
September 9, 2019 - Bulletin Print Report
AABAhas declared a liquidating distribution in the amount of $51.50 in cash per share of its common stock. The distribution will be paid on September 23, 2019 to holders...
Bankruptcy Does Not Affect Affiliation
September 9, 2019 - Volume 13 Issue 173 Print Report
X is the common parent of an affiliated group filing a consolidated income tax return on a calendar year basis. Y has been a wholly-owned subsidiary of X since its or...
AABA Declares A Liquidating Distribution
September 6, 2019 - Bulletin Print Report
Altaba, Inc., ("AABA"), announced that its Board of Directors has declared a "liquidating distribution" of $51.50 in cash per share of its common stock. The...
Date of Acquisition Excluded In Determining Holding Period
September 6, 2019 - Volume 13 Issue 172 Print Report
Plaintiffs are husband and wife. On November 30, 1972, they purchased certain commodity futures contracts, which they sold on May 31, 1973, resulting in a gain of $1,...
PRU To Make "Earn-Out" Payments
September 6, 2019 - Bulletin Print Report
Prudential Financial, Inc., ("PRU"), has signed a definitive agreement to acquire a closely held corporation named Assurance I.Q., Inc., ("AIQ"). AIQ is an...
Abercrombie & Fitch's California Challenge Yields No Damages
September 6, 2019 - Bulletin Print Report
Abercrombie & Fitch, ("A"), is a Delaware corporation. A engages in a multi-state "unitary" business that consists primarily of selling clothing at reta...
Passage of Title Fixes Sales Tax Obligation
September 5, 2019 - Volume 13 Issue 171 Print Report
Applicant, (AP), is an out-of-state distributor of engines, generators, and other types of equipment. AP maintains distribution facilities in several different states...
Activity Not Considered A Rental Activity
September 5, 2019 - Bulletin Print Report
The Es owned numerous rental properties including the three at issue here. The Es treated the three properties as "rental activity." The I.R.S. disallowed this approa...
"System" Not An Exempt Orthopedic Or Prosthetic Device
September 5, 2019 - Bulletin Print Report
APP is a California based corporation that is in the business of manufacturing and selling certain medical devices. APP produces the "System," which consists of three...
Will Caesars' Foreign Shareholders Be Subjected To Withholding Tax?
September 5, 2019 - Bulletin Print Report
Eldorado Resorts, Inc., ("ERI"), has entered into a definitive agreement with Caesars Entertainment Corporation, ("CEC"),pursuant to which the former...
Avoiding Sec. 332 Nonrecognition Treatment
September 4, 2019 - Volume 13 Issue 170 Print Report
Y owned all of the stock of Z. On February 20, 1979, Y sold 333 of the 1,000 shares of Z stock to an unrelated party, W. The purchase price and terms of the transacti...
Loan Not A Non-Dischargeable "Educational Loan"
September 4, 2019 - Bulletin Print Report
Debtor, ("D"), began attending college at the University of New Haven in the fall of 2009. D financed her studies with student loans, ("SLs"), other grants,...
A Contribution To A Qualified Trust Must Be Actually "Paid"
September 4, 2019 - Bulletin Print Report
Sec. 404(a) of the Code governs the deductibility of a contribution to the trust of a deferred compensation plan maintained by an employer for its employees that satisfies the...
Adherence To Proposed "Device" Regs. Required For Ruling Purposes
September 4, 2019 - Bulletin Print Report
Distributing, ("D"), is the common parent of an affiliated group of corporations. The group is engaged in both Business A and Business B, each of which it has carried...
The New "Nexus" Rules Ensnare "Remote" Baker
September 3, 2019 - Bulletin Print Report
Company, which is located outside of Colorado, manufactures and sells pre-packaged "bakery food products," such as brownies, cookies, and bars. Company's bakery i...
I.R.S. Ruling Regarding Invesco's Acquisition Of OAC From MMLIC
September 3, 2019 - Bulletin Print Report
USP is the common parent of an affiliated group of corporations that files a consolidated federal income tax return. USP is Massachusetts Mutual Life Insurance Company. UST is...
MSG Spin-Off Update
September 3, 2019 - Bulletin Print Report
The Madison Square Garden Company, ("MSG"), in its recently filed Form 10-K, has, seemingly, confirmed the fact that it is actively pursuing a spin-off of a newly cre...
How To Determine Holding Period
September 3, 2019 - Volume 13 Issue 169 Print Report
The question is whether the profit of $95,168.75 realized by the taxpayer on the sale in 1927 of certain real estate is to be taxed as ordinary income or as capital g...
Vacation Home Found To Be Permanent Place Of Abode
August 30, 2019 - Bulletin Print Report
Petitioners, ("Ps"), husband and wife, are domiciled in the State ofNew Jersey. Petitioner-husband, ("P"), is the Chief Investment Officer of Wynnefie...
Tallgrass Energy L.P. Is A Corporation
August 30, 2019 - Bulletin Print Report
On August 7, 2019, Tallgrass Energy L.P., ("TGE"), announced that the board of directors of its general partner had received a proposal from Blackstone Infrastructure...
Determining Holding Period For Long-Term Capital Gain Purposes
August 30, 2019 - Volume 13 Issue 168 Print Report
The debentures in question are two of a series issued by K&S on October 1, 1963, bearing interest at the rate of six percent per annum payable in cash, maturing o...
Son Does Not "Inherit" His Father's Interest Expense Classification
August 29, 2019 - Bulletin Print Report
W is the son of M, who passed away in October 2013 at the age of 95. M participated in partnerships with CC, "a legendary real estate entrepreneur in the Washington D.C. a...
The "AOC" Lasts For Only Four Years
August 29, 2019 - Bulletin Print Report
The issue for decision is whether petitioners, ("Ps"), are entitled to the American Opportunity Credit, ("AOC"), related to their daughter, ET. Ps have two...
Worthless Debt Classified as "Nonbusiness"
August 29, 2019 - Volume 13 Issue 167 Print Report
In 1970, petitioner owned 50 percent of the stock of DAI. PAG was a California corporation owned 30 percent by petitioner. In...
Bookseller Had Substantial Nexus With Washington
August 28, 2019 - Bulletin Print Report
T is based in Oregon and it purchases and sells textbooks over the internet from and to schools and students across the United States. T receives orders on its internet site, w...
FTI Will Pursue A Tax-Free Spin-Off
August 28, 2019 - Bulletin Print Report
In early 2017, Technip S.A., ("TEC"), and FMC Technologies, Inc., ("FTI"), engaged in an "inversion" transaction in which (i) TEC was merged with...
Waiver Of Waiting Period For Reconsolidation Denied
August 28, 2019 - Volume 13 Issue 166 Print Report
Prior to Date 1, P was the common parent of an affiliated group that filed a consolidated federal income tax return on a calendar year basis (the "Old Group"...
AMGN Will Acquire Otezla
August 27, 2019 - Bulletin Print Report
In order to secure neededapproval from the Federal Trade Commission, ("FTC"),for the Bristol-Myers-Squibb, ("BMY"), acquisition, Celgene Corpora...
Decedent's IRA Not Classified As An "Inherited" IRA
August 27, 2019 - Bulletin Print Report
Decedent died after he was required to begin receiving required minimum distributions from his individual retirement account, ("Decedent's IRA"). At the time of h...
Seller Of Telecommunications Services Cannot Deduct "COGS"
August 27, 2019 - Bulletin Print Report
M sells electrical, light, and radio signals to customers who then use these signals to make phone calls or access the internet. In Texas, a franchise tax is imposed on each ta...
Right to Policy Dividends Is Not An "Incident of Ownership"
August 27, 2019 - Volume 13 Issue 165 Print Report
Decedent and Former Spouse were married on Date 1. In Year, Former Spouse instituted an action for divorce in State Court. On Date 2, Decedent and Former Spouse execu...
States Need Not Grant Foreign Tax Credits
August 26, 2019 - Bulletin Print Report
The Steiners, (the "Ss"), filed joint tax returns as Utah residents in 2011, 2012, and 2013. Mr. S, ("S"), is a shareholder of SL, which is taxed as an '...
An Electric Vehicle's Battery Is Not A "Fuel Tank"
August 26, 2019 - Bulletin Print Report
The taxpayer, (KK), owns and operates a plastic surgery business in Metarie, Louisiana. In 2016, KK decided to spread his wingsand did so by installing a row of Electric...
Characterizing ADR Program Payments
August 26, 2019 - Volume 13 Issue 164 Print Report
Corporations use Depositary Receipts programs to make their stock more attractive to investors in foreign markets. Depositary Receipts programs that make stock of for...
Location Of Residence Determined Site Of "Domicile"
August 26, 2019 - Bulletin Print Report
Petitioner and his wife owned a property that straddles the Bronx/Yonkers border. Petitioner and his wife maintaintheir residence on the property, which has an address in...
Pembina Pipeline Corp. Will Acquire Kinder Morgan Canada Ltd.
August 23, 2019 - Bulletin Print Report
Kinder Morgan Canada Limited, ("K"), announced that it has reached an agreement with Pembina Pipeline Corporation, ("P"), under which P has agreed "to...
VMware To Annex Pivotal Software and Carbon Black
August 23, 2019 - Bulletin