10445 Results

Partnership Can Use Installment Method Despite Sec. 754 Election
February 14, 2025 - Volume 19 Issue 30 Print Report
ABC, a partnership, sold a parcel of real property and wishes to report the gain under the installment method of accounting. Partnership gains and losses are shared equally by...
Freelance Writer Was Liable For Self-Employment Tax
February 14, 2025 - Bulletin Print Report
Since 1995, petitioner has been working as a freelance writer, writing movie reviews. Additionally, since at least 2019, petitioner has bought and sold movie-related memorabili...
Out-Of-State Income Of Non-Resident Spouse Was Community Property
February 14, 2025 - Bulletin Print Report
During 2018, husband lived and worked in Oregon. Appellants owned a home in Norwalk, California, where wife and their youngest daughter lived, and husband returned to Californi...
Sign Remained Tangible Personal Property Following Installation
February 14, 2025 - Bulletin Print Report
T manufactures and installs electric signs. T manufactured and installed a sign for a customer that operates a retail store. T charged the customer sales and use tax....
Land And Fixtures Did Not Constitute Replacement Property
February 13, 2025 - Bulletin Print Report
Plaintiffs are grape farmers with about 1,000 acres of grapevines. In 2002, they sprayed their vineyards with...chemicals their crop advisor recommended. These chemicals killed...
Stock Transferred Before Certificates Issued
February 13, 2025 - Volume 19 Issue 29 Print Report
A corporation granted an employee a restricted stock option to purchase a certain number of shares of its stock. The plan required that in order to exercise the option, written...
Notice Of Deficiency Was Mailed To The "Last Known Address"
February 13, 2025 - Bulletin Print Report
Petitioner, ("P"), filed Form 1065 for 2021 listing its address as "KM." The I.R.S. mailed anotice of transferee liability to P determining a deficien...
"NSO" And "RSU" Income Is Compensation For Services
February 13, 2025 - Bulletin Print Report
Appellants, ("APPs") were residents of California during the period between 2009 and 2013. APPs were residents of Hawaii in 2014. M was...
Short Sale Gain Not Accrued To Residence Period
February 12, 2025 - Volume 19 Issue 28 Print Report
An individual sells publicly traded stock short. While the short sale is still open, the individual moves outside of New York State. Tax La...
Errors In Valuation Judgment Cannot Be Corrected
February 12, 2025 - Bulletin Print Report
In 2015, plaintiffs added to the subject property's garage and master suite. Defendant made a mistake; a wall shown as 28feet long on the hand-drawn diagram prepared...
Untimely Refund Claim Had To Be Denied
February 12, 2025 - Bulletin Print Report
H served in the United Statesmilitary for over 29 years...concluding his service in 1995. On September 11, 2023, the Department of Ve...
Immediate Supervisor Approved Initial Penalty Determination
February 12, 2025 - Bulletin Print Report
PL is a limited liability company that is treated as a partnership for Federal income tax purposes. PL acquired a tract of land. PL granted...
Who Owns Stock Held By A Voting Trust?
February 11, 2025 - Volume 19 Issue 27 Print Report
Mr. A and his son, Mr. B, each owned 50 percent of the outstanding stock of a corporation. Mr. A and Mr. B established a voting trust, with a designated unrelated voting truste...
Appraisal Filing Requirement Was Not Subject Matter Jurisdictional
February 11, 2025 - Bulletin Print Report
The plaintiffs, each owners of properties located in Danbury, Connecticutthat had been assessed at more than one million dollars, appealed to the board. The board denied...
"Plant In Service" Cost Can Be Negative
February 11, 2025 - Bulletin Print Report
San Diego Gas & Electric, ("S"), owns an interstate electric transmission line. S's property in Arizona, ("AZ"), is subject to taxation by AZ and to...
Tax Lien Sale Could Not Be Set Aside
February 11, 2025 - Bulletin Print Report
On May 17, 2021, the plaintiff commenced this action pursuant to Real Property Tax Law, ("RPTL"),article 15 to quiet title to certain real property located in H...
Spin-Off To Facilitate IPO Approved By The Service
February 10, 2025 - Volume 19 Issue 26 Print Report
D is engaged in the E, F, and G businesses. D has outstanding 11,564,200 shares of common stock which are held in equal amounts by four voting trusts. The voting trusts have is...
Microstrategy's Embattled Preferred Stock Was Issued At A Discount
February 10, 2025 - Bulletin Print Report
Microstrategy, Inc.'s$250 million issue of eightpercent perpetual preferred stock has certain tax issues associated with it that, according to Barron's<...
Non-Voice Services Are Subject To Gross Receipts Tax
February 10, 2025 - Bulletin Print Report
Petitioner filed petitions with the BOA seeking a refund of the GRT it paid on the sale of "non-voice" services that it had reported in the "private line" c...
Export Warehouse Proprietor Must Have A Permit
February 10, 2025 - Bulletin Print Report
On December 29, 1992, the shares of Debtor (or "MH"), were held as follows: RLH: 80.4 percent; RHH: five percent; and EMH: 14.6 percent. On December 15, 2012, the sha...
President Trump Seeks To Terminate Sports "Tax Breaks"
February 7, 2025 - Bulletin Print Report
In addition to ending the favorable tax treatment afforded so-called"carried interest," President Trump has also targeted for extinctioncertain unspecifie...
Stock "Transferred" Upon Exercise Of Option
February 7, 2025 - Volume 19 Issue 25 Print Report
The deficiency asserted by the I.R.S. was based upon a determination that the taxpayer had disposed of stock he acquired from MMM upon the exercise of an option within six mont...
The "Uber Main Payment" Was Not Analogous To Insurance
February 7, 2025 - Bulletin Print Report
L is an engineer who was employed by Google between 2007-January 27, 2016. L helped found Google's autonomous driving project. While em...
"Freeze Act" Appeal Denied
February 7, 2025 - Bulletin Print Report
For tax year 2023, the Borough of Deal, ("B"), assessed plaintiff's property, ("Subject"), at $5,193,800. The entire amount was allocated to land (thus...
FBAR Penalties Are Fines For Eighth Amendment Purposes
February 7, 2025 - Bulletin Print Report
Each American citizen with interests in, or authority over, any foreign bank account with a balance exceeding $10,000 must file an annual "FBAR" with the I.R.S....
I.R.S. Amenable To "Elongated" Spin-Offs
February 6, 2025 - Bulletin Print Report
Over sixty years ago, AT&T owned approximately ninety percent of the outstanding stock of Pacific Telephone & Telegraph Company, one of its several Regional Bell Operat...
Research Was Not "Funded Research"
February 6, 2025 - Bulletin Print Report
S's expertise is in automotive coating designs and applications. S based its research credits on six different finishing systems it developed during 2016. &...
Transfer Of Stock To Grantor Trust Not An Acquisition Of An "Interest"
February 6, 2025 - Volume 19 Issue 24 Print Report
Mr. A and Mrs. B are husband and wife. Mrs. C is their daughter. Mr. D is Mrs. C's husband and the son-in-law of Mr. A and Mrs. B. In 1...
Refund Claim Was Six Days Late
February 6, 2025 - Bulletin Print Report
On February 10, 2021, petitioner filed a 2014 New York State amended resident income tax return, Form IT-201-X, in which he claimed a refund of $21,248.00. The refund claim was...
No "Established Duty" To Pay The Government
February 6, 2025 - Bulletin Print Report
R filed this qui tam action against H, alleging that H defrauded the United States when they applied for and secured visas for foreign employees...to work in...
The "Preponderance" Standard Applies In FLSA Cases
February 5, 2025 - Bulletin Print Report
The Fair Labor Standards Act, ("FLSA"), of 1938 requires employers to pay their employees a minimum wage and overtime compensation. But the Act exempts many categorie...
Strict Compliance With Tax Sale Notice Provisions Is Required
February 5, 2025 - Bulletin Print Report
M owned the subject property. M failed to pay taxes on the property for the 2020 tax year and the property was ultimately sold to EW at an "upset tax sale" on Septemb...
FGU Complied With Foreclosure Notice Requirements
February 5, 2025 - Bulletin Print Report
R owned six properties in Detroit, but in 2019, 2020, and 2021, R failed to pay property taxes on the properties. As a result, P filed a petition for foreclosure....
Not All Mergers Qualify As 'A' Reorganizations
February 5, 2025 - Volume 19 Issue 23 Print Report
1. Target, (T), transfers some of its assets and liabilities to an acquiring corporation, retains the remainder and remains in existence. The T shareholders receive stock in th...
Costs Of Assisted Reproductive Technologies Are Not Deductible
February 4, 2025 - Bulletin Print Report
Taxpayers, ("TPs"), are a heterosexual married couple legally married in State. TPA was diagnosed with "1" in Year 1... "1" requires TPA to take m...
Stock "Transferred" Too Late
February 4, 2025 - Volume 19 Issue 22 Print Report
GBB established on July 23, 1963, effective July 1, 1963, a restricted stock option plan. Petitioners timely exercised their respective options on April 30, 2014. On the date o...
The JEDZ Cannot Levy Taxes On Electric Companies
February 4, 2025 - Bulletin Print Report
GH and CT formed the joint economic development zone, (the "JEDZ"), in 2013 and enacted a resolution levying a net income tax on all businesses earning business incom...
Donor Substantially Complied With Appraisal Summary Requirements
February 4, 2025 - Bulletin Print Report
D is an Alabama limited liability company. D was classified as a partnership for federal income tax purposes. D timely filed its Form 1065...
I.R.S. Proposes Regulations On Separations And Reorganizations
February 3, 2025 - Bulletin Print Report
In the waning days of the Biden administration, the I.R.S. proposed regulations dealing with certain matters regarding corporate separations and reorganizations. The proposals...
Service Extends The Reach Of The Wash Sale Provisions
February 3, 2025 - Volume 19 Issue 21 Print Report
A, an individual, owns 100 shares of X corporation (X) stock with a basis of $1,000. On December 20, 2007, A sells the 100 shares for $600. On December 21, 2007, A causes an I....
The "Convenience" Test Applied To Employee Of Exempt Employer
February 3, 2025 - Bulletin Print Report
Petitioners, husband and wife, are longtime Pennsylvania residents. Petitioner-husband, ("PH"), was employed by Bank of Montreal,...
Supervisory Approval Of Penalties Was Found To Be Timely
February 3, 2025 - Bulletin Print Report
Respondent asserts that the I.R.S. complied with the supervisory approval requirements of section 6751(b) of the Codewith respect to the asserted penalties....
Service Finds A "Reverse Acquisition"
January 31, 2025 - Volume 19 Issue 20 Print Report
X is a State A corporation. It is the common parent of an affiliated group filing consolidated returns. X has issued and outstanding two shares of common stock, one of which wa...
Lack Of Profit Motive Eliminates Depreciation Deductions
January 31, 2025 - Bulletin Print Report
Plaintiffs owned two single-family residences...the "W" property and the "H" property. Plaintiffs reported the properties as rentals on their tax returns an...
Taxpayer Was Not A "State Employee"
January 31, 2025 - Bulletin Print Report
Taxpayers, a husband and a wife, filed a joint Virginia, ("VA"), resident individual income tax return for the 2022 taxable year, claiming a subtraction for salaries...
Deeds Were Not "Documents"
January 31, 2025 - Bulletin Print Report
On May 9, 2013, K was organized as a limited liability company. On January 24, 2018, K filed a "Statement of Division," which divided K into six limited liability com...
Will MSTR's Preferred Stock Distributions Be "Dividends?"
January 30, 2025 - Bulletin Print Report
Microstrategy, ("MSTR"), is on the verge of issuing some $250 million in stated amount of 8 percentconvertible preferred stock. There is some question about whe...
Gain From Sale Of Property Is New York Source Income
January 30, 2025 - Volume 19 Issue 19 Print Report
Until April 14, 1997, petitioners held title to a New York City cooperative unit. Not later than December 1996, petitioners became residents and domiciliaries of South Carolina...
Sourcing Receipts In "Drop Shipment" Transactions
January 30, 2025 - Bulletin Print Report
TP is a manufacturer that sells specialty products throughout the United States and the world. TP is required to sell its specialty products, (the "Products") using t...
"Zero-Turn Mowers" Are Exempt From Sales Tax
January 30, 2025 - Bulletin Print Report
Poultry farmers often purchase "zero-turn mowers." Under A.C.A. section 26-52-403, both new and used "farm equipment and mac...
Untimely Filed Refund Claim Deprived Court Of Jurisdiction
January 30, 2025 - Bulletin Print Report
Plaintiff, a U.S. citizen residing in Germany, filed this action on May 20, 2024, seeking a refund for her alleged overpayment of taxes for the 2016 tax year. At issue here is...
"Hovering Deficit" Can Only Offset Post-Transfer Earnings And Profits
January 29, 2025 - Bulletin Print Report
Parent is a domestic corporation...and is the common parent of an affiliated group...that files a consolidated return for Federal income tax purposes,(the "Parent Gr...
Conversion Into LLC Does Not Result In Significant Modification Of Debt
January 29, 2025 - Volume 19 Issue 18 Print Report
P has outstanding publicly traded debt, consisting of senior notes and exchangeable debentures (the "Debt"). The Debt is recourse to P. P proposes to restructure.&nbs...
New Jersey's "TSL" Violates The "Takings Clause" Of The Constitution
January 29, 2025 - Bulletin Print Report
R owned a mixed-use property. He failed to pay sewer tax bills and plaintiff purchased that debt pursuant to the New Jersey Tax Sale Law, ("TSL"). &nb...
CFC Was Not Acting As USP's Agent
January 29, 2025 - Bulletin Print Report
USP is a domestic corporation that provides a variety ofservices... The service agreements permit USP to enter into subcontracts with other parties in connection with the...
Proposed Italian Bank Combination Motivated By Accelerated "DTA" Use
January 28, 2025 - Bulletin Print Report
The Board of Directors of the world's oldest bank, founded in the 15th century, Banca Monte dei Paschi of Siena S.p.A., ("MPS"), has announced the launch of a &qu...
REIT's Stock Distributions Not "Preferential"
January 28, 2025 - Volume 19 Issue 17 Print Report
TP is a REIT. TP has one class of common stock outstanding which is publicly traded and listed on the Exchange. TP intends to make one or more distributions with respect to its...
Temporary Or Transitory Absence Did Not Defeat Residency
January 28, 2025 - Bulletin Print Report
APP was a resident of California, ("CA"), until at least October 1, 2008. During October 2007, APP's license to practice medicine was revoked. On December 10, 200...
Use Tax Due On The Purchase Of An Aircraft
January 28, 2025 - Bulletin Print Report
Appellant has been registered with the California Secretary of State as a non-profit religious corporation... On March 29, 2016, appellant execut...
LTRPA Will Cease To Exist
January 27, 2025 - Bulletin Print Report
Liberty TripAdvisor Holdings, Inc., ("LTRPA"), owns a 57 percent voting interest and a 21 percent economic interest in Tripadvisor, Inc., ("TI"). We have be...
Recovery Of Bad Debt
January 27, 2025 - Volume 19 Issue 16 Print Report
TP, an insurance company, claimed a partial worthlessness deduction under Sec. 166(a)(2) for "eligible securities" and accordingly adjusted the basis of such securiti...
Taxpayer Did Not Change His California Domicile
January 27, 2025 - Bulletin Print Report
Appellant, ("APP"), timely filed a 2018 California resident tax return, reporting a California subtraction adjustment of $49,423 for wages. &nb...
Only Gross Receipts Of "New Target" Are Counted For Sec. 165(g)(3)(B)
January 27, 2025 - Bulletin Print Report
Taxpayer, a domestic subchapter C corporation, acquiredall of the stock of Subsidiary, a foreign entity treated as a corporation for U.S. tax purposes, in a "qualifi...
The Willens Deal Survey January 2025
January 24, 2025 - The Deal Survey: January 2025 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.
Using Section 351 To "Seed" The New Crop Of "Tax Aware" ETFs
January 24, 2025 - Bulletin Print Report
Apparently, a large number of ETFs are preparing to make their debut in the coming weeks. These ETFs, which include Cambria Tax Aware ETF, ("TAX"),are different...
Days Worked Outside Of New York
January 24, 2025 - Volume 19 Issue 15 Print Report
Petitioners filed New York State (NYS) non-resident tax returns for 1997 and 1998. For 1997, petitioner husband (PH) earned wages of $205,216 from his employment with P. For 19...
CMPO To Undertake A "Functional Division" Of A Single Business
January 24, 2025 - Bulletin Print Report
CompoSecure, Inc., ("CMPO"), announced its intention to spin-off a newly formed subsidiary corporation to be named Resolute Holdings Management, Inc., ("RHMI&quo...
What Is The "Trading" Status Of Unregistered Shares?
January 24, 2025 - Bulletin Print Report
Certain important tax considerations turn on whether stock is or is not considered "traded on an established securities market." In making this determination, it is o...
Self-Created Goodwill Is Classified As A Capital Asset
January 23, 2025 - Volume 19 Issue 14 Print Report
TP operated a "b" business consisting of three separate divisions, X, Y, and Z. TP decided to dispose of divisions X and Y. Each sale generated taxable gain. In each...
Section 1983 Claims Accrue When The Redemption Period Expires
January 23, 2025 - Bulletin Print Report
Plaintiffs are former property owners...who failed to pay property taxes. The counties retained the surpluses. Plaintiffs challenge the counties' retention. The Supreme Cou...
Building Was Not A "Certified Historic Structure"
January 23, 2025 - Bulletin Print Report
The Building, ("B"), is a three-story masonry building. In June 2000, the owner submitted an application to the NPS to determine the B's eligibility for listing o...
Pension Distributions To The Beneficiary Of A Deceased Public Employee
January 23, 2025 - Bulletin Print Report
Petitioner is the executor and a beneficiary of the estate of a New York City public school teacher. The decedent was 75 years old at the time of her death and had been taking...
FAT Brands To Remit An "In-Kind" Dividend
January 22, 2025 - Bulletin Print Report
FAT Brands, Inc., ("FAT"), announced that its Board of Directors has approved the distribution of a "special stock dividend" of shares of Class A Common Sto...
Transfer Of Interest In Mine Is A Lease
January 22, 2025 - Volume 19 Issue 13 Print Report
TP acquired Company A, (CA), on Date 1. Prior to its acquisition by TP, CA purchased an "a%" interest in Mine A. CA subsequently purchased additional interests in Min...
Bakery Was Operated "Exclusively And Purely" For Charitable Purposes
January 22, 2025 - Bulletin Print Report
The subject property is owned by N, a non-profit corporation. The purpose of N is to "rescue and restore women and children from the bondage of human trafficking and addic...
Pre-Tyler Takings Clause Actions Were "Ripe"
January 22, 2025 - Bulletin Print Report
Article 11 of New York State's Real Property Tax Law authorized the taxing authorities to retain the surplus proceeds from the sale of tax delinquent properties....
Illness Prevented Exercise Of "Ordinary Business Care And Prudence"
January 21, 2025 - Bulletin Print Report
APP has been diagnosed with severe disabling medical conditions, including chronic pain. He is primarily home-bound. APP did not timely fil...
Distributions From Qualified Plans Are Includible In Gross Income
January 21, 2025 - Bulletin Print Report
Petitioner was formerly employed by Rice University. In 2019, while she was still employed by Rice University, she participated in two of the university's retirement plans....
CWAN And ENFN Reach A Merger Agreement
January 21, 2025 - Bulletin Print Report
Clearwater Analytics, Inc., ("CWAN"), and Enfusion, Inc., ("ENFN"), recently announced they hadentered into a "definitive merger agreement"...
Retention Of More Than 50 Percent Of Stock Bars Exchange Treatment
January 21, 2025 - Volume 19 Issue 12 Print Report
X and Y are each incorporated in the country of "G." P owns "a" shares of X. P also owns "c%" convertible notes which are convertible into shares...
Overall Plan Of Rehabilitation Found
January 17, 2025 - Bulletin Print Report
S is listed on the National Register of Historic Places. Petitioners purchased S for $800,000 in October 1998, when it was in a general state of disrepair. During 1999 and 2000...
Mandatory Award Provisions Did Not Apply To Whistleblower's Claim
January 17, 2025 - Bulletin Print Report
E filed a Form 211...dated January 28, 2018. Therein, E alleged that she performed bookkeeping and accounting services for the target taxpayer. &n...
Payment Of Medical Expenses Not A Gift
January 17, 2025 - Volume 19 Issue 11 Print Report
S, D's adult son, was seriously injured in an automobile accident in 1982. During the period S was incapacitated in 1982, D paid S's medical expenses to the physician....
Ascertaining The "Current Fair Market Value" Of Residential Property
January 17, 2025 - Bulletin Print Report
For tax year 2021, the Assessor determined the Property's fair market value and taxable value to be $6,063,000 as of December 31, 2020. Petitioner's purchase of the Pro...
Sec. 304 Gives Rise To Dividend Treatment Of "Sales" Proceeds
January 16, 2025 - Volume 19 Issue 10 Print Report
The plaintiffs, husband and wife, owned 72 shares of NYTH, which had issued and outstanding 240 shares. NYTH owned all of the stock of T. P...
MSTR Warns Of CAMT Liabilities
January 16, 2025 - Bulletin Print Report
The Inflation Reduction Act introduced a corporate alternative minimum tax ("CAMT") that is calculated by reference to the corporation's "adjusted financial...
Dismissal Due To Failure To File An Appraisal Was Warranted
January 16, 2025 - Bulletin Print Report
The defendant has moved to dismiss the plaintiff's action due to the plaintiff's non-compliance with Conn. Gen. Stat. section 12-117a(b). The City claims that the plain...
The Shyft Group Expatriates (But Will Not Be An "Expatriated Entity")
January 16, 2025 - Bulletin Print Report
Certain impediments exist with respect to a domestic corporation that seeks to "expatriate," with that term encompassingthe case where the domestic corporation&...
Constellation Energy Gets No Basis Credit For Its $29 Billion Payment
January 15, 2025 - Bulletin Print Report
Just a few weeks ago, Constellation Energy Corporation, ("CEG"), entered into an Agreement and Plan of Merger with Calpine Corporation, ("CC") under which &...
What Constitutes "Substantially All" Of The Properties?
January 15, 2025 - Volume 19 Issue 9 Print Report
M and N were each engaged in the fabrication and sale of various items of steel products. N acquired most of N's business and operating assets. Under a plan of reorganizati...
A Notice Of Determination Must Be Sent To The "Last Known Address"
January 15, 2025 - Bulletin Print Report
The subject of the motion of the Division of Taxation, (the "Division"), is the timeliness of petitioner's protest of a notice of determination dated June 6, 2023...
Property Leased To The USPS Is Not Exempt From Property Taxation
January 15, 2025 - Bulletin Print Report
C purchased the property on March 12, 2019. C entered into a lease with the USPS for the subject property for a term of five years, with an annual rent of $3,600....
I.R.S. Proposes New Disclosure Rules For Spin-Off Participants
January 14, 2025 - Bulletin Print Report
The I.R.S., in conjunction with its proposal tooverhaulthe substantive rules governing spin-offs, a report on which will be issued later this week, has proposed new...
DIS And FUBO Will Create A Joint Venture
January 14, 2025 - Bulletin Print Report
fuboTV, Inc., ("FUBO"),and the Walt Disney Company, ("DIS"), announced that they have entered into a definitive agreement "for DIS to combine its...
Payment Of Pledge Is A Gift To The Obligor
January 14, 2025 - Volume 19 Issue 8 Print Report
In January 1977, A made a written pledge to contribute, before May 31, 1977, $10x to X, an organization described in Sec. 2522(a), contributions to which are deductible. Relyin...
A Sale Requires Consideration
January 14, 2025 - Bulletin Print Report
AEI is a North Carolina limited liability company, whose sole member is P, a Virginia corporation. AEI is a disregarded entity for federal and state income tax purposes....
Invalid Denial Notice Salvages Homestead Exemption
January 14, 2025 - Bulletin Print Report
In 1996, APPs applied for and received a homestead property tax exemption on their residential property. They continued receiving this exemption automatically for the next twen...
RHE's Preferred Stock Should Escape Section 306 Designation
January 13, 2025 - Bulletin Print Report
Regional Health Properties, Inc., ("RHE"), and SunLinkHealth Systems, Inc., ("SSY"), announced that they have entered into a definitive agreement and...
Interest Paid By A Foreign "DRE" Is Subject To Withholding
January 13, 2025 - Volume 19 Issue 7 Print Report
The foreign corporation payee in question is a controlled foreign corporation and the U.S. domestic corporation in question is a "U.S. shareholder" of that controlled...
Extended Period Within Which To File Petition Not Available
January 13, 2025 - Bulletin Print Report
On October 2, 2023, respondent mailed to petitioner by certified mail a notice of deficiency for tax year 2021. Petitioner was in the country when the notice was delivered, whi...
Appeal Dismissed For Lack Of Service
January 13, 2025 - Bulletin Print Report
MR filed a Notice of Appeal on May 7, 2024 in the District Court for St. Louis County, appealing from the Notice of Determination on Appeal, (The "Tax Order"), with n...
Grantor Did Not Dispose Of Installment Obligation
January 10, 2025 - Volume 19 Issue 6 Print Report
An individual sold a building in 1971. He reported the gain on the "installment method" of accounting. Shortly after the sale, he transferred the installment note to...
Landlord Misinterpreted New York City's Rent Stabilization Law
January 10, 2025 - Bulletin Print Report
The Rent Stabilization Law, ("RSL"), was enacted in 1969. DHCR administers the RSLby promulgating regulations for rent stabilization. Those regulations are codi...
A "529 Account" Is A Tax Deferred Asset
January 10, 2025 - Bulletin Print Report
Plaintiff sets forth that the parties set up three "529 accounts" during their marriage and Defendant opened those accounts. The parties have three daughters... The p...
No Good Deed Goes Unpunished
January 10, 2025 - Bulletin Print Report
Sales tax was assessed against petitioner as an officer/responsible person of 472 Glen Cove Corporation, (the "corporation"). Pet...
GETY And SSTK Announce A "Cash Option" Merger
January 8, 2025 - Bulletin Print Report
Getty Images Holdings, Inc., ("GETY"), and Shutterstock, Inc., ("SSTK"), announced that they have entered into a definitive merger agreement to combine in w...
Sec. 302(b)(2)(D) Plan Found To Be Present
January 8, 2025 - Volume 19 Issue 5 Print Report
As of December 29, 1977, CO had issued and outstanding 344 1/3 shares of common stock. A and B, (TPs), husband and wife, owned 330 1/3 shares, representing a 95.93 percent owne...
Stock Repurchases Count As A "Boot Purge"
January 8, 2025 - Bulletin Print Report
D is a publicly-traded domestic corporation and the common parent of a consolidated group, (the "D Group"). D owns DRE 1 and DRE 2. DRE2 owns Sub 1. DRE 2 also...
Nine Year Period Of Retroactivity Did Not Violate Due Process
January 8, 2025 - Bulletin Print Report
Paychex, Inc., ("P"), provides employment services, including...Professional Employer Organization ("PEO") services. As a PEO, P provides its clients with s...
A High Likelihood Is Not The Same As A Certain Obligation
January 8, 2025 - Bulletin Print Report
Under the "all events test," a liability is incurred and can be recognized when "all events have occurred which determine the fact of liability and the amount&nb...
Banks Not Exempt From Wash Sale Rules
January 7, 2025 - Volume 19 Issue 4 Print Report
On March 8, 1935, Petitioner, (P), purchased $10,000 par or face value CRNJ General Mortgage Coupon Bonds bearing interest at the rate of 4 percent per annum and falling due Ju...
Division Of Marital Assets Is Not Alimony
January 7, 2025 - Bulletin Print Report
P and E were married on February 14, 2011. They were granted a divorce on November 9, 2016. Pursuant to Article 5 (titled "Support&quo...
Hawaiian Electric Industries Will Cease To Be A Bank Holding Company
January 7, 2025 - Bulletin Print Report
Hawaiian Electric Industries, Inc., ("HEI"), somewhat surprisingly, has long been engaged in the banking business through its indirect ownership of one hundred percen...
Judgment Liens Existing At Time Of Tax Sale Have Priority
January 7, 2025 - Bulletin Print Report
In 1980, G and M acquired a fee simple interest in the "Property." On February 10, 2003 FMCC obtained a default judgment against G...thus perfecting a judgment lien i...
Lack Of Sec. 754 Election Proves Costly
January 6, 2025 - Volume 19 Issue 3 Print Report
Petitioner, (P), was a resident of Colorado in 2005. He filed a New York State (NYS) nonresident and part-year resident return claiming a long-term capital loss in the amount o...
When Is Gain "Puerto Rico Source Income?"
January 6, 2025 - Bulletin Print Report
A citizen of the U.S., ("TP"), owns a portfolio of shares with built-in gain, ("Appreciated Stock"). TP also owns all the shares of stock of a domestic corp...
Hedging Opportunities For "ISO" Stock
January 6, 2025 - Bulletin Print Report
Stock options continue to be a popular method for compensating corporate officers. In fact, options are no longer reserved for a corporation's top executives; andhave...
Social Security Disability Income Constitutes "Household Income"
January 6, 2025 - Bulletin Print Report
Petitioner is a widow who owns a parcel of real property in Detroit, Michigan, (the "Property"). Respondent, the City of Detroit, assessed the Property's 2022 ass...
Section 965 Income is Not Taxable In New Jersey
January 3, 2025 - Bulletin Print Report
A is a direct shareholder in four controlled foreign corporations, ("CFC"). Both plaintiffs are indirect shareholders in two related CFCs. Thus, plaintiffs are direct...
"Bond Swap" Not Subject To "Wash Sale" Restrictions
January 3, 2025 - Volume 19 Issue 2 Print Report
The taxpayer, an individual, sold U.S. Treasury 6.375 percent bonds for a price which was below his adjusted basis in the bonds. He purchased, within 30 days of the sale, U.S....
"Public Right" Doctrine Of Standing Eliminated
January 3, 2025 - Bulletin Print Report
M owns rental property in, and pays taxes to, the City of Findlay, Ohio.He brought this mandamus action in the Third District against the Findlay Municipal Court...becaus...
Foreign Tax Credits Against The "NIIT" Are Allowed
January 3, 2025 - Bulletin Print Report
B was a resident of Canada and a citizen of the U.S. During 2015, he paid nearly $2 million in taxes to Canada, and claimed a foreign tax credit of $1,398,683 to offset the reg...
"Leveraged Spin-Offs" Come To Arkansas
January 2, 2025 - Bulletin Print Report
One of the most popular restructuring tools at a corporate management's disposal is the "spin-off." In a spin-off, a corporation distributes to its shareholders,...
Deferred Compensation Found To Be New York Source Income
January 2, 2025 - Bulletin Print Report
In 2017, petitioners were non-resident partners of AristeiaHoldings, L.P., ("A"). In 2017, A owned 100 percent of Aristeia Capital, LLC, ("AC"), a dis...
A "Sec. 302(d) Redemption" Of Stock Of An 'S' Corporation Addressed
January 2, 2025 - Volume 19 Issue 1 Print Report
A and A's child, B, owned all of the stock of X. X has a valid 'S' election in effect. X redeems a portion of A's stock. The redemption, which does not give ris...
Titling Error Did Not Preclude A "Sale For Resale"
January 2, 2025 - Bulletin Print Report
C is an LLC, owned by M, in the automobile resale business. It is a registered used car dealer. C purchased a 2022 Corvette from BNC on Dec...
What Is Property for Purposes of Sec. 1033?
December 31, 2024 - Volume 18 Issue 251 Print Report
M possessed a certain property interest in Y, a "y" facility, which M hadacquired in a joint venture with other similarly situated individuals, and wi...
Beneficiary Of Grantor Trust Did Not Acquire Prohibited Interest
December 31, 2024 - Volume 18 Issue 250 Print Report
On January 3, 1984, X redeemed all of its stock held by each of A, B, and C. Each such redemption qualified as a complete termination of the redeeming shareholder's interes...
Insurer's Affiliate Exempt From B&O Tax
December 31, 2024 - Bulletin Print Report
CC's two subsidiaries, E and COC, administer health insurance benefits to people in Washington under a contract with the State. COC collects premium payments from consumers...
No Limits Are Imposed On Export Credits Generated Each Year
December 31, 2024 - Bulletin Print Report
The Export Credit Statute allows cigarette manufacturers a tax credit based on the volume of cigarettes they manufactured in North Carolina for export each year. The Export Cre...
Member-Managed LLC Did Not Qualify For Penalty Relief
December 31, 2024 - Bulletin Print Report
APP is a California LLC with two members and is taxed as a partnership. On January 17, 2019, one of APP's members was involved in a veh...
News Corporation Deftly Disposes Of Foxtel Group
December 30, 2024 - Bulletin Print Report
News Corporation, ("NC"), recently announced that it hasentered into a definitive agreement for the sale of Foxtel Group, ("FG"), to DAZN Group, Ltd.,...
New York Did Not Adopt P.L. 117-2
December 30, 2024 - Bulletin Print Report
On March 31, 2021, EF electronically filed with the Division of Taxation, (the "Division"), Form IT-201, New York State resident income tax return for tax year 2020.<...
"ARB" Offset" Credits Are Includible In Gross Income
December 30, 2024 - Bulletin Print Report
The California Global Warming Solutions Act of 2006 authorizes the California Air Resources Board, ("CARB"), to promulgate rules and regulations on programs to limit...
LLCs Not "Exempt Payees"
December 27, 2024 - Volume 18 Issue 249 Print Report
The taxpayer is protesting certain adjustments made by the examining agent. The taxpayer argues that the agent should not include payments made to LLCs as "reportable paym...
Only A Timely Filing Can Procure Surplus Tax Sale Proceeds
December 27, 2024 - Bulletin Print Report
In 2020, the Michigan Supreme Court held that former owners of properties sold at tax-foreclosure sales for more than what was owed in taxes...had "a cognizable, vested pr...
"Customers Of Customers" May Be The Recipients Of Services
December 27, 2024 - Bulletin Print Report
M is a Kentucky corporation. M is a subsidiary of H. HPS, another H subsidiary, entered into an agreement with HIC, yet another H subsidiary, called the Pharmacy Benefits Manag...
Personal Enjoyment Is A Factor In The Section 162 Analysis
December 27, 2024 - Bulletin Print Report
JA has been a solo practitioner (of law) in Colorado since the 1980s. His practice has focused mostly on representing plaintiffs in personal injury cases. In 2002, JA married a...
Activities Exceed Solicitation Of Orders
December 26, 2024 - Volume 18 Issue 248 Print Report
Amgen, Inc., (A), develops, manufactures, and markets pharmaceutical products. During the years in question, A sold two products in the U.S. A manufactured those products exclu...
Gross Receipts From Dialysis Services Are "Sitused" To Ohio
December 26, 2024 - Bulletin Print Report
The commercial activity tax, ("CAT"), is levied...on each person with taxable gross receipts... "Gross receipts" is the total amount realized by a person, w...
Sale Of LLC Interest Lacked Economic Substance
December 26, 2024 - Bulletin Print Report
As of January 1, 2010, R owned one hundred percent of N. N was a disregarded entity. N owned an apartment complex located in Houston, Texas...
Sunoco's "Buy/Sell" Transactions Were Inventory Exchanges
December 26, 2024 - Bulletin Print Report
S was engaged in the business of petroleum refining and marketing. SP was the general partner of SL. SP hadthree corporate partners...each of which was included in S'...
The Willens Deal Survey December 2024
December 24, 2024 - The Deal Survey: December 2024 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.
JWN Is Going Private
December 24, 2024 - Bulletin Print Report
Nordstrom, Inc., ("JWN"), has finally struck a deal which will enable the corporation to "go private," a statusthe corporation and the Nordstrom Famil...
State Law Limited Partners Were Not "Limited Partners As Such"
December 24, 2024 - Bulletin Print Report
Petitioner, ("P"), is the state law general partner of Denham, ("D"). D offers investment advisory and management services to affiliated private equity fund...
No Duplication Of QREs Permitted
December 24, 2024 - Volume 18 Issue 247 Print Report
P files a consolidated income tax return. Before it was acquired by P, T was a publicly traded corporation and the parent of a consolidated group....
Services Incidental To A Lease Of Tangible Personal Property Are Taxable
December 24, 2024 - Bulletin Print Report
Taxpayer, a provider of portable toilet rentals and services, was audited...and an assessment was issued. The Taxpayer filed an application for correction. &nb...
LEN Is Distributing An Aspiring REIT To Its Shareholders
December 23, 2024 - Bulletin Print Report
Lennar Corporation, ("LEN"), is undertaking a most unusual distribution to its shareholders. LEN recently announced that its newly-formed subsidiary, Millrose Propert...
Real Property Is Entitled To A Tax Exemption
December 23, 2024 - Volume 18 Issue 246 Print Report
M was incorporated as a not for profit corporation in 1972. M was formed for the purpose of...conducting year round programs in the performing arts for children, teenagers and...
Rev. Rul. 77-337 Is (Unconvincingly) Distinguished
December 23, 2024 - Bulletin Print Report
Taxpayer, ("TP"), is the beneficiary of a testamentary trust created by Decedent and established by Will. Upon Decedent's dea...
BlackRock's Latest Acquisition Has "Up-C" Overtones
December 23, 2024 - Bulletin Print Report
BlackRock, Inc., ("BLK"), has been on a buying spree. Its acquisitions, befitting its size and stature, are all of the multi-billion dollar variety. Its latest acquis...
Assumption Of A Deductible Liability
December 23, 2024 - Bulletin Print Report
P indirectly owns a% of the ownership interest in S. Entity 1 owns the remaining b% ownership interest in S. S is a partnership. DRE1 is a...
Absence Of Gross Receipts Does Not Bar Ordinary Loss Deduction
December 20, 2024 - Volume 18 Issue 245 Print Report
TP owned 100 percent of the stock of FS. As of December 31, Year 1, FS's balance sheet showed liabilities exceeding its total assets. FS's financial statements showed n...
I.R.S. Revokes A Fifteen-Year Old Private Letter Ruling
December 20, 2024 - Bulletin Print Report
LTR 200923001, February 26, 2009, addresses the case of "Entity A," a domestic corporation that elected to be taxed as a real estate investment trust, ("REIT&quo...
Taxpayer Was Not A "Marijuana Establishment"
December 20, 2024 - Bulletin Print Report
Respondent states that Petitioner, ("P"), is a retailer for both adult use and medical marijuana; and was licensed to sell adult use marijuana as of July 2020.<...
Providing Services As An Employee Does Not Constitute A Business
December 20, 2024 - Bulletin Print Report
TPs were in the insurance business. TPs formed RHCin 1977 to start their own insurance business. Later, TPs purchased BRI in 1979. TPs were the sole owners of RHC and BRI...
When Is Option Compensation Deductible?
December 19, 2024 - Volume 18 Issue 244 Print Report
1. On January 1, 2003, E began employment with M and is granted a nonstatutory option to purchase a number of shares of M common stock. The option is not exercisable until Janu...
Divorce Decree Could Not Be Altered
December 19, 2024 - Bulletin Print Report
G and B divorced on April 29, 2014. The final decree of divorce awarded G, as his sole and separate property, "all rights, title, and interest in and to the real property...
Only The "Taxpayer" Can Contest A Refund Denial
December 19, 2024 - Bulletin Print Report
Through certain purchases, O collected sales taxes and local surtaxes from its customers and remitted the collected taxes to the Department. It surfaced that O had collected bo...
Integrating An "Acquisition Merger" And An "Upstream Merger"
December 19, 2024 - Bulletin Print Report
In some circumstances, two transactions, particularly thoseoccurring in close time proximity, will be integrated and treated as single transaction, whereas in others, the...
Funds Rolled Over To An IRA Retain Their Character
December 18, 2024 - Bulletin Print Report
P retired from the I.R.S. on December 31, 2011. During P's service with the I.R.S., P participated in the Federal Employees' Retirement Service, ("FERS"). FER...
Holding Property For Investment Purposes Is Not An Active Business
December 18, 2024 - Volume 18 Issue 243 Print Report
X is a broker and dealer in stocks and bonds. Y, a wholly-owned subsidiary of X, is engaged in the ownership and management of an investment portfolio of stocks and bonds. ...
"QREs" Of A Former Member Included In Determining The "FBP"
December 18, 2024 - Bulletin Print Report
Pursuant to a Licensing Agreement, P acquired from A the right to develop, manufacture, and sell an inhaled insulin product... In 2004, P f...
A Coherent Definition Of "Processing" Proves Elusive
December 18, 2024 - Bulletin Print Report
Many states and localities will exempt from sales and use tax machinery and equipment purchased for deploymentin "production" or "manufacturing" activ...
Employee Disposed Of Option Stock Too Early
December 17, 2024 - Volume 18 Issue 242 Print Report
In 1993, S started working for EC. EC was a private company. Between 1993 and 2000, S received incentive stock options. In February 2000, ICG, a public company, agreed to acqui...
Taxpayer Was Properly Served Notice Of An "Upset Tax Sale"
December 17, 2024 - Bulletin Print Report
Taxpayer, ("TP"), is the owner of real property, (the "Property"). TP's address is..."MAM." The Property was sold to PUR at an "upset tax...
New Yorker's "Excess" Charitable Donations May Not Be Carried Over
December 17, 2024 - Bulletin Print Report
Petitioner and his wife are residents of New York State who filed a joint personal income tax return for 2019. Petitioner's FAGI was si...
Taxpayer And Ex-Spouse Are Not The Same "Consumer"
December 17, 2024 - Bulletin Print Report
Taxpayer, ("TP") and Ex-Spouse used to be married. While married, TP drove a 2020 Ford Expedition, ("OV"), that was titled in Ex-Spouse's name...
Crypto Accounting Changes On The Horizon
December 17, 2024 - Bulletin Print Report
Starting in 2025, the accounting for "crypto" assets will undergo a fundamental change. The company most associated with this asset is, of course, MSTR. Its financial...
Gen Digital, Inc.'s "Closed Transaction"
December 16, 2024 - Bulletin Print Report
Gen Digital, Inc., ("GEN"), recently announced that it has entered into a definitive agreement to acquire MoneyLion, Inc., ("ML"). The acquisition will take...
Right To Purchase Land Is A Capital Asset
December 16, 2024 - Volume 18 Issue 241 Print Report
From 1994 to 2006, L, as sole proprietor, owned and operated LOTC, Inc. (LOTC) which was created to design and build a condominium called the LOT on property owned by LORH.&nbs...
Section 7623 Does Not Create A Right To Money Damages
December 16, 2024 - Bulletin Print Report
On August 16, 2018, M submitted seven claims. At issue here is one of the FINRA awards, which the WBO adjudicated, resulting in a recovery of $179,672.20 for the Government.&nb...
Equipment Was Used To "Process" Electricity
December 16, 2024 - Bulletin Print Report
Potomac Edison, ("PE"), is a public utility. It purchases electricity generated at a power plant outside Maryland and uses its own equipment to carry the electricity...
CHTR's S-4 Confirms Treatment Of GCI Distribution As Merger "Boot"
December 13, 2024 - Bulletin Print Report
The Charter Communications, Inc. S-4, in which it describes the impending business combination to be undertaken with Liberty Broadband, Inc. confirms what we gleaned from the m...
Wash Sale Rule Applies To Exercise Of "Rights"
December 13, 2024 - Volume 18 Issue 240 Print Report
In 1969, the taxpayer purchased 14x shares of stock of a corporation. By virtue of such ownership, he became entitled to subscribe to an additional seven shares of substantiall...
New New York Resident Taxed On Vested "RSUs"
December 13, 2024 - Bulletin Print Report
Prior to October 2018, petitioner, ("P"), was domiciled and resided outside the U.S. and did not work in NYS or NYC. In October 2...
Business Ties Preclude Change Of Domicile
December 13, 2024 - Bulletin Print Report
Petitioners filed Form IT-203 for the year 2018. Petitioners also filed Form IT-203 for the year 2019. Petitioners reported that they were non-residents. Prior to the years at...
Management Agreement Was Not "Substantively A Lease"
December 13, 2024 - Bulletin Print Report
The City purchased the Tiger Point Golf and Country Club in 2012 and began operating it as a public golf course. Between 2012 and 2015, the...
"Boot Relaxation Rule" Applied
December 12, 2024 - Volume 18 Issue 239 Print Report
Y is a registered bank holding company. Y has outstanding 12,313,847 shares of voting common stock which is widely held and publicly traded. N is a corporation recently organiz...
Petition Improperly Brought As An Article 78 Claim
December 12, 2024 - Bulletin Print Report
Petitioner, ("P"), owns two billboards located at 1567 Broadway, New York, New York 10036in Times Square, (the "Properties"). The Properties are desig...
Property Taxes Attach To The Land Itself
December 12, 2024 - Bulletin Print Report
Petitioners, G and K, purchased the subject property...on February 27, 2024. Then, on April 30, 2024, petitioners filed a challenge to the assessment placed on the property for...
Assembly Charges Are Subject To Sales Tax
December 12, 2024 - Bulletin Print Report
Taxpayer, ("TP"), sells home furnishings in Virginia... In Virginia, TP operated twelve retail stores. In addition, TP sells furniture to Virginia customers through a...
"Premature" Gift Of ISO Stock
December 11, 2024 - Volume 18 Issue 238 Print Report
If, in connection with the performance of services, vested stock is acquired pursuant to the exercise of an option, the difference between the fair market value of the stock an...
Gain Deferral Upon Reinvestment Of Proceeds Sometimes Permitted
December 11, 2024 - Bulletin Print Report
Under section 1001(a) of the Internal Revenue Code, the gain from the sale or other disposition shall be the excess of the "amount realized" therefrom over the adjust...
Should Rupert Murdoch Take A Page From An Auto Dealer's Book?
December 11, 2024 - Bulletin Print Report
Rupert Murdoch was rebuffed in his attempt to alter the terms of his testamentary trust which, according to press reports,calls for his heirs to be bequeathed equal share...
Foreign Board Member's Fees Not Subject To N.Y. Withholding Tax
December 11, 2024 - Bulletin Print Report
Petitioner is a corporation with its principal place of business in New York. In 2021, petitioner appointed an Italian citizen and resident...
New Jersey Transit Is Not An "Arm" Of The State
December 11, 2024 - Bulletin Print Report
On February 9, 2017, a busowned and operated by New Jersey Transit, ("NJT"), struck and injured C in Manhattan.C commenced this action on September 18, 20...
Property Not Eligible For "CRA" Tax Exemption
December 10, 2024 - Bulletin Print Report
City Resolution No. 145-86 allows tax exemptions for improvements to real property located within the Community Reinvestment Area, ("CRA"). &nb...
Resident Partners Entitled To A "Subtraction Modification"
December 10, 2024 - Bulletin Print Report
Petitioner, ("P"), is a professional limited liability company, ("LLC"), taxed as a partnership... All of P's partners are New York resident individuals...
Requirements Of An Estoppel Claim Not Satisfied
December 10, 2024 - Bulletin Print Report
On or about February 25, 2022, a 2018 Cadillac Escalade, ("Vehicle A"), which was titled solely in Member's individual name, was sold to... On February 26, 2022,...
Travel Expenses Ruled Non-Deductible
December 10, 2024 - Volume 18 Issue 237 Print Report
The founder of a family-owned manufacturing company that made significant charitable donations was interested in finding the remains of a specific historical object &...
Distribution Resulted From A "Genuine Contraction" Of The Business
December 9, 2024 - Volume 18 Issue 236 Print Report
X operated a "full line" department store, which offered a comprehensive selection of brand merchandise and a number of services, and also offered a variety of credit...
Berry Global Group's Spin-Off Is Not In Jeopardy
December 9, 2024 - Bulletin Print Report
Berry Global Group, Inc., ("BGG"),has had an eventful fall. On November 4, 2024, BGG announced the successful completion of the merger between BGG's&q...
Dealers Must Have Customers
December 9, 2024 - Bulletin Print Report
Congress passed the Securities Exchange Act of 1934, (the "Exchange Act"). The Act required "dealers" to register with the Securities and Exchange Commissio...
The Tax Court Will Not Follow Farhy
December 9, 2024 - Bulletin Print Report
Between November 2001 and September 2005, petitioner created three foreign entities, including S, a foreign corporation. Petitioner did not timely file Forms 5471 from tax year...
Taxable Acquisition Of Control Prevents Spin-Off
December 6, 2024 - Volume 18 Issue 235 Print Report
R was incorporated in 1959. On December 31, 1986, R elected to become an 'S' corporation. S was incorporated in 1981. R and H, an individual, were the sole, equal share...
Sales Did Not "Terminate" In Illinois
December 6, 2024 - Bulletin Print Report
TP's headquarters and U.S. manufacturing facilities, including its inventory, are located in STATE. TP files an Illinois combined return that includes...COMPANY2, ("C2...
"Nextel" Decision Does Not Apply Retroactively
December 6, 2024 - Bulletin Print Report
In Nextel Communications of Mid-Atlantic, Inc. v. Pennsylvania Department of Revenue, 171 A.3d 682 (Pa. 2017), the Pennsylvania Supreme Court held that the 2...
Non-Use-Based Factors May Be Employed To Classify Real Property
December 6, 2024 - Bulletin Print Report
In 2014, the City (of Honolulu) created a new property tax classification under which residential properties that are valued over $1 million and do not have a home exemption (b...
Issuance Of Notice And Demand Found Improper
December 5, 2024 - Bulletin Print Report
In 2017, petitioner and her husband were indicted by a grand jury and charged with criminal tax fraud and failure to file personal income tax returns for the years 2010 through...
Condominium Owners Entitled To "Split Ticket" Classification
December 5, 2024 - Bulletin Print Report
L is a condominium building containing residential units, commercial units, and common elements. Petitioner Owners, ("POs"), are among the group of unit holders who d...
Arizona Lacked "Standing" To Pursue Injunctive Relief
December 5, 2024 - Bulletin Print Report
Arizona, ("AZ"), brings the following claims against the I.R.S.: unlawful denial of general welfare under section 61 of the Internal RevenueCode, and unlawful t...
Convertible Debentures Not "Options"
December 5, 2024 - Volume 18 Issue 234 Print Report
C has 1,337,114 shares of common stock outstanding, held by 227 shareholders. A owns 11.96 percent of the stock; B owns 12.76 percent; C owns 1.03 percent; D owns 1.31 percent;...
Financial Inability To Pay Is Grounds For Abating Negligence Penalties
December 4, 2024 - Bulletin Print Report
Respondent levied interest and a negligence penalty on Taxpayers for their untimely payment of their 2019 personal income taxes. Taxpayers filed a protest. The Administrative H...
I.R.S.'s Perfected Tax Lien Entitles It To "Unclaimed Funds"
December 4, 2024 - Bulletin Print Report
F filed this Chapter 13 bankruptcy petition on January 3, 2023. The I.R.S. timely filed its proof of claim, ("Claim") reflecting that F owed $372,978.51 in tax liabil...
Peanut Drying Trailers Were Not "Off-Highway Transportation Vehicles"
December 4, 2024 - Bulletin Print Report
An I.R.S. audit determined that R owed excise taxes on the sale of three peanut-drying trailers. The district court granted summary judgment in favor of R. The United States ap...
Litigation Awards Not Allocated To Sec. 199 Gross Income
December 4, 2024 - Volume 18 Issue 233 Print Report
P and S file a consolidated income tax return. S manufactured and sold both Product W and Product X in years preceding and after the enactment of Sec. 199, which is effective f...
Los Angeles "Mansion" Tax Is A "Tax" For Tax Injunction Act Purposes
December 3, 2024 - Bulletin Print Report
B appeals the district court's dismissal of his complaint alleging that a City of Los Angeles ordinance, adopted through a citizens' initiative, violated state and fede...
Corporate "Insider" Denied A Theft Loss Deduction
December 3, 2024 - Bulletin Print Report
In February 2014, S began investing in a company called "D." S also made several loans to D. The loans were never repaid. In Marc...
Exchange Prior To Split-Off Disregarded
December 3, 2024 - Volume 18 Issue 232 Print Report
Mr. A owned 1/2 of the capital stock of M corporation, (M), worth $10x, and he also owned 1/2 of the capital stock of O corporation, (O), worth $5x. &nbs...
Late Filed Property Tax Appeal Was Ruled Valid
December 3, 2024 - Bulletin Print Report
The County Board of Equalization's Decision...had been to deny an exclusive use property tax exemption for the parcel. As the Property Owner's appeal had not been filed...
FASB Updates Guidance On "Induced Conversions"
December 2, 2024 - Bulletin Print Report
The Financial Accounting Standards Board, ("FASB"), recently issued Accounting Standards Update, ("ASU"), No. 2024-04, November 2024, entitled "Induced...
New York City's Tax Classification Of Land Was Arbitrary And Capricious
December 2, 2024 - Bulletin Print Report
The premises is a vacant and unimproved land that is zoned as R6 (residential), with a C1-4 commercial overlay. The Department of Finance classified the property as Building Cl...
The "Badges" Of A Unitary Business Were Not Present
December 2, 2024 - Bulletin Print Report
Prior to filing for Chapter 11 bankruptcy in 2008, F's primary business was the operation of "Flying J" interstate travel centers. &...
NOL Sustained After Split-Off Can Be Freely Carried Back
December 2, 2024 - Volume 18 Issue 231 Print Report
On January 1, 1975, X effected a "split-off" of its Division B with the retention of its Division A. The transaction qualified as a reorganization under Sec. 368(a)(1...
PSTX Will Report Its Acquisition As An "Open" Transaction
November 29, 2024 - Bulletin Print Report
PoseidaTheraputics, Inc., ("PSTX"), announced it has entered into a merger agreement to be acquired by Roche Holdings, Inc., ("R"). &n...
Grand Canyon University Is A Non-Profit Institution
November 29, 2024 - Bulletin Print Report
GCU,a private university in Arizona, applied to the Department of Education, (the "Department"), to be recognized as a non-profit institution under the Higher E...
St. Louis County Is Not A "Local Government"
November 29, 2024 - Bulletin Print Report
In 2022, Missouri, ("MO"), voters amended the MO Constitution and legalized the recreational use and possession of marijuana. Eac...
Sec. 357(c) Does Not Apply To An Acquisitive Reorganization
November 29, 2024 - Volume 18 Issue 230 Print Report
A owned all the stock of X and Y. Y acquired the assets of X in exchange for an amount of Y stock constituting Sec. 368(c) control and the assumption by Y of X's liabilitie...
Petition Was Received Four Days Late
November 27, 2024 - Bulletin Print Report
For tax year 2021, petitioners claimed a Veterans Property Credit, (the "Credit"), in an amended return filed with the Department. For tax year 2022, petitioners clai...
Insufficient Acreage Devoted To Horticultural Uses
November 27, 2024 - Bulletin Print Report
Land which is classified under c. 61A receives a lower tax assessment. C. 61A provides a tax break for landowners who devote at least five acres of their property to agricultur...
OKE Announces Another MLP "Roll-Up"
November 27, 2024 - Bulletin Print Report
Question: When can a master limited partnership be a party to a reorganization? Answer: When the master limited partnership has "checked the box" and elected to be tr...
Investment Losses Reduce Amount Distributable In Partial Liquidation
November 27, 2024 - Volume 18 Issue 229 Print Report
In Rev. Rul. 71-250, 1971-1 C.B. 112, a corporation that owned and operated three TV stations sold one of the stations in July 1970 for $6,000x, realizing net proceeds of $4,50...
KODK Mulling The Termination Of Its Pension Plan
November 26, 2024 - Bulletin Print Report
Back in the '80s, leveraged buyout artists would frequently terminate their targets' defined benefit plans, thus providing a "source of funds" to help finance...
FDIC Special Assessments Are Deductible
November 26, 2024 - Bulletin Print Report
On November 29, 2023, the FDIC adopted the "Final Rule" to implement a special assessment to recover the loss to the Deposit Insurance Fund, ("DIF"), arisin...
Small Cap Merger Features An "Interim Financing Agreement"
November 26, 2024 - Bulletin Print Report
Rafael Holdings, Inc., ("RFL"), and Cyclo Therapeutics, Inc., ("CYTH"), recently announced that they have entered into a definitive merger agreement pursuan...
Combined Reports Not Required
November 26, 2024 - Volume 18 Issue 228 Print Report
AF is a publicly-held holding company for A. A is a federal savings and loan association and is principally engaged in taking deposits and making mortgage loans. <...
PEP In Line To Record A "Holding" Gain
November 25, 2024 - Bulletin Print Report
PepsiCo, Inc., ("PEP"), on November 22, 2024, announced its agreement to acquire the remaining fifty percent interest in Sabra Dipping Company, LLC, ("Sabra"...
Increase In Conversion Ratio Of Debentures Is A "Purge" Distribution
November 25, 2024 - Volume 18 Issue 227 Print Report
TP intends to elect to be treated as a REIT. In connection with the election, prior to the end of the First REIT Taxable Year, TP intends to distribute all of its earnings and...
Laundering Textiles Is Not "Processing"
November 25, 2024 - Bulletin Print Report
Each week A sanitizes more than 600,000 pounds of textiles and rents them to entities in the healthcare industry. Both new and used textiles are treated to remove bacteria, oil...
Remedial Actions Survive The Death Of The Plaintiff
November 25, 2024 - Bulletin Print Report
Y and C filed their amended complaint on October 5, 2023, which alleges that Defendants filed fraudulent tax forms leading to plaintiffs suffering increased tax liability, and...
AAA Does Not Survive Termination of 'S' Corporation Election
November 22, 2024 - Volume 18 Issue 226 Print Report
X was incorporated as a C corporation on Date 1. It operated as a C corporation until it made its first election to be treated as an S corporation effective Date 2. At that tim...
Severance Pay Found To Be New York Source Income
November 22, 2024 - Bulletin Print Report
Petitioner filed form IT-203, non-resident and part-year resident income tax return,for tax year 2020 on April 8, 2021, requesting a refund... Petitioner reported $111,68...
C.P.A.'s Settlement Payments Were "Non-Business Deductions"
November 22, 2024 - Bulletin Print Report
APPsreported a "business loss" of $5,373,969 on their original 2017 California Form 540 return. APPs filed an amended 2015...
Rebate Amounts Are Excluded From A Distributor's "Gross Revenues"
November 22, 2024 - Bulletin Print Report
D operates as a wholesale drug distributor selling "legend drugs"--including generic prescriptions ("generic Rx") and brand name prescriptions, ("brand...
Back-To-Back Loans Recast
November 21, 2024 - Volume 18 Issue 225 Print Report
TP is a "U.S. shareholder" within the meaning of Sec. 951(b) of CFC1, CFC2, Lower-Tier CFCs, and CFC 8. CFC1 wholly owns CFC2. CFC2 wholly owns CFC3 and CFC7. CFC1 an...
Election "Out Of" Installment Method Reporting Is Binding
November 21, 2024 - Bulletin Print Report
On August 22, 2016, APP sold property located in Beverly Hills, California, (the "Property"), for $10,650,000. APP received from the buyer a promissory note in the am...
Nixxy, Inc. To Undertake A "Disproportionate" Spin-Off
November 21, 2024 - Bulletin Print Report
One of the more unusual deals we have recently encounteredis being engineered by Nixxy, Inc. ("NIXX"). NIXX has announced it is moving forward with its previous...
Recreational Boats Were Subject To Use Tax
November 21, 2024 - Bulletin Print Report
The Department of Taxation audited LCS and L from April 1, 2011, through June 30, 2015, after a review of their filing history suggested that the appellants may be underreporti...
Is Berry Global Group's Spin-Off Safe?
November 20, 2024 - Bulletin Print Report
On November 4, 2024, Berry Global Group, Inc., (B), completed the spin-off of its health and hygiene business. The spin-off was (i) intended to be tax-free; and (ii) part of a...
Convertible Shares Not Considered A "Collectible"
November 20, 2024 - Volume 18 Issue 224 Print Report
Sponsor M (SM) established Trust T (TT). TT issues units ("Shares"), each representing an undivided interest in, and ownership of, TT's net assets. The Shares are...
Clerical Error Did Not Invalidate A Notice Of Deficiency
November 20, 2024 - Bulletin Print Report
Plaintiff, ("P"), is a Delaware limited partnership headquartered in Massachusetts. P has elected to be taxed as a 'C' corporation for U.S. federal income tax...
Section 1211(b) Does Not Provide A "Standalone" Capital Loss Deduction
November 20, 2024 - Bulletin Print Report
During 2002, MR and MRS (the "Ws") each owned 50 percent of CyberAdvice, ("CA"), a partnership for federal income tax purposes.  ...
Amusement Park Rides Were "Fixtures"
November 20, 2024 - Bulletin Print Report
TP operated a themed amusement park, (the "Park"). TP submitted a refund request for BTPP tax paid, contending that certain items of property...were in fact "fix...
What Will Become Of SAVE's NOLs?
November 19, 2024 - Bulletin Print Report
Spirit Airlines, Inc.,("SAVE"), not unexpectedly, in light ofthe rejection by the Justice Department of its proposed merger with JetBlue Airways Corporati...
Warrants And Options Constitute "Liabilities"
November 19, 2024 - Volume 18 Issue 223 Print Report
Pursuant to a plan of reorganization, X corporation, (XC), acquired all of the assets of Y corporation, (YC), in exchange for some shares of XC's voting common stock....
Illinois Use Tax Properly Imposed On Aircraft Lessor
November 19, 2024 - Bulletin Print Report
T is a limited liability company formed in Delaware in November 2015. T purchased "the aircraft" for $16.5 million. T took delivery of the aircraft in Connecticut. T...
XOM Properly Deducted The Interest Portion Of Production Payments
November 19, 2024 - Bulletin Print Report
On May 2, 2000, EMMEGML, an Exxon Mobil Corporation, ("EM"), subsidiary, and the Government of Qatar, ("Q"), entered into the "DPSA." The DPSA cre...
Foreign Tax Credits Were Not "Plan Assets"
November 19, 2024 - Bulletin Print Report
John Hancock, ("J"), is an insurance company. It provides investment and recordkeeping services to 401(k) retirement plans. One such plan is the "Romano Law Plan...
The Willens Deal Survey November 2024
November 18, 2024 - The Deal Survey: November 2024 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.
Default On A Retirement Plan Loan Triggers Deemed Distribution
November 18, 2024 - Volume 18 Issue 222 Print Report
In December 2007, petitioner borrowed $29,700 from his Sec. 401(k) retirement plan. The proceeds of the loan were paid to him in a lump sum by check on December 24, 2007....
Outside Basis Reduced By Previously Allowed Losses
November 18, 2024 - Bulletin Print Report
From 2014 to 2017, S owned a majority interest in O. S deducted the "excess losses" (i.e., losses in excess of outside basis) on its 2014 and 2015 returns. For 2014,...
Advertising Services Are Not "Information Services"
November 18, 2024 - Bulletin Print Report
Petitioner anticipates establishing a web site that maintains a directory of persons who assist and represent claimants seeking social security disability benefits....
A REIT's "GAAP Intangible Assets" Are Treated As "Real Estate Assets"
November 18, 2024 - Bulletin Print Report
Section 856(a) of the Code provides, "For purposes of this title," the term, "real estate investment trust," ("REIT"), means a corporation, trust...
Texas Court Interprets The Phrase "Net Gain"
November 15, 2024 - Volume 18 Issue 221 Print Report
The Texas franchise tax is imposed on each taxable entity that does business in Texas or that is chartered or organized in Texas. The tax i...
The "Substantial Non-Exempt Purpose" Test Was Properly Applied
November 15, 2024 - Bulletin Print Report
M is a non-profit corporation. It has participated as an "accountable care organization," or "ACO," in the Medicare Shared Savings Program, (the "MSSP&...
Mere Interloper Lacked Standing To Challenge Tax Abatement Decision
November 15, 2024 - Bulletin Print Report
Plaintiff's complaint in lieu of prerogative writs challengeda tax abatement awarded by defendant, City of Newark, New Jersey, to defendant Weequahic Preservation, LL...
Defective Petition Led To Its Dismissal
November 15, 2024 - Bulletin Print Report
Petitioner, Cyclometrix, LLC, filed a petition with the Division of Tax Appeals (New York) on March 2, 2023. The petition so filed included...
Liberty Broadband Will Merge With And Into Charter Communications
November 14, 2024 - Bulletin Print Report
Liberty Broadband Corporation, ("LBC"), owns approximately 45.6 million common sharesofCharter Communications, Inc., ("CHTR"), a stake sufficien...
Liberty Media Will Split-Off Live Nation
November 14, 2024 - Bulletin Print Report
Liberty Media Corporation, ("LMC"), announced "it is pursuing a plan to 'split-off' the Liberty Live Group." Not surprisingly, the split-off is inte...
Warrants Not Indirect Non-Qualifying Consideration For Stock
November 14, 2024 - Volume 18 Issue 220 Print Report
X corporation, (X), acquired all of the stock of Y corporation, (Y), pursuant to a plan of reorganization. Under the plan, each share of Y voting common stock was exchanged for...
The "Permit" Was A Real Property License (Not Lease)
November 14, 2024 - Bulletin Print Report
S is a political subdivision of the State of Texas. S owns the fee interest in Park. S granted LT a "Commercial Limited Use Permit,&qu...
Are Vanguard's "Tax Indemnity Payments" Includible In Gross Income?
November 13, 2024 - Bulletin Print Report
Vanguard's popular target-date funds featuredtwo "tiers," an "institutional" tier, for retirement funds with in excess of $100 million in assets;&...
Owner-Lessor Becomes Owner-Operator Of Replacement Property
November 13, 2024 - Volume 18 Issue 219 Print Report
TP owned a resort hotel which was leased to, and operated by, another taxpayer under a "net lease" arrangement. In 1968, the hotel was completely destroyed by fire. T...
Debtor Did Not Act With The Intent To Hinder The Trustee
November 13, 2024 - Bulletin Print Report
By March 2020, the Ws' accountant had prepared their 2018 tax returns, which showed substantial over-payments. The Ws "elected to apply their 2018 over-payments to the...
Lessee's Departure Caused A Change In "Use" Of Property
November 13, 2024 - Bulletin Print Report
Plaintiff, ("P"), is a religious organization exempt from federal income taxation pursuant to section 501(a) and (c)(3) of the Code. P's property includes SH, (th...
Taxpayer's Substantial Compliance Arguments Fall On Deaf Ears
November 12, 2024 - Bulletin Print Report
During 2014, IQHwas a 'C' corporation owned entirely by G and his wife. IQH filed a consolidated return with its subsidiary, IQP. In 2014, IQP was an active manuf...
Assessment Of Sales Tax Found To Violate Commerce Clause
November 12, 2024 - Volume 18 Issue 218 Print Report
TP is a Florida corporation doing business as "1V.com." All of the company's sales were initiated online. TP specialized in the sale of flowers, gift baskets, and...
Energy Services To Residential Buildings Not Subject To Sales Tax
November 12, 2024 - Bulletin Print Report
Petitioner is the landlord of several residential apartment buildings located in New York State. Each building contains multiple units peti...
Resident Credit Limited To Tax Paid On Income Also Taxed In Wisconsin
November 12, 2024 - Bulletin Print Report
In 2021, petitioners sold a condominium in Colorado that resulted in a capital gain of $1,300,401. Petitioners paid $56,504 in non-resident income tax to Colorado on the capita...
Motel Not Similar Or Related In Service Or Use To Apartment Building
November 11, 2024 - Volume 18 Issue 217 Print Report
TP owned a three-unit, three-story apartment building. As the landlord, TP performed certain duties, such as listing and showing vacant apartments, arranging for repairs, and m...
Allocated Purchase Price Was The "Original Cost" Of Solar Equipment
November 11, 2024 - Bulletin Print Report
Plaintiff owns a solar energy generation facility in Maricopa County, Arizona, (the "Facility"). The Facility includes renewable energy equipment, (the "Equipmen...
Diverted Trust Fund Taxes Are Included In Gross Income
November 11, 2024 - Bulletin Print Report
When an individual diverts/appropriates ("diverts") trust fund taxes, does that individual have taxable income in the amount of the diverted taxes for the taxable yea...
Only "Incidental" Investment Income May Be Deducted
November 11, 2024 - Bulletin Print Report
Petitioners are a group of investment companies that buy and sell distressed debt instruments such as credit card debt. All of their income comes from owning and trading in the...
Loss Corporation Can Use Losses From Discontinued Business
November 8, 2024 - Volume 18 Issue 216 Print Report
M was organized in 1947 by three individuals who owned an equal number of shares of its stock. From the date of its incorporation until the early part of 1958, it was engaged i...
Taxpayer Was A "Speculative Builder"
November 8, 2024 - Bulletin Print Report
R purchased the nine properties at issue and sold them for more than two to three times their original purchase price. Six of the nine properties were demolished down to the fo...
Receipt And Delivery Of Vehicles Occurred In West Virginia
November 8, 2024 - Bulletin Print Report
The Department found that S was selling motor vehicles to Ohio buyers. The Department determined that S's sales of motor vehicles to Ohio purchasers were taxable gross rece...
Full-Time Employee Could Not Be A "Real Estate Professional"
November 8, 2024 - Bulletin Print Report
In 1994, G began renting out a California property he owned. In 2016, G bought a property in Hawaii. In 2017, he began renting out the Hawa...
Widower Denied Property Tax Exemption
November 7, 2024 - Volume 18 Issue 215 Print Report
The subject property (for which a property tax exemption is being sought) is located in Olympia, Washington. On June 4, 2012, the Owner applied for property tax assistance unde...
FBAR Penalties Are Not Taxes
November 7, 2024 - Bulletin Print Report
Petitioners were assessed FBAR penalties. The BFS informed JJ that the Treasury Offset Program, ("TOP"), would withhold funds from her monthly Social Security benefit...
Securing A Basis "Step Up" At A "Manageable" Cost
November 7, 2024 - Bulletin Print Report
Prominent among any buyer's objectives, from a tax point of view, when pursuing a taxable acquisition, is to achieve a "cost" basis in the target's assets. Su...
Device Used With "AID" System Is Exempt From Sales Tax
November 7, 2024 - Bulletin Print Report
C is a wholesaler and retailer of pharmaceutical equipment and supplies, including the "Device." The Device is intended for single patient use and is generally sold t...
Sec. 381 Does Not Apply To A "Divisive" Reorganization
November 6, 2024 - Volume 18 Issue 214 Print Report
A and B own all of the stock of M Corporation, a domestic corporation engaged in the business of farming. "Serious disputes" arose between A and B regarding operation...
"Mystery Rooms" Are Places Of Amusement
November 6, 2024 - Bulletin Print Report
P is a New York limited liability company located in New York City. P provides "mystery rooms" where groups of up to ten people are locked in a room and collectively...
Sales Of Installed Appliances Are Subject To Sales Tax
November 6, 2024 - Bulletin Print Report
L owns and operates a retail appliance store in Illinois. L's store is a direct competitor of Lowe's, ("LO"). In Illinois...
Taxpayer Did Not Purchase An Installation Service
November 6, 2024 - Bulletin Print Report
Petitioner is a full-service marina located on an inland basin. Petitioner has owned and maintained fixed wooden docks attached to wooden pilings embedded in the basin floor. P...
Assuming Contingent Obligations in a Reorganization
November 5, 2024 - Volume 18 Issue 213 Print Report
In the case of a reorganizationwhich involvesthe conveyance of the target's properties to the acquiring corporation, Sec. 381(a)(2) of the Internal Re...
Pre-Sale Notice Of Right To Proceeds Satisfies Due Process
November 5, 2024 - Bulletin Print Report
Petitioner foreclosed claimants' properties effective March 31, 2021. After foreclosure, petitioner mailed two letters to all claimants. The first informed former property...
A "Substitute For Return" Does Not Obviate Failure To File Penalties
November 5, 2024 - Bulletin Print Report
Advice has been requested whether a taxpayer who fails to file a tax return may be subjected to a penalty under section 6651(a)(1) of the Internal Revenue Code for "failur...
Form Over Substance Is Not The Law In Pennsylvania
November 5, 2024 - Bulletin Print Report
In Commissioner v. National Alfalfa Dehydrating & Milling Co., 417 U.S. 134 (1974), the United States Supreme Court famously stated, "While a taxpay...
Altria Group, Inc. Takes The Measure Of The I.R.S.
November 4, 2024 - Bulletin Print Report
Altria Group, Inc., ("MO"), has sometimes put its prodigious cash flow to work through investments that only occasionally relate to its principalbusiness of man...
The Limited Scope Of Sec. 269(b) Is Confirmed
November 4, 2024 - Volume 18 Issue 212 Print Report
As of the close of its taxable year ended August 31, 1985, X had net operating loss (NOL) carryovers. On December 31, 1985, X purchased all the stock of Y in exchange for 75,00...
Collection Of Proceeds Is Necessary For A Whistleblower's Award
November 4, 2024 - Bulletin Print Report
In 2010, petitioner commenced his whistle-blower claim by filing Form 211...alleging that target, an entertainment and hospitality provider, had repeatedly violated internal re...
Corrections Made To Federal Return Do Not Always Flow-Through
November 4, 2024 - Bulletin Print Report
In 2018, Plaintiff, ("P"), had a business selling merchandise over eBay. On their original Schedule C, Ps misstated their gross r...
Related Member Intangible Expenses Must Be Added Back
November 1, 2024 - Bulletin Print Report
TP filed Virginia, ("V"), corporate income tax returns...claiming a full exception to the add-back for intangible expenses paid to an affiliate on the basis that &quo...
Stock Received For Employment Contract Included In Gross Income
November 1, 2024 - Volume 18 Issue 211 Print Report
Mr. A owned all of the outstanding stock of X corporation, (X). X was engaged in the home construction business. Mr. A was the president of X and was actively involved in its b...
Claim For Surplus Foreclosure Proceeds Was Timely Submitted
November 1, 2024 - Bulletin Print Report
D failed to pay real estate taxes on the "Property" for fiscal year 2007. The Town executed a tax lien on the Property and...filed a petition to foreclose in 2013. Ni...
NQSOs And RSUs Yield Ordinary Compensation Income
November 1, 2024 - Bulletin Print Report
In 2010, S hired APP as its president and CEO pursuant to an Offer of Employment letter. The letter states, "In connection with your employment...you will be eligible to r...
Taxpayer Afforded The Non-Recognition Benefits Of Sec. 1033
October 31, 2024 - Volume 18 Issue 210 Print Report
R and E each owned 50 percent of petitioner's stock. Petitioner owned and operated a plant which was struck by lightning and destroyed by fire on July 30, 1957....
Realty Transfer Tax Abated On Substance Over Form Grounds
October 31, 2024 - Bulletin Print Report
ES, as Executor for the Estate of EAS, transferred property to D. Petitioners claimed an exemption from the Realty Transfer Tax ("RTT") on the basis that the property...
Taxpayer Was Engaged In The Transportation Business
October 31, 2024 - Bulletin Print Report
PacificCorp, ("PC"), is a regulated electric power company that conducts business in Wyoming via its Rocky Mountain Power business unit....
"CRSC" Is Not Included In "Disposable Income"
October 31, 2024 - Bulletin Print Report
O is a 100 percent disabled veteran. He has been receiving Combat Related Special Compensation, ("CRSC"), and does not receive military retirement pay. <...
Debt Financed Redemption Is Timely
October 30, 2024 - Volume 18 Issue 209 Print Report
The decedent, at the time of her death, owned stock in a closely-held family corporation comprising more than 35 percent of the adjusted gross estate. &n...
Non-Participating Royalty Interests Are Vested Real Property Interests
October 30, 2024 - Bulletin Print Report
In 1884, WM acquired 201 acres of land in fee simple ("parent tract"(, with no oil and/or gas or other reservations included within the conveyance. &n...
Range Balls Were Not Purchased For Resale
October 30, 2024 - Bulletin Print Report
During the period at issue, P operated a public golf course. P's facility included a golf course, driving range...and pro shop. P charg...
Dormant Corporation's REIT Election Was Effective
October 30, 2024 - Bulletin Print Report
In order to be eligible forcertain tax benefits or tax classifications, it is necessary to demonstrate that a specified percentage of an entity's gross receipts, gros...
Fund Payment Found To Be Similar To Insurance
October 29, 2024 - Volume 18 Issue 208 Print Report
LB (the decedent) died intestate on October 14, 1973. Petitioner retained an attorney, L, to represent her in the administration of the estate. L collected insurance proceeds o...
Spin-Off Of Bitcoin Miner Will Not Qualify Under Section 355
October 29, 2024 - Bulletin Print Report
OLB Group, Inc. will distribute "all of itsoutstanding shares of common stock of DMint, Inc. to holders of its common stock and Series A Preferred Stock on a pro rat...
Untimely Claim For Refund Not Honored
October 29, 2024 - Bulletin Print Report
Appellant passed away on February 8, 2010, before filing his 2009 and 2010 California personal income tax returns. Respondent sent appellan...
Community Blood Center Eligible For Ad Valorem Property Tax Exemption
October 29, 2024 - Bulletin Print Report
In 1973, Congress enacted a National Blood Policy recognizing the federal interest in establishing a community-based volunteer blood donor system across the U.S. The Policy has...
MSTR's Impairment Losses Lead To Deferred Tax Assets
October 28, 2024 - Bulletin Print Report
Microstrategy, Inc.'s most recent Form 10-K lists a deferred tax asset in the amount of $652,280,000 with the explanatory caption, "Digital Asset Impairment Losses.&qu...
I.R.S. Rules On Berry Global Group/Glatfelter Corporation RMT
October 28, 2024 - Bulletin Print Report
ED (Berry Global Group) is the parent of a worldwide group of entities, (the "ED Group"). ED directly owns the stock of ID. ID di...
Advertising Costs Ruled Deductible
October 28, 2024 - Volume 18 Issue 207 Print Report
A is the sole general partner of B, a publicly-traded partnership (PTP) organized in 1987. B is engaged in providing investment management and advisory services....
Untimely Claim Prohibits Recovery Of Surplus Foreclosure Proceeds
October 28, 2024 - Bulletin Print Report
In response to Rafaeli, LLC v. Oakland Co, 505 Mich 429 (2020), the Michigan Legislature passed 2020 PA 255 and 2020 PA 256, which were given immediate effec...
Solely For Voting Stock Requirement Flunked
October 25, 2024 - Volume 18 Issue 206 Print Report
For valid business reasons, X corporation, (X), desired to acquire all of the stock of Y corporation, (Y). Mr. A owned all of the stock of X. X manufactured metal products; and...
Renal Disease Facilities Are Not Outpatient Facilities
October 25, 2024 - Bulletin Print Report
NMSA 1978,Section 7-9-93A provides, "Receipts of a 'health care practitioner' for commercial contract services or Medicare part C services paid by a managed care p...
The Party That Induced Importation Is Liable For Excise Tax
October 25, 2024 - Bulletin Print Report
T is a wholesaler and retailer of truck parts. From 2012 to 2017, T purchased tires wholesale from Chinese manufacturers, which shipped the tires to T in Houston. There is no s...
Optional Collision Damage Waiver Not Subject To Sales Tax
October 25, 2024 - Bulletin Print Report
The facts as presented in your letter ruling request are summarized as follows: Applicant is a rental car service whichspecializesin...
Sales Tax Is A "Destination" Tax
October 24, 2024 - Bulletin Print Report
Petitioner asks whether it must include sales tax for information technology services rendered to clients with shipping and postal addresses in New York State, but with out-of-...
10th Circuit Weighs In On Economic Substance
October 24, 2024 - Volume 18 Issue 205 Print Report
SCI, an 'S' corporation wholly-owned by Mr. Carlos E. Sala, (S), acquired, in 2000,long and short foreign currency options and contributed them to a par...
The Lessee's Use Of Governmental Property Precluded Exemption
October 24, 2024 - Bulletin Print Report
The State owns the "Hospital Property," ("HP"). The HP is "acquired institutional land" and is held for the benefit of Wyoming State Hospital.&nbs...
Devices And Appliances Were Not Exempt "Medicines"
October 24, 2024 - Bulletin Print Report
APP sells and leases prosthetics, orthotics, and other medical supplies. APP purchases durable medical equipment, ("DME"), ex-tax and sells or rents the DME to its cu...
Who Gets A Deduction For Cancelled Options?
October 23, 2024 - Volume 18 Issue 204 Print Report
X will form SH as a wholly-owned subsidiary. SH will then merge into Y, with Y as the surviving corporation. Former shareholders of Y shall become entitled to receive "$z&...
Fees Paid To A "Place Of Games" Is Subject To Sales Tax
October 23, 2024 - Bulletin Print Report
Applicant manages and oversees a baseball filed complex where they charge teams and organizations to use the fields for practices, games, and events. Applicant already charges...
An Identifiable Event Fixed The Date Of Debt Discharge
October 23, 2024 - Bulletin Print Report
In 2007, S purchased the Point Lookout property at issue. The contract sales price was $1,214,865, with $1,000,000 of the purchase price funded by a loan. S signed a note...
The "Attachment" Requirement For Powers Of Attorney Is Regulatory
October 23, 2024 - Bulletin Print Report
V is a professional-employer organization that provides other companies with services to outsource employee-management tasks. V withholds, reports, and pays employment-related...
The Willens Deal Survey October 2024
October 22, 2024 - The Deal Survey: October 2024 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.
Section 280E (Once Again) Is Ruled To Be Constitutional
October 22, 2024 - Bulletin Print Report
Patients Mutual Assistance Collective Corporation, Inc., ("P"), is a corporation that operates a medical cannabis dispensary licensed by the State of California. Duri...
Successor Corporation Inherits Target's NOLs
October 22, 2024 - Volume 18 Issue 203 Print Report
A corporation required to file the Indiana corporate income tax return is entitled to a net operating loss (NOL) deduction. A corporation's Indiana net operating loss deduc...
Change In Tax Rolls Was Invalid
October 22, 2024 - Bulletin Print Report
Plaintiff, ("P"), owns a warehouse that it leased to S for use as a marijuana grow facility. Defendant, ("D"), establis...
Only The "20% Repatriation Amount" Is Included In MSFT's Sales Factor
October 22, 2024 - Bulletin Print Report
The requirement to add the "Federal Repatriation Amount" to income was a single, transitional provision of the 2017 Tax Cuts and Jobs Act. Oregon incorporated the fed...
Estate And Beneficiary Are Related Persons
October 21, 2024 - Volume 18 Issue 202 Print Report
BLM passed away on March 3, 2009, and in her will, devised real property ("the property") to her son, NCM, and her three grandchildren, JM, MM, and KM, in equal share...
Liens Held By The State Are Superior To Property Tax Liens
October 21, 2024 - Bulletin Print Report
CK failed to pay property taxes on a parcel of land...between 2008 and 2018. In May 2019, W purchased from the Treasurer the tax liens on CK's property by paying the unpaid...
Service Provider Was Not In The Business Of Mining
October 21, 2024 - Bulletin Print Report
Taxpayer, ("TP"), is an Indiana excavating company. The Department conducted an audit review of TP's business records. The Departme...
Propane Was Used For Residential Purposes
October 21, 2024 - Bulletin Print Report
Petitioner's primary residence is in St. Lawrence County (N.Y.). Petitioner has propane delivered by a supplier into four propane tanks on th...
Bankruptcy Filing Does Not Stay A Whistleblower Case
October 18, 2024 - Bulletin Print Report
During 2012, petitioner engaged in a transaction with the target. Petitioner filed a whistle-blowerclaim in May 2015 in which he asserted that the target incorrectly repo...
UGMA Stock Custodian Has Prohibited Interest in the Corporation
October 18, 2024 - Volume 18 Issue 201 Print Report
X Corporation, (X), has outstanding voting common stock all of whichwas owned by Mr. A, Mrs. B, and Mr. C. Mr. A and Mrs B were husband and wife and Mr. C was t...
Dance Studios Scholarships Did Not Render It A "Charitable Institution"
October 18, 2024 - Bulletin Print Report
The subject property is a facility with three distinct studios and common space. LE uses all of the subject property. LO also operates out of the subject property, "offeri...
Rental Real Estate Losses Were Properly Disallowed
October 18, 2024 - Bulletin Print Report
W organized WAL, LLC in 2015 to open an assisted living facility. To that end, W purchased a single-family home ("group home") in 2016. W began repairing the group ho...
Cosmetology School Not An "Educational Institution"
October 17, 2024 - Volume 18 Issue 200 Print Report
TPs operate private, for-profit cosmetology school franchises in Washington. The Department of Revenue (Department) determined that TPs had incorrectly taken deductions from gr...
Taxpayer Did Not Qualify As A "Rural Physician"
October 17, 2024 - Bulletin Print Report
Taxpayer, ("TP"), works as a physician at BMC in C and resides in B, 2.1 miles from the hospital. C has 2,200 residents, and B has 4,400 residents. Both C and B are i...
Housing Complex For Senior Residents Exempt From Property Tax
October 17, 2024 - Bulletin Print Report
H consisted of a four-building campus containing twenty-nine apartments. H operates as a housing complex for senior residents of Martha's Vineyard, ("MV").<...
Does The Five-Hour Energy Founder Have A Leg To Stand On?
October 17, 2024 - Bulletin Print Report
The Wall Street Journal, on October 16, 2024, in a page one profile of Mr. Manoj Bhargava, ("MB"), the brains behind the Five-Hour Energy phenomenon, spent a lot of t...
Utility's Loss Not Compensated For "By Insurance Or Otherwise"
October 16, 2024 - Volume 18 Issue 199 Print Report
TP, a public utility, engaged in the business of generating and distributing electricity, abandoned a partially completed nuclear generating plant.  ...
Medical Equipment Is Exempt From Sales And Compensating Use Tax
October 16, 2024 - Bulletin Print Report
Petitioner, ("P"), sells durable medical equipment... Among the products it sells to New York customers is the "Device," a portable electrotherapy device us...
I.R.S. Explores The "Specified Commodity" Exception
October 16, 2024 - Bulletin Print Report
In general, the effective rate of tax on a U.S. shareholder's section 965 inclusion amount varies based on the "cash position" of the U.S. shareholder's SFCs....
Assets Contributed To "FLP" Included In Gross Estate
October 16, 2024 - Bulletin Print Report
MR passed away in 1963, leaving MS with the family business. MI is MS's great nephew, in whom MS took a particular interest. On January...
Non-Resident's Sale Of Equity Interest Generated "Apportionable" Income
October 15, 2024 - Bulletin Print Report
The income at issue arose from the claimants selling 25 percent of their interest in the company. The company develops and sells skincare products throughout the country. The c...
Section 246(b) Operates To Restrict Certain Deductions
October 15, 2024 - Bulletin Print Report
1 DC has a GILTIinclusion under section 951A of 200x dollars, a gross up for deemed paid foreign tax credits under section 78 of 20x dollars attributable to its GILTI inc...
Indirect Sales Are Covered By Sec. 267
October 15, 2024 - Volume 18 Issue 198 Print Report
On March 18, 1955, the Hs purchased Golden State, (GS), a hospital, for $975,000. Mr. H borrowed money from his sister for which he gave her a note. The sister transferred the...
Purposefully Discriminatory Law Warranted A Permanent Injunction
October 15, 2024 - Bulletin Print Report
F sells coal produced in Illinois. Kentucky utilities are regulated by the Kentucky Public Service Commission, ("PSC"). While Kentucky imposes a 4.5 percent severance...
Flunking Sec. 351 Leads To Sec. 338(h)(10) Election
October 14, 2024 - Volume 18 Issue 197 Print Report
P is the parent of a consolidated group that included S. S was engaged in Business A. In Year 1, P decided to terminate its involvement in Business A. P and Group (G) entered i...
Taxpayer Did Not "Establish" Its Payments Constituted Restitution
October 14, 2024 - Bulletin Print Report
Pursuant to a court order, TP made "Payments" to a Government Agency; and TP's wholly-owned 'S' corporation forgave debt issued to TP's customers. TP...
Employees Of Motor Carriers Are Only Taxed In Their State Of Residence
October 14, 2024 - Bulletin Print Report
Taxpayer and his wife are residents of Kentucky. Taxpayer was employed by an Indiana freight transportation company and annually filed a reciprocal non-resident individual inco...
Pennsylvania Properly Taxed The Gain Realized On A Like Kind Exchange
October 14, 2024 - Bulletin Print Report
The Pennsylvania Tax Reform Code of 1971, (the "TRC"), taxed net gains...from the sale, exchange or other disposition of property as income. The gain is reco...
Downstream Merger Treated As A Redemption
October 11, 2024 - Volume 18 Issue 196 Print Report
C is a corporation engaged in Business. C is an 'S' corporation. The Continuing Shareholders own "a%" of the total shares of C. The Minority Shareholder owns...
Transfer Of Non-Controlling Economic Interest Not Subject To "RETT"
October 11, 2024 - Bulletin Print Report
G and GS are, and have been continuously, since no later than as of July 15, 1997, the sole members in GR, with each holding a fifty percent interest therein. For a period of a...
Assignee Of Motor Vehicle Lease Not Entitled To A Sales Tax Credit
October 11, 2024 - Bulletin Print Report
An individual leased a personal use motor vehicle from a dealership for a term of one year or more, and financed the lease through the dealership's finance/leasing company....
Misspelling Did Not Render Tax Sale Invalid
October 11, 2024 - Bulletin Print Report
R purchased 4.4 acres of land, ("Property"), from SK, Administrator of the Estate of K, ("Estate"), on September 25, 2020. &nb...
EchoStar To Jettison DISH TV And Sling TV In Exchange For Debt Relief
October 10, 2024 - Bulletin Print Report
Recently, DIRECTV, ("DTV"), and EchoStar Corporation, ("SATS"), longtime bitter rivals, announced that they have entered into a definitive agreement pursuan...
Accrued Interest Ruled Deductible
October 10, 2024 - Volume 18 Issue 195 Print Report
CA was incorporated in 1958 to build an office building. That intention was not realized and in 1960 or 1961 CA decided to build a hotel to be financed by an issue of capital s...
A Gutter Protection System Is A Capital Improvement
October 10, 2024 - Bulletin Print Report
Petitioner, ("P"), installs gutter protection systems, (the "system") for customers in New York State. The system is intended to be a permanent installation...
The Illinois Tax System Favors Non-Residents
October 10, 2024 - Bulletin Print Report
Petitioner, ("P"), an Illinois resident, paid his ex-spouse alimony during the tax periods involved. P also made contributions to a Health Savings Account,(&quo...
Interest Paid Out Of Loan Proceeds Not Deductible
October 9, 2024 - Volume 18 Issue 194 Print Report
Appellees are members of two limited partnerships, W and M. Each partnership obtained a loan from MM secured by real property. On November...
Candy And Confectionery Is Subject To Sales Tax
October 9, 2024 - Bulletin Print Report
Petitioner is a customer that occasionally purchases a certain chocolate-covered marshmallow twists product (the "product"). Petitioner describes the product as "...
Installer Of "EECBP" Is Not Eligible For Section 179D Tax Deductions
October 9, 2024 - Bulletin Print Report
O owned 100 percent of the stock of BEI, an 'S' corporation. In 2016, BEI filed an amended 2013 Form 1120-S claiming energy efficient commercial building deductions und...
Closing Agreement Was Valid And Enforceable
October 9, 2024 - Bulletin Print Report
B, a United States citizen, moved to Australia in 1995 to begin employment with a United States Department of Defense contractor at Joint Defense Facility Pine Gap....
Taxpayer Did Not "Process" Produce
October 8, 2024 - Bulletin Print Report
Petitioner, Procacci Brothers Sales Corporation, is headquartered in Philadelphia, Pennsylvania. Petitioner contends it is engaged in the processing of fruits and vegetables an...
Loss From Sale To Shareholders Denied
October 8, 2024 - Volume 18 Issue 193 Print Report
The petitioner is a corporation doing business in Georgia. The petitioner sold, on December 15, 1941, 20 shares of BMC stock to HWH for $1,000. Its basis for gain or loss on th...
Taxpayer Was Not A "Marketplace Facilitator"
October 8, 2024 - Bulletin Print Report
TP provides an advertising exchange that uses software to auction the advertising space of third-party publishers, ("Publishers"), usually mobile-app developers and w...
MCL 211.78t Is The Exclusive Method For Claiming Surplus Proceeds
October 8, 2024 - Bulletin Print Report
M owned real property and fell behind on her 2018 property taxes. M died on February 7, 2021. Ten days later, petitioner obtained a judgment of foreclosure against M's prop...
Absence Of Gross Income And Assets Does Not Preclude REIT Election
October 7, 2024 - Bulletin Print Report
TP was formed on Date 1. TP indirectly owns...multi-family properties. P, a partnership, owns "x%" of the common interests in TP. Each of "y" individual sha...
VSTO Will Reward Its Shareholders
October 7, 2024 - Bulletin Print Report
Vista Outdoor, Inc., ("VSTO"), has turned a bidding war for the company into a veritable bonanza for its shareholders. The company conducts two businesses, one of whi...
A Non-Lawyer May File An Appeal With The Board Of Tax Appeals
October 7, 2024 - Bulletin Print Report
L appeals a decision of the Board of Revision, (the "BOR") valuing the subject property for tax year 2023. The county appellees h...
Dissolution Of Insolvent Subsidiary
October 7, 2024 - Volume 18 Issue 192 Print Report
H files a consolidated return. H has a wholly-owned subsidiary, CX, which has a wholly-owned subsidiary, CY, that is used as a European holding company....
Sterling Bancorp Adopts A Plan Of Complete Liquidation
October 7, 2024 - Bulletin Print Report
Sterling Bancorp, Inc., ("SBT" or the "Company"), the holding company of Sterling Bank and Trust, F.S.B., (the "Bank"), announced that the Company...
Foreign Corporations Are Increasingly Engaging In Spin-Off Transactions
October 4, 2024 - Bulletin Print Report
In the recent past, what had been primarily a domestic corporation phenomenon has begun to be embraced by foreign corporations as well. We are referring tospin-offs. For...
Each Block Of Stock Transferred Treated Separately
October 4, 2024 - Volume 18 Issue 191 Print Report
In 1975, the taxpayer was the president of X corporation and owned more than 50 percent (by value) of its stock, the remainder of the stock being owned by members of the taxpay...
Jury Will Decide Whether Failure To File FBARs Was Willful
October 4, 2024 - Bulletin Print Report
In a summary judgment order, the court stated..."Section 5321(a)(5) does not define willfulness, nor has the Ninth Circuit addressed willfulness in the FBAR context."...
Accountant May Have Committed Breach Of Contract And Malpractice
October 4, 2024 - Bulletin Print Report
V is an online retailer specializing in seed and flower bulbs. In 2017, V engaged JPS to provide various accounting and bookkeeping related services. "Consistent with JPS&...
Section 338 Is The Exclusive Route To Asset Purchase Treatment
October 2, 2024 - Bulletin Print Report
TowneBank, ("TOWN"), and Village Bank & Trust Financial Corporation, ("VBFC"), recently announced a definitive agreement and plan of reorganization purs...
Loss On Sale To Foundation Disallowed
October 2, 2024 - Volume 18 Issue 190 Print Report
Sec. 267(a) provides that no deduction shall be allowed in respect of losses from sales or exchanges of property directly or indirectly between the persons specified within any...
Packaging Does Not Qualify As Manufacturing
October 2, 2024 - Bulletin Print Report
TP has a manufacturing facility in "X" that manufactures vitamins. These products are subsequently delivered to a separate warehouse in "Y" that packs and d...
No Withholding Tax Imposed On A Section 355 Distribution
October 2, 2024 - Bulletin Print Report
D is a domestic corporation that operates Business A. Prior to Date 1, D also operated Business B which currently is operated by C. D has one class of stock issued and outstand...
Jacobs Solutions, Inc. Will Engineer An "RMT" Transaction
October 1, 2024 - Bulletin Print Report
Jacobs Solutions, Inc., ("J"), is on the verge of completing a so-called "Reverse Morris Trust" ("RMT") transaction. In general, an RMT transactio...
Debt Cancellation With Economic Significance Disregarded
October 1, 2024 - Volume 18 Issue 189 Print Report
P is the common parent of a consolidated group. P owns S1. S1 owns 80 percent of S2. S2 owns S3. S1 was the lender on an intercompany indebtedness with S3. S3's liabilities...
Frivolous Appeal Penalties Not Imposed
October 1, 2024 - Bulletin Print Report
Plaintiffsappealed Defendant's offset of their 2023 state income tax refund to pay a delinquent account with the Department of Consumer & Business Services, (&quo...
Transfer Of Realty Between Ex-Spouses Is Subject To "REET"
October 1, 2024 - Bulletin Print Report
In 1994, TP and W were married. In 2005, the couple purchased real property, (the "Property"). The couple separated in 2011, leading to a later amicable dissolution o...
Creation Of Website Constitutes Expansion Of Existing Business
September 30, 2024 - Volume 18 Issue 188 Print Report
D operated a retail shoe store business, under the name "D," since Year 1. D's business enjoys favorable name recognition, customer loyalty, and other elements of...
FBAR Penalties Not Extinguished By Death Of Violator
September 30, 2024 - Bulletin Print Report
B was a United States citizen. During the seven calendar years 2004 through 2010, he had a financial interest or signature authority over nine bank accounts in Israel. B did no...
The Origin Of Legal Fees Stemmed From Business Activity
September 30, 2024 - Bulletin Print Report
Petitioners were members of Home of Christ 4 Church, ("HOC4"). Petitioners were appointed directors of HOCA, Inc. HOCA, Inc. was granted tax-exempt status under secti...
Lessee Lacked "Standing" To Bring A Tax Appeal
September 30, 2024 - Bulletin Print Report
On April 10, 2016, appellantpurchased a 598-square-foot dwelling, (the "subject dwelling"). The subject dwelling is situated within and on an 83-acre community...
Washington "Nexus" Found
September 27, 2024 - Volume 18 Issue 187 Print Report
TP is an out-of-state (vis a vis Washington) corporation that sells "X" supplies by mail order catalog. TP is a wholly-owned subsidiary of P. There are thre...
New Jersey "Mansion" Tax Refund Claim Was Not Timely Filed
September 27, 2024 - Bulletin Print Report
On or about December 7, 2018, plaintiffs purchased the single-family residential condominium...at 1 Shore Lane, Jersey City, Hudson County New Jersey, (the "subject proper...
Owner Lacked The Right To Redeem Delinquent Property
September 27, 2024 - Bulletin Print Report
B is the record owner of property. The property is improved with a residential brick building. That building is a duplex with the adjoining property...owned by a different enti...
Better Business Bureau's Membership Dues Were Taxable
September 27, 2024 - Bulletin Print Report
The Better Business Bureau Great West and the Pacific, ("B"), is a non-profit corporation that provides businesses and consumers...services to promote the "creat...
Distribution By Trust Of Qualified Replacement Property Not A Disposition
September 26, 2024 - Volume 18 Issue 186 Print Report
Trust (T) was established pursuant to a trust agreement dated October 1, 1969, between the Grantor (G) and the Trustee. G made one contribution of property to T at the time it...
Part-Year Resident Denied Badger State Tax Credits
September 26, 2024 - Bulletin Print Report
RI was born in 1985 in the Congo. In 1996, she moved to Tanzania. While residing in Tanzania, she gave birth to four children. On or about...
VA Employee Is Not Serving In The Armed Forces
September 26, 2024 - Bulletin Print Report
Plaintiff lives in Washington, and works at the Portland, Oregon VA hospital as "a Federal civilian employee engaged in Title 38 service as a Respiratory Therapist."&...
PIMCO's CIO Denied California "OSTCs" For Taxes Paid To New York
September 26, 2024 - Bulletin Print Report
H was a partial owner and member of two California limited liability companies, (LLCs), that were classified as partnerships for both federal and California income tax purposes...
The Willens Deal Survey September 2024
September 25, 2024 - The Deal Survey: September 2024 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.
SITE Centers' Spin-Off Will Be Taxable
September 25, 2024 - Bulletin Print Report
SITE Centers, ("S"), is a real estate investment trust, ("REIT"). S has declared the distribution of all of the common stock of a newly-created subsidiary n...
Capitalized Interest Is Not "Paid"
September 25, 2024 - Volume 18 Issue 185 Print Report
In 1991, petitioners purchased a residential property in California for $334,000. They financed this purchase with a $300,000 mortgage loan secured by the property....
Water Is Tangible Personal Property
September 25, 2024 - Bulletin Print Report
Taxpayer, ("TP"),operates a hotel. TP's hotel utilizes a "closed loop" HVAC system. The system contains a fixed volume of treated water t...
Tampa Bay Downs Eligible For Lower Tax Rate On "Handle"
September 25, 2024 - Bulletin Print Report
FL. Stat. section 550.0951 governs the payment of daily license fees and taxes by applicable pari-mutuel facilities such as those operated by APP."Each permit holder...
Liberty Broadband And Charter Communications Trade Merger Proposals
September 24, 2024 - Bulletin Print Report
The persistent (and substantial) discount to net asset value at which the sharesof Liberty Broadband Corporation, ("LBRDK"),trades appears to be, much to...
The Convenience Of The Employer Test Is Impregnable
September 24, 2024 - Bulletin Print Report
Petitioners filed form IT-203 New York State non-resident and part-year resident income tax return,for the tax year 2020. The Division recomputed petitioners' return...
Subscription Agreement Provides "Ownership Interest"
September 24, 2024 - Volume 18 Issue 184 Print Report
A credit is provided to Utah taxpayers when capital gains are expended to purchase qualifying stock in a Utah small business. Utah Code 59-10-1022 provides for a tax credit if...
Documentary Evidence Did Not Support "REET" Exemption
September 24, 2024 - Bulletin Print Report
TP, an LLC, owned Property in Washington, ("W"). TP's membership, ("Members"), was comprised of numerous private individuals with varying percentage int...
Former Hoosier Successfully Changed Domicile
September 24, 2024 - Bulletin Print Report
In late 2020, TP and his wife moved from Indiana to Nebraska, through TP remained an employee of an Indiana company, ("Employer"). For tax year 2021, TP and his wife...
Insurance "Expirations" Are Capital Assets
September 23, 2024 - Volume 18 Issue 183 Print Report
Petitioner (P) was employed as an insurance agent by L. The employment contract between P and L provided that P was to receive 1/2 of the total commissions on the new insurance...
Philadelphia Satisfied Original Service Of Process Requirements
September 23, 2024 - Bulletin Print Report
APP acquired real property, ("Property"), at a sheriff's sale conducted on September 23, 2004. Later, real estate taxes and sewer fees went unpaid. <...
School Board May Appeal A Property Valuation To The BTA
September 23, 2024 - Bulletin Print Report
On May 3, 2022, the school board filed a counter-complaint regarding the tax valuation of certain property. On August 4, 2022, the board of revision determined that the school...
Services Rendered To A Government Can Produce "FDDEI"
September 23, 2024 - Bulletin Print Report
DC, a domestic corporation, is hired by the U.S. Department of Defense, ("DoD"), to provide consulting services. DC provides these services to employees of the DoD&nb...
Is Redemption Part Of the Plan Of Complete Liquidation?
September 20, 2024 - Volume 18 Issue 182 Print Report
P is a closely-held corporation which was incorporated in 1977. P is engaged principally in the business of providing printing services, primarily menus for restaurants.<...
"All Taxes" Includes Interest
September 20, 2024 - Bulletin Print Report
Petitioner, ("P"), contested a determination by the South Carolina Department of Revenue finding it liable for admissions taxes arising out of parasailing rides for w...
Bankruptcy Petition Did Not Terminate A Valid 'S' Election
September 20, 2024 - Bulletin Print Report
K married V in 1990. The couple started a business, "A," in 2000. They elected to make it an 'S' corporation. V and K each owned one hundred shares of the bus...
Right To Hearing Specifically Denied By Statute
September 20, 2024 - Bulletin Print Report
T, a holding company and New York State 'S' corporation, elected to participate in the "PTET" program for 2021. On...
Sec. 483 Does Not Apply To Escrowed Stock Arrangements
September 19, 2024 - Volume 18 Issue 181 Print Report
Under an agreement and plan of merger, the shareholders of X corporation exchanged each outstanding share of their common stock for a specified number of sharesof voting...
Taxpayer's Sales Cannot Be Sourced To Location Of "Subsequent Buyers"
September 19, 2024 - Bulletin Print Report
TP operates its principal place of business outside of Tennessee, ("TN"). TP manufactures its products, (the "Product"), through an affiliated entity, which...
Allocating Proceeds From Sale Of Over-Encumbered Property
September 19, 2024 - Bulletin Print Report
In 2013, the I.R.S. recorded a federal tax lien against Ds' real property, located in Connecticut, for unpaid taxes from fiscal year 2009. Ds filed for Chapter 7 bankruptcy...
Dissolution Of Spousal Partnership Worked A "Transfer Of Ownership"
September 19, 2024 - Bulletin Print Report
F owns the parcel of property at issue, (the "real property"). F is a limited liability company owned by the revocable trust of DP. &nbs...
Reverse Triangular Merger Is A 'B' Reorganization
September 18, 2024 - Volume 18 Issue 180 Print Report
T is a publicly traded domestic corporation which had been formed on Date A. T owns TS1, TS2, and TS3. TS1 owns T4. TS2 and TS3 together wholly own LP. &...
Surplus Foreclosure Proceeds Are Unavailable To Untimely Filers
September 18, 2024 - Bulletin Print Report
Claimants, ("Cs") owned properties for which back property taxes were owed. Petitioner, ("P"), acting as the foreclosing governmental unit, ("FGU"...
Petition To Set Aside "Upset Tax Sale" Was Granted
September 18, 2024 - Bulletin Print Report
G acquired title to the Property in 2014. Both the Deed and the filed Property Registration Form listed G's address...as Brooklyn, New York 11212. Since she obtained title...
"And" Rather Than "Or" Implies Multiple Requirements (Not Alternatives)
September 18, 2024 - Bulletin Print Report
Harris County sued M, alleging that he had failed to file, or timely file, numerous monthly "Dealer's Motor Vehicle Inventory Tax Statements" as required by Tax C...
Are All FBAR Failures Willful?
September 17, 2024 - Bulletin Print Report
N is a dual citizen of the United States and Croatia. N is the founder and CEO of Unique Sports Products, Inc., ("U"), a global sporting goods business. N holds thirt...
Contingent Beneficiaries Denied Loss Deductions
September 17, 2024 - Volume 18 Issue 179 Print Report
On May 28, 1970, the parents of the taxpayers, CW Jr. and SW, executed the instruments necessary to create two trusts for the benefit of their minor grandchildren, the children...
Section 78 Dividends Found Eligible For The Section 245A Deduction
September 17, 2024 - Bulletin Print Report
The Tax Cuts and Jobs Act, ("TCJA"), added to the Code new section 245A, which allows a domestic corporation a deduction for certain dividends received from foreign s...
Tax Court Cannot Issue Advisory Opinions In Moot Cases
September 17, 2024 - Bulletin Print Report
The Cs are U.S. citizens and Maryland taxpayers. In 2014 and 2015, they lived and worked in the United Kingdom. The Cs excluded income they earned in the United Kingdom from th...
Section 965 Inclusions Are Not Dividends "Deemed To Be Received"
September 16, 2024 - Bulletin Print Report
The Tax Cuts and Jobs Act, (the "TCJA"),created a new, one-time tax. Section 965(a) generally provides that for the 2017 tax year, "the subpart F income of...
Liberty Media And Sirius XM Holdings Finally Part Company
September 16, 2024 - Bulletin Print Report
On September 9, 2024, a transaction that was years in the making was finally consummated. Thus, Liberty Media Corporation, ("LMC"), and its 83 percent owned subsidiar...
When Can "North/South" Transactions Be Integrated?
September 16, 2024 - Volume 18 Issue 178 Print Report
On Date 1, TP established C as a division of TP. On Date 2, S was incorporated and "a" shares of voting common stock were issued to TP. On Date 4, TP transferred the...
Notice Of Levy Not Posted In A "Conspicuous Place"
September 16, 2024 - Bulletin Print Report
In 1997, M inherited a 2.54 acre tract of undeveloped land...in Clarendon County, South Carolina.M paid all taxes related to the property through 2015, but she failed to...
Mark-To-Market Gains Will Be Excluded From "AFSI"
September 13, 2024 - Bulletin Print Report
The Inflation Reduction Act introduced a corporate minimum tax that is calculated by reference to the corporation's "adjusted financial statement income," ("...
Taxpayer Not Equitable Owner Of Her Brother's House
September 13, 2024 - Volume 18 Issue 177 Print Report
In 2002, petitioner's brother, B, bought a house in South San Francisco. B made the required downpayment and financed the balance of the purchase price with a mortgag...
Failure To Pay Determination Precludes Judicial Review
September 13, 2024 - Bulletin Print Report
Appellant, ("APP"),is a corporation that offers tours across the southwest United States. Some of these tours take passengers from Nevada to destinations outsid...
HoldCo And OpCo Mergers Are Deemed To Occur Simultaneously
September 13, 2024 - Bulletin Print Report
When bank holding companies are combined, frequently by means of a statutory merger or consolidation, it is a virtual certainty that the banking subsidiaries of such holding co...
AU And Centamin plc To Embark On A Scheme Of Arrangement
September 12, 2024 - Bulletin Print Report
Anglo Gold Ashanti plc, ("AU"), and Centaminplc, ("C") announced that they have agreed to the terms of a recommended acquisition of C on the part of A...
Elis S.A.'s Acquisition Of VSTS Would Not Jeopardize Its Spin-Off
September 12, 2024 - Bulletin Print Report
A situation eerily similar to the Mars/Kellanovatransaction has recently cropped up and, as we concluded then, we also believe that the tax-free spin-off of Vestis Corpor...
Embedded Warrants Constitute "Other Property"
September 12, 2024 - Volume 18 Issue 176 Print Report
The shareholders of X corporation entered into an agreement to exchange their shares of stock for voting convertible preferred stock of Y corporation in a transaction which was...
Over-The-Counter Items Were Not Prosthetic Devices
September 12, 2024 - Bulletin Print Report
Plaintiff, ("P"), makes sales of medical items. P's "SUW" returns reflected tax-exempt sales of "prescription medical devices." Defendant dete...
OID Accounting Will Create A Cash Squeeze For RC
September 11, 2024 - Bulletin Print Report
(This report was prepared by Uri Walfish, a research associate...
Holding Period Of Assets Formerly Owned By Partnership
September 11, 2024 - Volume 18 Issue 175 Print Report
In 1946, EM and his brother, WM, formed a partnership to engage in the floral business. WM died on March 7, 1959. After WM's death, the business was conducted by petitioner...
Taxpayer Never Abandoned His "Historic" Domicile
September 11, 2024 - Bulletin Print Report
TP argues that he resided and was domiciled in Tennesseein 2018 and thus was not subject to Alabamaincome tax in that year. TP...
"Loper Bright" Was Not A Change In Law Warranting Reconsideration
September 11, 2024 - Bulletin Print Report
In our November 15, 2023 Opinion, we held that YA Global Investments, L.P., ("Y"), was engaged in a U.S. trade or business and, consequently, owed withholding tax und...
Equipment Used For Quality Control And Testing Is Exempt From Sales Tax
September 10, 2024 - Bulletin Print Report
TP, a manufacturer of electronic components used primarily in telecommunications, filed for a refund of sales tax paid on purchases of property it believes is exempt because it...
Decision To Liquidate Constitutes An "Identifiable Event"
September 10, 2024 - Volume 18 Issue 174 Print Report
TP is a holding company. TP owns domestic subsidiaries S and T which provide hazardous waste management services. TP retained an investment banking firm to advise management ab...
The Form Of A Sale/Leaseback Controlled
September 10, 2024 - Bulletin Print Report
CM is an insurance company. CU, a subsidiary of CM, is also an insurance company. On December 19, 2011, petitioners entered into an "Aircraft Lease" with PNC Finance,...
FBAR Penalties Are "Fines" Subject To Eighth Amendment Scrutiny
September 10, 2024 - Bulletin Print Report
Each American citizen with interests in, or authority over, any foreign bank account with a balance exceeding $10,000 must file an annual FBAR. &n...
Controlled Foreign Corporations Are Not Allowed A Section 245A DRD
September 9, 2024 - Bulletin Print Report
USP is a domestic corporation, and FC1 and FC2 are foreign corporations. USP wholly owns FC1. FC1 is a controlled foreign corporation, ("CFC"). FC1 owns 45 percent of...
Apportioning Earnings and Profits To Multiple Distributions
September 9, 2024 - Volume 18 Issue 173 Print Report
M is a domestic corporation. On July 1, 1973, M redeemed 25 percent of its stock in a transaction that qualified under Sec. 302(a). As of January 1, 1973, M had earnings and pr...
Goodwill Industries Does Not Compete With For-Profit Retailers
September 9, 2024 - Bulletin Print Report
G is a non-profit corporation that, since 1968, has been exempt from taxation under section 501(c)(3) of the Internal Revenue Code. In May of 2020, G purchased the building on...
Tax Benefit Rule Requires A Prior Deduction
September 9, 2024 - Bulletin Print Report
Plaintiff, Michigan Bell Telephone Company, ("P"), is a telecommunications service provider. P purchased telecommunications machineryand equipment during the ye...
Transitory Steps Are Disregarded
September 6, 2024 - Volume 18 Issue 172 Print Report
X, a state chartered banking corporation, had outstanding 2,000x shares of common stock which were publicly held. X decided that its stock should be owned directly by a corpora...
GATO To Engage In An "Outbound" Reorganization
September 6, 2024 - Bulletin Print Report
First Majestic Silver Corporation, ("AG"), a Canadian corporation, and Gatos Silver, Inc., ("GATO"), a U.S. corporation, announced that they have entered in...
Property Was Not Occupied And Used As A Homestead
September 6, 2024 - Bulletin Print Report
In 2004, V bought the property at issue. V and her son lived there and were granted a homestead classification. In 2014, V bought a residential property in the town of Biscay w...
Stock Sale Gain Cannot Be Apportioned
September 6, 2024 - Bulletin Print Report
In support of its argument that mortgages should be viewed as services rather than intangible assets, U.S. Bank, ("U"), asserts thatmortgages do not fit within...
MODG Will Separate Its Business Lines
September 5, 2024 - Bulletin Print Report
On March 8, 2021, Callaway Golf Co. completed its acquisition of Topgolf International, Inc. Callaway, which already owned approximately 14 percent of Topgolf's stock, acqu...
Financial Institutions May Claim Massachusetts Research Credits
September 5, 2024 - Bulletin Print Report
APP is registered with the Federal Reserve as a bank holding company pursuant to the Bank Holding Company Act of 1956. Consequently, APP and its subsidiaries come within the de...
Distribution In Proportion To Business Transacted Is A Dividend
September 5, 2024 - Volume 18 Issue 171 Print Report
X corporation ("X") is engaged in the business of selling the products of its shareholders to various customers. X does not qualify as a cooperative under subchapter...
Leased Land Not Eligible For Property Tax Exemption
September 5, 2024 - Bulletin Print Report
The Subject Properties are 16 parcels located in Scotts Bluff County, Nebraska. The Board determined that the Subject Properties were exempt for tax year 2020. The Department a...
I.R.S. Filed Suit After The Statute Of Limitations Had Expired
September 5, 2024 - Bulletin Print Report
This case involves outstanding tax liability related to the estate of Gladys R. Dill, (the "Estate"), and a 160-acre property owned by the Family Trust that was sold...
A Spin-Off Of REA Suddenly Makes More Sense
September 4, 2024 - Bulletin Print Report
News Corporation, ("NWSA"), currently owns approximately 61 percent of the issued and outstanding capital stock of REA Group Ltd., ("REA"). REA is the flags...
Interest On Tax Deficiencies Is "Personal Interest"
September 4, 2024 - Volume 18 Issue 170 Print Report
Between 1979 and 1985, the Rs operated an unincorporated business, CC, that installed telephone equipment. When the Internal Revenue Service examined the Rs' income tax ret...
A Service Business Does Not Have "COGS"
September 4, 2024 - Bulletin Print Report
A creates and manages online advertising campaigns for auto dealerships. A testified that he paid Google, Inc. and Craigslist, Inc. directly for advertising space as part of th...
Both Knowing And Reckless Violations Are "Willful"
September 4, 2024 - Bulletin Print Report
Under the Bank Secrecy Act, (the "BSA"), U.S. citizens must file annual reports. This annual report is known as "FBAR." The penalty for a non-willful violat...
"Hook Stock" Surrendered In Internal Split-Off
September 3, 2024 - Volume 18 Issue 169 Print Report
P owns Sub 1 which owns Sub 2. Sub 2 wholly owns Sub 3. Sub 3 owns all of the stock of Sub 4. The latter is engaged in Business A. P also owns LLC1, a disregarded entity. LLC1...
The Commissioner's Settlement Of A Claim Cannot Be Appealed
September 3, 2024 - Bulletin Print Report
This case involves the valuation of a pipeline that runs through 13 Ohio counties. After the Ohio Tax Commissioner, (the "Commissioner"), established a valuation for...
A County May Require Demolition As A Condition Of A Public Sale
September 3, 2024 - Bulletin Print Report
In May 2017, the county board, ("board"), authorized a public sale of the K property, a tax-forfeited parcel. The K property included a single-family home. The condit...
Tax Court "Harmonizes" Sections 1042(e) And 453(a)
September 3, 2024 - Bulletin Print Report
In 2002, petitioners each sold stock to an employee stock ownership plan, ("ESOP"), for $4,150,000 in which they had bases of $27,428. Thus, the sale gave rise to&nbs...
Taxpayer Found To Be A Professional Gambler
August 30, 2024 - Volume 18 Issue 168 Print Report
D testified that she was a "professional gambler" until October 2012 and that gambling was her full-time occupation. The State of Michigan disputed that designation b...
Untimely Petition For Review Leads To Dismissal Of The Action
August 30, 2024 - Bulletin Print Report
On January 1, 2021, the appellants were the assessed owners of three condominium units located on Quincy Street...and land improved with a multi-family building in Dorchester,&...
Motion Filed After Bankruptcy Petition Is Void Ab Initio
August 30, 2024 - Bulletin Print Report
P's business was delinquent on over $1 million in employee payroll taxes. As a result, the Internal Revenue Serviceheld him personally liable for these taxes under se...
Will Carrier's Stock Repurchases Be Distributions In Partial Liquidation?
August 30, 2024 - Bulletin Print Report
Carrier Global Corporation, ("CARR"), has embarked upon what it is referring to as a"transformational journey" to become a focused, agile, higher-grow...
Integrated Transaction Qualifies As An 'F' Reorganization
August 29, 2024 - Bulletin Print Report
Parent is the common parent of an affiliated group of corporations that operate in a variety of industries and join in filing a consolidated U.S. federal income tax return. Par...
I.R.S. Liberalizes The Sec. 6166(g)(1)(B) Exclusion
August 29, 2024 - Volume 18 Issue 167 Print Report
D died in April 1977. D's gross estate included an interest in X corporation that comprised more than 65 percent of the adjusted gross estate. The interest qualified as a c...
I.R.S. Requires That "Business Assets" Comprise 80% Of Total Assets
August 29, 2024 - Bulletin Print Report
D is the common parent of an affiliated group of corporations, consisting of D, C, and C1, that files a consolidated federal income tax return. &n...
Foundation Was An Institution Of Purely Public Charity
August 29, 2024 - Bulletin Print Report
Foundation, ("F"), requests an exemption from sales and use tax as a "purely public charity." The Department concluded that F did not benefit "a substa...
Deemed Sale Gain Is Not Business Income In Pennsylvania
August 28, 2024 - Volume 18 Issue 166 Print Report
During the relevant tax period, C was a wholly-owned subsidiary of V. V was a wholly-owned subsidiary of H and H was a wholly-owned subsidiary of F. In June 1994, H sold the st...
Tax Court Lacked Jurisdiction Over Whistleblower's "OVDI" Claim
August 28, 2024 - Bulletin Print Report
The I.R.S. rewards individuals who provide information to the agency that results in the collection of tax proceeds. Whistleblowers, ("W"), who provide information to...
Good Faith Belief The Business Began Allows For Avoidance Of Penalties
August 28, 2024 - Bulletin Print Report
At the start of 2016, petitioners owned two residential properties. One was held for rent and rented out during that year, and the other was sold on June 28, 2016....
Repair And Cleaning Services Were Subject To Sales Tax
August 28, 2024 - Bulletin Print Report
M is a shipping and transportation company. M hired SSA to inspect, clean, provide an estimate, and, if approved, repair its shipping containers and electrical motor generators...
Accrued Interest On Tax-Exempt Bonds
August 27, 2024 - Volume 18 Issue 165 Print Report
X, a dealer in municipal bonds, purchased certain municipal bonds on September 1, 1972. On September 15, 1972, X agreed to sell the bonds, and delivered a written confirmation...
All Elements Required For Abatement Of Penalty Were Present
August 27, 2024 - Bulletin Print Report
Respondent levied a civil penalty and interest on Ps for their untimely payment of their 2019 personal income taxes. An administrative hearing officer, ("AHO"), abate...
Section 1031's "Exchange" Requirement Was Not Satisfied
August 27, 2024 - Bulletin Print Report
S was organized in 1998 by CV and JV, (appellant-brothers). Through S, appellant-brothers each held a 50 percent tenancy-in-common interest in a hotel, (subject property). In M...
No Bona-Fide Loans Existed Between Shareholder And His 'S' Corporation
August 27, 2024 - Bulletin Print Report
In 2008, APP was the sole shareholder of AAV, an 'S' corporation. APP also owned a 95-percent limited partnership interest in OT; and a 95-percent limited partnership i...
Accrued Interest Taxable To Donor Of Bonds
August 26, 2024 - Volume 18 Issue 164 Print Report
An individual who computes his taxable income using the cash receipts and disbursements method of accounting established a trust and transferred certain corporate bonds to the...
FBAR Penalties Were Timely Assessed
August 26, 2024 - Bulletin Print Report
The Bank Secrecy Act requires U.S. taxpayers to report "any financial interests they have in any...financial accounts in a foreign country" to the I.R.S. on an annual...
Used Vehicle Was Sold To "Another Individual"
August 26, 2024 - Bulletin Print Report
Taxpayer purchased a 2023 Tesla Model 3, ("Tesla"), on October 14, 2023. Taxpayerfiled a claim for sales tax refund...based on the sale of a used 2020 Jeep Comp...
Reasonable Expectation Of Receipt Warrants Accrual Of Interest Income
August 26, 2024 - Bulletin Print Report
YA Global provided funding to portfolio companies in the form of convertible debentures, "SEDAs," and other securities. YA Global was found to be engaged in the condu...
District Court Sets Aside FTC's "Non-Compete" Rule
August 23, 2024 - Bulletin Print Report
In 1914, Congress enacted the Federal Trade Commission Act, (the "Act"), to protect consumers and promote competition. Since the...
A New Roof Is "New Construction"
August 23, 2024 - Bulletin Print Report
K owns real property consisting of an office building. In 2021, K hired a contractor to replace the roof on the building. The cost of the project was $70,053. In 2021, the prop...
Franchisor Is An "Operating Company"
August 23, 2024 - Volume 18 Issue 163 Print Report
D is a second-tier subsidiary within an affiliated group that files a consolidated return. P, the common parent, is primarily a holding company. &...
Use Of Property Did Not Violate Zoning Laws
August 23, 2024 - Bulletin Print Report
P owns and operates a Methodist Church in Queens County (N.Y.). In 2018, P purchased an approximately 70-acre parcel of land in the Town of Callicoon, ("C"). In 2021,...
Debt Subordinated Only To Secured Debt Is Not "CAI"
August 22, 2024 - Volume 18 Issue 162 Print Report
Corporation A, (A),serves asthe common parent of an affiliated group of corporationswhich files a consolidated income tax return. As of Date 1, Corp...
Profit Generation Is Not A Charitable Use Of Property
August 22, 2024 - Bulletin Print Report
SM is a research and testing laboratory that specializes in detecting performance-enhancing substances in bodily fluids and consumer products. SM's articles of incorporatio...
Transfer Of Encumbered Property Is Subject To Realty Transfer Tax
August 22, 2024 - Bulletin Print Report
The Estate of RCA transferred real property located in Wayne County, Pennsylvania, to petitioner, SB, the Executrix of the Estate. Petitioner claimed an exemption from the real...
ARCH And CEIX Will Engage In A "Merger Of Equals" Transaction
August 22, 2024 - Bulletin Print Report
Arch Resources, Inc., ("ARCH"), and CONSOL Energy, Inc., ("CEIX"), have announced that they have entered into a definitive agreement to combine in an "...
The Willens Deal Survey August 2024
August 21, 2024 - The Deal Survey: August 2024 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.
Refunded Bonds Are "Government Securities"
August 21, 2024 - Volume 18 Issue 161 Print Report
R is registered under the Investment Company Act of 1940 ('40 Act) as a diversified management company and elects to be treated as a regulated investment company (RIC). R i...
Expanded Version: Enstar Group Ltd. Agrees To A Leveraged Buyout
August 21, 2024 - Expanded Bulletin Print Report
Enstar Group Ltd., ("ESGR"), one of the legion ofinsurers and re-insurersorganized under the laws of Bermuda, recently announced that it has entered into...
Market Research Went Beyond Mere Solicitation Of Orders
August 21, 2024 - Bulletin Print Report
U is a Wisconsin-based corporation that sells industrial and packaging products. U employs sales representatives who regularly call and visit customers in Minnesota, ("M&q...
A Deemed Exchange Constitutes A Recapitalization
August 20, 2024 - Volume 18 Issue 160 Print Report
The corporation had outstanding 20x shares of $10 par value preferred stock; and 100x shares of $1 par value common stock. The outstanding stock was owned by three individuals,...
Disproportionate Distributions Did Not Create A Second Class Of Stock
August 20, 2024 - Bulletin Print Report
SEG was an 'S' corporation. There were 10,000 shares of SEG stock. M and S each owned half, and the shares were denoted as "common shares." Under Cal...
Processing Water To Make Snow Is A Taxable Sale Of "TPP"
August 20, 2024 - Bulletin Print Report
APP is a Delaware corporation with headquarters in New Jersey. Use tax applies to the storage, use, or other consumption in California of tangible personal property, ("TPP...
Expanded Bulletin: National Bank Of Canada To Acquire Canadian Western Bank
August 20, 2024 - Expanded Bulletin Print Report
National Bank of Canada, ("NA"), of Quebecand Alberta'sCanadian Western Bank, ("CWB"), announced that they have entered into a definitive ag...
U.S./U.K. Treaty Residency Requires More Than "Full Taxation"
August 19, 2024 - Bulletin Print Report
General Electric Financial Investments, ("GEFI"), a U.K. incorporated company, is part of General Electric group, the ultimate parent of which is General Electric Com...
The Purposes Of Sec. 355(d) Not Violated
August 19, 2024 - Volume 18 Issue 159 Print Report
P is the parent of an affiliated group of corporations filing a consolidated income tax return. P acquired Sub 1 on Date A (less than five years from...
Rental Activity Not Engaged In For Profit
August 19, 2024 - Bulletin Print Report
APP is a real estate investor who holds interests in pass-through entities, including DCI. In 2012, APP received a distributive share of $15,217,391 from the gain DCIAV, an aff...
Oil And Gas Lease Did Not Preclude Exemption For Public Property
August 19, 2024 - Bulletin Print Report
The subject property consists of 127 acres and is known as Astorhurst Park, ("AP"). Cleveland Metroparks, ("CM"), acquired the property in 2018. It is a pub...
Dividends On Vested Stock Are Not New York Source Income
August 16, 2024 - Bulletin Print Report
Petitioner, ("P"), successfully changed his domicile from New York to Connecticut on November 1, 2013. In 2018, he moved to Nashville, Tennessee. &nbs...
Non-Resident's COVID-19 Era Wages Were Derived From NY Sources
August 16, 2024 - Bulletin Print Report
P filed a New York non-resident and part-year resident income tax return, form IT-203, for 2020. On his return, P reported 66 days worked i...
I.R.S. Tax Lien Extinguished On Death Of Joint Tenant
August 16, 2024 - Volume 18 Issue 158 Print Report
Pursuant to a warranty deed recorded April 1, 2005, C and W were the owners as joint tenants with right of survivorship of the real property described as P1C (the "Propert...
Income From A "PPA" May Be Considered Under The "Income Approach"
August 16, 2024 - Bulletin Print Report
M owns the Mesquite Power Plant, (the "MPP"). Through a Power Purchase Agreement, (the "PPA"), between M and a group of buyers, (the "Buyers"), M...
Arizona Cardinals Must Pay Transaction Privilege Tax On Facility Use Fees
August 15, 2024 - Bulletin Print Report
The Arizona Sports and Tourism Authority, (the "Authority"), was created to construct, finance, maintain, operate, own, and promote State Farm Stadium, (the "Fac...
Prearranged Sale Breaks Sec. 351 Control
August 15, 2024 - Volume 18 Issue 157 Print Report
X transferred property to Newco in exchange for all of the stock of Newco. Pursuant to a prearranged binding agreement, X promptly sold some 40 percent of its Newco stock to Y,...
Failure To "Verify" Complaint Warranted Dismissal Thereof
August 15, 2024 - Bulletin Print Report
E designs, constructs, and repairs exhibit sets for convention center displays. Although E remitted sales tax on certain of the exhibits it constructed and sold to its customer...
Determining A Seasonal Employee's Tax Home
August 15, 2024 - Bulletin Print Report
Plaintiffs, a married couple, earn their income from two different locations each calendar year. May through September, plaintiffs reside in Alaska to run their fishing busines...
Scotiabank Will Gain An "Associate"
August 14, 2024 - Bulletin Print Report
Scotiabank announced that it has entered into an agreement to acquire "an approximate 14.9 percent pro-forma ownership stake" in KeyCorp, through an issuance of commo...
The Two-Year Myth Regarding Acquisitions Of "Spincos" Is Laid To Rest
August 14, 2024 - Bulletin Print Report
On October 2, 2023, Kellogg Company completed the separationof its cereal business through a spin-off of W.K. Kellogg, (KLG). Such spin-off wasintended to...
Franchise Fee Is Deductible As A Loss
August 14, 2024 - Volume 18 Issue 156 Print Report
TP entered into a franchise agreement in March 1986 with the primary intention of making a profit. The agreement provides that the franchisor conditionally grants the franchise...
Cases Upholding Constitutional Rights Are Retroactive
August 14, 2024 - Bulletin Print Report
Plaintiffs S and H had their homes foreclosed in Kent County in 2017. Kent County retained the surplus proceeds. On December 14, 2020, plaintiffs filed claims...seeking to obta...
AMGN's Motion To Exclude "HCR" Fees From Gross Income Is Denied
August 14, 2024 - Bulletin Print Report
Amgen, Inc., ("AI"), is the parent of a multinational group... Immunex Corporation, ("I"), is a wholly-owned subsidiary of AI. ATL, a Bermuda corporation, i...
Spin-Off Avoids The Penalties Of Sec. 355(d)
August 13, 2024 - Volume 18 Issue 155 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)/Sec. 368(a)(2)(E) and Sec. 368(a)(1)(B). &nb...
Lawsuit Challenging Special Assessment Was Time-Barred
August 13, 2024 - Bulletin Print Report
In 1998, the Missouri legislature adopted the "CID" Act. A CID is authorized to levy special assessments and taxes on real property within the district boundaries. On...
NOLs Do Not Enter Into A Bank's "Entire Net Income"
August 13, 2024 - Bulletin Print Report
In 2010, NB and CBT merged. The merged company was renamed S. These entities operated as banks. On its amended return for the 2011 tax year, S applied substantial losses from 2...
Erroneous Refund Of Interest Was Not A "Rebate"
August 13, 2024 - Bulletin Print Report
The Commissioner issued a refund. The refund consisted of section 6601 interest (interest on underpayments) and section 6611 interest (interest on overpayments) for the years i...
Period Of Limitations For Assessment Had Not Expired
August 12, 2024 - Bulletin Print Report
In 2015, G was finishing a medical residency program and looking for a job as a physician. Petitioner worked for Merck & Co., Inc. He worked remotely. Sometimes petitioner...
Where Distributions Exceed Available E&P
August 12, 2024 - Volume 18 Issue 154 Print Report
The value of the 1,000 shares of TMI stock on November 9, 1937 (which were distributed by GTC to its shareholders) was $225,000. The term, dividend, means any distribution made...
Writer/Researcher Activities Not Engaged In For Profit
August 12, 2024 - Bulletin Print Report
During the tax years at issue, the Ms filed Schedules C for "Writer/Researcher" activities. The court cannot conclude that MS offered her books for sale in the tax ye...
Challenge To Retroactive Tax Assessments Barred By The "TIA"
August 12, 2024 - Bulletin Print Report
C is a Colorado non-profit corporation acting on behalf of its members, who are all non-operating fractional interest owners in the "Unit." The Unit is a large deposi...
Polo Expenses Ruled Not Deductible
August 9, 2024 - Volume 18 Issue 153 Print Report
In 1973, petitioner engaged in the construction business through his wholly-owned corporation, SCI, and as a sole proprietor. Petitioner was also in the mobile home b...
Fuel Cells Are Exempt From Ad Valorem Tax
August 9, 2024 - Bulletin Print Report
F constructs, operates, and manufactures molten carbonate fuel cells. The property primarily provides electricity to the P campus. It also converts waste heat with an HRSG to h...
California Proposition 22 Does Not Conflict With The State's Constitution
August 9, 2024 - Bulletin Print Report
Under section 7451 of the Business and Professions Code, a driver for an app-based transportation or delivery company, such as Uber, Lyft, or Door Dash, is an independent contr...
A Certificate Of Merger Qualified As A "Deed"
August 9, 2024 - Bulletin Print Report
In 2006, MS, a wholly owned subsidiary of V, attempted to purchase a property. To qualify for a tax benefit, MS arranged for a third party to set up a separate LLC, "E,&qu...
Activities Rise To The Level Of A "Transaction"
August 8, 2024 - Volume 18 Issue 152 Print Report
P is an attorney. A meeting was held on April 3, 1963. At this meeting, the 13 participants agreed to take the requisite steps leading to the incorporation of a savings and loa...
Spin-Off Of Recently Purchased Business Qualified Under Section 355
August 8, 2024 - Bulletin Print Report
D, a publicly traded State A corpo...
WBO Award Percentage Was Not Arbitrary Or Capricious
August 8, 2024 - Bulletin Print Report
While in the employ of an investme...
Chippewa Lawyer Not Exempt From Self-Employment Tax
August 8, 2024 - Bulletin Print Report
B is an enrolled member of the Minnesota Chippewa Tribe. For the 2016 and 2017 tax years, B earned self-employment income from his law practice. B reported a large net operatin...
The Service Refuses To Follow "John Richard"
August 7, 2024 - Volume 18 Issue 151 Print Report
In John Richard Corp. v. Commissioner , 46 T.C. 41 (1966), nonacq ., 1974-2 C.B. 5, the taxpayer's property was involuntarily converted and in ord...
Claim For Sale Tax Was Properly Dismissed
August 7, 2024 - Bulletin Print Report
CT purchased personal automobile insurance coverage from RIC, and it issued her a policy. The policy contains two relevant provisions: "Limit of liability:" "Our...
Defeasance Costs Were "Loan Interest Costs"
August 7, 2024 - Bulletin Print Report
E is a New York limited liability company. F is a Delaware limited partnership. FR is F's general partner. In 2005, E acquired an option to purchase property, the "Guc...
Leased Hangars Used Exclusively For Public Purposes
August 7, 2024 - Bulletin Print Report
The subject property comprises a portion of the MiddletownRegional Airport. Each parcel contains an air aircraft hangar. Middletown leases the hangars to private individu...
Debenture Exchange Is A "Reshuffling Of The Capital Structure"
August 6, 2024 - Volume 18 Issue 150 Print Report
In 1937, the taxpayers, the trustees of a trust created under the last will and testament of a decedent, exchanged their holdings of 20 year six percent debentures of PP for a...
Documentary Evidence Trumped Testimony And Affidavits As To The "PRE"
August 6, 2024 - Bulletin Print Report
This dispute concerns petitioner's ownership and occupancy of a parcel of real property, (the "Barnes Street property"). Respondent denied petitioner's reques...
"CPACE" Assets Are "Qualified Mortgages"
August 6, 2024 - Bulletin Print Report
S is a limited liability company. S has issued several limited liability company interests, one of which is C. C holds "CPACEAssets" and intends to make one or...
Untimely Service Of Summons Warranted Dismissal
August 6, 2024 - Bulletin Print Report
W owns real property that is improved with ethanol production facilities. W protested the valuations set by the assessor on this property. The Board denied these protests and a...
KO On The Brink Of An Historic Deficiency
August 5, 2024 - Bulletin Print Report
On July 31, 2024, the United StatesTax Court issued a "decision and order" in which it was confirmed that Coca-Cola Co., ("KO"), owes the I.R.S. appro...
Non-Resident's Covid-Era Income Derived From Massachusetts
August 5, 2024 - Bulletin Print Report
APP was a resident of New Hampshire and worked asan attorney-advisor with NOAA, a federal agency within the Department of Commerce. APP's office was located in Massac...
Uniti Group And Windstream Propose A Complex Business Combination
August 5, 2024 - Bulletin Print Report
Uniti Group, Inc., ("UNIT"), is a real estate investment trust, ("REIT"). UNIT recently announced that it has entered into a definitive agreement to "m...
Inversion Qualifies Under Sec. 351
August 5, 2024 - Volume 18 Issue 149 Print Report
P is a regulated, Country X utility corporation primarily engaged in Business A. P has two classes of stock outstanding: common stock and preferred stock. H is a Country X corp...
Unemployment Compensation Is Includible In NYS Adjusted Gross Income
August 2, 2024 - Bulletin Print Report
On April 12, 2021, petitioner filed form IT-201. Petitioner's form IT-201 reported Federal and New York State adjusted gross income of $8,191.00. The Division issued petiti...
A Cell Tower Was Not A "Fixture"
August 2, 2024 - Bulletin Print Report
W was formerly the owner of a parcel of real property upon which a commercial building is situated, ("P1"). It also owned another parcel, "P2," upon which a...
Pipelines Are Not "Industrial Plants"
August 2, 2024 - Bulletin Print Report
The constitutional provision exempts from property tax "all facilities or equipment of industrial plants which are designed for the elimination...of wat...
Emerson's Challenge To South Carolina's Tax System Rebuffed
August 2, 2024 - Volume 18 Issue 148 Print Report
Emerson Electric, (E), and its subsidiariestimely filed consolidated income tax returns for South Carolina in fiscal years 1999 through 2002. E properly exclude...
Seat Selection And Online Booking Fees Are Paid For Transportation
August 1, 2024 - Bulletin Print Report
1. Passenger purchases an economy ticket for a domestic flight on Airline. Before the flight, Passenger pays a separate amount or a higher fare to select a particular seat on t...
Canadian Retirement Savings Plan Not Exempt From Bankruptcy Estate
August 1, 2024 - Bulletin Print Report
G filed for Chapter 7 bankruptcy on May 11, 2021. His petition listed the "Sun Life Income Fund,"(the "SL Fund"), a Registered Retirement Savings Plan...
Liability For Damaged Goods Is Incurred When Paid
August 1, 2024 - Volume 18 Issue 147 Print Report
TP is a professional moving company. When a customer engages TP to provide moving services, TP and the customer execute a bill of lading, or contract, providing the level of TP...
A Section 6695A Penalty Is A "Tax" For Purposes Of The AIA
August 1, 2024 - Bulletin Print Report
This suit concerns conservation easements and the tax deductions that property owners receive for them. Congress included a provision allowing the I.R.S. to impose penalties on...
Tax Deed Not Timely Recorded Is Invalid
July 31, 2024 - Bulletin Print Report
The source deed for the property is dated October 24, 1823, conveying it from HHBto AH. AH died intestate in 1832, survived by his wife, AN, and six children. Sixty years...
Worthless Stock Loss Not A Product Liability Loss
July 31, 2024 - Volume 18 Issue 146 Print Report
TP, Sub 1, and Sub 1's subsidiaries were members of an affiliated group of which P was the common parent. They joined P in the filing of a consolidated income tax return.&n...
Basis Includes Valid Liabilities Incurred In Acquiring Property
July 31, 2024 - Bulletin Print Report
From May to September, MR and MRS fished commercially out of Alaska. The rest of the year MR ran a boat fabrication business in Oregon. MR owns his fishing vessel. He bought it...
A "PSTO" Is Not A "Public Auction"
July 31, 2024 - Bulletin Print Report
R applied for homeowner insurance from Nationwide Mutual Insurance Company, ("NMIC"). NMIC issued the policy, but after a fire damaged the insured house, refused to p...
ESGR Agrees To A Leveraged Buyout
July 30, 2024 - Bulletin Print Report
Enstar Group Ltd., ("ESGR"), organized under the laws of Bermuda, recently announced that it has entered into a definitive merger agreement pursuant to which Sixth St...
Incyte Corporation Will Engage In A "Series Of Redemptions"
July 30, 2024 - Bulletin Print Report
Incyte Corporation, ("INCY"), is offering to purchase, using theso-called "Dutch Auction" mechanism, up to $1.672 billion in value of its common stock...
Delivery Of Stock To Agent Is Not A Disposition Thereof
July 30, 2024 - Volume 18 Issue 145 Print Report
The taxpayer was a corporate executive who had acquired stock of his employer by virtue of the exercise of a "qualified" or "statutory" stock option granted...
Leased Property Is Considered "Acquired"
July 30, 2024 - Bulletin Print Report
Plaintiff, ("P"), is a general hospital licensed by the department. It is a registered public charity. P is a wholly owned subsidiary of BHC, which is a corporate ent...
IGT's Partial Liquidation Prospects
July 29, 2024 - Bulletin Print Report
International Game Technology PLC, ("IGT"), and Everi Holdings, Inc., ("EHI"), recently announced that they have entered into a definitive agreement "w...
Option Stock Disposed Of Too Early
July 29, 2024 - Volume 18 Issue 144 Print Report
The taxpayer was a corporate executive and acquired stock in the corporation pursuant to his exercise of a qualified stock option. A few months after his acquisition of this st...
Rental Real Estate Losses Were Found To Be Strictly "Passive"
July 29, 2024 - Bulletin Print Report
Petitioners claimed a deduction in the amount of $16,426.00 for losses from rental real estate activities for three rental properties located in Brooklyn, New York. The Divisio...
Devisee's Interest In Real Property Vests At Time Of Death
July 29, 2024 - Bulletin Print Report
The real property at issue was owned by B-H who died on December 13, 2019. B-H's will devised her real and personalproperty to L, her niece. At some point before B-H&...
Standard General Moves To Annex Control Of Bally's Corporation
July 26, 2024 - Bulletin Print Report
Bally's Corporation, ("BALY"), recently announced that it has entered into a definitive merger agreement pursuant to which Standard General, L.P., ("Standard...
Prearranged Sale Breaks Control
July 26, 2024 - Volume 18 Issue 143 Print Report
X and Y are engaged in business A. S is a wholly-owned subsidiary of X. X, S, and Y formed N. X and Y each received 10,000 shares of N voting common stock and 40,000 shares of...
Control Sufficient For Imposition Of Use Tax Found
July 26, 2024 - Bulletin Print Report
Plaintiff, ("P"), is a life insurance company headquartered in Michigan. P sells three products. P conducts thirteen mail advertisement campaigns each year. Since 199...
Sale Of Property And A Service Not A Taxable "Bundled" Transaction
July 26, 2024 - Bulletin Print Report
Company is an online provider of ancestral and health history reports to individual customers. The reports are generated from Company's analysis of the customers' DNA (...
The Willens Deal Survey July 2024
July 25, 2024 - The Deal Survey: July 2024 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.
Preferred Stock Not Classified As Indebtedness
July 25, 2024 - Volume 18 Issue 142 Print Report
P accounts for its income on the accrual basis. P owns S. S sold the stock of three subsidiaries, S-1, S-2, and S-3, in 1979 to Z for cash, an interest-bearing note, and $100 p...
Untimely Appeal Not Due To Non-Negligent Circumstances
July 25, 2024 - Bulletin Print Report
On August 23, 2022, the City of Philadelphia issued a Notice of Decision, (the "Notice"), denying APP's "Nunc Pro Tunc Market Value Appeal" related to r...
Non-Resident's Aircraft Lease Subjected It To Use Tax In Illinois
July 25, 2024 - Bulletin Print Report
T has never had Illinois, ("I"), offices or I-based employees. On December 18, 2015, T purchased the "Aircraft" in Connecticut. T was listed as the purchase...
Full-Time Employee Was Not A "Real Estate Professional"
July 25, 2024 - Bulletin Print Report
Petitioners claimed a rental real estate loss deduction of $22,376 in 2020.MS worked approximately forty hours a week as a full-time employee, as did MR. During 2020, whi...
Section 751 "Inventory Gain" Is Not Gain From The Sale Of Inventory
July 24, 2024 - Bulletin Print Report
Gain on the sale of a partnership interest is taxed as a capital gain, except that it is taxed as ordinary income to the extent the gain is attributable to section 751(a) prope...
Accrual Method Taxpayer Reports Face Amount Of Notes Received
July 24, 2024 - Volume 18 Issue 141 Print Report
TP is an 'S' corporation employing the accrual method of accounting. O owns all the stock of TP. TP operates an automobile dealership. TP sells new and used automobiles...
Failure To Request Alternative Apportionment Leads To Dismissal Of Case
July 24, 2024 - Bulletin Print Report
Plaintiff, MGM Grand Detroit, Inc., is the designated member of a Michigan unitary business group, ("UBG"). In 2018, a UBG member, MES, sold its fifty percent interes...
Decedent Did Not Complete A Pension Plan's Beneficiary Election Process
July 24, 2024 - Bulletin Print Report
S is the surviving sister of decedent Y. The Plan is a pension plan organized under ERISA. K is the administrator and named fiduciary. Y was a participant in the Plan. After Y&...
Does It Pay To Pay For NOLs?
July 23, 2024 - Bulletin Print Report
A net operating loss, ("NOL"), is undoubtedly a valuable asset. An NOL can be used to offset otherwise taxable income. With federal corporate tax rates currently set...
"IRD" Requires A "Right" To Income
July 23, 2024 - Volume 18 Issue 140 Print Report
The issue is this appeal is whether the trial court erred in holding that the gain realized on the sale of corporate stock was taxable as "income in respect of a decedent&...
An Assessment May Be Made Against A Bulk Sale Purchaser's "RP"
July 23, 2024 - Bulletin Print Report
Petitioner, ("P"), is the sole owner and managing member of BW, P, and GF. In 2008, the assets of two restaurants owned and operated by CF were transferred to BW. The...
Statutory Ambiguity Not Resolved In Taxpayer's Favor
July 23, 2024 - Bulletin Print Report
E produces oil and gas from wells in North Dakota, ("ND"). E purchased and paid ND sales tax on oilfield equipment, including separators, for several facilities. E ap...
Contractor Not Eligible For "Direct Use" Exemption From Use Tax
July 22, 2024 - Bulletin Print Report
The separate business activities at issue in this appeal are (1) utility construction for municipalities and PSDs, and (2) the production, processing, and storage of limestone...
Dominion Energy, Inc. Is Offering To Redeem Its Preferred Stock
July 22, 2024 - Bulletin Print Report
Dominion Energy, Inc., ("D"), has launched a self-tender offer in connection with which it is offering to purchase for cash "any and all of its outstanding 4.65...
District Court Cannot Restrain Assessment Of Local Property Tax
July 22, 2024 - Bulletin Print Report
Plaintiff, ("P"), owns real property in Anchorage, Alaska. P alleges that an MOA employee entered the property without written consent...in order to gather informatio...
Florida Recognizes Sec. 338(h)(10)
July 22, 2024 - Volume 18 Issue 139 Print Report
TP is a wholly-owned subsidiary of P. TP is negotiating with an unrelated corporation, B, to sell the stock of its subsidiary, S, for cash. TP and B will make a joint election...
Illinois Taxpayer Not Denied "Equal Protection"
July 19, 2024 - Volume 18 Issue 138 Print Report
A, a corporation, simultaneously pursued an IPO and also a "private transaction." The shareholders ultimately elected the private transaction. In the private transact...
Fees To Procure Use Of A Recreational Facility Are Subject To Sales Tax
July 19, 2024 - Bulletin Print Report
Petitioner owns and operates a...franchise "primarily dedicated to offering classes...to its members." Petitioner provides all equipment necessary for the classes. Pe...
Enhanced FBAR Penalties Were Properly Assessed
July 19, 2024 - Bulletin Print Report
V opened a Swiss bank account and, from 2006 to 2011, failed to report the account's existence to the United States. The United States seeks to impose a penalty on V for hi...
Personal Services Not Subject To Massachusetts Sales Tax
July 19, 2024 - Bulletin Print Report
Company, ("C"), is in the business of providing DNA testing and analysis, including ancestral and health history reports, to individual customers located throughout t...
Stock Acquisition And "Upstream" Merger Treated As Single Transaction
July 18, 2024 - Volume 18 Issue 137 Print Report
X organizes Y, a newly-formed wholly-owned subsidiary. Pursuant to an integrated plan, X acquires all of the stock of T in a statutory merger of Y into T, with T surviving. In...
Mortgage Recording Tax Apportioned On The Basis Of Assessed Value
July 18, 2024 - Bulletin Print Report
On March 18, 2020, petitioner executed a mortgage in favor of CO in the original principal amount of $10 million, covering three parcels located in Nassau County and three parc...
Rhode Island Claim For Refund Or Credit Not Timely Filed
July 18, 2024 - Bulletin Print Report
TP's 2019 non-resident Rhode Island, ("RI"), income tax return was due on July 15, 2020 rather than the usualApril 15, 2020 because of the COVID-19 pandemic...
The "548 Day" Exclusion Was Inapplicable
July 18, 2024 - Bulletin Print Report
On January 13, 2020, petitioners each filed non-resident and part-year resident income tax returns for 2015 as married filing separate returns. MR reported federal adjusted gro...
VSTO Poised To Close CSG Deal
July 17, 2024 - Bulletin Print Report
VSTO is only days awayfrom conveninga Special Meeting of Shareholders in which the company hopes to gain approval for the acquisition by CSG of VSTO's suddenly...
LLC With Two Members Is Disregarded
July 17, 2024 - Volume 18 Issue 136 Print Report
A is the sole owner of property (Property) part of which is rented to unrelated third persons for residential use, and the remainder of which is used by A himself for residenti...
Transfer Of Interest In A "Real Estate Company" Not Subject To Tax
July 17, 2024 - Bulletin Print Report
In 1994, S purchased real property ("Real Property"). S is a limited liability partnership and is a "real estate company" as that term is defined in section...
Failure To File Information Leads To Dismissal Of Petition
July 17, 2024 - Bulletin Print Report
On April 28, 2023, K failed a petition challenging the market value of the subject property. The subject property contains 54 rental units and operated as an apartment building...
Horse Boarding Activity Engaged In For Profit
July 16, 2024 - Bulletin Print Report
H operated a horse boarding activity from plaintiff's residential property. H reported losses from the activity from 2015 through 2022. He reported a profit for the first t...
"Cohan Rule" Used To Determine Basis In A Principal Residence
July 16, 2024 - Bulletin Print Report
Appellants, ("APPs"),purchased the Residence in 1982 for $375,000. After substantial remodeling, repairing, and new construction, the size of the Residence incr...
SSD Benefits Are Not "Damages"
July 16, 2024 - Bulletin Print Report
Petitioner worked as a practicing physician in California for Southern California Permanente Medical Group, ("Medical Group"), until March 2009, when she suffered a p...
"Purge" Sale To A Shareholder Permitted
July 16, 2024 - Volume 18 Issue 135 Print Report
X is a corporation engaged in the business of banking. Y is a corporation engaged in business as a holding company. Y holds "d%" of the stock of X....
Are D-I Athletes Eligible For The Protections Of The FSLA?
July 15, 2024 - Bulletin Print Report
The issue raised by this interlocutory appeal is not whether the athletes before us are owed the protection of the Fair Labor Standards Act, (the "FSLA"), but, rather...
Sec. 1248(b) Applies To 'S' Corporation Shareholder
July 15, 2024 - Volume 18 Issue 134 Print Report
A owns "D%" of the stock of B and has held it in excess of one year. B is an 'S' corporation. B's sole asset is "E%" of the shares of C, a F cor...
Interest Income Was "Sourced" To The Location Of The Borrowers
July 15, 2024 - Bulletin Print Report
U.S. Bank, ("USB"), is a national bank and a wholly owned subsidiary of U.S. Bancorp. USB is headquartered in Minnesota; and is engaged in the banking business in Sou...
Purchased Reagents Were Not "Dispensed" To Specific Patients
July 15, 2024 - Bulletin Print Report
A and L are subsidiaries of Q. Each conducts clinical laboratory testing operations. The appellants, ("A"), perform tests on human specimens (tissue) and samples (flu...
Income From Short Sale Is Not Regarded As "UBTI"
July 12, 2024 - Volume 18 Issue 133 Print Report
Q is an organization exempt from Federal income tax under Sec. 501(a) of the Code. On January 2, 20xx, Q instructs its broker to sell A stock "short." Q, through its...
Support Payments Made After "TCJA" Constitute Alimony
July 12, 2024 - Bulletin Print Report
TP and Spouse executed a Postnuptial Agreement, (the "Agreement"), on Date 1 (prior to December 31, 2018), that contemplates each spouse's respective rights and o...
Failure To Update Driver's License Cost Taxpayer A "PRE"
July 12, 2024 - Bulletin Print Report
P and his wife previously lived with his parents... P purchased the property in September of 2018. According to the evidence presented by P, he and his family moved to the prop...
Section 7436's Filing Deadline Is Not Jurisdictional
July 12, 2024 - Bulletin Print Report
Petitioner, ("P"), did not file quarterly employment tax returns during the years 2016 and 2017. Following an audit, respondent issued a notice of employment tax dete...
Redemption Interest Expense Deductible For NYC UBT Purposes
July 11, 2024 - Bulletin Print Report
A&E Television Networks, LLC, ("AE"), is involved in the creation, acquisition, and distribution of television programming and other content... AE is a partnershi...
Eligible Entity With Two Local Law Members Is Not A Partnership
July 11, 2024 - Volume 18 Issue 132 Print Report
X, a domestic corporation, is the sole owner of L, a domestic limited liability company. Under Reg. Sec. 301.7701-3(b)(1), L is disregarded as an entity separate from its owner...
When Is A Refund Made?
July 11, 2024 - Bulletin Print Report
On May 5, 2017, the I.R.S. mailed P a check for his 2016 tax refund. The I.R.S. made a clerical error. The refund was excessive. On April 5, 2018, P cashed the check. On March...
South Carolina's "DME" Exemption Is Unconstitutional
July 11, 2024 - Bulletin Print Report
Respondents are Delaware corporations, and each has its principal place of business out of state. They each hold a South Carolina, ("SC") retail sales license and sel...
PA. Taxes Not Added Back In Computing N.J. Entire Net Income
July 10, 2024 - Volume 18 Issue 131 Print Report
Plaintiff, (P), is a Pennsylvania (PA) corporation engaged in the business of selling and distributing electricity. In determining its federal taxable income for 1999 and 2000,...
Primo Water And Poland Spring Will Combine Their Resources
July 10, 2024 - Bulletin Print Report
Primo Water Corporation, ("PRMW"), a Canadian corporation, and "an affiliateof BlueTritonBrands, Inc.," ("BT"),whose familiar br...
Declaratory Judgment Action Denied For Lack Of Jurisdiction
July 10, 2024 - Bulletin Print Report
TSF is a Colorado non-profit corporation. TSF filed an application for exemption from property taxation with the PVA, which was denied. TSF appealed the denial to the Local Boa...
Motion To Distribute "Surplus" Foreclosure Sales Proceeds Dismissed
July 10, 2024 - Bulletin Print Report
The Michigan Supreme Court held in Rafaeli, LLC v. Oakland Co, 505 Mich 429 (2020), that former owners of properties sold at tax-foreclosure sales for more t...
PARA To Engage In A (Non-Leveraged) Recapitalization
July 9, 2024 - Bulletin Print Report
The "Transaction Agreement" entered intoby Skydance Media, LLC, ("SM"), and Paramount Global Corporation,("PARA"), documents the multi...
"Facility Fees" Not Currently Deductible
July 9, 2024 - Volume 18 Issue 130 Print Report
On Date 1, Company, (C), entered into two revolving credit agreements (Agreements) with a consortium of banks. C borrowed the full amount available under the Agreements.<...
Owner Of Multiple Properties Denied Michigan "PRE"
July 9, 2024 - Bulletin Print Report
Michigan's principal residence exemption, ("PRE"), is at issue in this case. Petitioner ownstwo residential properties, one located in Michigan, (the "...
Repeal By Implication Is Disfavored
July 9, 2024 - Bulletin Print Report
This case sits at the intersection of two credits that seek to encourage research, the "research credit," and the "orphan drug credit." Section 45C(c) provi...
Revoking A Sec. 83(b) Election
July 8, 2024 - Volume 18 Issue 129 Print Report
On Date 1, Y was granted an award of "x" shares of Employer common stock. On Date 2, Y filed an election under Sec. 83(b) with the Internal Revenue Service Center whe...
No Equitable Exception To Imposition Of Section 72(t) Tax
July 8, 2024 - Bulletin Print Report
Petitioner's mother purchased a home in Maryland, ("property"), in 2009. Petitioner's mother was diagnosed with breast cancer in 2010. Around 2015, petitioner...
Complaint Filed One Day Late
July 8, 2024 - Bulletin Print Report
C is a Georgia corporation that specializes in installing fiber-optic cable. The Department issued an assessment. C requested a conference. The Department upheld the assessment...
Waste Treatment Facility Not Eligible For "EFU" Special Assessment
July 8, 2024 - Bulletin Print Report
The subject property is a portion of a farm consisting of four tax lots. Defendant issued a notice of disqualification removing 27.31 acres of the subject property from Exclusi...
Aggregate Theory Applies In Determining Application Of Sec. 1032
July 5, 2024 - Volume 18 Issue 128 Print Report
A, a corporation, and B, an individual, formed AB partnership. A contributes 100 shares of its own stock, valued at $100x, with a basis of zero, to AB in exchange for 50 percen...
Unitary Business Groups Must File A Combined Return
July 5, 2024 - Bulletin Print Report
Petitioner filed separate returns but later filed amended combined returns with the other members of the Unitary Business Group, ("UBG"). Respondent rejected them. Pe...
Duplexes Were Not "Retirement Homes For The Aged"
July 5, 2024 - Bulletin Print Report
PH is a non-profit entity that owns and operates housing facilities ranging from independent living facilities to long-term skilled nursing facilities. In 2019, PH purchased fo...
Activities Exceeded Mere Solicitation Of Orders
July 5, 2024 - Bulletin Print Report
S is a New Mexico corporation selling branded tobacco products to wholesalers, who in turn sell to Oregon retailers. 15 U.S.C. section 381(a) provides: "No State...shall h...
An "Unadorned" Spin-Off Is Not A "Reorganization"
July 3, 2024 - Bulletin Print Report
A "spin-off," if the manifold requirements of section 355(a) are satisfied, does not result in gain recognition or income inclusion forthe recipients of the sto...
An APA Claim Does Not "Accrue" Until "The" Plaintiff Is Injured
July 3, 2024 - Bulletin Print Report
CP is a truck stopand convenience store located in North Dakota. CP accepts debit cards. Every transaction requires CP to pay an "interchange fee" to the bank t...
Duke Energy Is A "Manufacturer"
July 3, 2024 - Volume 18 Issue 127 Print Report
Duke Energy Corporation, (DE), generates electricity and sells it to customers. Because it does business in each of North Carolina and South Carolina, DE must allocate its inco...
Rescinding An LLC's Certificate Of Dissolution And Termination
July 3, 2024 - Bulletin Print Report
On November 20, 2003, S, (the "LLC"), was created as a New Jersey limited liability company. The LLC owns and operates a Ramada Inn. The LLC holds a liquor license. O...
A Bankruptcy Plan Cannot Discharge Claims Against Non-Debtors
July 2, 2024 - Bulletin Print Report
In the mid-1990s, Purdue Pharma L.P., ("P"), began marketing OxyContin, ("OC"), an opioid prescription pain reliever. Pwas a "family company"...
BA's Acquisition Of SPR Should Be A Reorganization
July 2, 2024 - Bulletin Print Report
Spirit AeroSystemsHoldings, Inc., ("SPR"), announced it has entered into a definitive merger agreement under which The Boeing Company, ("BA"), "w...
The Scope Of Sec. 165(c)(2)
July 2, 2024 - Volume 18 Issue 126 Print Report
An individual taxpayer began to search for a business to purchase. The individual placed advertisements in newspapers, and traveled to various locations to investigate various...
Foreign Subsidiaries Are Not "Unitary Corporations"
July 2, 2024 - Bulletin Print Report
TP conducted its business through domestic and foreign subsidiaries. In March 2017, the Taxation and Revenue Department, (the "Department"),issued a notice of a...
"Chevron Deference" Is Violative Of The "APA"
July 1, 2024 - Bulletin Print Report
"Our Chevron doctrine requires courts to use a two-step framework to interpret statutes administered by federal agencies." A reviewing court must f...
NOK's ADSs Will Be Taxable
July 1, 2024 - Bulletin Print Report
Nokia Corporation, ("NOK), a corporation organized under the laws of Finland, and InfineraCorporation, ("INFR"), a domestic 'C' corporation organiz...
Damages for "Lost Wages" is Includible in Gross Income
July 1, 2024 - Volume 18 Issue 125 Print Report
Several times in the years 2002-2005, R, an individual, submitted job applications to the City of Chicago, but her applications were not given fair consideration....
Failure To Comply With Statutory Service Requirements Was Fatal
July 1, 2024 - Bulletin Print Report
LC's petition had to be filed and served no later than August 24, 2022. LC filed its petition with the clerk of the circuit court on August 22, 2024. On August 23, it prope...
The I.R.S. Should Temper Its "Integrated Transaction" Proclivities
June 28, 2024 - Bulletin Print Report
A corporation acquires all of the stock of another corporation and, pursuant to its avowed plan, the acquiring corporation causes the acquired corporation to completely liquida...
Accounting For Commitment Fees Or "Standby" Charges
June 28, 2024 - Volume 18 Issue 124 Print Report
In Rev. Rul. 56-136, 1956-1 C.B. 92, the Service held that commitment fees incurred pursuant to a bond sale agreement under which funds for construction are made available in s...
Free Mobile Phones Were Subject To Use Tax
June 28, 2024 - Bulletin Print Report
Throughout West Virginia, ("WV"), S and its affiliates own and maintain wireless network equipment. S's physical network infrastructure is utilized by Sprint'...
Church Property Leased To For-Profit Daycare Operator Is Exempt
June 28, 2024 - Bulletin Print Report
LM was the owner of certain real property, (the "church property"). LM has operated a church on the church property. LM is a tax-exempt organization. In June of 2021,...
Unamortized Fees Deductible In Year Of Liquidation
June 27, 2024 - Volume 18 Issue 123 Print Report
P was engaged in the business of owning and operating a hotel. On January 1, 1941, P borrowed $167,000 from GSLIC, evidenced by a first mortgage real estate note providing for...
Hypothecation Loans Are "Real Estate Assets"
June 27, 2024 - Bulletin Print Report
TP is a real estate investment trust, (a "REIT"). A third-party lender, ("B"), originated and made the initial advance on a loan, (the "Construction Lo...
Qualified Settlement Funds Are Section 361(b) Creditors
June 27, 2024 - Bulletin Print Report
D is the parent of worldwide group of entities, (the "DWG"). D proposes to separate Business B from the Retained Businesses. D has Third-Party Debt, Litigation Obliga...
Electronic Dance Music Events Are "Live Musical Arts Performances"
June 27, 2024 - Bulletin Print Report
W was a New York City-based "music event" company. W's primary business concerned the operation of a music venue called "Output," located in Brooklyn, N...
Only Net Income From "FECs" Included In Sales Factor
June 26, 2024 - Bulletin Print Report
DuPont, ("D"), conducts significant international operations resulting in a large number of currency transactions. For U.S. financial reporting purposes, and in line...
Parent Paid Bonuses To Subsidiary's Employees
June 26, 2024 - Volume 18 Issue 122 Print Report
In 1980, Parent (P) established a bonus program for the employees of its wholly-owned subsidiary, S. Under the program, P pays cash bonuses in December of each year to S's...
Extracted Materials From The Earth Are Tangible Personal Property
June 26, 2024 - Bulletin Print Report
Taxpayer, a builder of custom homes, was assessed the use tax on various items purchased for its own use. Taxpayer filed an application for correction contending that dirt and...
Sales Tax Properly Imposed On Purchase Of Vehicle
June 26, 2024 - Bulletin Print Report
On June 24, 2023, Taxpayers purchased a 2004 Honda Pilot, ("P"), for $9,000.00. On July 8, 2023, Taxpayers privatelysold a 2005 Honda CRV, ("CRV"), fo...
The Willens Deal Survey June 2024
June 25, 2024 - The Deal Survey: June 2024 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.
Transfer Of Target Stock Does Not Preclude A Sec. 338 Election
June 25, 2024 - Volume 18 Issue 121 Print Report
P is a holding company and is the common parent of an affiliated group with which it files a consolidated income tax return. T is a holding company and is also the common paren...
Failure To Provide Adequate Notice Invalidates Election
June 25, 2024 - Bulletin Print Report
In the fall of 2020, the defendant/appellee, the Board, sought a voter-approved lodging tax increase to raise funds for the Hospital. The proposition was published four weeks i...
The "TIA" Bars A Challenge To Kansas City's Earnings Tax
June 25, 2024 - Bulletin Print Report
This case arises from T's allegation that the City of Kansas City's earnings tax is unconstitutional because it does not allow him to claim a credit for the full amount...
Purchases Of Tangible Personal Property Not Subject To Sales/Use Tax
June 24, 2024 - Bulletin Print Report
APP holds a contract with the United States Department of Energy, (the "DOE"), National Nuclear Security Administration, ("NNSA"), to manage and operate a f...
"Non-Recent" Sale of Property Not Evidence Of Its Value
June 24, 2024 - Bulletin Print Report
The subject property consists of three residential properties and one commercial property. The Auditor valued the four parcels at a total value of $576,800. The Board of Educat...
The I.R.S. May Pursue Unsecured Claims Against An Alter Ego
June 24, 2024 - Bulletin Print Report
D and H are Florida limited liability companies whose membership interests are owned by the same individuals. In 2002, D purchased real property in Tampa, Florida, (the "P...
LLC Is Not A Partnership
June 24, 2024 - Volume 18 Issue 120 Print Report
A is the grantor of Trust, (T). Under Sec. 671 of the Code, all of the income, deductions, and credits of the trust are those of A. On Date...
The "Mandatory Repatriation Tax" Is Constitutional
June 21, 2024 - Bulletin Print Report
Since 1962, Congress has taxed...controlled foreign corporations as "pass-throughs" (with respect to the controlled foreign corporation's"subpart F inc...
Petitioner's Purchases Of Drugs Were Made Under A Medicare Part B Plan
June 21, 2024 - Bulletin Print Report
F operates a Medicare-certified dialysis clinic. F orders prescription drugs through FMC's procurement system. ABC sold prescription drugs to FMC through ABC's specialt...
Reimbursements For Complementary Hotel Stays Is "Gross Receipts"
June 21, 2024 - Bulletin Print Report
DM participates in the Rewards Program, ("RP"), pursuant to the Participation Agreement, ("PA"). The RP is operated and administered by Marriott Rewards, (&...
Illumina Must Be Using The Expansion Doctrine To Facilitate Its Spin-Off
June 21, 2024 - Bulletin Print Report
It is widely believed that one ofthe least successful deals of the recent past wasIllumina, Inc.'s acquisition of GRAIL, Inc. This ill-fatedacquisition to...
Compensatory Transfers Not Subject To Gift Tax
June 21, 2024 - Volume 18 Issue 119 Print Report
In 1979, A and B, the founders of X, each owned 50 percent of the stock of X. On December 31, 1979, A and B each transferred 100 shares of X stock to N, C, and P as a bonus in...
Would A Takeover Imperil BATRA's Split-Off?
June 20, 2024 - Bulletin Print Report
There are preciousfewpublicly traded professional sports franchises. A recent entry into this select category is Atlanta Braves Holdings, Inc., ("BATRA"),...
Prior Protest Did Not Bar A Current Motion
June 20, 2024 - Bulletin Print Report
J leases, sells, and services natural gas compressors. This case involves the taxation of compressors maintained in EC that were leased to customers in SC and IC. In 2011, the...
Liberty's Adjustments To Split-Off Plan Seem Ministerial
June 20, 2024 - Bulletin Print Report
Liberty Media Corporation, ("LMC"), is poised to complete, a split-off in which it will be removing from the Liberty family of corporations, its 84 percent stake in S...
Passive Members Of LLC Are "Responsible Persons"
June 20, 2024 - Volume 18 Issue 118 Print Report
Ask 244, LLC, (the LLC), was assessed (New York) sales and use tax for the period June 1, 2004-May 31, 2009 in the amount of $735,899.91 plus interest. &...
Receivership Does Not Terminate Membership In Consolidated Group
June 20, 2024 - Bulletin Print Report
Parent is the common parent of a consolidated group, ("Parent Group"). Parent owns all the stock of Subsidiary, an insurance company subject to tax under section 831...
Suspended Corporation Has No Capacity To Sue
June 18, 2024 - Bulletin Print Report
XC Foundation, ("XC"), appeals from a Tax Court decision dismissing, for lack of jurisdiction, its petition for declaratory judgment. XC's petition challenged the...
What Is A "Charitable Contribution?"
June 18, 2024 - Volume 18 Issue 117 Print Report
In 2006, Mr. and Mrs. Kalapodis (K) received $75,000 in life insurance proceeds from the passing of their son. K used the proceeds to establish a Memorial Scholarship Fund in h...
Energy Transfer's Suit Challenging New Jersey's "PFF" Was Dismissed
June 18, 2024 - Bulletin Print Report
In 2002, New Jersey enacted the Business Tax Reform Act, which imposed a partnership filing fee, (the "PFF"), on companies with "any income derived from New Jers...
Disabled Veteran Allowed An Exemption For Her "Residence Homestead"
June 18, 2024 - Bulletin Print Report
Y and G are married, and each is a 100 percent disabled U.S.A.F. veteran. In 2012, when they lived together in their jointly owned San Antonio home, G applied for a tax exempti...
A "Statutory Merger" Entails Absorption By One Corporation Of Another
June 17, 2024 - Bulletin Print Report
PHH Holdings Corporation, ("PHHH"),was a wholly-owned subsidiary of PHH Corporation, ("PHHC"). PHHC, in turn, was wholly owned by Cendent Corporation....
Legal Fees Not Deductible
June 17, 2024 - Volume 18 Issue 116 Print Report
The California Franchise Tax Board (FTB) received information from the I.R.S. indicating that that agency disallowed a Schedule A itemized miscellaneous deduction related to le...
Accuracy-Related Penalty Properly Imposed
June 17, 2024 - Bulletin Print Report
S formed RS on February 17, 2011. RS elected to be taxed as an 'S' corporation. RB entered into collective bargaining agreements, ("CBAs"), with Local 813, a...
Indemnity Agreement Covered First-Party Claims
June 17, 2024 - Bulletin Print Report
M wanted to eliminate his tax liability from the sale of his insurance company. He hired a firm that had pitched him a tax-avoidance scheme that involved creating several trust...
Death Benefits Classified As Income In Respect Of A Decedent
June 14, 2024 - Volume 18 Issue 115 Print Report
The decedent was the proprietor of an insurance agency which sold insurance primarily for M and U. The decedent executed a separate contract with each insurance company. The co...
Out-Of-State Affiliate Was Physically Present In Washington
June 14, 2024 - Bulletin Print Report
TP is a distributor of tangible personal property based outside of Washington. TP operated as a subsidiary of P until...when TP was merged into...P. TP makes primarily wholesal...
Testamentary Conveyance Of Leased Realty Was A Change In Ownership
June 14, 2024 - Bulletin Print Report
The property is a commercial building and lots. The property has been owned by the Taylor Trust and MBH as tenants in common. On July 1, 1985, they leased the property to B for...
Option Agreement Not Set Aside Under A "Conduit" Theory
June 14, 2024 - Bulletin Print Report
In 1948, two cousins, EG and NFS, started a road construction company, GF. Six years later, they incorporated petitioner. The sons, VG and NFJ, joined the business during the 1...
Preferred Stock Escapes Sec. 306 Stock Designation
June 13, 2024 - Volume 18 Issue 114 Print Report
C is a corporation engaged in an ongoing business. As of September 4, 1981, C had issued and outstanding 66,001 shares of voting common stock, all of which were held by A. ...
National Bank Of Canada To Acquire Canadian Western Bank
June 13, 2024 - Bulletin Print Report
National Bank of Canada, ("NA") and Canadian Western Bank, ("CWB"), announced that they have entered into a definitive agreement, (the "Agreement"...
Injunctive Relief Barred By The Tax Injunction Act And The Comity Doctrine
June 13, 2024 - Bulletin Print Report
B is the mother of S.B., a minor child. HH is a non-accredited, private home school, and S.B. is enrolled at HH for both education and religious instruction. HH submitted an ap...
National Banks Are Not Exempted From All State Laws
June 13, 2024 - Bulletin Print Report
The United States maintains a dual system of banking, made up of parallel federal and state banking systems. Banks with federal charters, called national banks, are subject pri...
Motor Vehicle Delivery Fee Not Subject To Sales Tax
June 12, 2024 - Bulletin Print Report
Company, ("C"), is a national retail seller of used motor vehicles. Sales are made via C's website. C holds its vehicle inventory at various inspection centers ac...
Proportional Ownership Interests In Realty Did Not Remain The Same
June 12, 2024 - Bulletin Print Report
The real property at issue consists of two Los Angeles supermarkets, (the "properties"). In December 2014, Super A Foods, Inc., (the "corporation"), transfe...
Applying the "Passive Loss" Rules to Trusts
June 12, 2024 - Volume 18 Issue 113 Print Report
Trust, (T), is a "complex" trust. Mr. A is the beneficiary and a trustee of T. T holds various assets, including a partnership interest in B. B wholly-owns...
Real Property Was Properly Classified As "Residential Real"
June 12, 2024 - Bulletin Print Report
The subject property was "residential real" when it was purchased by G in August 2021 in an arm's-length transaction. G contends that the primary use of the subje...
NE And DO Will Join Forces In A Reorganization Transaction
June 11, 2024 - Bulletin Print Report
Noble Corporation plc, ("NE") and Diamond Offshore Drilling, Inc., ("DO"), announced that they have entered into a definitive agreement pursuant towhi...
PWSC Sets A New Trend For "Tax Receivable Agreements"
June 11, 2024 - Bulletin Print Report
PowerSchool Holdings, Inc., ("PWSC"), a self-described "leading provider of cloud-based software for K-12 education," announced that it has entered into a d...
"Subawards" Are Tax-Exempt Income
June 11, 2024 - Volume 18 Issue 112 Print Report
A and B own X, an 'S' corporation. On Date 1, X used its disregarded entity to acquire an "r%" limited partnership interest in Y, a limited partnership. A dev...
Gain From Sale Of Equity Interest Was "Business Income"
June 11, 2024 - Bulletin Print Report
The claimants' original IT 1040 apportioned capital gains from the sale of the company to Ohio...when calculating their non-resident credit. The amended IT 1040 allocated t...
Schlumberger Ltd. Studiously Avoids Reorganization Treatment
June 10, 2024 - Bulletin Print Report
Schlumberger Limited, ("Sodium"), a corporation organized under the laws of Curacao, and its indirect wholly owned subsidiaries, Sodium Holdco, Inc...
Lack Of Legal Or Equitable Title Eliminates Deduction
June 10, 2024 - Volume 18 Issue 111 Print Report
In March 1989, approximately $50,000 that was received from petitioner's parents was deposited as a down payment towards the purchase price of real property (SBC property)...
Payment Of Delinquent Tax Not Required To Maintain An Appeal
June 10, 2024 - Bulletin Print Report
GT is the owner of a power plant. For the 2014 tax year, the assessor imposed an assessed value of $33,445,837 on GT's property. GT appealed the assessment tothe BOR,...
Post-Distribution Repurchases Are Deemed Made Pro-Rata
June 10, 2024 - Bulletin Print Report
The D Worldwide Group is engaged in multiple businesses, including Business A, Business B, Business C, and Business D. Businesses B, C, and D are referred to as the "Contr...
Obligation To Redeem Shares Does Not Diminish Their Value
June 7, 2024 - Bulletin Print Report
M and T, who are brothers, owned a building supply corporation. Under an agreement, the corporation could be required to redeem the deceased brother's shares. To fund the r...
Announcement Of Spin-Off Before Discussions Eliminates Sec. 355(e)
June 7, 2024 - Volume 18 Issue 110 Print Report
D conducts a pharmaceuticals business. C, D's wholly-owned subsidiary, conducts a cosmetics business. D does all of the borrowing for both D and C and makes all of the deci...
The "BAP" Should Not Be Used In Computing The "Tax Factor"
June 7, 2024 - Bulletin Print Report
H is a manufacturer of single-use medical devices. H ships its manufactured products throughout the U.S. and in many countries outside the U.S. H elected to be taxed under subc...
Accounting Method For "Deferred Entrance Fees" Clearly Reflects Income
June 7, 2024 - Bulletin Print Report
Although section 446 of the Internal RevenueCode grants the Commissioner "wide discretion" to determine whether a taxpayer's accounting method clearly refle...
Extraction Of Cash From Spun-Off Entity Not Taxed To Parent
June 6, 2024 - Volume 18 Issue 109 Print Report
D3 has elected to be classified as a REIT within the meaning of Sec. 856(a) of the Code. D3 wholly owns LLC1, a disregarded entity. D3, through LLC1, owns all of the stock of D...
Expansion Doctrine Permits An "Early" Spin-Off
June 6, 2024 - Bulletin Print Report
P is the parent of an affiliated group that files a consolidated return. P owns all outstanding stock of D. D owns all outstanding stock of C. C owns all outstanding stock of C...
Six-Month Clock For Lodging An Appeal Never Began To Run
June 6, 2024 - Bulletin Print Report
The District of Columbia, (the "District"), levied a special assessment (in the amount of $15,146.63) on APPs' property on January 2, 2015. On the evening of Janu...
Vehicle Not Used Directly For Specific Farming Activities
June 6, 2024 - Bulletin Print Report
The Commissioner assessed use tax on CFF's purchase of a Mercedes-Benz utility vehicle. CFF did not pay sales tax on the transaction at the time of purchase and contended t...
Transfer of Bitcoins Not Subject To Sales Tax
June 5, 2024 - Volume 18 Issue 108 Print Report
Applicant (APP) provides Automated Teller Machines (ATMs) through which its customers may purchase Bitcoins. Bitcoins are a form of digital currency that is created by software...
Certain Retroactive Opioid Stewardship Payments Ruled Invalid
June 5, 2024 - Bulletin Print Report
The OSA created an "opioid stewardship fund." The OSA required a $100 million annual payment by all "manufacturers and distributors" of opioids in New York...
Lawsuit Not Filed Within Two Years Of Denial Of Refund Claim
June 5, 2024 - Bulletin Print Report
In May 2011, M was assessed $32,507.30 by the I.R.S. because she failed to timely file tax returns for the 2008 tax year. M alleges, however, that she paid $20,447 in foreign t...
Expanded Version: TCN's Distributions Will Have A Dual Character
June 4, 2024 - Expanded Bulletin Print Report
Tricon Residential, Inc., ("TCN"), a corporation organized under the laws of Canada, is in the final stagesof being acquired by Creedence Acquisition ULC, (the...
Taxpayer Denied California NOL Carryback
June 4, 2024 - Volume 18 Issue 107 Print Report
In 2008, TP liquidated her I.R.A. account and invested the proceeds with MMC. In 2010, TP discovered that she was the victim of a "Ponzi scheme" perpetuated by MMC. I...
Administrative Law Judge Was Not Compensated On A Fee Basis
June 4, 2024 - Bulletin Print Report
In 2018, petitioner was employed as a retired annuitant performing the duties of an administrative law judge, ("ALJ"), for the State of California. Petitioner conduct...
Board Of Education Cannot Appeal Board Of Revision Decisions
June 4, 2024 - Bulletin Print Report
In 2022, the Board of Education, ("BOE"), filed Complaints with the County Board of Revision, ("BOR"), challenging the true value of certain real property a...
Taxpayer's Failure Warrants Maximum FBAR Penalty
June 3, 2024 - Bulletin Print Report
G is a U.S. citizen. In 1996, G became a partner at PWC. He was based in Moscow, Russia. In 2003, he became the CFO of Novatek. In October 2005, an account was opened at C in Z...
"Accrued" Bonus Found To Constitute "IRD"
June 3, 2024 - Volume 18 Issue 106 Print Report
The decedent was in the employ of ACC for more than 20 years prior to his death on November 4, 1943, and at that time was a vice-president and director of the company.
Multiple Dwelling Denied Property Tax Exemption
June 3, 2024 - Bulletin Print Report
On September 8, 1999, Jersey City, ("JC"), adopted ordinances to allow for abatements and exemptions to qualified properties. On June 18, 2019, TP purchased vacant la...
OTCs Were Not "Providers Of Accommodations To Transient Guests"
June 3, 2024 - Bulletin Print Report
In September 2009, PB and JC filed this action against the online travel companies, ("OTCs"). The circuit court found that the OTCswere liable for the taxes...o...
Regular Quarterly Dividends Have Special Status
May 31, 2024 - Volume 18 Issue 105 Print Report
Pursuant to a plan of reorganization, Y Corporation, (YC), agreed to acquire the assets of X Corporation, (XC), in exchange solely for voting stock and the assumption by YC of...
Legal Fees Arose Out Of Personal Activities
May 31, 2024 - Bulletin Print Report
A is a pediatric geneticist who worked at the University of Southern California, ("USC"), in them medical school. In 2004, A was arrested on allegations of sexually a...
Separate Apportionment Percentages Must Be Computed For Each Affiliate
May 31, 2024 - Bulletin Print Report
Plaintiffs are ABC, Inc. and subsidiary corporations that joined with it to file consolidated Oregon returns for the years at issue. Plaintiffs have presented un-refuted eviden...
Most Time Limits Are Non-Jurisdictional
May 31, 2024 - Bulletin Print Report
In 2013, H, a long-time employee of the DOD, filed a claim with the Board objecting to a six-day furlough. The Board referred the case to an administrative judge. In 2016, the...
Intermediate Holding Company Was Not A Financial Institution
May 30, 2024 - Bulletin Print Report
Parent filed consolidated FIET returns for the 2012 through 2014 Return Years. Parent amended the original FIET returns. Parent filed FIET returns for the 2015 through 2020 Ret...
California Resident Denied Credit For Taxes Paid To Canada
May 30, 2024 - Volume 18 Issue 104 Print Report
In 2007, the taxpayers sold real estate located in Ottawa, Canada, which generated a capital gain in the amount of $136,951. The taxpayers asserted that they are entitled to an...
Credit Suisse's Amended Returns Were Rejected
May 30, 2024 - Bulletin Print Report
Plaintiff is part of a unitary business group (UBG), and holds residual interests in real estate mortgage conduits,("REMICs"). A REMIC is a special purpose vehi...
"Rent-Or-Sale" Exemption Not Applicable
May 30, 2024 - Bulletin Print Report
Vacant buildings in the District of Columbia, ("DC"), are subject to a higher tax rate. When a building becomes vacant...an owner has thirty days to register the buil...
USM Is Exiting The Wireless Business
May 29, 2024 - Bulletin Print Report
United States Cellular Corporation, ("USM"), and Telephone and Data Systems, Inc., ("TDS'), the owner of approximately 83 percent of the stock of USM, announ...
City Earnings Tax Not Properly Imposed On Remote Work
May 29, 2024 - Bulletin Print Report
The Ordinance authorizes the City (St. Louis) to impose a one percent tax on "salaries, wages, commissions, and other compensation earned...by non-resident individuals of...
Income To Which A Decedent Is "Entitled"
May 29, 2024 - Volume 18 Issue 103 Print Report
Decedent was an executive vice-president of General Motors, (G.M.), at the time of his death on November 27, 1969. For several years prior to his demise, he had participated in...
Labels Are Not Subject To Sales And Use Tax
May 29, 2024 - Bulletin Print Report
The taxpayer sells information labels to automobile dealers. The label is placed in the car in one of the rear windows and contains various bits of information, sometimes as re...
Will The Alternative Minimum Tax Penalize Reported Earnings?
May 28, 2024 - Bulletin Print Report
There is a new corporatealternative minimum tax, ("AMT"), regime, courtesy of the Inflation Reduction Act, that made its debutin 2023. We are just now sta...
The Willens Deal Survey May 2024
May 28, 2024 - The Deal Survey: May 2024 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.
Deducting Recurring Expenses
May 28, 2024 - Volume 18 Issue 102 Print Report
In 1962, M Corporation (MC), granted its employees a stock option. MC filed an offering circular with the S.E.C. registering the number of shares to be issued pursuant to the o...
Loan Repayments Are Not "Gross Receipts"
May 28, 2024 - Bulletin Print Report
A credit service organization, ("CSO"), is "any person (or entity) that, in return for the payment of money or other valuable consideration...can or will...provi...
Residuary Legatees Responsible For Inheritance Taxes
May 28, 2024 - Bulletin Print Report
The decedent was the settlor of the trust. He had three children. The decedent died in November 2020. In 2009 or 2010, the decedent began a romantic relationship with LM. They...
Purchase Of Leased Real Property Accomplished A Change In Ownership
May 24, 2024 - Bulletin Print Report
The Property has been used as a data center since about 2000. On March 11, 2015, TPT sold its interest in the Property to GPT. The Assessor determined that this was a change in...
Federal Changes Lead To State Assessment
May 24, 2024 - Bulletin Print Report
APP was a wholesaler of solar towers. APP executed an agreement in 2015 to sell 162 solar towers for $7,938,000, ("Sale"). The Sale agreement specified that APP would...
ERF To Pay A Special Cash Dividend
May 24, 2024 - Bulletin Print Report
Enerplus Corporation, ("ERF"), is being acquired by Chord Energy Corporation, ("CHRD"). The former is a Canadian corporationwhilethe latter is d...
Preferred Stock Received In 'A' Reorganization Is Not Sec. 306 Stock
May 24, 2024 - Volume 18 Issue 101 Print Report
X has outstanding a single class of common stock. Y has outstanding one class of common stock and one class of preferred stock. None of the preferred stock was "Sec. 306 s...
Expedia's Facilitation Fee Is Not Subject To Sales Tax
May 24, 2024 - Bulletin Print Report
The petition alleged that the defendants were "dealers" engaged in the business of selling and furnishing sleeping rooms...to transient guests; required to report and...
Note Includible In Income When Received
May 23, 2024 - Volume 18 Issue 100 Print Report
On January 14, 1977, the Covenantor (CO) and the Company (C) executed a non-competition agreement. Under this contract, the CO agreed not to compete with the C for a period of...
Stevedore's Gross Receipts Not Subject To Apportionment
May 23, 2024 - Bulletin Print Report
TP is a Washington corporation. TP submitted a refund request. TP asserted that income from certain activities which were previously reported under the service and other activi...
No Limit On Damages Arising From Timely Filed Infringement Claim
May 23, 2024 - Bulletin Print Report
In 1983, N and B formed Music Specialist, Inc., ("MSI"). That company recorded and released one album and several singles. B entered into an agreement with W to licen...
Suit To Bar Enforcement Of FBAR Was Dismissed
May 23, 2024 - Bulletin Print Report
Congress enacted the Bank Secrecy Act to encourage tax compliance and facilitate criminal investigations by requiring U.S. citizens to report financial relationships and transa...
Tenant-Stockholder Interest Is A "Real Property Interest"
May 22, 2024 - Volume 18 Issue 99 Print Report
Partnership (PS) holds interest in a parcel of real estate and several apartment buildings located on the real estate. The apartment buildings are owned by PS under two forms o...
License To Use Real Property Found
May 22, 2024 - Bulletin Print Report
TP operates an international network of retail stores through both franchise and corporate stores. The franchisee receives from TP the right and license to operate a TP store a...
Cultivation Of Plants Is Not "Manufacturing" Or "Processing"
May 22, 2024 - Bulletin Print Report
Taxpayer grows medical marijuana from seeds to usable "flower" (aka "bud"). The flower is then sold to dispensaries, or to other medical marijuana manufactu...
COKE To Repurchase Nearly Forty Percent Of Its Float
May 22, 2024 - Bulletin Print Report
Coca-Cola Consolidated, Inc., ("COKE"), is the largest United States bottler of Coca-Cola products. It can be described asclosely-held, but only in the sense th...
Expanded Version: NGM Biopharmaceuticals, Inc. Will Undergo A "Bootstrap" Acquisition
May 21, 2024 - Expanded Bulletin Print Report
Atlas Neon Merger Subsidiary, Inc. ("PUR"), a wholly-owned subsidiary of newly-formed Atlas Merger Parent, Inc., ("P"), is offering to purchase, (the "...
California Seeks To Legislatively Overturn Microsoft's OTA Victory
May 21, 2024 - Bulletin Print Report
One of the signature parts of the Tax Cuts and Jobs Act, P.L. 115-97, was its treatment of deferred foreign income accumulated by multinationals in subsidiaries organized outsi...
Payments Under A Covenant Not To Compete Are "IRD"
May 21, 2024 - Volume 18 Issue 98 Print Report
Petitioner's father ("decedent") died intestate on January 3, 1993. Before he died, decedent sold GAH to another veterinarian. As part of the sales transaction, d...
Sales Factor Excludes Receipts From "Occasional And Substantial" Sales
May 21, 2024 - Bulletin Print Report
APP was the parent company of a unitary business which operated automobile dealerships in California and Alaska. On November 16, 2016, APP sold the assets of its subsidiary cor...
There Is No Two-Year Embargo On Acquisitions Of "Spinco"
May 20, 2024 - Bulletin Print Report
Since the enactment, in 1997, of section 355(e) of the Internal Revenue Code, the so-called "anti-MorrisTrust" rule, it has become an article of faith on Wall S...
Land And Buildings Are Not "Of A Like Kind"
May 20, 2024 - Volume 18 Issue 97 Print Report
After 1957, land which the taxpayer held for investment was condemned. In the same year, he expended the proceeds of the condemnation in the construction of an office building...
Apple Music Streaming Service Is Not Subject To Sales Tax
May 20, 2024 - Bulletin Print Report
The instant motion concerns Apple's sale of subscriptions to its Apple Music streaming service. Apple Music is a service that uses the internet to stream audio content, suc...
Reliance On Agent Insufficient To Abate Penalty
May 20, 2024 - Bulletin Print Report
On April 6, 2023, the Taxation and RevenueDepartment, (the "Department"), issued a notice of assessment to the Taxpayer for the tax period ending December 31, 2...
AIG To Sell Down Its CoreBridge Financial Corporation Stake
May 17, 2024 - Bulletin Print Report
AIG, Inc., as of December 31, 2023, owned approximately 52 percent of the stock of CoreBridge Financial Corporation, ("CB"). AIG had expressed an intent to reduce its...
CRGY Is Annexing SBOW
May 17, 2024 - Bulletin Print Report
Crescent Energy Company, ("CRGY"), and Silver Bow Resources, Inc., ("SBOW"), announced that they have entered into a definitive agreement pursuant to which...
Deferred Estate Tax Accelerated By Redemption
May 17, 2024 - Volume 18 Issue 96 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 elected t...
Filing In Wrong County Does Not Invalidate An "NFTL"
May 17, 2024 - Bulletin Print Report
Petitioner, ("P"), timely filed Form 1040 for 2016 but failed to pay the tax shown as due. The I.R.S. assessed the tax P had reported for 2016 and mailed him a timely...
Unused Tax Credits Have Value
May 16, 2024 - Bulletin Print Report
AC operates a solar-electricity power-generation facility, (the "facility"), that uses renewable energy equipment. AC built the facility and placed it in service in 2...
"Short" Dividends Are Not "Real" Dividends
May 16, 2024 - Volume 18 Issue 95 Print Report
In a "short sale," which is usually handled by a broker, the short-seller is required to pay to the lender of the stock an amount equal to the cash dividend on the st...
Section 6038(b) Penalties Are Assessable
May 16, 2024 - Bulletin Print Report
Section 6038(a) requires U.S. persons to file information returns reporting their control of any foreign business. F failed to report his control of foreign financial accounts...
The Time Share Classification And Rate Were Constitutional
May 16, 2024 - Bulletin Print Report
The Maui County Code, (the "MCC"), outlines the real property classifications in the County. "...real property must be classified, upon consideration of its high...
Substantial Intercorporate Transactions Justified Combined Filing
May 15, 2024 - Volume 18 Issue 94 Print Report
KLC operates pre-K learning centers and after-school care for children ages six weeks to 12 years. K operates child day care centers and before and after-school programs for ch...
Transience Of Occupancy Defines A "Hotel"
May 15, 2024 - Bulletin Print Report
Petitioner, ("P"), is a Delaware limited liability company. P leases residential apartments, ("Rentals"), in New York City from cooperative and condominium...
Company Was Not In The "Health" Business
May 15, 2024 - Bulletin Print Report
Company, ("C"), provides "x" to customers based on orders from the customers' physicians. The order specifies the type of test required and provides bas...
Sightseeing Tours Were Subject To Sales Tax
May 15, 2024 - Bulletin Print Report
The Arkansas Gross Receipts Tax, also referred to as the "sales tax," is generally applicable to the sale of tangible personal property and certain enumerated services...
CHRD's Acquisition Of ERF Has An Unfavorable Tax Profile
May 14, 2024 - Bulletin Print Report
Chord Energy Corporation, ("CHRD"), a Delawarecorporation, and Enerplus Corporation, ("ERF"), a corporation organized under the provincial laws of Alb...
Dietary Product Exempt From Sales Tax
May 14, 2024 - Volume 18 Issue 93 Print Report
Petitioner, (P), is a California corporation that manufactures and distributes a line of products directly to consumers and through retailers under the name, "X," tha...
Residential Property Was Used For The "Tax-Exempt Purpose"
May 14, 2024 - Bulletin Print Report
O is a non-profit New Jersey corporation and a Federal section 501(c)(3) organization created in 2015 by D "to provide support services to adults with intellectual and dev...
Out-Of-State Services Were Incidental To The In-State Ones
May 14, 2024 - Bulletin Print Report
TP is an employment agency based in Houston, Texas, whose sole owner also resides in Texas. TP has no physical office in New Mexico, ("NM"). TP's work for Chevron...
Johnson & Johnson Will Retire Debt Tax-Efficiently
May 13, 2024 - Bulletin Print Report
A spin-off or split-off can be tax-free if, among other requirements, the distributing corporation distributes to its shareholders at least an amount of stock constituting cont...
Expenses Of Producing Capital Gains Deductible Under Sec. 212(1)
May 13, 2024 - Volume 18 Issue 92 Print Report
The taxpayer had long owned stock of APC which was engaged in the business of producing motion pictures. In January 1956, APC was dissolved. Each shareholder received his or he...
TracFone Wireless, Inc. Conducts A Telephone Business
May 13, 2024 - Bulletin Print Report
TracFone, Inc., ("T"), buys wireless airtime from network carriers, then resells this airtime on a prepaid basis at retail (to consumers) and at wholesale (to retaile...
No "Economic Hardship" Exception To Early Withdrawal Tax
May 13, 2024 - Bulletin Print Report
In 2018, when she was in her early 50s, petitioner received a taxable retirement plan distribution in the amount of $10,342. She withdrew the money to pay past-due rent and to...
Beer Tax Is Properly Imposed On "Heavy Beer"
May 13, 2024 - Bulletin Print Report
Utah Code section 59-15-101 provides: "A tax is imposed... on all beer, as defined in section 32B-1-102, that is imported, or manufactured for sale, use, or d...
Leasehold And Fee Found To Be Similar Or Related In Service And Use
May 10, 2024 - Volume 18 Issue 91 Print Report
Y is engaged in the business of hauling, handling, and storing office furniture. Y leased 10 acres of land improved by an office building and several small warehouses in which...
The "Aircraft Valuation Law" Withstands A Constitutional Challenge
May 10, 2024 - Bulletin Print Report
For 2017, the Utah Tax Commission's Property Tax Division valued Delta's aircraft according to the Aircraft Valuation Law's preferred method. Salt Lake County chall...
Depth Of Supervisor's Penalty Review Is Irrelevant
May 10, 2024 - Bulletin Print Report
On their timely filed return for 2015, petitioners claimed a deduction for a net operating loss, ("NOL"). The I.R.S. selected petitioners' 2015 return for examina...
INBX Sets Record Date For Taxable Spin-Off
May 10, 2024 - Bulletin Print Report
Inhibrx, Inc., ("INBX"), is engaging in a "Morris Trust" transaction in which Sanofi is the merger partner. This particular Morris Trust transaction is, unl...
REMICs Are Not "Secured" By Mortgages
May 9, 2024 - Volume 18 Issue 90 Print Report
A mortgage-backed security (MBS) is a tradable asset entitling its owner to principal and interest payments from a pool of mortgages. A simple type of mortgage security is know...
Compression Stockings Are "Medical Appliances"
May 9, 2024 - Bulletin Print Report
On Date 1, the taxpayer saw his cardiologist, DOCTOR. She ordered an ultrasound vascular procedure to be performedon the taxpayer's legs. On Date 2, DOCTOR placed an...
Loss Deduction Thwarted By Disguised Sale Rules
May 9, 2024 - Bulletin Print Report
The "distressed"receivables involved in the transaction originated with SB, a metal productssupplier organized under the laws of Brazil. E purchased produ...
Agency Property Used In Connection With A Business Is Taxable
May 9, 2024 - Bulletin Print Report
The MBTA owns many outdoor advertising signs. In October 2019, O entered into a contract with the MBTA to manage the MBTA signs. Under the contract, the MBTA granted O the excl...
Professional Gamblers Are Subject To Section 165(d)'s Limitations
May 8, 2024 - Bulletin Print Report
Petitioners, ("Ps"), were each a fifty percent partner in the partnership, SJ. During 2018, SJ's activity consisted solely of DA and DE placing wagers on slot mac...
Handling Directors' Qualifying Shares In A 'B' Reorganization
May 8, 2024 - Volume 18 Issue 89 Print Report
X is a national bank engaged in business as a commercial bank. It had outstanding only common stock, which was publicly held. Y, a bank holding company, acquired all of the X s...
Credit Card Rewards Eligible For Recurring Item Exception
May 8, 2024 - Bulletin Print Report
TP is a bank that issues credit cards. TP allows its cardholders to earn rewards...that can then be redeemed for cash, statement credits, travel, gift cards to third party vend...
Unclear Statute Construed In Favor Of The Taxpayer
May 8, 2024 - Bulletin Print Report
In 2017, K acquired GHC and its subsidiaries, including GHO. Three non-profit organizations were involved in the transaction: GHC, K, and GHCF. GHCF was formed in 2015, in cont...
Payments Not Contingent Upon Success Of Research
May 7, 2024 - Bulletin Print Report
M, a structural engineering firm, creates construction documents of the structural design for building projects. M sought research tax credits for its expenses in creating the...
Illinois Respects Sec. 338(h)(10) Elections
May 7, 2024 - Volume 18 Issue 88 Print Report
Prior to December 30, 2013, B, a New Jersey corporation, owned all the stock of D, a Delaware corporation, and A, a Pennsylvania corporation. A owned all of the stock of C, a N...
Perrier Is A "Soft Drink" Subject To Sales Tax
May 7, 2024 - Bulletin Print Report
M purchased a single 16-ounce bottle of Perrier from S. S collected and remitted sales tax. M filed refund petitions with the Department. The Department denied M's petition...
Qualified Amended Returns Not Found
May 7, 2024 - Bulletin Print Report
L and his wife are Swiss citizens. In 2006 and 2007, they lived in the U.S. Each year, they under-reported their taxable income by telling the I.R.S. they had no foreign bank a...
Treatment Of Amounts Paid To "Facilitate" A "Covered Transaction"
May 6, 2024 - Volume 18 Issue 87 Print Report
Sec. 263(a)(1) and Reg. Sec. 1.263(a)-2(a) provide that no deduction shall be allowed for any amount paid out for property having a useful life extending substantially beyond t...
At-Home Pandemic Work Deemed Performed In The City
May 6, 2024 - Bulletin Print Report
The issue in this case is whether the City of Cincinnati, (the "City"), can assess income tax liability to a non-resident employee for work performed outside the City...
Significant Harm Not Required For Title VII Claims
May 6, 2024 - Bulletin Print Report
From 2008 through 2017, M worked as a plainclothes officer in the Department's specialized Intelligence Division. MD asked the Department to transfer M out of the unit. The...
Silo Systems Are "Heavy Equipment"
May 6, 2024 - Bulletin Print Report
Silo systems are used to deliver sand at hydraulic fracturing sites. Due to their size, the sand silos are transported to a customer site on separate transport trailer...
OC Launches A Tender Offer For DOOR's Notes
May 3, 2024 - Bulletin Print Report
In anticipation of Owens Corning's acquisition of Masonite International Corporation's stock from its shareholders, OC is seeking to "refinance" some of DOOR&...
Improvements To Replacement Property Are QRP
May 3, 2024 - Volume 18 Issue 86 Print Report
TP received a letter from City requesting that TP sell his farm land to City. The letter stated that if TP was unwilling to sell, C would acquire the property through either em...
Collection Of Back Taxes Barred By Statute Of Limitations
May 3, 2024 - Bulletin Print Report
The city of Valdez, Alaska, ("V"), appealed the State's determination that certain property was not taxable. V won. But because the litigation took so long, V has...
"Timely Mailed/Timely Filed" Rule Found Inapplicable
May 3, 2024 - Bulletin Print Report
Like all federal courts, the United States Tax Court is a court of limited jurisdiction. In a deficiency case, the court's jurisdiction depends upon the issuance of a valid...
Expanded Version: ExxonMobil's Plan For The Acquisition Of Pioneer Natural Resources
May 2, 2024 - Expanded Bulletin Print Report
Pioneer Natural Resources Company, ("PNR"), ExxonMobil Corporation, ("EMC"), and SPQR, LLC, ("Merger Subsidiary"), a newly-formed, wholly owned, s...
Gain Not Included In Unincorporated Business Gross Income
May 2, 2024 - Volume 18 Issue 85 Print Report
Petitioner, (P), a partnership, was engaged in the business of selling office supplies by mail. On June 7, 1968, all of its partners entered into an agreement wherein each such...
Property Deemed To Have Been Held For Productive Use Or Investment
May 2, 2024 - Bulletin Print Report
TP is one of "X" beneficiaries of Trust. Trust holds Property, real property located in State Z. Decedent's Will provided for the Trust to cease upon the death of...
Intent To Defraud Is Necessary For A Theft
May 2, 2024 - Bulletin Print Report
H was incorporated in July 1998 to serve as the holding company for P. P faced a consistent lack of profitability. H turned to capital raises to cushion P's losses. These c...
Guarantor Denied Interest Expense Deduction
May 1, 2024 - Volume 18 Issue 84 Print Report
The taxpayers, husband and wife, were majority shareholders in a cattle ranch known as RV. On June 19, 1965, RV borrowed $1.5 million from the T....
Tax Court Petition Was Filed One Day Late
May 1, 2024 - Bulletin Print Report
Like all federal courts, the United States Tax Court is a court of limited jurisdiction. See section 7442 of the Code. In deficiency cases, "our jurisdiction depends upon...
Each Tenant Possesses Individual Rights In "Entireties" Property
May 1, 2024 - Bulletin Print Report
In July 2021, M filed for relief under Chapter 7... M listed his home, in which he had an interest as a tenant by the entirety, in his schedule of assets. M...
Section One Of The "FAA" Contains No Industry Requirement
May 1, 2024 - Bulletin Print Report
F is the second-largest producer and marketer of packaged bakery foods in the United States.B and W were franchisees who owned the rights to distribute F products in cert...
Successive Mergers Treated As A Single Merger
April 30, 2024 - Bulletin Print Report
UMB Financial Corporation, ("UMBF"), and Heartland Financial USA, Inc., ("HTLF"), announced that they have entered into a definitive agreement pursuant to&n...
"Incomplete" Spin-Offs (And Split-Offs) Have Gained Popularity
April 30, 2024 - Bulletin Print Report
Most spin-offs and split-offs, at least historically, have involved the complete separationof the controlled corporation(s),"spinco" or "splitco,&quo...
Sale Of Partnership Interests Does Not Give Rise To UBT
April 30, 2024 - Volume 18 Issue 83 Print Report
The limited liability company (LLC) is treated as a partnership for federal tax purposes. The members of the LLC are selling their membership interests to the Purchaser (PU). T...
Property Leased To For-Profit Entities Remained Exempt
April 30, 2024 - Bulletin Print Report
F seeks to recover property taxes paid under protest with respect to four buildings, (the "Property"). The Property is part of a larger complex, the University of New...
How To Measure A Class Of Stock's "Voting Power"
April 29, 2024 - Volume 18 Issue 82 Print Report
The common parent of an affiliated group of corporations owned 100 percent of the common stock and 50 percent of the preferred stock of one of its subsidiaries. The other 50 pe...
Permit Conditions Imposed By Legislation Are Subject To Scrutiny
April 29, 2024 - Bulletin Print Report
The Board of Supervisors is a legislative body under state law, and the adoption of the General Plan is a legislative act. The General Plan requires developers to pay a "t...
Market-Based Sourcing Of Receipts Was Permitted
April 29, 2024 - Bulletin Print Report
A corporate entity that does business both inside and outside of New Jersey, is subject to CBT on the income it allocates to New Jersey. One component of the allocation factor...
Will The Stabroek Block Contretemps Derail The Chevron/Hess Merger?
April 29, 2024 - Bulletin Print Report
Last fall, Hess Corporation, ("HC"), and Chevron Corporation, ("CC"), and Yankee Merger Sub, Inc., ("Merger Sub"), a direct wholly-owned subsidiar...
NeoGames Is Reincorporating
April 26, 2024 - Bulletin Print Report
NeoGamesS.A. is organized under the laws of Luxembourg. It has entered into an agreement pursuant to which, via a reverse triangular merger, it will be acquired by an Aus...
Preferred Stock Found To Be Voting Stock
April 26, 2024 - Volume 18 Issue 81 Print Report
The question presented is whether the preferred stock issued by WGPC constitutes nonvoting stock. The decision of this question determines whether WGPC was affiliated with RWC....
Rule 10(b)-5 Does Not Proscribe "Pure Omissions"
April 26, 2024 - Bulletin Print Report
Section 10(b) of the Securities Exchange Act of 1934 makes it "unlawful for any person...to use or employ, in connection with the purchase or sale of any security, any man...
Omission In Citation Did Not Amount To A Due Process Violation
April 26, 2024 - Bulletin Print Report
On July 6, 2021, plaintiff filed a complaint...challenging a Superior Court decree that foreclosed the right of redemption from a title conveyed by a tax collector's deed t...
Federal Trade Commission Finalizes Anti-"Non-Compete" Rules
April 25, 2024 - Bulletin Print Report
The Federal Trade Commission, (the "FTC"), as widely expected, finalized its controversial rules outlawing, except in limited circumstances, non-compete clauses, hist...
DIS And IBM Denied Deduction For Related Member Royalties
April 25, 2024 - Bulletin Print Report
Former Tax Law section 208(9)(o)(2) provided: "...for the purpose of computing entire net income...a taxpayer must add back royalty payments to a related member to the ext...
Equitable Ownership Governs Party Entitled To Interest Deduction
April 25, 2024 - Volume 18 Issue 80 Print Report
Because of their poor credit rating, petitioners were unable to qualify for financing to purchase the Alisal Property (AP). On April 4, 1990, a Grant Deed was issued to H and A...
No Refund Of Tax Upon Removal Of Leased Vehicle From New York State
April 25, 2024 - Bulletin Print Report
In August 2020, while living in Pennsylvania, petitioner co-leased a 2020 Dodge Ram truck for a term of 42 months from a Pennsylvania dealership. The monthly base payment under...
The Willens Deal Survey April 2024
April 24, 2024 - The Deal Survey: April 2024 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.
Enhanced Penalties For Willful Failure To File FBAR Properly Assessed
April 24, 2024 - Bulletin Print Report
V was an international agricultural salesman who did business in Eastern Europe. He opened a Swiss bank account and, from 2006 to 2011, failed to report the account's exist...
Embracer Group AB Plans A Spin-Off
April 24, 2024 - Bulletin Print Report
The board of directors of Embracer Group AB, ("EG"), announced a plan to separate EG into three "market-leading games and entertainment companies:" Asmodee...
Sec. 338 Replaced "Kimbell-Diamond"
April 24, 2024 - Volume 18 Issue 79 Print Report
P formed S for the sole purpose of acquiring all the stock of T by means of a reverse subsidiary cash merger. S merged into T with T surviving. The shareholders of T exchanged...
Aerial Cables Are Personal Property
April 24, 2024 - Bulletin Print Report
"Operating property" is assessed annually by the Idaho Tax Commission. Syringa, ("S"), is a telecommunications company providing voice and data transmission...
Forty Percent Is A "Substantial Part"
April 23, 2024 - Bulletin Print Report
Matterport, Inc., ("MTTR"), announced that it has entered into a definitive agreement with CoStar Group, Inc., ("C"), pursuant to which "C will acquire...
Entity Does Not Constitute A "Club Or Organization"
April 23, 2024 - Volume 18 Issue 78 Print Report
Petitioner, (P), was a country club which provided its patrons with social events, golf, tennis, and swimming. The Division of Taxation issued to P two notices of determination...
Church Unable To Quash Third-Party Summons
April 23, 2024 - Bulletin Print Report
GSH declared itself a church pursuant to section 508(c)(1)(A) of the Internal Revenue Code. GSH operates a thrift store with a small space inside that serves as a coffee shop....
What Is Michigan's "Default" Tax Rate?
April 23, 2024 - Bulletin Print Report
MCL206.51(1) provides: "...there is levied...upon the taxable income of every person other than a corporation a tax at the following rates... (b) Except as otherwise...
Expanded Version: Will WISH Be Able To "Monetize" Its Net Operating Losses?
April 22, 2024 - Expanded Bulletin Print Report
ContextLogic, Inc., ("WISH")," made a rather stunning announcement on February 12, 2024 regarding its immediate future. WISH, proud owner of some $2.7 billion in...
Settlement Payment Largely Excluded From Gross Income
April 22, 2024 - Volume 18 Issue 77 Print Report
In 2007, petitioners received a payment of $375,000 in settlement of a lawsuit. In the complaint, petitioners alleged that FH, an accounting firm, and certain accountants who w...
Tax On Arizona Tax Rebate Not Enjoined
April 22, 2024 - Bulletin Print Report
On March 13, 2020, the President declared a national emergency based on the outbreak of COVID-19. In 2022, twenty-onestates made special payments to their citizens in par...
Retained Shares Fall On The "Bad" Side Of The Sec. 355(e) Fraction
April 22, 2024 - Bulletin Print Report
In a "Reverse Morris Trust" transaction, i.e., a spin-off which is followed, as part of the overall plan, by a business combination in which spinco is theactive...
Property Conveyance To Related Corporation Ruled A Sale
April 19, 2024 - Volume 18 Issue 76 Print Report
The Hs owned 89 percent of the stock of HI. FH purchased HF, a tract of undeveloped land. She conveyed the property to HI in 1972. HI agreed to pay FH 1/3 of any net profit tha...
Eliminating A "DIG"
April 19, 2024 - Bulletin Print Report
PO is a domestic partnership that owned all of the outstanding stock of Parent. Parent was the common parent of a consolidated group, (the "Parent Consolidated Group"...
Taxable Property Acquired By Exempt Organization Remained Taxable
April 19, 2024 - Bulletin Print Report
S is a religious, non-profit organization serving skateboarders in Portland, Oregon... S is exempt from taxation under section 501(c)(3) of the Internal Revenue Code. On July 5...
I.R.S. Summons Was Issued In Good Faith
April 19, 2024 - Bulletin Print Report
In 1990, the United States and Spain entered a treaty in which both nations agreed that their respective tax authorities would exchange information with one another to enable t...
Contribution Of Stock Did Not Beget A Constructive Distribution Or Gift
April 18, 2024 - Bulletin Print Report
There are occasions where a dominant shareholder of a corporation is asked to "take one for the team," so to speak, by means of a voluntary surrender of a portion of...
Tesla, Inc. Is "Reincorporating"
April 18, 2024 - Bulletin Print Report
Tesla, Inc., ("TI"), is organized under the laws of Delaware. For well-publicized reasons, involving Mr. Musk's compensation,it has become disillusioned wit...
Is TGI Fridays Inverting?
April 18, 2024 - Bulletin Print Report
TGI Fridays, ("TGI"), recently announced that it had reached agreement...for a proposed "all-share acquisition" by U.K.-based hospitality business, and the...
Merger Without Continuity Of Interest Is A Sale
April 18, 2024 - Volume 18 Issue 75 Print Report
X is a state chartered savings and loan association having permanent shares of stock outstanding. X proposes to merge with and into Y, a federally chartered nonstock membership...
Ownership Of Assets Is Required For A Theft Loss Deduction
April 17, 2024 - Bulletin Print Report
P owned variable life insurance policies, ("Policies") on December 11, 2008. Seven of the Policies were with S, and the other nine were with G. "The assets of ea...
Military Retirement Pay Included In Gross Income
April 17, 2024 - Volume 18 Issue 74 Print Report
APP retired from the U.S. Navy on March 3, 1987. APP's Form DD-214 shows that APP was honorably discharged for "Retirement." APP applied for service-connected dis...
Taxpayer Fell Short Of Being A "Real Estate Professional"
April 17, 2024 - Bulletin Print Report
The Bs, Minnesota residents, own a single-family home on Bainbridge Island in the State of Washington,( the "Bainbridge Island property"). The Bs claimed losses...
Gain From Sale Of JV Interest Characterized As "Business Income"
April 17, 2024 - Bulletin Print Report
ALV, an 'S' corporation, was founded by AA and owned by him, the Trust, BW, and VA. ALV contributed substantially all of its operating assets to a joint ventur...
I.R.S. Waives Certain Underpayment Penalties
April 16, 2024 - Bulletin Print Report
The relief provided in this notice applies only for the purpose of calculating the installment of estimated income tax of a corporate taxpayer that is due on or before April 15...
Overpayment Election Not Intended To "Hinder" The Trustee
April 16, 2024 - Bulletin Print Report
The Ws, a married couple, filed a joint Chapter 7 bankruptcy petition on August 27, 2020. The bankruptcy court denied both Debtors a discharge under section 727(a)(2)(B). Secti...
Failure To Submit Sec. 83(b) Election With Return Excused
April 16, 2024 - Volume 18 Issue 73 Print Report
On Date 1, Y received "X" shares of common stock in X corporation, (X), for whom Y had provided services. On that same date, Y executed an election pursuant to...
Amgen's Penalties Were Timely Approved
April 16, 2024 - Bulletin Print Report
The I.R.S. audited petitioner's 2010 through 2012 federal tax returns. At the close of the audit, the I.R.S. prepared and issued to petitioner a memorandum, (the "exam...
Entity Remains A "Club"
April 15, 2024 - Volume 18 Issue 72 Print Report
Petitioner, (P), is a not-for-profit organization exempt from Federal taxation and is the sole owner and operator of "X," which provides its members with use of a gol...
COVID-Era Tax Court Petition Found To Be Timely
April 15, 2024 - Bulletin Print Report
Respondent, ("R"), issued petitioners, ("Ps"), a notice of deficiency dated December 2, 2019. The notice specified March 2, 2020, as the last day to petitio...
In-State Distributors Establish The Requisite "Physical Presence"
April 15, 2024 - Bulletin Print Report
R is an online auto parts retailer based in Wisconsin. The Arizona Department of Revenue, (the "Department"), assessed a transaction privilege tax ("TPT"),...
Managed Communities Are Not "Health Care Facilities"
April 15, 2024 - Bulletin Print Report
Taxpayer, ("TP"), is a publicly traded State corporation that has elected to be taxed as a real estate investment trust, ("REIT"), under sections 856 throug...
Purchase Of Ingredients For Use In Providing Meals Are Sales For Resale
April 12, 2024 - Bulletin Print Report
C and K are each Nursing Homes licensed by the Louisiana Department of Health and Hospitals. SH is a Level 3 Adult Residential Care Provider. ARCPs and Nursing Homes must provi...
Residual Value Protection Arrangement Not "Insurance"
April 12, 2024 - Volume 18 Issue 71 Print Report
During Year 1 and prior years, TP entered into contracts ("the contracts") entitled "XYZ insurance policies" with unrelated parties ("the pro...
"PFML" Premiums Constitute A "Tax"
April 12, 2024 - Bulletin Print Report
The Washington Paid Family and Medical Leave Act, (the "PFML"), provides paid sick leave benefits to Washington employees. The PFML requires employers to collect prem...
Distributor Owes Fuel Tax On Delivery To Retail Dealer
April 12, 2024 - Bulletin Print Report
BN has been a registered distributor of gasoline and diesel fuel in Cook County, ("CC"), since 2011. The Department issued two notices of tax determination and assess...
Stock Repurchase Regulations Closely Track Prior Guidance
April 11, 2024 - Bulletin Print Report
The I.R.S.'s proposed regulations addressing the "stock repurchase excise tax" introduce relativelyfew deviations from the prior preview of those regulation...
Taxpayer Not Recipient Of "Amusement Charges"
April 11, 2024 - Volume 18 Issue 70 Print Report
Petitioner operates a small "game room," consisting of a pinball machine, a jukebox, and two billiard tables. Each of these devices is coin-operated....
Withdrawal Of Vehicles From Stock Triggers Sales Tax Liability
April 11, 2024 - Bulletin Print Report
TF and TA are each vehicle dealerships. ADFA issued notices of proposed assessment. ADFA found that TF had assigned vehicles with dealer license tags to JB, SR, and ATN; and th...
Supervisory Approval Of A Penalty Determination Was Timely Obtained
April 11, 2024 - Bulletin Print Report
On November 28, 2011, an Internal Revenue Agent sent the Bs a cover letter and a series of enclosures. The cover letter referred to "findings" in an "enclosed re...
Capital Loss Sustained By Liquidation Distribution Transferee
April 10, 2024 - Volume 18 Issue 69 Print Report
In 1937, the taxpayers decided to liquidate a corporation in which they had equal stock ownership. Partial distributions made in 1937, 1938, and 1939 were followed by a final o...
Storage Fees Constitute Rents From Real Property
April 10, 2024 - Bulletin Print Report
TP intends to elect to be treated as a real estate investment trust, ("REIT"). Property A is comprised of "a" acres of land located in City A. Once Property...
Property Leased To A College Is Not Tax-Exempt
April 10, 2024 - Bulletin Print Report
O is a for-profit commercial real estate developer. On April 30, 2009, O purchased the Property. Starting January 1, 2011, O began leasing the Property to N. N is a school, col...
"IPPC" Used Its Property To Further A Tax-Exempt Charitable Purpose
April 10, 2024 - Bulletin Print Report
A owns several properties in Minneapolis, which are used exclusively as private residences for tenants whose incomes are 30-50 percent of the area median income. All of its uni...
Australian/Canadian Gold Company Consolidation Appears To Be Taxable
April 9, 2024 - Bulletin Print Report
Westgold Resources Limited, ("WGX"), an Australian corporation, and Karora Resources, Inc., ("KRR"), organized under the laws of Canada, "have agreed t...
Reduction Of Undersecured Nonrecourse Debt Yields CODI
April 9, 2024 - Volume 18 Issue 68 Print Report
In 1988, A borrowed $1 million from C and signed a note payable to C for the same amount that bore interest at a fixed market rate. A had no personal liability with respect to...
Tax Exemption Is Not "Federal Financial Assistance"
April 9, 2024 - Bulletin Print Report
H was a student at CP. In 2020, H and her mother sued CP for violating Title IX of the Education Amendments of 1972. To support their Title IX claim, APPs alleged that CP recei...
Faulty Advice Leads To A Refund Of A "Non-Refundable" Payment
April 9, 2024 - Bulletin Print Report
Utah Code section 59-10-1403.2(2) provides: (a) For each taxable year that begins on or after January 1, 2022, but begins on or before December 31, 2025, a pass-through entity...
'S' Corporations Need Not Run The Gauntlet Of The "Device" Test
April 8, 2024 - Bulletin Print Report
Assume we have secured as a new client an 'S' corporation, ("SCo"),the stock of which is wholly owned by A, an individual. SCo has no accumulated earnin...
Nebraska And Utah Supreme Courts Interpret "Including" Differently
April 8, 2024 - Bulletin Print Report
The widely-read blog, "Adams on Contract Drafting," in April 2007, made the following observations regarding the legal significance and implications of the solitary w...
Manufacturer Of Pharmaceuticals May Have "Nexus" With Virginia
April 8, 2024 - Volume 18 Issue 67 Print Report
TP, a partnership, is a developer and manufacturer of prescription drugs. TP markets its products in Virginia (V) through sales personnel. Although some of TP's sales repre...
Processed NGLs Are Subject To Severance Tax
April 8, 2024 - Bulletin Print Report
C is a natural gas producer. Fracking causes substances to be released from shale, including oil, condensate, methane, and NGLs. The oil and condensate are typically sold at th...
Receipts Not Directly Derived From Disposition Of Software
April 5, 2024 - Bulletin Print Report
Section 199 of the Internal Revenue Code was in force between 2004 and 2017. It allowed a deduction equal to nine percent of receipts from certain "domestic production act...
Extensive Marketing Efforts Did Not Make Lakers' Owner A "Dealer"
April 5, 2024 - Bulletin Print Report
In 2013, "APP," Dr. Jerry Buss, the former owner of the Los Angeles Lakers, purchased three contiguous single-family properties, (the "Shoreline Properties"...
Holding Company Acquisition Meets "COBE" Requirement
April 5, 2024 - Volume 18 Issue 66 Print Report
Target, (T), engages in Business A indirectly through its wholly-owned subsidiary, C. T also engages in Business B indirectly through its wholly-owned subsidiary, S....
Addressing Alaska Air's Accounting And Sunoco L.P.'s Distributions
April 5, 2024 - Bulletin Print Report
Alaska Air Group's Q1 operations were, to put it mildly, "impacted" by Flight 1282 in January and the Boeing 737-9 MAX grounding, which extended into February. As...
Recovery Of Overpayment Not Included In Gross Income
April 4, 2024 - Volume 18 Issue 65 Print Report
A taxpayer received a sum of money from her tax consultant as "recompense" for an error made by the latter in the preparation and filing of the taxpayer's tax ret...
Jurisdiction Requires An Actual Dispute
April 4, 2024 - Bulletin Print Report
Hawaiian Airlines, ("H"), purchased spare parts from Boeing, ("B") for H's fleet of B aircraft, and agreed to pay certain taxes related to those purchas...
"QSBS" Must Be Acquired At Original Issuance
April 4, 2024 - Bulletin Print Report
J, a former employee of the Universityof Oklahoma, ("OU"), is a named inventor on two patents. J assigned his rights in both patents to OU before November 2003....
Digital Textbooks Are Exempt From Sales And Use Tax
April 4, 2024 - Bulletin Print Report
B is a subsidiary of A, which is one of the largest contract operators of physical and virtual bookstores for college and university campuses and K-12 institutions across the c...
Acquisition Of Former Operating Corporation Satisfies "COBE"
April 3, 2024 - Volume 18 Issue 64 Print Report
Target, (T), is a closed-end nondiversified investment company. T qualifies as a regulated investment company under Sec. 851 of the Code. A...
British Airways' Payments Were For "Taxable Transportation"
April 3, 2024 - Bulletin Print Report
Section 4261(a) of the Internal RevenueCode applies a 7.5 percent tax to "the amount paid for taxable transportation of any person." The excise taxes imposed by...
Property Leased To A For-Profit Entity Is Not Exempt
April 3, 2024 - Bulletin Print Report
RPTL 420-a(1)(a) mandates: "Real property owned by a corporation or association organized or conducted exclusively for...charitable or hospital...purposes...and used exclu...
"MTP" Not Exempt From Ad Valorem Taxation
April 3, 2024 - Bulletin Print Report
If a business engages in manufacturing activity as defined in WIS. STAT. section 70.995(1)-(2), it reports its "manufacturing property" used in that activity to the D...
Put Option Makes "Covered Write" A Straddle
April 2, 2024 - Volume 18 Issue 63 Print Report
On August 1, 2002, A purchases 100 shares of X stock for $100 per share, writes a 12-month call option on 100 shares of X stock with a strike price of $110, and purchases a 12-...
Non-Taxable Compensation Treated As "Income"
April 2, 2024 - Bulletin Print Report
All property within the jurisdiction of this state (Idaho) "is subject to property tax." A property tax reduction benefit is available to certain qualifying individua...
Land Lessor Does Not "Provide Housing"
April 2, 2024 - Bulletin Print Report
O is a North Carolina non-profit organization, and its purpose is "to own and maintain land as a manufactured home community..." O owns approximately 3.74 acres of la...
Federal Tax Lien Properly Attached To Property Once Held By A "QPRT"
April 2, 2024 - Bulletin Print Report
The Ys transferred property into a Qualified Personal Residence Trust, ("QPRT"), in 1996. Nominal title to the property was subsequently transferred back to...
Expanded Version: Sports Owners' Tax Benefits Are Now Under I.R.S. Scrutiny
April 1, 2024 - Bulletin Print Report
The sale of the Baltimore Orioles to a group led by Carlisle Group founder and private-equity legend David Rubenstein coincides with the much-heralded establishment by the newl...
Assessing The Character Of "Boot" Gain
April 1, 2024 - Volume 18 Issue 62 Print Report
In Rev. Rul. 75-83, 1975-1 C.B. 112, X merged with and into Y in a reorganization under Sec. 368(a)(1)(A) of the Code. The sole shareholder of X received shares of Y stock and...
PPV And VOD Programming Is Not Tangible Personal Property
April 1, 2024 - Bulletin Print Report
Petitioner, ("P"), provides Television, ("TV") services to customers in Louisiana, ("La"), in exchange for monthly subscription fees. P a...
Failure To Timely File Form Precludes Claim To Surplus Proceeds
April 1, 2024 - Bulletin Print Report
In 2020, the Michigan Supreme Court ruled that former owners of properties sold at tax-foreclosure sales possess a "cognizable, vested property right to the surplus procee...
Book Not Entitled To Sales Tax Exemption
March 28, 2024 - Bulletin Print Report
RISCAdenied the application (for sales tax exemption) because the Book was sold on...so was commercial; and was also not a signed and numbered limited edition. Taxpayer,...
Accruing "Deductible" Contributions To Charities
March 28, 2024 - Volume 18 Issue 61 Print Report
TP owns and operates a station. The station is being operated pursuant to the FCC's Order. The Order requires that TP pay over part of the profits earned from the operation...
"Out-Of-Time" Refund Request Denied
March 28, 2024 - Bulletin Print Report
Taxpayer purchased the Truck at issue and registered and paid use tax on the Truck on a value of...on July 15, 2022. The Auditor testified that he reviewed the Taxpayer's r...
"Other Municipal Charge" Is A Term Of Art
March 28, 2024 - Bulletin Print Report
The City of Sea Isle City, (the "City"),is on a barrier island adjoining the Atlantic Ocean in Cape May County. The plaintiff, A, is a tenant of a property. A o...
Contingent Liabilities Assumed In A Merger
March 27, 2024 - Volume 18 Issue 60 Print Report
X merged with Z in a reorganization qualifying under Sec. 368(a)(1)(A). A and B, the shareholders of Z, agreed to reimburse X for any after-tax expenses that X might incur as a...
Church Affiliate Not Operated Primarily For Religious Purposes
March 27, 2024 - Bulletin Print Report
The petitioners, Catholic Charities Bureau, Inc., ("CCB"), and four of its sub-entities, seek an exemption from having to pay unemployment tax to cover their employee...
"Replacement Cost" Plausibly Includes Sales Tax
March 27, 2024 - Bulletin Print Report
P insured a leased vehicle under a policy through GEICO, ("G"). Under the policy, G may choose to pay the actual cash value, ("ACV"), to the insured... ACV...
Medical Marijuana Products Are "Articles Of Commerce"
March 27, 2024 - Bulletin Print Report
Taxpayer is a processor of medical marijuana products in Arkansas. DFA issued the Proposed Tax Assessment on April 21, 2023. Taxpayer converts marijuana plant materials into re...
Will Liberty Media's Split-Off Of SiriusXM Be A "Disqualified Distribution?"
March 26, 2024 - Bulletin Print Report
The recently announced split-off by Liberty Media Corporation of its stake in SiriusXM Holdings, Inc. has galvanized certain prominentinvestors into action. These investo...
Change in Obligor Does Not Produce "Significant Modification"
March 26, 2024 - Volume 18 Issue 59 Print Report
D Corporation, (D), and C Corporation, (C), D's wholly-owned subsidiary,are both Country A corporations. On Date M, D distributed, pro-rata to its sharehold...
Taxpayer Was A "Qualified New York Manufacturer"
March 26, 2024 - Bulletin Print Report
"Viticulture" is the cultivation of grapevines for the purpose of growing and producing grapes. It includes the growing of grapes for any commercial purpose.Gra...
"Decision" Encompasses Jurisdictional Dismissals
March 26, 2024 - Bulletin Print Report
The I.R.S. issued a notice of deficiency to F in 2018 for taxes owed for the 2014 and 2015 tax years. Pursuant tosection 6213(a) of the Code, he had 90 days to file a pet...
The Willens Deal Survey March 2024
March 25, 2024 - The Deal Survey: March 2024 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.
Senator Whitehouse Wants To Do Away With Tax-Free Reorganizations
March 25, 2024 - Bulletin Print Report
Senators Sheldon Whitehouse(D-R.I.), and J.D. Vance, (R-Ohio),with no advanced warning, recently introduced a rather startling piece of legislation that would more...
Transfer Of Property Was "Incident To The Divorce"
March 25, 2024 - Bulletin Print Report
On March 3, 1984, L and D married. L owned stock in API as his separate property. After API merged with PI, L received cash and stock as his separate property. In 1988, L loane...
Dwelling Unit Is A Mere Camp Or Cottage
March 25, 2024 - Volume 18 Issue 58 Print Report
Petitioners are residents of New Jersey. S, the husband, maintained employment in New York, and consequently petitioners filed as New York nonresidents as to the husband's...
"Usage" Agreements Found To Be Taxable Sales
March 25, 2024 - Bulletin Print Report
P manufactured laser devices used by physicians and other medical professionals to treat certain skin conditions...and it both directly sold the laser devices...and provided th...
Use (Not Intention) Takes Real Property Off The Tax Rolls
March 22, 2024 - Bulletin Print Report
The subject property consists of approximately 14.68 acres at New Market, Tennessee, in Jefferson County.The property is owned by the taxpayer. Approximately five acres o...
Legal Fees Incurred In Patent Infringement Suits
March 22, 2024 - Volume 18 Issue 57 Print Report
FDA approval must be obtained before a new drug can be legally marketed and sold in the U.S. A company seeking to market a drug that has never been approved before must submit...
The Section 6015(e)(1)(A) Filing Deadline Is Jurisdictional
March 22, 2024 - Bulletin Print Report
On June 16, 2021, the Commissioner issued separate notices of determination to PAO and PAU, denying each of their requests for innocent spouse relief for 2018. PAU mailed a Pet...
Non-Resident's Tax Credits Applied Before Apportionment
March 22, 2024 - Bulletin Print Report
The Department of Arkansas, ("AK"), Heritage issued a state income tax credit in the amount of $125,000 to LSP, L.P. The Ws were residents of Alaska, ("AL")...
TCN's Distributions Will Have A Dual Character
March 21, 2024 - Bulletin Print Report
Tricon Residential, Inc., ("TCN"), a corporation organized under the laws of Canada, is in the process of being acquired by Creedence Acquisition ULC, (the "Purc...
Payment Of Check Does Not Relate Back To Delivery Date
March 21, 2024 - Volume 18 Issue 56 Print Report
Petitioners filed joint returns on the cash receipts and disbursements method of accounting for each of 1959 and 1960. During 1960, petitioner husband did some work for one LT...
The Pandemic Was Not An "Access Interruption Event"
March 21, 2024 - Bulletin Print Report
Utah Code section 59-2-1004.6 allows a property owner to seek an adjustment to a county's assessment of the fair market value of the owner's property if the "prope...
A "Calamity" Is Not Limited To Natural Events
March 21, 2024 - Bulletin Print Report
I owned real property in Lincoln, Nebraska. As of January 1, 2020, the assessor had valued this real property at $793,800. On or about May 30 or 31, the property was damaged by...
Pipeline User Fees Are "Rents From Real Property"
March 21, 2024 - Bulletin Print Report
Taxpayer, ("TP"), is a real estate investment trust, ("REIT"). TP invests in energy infrastructure assets. S is a partnership. TP owns an approximately &quo...
FUSN Shareholders Will Receive CVRs
March 20, 2024 - Bulletin Print Report
AstraZeneca AB, ("AZN"), has entered into a definitive agreement to acquire Fusion Pharmaceuticals, Inc., ("FUSN"). AZN, through a newly formed Canadian sub...
Unemployment Compensation Is Not "Compensation"
March 20, 2024 - Volume 18 Issue 55 Print Report
During 1992, petitioner, (P), earned $306.26 in taxable wages, $299.36 in taxable interest income, $106 from jury duty service, and received $10,660 in unemployment compensatio...
USAC Is A Federal Instrumentality
March 20, 2024 - Bulletin Print Report
A is a provider of Lifeline, ("L"), services in Washington. It provides free mobile devices and wireless services to L-eligible consumers and receives a $9.25 reim...
A Tax Credit Is Not A Tax Payment
March 20, 2024 - Bulletin Print Report
APPs were residents of Arizona, ("AZ"), during 2017. APPs timely filed their California Non-Resident Return for the 2017 taxable year. APPs claimed an Other State Tax...
Expanded Version: SUN And NS Announce The LP Equivalent Of A 'B' Reorganization
March 19, 2024 - Expanded Bulletin Print Report
Sunoco L.P., ("SUN"), and NuStar Energy L.P., ("NS"), each a publicly traded partnership that has avoidedcorporate tax treatment by satisfying section...
Conversion Under "Formless" Conversion Statute
March 19, 2024 - Volume 18 Issue 54 Print Report
On January 1, 2003, A is organized in State as an unincorporated entity that is classified as a partnership for federal income tax purposes. A elects to convert under a state l...
Ninth Circuit Applies The "Beard" Test
March 19, 2024 - Bulletin Print Report
S brought this adversary proceeding in his Chapter 7 bankruptcyseeking a determination that his federal tax debts for 2003, 2004, 2006, and 2009 were dischargeable. The B...
Bona Fide Debt Not Found
March 19, 2024 - Bulletin Print Report
By 2010, H was the managing partner of NKSF, an accounting firm. K became one of NKSF's first clients. K regularly borrowed money from the partners at NKSF. On July 14, 200...
Contributions To Exempt Organizations Deductible Under Sec. 162
March 18, 2024 - Volume 18 Issue 53 Print Report
TP is a partnership. TP began operating in 2010 as a joint venture between Member 1 and Member 2. In State, owners of identified facilities are required to obtain a Certificate...
Commercial Laundry Denied "Grow NJ" Tax Credits
March 18, 2024 - Bulletin Print Report
The New Jersey Economic Development Authority, ("NJEDA") administers "Grow NJ." Grow NJ grants tax credits to businesses based on jobs created or retained i...
Proxy Voting Advice Is Not "Solicitation"
March 18, 2024 - Bulletin Print Report
This case concerns whether proxy advisory firms "solicit" proxies within the meaning of section 14(a) of the Securities Exchange Act of 1934. The Securities and Excha...
Absence Of Return Makes Assessment Timely
March 18, 2024 - Bulletin Print Report
L was the sole shareholder of T. In 2011, somebody on T's behalf filed Form SS-4 with the I.R.S. to obtain an EIN. T's SS-4 specified that it would file a Form 944 rath...
Disability Benefits Are "Social Security Benefits"
March 15, 2024 - Volume 18 Issue 52 Print Report
Petitioner, (P), was approximately 50 years of age at the end of 2010. During that year, P did not earn any wages, salaries, fees or other amounts derived from, or received for...
State Payments Were Based On Or Measured By Income
March 15, 2024 - Bulletin Print Report
P operated a casino in Indiana through a subsidiary company. The Department determined that certain payments by P to other state governments needed to be added back to the calc...
Refundable Tax Credits Are "Receivables" For REIT Asset Test Purposes
March 15, 2024 - Bulletin Print Report
TP is the sole general partner of OP. TP elected to be treated as a real estate investment trust, ("REIT"). OP is the sole member of S. S is a disregarded entity. S o...
Fuel Retailer Not Eligible For Temporary Storage Exemption
March 15, 2024 - Bulletin Print Report
Among the ROTA's exemptions is one that exempted "personal property purchased from an Illinois retailer by a taxpayer engaged in centralized purchasing activities in I...
MO's Sale Of BUD Stake Should Not Incur Taxes
March 14, 2024 - Bulletin Print Report
Altria Group, Inc., ("MO"), through the years, has seen its ownership of Miller Brewing metamorphose into different forms. Currently, that Miller Brewing investment i...
Dividends Properly Included In California Sales Factor Denominator
March 14, 2024 - Bulletin Print Report
APP and certain unitary affiliated entities filed a water's edge combined report for the fiscal year ending June 30, 2018. During that tax year, APP received repatriated di...
Expense Not Paid When Check Issued
March 14, 2024 - Volume 18 Issue 51 Print Report
VA is a personal service C corporation that uses the cash receipts and disbursements method of accounting. RV is the sole shareholder and CEO and CFO of VA. KV, RV's spouse...
Taxpayer Eligible For The "Subject To Tax" Exception
March 14, 2024 - Bulletin Print Report
HCM, (also referred to as "TP"), filed a final year Alabama business income tax return for tax year 2009. HCM wasmerged into HI as of December 31, 2009. HI is a...
Section 6501(l)(4) Applies Purely Prospectively
March 14, 2024 - Bulletin Print Report
P was employed as a corporate executive until at least 2004. He participated in many deferred compensation arrangements. In 2004, P was offered (and he accepted) a $26 million...
Merger Of "Transitory" Subsidiary Recast As Direct Acquisition
March 13, 2024 - Volume 18 Issue 50 Print Report
P wanted to acquire all of the outstanding stock of Y for cash. P was only able to purchase 97.9 percent of the outstanding stock of Y for cash. In order to complete the acquis...
BlackRock Forgoes A Basis Step-Up
March 13, 2024 - Bulletin Print Report
BlackRock, Inc., ("BLK"), is frequently credited with founding the "ESG" movement, a designation that it now seemingly regrets given the well-publicized&nbs...
Cummins, Inc. Is About To Shed Atmus Filtration Technologies, Inc.
March 13, 2024 - Bulletin Print Report
Cummins, Inc., ("CI"), owns just north of 80 percent (80.5 percent to be exact)of the issued and outstanding CommonStock of Atmus Filtration Technologies,...
Taxpayer's Primary Function Was Collection And Analysis Of Information
March 13, 2024 - Bulletin Print Report
Petitioner, ("P"), is a company that provides services to advertisers...that measure the effectiveness of their advertising campaigns. After survey data is collected...
EQT And ETRN Will Combine In An All-Stock Transaction
March 12, 2024 - Bulletin Print Report
EQT Corporation, ("EQT"), and Equitrans Corporation, ("ETRN"), announced that they have entered into a definitive merger agreement. EQT will be acquiring&nb...
Form 4868 Not a Claim for Refund
March 12, 2024 - Volume 18 Issue 49 Print Report
The parties agree that petitioner overpaid his Federal income tax for 2005. The issue is whether he is entitled to a refund or credit of Federal income tax for 2005....
Florida's Section 382 Limitation Tracks The Federal Limitation
March 12, 2024 - Bulletin Print Report
Verizon Communications, Inc., ("V"), acquired MCI, Inc., ("M"), in 2006 and Terremark Worldwide, Inc., ("T"), in 2011. When V acquired M, M had ac...
Federal "Mitigation" Provisions Not Incorporated Into Florida Law
March 12, 2024 - Bulletin Print Report
Earlier this millennium, Verizon Communications, Inc. ("V"), acquired some companies and began filing consolidated annual tax returns with them. Some of these companie...
NGM Biopharmaceuticals, Inc. Will Undergo A "Bootstrap" Acquisition
March 11, 2024 - Bulletin Print Report
Atlas Neon Merger Subsidiary, Inc. ("PUR"), a wholly-owned subsidiary of newly-formed Atlas Merger Parent, Inc., ("P"), is offering to purchase, (the "...
Bond Premium And Discount Are Not Netted
March 11, 2024 - Volume 18 Issue 48 Print Report
The corporation sold $4,000x of its bonds in 1964 at face value. In a transaction in 1969, the corporation redeemed $200x face value of such bonds at a price of $202x in accord...
Sales Tax Measured By Unbundled Cell Phone Price
March 11, 2024 - Bulletin Print Report
B bought a Samsung Galaxy S5 from Verizon for $249.99 as part of a "bundled transaction." The bundle required B to sign a two-year wireless service contract with Veri...
Gain From Sale Of Partnership Interest Was Apportioned (Not Allocated)
March 11, 2024 - Bulletin Print Report
Taxpayer, ("TP"), a South Carolina resident individual, was a partner in "Management Partnership," which owned 49 percent of "Operating Partnership.&qu...
Obligation Not "Indebtedness" For Purposes Of Sec. 108(e)(4)
March 8, 2024 - Volume 18 Issue 47 Print Report
Partnership (PS) was created to construct and operate "Project." On Date 1, A, a State Y corporation, withdrew from PS. On Date 2, B, a State Y corporation, withdrew...
Improvements To Land Were Not "Omitted" Property
March 8, 2024 - Bulletin Print Report
S and SSH are Kentucky companies that purchased property several years ago. The former PVA of MC, "B," received copies of the deeds and reflected the transfers of tit...
Non-Resident Unable To Rely On P.L. 86-272 To Avoid State Taxation
March 8, 2024 - Bulletin Print Report
K is the sole owner of LLC, a limited liability company organized under the laws of the state of Maryland. During the years 2012 through 2015, LLC was a disregarded entity. Eff...
Only The Same Consumer Can Claim A Sales Tax Credit
March 8, 2024 - Bulletin Print Report
On March 19, 2022, Taxpayer and "X" purchased a 2022 Kawasaki Ninja 650 ( the "K")...including a service and handling fee and an extended warranty. Taxpayer...
"Old Colony" Principle Applies To Partner's Payment Of Partnership Debt
March 7, 2024 - Volume 18 Issue 46 Print Report
MO is an Ohio limited partnership organized in 1986 with two partners. One was MOG, the general partner, and the other was MML, the limited liability partner. Each had a 50 per...
Prison Company Not Entitled To Gross Receipts Deduction
March 7, 2024 - Bulletin Print Report
TP is a private prison company that contracted with two counties to build and maintain two prisons, then subsequently supervise, house, and provide services to prisoners within...
"Toxic" Lender Found To Be An Exchange Act "Dealer"
March 7, 2024 - Bulletin Print Report
A was a so-called "toxic" lender. A obtained convertible debt of penny-stock companies, converted the debt into common stock at a steep discount, and sold the stock i...
Bakery Equipment Exempt From Sales And Use Tax
March 7, 2024 - Bulletin Print Report
C operates retail stores worldwide. Within these stores, C sells varied merchandise. C's stores include a bakery. Each bakery produces freshly baked products. All of the ba...
Failure To Timely Pay Tax Was Negligent
March 6, 2024 - Bulletin Print Report
The main issue to be decided is whether the Taxpayer owes penalty and interest. On October 17, 2022, the Department issued an assessment to Taxpayer. Taxpayer filed a timely wr...
Can JBLU "Recover" Its Costs From The Terminated SAVE Acquisition?
March 6, 2024 - Bulletin Print Report
JetBlue Airways Corporation, ("JBLU"), entered into a definitive agreement, in July 2022, to acquire Spirit Airlines, Inc., ("SAVE"). It was always apparent...
Vista Outdoor, Inc. Will Divest Its Sporting Products Business
March 6, 2024 - Bulletin Print Report
Vista Outdoor, Inc., ("VSTO"), conducts two principal lines of business, the Outdoor Products business, ("OP"), and the Sporting Products business, ("S...
Retention Of Debenture Not Part Of A Tax Avoidance Plan
March 6, 2024 - Volume 18 Issue 45 Print Report
X is engaged, through its subsidiaries, in various manufacturing businesses. Y, a wholly-owned subsidiary of X, has been actively engaged in a manufacturing business for 20 yea...
Direct Ownership Required For "Deemed Paid" Foreign Taxes
March 5, 2024 - Volume 18 Issue 44 Print Report
P is a domestic corporation that owns all of the stock of four domestic subsidiary corporations. P and its subsidiaries constitute an affiliated group and P filed a consolidate...
Taxpayer Was Not A "Qualified Performing Artist"
March 5, 2024 - Bulletin Print Report
Petitioner is a performing artist, appearing in commercials and doing voice-over work. In 2019, she was paid for her work in what was described as an industry standard: a "...
Capitalized Costs Of "QTP" Are Eligible For The "BRTC"
March 5, 2024 - Bulletin Print Report
G possessed an ownership interest in GDC. GDC owned an eighty percent interest in HSC. The certificates of occupancy for the resident building of the "Project" were e...
Financing Costs Were Incurred "By Reason Of" Production Activities
March 5, 2024 - Bulletin Print Report
23rd Chelsea Associates, L.L.C., ("23"), purchased real property and development rights on West 23rd Street, New York, New York. The T was placed in service on August...
"Interim Financing" Agreement Is "Boot"
March 4, 2024 - Volume 18 Issue 43 Print Report
X Corporation, (X), owns 86 percent of the stock of Y Corporation, (Y). M Corporation, (M), wished to acquire Y in a statutory merger. A merger agreement was executed...
Bureau Failed To Undertake Efforts To Serve Upset Sale Notice
March 4, 2024 - Bulletin Print Report
M was the owner of Property. M failed to pay real estate taxes on the Property beginning with the 2020 tax year. In early 2021, the Bureau sent M a "Claim Notice" by...
The FCRA Clearly Waives Sovereign Immunity
March 4, 2024 - Bulletin Print Report
This case arises from a loan K secured from the RHS, a division of the United States Department of Agriculture, ("USDA"). According to K, he repaid his loan in full b...
Group Member's "NBLs" May Not Be Shared With New Group Members
March 4, 2024 - Bulletin Print Report
From January 1, 2011 until January 31, 2016, the "AHI Entities" were a part of a Wisconsin combined group, the parent of which was AH. The combined group ceased to ex...
FA's Stock Will Be Taxable
March 1, 2024 - Bulletin Print Report
First Advantage Corporation, ("FA"), announced that it has entered into a definitive purchase agreement to acquire Sterling Check Corporation, ("STER"). FA...
Voting Stock Ownership For Purposes Of Sec. 902
March 1, 2024 - Volume 18 Issue 42 Print Report
FX, a foreign corporation, has outstanding 100 shares of voting stock divided into two classes: 95 shares of Class A stock and five shares of Class B stock. The classes are ide...
Shareholder Withdrawals Were Distributions
March 1, 2024 - Bulletin Print Report
Petitioner, ("T"),is a manufacturer of amusement machines. T made loans characterized as demand notes, (the "Loans"), to S. None of the Loans included...
Overpayment Interest Accrues Only After Filing A "Processible" Return
March 1, 2024 - Bulletin Print Report
The Taxpayer Advocate Service has asked the Office of Servicewide interest to implement a policy of paying interest on an over-payment reported on an individual income tax retu...
Private "Target" Serves As "Issuing" Corporation In Latest SPAC Merger
February 29, 2024 - Bulletin Print Report
Webull Corporation, ("WC"),has chosen to "go public" by means of a business combination with a special purpose acquisition company, ("SPAC")...
Municipality May Tax An Employee Working From Home
February 29, 2024 - Bulletin Print Report
In March 2020, Ohio's governor declared a state of emergency due to the COVID-19 pandemic. The Ohio Department of Health directed people to stay at home. The General Assemb...
Sec. 108 Does Not Apply To Exclude "Gain" From Gross Income
February 29, 2024 - Volume 18 Issue 41 Print Report
As of December 30, 1988, P held a recourse note from petitioners with a balance due of $152,260. At that time, petitioners were unable to make the required payments. Pursuant t...
Untimely Refund Claim Did Not Merely Clarify A Timely One
February 29, 2024 - Bulletin Print Report
AGH filed its 2015 federal income tax return on September 19, 2016. AGH alleges that in 2019 its accountant discovered an error in the tax return. AGH's accountant prepared...
"Boot" In A Divisive 'D' Reorganization Not Distributed
February 28, 2024 - Volume 18 Issue 40 Print Report
D is engaged in the business of real estate acquisition, subdivision, development, sale, leasing, and management. CI and CII will each be incorporated (by D) in State X.<...
COVID-19 Shutdown Did Not Cause Physical Loss Or Damage To Property
February 28, 2024 - Bulletin Print Report
R, a city in St. Louis County, Missouri, purchased a commercial property insurance policy from M to protect against loss of "business income," i.e., sales tax revenue...
Tardy Order Started The Appeals Clock
February 28, 2024 - Bulletin Print Report
In May 2015, the Cs filed a notice of appeal to the Tax Appeal Court, ("TAC"). The Cs contested the City's classification of several investment properties they ow...
State And Local Bond Interest Is "Excluded" From Taxable Income
February 28, 2024 - Bulletin Print Report
Section 220.11, Fla. Stat., provides, "A tax measured by 'net income' is hereby imposed on every taxpayer for each taxable year." "Net income," in t...
Is The HES/CHV Merger In Peril?
February 27, 2024 - Bulletin Print Report
Chevron Corporation, ("CHV"), several months ago, announced it had enteredinto a definitive agreement to acquire Hess Corporation, ("HES"), in an &quo...
What If Borrowed Stock Becomes Worthless?
February 27, 2024 - Bulletin Print Report
The Wall Street Journal, on January 2, 2024,reported that an alarming number of companies engaged in different phases of the beleaguered electric vehicle industryha...
AA Set To Acquire Joint Venture Partner
February 27, 2024 - Bulletin Print Report
Alcoa, ("AA"), and Alumina Limited, ("AL"),an Australian corporation, are partners in a joint venture that goes by the name of "AWAC." AA is...
Tax-Free Liquidation Into a Tax-Exempt Organization
February 27, 2024 - Volume 18 Issue 39 Print Report
P is a privately held member-owned cooperative with approximately "a" members. On Date 2, P became exempt from federal income tax under Sec. 501(c)(12)....
"Offset" Social Security Benefits Are Included In Income
February 27, 2024 - Bulletin Print Report
W worked as a registered nurse until 2014. In that year, she became disabled. She began receiving New York workers' compensation benefits in 2014. In 2015, W applied to the...
Recently Purchased Business Can Be Spun-Off
February 26, 2024 - Volume 18 Issue 38 Print Report
D has been engaged under a dealer franchise in the sale and service of brand Y automobiles since Year 1. In Year 8, D acquired a franchise for the sale and service of brand Y a...
Legislative Regulations Were Not Unreasonable
February 26, 2024 - Bulletin Print Report
In July 2015, plaintiffs filed refund claims with the Division of Taxation, ("Division"), for certain sales and use taxes, ("SUTs"), they paid for manufactu...
Seed Tester Eligible For "Scientific" Exemption
February 26, 2024 - Bulletin Print Report
Indiana Crop Improvement Association, Inc., ("IC"), sought an exemption...for real and personal property that it uses to operate a seed testing laboratory. In 1935, t...
Compensation For Rendering Services Is "Gross Income Of The Business"
February 26, 2024 - Bulletin Print Report
C is a wholesale distributor of beverages and conducts business in Washington. Y operates a wine distribution business in Washington. In 2011, C entered into a contract with Y,...
Funhouse Is An Amusement "Device" Or "Facility"
February 23, 2024 - Volume 18 Issue 37 Print Report
Petitioner, (P), is a Delaware corporation engaged in the business of providing amusement rides, food, and novelty concessions at state and county fairs. P has been granted the...
Divorce Instrument Contained A "Non-Alimony Designation"
February 23, 2024 - Bulletin Print Report
On November 21, 2005, petitioner, ("P"), and MS entered into a marital settlement agreement, ("Settlement Agreement"). Paragraph 1, captioned "Equitabl...
Use Tax Found To Be "Externally Consistent"
February 23, 2024 - Bulletin Print Report
Ellison Drainage, Inc., ("E"),is a Minnesota-based corporation with its principal place of business in Minnesota. Between 2017 and 2020, E completed approximate...
Railroad Entitled To Minnesota Subtraction For Pre-2013 Expenses
February 23, 2024 - Bulletin Print Report
S owned and operated railroads in the United Statesand Canada. On its federal income tax returns for tax years 2005 through 2017, the Railroad, ("RR"), claimed...
Merger Not A "Disposition" Of Installment Obligation
February 22, 2024 - Volume 18 Issue 36 Print Report
P is the common parent of an affiliated group of corporations. S is a wholly-owned subsidiary of P that was acquired by P in a taxable transaction on Date 1. &n...
Taxpayer Did Not Have A "Qualifying Child"
February 22, 2024 - Bulletin Print Report
Petitioner is the grandmother of A.V. and has been A.V.'s court appointed guardian since 2007. A.V. was not employed during 2020. Petitioner helped A.V. pay for rent, phone...
Whistleblower Need Not Prove "Retaliatory Intent"
February 22, 2024 - Bulletin Print Report
Congress enacted the Sarbanes-Oxley Act in the wake of the Enron scandal. 18 U.S.C. section 1514A establishes that no employer may "discharge, demote, suspend, threaten, h...
Failure To Report Swiss Account Was A Willful Violation Of FBAR
February 22, 2024 - Bulletin Print Report
K is a U.S. citizen. In 2008, K opened an interest-bearing account at FB in Zurich. He designated the account as "numbered." He also requested that FB retain, rather...
The Willens Deal Survey February 2024
February 21, 2024 - The Deal Survey: February 2024 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.
Alternatives or Separate and Distinct Proposals?
February 21, 2024 - Volume 18 Issue 35 Print Report
In the spring of 1944, the board of directors of petitioner, (SL), appointed a committee of the board to make a study of "all phases of the capital structure&quo...
Right To Apply For Club Membership Enhanced Real Estate Value
February 21, 2024 - Bulletin Print Report
Georgia imposes taxes upon all owners of non-exempt real and tangible personal property at the property's fair market value. Real property does not include the intangible b...
Vehicle Not "Used Directly" For Farming Activities
February 21, 2024 - Bulletin Print Report
The Commissioner assessed use tax on B's purchase of the vehicle. At the time of purchase, B did not pay sales tax on the transaction, contending that the vehicle was exemp...
Consulting Firm Was "Located" In The Ballpark Area
February 21, 2024 - Bulletin Print Report
"QHTCs" were granted various benefits, including a temporary exemption from the District of Columbia's corporate franchise tax. The "Ballpark Act" amend...
DKNG Agrees To A Forward Triangular Merger
February 20, 2024 - Bulletin Print Report
DraftKings, Inc., ("DKNG"), announced that it has reached an agreement to acquire Jackpocket, ("J"), "for total consideration of approximately $750 mil...
COF Proposes To Annex DFS
February 20, 2024 - Bulletin Print Report
Capital One Financial Corporation, ("COF"), and Discover Financial Services, ("DFS"), announced that they have entered into a definitive agreement pursuant...
Child-Related Contingency Eliminates Alimony Tax Deduction
February 20, 2024 - Bulletin Print Report
Petitioners appeal from the Tax Court's decision affirming the Commissioner of Internal Revenue's denial of an alimony deduction under section 215(a) and the Commission...
Gift Of Cash Surrender Value Of Life Insurance Policy Not Deductible
February 20, 2024 - Volume 18 Issue 34 Print Report
A taxpayer made a contribution to a college by irrevocably assigning to it the cash surrender value of a paid-up life insurance policy on the taxpayer's life. The college i...
Lions Gate Can Promptly Spin-Off Its Studio Business
February 20, 2024 - Bulletin Print Report
Screaming Eagles Acquisition Corporation,, ("SEAC"), a special purpose acquisition company, ("SPAC"), announced that it has entered into a definitive agreem...
Foreign Service Officer Subject To New York State Tax
February 16, 2024 - Volume 18 Issue 33 Print Report
Petitioner, (P), is a member of the Foreign Service and received orders to work for up to three years at United States Mission to the United Nations (USUN) in New York City. P...
Valuation Is Based On A Property's Existing Use
February 16, 2024 - Bulletin Print Report
At issue is the valuation of a 70-parcel residential rental community (the "property") comprised of 35 structures. Each structure contains two adjacent apartments, an...
IRA Funds Were Constructively Received
February 16, 2024 - Bulletin Print Report
Petitioner, ("P"), was indicted for crimes related to the distribution of controlled substances. P was a pharmacist in Kentucky. P's property, including the IRA,...
Lien Attached To Property Held By Third-Party Nominee
February 16, 2024 - Bulletin Print Report
To satisfy a delinquent taxpayer's outstanding liabilities, the Government may attach liens to property that is under the taxpayer's control or the control of a third p...
Is Sony Planning A Series Of Distributions Of SFGI Stock?
February 15, 2024 - Bulletin Print Report
It appears that Sony Group Corporation, ("S"), has reached a definitive decision to distribute to its shareholders somewhat more than eighty percent of the stock of i...
Property Acquired From Former Spouse Not "Purchased"
February 15, 2024 - Volume 18 Issue 32 Print Report
On October 8, 1989, petitioner, (P), married TH. Approximately two years later they purchased a home. The home was originally titled in P's and his mother's names, but...
Net Debt Relief Is "Other Property"
February 15, 2024 - Bulletin Print Report
S was the sole member of T. During 2011, T sold a commercial property (the "relinquished property") as part of a section 1031 transaction. In 2012, as part of the sam...
Installing Artificial Turf Is Not "Landscaping"
February 15, 2024 - Bulletin Print Report
TP performed contracts...that involved all aspects of either or both constructing and replacing athletic fields. The Department of Finance and Administration, (the "DFA&qu...
Erroneous Depreciation Charges Reduce Basis
February 14, 2024 - Volume 18 Issue 31 Print Report
In 1969, KIP began construction on nine prefabricated buildings that were then leased to a college for three years. The buildings cost $578,030 to erect.  ...
Forestry Is Not "Farming"
February 14, 2024 - Bulletin Print Report
TP has a farm in County. About two-thirds of the farm "is in timber," and the remainder is "hay meadow." TP included in his 2007, 2008, 2014, and 2015 feder...
Insurer's Gross Receipts Not Included Numerator Of Sales Factor
February 14, 2024 - Bulletin Print Report
The Plans cover certain claims by retail device customers for hardware service and technical support. Plans are sold through Apple, Inc., ("AI"). Plaintiffs...
CCI Was Not A "Qualified Emerging Technology Company"
February 14, 2024 - Bulletin Print Report
Petitioners calculated their corporation franchise tax on the entire net income base using the reduced rate as a qualified emerging technology company, ("QETC"). The...
Will WISH Be Able To "Monetize" Its Net Operating Losses?
February 13, 2024 - Bulletin Print Report
ContextLogic, Inc., ("WISH")," made a rather stunning announcement on February 12, 2024 regarding its immediate future. WISH, proud owner of some $2.7 billion in...
FANG Will Not Enjoy A Basis Step-Up
February 13, 2024 - Bulletin Print Report
We had high hopes that the acquisition by Diamondback Energy, Inc., ("FANG"), of Endeavor Parent LLC, ("EP"), would result in FANG achieving a cost basis in...
Funhouses Found To Be "Places Of Amusement"
February 13, 2024 - Volume 18 Issue 30 Print Report
Petitioner, (P), operates an annual haunted attraction ("the Attraction"). The Attraction is made up of roughly five different "funhouses" that are containe...
New Or Inherited Holding Period?
February 13, 2024 - Bulletin Print Report
In 2017, JS owned 231.744 acres of land in Taylor County, Florida. It donated a conservation easement on that land and claimed a deduction under section 170 of the Internal Rev...
Redemption Of 'S' Corporation Stock
February 12, 2024 - Volume 18 Issue 29 Print Report
Company, (C), has outstanding 150 shares of voting common stock and 1,657.8 shares of nonvoting common stock. A, the President and Chairman of the Board of Directors of C, dire...
Reimbursed Construction Costs Is "Good" REIT Income
February 12, 2024 - Bulletin Print Report
TP is a real estate investment trust, ("REIT"). TP's predecessor was P. TP and P togetherare referred to as "Company." TP is a limited partner of...
Benefits Are From Sources Other Than Privately Funded Sources
February 12, 2024 - Bulletin Print Report
Applicant is a public university that was created by the laws of Missouri. It pays benefits from two plans, the "R Plan" and the "S"Plan." For th...
The Municipalities Cannot Sue Non-Franchise Holders
February 12, 2024 - Bulletin Print Report
In 2005, the Texas Legislature added Chapter 66 to the Texas Public Utility Regulatory Act, ("PURA"), in an effort to "streamline state and municipal regulation...
Name Given To Certificates Controlling
February 9, 2024 - Volume 18 Issue 28 Print Report
The taxpayer was incorporated under the laws of New York on June 20, 1929. On June 25th, it purchased all of the stock of OPP and paid the sellers 1,000 shares of its own stock...
Full-Time National Guard Duty Is "Active Service"
February 9, 2024 - Bulletin Print Report
Plaintiff, ("P"), is a New Jersey resident and owns a residence in the Township. On January 20, 2023, the VA notified her that she is entitled to benefits commencing...
Activities Did Not Constitute A "Commercial Enterprise"
February 9, 2024 - Bulletin Print Report
In 2012, H created Rides2Work, ("R"), to connect vehicle drivers and riders interested in carpooling...for a fee. In September 2012, the first version of the R websit...
Statutory Remedy Precludes Equitable Relief
February 9, 2024 - Bulletin Print Report
The School District, ("SD"), seeks to recover from Property Owner, ("PO"), the amount in taxes it would have paid but for the County's delay in revising...
Barratt Developments PLC And Redrow PLC Announce A "Scheme"
February 8, 2024 - Bulletin Print Report
Barratt Developments PLC and Redrow PLC, each organized under the laws of the United Kingdom, recentlyannounced that the boards of directors of each such corporation have...
Base Year Land Value Not Altered By Swift Demolition Of Improvements
February 8, 2024 - Bulletin Print Report
On March 20, 2014, the Greenspans, (the "Gs"),purchased a home in Long Beach, California for $900,000. The change in ownership accompanying the purchasetr...
Trade Show Attendance Creates Taxing Nexus
February 8, 2024 - Volume 18 Issue 27 Print Report
TP is a privately-held corporation headquartered outside of Washington. TP sells custom apparel for sport and spirit teams over the internet, by telephone, and by catalog. All...
Extension For Trader To Make A Section 475(f)(1) Election Denied
February 8, 2024 - Bulletin Print Report
TP engages in securities trading. TP represents that during Date 3, TP began to actively trade securities in a revocable trust account. TP's acquisitions of certain securit...
The Incentive Period Runs During Months Of Non-Production
February 8, 2024 - Bulletin Print Report
Apache Corporation, ("A"), owned three horizontally completed oil wells that were subsequently sold to Bluebird Energy, LLC, ("B"), in July 2021. The wells...
Outsourcing Decision Leads To Partial Liquidation
February 7, 2024 - Volume 18 Issue 26 Print Report
X is engaged in the businesses of tanning and processing hides, and selling and merchandising the finished product. X has outstanding cumulative preferred nonvoting stock; and...
Fiber-Optic Cables Are Taxable Real Property
February 7, 2024 - Bulletin Print Report
Petitioner is a company that provides Internet, telephone and cable television services via fiber-optic cables and conduits to its private customers around the New York State....
Inter-Company Transfers Were Deemed Distributions And Contributions
February 7, 2024 - Bulletin Print Report
F was the sole shareholder of two 'S' corporations, C and CR. C's business operations included the collection of trash. CR's business operations consisted of pr...
Certified Mail Requires A Signature
February 7, 2024 - Bulletin Print Report
The Absecon City Tax Assessor sent a Chapter 91 request...via regular mail on June 15, 2022, without any response. On July 27, 2022, the Assessor resent the request directing&n...
Holding Company Found To Have "Nexus" With Detroit
February 6, 2024 - Bulletin Print Report
What is the modus operandi of a private equity firm? Typically, the firm sponsors a fund, organized as a partnership, and solicits investors, of some means, who a...
Choice Hotels And Wyndham Hotels Test The Limits Of Step Integration
February 6, 2024 - Bulletin Print Report
Choice Hotels International, Inc., ("CHH"), has been in hot pursuit of its industry colleague, Wyndham Hotels & Resorts, Inc., ("WH"), for quite some ti...
Convertible Debentures Not Regarded As Equity Under Sec. 385
February 6, 2024 - Volume 18 Issue 25 Print Report
ACQ (or TP) acquired all of the stock of T on "p." The aggregate purchase price was "$q," consisting of "$r" in cash, "$s" in conv...
Amazon Was In The Business Of Selling "TPP" At Retail
February 6, 2024 - Bulletin Print Report
Amazon Services, ("AS"), operates the Amazon.com website, (the "Marketplace"). The Department of Revenue, (the "Department"), assessed AS $12,490,...
Grant Of Bargain Option Is Not Payment Of Charitable Contribution
February 5, 2024 - Volume 18 Issue 24 Print Report
On January 2, 1980, A, an individual, granted to X, an organization described in Sec. 170(c)(2) of the Internal Revenue Code, a written option to purchase real property located...
Taxpayer Intent To Evade Tax Not Necessary To Invoke Section 6501(c)(1)
February 5, 2024 - Bulletin Print Report
For tax years 1993 through 1999, (the "years at issue"), the Ms relied on a tax return preparer, DH, to prepare their federal income taxreturns. Unbeknownst to...
Comparable-Assessment Analysis Led To Abatement Of Property Tax
February 5, 2024 - Bulletin Print Report
On the relevant valuation and assessment dates for the fiscal years at issue, Appellant, ("APP"),was the assessed owner of Condominium Unit 7 located at 400 Mar...
SUN And NS Announce The LP Equivalent Of A 'B' Reorganization
February 5, 2024 - Bulletin Print Report
Sunoco L.P., ("SUN"), and NuStar Energy L.P., ("NS"), each a publicly traded partnership that avoids corporate tax treatment by satisfying section 7704(c)&#...
Interest on Condemnation Award Not Excludible
February 2, 2024 - Volume 18 Issue 23 Print Report
Dominick and Louis Denaples, (D),were equal partners in two partnerships, D&L and K, and each owned 50 percent of the stock of an 'S' corporation, R...
Amazon Was Not The Consignee Of Merchants' Products
February 2, 2024 - Bulletin Print Report
O and S sell products on Amazon.com by participating in Amazon's "Fulfillment By Amazon," ("FBA"), program. To participate in the FBA program, a merchan...
Consolidation Of Pension Fund Assets Was Not Unconstitutional
February 2, 2024 - Bulletin Print Report
On January 1, 2020, Public Act 101-610 became effective and amended...portions of the pension code to consolidate all applicable local police and firefighter pension fund asset...
Sports Owners' Tax Benefits Are Now Under I.R.S. Scrutiny
February 2, 2024 - Bulletin Print Report
The sale of the Baltimore Orioles to a group led by private-equity legend David Rubenstein coincides with the establishment by the Internal Revenue Service of a "task forc...
Non-Resident Alien's Personal Exemption Deduction Is Zero
February 1, 2024 - Bulletin Print Report
B was a "non-resident alien." Section 873 governs deductions that non-resident aliens may claim when computing taxable income. Section 873(a) provides, "in the c...
Double Deduction Denied
February 1, 2024 - Volume 18 Issue 22 Print Report
In 1980, the taxpayer, a manufacturing corporation, discovered that between 1974 and 1977 an employee had embezzled $70,000x by writing checks for fictitious purchases of raw m...
Full-Time Employee Not A "Real Estate Professional"
February 1, 2024 - Bulletin Print Report
In 1994, G began renting out a California property he owned. In 2016, G bought a property in Hawaii; and in 2017, G began renting out the Hawaii property. G had a full-time...
Existence Of "STRP" Does Not Render Property "Commercial"
February 1, 2024 - Bulletin Print Report
The taxpayer, ("TP"),occupies the subject Property as his personal residence. TP, in 2016, applied for, and received, a non-owner-occupied permit to use the Pro...
Late Filing Of Request For Hearing Does Not Eliminate Penalties
January 31, 2024 - Bulletin Print Report
On March 20, 2018, the Department issued a gross receipts tax assessment to TP. On May 10, 2018, TP filed a timely written protest to the assessment of penalty. On May 16, 2018...
Redemption Of Nonvoting Stock Fails To Qualify Under Sec. 302(b)(1)
January 31, 2024 - Volume 18 Issue 21 Print Report
X had outstanding three classes of stock consisting of 100 shares of voting common stock, 100 shares of nonvoting common stock, and 50 shares of nonvoting 9 percent cumulative...
"Qualified Tuition And Related Expenses"
January 31, 2024 - Bulletin Print Report
In 2020, petitioner's son was enrolled in East Los Angeles College. On her 2020 federal income tax return, petitioner claimed the American Opportunity Credit, (the "AO...
A Late-Filed Submission Can Be A "Return"
January 31, 2024 - Bulletin Print Report
Plaintiff, ("P"), had an obligation to file his 2004 federal income tax return by April 15, 2005, or timely file for an extension, but failed to do either. On or abou...
WSC Offers Just Enough Stock To Accomplish A Reorganization
January 30, 2024 - Bulletin Print Report
WillScot Mobile Mini Holdings Corporation, ("WSC"), announced it has entered into a definitive agreement to acquire McGrath RentCorp, ("MGRC"). The deal, wh...
Loss Not Sustained In Year Claimed
January 30, 2024 - Volume 18 Issue 20 Print Report
On June 26, 2000, petitioners and some of their family members loaned MC $10,000,000, of which petitioners contributed $4,044,096, in exchange for a promissory note. According...
Unused Portion Of Property Not Eligible For Tax Exemption
January 30, 2024 - Bulletin Print Report
Petitioner, a not-for-profit corporation, owns two parcels of land which, since at least the 1980s, qualified for exemption from real property taxes for religious and education...
The Section 4973 Exaction Is A "Tax"
January 30, 2024 - Bulletin Print Report
In 2004, petitioner accepted a $26 million buyout from his company. The $26 million was paid in exchange for his ESOP stock and for his relinquishment of the interests he held...
TSLA Expresses Confidence In Its Ability To Generate Taxable Income
January 29, 2024 - Bulletin Print Report
Corporations are required to recognize"deferred tax assets" for "deductible temporary differences" and for loss and creditcarryforwards. Tesla,...
Contribution Of Partial Interest In Property
January 29, 2024 - Volume 18 Issue 19 Print Report
A, an individual taxpayer, is a shareholder of X corporation, (XC). A contributes 100 shares of A's voting stock in XC to Y, an organization described in Sec. 170(c) of the...
CCA Did Not Accept A Non-Taxable Transaction Certificate In "Good Faith"
January 29, 2024 - Bulletin Print Report
CCA owned and operated the Detention Center, ("DC"). CCA incarcerated inmates for the County at the DC pursuant to the contract it executed with the County in 2010. C...
Online Travel Companies Are Not "Proprietors" Or "Managing Agents"
January 29, 2024 - Bulletin Print Report
Online Travel Companies, ("OTCs"), operate websites where travelers can book hotel rooms. The city of Tucson, Arizona assessed Expedia, ("E"), for taxes und...
Recasting A Recapitalization To Find Sec. 306 Stock
January 26, 2024 - Volume 18 Issue 18 Print Report
X has outstanding 100 shares of voting common stock. A owned 20 of those shares. X entered into a plan of recapitalization under which all of the X shareholders surrendered the...
Indicia Of Recklessness Led To Willful Violation Of "FBAR"
January 26, 2024 - Bulletin Print Report
Defendants are U.S. citizens. The Lloyds Account, (the "LA"), was comprised of three components. Defendants did not disclose the existence of the LA to Y when he prep...
Reimbursement For Rebates Are Part Of Gross Receipts
January 26, 2024 - Bulletin Print Report
APP, a MetroPCS-authorized dealer, sold cell phones, cell phone accessories, and prepaid wireless service plans at seven locations in California. CDTFA conducted an audit of AP...
The Toll Road Was A "Highway"
January 26, 2024 - Bulletin Print Report
"Motor Carriers" are registered with and authorized by the U.S. Department of Transportation to haul others' property in interstate commerce. They each remitted q...
Website Not "Vendor" Of Restaurant Sales
January 25, 2024 - Volume 18 Issue 17 Print Report
Petitioner, (P), operates a website through which restaurants in over 27 cities and two countries offer meals for sale. When a meal is ordered through the website, the payment...
Section 83(b) Election Was Timely Revoked
January 25, 2024 - Bulletin Print Report
On Date 1, Y was granted an option to purchase "X" shares of Employer common stock, subject to a risk of forfeiture. On Date 2, Y filed an election under section 83(b...
Country Club Initiation Fees Were "Bona Fide"
January 25, 2024 - Bulletin Print Report
RO is a non-profit corporation that owns and operates a country club in Vancouver, Washington. The most expensive memberships are "proprietary," "corporate,"...
No Excise Tax Exemption For Returned Vehicles
January 25, 2024 - Bulletin Print Report
TP owns and operatesused motor vehicle dealerships in New Mexico. TP is licensed as a used motor vehicle dealer as well as a motor vehicle sales finance company. At the t...
INBX To Engage In An Intentionally Defective Morris Trust Transaction
January 24, 2024 - Bulletin Print Report
Inhibrx, Inc., ("INBX"), and Sanofi announced that the companies have entered into a definitive agreement under which Aventis, Inc., ("AI"), a subsidiary of...
LPSN Takes Steps To Protect Its Deferred Tax Assets
January 24, 2024 - Bulletin Print Report
LivePerson, Inc., ("LPSN"), has amassed sizable net operating losses, ("NOLs"),virtually all of whichwere sustained in tax years beginning after...
Substantial Compliance Saves "Defective" Sec. 1042 Election
January 24, 2024 - Volume 18 Issue 16 Print Report
A and B are husband and wife. C was a domestic C corporation and never had any stock outstanding that was readily tradable on an established securities market. C established an...
Tobacco Wholesaler Denied Refund Of Overpaid Taxes
January 24, 2024 - Bulletin Print Report
M is a wholesaler of tobacco products. M purchased "Other Tobacco Products," ("OTP"), from UST, also a wholesaler of tobacco products. UST purchased the OTP...
CHK And SWN Strike A Deal
January 24, 2024 - Bulletin Print Report
Chesapeake Energy Corporation, ("CHK"), and Southwestern Energy Company, ("SWN"), recentlyannounced that they have entered into an agreement to merge...
Circumstances In Which A Recently Acquired Business Can Be Spun-Off
January 23, 2024 - Bulletin Print Report
The active trade or business requirement, found in section 355(a)(1)(C), is arguably the one that is most closely identified with spin-offs. There are several layersto th...
Charitable Contributions Made By Credit Card
January 23, 2024 - Volume 18 Issue 15 Print Report
The I.R.S. has given further consideration to Rev. Rul. 71-216, 1971-1 C.B. 96, which holds that a taxpayer who used a bank credit card to contribute to a qualified charity may...
The USPS Postmark Date Controls
January 23, 2024 - Bulletin Print Report
The Bs appeal pro se from the Tax Court's denial of a motion to reconsider or vacate its decision sustaining the Internal Revenue Service's levy acti...
Recovered "FUSF" Contributions Are Subject To Sales Tax
January 23, 2024 - Bulletin Print Report
Petitioner, ("P"), is a limited liability company. Since May 2016, Charter Communications, Inc. has been the parent company of P. P provides "VoIP" telecomm...
The Willens Deal Survey January 2024
January 22, 2024 - The Deal Survey: January 2024 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.
Winery's Merger Agreement Was Crafted To Ensure A Tax-Free Outcome
January 22, 2024 - Bulletin Print Report
Where an acquisitive transaction qualifies as a reorganization, within the meaning of section 368(a) of the Code, the shareholders of the acquired corporation become entitled t...
Total AGI Is Used To Limit I.R.A. Deductions
January 22, 2024 - Volume 18 Issue 14 Print Report
During 2001 and 2002, petitioner husband was an active participant in a Sec. 403(b) employer-sponsored retirement plan. Petitioner husband claimed I.R.A. contribution deduction...
Lawsuit Barred By "Full-Payment Rule"
January 22, 2024 - Bulletin Print Report
Plaintiffs filed their 2018 tax return over six months after the April 15, 2019 deadline. The I.R.S. assessed income tax, as well as penalties. Plaintiffs allege that they file...
A "De Facto" Merger Occurred
January 22, 2024 - Bulletin Print Report
EK was a majority owner of F, a logging business. TK, EK's spouse, was F's secretary. F failed to pay its unemployment compensation taxes... FS is also a logging busine...
How To Calculate "Gross Income Stated In The Return"
January 19, 2024 - Volume 18 Issue 13 Print Report
Petitioners filed their 2006 and 2007 Forms 1040 on September 17, 2007 and October 2, 2008, respectively. Respondent sent petitioners a notice of deficiency on September 26, 20...
Remission Of Late Payment Penalties Granted
January 19, 2024 - Bulletin Print Report
Unique Paving Materials, ("UPM"), owns three parcels of real property in Cuyahoga County, Ohio. For the second half of tax year 2022, UPM received a late payment pena...
The Date Of Mailing Is The Date Of Delivery
January 19, 2024 - Bulletin Print Report
This deficiency case is presently before the court on respondent's Motion to Dismiss for Lack of Jurisdiction. Respondent asserts that petitioner did not timely submit and...
Property Qualified For "Greenbelt" Status
January 19, 2024 - Bulletin Print Report
R purchased the 19.9 acre property in Douglas County, Nebraska in 2016 with "the ultimate intent of developing it." At the time the property was purchased, and subseq...
Valuing A Prize Or Award
January 18, 2024 - Volume 18 Issue 12 Print Report
RT, whose name had been selected by chance from a telephone book, was called on the telephone on April 18, 1948 and was asked to name a song that was being played on a radio pr...
Memorandum Of Contract Recorded After Deadline
January 18, 2024 - Bulletin Print Report
S moved to the home in Carmel, Indianain October of 2020. She contracted to purchase the home on December 31, 2020, completing an application forIndiana's homes...
"Market Discount" Rules Apply To Repossessed Property
January 18, 2024 - Bulletin Print Report
OM operated a car dealership in Indiana, ("IN"). OM regularly executed installment sale contracts to finance part or all of its customers' purchase prices and the...
Income From Issuance Of "Offsets" Is Qualifying REIT Income
January 18, 2024 - Bulletin Print Report
TP intends to elect to be taxed as a REIT. TP owns commercial forest land, (the "Site"). The Site will qualify as real property within the meaning of section 856 of t...
Congress Moves To Restore Business Tax Benefits
January 17, 2024 - Bulletin Print Report
A bipartisan agreement is taking shape in Congress to restore, at least temporarily, certain business tax benefits that had beeneliminated by certainprovisions of t...
Sec. 108(a) Does Not Permit The Exclusion Of Gain
January 17, 2024 - Volume 18 Issue 11 Print Report
The taxpayers owned and occupied a residence that had a fair market value significantly less than the amount of the first and second recourse mortgages that encumbered the hous...
Prejudicial Dismissal Of "DOTA" Petition Was Warranted
January 17, 2024 - Bulletin Print Report
Petitioner filed a petition with the Division of Tax Appeals on September 30, 2022. The petition "appears to challenge a property tax." A statutory notice or concilia...
SNPS And ANSS To Undertake A "Taxable" Merger
January 17, 2024 - Bulletin Print Report
Synopsys, Inc., ("SNPS"), and Ansys, Inc., ("ANSS"), announced, on January 16, 2024, that they have entered into a definitive agreement pursuant towhi...
Agreement Classified As An "Option"
January 16, 2024 - Volume 18 Issue 10 Print Report
GR was engaged in the stock brokerage and underwriting business, and V was its sole shareholder and principal executive officer. On Septemb...
Petition Date Specified In The "NOD" Is Controlling
January 16, 2024 - Bulletin Print Report
On October 7, 2021, respondent mailed the first notice to petitioners for their 2017 taxable year. The first notice bears a stamped date specifying December 5, 2022, as the las...
Sterling Silver Flatware Is Not Exempt From Sales And Use Tax
January 16, 2024 - Bulletin Print Report
TP purchased sterling silver flatware, ("SSF"). TP requests a ruling to determine if SSF (and hollowware) meet the criteria for the exemption from application of the...
Modification Of Trust Instrument Resulted In A Gift
January 16, 2024 - Bulletin Print Report
In Year 1, A establishes and funds Trust, an irrevocable inter vivos trust, for the benefit of A's Child and Child's descendants. Under the governing...
Expanded Version: Is Twenty-Seven Percent "Good" Continuity Of Interest?
January 12, 2024 - Expanded Bulletin Print Report
Crescent Point Energy Corporation, ("CPG"), recently announced that it has entered into an "arrangement agreement" to acquire Hammerhead Energy, Inc., (&quo...
Use Of Appreciated Property To Satisfy A Claim Produces Gain
January 12, 2024 - Volume 18 Issue 9 Print Report
At the time of his death on February 1, 1973, the decedent owned 150 shares of common stock in a domestic corporation. The shares were valued for estate tax purposes at $70 per...
"TRAC" Lessor Denied Sales Tax Refunds And Credits
January 12, 2024 - Bulletin Print Report
G leases fleets of vehicles to businesses throughout the United States, including New York. Each of the lease agreements contained a "terminal rental adjustment clause,&qu...
Parent's Activities Established Nexus For Out-Of-State Affiliate
January 12, 2024 - Bulletin Print Report
TP is a distributor of tangible personal property based outside of Washington, ("W"). TP operated as a subsidiary of P until...when TP was merged into P...and has ope...
Pittsburgh's Tax On Non-Resident Athletes Cannot Be Salvaged
January 11, 2024 - Bulletin Print Report
Section 304 of the Local Tax Enabling Act, (the "Act"), provides that a...city with a publicly funded sports stadium or arena ("Facility") may impose a Faci...
I.R.A. Deduction Denied High Income Couple
January 11, 2024 - Volume 18 Issue 8 Print Report
During 2009, S was a self-employed consultant who reported his income on Schedule C. During 2009, T, S's wife, was employed by A. A made contributions on T's behalf to...
Lawsuit Can Be Filed Only After Administrative Remedies Are Exhausted
January 11, 2024 - Bulletin Print Report
In all Missouri counties, including Jackson County, ("County"), real property is assessed for tax purposes on a two-year cycle with the assessor placing values on pro...
Equitable Tolling Does Not Apply To Jurisdictional Time Limitations
January 11, 2024 - Bulletin Print Report
T owned property in Philadelphia, Pennsylvania, (the "Property"). On January 4, 2018, the City filed...a Tax Claim against T for unpaid real estate taxes, penalties,...
Deed In Lieu Of Foreclosure Is A Sale Or Exchange
January 10, 2024 - Volume 18 Issue 7 Print Report
On September 1, 1975, the taxpayer, an individual, acquired unimproved real property that was subject to a mortgage. The taxpayer was not personally liable on the mortgage. The...
Temporary Staffing Business Was A Qualified Trade Or Business
January 10, 2024 - Bulletin Print Report
Company, ("C"), operated as an interim staffing services business with a focus on matching experienced executives and managers with the staffing needs of its clients....
A "Renewal" Was Found To Be An "Approval"
January 10, 2024 - Bulletin Print Report
Plaintiff is a district library. Defendant 1, ("D1"),is a municipal corporation, and Defendant 2, ("D2"), is a public body corporate established by D1...
Foreclosure Sale Not Essential To A Takings Clause Violation
January 10, 2024 - Bulletin Print Report
Plaintiff was the owner of a commercial industrial property in Lansing, Michigan. In 2016 and 2017,a certificate of forfeiture of real property was recorded... The county...
ExxonMobil's Plan For The Acquisition Of Pioneer Natural Resources
January 9, 2024 - Bulletin Print Report
Pioneer Natural Resources Company, ("PNR"), ExxonMobil Corporation, ("EMC"), and SPQR, LLC, ("Merger Subsidiary"), a newly-formed, wholly owned, s...
RPT Realty Adjusts The Conversion Ratio Of Convertible Preferred Stock
January 9, 2024 - Bulletin Print Report
Kimco Realty, ("KIM"), has agreed to acquire RPT Realty, ("RPT"), in "an all-stock transaction" that is intended to, and undoubtedly will, qualify...
Trailer Not Affixed To Land
January 9, 2024 - Volume 18 Issue 6 Print Report
In 2005, petitioner accepted a job at L in California. She started her job on or about April 26th of that year while still living with her daughter in Wichita, Kansas.
PBMs Are Not Agents Of Their Customers
January 9, 2024 - Bulletin Print Report
TP provides pharmacy benefit management services to its customers. Customers provide health care insurance coverage to their members. Audit determined that TP failed to report...
Defective Petition Led To Dismissal
January 8, 2024 - Bulletin Print Report
Petitioner filed a petition with the New York Division of Tax Appeals on August 26, 2022. The petition challenges a notice of disallowance of a 2021 STAR credit that was disall...
Avoiding Sec. 305(b)(3)
January 8, 2024 - Volume 18 Issue 5 Print Report
X has 3,000 shares of $100 par value voting common stock outstanding. For valid business reasons, a plan of reorganization was adopted pursuant to which X agreed to the issuanc...
Use Of "BAP" to Calculate QEZE "Tax Factor" Was Irrational
January 8, 2024 - Bulletin Print Report
BH is an 'S' corporation. BH has been certifiedas a QEZEsince March 2002. BH derives significant income from other states and countries by way of mail and o...
Sales To MCOs Not Eligible For Illinois ROT Exemption
January 8, 2024 - Bulletin Print Report
M is a licensed provider of durable medical equipment, ("DME")...to individuals enrolled in Medicaid, ("ME"). Historically, the Illinois Department of Healt...
Trader's Losses Found To Be Capital In Nature
January 5, 2024 - Volume 18 Issue 4 Print Report
L has been engaged in the practice of law from 1969 to the time of trial. In September 1979, L commenced trading in commodity futures for his own account. During the periods he...
Group Membership Is A Factor In Determining Arm's-Length Interest Rates
January 5, 2024 - Bulletin Print Report
FP owns USSub. USSubowns operating assets and operates businesses essential to the group's financial performance. As a result, if USSub's financial condition were...
Notice Provisions Of The Tax Sale Law Were Not Satisfied
January 5, 2024 - Bulletin Print Report
Appellant, ("APP"),submitted the winning bid for the Property at the tax sale on September 15, 2021. On October 14, 2021, P filed an Appeal, (the "First Pe...
Property Tax Petition Was Timely Served And Filed
January 5, 2024 - Bulletin Print Report
H owned the H Golf Course until it sold it to GC on September 21, 2021. Prior to the sale, the subject property was classified, valued, and taxed under the "Open Space Law...
Butane Is A Taxable (Not An Alternative) Fuel
January 4, 2024 - Bulletin Print Report
In 2005, Congress enacted "the Act," creating two new tax credits for producers of alternative fuels and alternative fuel mixtures. The Act provided an "alternat...
Replacement Value Is Not Adjusted Basis
January 4, 2024 - Volume 18 Issue 3 Print Report
The taxpayer sold certain assets consisting of printing equipment, minor tools, supplies, and the land and building where the "Claremont News" was located. The taxpay...
Hotel Serves Museum's "Mission"
January 4, 2024 - Bulletin Print Report
W is a section 501(c)(3) non-profit corporation. W constructed, owns, and operates Hotel. Hotel is located across the street from Museum. Museum is operated by MI. MI is also a...
"Outbound" Spin-Off Escapes The Rigors Of Section 367(e)
January 4, 2024 - Bulletin Print Report
FP is a publicly traded Country A corporation, and the parent of a worldwide group, (the "P Worldwide Group"). The P Worldwide Group's business operations include...
Sec. 108(e)(5) Is Narrowly Construed
January 3, 2024 - Volume 18 Issue 2 Print Report
In 1988, A, an individual taxpayer, purchased an office building from B for $1,000,000. To pay for the building, A signed a note payable to C, a third party lender, for $1,000,...
City's Petition For A Tax Deed Was Found To Be Defective
January 3, 2024 - Bulletin Print Report
This case concerns the City's efforts to obtain a deed for property sold at a tax sale. The owner of such property has a right to redeem it for a period of time following t...
Head Of Household Return Is Not A "Separate" Return
January 3, 2024 - Bulletin Print Report
MS filed as "head of household." Her husband, MR, filed as "single." Since the Ss are married and live together, MS cannot file as head of household and MR...
Must LGF Delay The Spin-Off Of "PubCo?"
January 3, 2024 - Bulletin Print Report
Lions Gate Entertainment Corporation, ("LGF"), announced a transaction, a very complex transaction we might add, in which, in effect, it will be transferring its crit...
"Rebates" Do Not Constitute "Gross Income"
January 2, 2024 - Volume 18 Issue 1 Print Report
The taxpayer (TP), an individual, purchases "scrip" from an organization described in Sec. 170(c) of the Internal Revenue Code....
Lessee Taxed On Property Leased From Authority
January 2, 2024 - Bulletin Print Report
On January 1, 2019, the appellant, ("APP"),was the lessee of a parcel of real estate owned by the Massachusetts Port Authority, ("M"), consisting of l...
Texas' "Place Of Transfer" Approach To Sourcing Is Permissible
January 2, 2024 - Bulletin Print Report
Texas levies a franchise tax on all businesses chartered, organized, or conducting business within Texas. Texas applies the franchise tax on the business's "taxable ma...
Tax Court Petition Was One Day Late
January 2, 2024 - Bulletin Print Report
On October 13, 2022, the Internal Revenue Service sent petitioners a notice of deficiency for 2017 and 2018. The notice stated that the last day on which petitioners could time...
A Short Sale Does Not Create An "Indebtedness"
December 29, 2023 - Volume 17 Issue 249 Print Report
Y is a qualifying charitable remainder unitrust under Sec. 664(d)(2) and (d)(3) of the Code. Y proposes to invest in a number of funds that will be treated as partnerships for...
Circulating A Free Newspaper Is Not A Charitable Activity
December 29, 2023 - Bulletin Print Report
The subject property consists of a 0.98 acre lot improved with a single-family home. One bedroom is used as an office for both C's operations and the tax preparing services...
EQT May Appeal An Assessments Of Another Person's Property
December 29, 2023 - Bulletin Print Report
This case arises from a protest of a property tax appraisal of EQT's producing natural gas wells in MC by the Tax Department, and the property tax assessment by the MC Asse...
An "SMLLC" Is Disregarded For Tennessee Tax Purpose
December 29, 2023 - Bulletin Print Report
TP is a wholly owned subsidiary of a publicly-traded company headquartered outside of Tennessee, ("TN"). TP is headquartered outside of TN. TP maintains "Facilit...
Income and Expenses Required For an "Active Trade or Business"
December 28, 2023 - Volume 17 Issue 248 Print Report
A corporation had been engaged in the refining, transporting, and marketing of petroleum products since 1929. Since 1947, the...
Passive Activity Gross Income Is Investment Income
December 28, 2023 - Bulletin Print Report
J is involved in several companies. With respect to the three companies at issue, DFC, R, and P, J estimates that he spent more than one hundred hours, but less than five hundr...
Municipality's Lien On Real Property Was Valid
December 28, 2023 - Bulletin Print Report
Plaintiffs commenced these consolidated actions to collect delinquent ad valorem property taxes for the years 2017 and 2018 on various and sundry real properties, including the...
Local Taxpayer Standing Was Not Found
December 28, 2023 - Bulletin Print Report
In June 2020, CG, a venture capital firm based in Chicago, purchased a residential property in Roanoke, Virginia. CG subsequently leased the residence to P. P opened and operat...
Conditions For Waiver Of Sovereign Immunity Were Not Met
December 27, 2023 - Bulletin Print Report
On August 30, 2022, the Department issued and mailed a Notice of Final Determination, ("NOFD"), to Respondent, ("R"), assessing additional sales and use tax...
Compensatory Options Not Counted For Sec. 1504 Purposes
December 27, 2023 - Volume 17 Issue 247 Print Report
P is a State X corporation that serves as a holding company. P has one class of common stock outstanding which is both widely held and publicly traded. &...
Taxpayer Lacked Standing To Appeal The "RMV" Of Residential Property
December 27, 2023 - Bulletin Print Report
The subject property is a 1,632-square foot house built in 2016 and situated on a 1.10-acre lot. Both parties agree that the value of the subject property is impacted by a deco...
The Sales Tax Credit Is "Person-Specific"
December 27, 2023 - Bulletin Print Report
The Petition seeks relief from a Proposed Tax Assessment involving the denial of a credit against sales and use tax. The Petition was timely filed. The burden of proof is a pre...
Letter Of Credit Is A "Payment" For Purposes Of Sec. 170
December 26, 2023 - Volume 17 Issue 246 Print Report
On August 27, 1982, the taxpayer executed an irrevocable banker's letter of credit (LOC) in favor of a charitable organization under Sec. 501(c)(3) of the Code....
Perfected "PMSIs" Take Priority Over Federal Tax Liens
December 26, 2023 - Bulletin Print Report
Between February 11, 2013 and January 9, 2017, the Secretary made assessments against W. W failed to pay in full. Federal tax liens arose in favor of the United States on the d...
California's P.L. 86-272 Guidance Is Voided
December 26, 2023 - Bulletin Print Report
A is a non-profit trade association. California's franchise tax is imposed on the net income of every corporation doing business within the limits of this state. P.L. 86-27...
Only USPS Postmarks Signify Receipt Date Of Tax Payments
December 26, 2023 - Bulletin Print Report
W concedes that its 2019 real property tax payments were not received by the County treasurer by their due dates. Late fees were assessed. The Board of Tax Appeals, (the "...
When Must Procedural Requirements Be Strictly Complied With?
December 22, 2023 - Bulletin Print Report
Tax statutes, be they federal, state, or local, frequently embody a mixture of both substantive and what might be termed "procedural" requirements. It is usually not...
Earthstone Energy's Special Dividend Will Be Subject To Withholding Tax
December 22, 2023 - Bulletin Print Report
Several months ago, Permian Resources Corporation, ("PR"), and Earthstone Energy, Inc., ("ESTE"), entered into a plan and agreement which envisioned the acq...
Preferred Stock Constitutes An "Interest In The Affairs" Of The Issuer
December 22, 2023 - Volume 17 Issue 245 Print Report
In 1926, under an agreement with petitioner, EFC organized a new corporation with 12,500 shares of non-voting preferred stock and 30,000 shares of common stock.
Damages On Account Of Wrongful Termination Are Not Excluded
December 22, 2023 - Bulletin Print Report
Q began working for A in 2009. Q suffers from anxiety. The work conditions exacerbated her anxiety which led to migraines and agoraphobia. The company asked her to go on unpaid...
No Tax Impediments To A WBD/PARA Deal
December 21, 2023 - Bulletin Print Report
In April 2022, a "Reverse Morris Trust," ("RMT"), transaction was completed in which AT&T spun-off a subsidiary, "SpinCo," to which its Warner...
Expanded Version: Will SWX's Spin-Off Of Centuri Group Holdings, Inc. Be Delayed?
December 21, 2023 - Expanded Bulletin Print Report
Southwest Gas Holdings, Inc., ("SWX"), recently disclosedthat, in connection with thepreviously announced planned separation and spin-off of its wholly ow...
Satisfaction Of Shareholder's Obligation Creates Constructive Dividend
December 21, 2023 - Volume 17 Issue 244 Print Report
S purchased the assets of an automobile dealership in 1941. He promptly formed a corporation to operate the dealership. LE eventually acquired 40 percent of the shares of stock...
Accuracy-Related Penalty Was Timely Approved
December 21, 2023 - Bulletin Print Report
During the taxyears at issue, R was employed full time as a project manager for the University of Maryland. R also owned a vacation home in Ocean City, Maryland. During e...
Deferred Compensation Taxable By State Where Services Were Performed
December 21, 2023 - Bulletin Print Report
Taxpayer, ("TP"), resided in Indiana and worked for a company in Indiana, ("IE"), until early 2018. IE has been withholding income tax on wages it paid to T...
The Willens Deal Survey December 2023
December 20, 2023 - The Deal Survey: December 2023 Print Report
Welcome to this month's summary of deals. Full reports on some of these transactions can be found via the link in the description, or by searching the company name in our database.
FASB Proposes Updated "Induced Conversion" Guidance
December 20, 2023 - Bulletin Print Report
The Financial Accounting Standards Board, ("FASB"),has issued an "Exposure Draft" of a Proposed Accounting Standards Update, ("ASU"),e...
Taxpayer's Losses Were Not Classified As "Passive"
December 20, 2023 - Volume 17 Issue 243 Print Report
Petitioners filed a joint return for 2008 wherein they claimed a deduction for "nonpassive" losses from flowthrough entities ('S' corporations) totaling $3,80...
City Had Private Right Of Action Under The Video Service Providers Act
December 20, 2023 - Bulletin Print Report
The City filed a putative class action against Defendants,which arestreaming companies. Defendants sought dismissal because the City allegedly lacked a private righ...
Late Refund Claim "Shall Not Be Allowed"
December 20, 2023 - Bulletin Print Report
On or around March 27, 2015, L, from his home in New York, made an online purchase of a loader located in Iowa. L paid $35,000 for the loader. He paid Iowa sales tax at a rate...
Value Is Best Established Through A Contemporary Arm's-Length Sale
December 19, 2023 - Bulletin Print Report
In 2007, Lost Lake purchased land in the Town of Forestburgh, Sullivan County, New York, to develop as one of the DD resort communities. Lost Lake subdivided the property into...
DOOR Proposes A Taxable Reverse Triangular Merger
December 19, 2023 - Bulletin Print Report
Masonite International, Inc., ("DOOR"), a corporation organized under the laws of British Columbia, and PGT Innovations, Inc., a domestic corporation, ("PGTI&quo...
Exemption Application Was Not Timely Delivered
December 19, 2023 - Bulletin Print Report
Petitioner owns real property that it claims qualified for an "EMPP" tax exemption. Petitioner attempted to file Form 5278 with respondent. Respondent did not receive...
Conveyance Of Note Is Not A "Payment"
December 19, 2023 - Volume 17 Issue 242 Print Report
On December 1, 1971, petitioner, (P), executed a pledge in the stated sum of $25,000 to the 1972 JWFA. On December 30, 1971, P executed a non-interest bearing negotiable promis...
Settlement Payment Contained Unstated Interest
December 18, 2023 - Bulletin Print Report
On December 14, 1999, the DBT had owned 16.4 percent of the common stock of BPSI. On December 16, 1999, BPSI filed with the Pennsylvania Department of State articles of merger...
Sale Recast To Ignore "Conduits"
December 18, 2023 - Volume 17 Issue 241 Print Report
SS conveyed a partial interest in her gas station to her children shortly before she and they joined in selling it to Texaco, Inc. (TI). SS and each of her children reported a...
Capital Gain Of Non-Resident Found To Be Massachusetts Source Income
December 18, 2023 - Bulletin Print Report
On April 16, 2016, APPs filed their 2015 Form 1...which indicated April 30, 2015 as their last date of Massachusetts, ("M"), residency. The Commissioner issued a Noti...
Contiguous Property Qualified For "CAUV" Classification
December 18, 2023 - Bulletin Print Report
The subject property is a single parcel consisting of 36.72 acres. W purchased the subject property in 2017. Shortly thereafter, it began clear-cutting a portion, approximately...
Nicotine Pouches And Lozenges Are Not "Tobacco Products"
December 15, 2023 - Bulletin Print Report
R sells oral nicotine products in the form of nicotine pouches and nicotine lozenges under the brand name "V" throughout Texas. R began paying the Cigars and Tobacco...
Without Continuity Of Interest There Is No Reorganization
December 15, 2023 - Volume 17 Issue 240 Print Report
The question is whether the transfer by CSC to DOC was a reorganization or a mere sale which subjected the transferor to a tax on any profit realized. &n...
Informal Claim For Refund Was Defective
December 15, 2023 - Bulletin Print Report
From 2001 to 2005, D was the shareholder of DEI. D was charged with tax evasion. D pleaded guilty and was ordered to pay $1,633,471.00 in restitution to the I.R.S. for underpay...
Inactive Shareholder Found To Be A "Responsible Person"
December 15, 2023 - Bulletin Print Report
The Division issued the notices to petitioner as a "responsible person" of the corporation because petitioner was listed as the incorporator, sole shareholder, and li...
Local Connecticut Personal Property Tax Was "Internally Consistent"
December 14, 2023 - Bulletin Print Report
HN is the sole member of Alico, LLC, ("A"), a Massachusetts, ("M") company. A owned two vehicles for use in its business. The vehicles are driven daily by t...
Gain From Sale Of Management Contract Is Ordinary Income
December 14, 2023 - Volume 17 Issue 239 Print Report
The taxpayers were engaged in the management of mutual insurance companies. The management contract here involved existed between the taxpayers and GSLIC. The management activi...
Biometric Identification Service Not Subject To Sales And Use Tax
December 14, 2023 - Bulletin Print Report
TP is in the business of verifying the identity of individuals so that the individuals may pass through airport security check points more quickly. To sign up for TP's &quo...
"Party Platters" Are Prepared Foods
December 14, 2023 - Bulletin Print Report
Petitioner, ("P"), is the owner of TD. TD sold a variety of prepared foods as well as deli meat and other non-prepared foods. The auditor determined that P failed to...
The Minority Shareholders Of SIRI Will Be Governed By Section 351
December 13, 2023 - Bulletin Print Report
The merger agreement pursuant to which Sirius XM Holdings, Inc. ("SIRI"), will become a wholly owned subsidiary of Liberty Sirius XM Holdings, Inc., ("SplitCo),...
"Outbound" Transfer Checks All Of The "Helen Of Troy" Boxes
December 13, 2023 - Bulletin Print Report
Star Bulk Carriers, ("SBLK"), a corporation organized under the laws of the Marshall Islands, and Eagle Bulk Shipping, Inc., ("EGLE"), a domestic 'C'...
The Lending Of Money Does Not Constitute The "Sale Of Property"
December 13, 2023 - Volume 17 Issue 238 Print Report
At the end of 1992, Petitioner, (P), opened a credit card account with MBNA. P used the credit card to pay hospital bills and receive cash advances during periods of unemployme...
Citigroup Allowed A Tax Deduction For Its Basis In Its "RAP" Rights
December 13, 2023 - Bulletin Print Report
G, C's predecessor, was induced by federal regulators to absorb a failing Savings & Loan bank, B. B, not surprisingly, had liabilities exceeding assets of nearly $800 m...
Only "SSI" Payments Are Excluded From Gross Income
December 13, 2023 - Bulletin Print Report
Respondent determined a deficiency in petitioner's federal income tax for taxable year 2019, ("year in issue"). The sole issue for decision is whether payments of...
Sirius XM And Liberty Media Are Finally Parting Company
December 12, 2023 - Bulletin Print Report
The separation of Sirius XM Holdings, Inc., ("SIRI"), from Liberty Media Corporation, ("LMC"), frequently rumored, has now become, or will by Q3 of 2024, a...
Expanded Version: FUN Will Cease To Be An MLP
December 12, 2023 - Expanded Bulletin Print Report
Cedar Fair, L.P., ("FUN"), an owner and operator of amusement parks,was one the last of the so-called "electing 1987 partnerships," (in fact, the only...
Operation Of Parking Garage Taints Otherwise Exempt Rental Income
December 12, 2023 - Volume 17 Issue 237 Print Report
Petitioner, (P), a New York partnership, owned and operated a rental apartment building located at 800 Fifth Avenue in New York City. The building contained 208 rental apartmen...
The Tax Injunction Act And The Comity Principle Preclude Jurisdiction
December 12, 2023 - Bulletin Print Report
B is non-resident of the City of St. Louis, (the "City"), who was denied City earnings tax refunds for days he worked outside the City during tax years 2021 and 2022....
Rental Activity Was Per Se Passive
December 12, 2023 - Bulletin Print Report
The tax court did not err in finding that R materially participated in Rogerson Aircraft Equipment Group, ("RAEG"), in 2014, 2015, and 2016 under section 469(h) of th...
Tax Complications Dominate The Donation Of A Partnership Interest
December 11, 2023 - Bulletin Print Report
Many taxpayers, as the end of the year rapidly approaches, turn their attention to two things: loss selling and charitable contributions. One of the most durable of tax savvy m...
Secretary Exercises Authority To Exclude Items From REIT's Gross Income
December 11, 2023 - Volume 17 Issue 236 Print Report
TP elected to be treated as a REIT. TP's primary business is to own, manage, acquire and dispose of timberland properties. TP conducts substantially all of its business thr...
Court Rejects Claim Of Perpetual Exemption From Property Taxes
December 11, 2023 - Bulletin Print Report
For nearly 40 years, HC granted J an annual exemption from ad valorem property taxes. In 2019, however, the County reversed course. It denied J an exemption. It also assessed b...
Inaccessibility Of Filing Location Extends Petition Filing Date
December 11, 2023 - Bulletin Print Report
The Commissioner issued a notice of deficiency to S for 2017 and 2018. The notice was dated August 25, 2022. The Commissioner sent it by certified mail on August 26, 2022. The...
Sale Of Stock Prior To Split-Off Not A "Device"
December 8, 2023 - Volume 17 Issue 235 Print Report
A corporation has been engaged in the M business and in the B business for more than five years. All of the stock was owned by a husband and wife and their son. The husband own...
Statute Of Repose Applied To Negligent Injury To Economic Interests
December 8, 2023 - Bulletin Print Report
Under ORS 12.115(1), "in no event shall any action for negligent injury to person or property of another be commenced more than 10 years from the date o...
An "Early Distribution" Tax Was Properly Assessed
December 8, 2023 - Bulletin Print Report
The Internal Revenue Service, (the "I.R.S."), selected petitioner's 2019 federal income tax return for examination. The I.R.S. determined that petitioner had rece...
Certain "Pre-populated" Tips Are Subject To Sales Tax
December 8, 2023 - Bulletin Print Report
Colorado imposes a sales tax on the "amount paid" for food or drink served or furnished in or by dining establishments and other like places of business where food or...
When A Partnership Terminates
December 7, 2023 - Volume 17 Issue 234 Print Report
Each limited liability company (LLC) is classified as a partnership. Neither holds any "unrealized receivables" or "substantially appreciated inventory," an...
Primary Use Of Property Is Private
December 7, 2023 - Bulletin Print Report
The subject property comprises two parcels that are 97 acres in total. The Clark County Park District, (the "District"), acquired title to the subject property in Mar...
Statute Imbued With An Implied "Savings Clause"
December 7, 2023 - Bulletin Print Report
In September 2016, L purchased an apartment complex. The Assessor increased the property's assessment to...for 2016, 2017, and 2018. L initiated appeals. Because neither pa...
Attorney Found To Be A "Judgment Lien Creditor"
December 7, 2023 - Bulletin Print Report
This action is a dispute over whether the government's I.R.S. tax lien or the plaintiff's judgment against an Estate has a priority with respect to the assets of the Es...
The "Convenience Of The Employer" Test Was Not Suspended For COVID
December 6, 2023 - Bulletin Print Report
Petitioners are residents of Connecticut, ("CT"). Z is a professor of law at the Cardozo School of Law of Yeshiva University in Manhattan, ("C"). Petitioner...
Pre-Redemption Sale Of Stock Did Not Invoke Sec. 302(c)(2)(B)(ii)
December 6, 2023 - Volume 17 Issue 233 Print Report
X is a corporation engaged in an ongoing business, whose shares were held by A and A's child, B. A owned 500 shares and B owned 100 shares, 80 of which B inherited from his...
Taxable Transfers Between Group Members Are Disregarded
December 6, 2023 - Bulletin Print Report
Parent is a Country Z publicly traded corporation with subsidiaries in multiple countries engaged in the Parent Business and the Controlled Business.Controlled is a newly...
Beverages Qualified For Reduced Food Sales Tax Rate
December 6, 2023 - Bulletin Print Report
Applicant is a manufacturer and retailer of non-alcoholic beverages in ready-to-drink twelve ounce aluminum cans to individuals. Approximately 75 percent to 80 percent of Appli...
SWX's New Strategy For Centuri Holdings Facilitated By Its Copious NOL
December 5, 2023 - Bulletin Print Report
Southwest Gas Holdings, Inc., ("SWX"), is committed to disposing of its subsidiary, Centuri Holdings, Inc., ("CH"). That much is clear.What remains&nb...
Hedge Fund Executive Denied New York Resident Tax Credits
December 5, 2023 - Bulletin Print Report
Petitioner, ("P" or "G"), was domiciled in New York State and City during 2014 and 2015. G received a schedule K-1 as a partner of Hildene Holding Company,...
Spin-Off Had Immediate Business Reason
December 5, 2023 - Volume 17 Issue 232 Print Report
X owned an automobile dealership. Its franchise was in the name of A who managed X and owned 53 percent of its stock. A was 70 years of age.  ...
A Cumulative Conveyance Was Found To Be A Transfer Of Ownership
December 5, 2023 - Bulletin Print Report
Petitioner is a corporation that owns a "family cottage" for its shareholders' use. DB and WB, husband and wife, owned 24 percent of petitioner's shares befor...
Fines Not Subject To Sales Tax
December 4, 2023 - Volume 17 Issue 231 Print Report
Petitioner, (P), is an exempt organization under (New York) Tax Law Sec. 1116(a)(4) and is registered as such with the Department of Taxation and Finance for sales and use tax...
Gain On Sale Of Goodwill Is "Apportioned"
December 4, 2023 - Bulletin Print Report
C is an 'S' corporation. Until 2015, C was owned in part by a non-resident named CA. That year, CA and her co-owner sold their stock in C to an unrelated third party. T...
Green Card Holder Not Subject To FBAR Penalties
December 4, 2023 - Bulletin Print Report
A was born in Mexico and has lived there all his life. The As own a condominium in Florida which is used for vacation and relaxation. In 1984, A applied for lawful permanent re...
A Recent Arm's-Length Sale Is The Best Evidence Of True Value
December 4, 2023 - Bulletin Print Report
The subject property consists of three parcels. The subject property was valued at $6,791,000. The Board of Education, ("BOE"),filed a complaint seeking an incr...
Is This A Wash Sale?
December 1, 2023 - Bulletin Print Report
A taxpayer owns stock in Ycorporation which has, unfortunately, declined in price during the period the taxpayer has owned the stock. Thus, the taxpayer is "sitting&...
Spin-Off Of "Cross Financed" Rental Business Does Not Qualify
December 1, 2023 - Volume 17 Issue 230 Print Report
M was engaged in two businesses, operating a hotel and renting improved real estate, both residential and commercial. The hotel business was started upon organization in 1920 a...
"True Object" Of A Mixed Transaction Determines Its Taxability
December 1, 2023 - Bulletin Print Report
The company conducts business as a "travel experience enterprise." The company conducts travel business through two legal entities, CA and CB. CA and CB are sister co...
The State Was Not The "Owner" Of Collected Sales Taxes
December 1, 2023 - Bulletin Print Report
R started a business in 2014. Between August 2015 and December 2016, R's business filed sales tax returns without paying any sales tax. R's business closed in 2017. The...
NAPA's Merger Is Structured For Tax Efficiency
November 30, 2023 - Bulletin Print Report
The DuckhornPortfolio, Inc., ("NAPA"), recently announced that it has entered into a definitive agreement to acquire Sonoma-Cutrer Vineyards,Inc., ("SCV&qu...
Fee For Use Of Golf Simulator Not Taxable
November 30, 2023 - Volume 17 Issue 229 Print Report
Petitioner, (P), is the owner and operator of a golf simulator business. The golf simulator facility has four golf simulators, a bar, and limited food service....
Qualified Research Excludes "Funded" Projects
November 30, 2023 - Bulletin Print Report
C, an 'S' corporation, claimed tax credits for 2013 pursuant to section 41 of the Code. The Code provides a tax credit for qualified research activities. To constitute...
Severance Tax Is Based On "Gross Value" Of Natural Resources Severed
November 30, 2023 - Bulletin Print Report
E is a natural gas producer. At each well, E recovers an impure mixture of various liquid and gaseous natural resources, together with water and sediment. E uses its own equipm...
Functional Analysis Test Applied To State Law Limited Partners
November 29, 2023 - Bulletin Print Report
SorobanCapital Partners LP, ("S"), is a limited partnership composed of a general partner and limited partners. It reported as net earnings from self-employment...
PG Awarded Research Credits
November 29, 2023 - Volume 17 Issue 228 Print Report
Procter & Gamble, (PG), has long engaged in extensive research activities. As a result of these activities, PG claimed research tax credits under Sec. 41 of the I...
Premature Commencement Of Article 7 Proceeding Dismissed
November 29, 2023 - Bulletin Print Report
On September 19, 2016, petitioner, ("P"), the record owner of the "property" commenced this proceeding pursuant to Real Property Tax Law, ("RPTL")...
Concurrent Jurisdiction Over Appeals Found
November 29, 2023 - Bulletin Print Report
C owns non-residential property with an equalized municipal valuation of $1 million or greater in the City... C requested a partial abatement of its 2021 property taxes, which...
State And Local Taxes Not Aggregated For Commerce Clause Purposes
November 28, 2023 - Bulletin Print Report
During the relevant years, APP resided in Philadelphia, (the "City"), but worked exclusively in Wilmington, Delaware. Thus, she was subject to four income taxes (and...
Transfer Of Property To An LLC Not A "Retail Sale"
November 28, 2023 - Volume 17 Issue 227 Print Report
A joint venture operating in California plans to partially liquidate by distributing certain tangible personal property to each of its "50/50 partners."...
Citibank Had A Physical Presence In Washington
November 28, 2023 - Bulletin Print Report
Citibank, ("C") does not have a place of business or any employees or property within Washington, ("W"). However, C generated, during the assessment period,...
"As Applied" Challenge To Utah's "AVL" Failed
November 28, 2023 - Bulletin Print Report
The property tax obligations of certain businesses--including airlines--are centrally assessed by the Utah State Tax Commission, (the "Commission"). Before 2017, the...
Overlapping Ownership Rule Saves An RMT Transaction
November 27, 2023 - Bulletin Print Report
DP, a Country A publicly traded corporation, is the ultimate parent of a worldwide group of corporations. DP appears to be Flex LTD. The Distributing Group consists of Business...
Withholding Tax Imposed On Guaranteed Payments
November 27, 2023 - Bulletin Print Report
Taxpayer, ("TP"),is an Indiana limited liability partnership. TP files Form 1065 and Form IT-65, respectively. For the non-resident partners, TP files composite...
The Willens Deal Survey November 2023
November 27, 2023 - The Deal Survey: November 2023 Print Report
Welcome to this month's summary of deals. Full reports on some of these transactions can be found via the link in the description, or by searching the company name in our database.
Continuity Of Interest And Long-Term Bonds
November 27, 2023 - Volume 17 Issue 226 Print Report
The Gulf Coast Irrigation Company was the owner of irrigation properties. Petitioner was the sole shareholder of the Irrigation Company. A contract called for a conveyance of a...
Data Entry Error Precludes Property Tax Discount
November 27, 2023 - Bulletin Print Report
For tax year 2020-21, the Assessor offered an online option to pay property tax bills...using ACH.The Assessor used a vendor known as FIS as part of the online payment pr...
Characterizing False Claims Act Settlement Payments
November 24, 2023 - Volume 17 Issue 225 Print Report
F operates dialysis centers in the U.S. and throughout the world. Between 1993 and 1995, whistleblowers brought a series of civil actions against F under the False Claims Act (...
Recordation Tax Need Not Be Paid On "Holdbacks"
November 24, 2023 - Bulletin Print Report
Presidential, ("P"), is a company that conducts closings for real estate sales. A portion of the funding secured by the deed of trust, ("DOT") was not distr...
Employee Not Entitled To Any Premium Tax Credit
November 24, 2023 - Bulletin Print Report
In November 2013, petitioner was both unemployed and without health insurance. He applied for health insurance through the Federal Health Insurance Marketplace, (the "Mark...
Facilities Were Not "Processing Facilities"
November 24, 2023 - Bulletin Print Report
The crux of thisdispute is where C's natural gas production stops and processing begins. Costs incurred in the production of...natural gas are not deductible...but co...
Claims Processing Services Were Rendered In Maine
November 22, 2023 - Bulletin Print Report
ESI and its affiliated entities were engaged in a unitary business that involved business activity within and outside Maine. ES sold prescription drugs by mail order delivery a...
Recapitalization Paves The Way For A Prompt Spin-Off
November 22, 2023 - Volume 17 Issue 224 Print Report
M, a domestic corporation engaged in the hardware business, owned all of the common stock and 12 percent of the preferred stock of N, a domestic corporation engaged in the appl...
Resale Exemption From Use Tax Found Applicable
November 22, 2023 - Bulletin Print Report
During the relevant tax period, S was wholly owned by a subsidiary of Wal-Mart Stores, Inc. S purchased Equipment for resale to other Wal-Mart subsidiaries that own and operate...
Johnson Controls' Disclosures Were Adequate
November 22, 2023 - Bulletin Print Report
In January 2016, at the very height of the "inversion" craze, Johnson Controls, Inc., ("J"), entered into an agreement to merge with Tyco International, plc...
Section 965 Income In Not A "Deemed" Dividend
November 21, 2023 - Bulletin Print Report
PCC's foreign subsidiaries had earnings generated outside the U.S. In 2017, the U.S. deemed such income from 1986 to 2017 repatriated into the U.S. under the "TCJA.&qu...
Is Twenty-Seven Percent "Good" Continuity Of Interest?
November 21, 2023 - Bulletin Print Report
Crescent Point Energy Corporation, ("CPG"), announced that it has entered into an "arrangement agreement" to acquire Hammerhead Energy, Inc., ("HHRS&qu...
Presumption Of Validity Not Rebutted By Zillow.com Data
November 21, 2023 - Bulletin Print Report
P and his wife owned residential real property in V which they purchased in 2012 for $270,000. The property was reassessed in 2021 at $303,800 and P filed a grievance challengi...
Taxpayer Found To Have Acquired Equitable Title To Property
November 21, 2023 - Volume 17 Issue 223 Print Report
In 1993, petitioners moved from VBV to RMV. After reading about a house for sale in the local newspaper, petitioners contacted the seller, GF. GF offered to finance the sale wi...
Partnership's Taxable Income Was "ECI"
November 20, 2023 - Bulletin Print Report
YAG was formed as a Delaware limited partnership on January 2, 2001. In early 2007, YAG registered under the laws of the Cayman Islands. Until January 14, 2007, YA was YAG'...
Capital Contribution Not Described In Sec. 382(l)(1)
November 20, 2023 - Volume 17 Issue 222 Print Report
T has been engaged in Business A since 1985. Part of T's business is the development of products the commercial sale of which is subject to regulatory approval; T has not y...
Aramark Does Not Act As An Agent
November 20, 2023 - Bulletin Print Report
Aramark Corporation, ("A"), provides its services based on two types of contracts: (1) profit and loss and (2) management. Under a profit and loss contract, A operate...
Real Property Was "Substantially Ready" For Its Intended Use
November 20, 2023 - Bulletin Print Report
Plaintiff, ("P"), was the owner of real property and improvements, (the "subject property"). The subject property is improved with a four-story brick apartm...
Failure To Provide Written Statement Renders "NOFD" Void
November 17, 2023 - Bulletin Print Report
The Department is a state agency. On September 27, 2017, the Department issued a notice of proposed assessment to Ingram Micro, Inc., ("I"). I requested a review of t...
Liberty Media Corporation Retires Debt Tax-Efficiently
November 17, 2023 - Bulletin Print Report
Recently, Liberty Media Corporation, ("LMC"), and a newly formed corporation, Atlanta Braves Holdings, Inc., ("ABH"), engaged in a reorganization, of the &#...
Home Office Not A Regular Place Of Business
November 17, 2023 - Volume 17 Issue 221 Print Report
Petitioner, (P), maintained a law office at 222 Madison Avenue, New York, NY during the 1983 tax year. P contended that during the 1983 tax year he maintained law offices both...
Post-Spin Equity Awards Excluded From Section 355(a)(1)(D) Calculus
November 17, 2023 - Bulletin Print Report
D is the parent of a worldwide group...engaged in Business A and Business B. D has outstanding D Debt, including the Revolver Amount. Subsidiary, ("S"), has outstandi...
Inadvertent REIT Election Treated As Not Made
November 16, 2023 - Bulletin Print Report
TP was formed on Date 2 as a State limited liability company. TP's sole member, LP, is a subsidiary partnership of a private equity real estate fund, (the "Fund")...
Adoption Tax Credit Denied
November 16, 2023 - Volume 17 Issue 220 Print Report
Under Sec. 23 of the Internal Revenue Code, a taxpayer undertaking the "adoption of a child with special needs which becomes final during a taxable year" is eligible...
The Department Of Environmental Protection Cannot Impose A Tax
November 16, 2023 - Bulletin Print Report
The Petition for Review, ("PFR"), relates to Pennsylvania's participation in the Regional Greenhouse Gas Initiative, (the "RGGI"), based on regulations...
Sham Transaction Did Not Produce A Deductible Loss
November 16, 2023 - Bulletin Print Report
In October 2002, APP incorporated F. During the 2004, 2005, and 2006 tax years,F reported net losses. Between June 4, 2003, and December 20, 2007, APP made numerous trans...
DISH Network And EchoStar Change The "Direction" Of Their Merger
November 15, 2023 - Bulletin Print Report
In August, 2023 DISH Network Corporation, ("D") entered into an Agreement and Plan of Merger, (the "Original Merger Agreement"), with EchoStar Corporation,...
Ascertaining The Date Of "Disposition" Of Stock
November 15, 2023 - Volume 17 Issue 219 Print Report
On July 1, 1958, the taxpayer purchased 100 shares of common stock. On October 1, 1958, the taxpayer entered into an agreement for the sale of this stock at a loss; and to deli...
Taxpayer Entitled To Lower "Refinancing" Rate
November 15, 2023 - Bulletin Print Report
An individual purchased four condominium units by four separate deeds. Each unit was encumbered by a different deed of trust with different lenders. The four units were transfe...
Tax Court Affirms That 90-Day Petition Deadline Is Jurisdictional
November 15, 2023 - Bulletin Print Report
On March 21, 2022, respondent issued to petitioner a notice of deficiency for tax year 2018. The notice indicated that the "last day to petition (the) Tax Court" was...
United Therapeutics Joins The List Of CVR Issuers
November 14, 2023 - Bulletin Print Report
When the parties to an acquisition are uncertain about the value of the target, it may be best to delay paying a portion of the merger consideration until such time, if ever, t...
Taxpayer Cannot Deduct Interest Paid On Another's Indebtedness
November 14, 2023 - Volume 17 Issue 218 Print Report
The taxpayers were majority shareholders in a cattle ranch known as RV. On June 19, 1965, RV borrowed $1.5 million from T at an interest rate of 10 percent per annum....
I.R.S. Tax Claims Accorded Priority Status
November 14, 2023 - Bulletin Print Report
On April 9, 2021, S filed their chapter 7 bankruptcy petition. On July 13, 2021, the I.R.S. filed their proof of claim, ("Initial Proof of Claim"). The I.R.S. stated...
Catering Services Are Subject To Sales Tax
November 14, 2023 - Bulletin Print Report
APP is a restaurant and tenant of a hotel. In addition to its restaurant services,APP also provides catering services to the hotel. The hotel contracts with banquet group...
RPT Special Dividend Should Be Free Of Withholding Tax
November 13, 2023 - Bulletin Print Report
The acquisition of RPT Realty, ("RPT"), by Kimco Realty Corporation, ("KIM"), each a real estate investment trust, (a "REIT"), seems to be proceed...
None Of The Income Allocated To KO Was "Blocked"
November 13, 2023 - Bulletin Print Report
The Coca-Cola Company, ("TCCC"), is the ultimate parent of a group of entities, ("Company"). The Internal Revenue Service made adjustments that increased pe...
Distribution Motivated By Mixed Purposes Satisfies Sec. 355
November 13, 2023 - Volume 17 Issue 217 Print Report
X has been engaged in the farming business for more than five years. The stock is owned 25 percent each by Father, Mother, Son, and Daughter. Although Father and Mother partici...
Fusion Targets Are Not Subject To Sales Tax
November 13, 2023 - Bulletin Print Report
TP operates the "Facility" that has on its premises: a storefront, two pistol shooting ranges, one rifle shooting range, a classroom.... The shooting ranges are only...
Internal Sales Valued By Reference To Comparable External Sales
November 10, 2023 - Bulletin Print Report
M is an asphalt manufacturer with production facilities in Washington. M's manufacturing division provides asphalt both to its construction division ("internal sales&q...
"Customer/Competitor" Business Purpose Supports A Split-Off
November 10, 2023 - Volume 17 Issue 216 Print Report
Y is engaged in the business of commercial printing and has been so engaged for the past five years. Its outstanding stock consists of shares of common stock of which 15 percen...
Non-Profit Corporation Did Not Distribute Income or Profit
November 10, 2023 - Bulletin Print Report
Plaintiff, ("P"), paid $7,500 to become a member of the Club, a non-profit organization formed under N.J.S.A. 15A-2.1. His membership payment was memorialized in a &q...
Collection Notice Violated The "Automatic Stay"
November 10, 2023 - Bulletin Print Report
B filed a chapter 13 petition for relief on March 19, 2021. On November 1, 2021, Treasury sent B a notice attempting to collect a pre-petition claim. Through the notice, Treasu...
Reverse Morris Trust Features A Downstream Merger
November 9, 2023 - Bulletin Print Report
In most cases, the second "leg"of a "Reverse Morris Trust" transaction involves the merger of spincowith and into an unrelated corporation. In o...
John Malone Is Not Infallible
November 9, 2023 - Bulletin Print Report
In January 2010, Liberty Global, Inc., ("LG"), indirectly owned more than 50 percent of the voting interests in Jupiter Telecommunications Co. Ltd., ("JT"),...
Sec. 305(b) Found Inapplicable
November 9, 2023 - Volume 17 Issue 215 Print Report
On Date K, SHA was one of three unrelated individuals that collectively owned all of the stock of T. T was a State X corporation whose outstanding stock consisted of one class...
Home Office Deductions Not Permitted
November 9, 2023 - Bulletin Print Report
P is an IT professional. P was employed by SRA OSS. In addition to working for SRA OSS, P purportedly conducted an activity that he reported as a business activity on Schedule...
Tender Offer And Merger Treated As An Integrated Acquisition Of Assets
November 8, 2023 - Bulletin Print Report
Cadeler A/S, a public limited company incorporated under the laws of Denmark, is offering to exchangefor each outstanding share of Eneti, Inc., a corporation incorporated...
Trustees Can "Manage" The Affairs Of A REIT
November 8, 2023 - Volume 17 Issue 214 Print Report
Advice has been requested whether trustees of an unincorporated trust can contract for the construction of an office building on land owned by the trust without adversely affec...
Non-Owning Spouse Has No Interest In Marital Property
November 8, 2023 - Bulletin Print Report
R owes the United States $327,419.11 for unpaid income taxes, interest, and penalties. Multiple federal liens attached to his property interests, including his interest in the...
MCL 211.78t Is Both Exclusive And Constitutional
November 8, 2023 - Bulletin Print Report
Respondents owned real properties and fell behind on their property taxes. Petitioner foreclosed their properties effective March 31, 2021. None of the respondents tim...
Party To A Reorganization
November 7, 2023 - Volume 17 Issue 213 Print Report
X corporation changed its name and issued new stock certificates to its shareholders in exchange for the X stock held by them prior to X corporation's change in name. The t...
Cash Boot Purge Includes Normal Quarterly Dividends
November 7, 2023 - Bulletin Print Report
D, which may well be Johnson & Johnson, is the parent of a worldwide group of entities, (the "DWG"). D is also the common parent of an affiliated group that files...
Certain Clothing And Footwear Is Exempt From Sales Tax
November 7, 2023 - Bulletin Print Report
Petitioner, ("P"), is a retailer of party goods... P is owned by PCH, a publicly traded retail chain. A statement of proposed audit changes was issued to P, "SSO...
Penalty Approval After Formal Communication Found Timely
November 7, 2023 - Bulletin Print Report
An examination of P's returns for 2011 and 2012 was conducted by a tax compliance officer, ("TCO"). On June 2, 2014, the TCO issued P letter 692 ("15-day let...
Extension Of Variable Prepaid Forward Contracts Is A Taxable Event
November 6, 2023 - Bulletin Print Report
In "EI," we considered whether decedent realized capital gain by executing amendments extending two variable prepaid forward contracts, ("VPFCs"), in 2008....
Option Treated As Exercised
November 6, 2023 - Volume 17 Issue 212 Print Report
Prior to Date A, TP owned 15,000 shares of M stock. On Date A and Date B, TP was granted 10,000 Incentive Stock Options (ISOs) and 30,000 ISOs for M stock, respectively. The ex...
Accumulated Depreciation Includes The Cost Of Removal
November 6, 2023 - Bulletin Print Report
S owns an interstate electric transmission line. S files an annual valuation report with the Arizona Department of Revenue, (the "Department"), and maintains its book...
Reliance On Agent Does Not Excuse Late e-Filing
November 6, 2023 - Bulletin Print Report
L hired CPA KW to prepare and file his federal income tax returns for 2014-2016. Treasury Regulations deemed KW a "specified tax return preparer," requiring him to fi...
Grants Excluded From Gross Income
November 3, 2023 - Volume 17 Issue 211 Print Report
State established the Grant Program, run by Department,for the purpose of securing job-creating economic development opportunities....
An 'S' Election Is Property Of The Estate
November 3, 2023 - Bulletin Print Report
O founded V in 1993. O elected that it be treated as an 'S' corporation. V filed for chapter 11 bankruptcy. V contracted to sell its assets. The sale price was $370 mil...
Transfer Of Property At Husband's Death Was Exempt From Death Taxes
November 3, 2023 - Bulletin Print Report
The Ws created the Trust on June 26, 2007. The Trust assets included the Ws' personal residence and 5,938 shares of stock. The Ws previously owned the residence as tenants...
Military Contractor Engaged In "Sales For Resale"
November 3, 2023 - Bulletin Print Report
O produces specialty vehicles. The U.S. government regularly contracts with O to design and manufacture vehicles for the U.S. military. O routinely purchases both direct and in...
FUN Will Cease To Be An MLP
November 2, 2023 - Bulletin Print Report
When Are Special Foods and Beverages Medical Care Expenses?
November 2, 2023 - Volume 17 Issue 210 Print Report
On Date 2, the taxpayer, (TP), had a physician advise adouble mastectomy in orderto address medical conditions "X" and "Y". On Date 3,...
Loss Corporation Permitted To Make A Late Section 382(l)(5)(G) Election
November 2, 2023 - Bulletin Print Report
For the taxable year endingDate 1, Parent and its subsidiaries, which included Sub 1 and Sub 2, elected to file a consolidated federal income return, (the "Parent Gr...
Taxpayer Did Not Dwell At His Purported Principal Residence
November 2, 2023 - Bulletin Print Report
P claimed a principal residence exemption, ("PRE"), on the H property in 2005 and enjoyed the exemption for several years. At some point in 2012, P began caring for h...
Data Migration And Management Is A Qualified Trade Or Business
November 2, 2023 - Bulletin Print Report
C was formed in Year 1 and elected classification as an association to be taxed as a 'C' corporation. On Date 1, C elected to be classified as an 'S' corporatio...
PEAK And DOC Forgo A Basis Step-Up
November 1, 2023 - Bulletin Print Report
HealthpeakProperties, Inc., ("PEAK"), and Physicians Realty Trust, ("DOC"), are each real estate investment trusts, ("REITs"), within the me...
"Capital Asset" Is Narrowly Construed
November 1, 2023 - Volume 17 Issue 209 Print Report
TP owned Vessel, a fishing vessel. In Year 2, TP sold Vessel to Transferee. TP retained ownership of Vessel's "catch history" and license limitation per...
Claims Barred By Sovereign Immunity
November 1, 2023 - Bulletin Print Report
The Development Authority of DeKalb County, (the "Authority"), is the title owner for a piece of real property, (the "property"). The Authority leased the p...
Escheat Provisions Found To Be Unconstitutional
November 1, 2023 - Bulletin Print Report
At the time of his death in 2006, D owned a parcel of property in Richmond, Virginia. Payment of local property taxes on the parcel ceased after his death. The City filed an ac...
O And SRC Propose A Tax-Free Reorganization
October 31, 2023 - Bulletin Print Report
Realty Income Corporation, ("O"), and Spirit Realty Capital, Inc., ("SRC"), are each real estate investment trusts, ("REITs"), within the meaning...
Citigroup Must Pay Sales Tax On Purchase Of Bicycle Equipment
October 31, 2023 - Volume 17 Issue 208 Print Report
P has entered a contract with the NYCDOT to operate a bicycle rental program (Program). P is Citigroup. The Program provides Users with access to bikes located at hundreds of s...
"MA" Organization Not Exempt From Illinois Income Tax
October 31, 2023 - Bulletin Print Report
Y requested information regarding the taxability of Medicare Title XVIII premiums under Illinois law. Section 201(a) of the Illinois Income Tax Act, ("IITA"), imposes...
Settlement Payment For Tort Damages Not Deductible As "COGS"
October 31, 2023 - Bulletin Print Report
AnadarkoPetroleum Corporation, ("A"), an oil and natural gas production company, partnered with British Petroleum, ("BP")...through a joint operating...
"Purge" Allows For 'B' Reorganization
October 30, 2023 - Volume 17 Issue 207 Print Report
X is engaged in the banking business. Y is a holding company. Y holds "d%" of the stock of X. Y proposes to acquire sufficient shares of X so that it will hold at lea...
The Equitable Tolling Principle Does Not Apply To Section 6511
October 30, 2023 - Bulletin Print Report
Mr. W initiated this action on January 13, 2020. He alleged that he owed an outstanding tax debt, but also that the I.R.S. had "seized" his tax refunds for 2001 and 2...
No Relief Where Excessive "Household Income" Found
October 30, 2023 - Bulletin Print Report
Utah Code Ann. section 59-2-103(2) provides for the assessment of property as follows: "All tangible taxable property located within the state shall be assessed and taxed...
New Jersey's Litter Fee Applies To Manufacturers
October 30, 2023 - Bulletin Print Report
C manufactures litter-generating packaged meat products which it distributes throughout the country. C stores and distributes meat products through its Swedesboro, New Jersey f...
Who Owns A Lottery Ticket?
October 27, 2023 - Volume 17 Issue 206 Print Report
A and B are individual taxpayers who have been married to each other since date (a). Throughout their marriage, they have filed joint returns, held their property in joint owne...
Netflix And Its Competitors Do Not Offer "Video Service"
October 27, 2023 - Bulletin Print Report
Illinois requires anyone who wants to provide "cable or video service" to obtain permission from state or local authorities, and pay a fee, as a condition of using pu...
Government Cannot Obtain Summary Judgment On Willfulness Dispute
October 27, 2023 - Bulletin Print Report
K was born in Japan. K obtained a U.S. Permanent Resident Card. K does not speak English. In 2014, the Japanese Tax Authority informed the I.R.S. that K received certain income...
Novartis Sets Sandoz Free
October 27, 2023 - Bulletin Print Report
Recently, Novartis AG completed the separation of its subsidiary, Sandoz Group AG. The business purpose asserted for the spin-off was the ubiquitous "fit and focus,"...
Will SWX's Spin-Off Of Centuri Group Holdings, Inc. Be Delayed?
October 26, 2023 - Bulletin Print Report
...
Redeemed Shareholder Not Barred From Attribution Waiver
October 26, 2023 - Volume 17 Issue 205 Print Report
X is a domestic corporation engaged in an ongoing business. It has 1,000 shares of voting common stock outstanding which are held as follows: A (548), B-D (39 each), E (333), a...
A Form 1099-C Does Not Discharge Debt
October 26, 2023 - Bulletin Print Report
Debtor, ("D"), filed a chapter 13 petition on July 8, 2022. CF filed an unsecured claim on July 29, 2022. D objected to CF's claim. D argues that "the debt h...
Retroactive Change To Terms Of Trust Saves Transfer Tax
October 26, 2023 - Bulletin Print Report
On September 4, 2018, Grantors, ("Gs"),created Trust. It is a revocable living trust. During their lifetimes, G are entitled to a quarterly distribution of &quo...
Research Credits Are Subject To The Section 38(c) Limitation
October 25, 2023 - Bulletin Print Report
JI, an 'S' corporation, reported research credits under section 41 to its shareholders for 2013 through 2016. Shareholders J and K claimed their share of research credi...
Parent's Cancellation of Sub's Debt Does Not Cause CODI
October 25, 2023 - Volume 17 Issue 204 Print Report
P, a foreign corporation, owned all of the stock of S, a domestic corporation. S conducted Business A. In its business, S maintained an inventory of component parts....
Public Auction That Excluded Potential Bidders Ruled Invalid
October 25, 2023 - Bulletin Print Report
The provisions of the Code governing the procedure for conducting a tax sale begin with the requirement for the Department to provide notice to the property owner. Payment to t...
The Willens Deal Survey October 2023
October 24, 2023 - The Deal Survey: October 2023 Print Report
Welcome to this month's summary of deals. Full reports on some of these transactions can be found via the link in the description, or by searching the company name in our database.
Warrants For Stock: Recapitalization Or Taxable Exchange?
October 24, 2023 - Bulletin Print Report
Allego N.V., ("ALLG," or the "company"), recently announced that it has commenced an "exchange offer," (the "Offer"), and companion &quo...
Restrictions Imposed On NOL Carrybacks In N.Y. Are Proper
October 24, 2023 - Volume 17 Issue 203 Print Report
Because P sustained net operating losses (NOLs) of $110,833 in 1973 and $235,226 in 1974, he filed a claim for both Federal and New York refunds for income taxes paid in 1971,...
Getting To The Essence Of A Canadian "Butterfly" Transaction
October 24, 2023 - Bulletin Print Report
D is a publicly traded corporation engaged in non-pharmaceutical Business A and non-pharmaceutical Business B, which includes conducting research and development activities for...
Installed Cranes Are Real Property
October 24, 2023 - Bulletin Print Report
TP operated a marine cargo terminal and was in the business of providing marine cargo handling services at the Port of Virginia. The Department audited TP and assessed use tax...
No Withholding Tax Imposed On Redemption Distributions
October 23, 2023 - Bulletin Print Report
One of the more interesting deals in the market is Vista Outdoor, Inc.'s proposal for disposing of its Sporting Products business and returning to its shareholdersthe...
"Place Of Amusement" Found
October 23, 2023 - Volume 17 Issue 202 Print Report
Article 28 of the (New York State) Tax Law requires a sales tax to be paid on any "admission charge" for use of any "place of amusement." The taxpayer (TP)...
Valuation Errors In Centrally Assessed Property Cannot Be Corrected
October 23, 2023 - Bulletin Print Report
After persuading the department that the valuation methodology that it hadused to assess taxpayer's property in 2020-21 had been flawed, taxpayer asked the department...
"SOH" Transfer Application Was Not Timely Filed
October 23, 2023 - Bulletin Print Report
This case involves Florida's "SOH" assessment cap. In 2008, voters approved a separate constitutional amendment that permits a homeowner to transfer the benefit a...
Sonny Corleone's Tax Problem
October 20, 2023 - Bulletin Print Report
This case concerns two IRAs that James Caan, ("C"), held at UBS. One of the IRAs held a partnership interest ("PAI") in a hedge fund ("PAF"). It w...
Refund Of Subscription Price Of Rights
October 20, 2023 - Volume 17 Issue 201 Print Report
The outstanding stock of X consists of a single class of common stock. In 1973, the directors of X distributed to its common shareholders transferable rights to subscribe, on o...
Certificate Holder Not A Person Entitled To Surplus Proceeds
October 20, 2023 - Bulletin Print Report
Every March, the City of Baltimore, Marylandissues a list of residential properties with attached liens that will become available at the tax sale in May. When its bids a...
Hyatt Hotels Cannot Avail Itself Of The Trust Fund Doctrine Exception
October 20, 2023 - Bulletin Print Report
Hyatt Hotels Corporation was the U.S. common parent for the Hyatt group of companies. Petitioner owns, leases, manages, and franchises hotel, residential, and timeshare propert...
Trust NOL Expires Upon Termination
October 19, 2023 - Volume 17 Issue 200 Print Report
GM executed a trust agreement on January 1, 2002 that created the MCLT. The corpus of the trust consisted of part ownership in several real estate partnerships. The trust was f...
VMW Shareholders Must Elect The Form Of Merger Consideration
October 19, 2023 - Bulletin Print Report
Broadcom, Inc., ("AVGO"), and VMware, Inc., ("VMW"), announced that the deadline for VMW's shareholders to elect the form of merger consideration they w...
BAM To Separate A Portion Of Its Asset Management Business
October 19, 2023 - Bulletin Print Report
Brookfield Asset Management recentlyannounced the details of its ambitiousplan to distribute to its Class A and Class B shareholdersall of the stock of a newl...
WHLR Replaces Equity With Debt
October 19, 2023 - Bulletin Print Report
Wheeler Real Estate Investment Trust, Inc., ("WHLR"), is offering to exchange shares of its Series D Cumulative Convertible Preferred Stock for six percent Subordinat...
No Tax Relief Granted For Repayment Of Overpaid Wages
October 18, 2023 - Bulletin Print Report
Under Utah Code Ann. section 59-10-104(1), "a tax is imposed on the state taxable income of a resident individual." State taxable income means the resident individual...
Real Property Correctly Classified Through An Article 78 Proceeding
October 18, 2023 - Bulletin Print Report
In this article 78 proceeding for declaratory judgment and other relief the petitioner seeks to reverse the administrative decision of the DOF,upheld on appeal by the Com...
Bargain Sale Did Not Produce Deductible Loss
October 18, 2023 - Bulletin Print Report
In 2006, S purchased three retail buildings as investments. In 2017, S transferred the "E" property to the City and claimed a loss relating to that property. S stated...
Sec. 83(b) Election Properly Disregarded
October 18, 2023 - Volume 17 Issue 199 Print Report
On March 26, 1990, the Board of Directors of C voted to transfer 300 shares of stock to Employees (Es) subject to restrictions that constitute "a substantial risk of forfe...
Floating Boat Docks Are Tangible Personal Property
October 17, 2023 - Bulletin Print Report
Applicant has rented floating dock space from a Lessor for ten years, with the lease renewal and billing cycle being done annually. The Lessor has charged the Applicant sales t...
Related Party Loss From Sale Of Inventory Disallowed
October 17, 2023 - Bulletin Print Report
APP, a California resident, was the sole owner and president of TM, a California-based 'S' corporation that developed and manufactured custom boats. In 2016, prior to d...
Sales Tax and Donuts
October 17, 2023 - Volume 17 Issue 198 Print Report
Krispy Kreme Doughnut Corporation, (KK), sought review of a decision that it must collect sales tax at the four percent rate (rather than at the one percent rate) on...
Exemption Began On First Day Of Real Property Tax Year
October 16, 2023 - Bulletin Print Report
Petitioners, ("Ps"), are the owners of an 18-acre parcel of real property. On March 4, 2004, the Town adopted a resolution whereby Ps were granted a real property tax...
Triangular Merger And Liquidation Recast As A 'C' Reorganization
October 16, 2023 - Volume 17 Issue 197 Print Report
P, whose stock is widely held and publicly traded, is a manufacturing corporation organized under the laws of State A. T, whose stock is closely held, is a manufacturing corpor...
Tractor Did Not Satisfy The "Double-Direct" Test
October 16, 2023 - Bulletin Print Report
TP, an Indiana farmer, purchased a Ford 5000 tractor, ("Tractor"), at auction. TP paid sales tax on the Tractor. TP requested a refund of the tax paid, stating that t...
Nine West Failed To Meet Its Evidentiary Burden
October 16, 2023 - Bulletin Print Report
Nine West, ("NW"), is a global designer, marketer, and wholesaler of apparel... NW paid CAT on receipts for all goods shipped to distribution centers in Ohio, includi...
Purchaser Of Foreign Goods Was Not The "Importer"
October 13, 2023 - Bulletin Print Report
Plaintiff is a wholesaler and retailer of truck parts and tires. From 2012 to 2017, TT purchased tires wholesale from Chinese manufacturers. The parties stipulate that, "A...
Series Of Steps Collapsed Into An 'F' Reorganization
October 13, 2023 - Bulletin Print Report
Parent, a Country A corporation, is the foreign parent of a worldwide group, (the "Parent Group"). Parent has a single class of voting common stock outstanding that i...
Period For Requesting A "CDP" Hearing Is Subject To "Equitable Tolling"
October 13, 2023 - Bulletin Print Report
When the I.R.S. files a notice of federal tax lien, ("NFTL"), on a taxpayer's property to collect an unpaid assessment, the Code gives the taxpayer the right to a...
Recomputing A Worthless Stock Deduction
October 13, 2023 - Volume 17 Issue 196 Print Report
P (or TP) is an Indiana corporation engaged in the manufacture of precision instruments. M was an Illinois corporation engaged in a business related in character to that conduc...
Exxon and Pioneer Reach Historic Agreement
October 12, 2023 - Bulletin Print Report
It did not take long for the rumors to become reality. Exxon Mobil Corporation ("Exxon"),and Pioneer Natural Resources, ("Pioneer"), jointly announced...
Carry Back Of NOL To Resident Taxable Year Permitted
October 12, 2023 - Volume 17 Issue 195 Print Report
Petitioner, (P), was a resident of New York State (NYS) during taxable years 1993-1995. P intends to change his residence during 1996 at which time he will be considered a nonr...
I.R.S. Extends Wash Sale Relief To All Money Market Funds
October 12, 2023 - Bulletin Print Report
An investment company that is registered under the Investment Company Act of 1940that meets the requirements of Rule 2a-7 under the 1940 Act is permitted to hold itself o...
Tours Conducted For Amusement Are Subject To Sales Tax
October 12, 2023 - Bulletin Print Report
SC charges customers for rides in horse-drawn carriages in downtown Nashville, Tennessee. SC is licensed and regulated by the Commission. SC charges its customers based on time...
Sale Of Scientific Books By A Museum Produces UBTI
October 11, 2023 - Volume 17 Issue 194 Print Report
The organization maintains and operates an art museum devoted to the exhibition of American folk art. It operates a shop in the museum that offers for sale to the general publi...
Electronically Delivered Software Not Subject To Sales Tax
October 11, 2023 - Bulletin Print Report
TMRsubmitted a timely sales tax refund claim. The Department issued a Notice of Denial Letter. TMR is an affiliate of T-Mobile, ("TM"), and acts as a procuremen...
OTCs Are Technology Companies
October 11, 2023 - Bulletin Print Report
The Online Travel Companies, ("OTCs"), are technology companies that operate websites that enable travelers to research destinations...and request reservations... The...
Restored Pay And Allowances Not Excludible From Gross Income
October 11, 2023 - Bulletin Print Report
The issue is whether forfeited military pay that is subsequently restored to a service member pursuant to section 875 of the Uniform Code of Military Justice when a court-marti...
BMY Will Use CVRs In Connection With Its Acquisition Of MRTX
October 10, 2023 - Bulletin Print Report
Bristol-Myers Squibb, ("BMY"), and Mirati Therapeutics, Inc., ("MRTX"), announced that they have entered into a definitive merger agreement pursuant to ...
DISH Network Scores A Refund Of Penalties And Interest
October 10, 2023 - Bulletin Print Report
Washington imposes a "B&O" tax on every person that has a substantial nexus with this state...for the act or privilege of engaging in business activities. The tax...
Federal NOLs Cannot Offset Connecticut AGI
October 10, 2023 - Volume 17 Issue 193 Print Report
In 2008, the plaintiffs reported a net operating loss (NOL) of $66,044,546. As a result of the NOL, the plaintiffs sought to reduce their 2003 federal tax liability to zero and...
Taxation Of "Motor Vehicles" Is Capped
October 10, 2023 - Bulletin Print Report
In Jack's Custom Cycles, Inc. v. South Carolina Department of Revenue, 439 S.C. 35, 885 S.E.2d 433 (Ct. App. 2023), the Court of Appeals held that the te...
Service Provider Ineligible For Industrial Processing Exemption
October 9, 2023 - Bulletin Print Report
S describes itselfas a "precision oncology company" established to partner "with pharmaceutical companies for cancer drug development..."S state...
Food For Home Consumption Exempt From Sales Tax
October 9, 2023 - Bulletin Print Report
Company, ("C"), is a remote seller of food products and has no physical presence in Colorado, ("CO"). C does not have any retail locations. The food product...
Holidays And Holding Period
October 9, 2023 - Volume 17 Issue 192 Print Report
The taxpayer purchased a security from a registered security exchange on December 24, 1968. He made payment for and received delivery of the security on December 30, 1968, and...
Economic Substance Doctrine Precludes Alcohol Fuel Mixture Credits
October 9, 2023 - Bulletin Print Report
The "VEETC" (or the "alcohol fuel mixture credit") was available pursuant to section 6426(b) until the end of 2011 for taxpayers who created qualifying fuel...
AMC May Proceed With Its Restructuring Plan
October 6, 2023 - Bulletin Print Report
AMC Entertainment Holdings, Inc., ("AMC"), is now poised to implement its controversialrestructuring plan since, on August 11, 2023, the court finally approved...
Tour Bus Not A "Place Of Amusement"
October 6, 2023 - Volume 17 Issue 191 Print Report
Petitioner, (P), intends to provide bus sightseeing tours in midtown Manhattan. The tour is narrated by two guides, runs 75 minutes in duration, and follows a 4.2 mile route. T...
Habitual Late Filer Had Statutory Penalty Reduced
October 6, 2023 - Bulletin Print Report
Taxpayer is appealing the penalty assessed by the Division under Utah Code Ann. section 59-2-207, for the late filing of the annual property tax statement for the 2022 tax year...
Claims Court Incorrectly Conflated Two Tax Doctrines
October 6, 2023 - Bulletin Print Report
GSS Holdings (Liberty), Inc., ("GSS"),serves as the managing member and owner of Liberty Street Funding LLC, ("LS"). In September 2006, LS purchased a...
Underpayment Penalty Falls In The Face Of Substantial Authority
October 5, 2023 - Bulletin Print Report
TP's Schedule C described his business as "farmer/produce retail." TP's business in 2015 involved the sale of marijuana products. After audit, the Department...
Consent Payment Does Not Result In "Significant Modification"
October 5, 2023 - Volume 17 Issue 190 Print Report
TP is a publicly traded and widely held corporation. S is wholly-owned by TP and is an entity disregarded as separate from TP. S has "a" series of publicly-traded exc...
Writ Of Mandamus Denied
October 5, 2023 - Bulletin Print Report
O is a school district. In June 2023, it began the process to place a new operating levy on the November 2023 general-election ballot. R.C. 5705.03 establishes the process that...
Tardy Administrative Claim For Refund Bars Lawsuit
October 5, 2023 - Bulletin Print Report
This case concerns W's 2016 and 2018 income taxes, Those taxes were one of the subjects of W's Chapter 13 bankruptcy proceedings in the U.S. Bankruptcy Court. The I.R.S...
Is LLY's PNT Acquisition A Business Combination Or Asset Acquisition?
October 4, 2023 - Bulletin Print Report
Eli Lilly and Company, ("LLY") and POINT BiopharmaGlobal, Inc., ("PNT"), announced a definitive agreement for LLY to acquire PNT, a "radiopharmac...
Redemption Of Non-Voting Common Stock Found To Be A Distribution
October 4, 2023 - Volume 17 Issue 189 Print Report
Corporation has outstanding 150 shares of voting common stock and 1,657.8 shares of non-voting common stock. A, the President and Chairman of the Board of Directors, directly o...
"Taking" Does Not Occur When Condemnation Action Is Filed
October 4, 2023 - Bulletin Print Report
At issue in this case is whether the former owners of property that was taken by the City through eminent domain are entitled to a refund of the property taxes they paid betwee...
Taxpayer Successfully Changed His Domicile
October 4, 2023 - Bulletin Print Report
Taxpayer, ("TP"), asserts thathe was not required to file Louisiana, ("LA"), income tax returns or pay LA income tax for the Tax Years because he was...
Pledging Option Stock As Collateral
October 3, 2023 - Volume 17 Issue 188 Print Report
Company has extended Incentive Stock Options to its employees. Following exercise of an option, the employee may enter into a "Margin Account Agreement" (the Agreemen...
Theft By False Pretenses Not Established
October 3, 2023 - Bulletin Print Report
J began investing in the real estate activities of H in 2001 and continued through approximately the end of 2011. J invested through two negotiated unsecured promissory notes,...
Only Duress Can Discredit An Arm's-Length Sale
October 3, 2023 - Bulletin Print Report
The Fiscal Officer valued the subjectproperty, an automobile dealership, at $988,900 for tax year 2019. The BOE filed a complaint seeking a value of $2,450,000 with the B...
Audiometers Are Not Hearing Aids
October 3, 2023 - Bulletin Print Report
Applicant uses items, referred to as "audiometers," in its business to "test patients for possible hearing aids." Sales of hearing aids and hearing aid supp...
Starbucks Doubleshot Energy Drink Not Subject To Sales Tax
October 2, 2023 - Volume 17 Issue 187 Print Report
Petitioner's stores sell Starbucks Doubleshot Energy (SDE) coffee drinks in cans for off-premises consumption. Labels submitted by Petitioner for the drinks listed as the p...
Lease Revenues From "COAMs" Exempt From Sales Tax
October 2, 2023 - Bulletin Print Report
F owns and operates an amusement facility in Georgia that contains an arcade room... Some of the equipment used at F's facility...are classified as "coin operated amus...
Candy Is Taxed At The "Food" Rate
October 2, 2023 - Bulletin Print Report
Applicant is a business that sells various in-house made fudge, in-house made chocolate, and various other types of individual pieces of candy. It was represented that "th...
Debtor Only Entitled To "Surplus Proceeds" From Foreclosed Property
October 2, 2023 - Bulletin Print Report
After Mr. Freed, ("F"), fell behind approximately $1,100 on his property taxes, T, acting on behalf of the County, and pursuant to Michigan's "GPTA," fo...
Converting An MLP Into A REIT
September 29, 2023 - Volume 17 Issue 186 Print Report
PS is a publicly traded limited partnership that owns and operates Property. PS owns the stock of two subsidiaries, Sub 1 and Sub 2. To improve access to capital markets and fo...
Capitalized Interest Is Not Deductible
September 29, 2023 - Bulletin Print Report
SSE sells commercial, industrial, and residential electric services. H owned 96 percent of the stock and W owned the remaining four percent. H chose to have SSE be a 'C'...
Certain Penalties Not Subject To Supervisory Approval Requirement
September 29, 2023 - Bulletin Print Report
Petitioner, Piper Trucking & Leasing, LLC, is a single-member limited liability company. Employers are required to file Form W-2...and Form W-3 with the Social Security Adm...
Regulation Curing Constitutional Defect Applied Retroactively
September 29, 2023 - Bulletin Print Report
Lorillard Tobacco Company, ("LTC"), claimed a 100 percent exception to the add-back of New Jersey, ("NJ"), allocated royalties it paid to its wholly owned s...
Conversion Did Not Result In A New Obligor On The Debt Instrument
September 28, 2023 - Bulletin Print Report
LLC 1 is engaged in Business A. LLC 1 is wholly owned by LLC 2. LLC 2 is wholly owned by LLC 3. LLC 3 is "s%" owned by LLC 4, with the remaining interest held by a th...
Acquiring Control In A "Permissible" Manner
September 28, 2023 - Volume 17 Issue 185 Print Report
X and Y were corporations engaged in manufacturing. A and B, individuals, each owned 50 percent of the stock of X. A owned 25 percent of the stock of Y and X owned the remainin...
Equipment To Be Used In A Data Center Is Exempt From Sales Tax
September 28, 2023 - Bulletin Print Report
In 2014, TP began purchasing equipment to establish a data center in Virginia, ("V"). The purchased equipment was delivered to a storage facility...but not to the sit...
The Ultimate Destination Determines The Situs Of Receipts
September 28, 2023 - Bulletin Print Report
V is a global manufacturer of oleo-chemicals and personal care products. It manufactures bar soap, deodorant, and similar items at its plant in Kansas. V has no property or emp...
Sales of Property Between "Related Parties"
September 27, 2023 - Volume 17 Issue 184 Print Report
The total stock issued by petitioner, W.A. Drake, Inc., (WD), was 4,380 shares. WD had acquired 1,176 1/3 shares which were held in its treasury. The remaining 3,203...
Deferred Fees Sourced Using The "BAP" For The Years Earned
September 27, 2023 - Bulletin Print Report
In 2017, petitioners were non-resident partners of Aristeia Holdings, L.P., ("A"). A owned 100 percent of AristeiaCapital, LLC, ("AC"), a disregarded...
Botox Found Subject To Use Tax
September 27, 2023 - Bulletin Print Report
Applicant is a medical spa that offers "cosmetic injectionsThe cosmetic products are purchased from out of state and are injected by registered nurses or nurse pract...
Resident Credits Are Limited To Taxes Imposed On Income
September 27, 2023 - Bulletin Print Report
TPs were Virginia, ("V"), residents, and the husband, ("H"), was a shareholder in an 'S' corporation, ("SSC"), that paid corporate franchi...
Liberty Media's Proposed "Business Combination" With SIRI
September 26, 2023 - Bulletin Print Report
In November 2021, Liberty Media Corporation, ("LMC"), acquired sufficient additional stock in Sirius XM Holdings, Inc., ("SIRI"), to place LMC "in cont...
Gain From Sale Of Real Estate Treated As "IRD"
September 26, 2023 - Volume 17 Issue 183 Print Report
A, an individual, entered into a real estate sales contract containing a clause making the contract cancellable by either party if the borrower did not obtain a mortgage commit...
Taxpayer Was Not A "Bona Fide Non-Resident"
September 26, 2023 - Bulletin Print Report
Taxpayer, ("TP"), purchased a truck in 2018 and another truck in 2019 from a Rhode Island, ("RI") dealer and both times used a Massachusetts address. TP fil...
Connections With Virginia Did Not Prevent Domicile Change
September 26, 2023 - Bulletin Print Report
The Department of Revenue, (the "Department),determined that the taxpayer, ("TP"), was taxable as a part-year resident of Virginia, ("V") and iss...
Compression System Was Not Farm Machinery And Equipment
September 26, 2023 - Bulletin Print Report
Taxpayer, ("TP"), is an Oregon corporation engagedin the business of compressing large bales, consisting of straw, into smaller bales using a "Compression...
The Deal Survey September 2023
September 22, 2023 - The Deal Survey: September 2023 Print Report
Welcome to this month's summary of deals. Full reports on some of these transactions can be found via the link in the description, or by searching the company name in our database.
"Proportional" Payments Of Compensation Was A Disguised Dividend
September 22, 2023 - Bulletin Print Report
The Vs formed K, a C corporation, in 2003. On February 13, 2012, K sold its assets to a third party for a total sales price of $5.1 million. The buyer issued two promissory not...
Social Security Benefits Are Not An "Internal-Revenue Tax"
September 22, 2023 - Bulletin Print Report
S held the position of I.R.S. Senior Appraiser beginning on July 10, 2006. S transferred from Connecticut to Hawaii. On September 16, 2011, C, S's supervisor, received an a...
Sec. 1341 Applies To "Arrowsmith" Payments
September 22, 2023 - Volume 17 Issue 182 Print Report
A, an individual, owned 75 percent of the outstanding stock of X. X owned all of the stock of three domestic corporations. In 1976, X adopted a plan of liquidation and pursuant...
The Section 6511 Limitations Periods Are Jurisdictional
September 22, 2023 - Bulletin Print Report
On August 16, 2010, the I.R.S. prepared a substitute income tax return for Plaintiffs for the tax period ending December 31, 2008. The return resulted in an assessment of taxes...
Income From Disposition Of Property Not Treated As "IRD"
September 21, 2023 - Volume 17 Issue 181 Print Report
B, A's father, died testate on "X." During B's lifetime, B was a professional artist. At B's death, B owned a number of the paintings that B had created....
Sanitization Of Textiles Constitutes "Processing"
September 21, 2023 - Bulletin Print Report
A operates industrial facilities in Tennessee. A is in the business of leasing hygienically-clean textiles to customers for a single use. Some are new and some are used. When A...
Remedial Actions Survive The Death Of A Party
September 21, 2023 - Bulletin Print Report
After G passed away in July 2003, his wife, L, was the sole beneficial owner of the "Swiss Account." She passed away in 2021. The parties agree that she failed to tim...
Interest On A Deficiency Runs From Due Date Of Return
September 21, 2023 - Bulletin Print Report
On April 13, 2018, petitioner filed an electronic request for an extension of time within which to file her New York State personal income tax return for the tax year 2017. The...
Loss On Sale Of Bonds Not Precluded By Sec. 1091
September 20, 2023 - Volume 17 Issue 180 Print Report
Y would like to sell 98 U.S. Treasury 7 1/2 percent bonds and purchase, on the same day. 98 U.S. Treasury 8 3/8 percent bonds. The U.S. Tre...
Asset Reorganizations Implicate The Disposition-Payment Rule
September 20, 2023 - Bulletin Print Report
In 2011, TBLtransferred intangible property to an affiliated foreign corporation. The transfer occurred in the context of a reorganization. The tax treatment of TBL's...
Tax Court Petition Date Could Not Be Extended
September 20, 2023 - Bulletin Print Report
On May 23, 2022, the I.R.S. sent petitioners, by certified mail, a notice of deficiency for tax year 2019. The notice advised petitioners that they had 90 days from the date of...
Sourcing A Mutual Fund Service Provider's Receipts
September 20, 2023 - Bulletin Print Report
APP is an investment management company headquartered in Colorado. APP provides services to mutual funds. In accordance with Reg. Sec. 25137-14, APP assigned the gross receipts...
GPRE Takes A Page From MMP's "Rollup" Playbook
September 19, 2023 - Bulletin Print Report
Green Plains, Inc., ("GPRE"), owns an approximately49 percent limited partner interest and a two percent general partner interest in a publicly traded partnersh...
PENN Entertainment's Payments To ESPN Should All Be Tax-Deductible
September 19, 2023 - Bulletin Print Report
PENN Entertainment, Inc., ("PENN"), recently announced that it hadentered into an exclusive U.S. online sports bettingagreement, referred to as the "...
Husband And Wife Were Not "Living Apart"
September 19, 2023 - Volume 17 Issue 179 Print Report
Throughout 1997, Petitioner, (P), was married to MC, although the couple was "emotionally estranged." Nevertheless, P and MC both resided in the same residence (the M...
Instructional Classes Are Not Subject To Sales Tax
September 19, 2023 - Bulletin Print Report
Applicant, ("APP"), is a bakery that makes various food items, including decorative cookies. On occasion, APP will host cookie decorating classes. These classes take...
The Postmark Determines The Timeliness Of A Refund Claim
September 19, 2023 - Bulletin Print Report
T alleges the following: "On April 15, 2022, I mailed my 2018 tax return for the year ending December 31, 2018 to the defendant by certified mail. I never received my refu...
Palmer Applies To Redemption/Sale Of "ROFR" Stock
September 18, 2023 - Volume 17 Issue 178 Print Report
X is a retired executive officer of C. X was a participant in C's executive stock purchase plan (the Plan). X has entered into 14 different stock restriction agreements in...
"ESBTs" Can Carry Over NOLs
September 18, 2023 - Bulletin Print Report
An 'S' corporation incurred a net operating loss, ("NOL"), that it passed through to its sole shareholder, an electing small business trust, ("ESBT"...
Capital Loss Induced Refund Request Was Timely Filed
September 18, 2023 - Bulletin Print Report
Taxpayer, ("TP"), is an out-of-state corporation. TP conducts business in Indiana. TP submitted an amended 2017 tax return calling for a refund of income tax. The Dep...
Section 404A Plans Are Not "Qualified Retirement Plans"
September 18, 2023 - Bulletin Print Report
G filed for Chapter 7 bankruptcy on May 11, 2021. G claimed an exemption for the Fund. The Fund is a Registered Retirement Savings Plan, ("RRSP"), organized under Can...
Transfer Of Legal Title Not A "Disposition" Of Option Stock
September 15, 2023 - Volume 17 Issue 177 Print Report
Following the exercise by an employee of an Incentive Stock Option, (ISO), such employee may enter into a "street name arrangement" with a brokerage firm....
Post-Production Expenses Are Not A Factor In Valuation
September 15, 2023 - Bulletin Print Report
Antero Resources Corporation,("A"),asks us to return to the issues we considered in Steager v. Consol. Energy, Inc., 242 W.Va. 209 (201...
Target Granted An Extension To Make A "Safe Harbor" Election
September 15, 2023 - Bulletin Print Report
TP, a publicly held corporation, entered into a merger agreement dated Date 4. TP had no majority shareholder. TP was acquired in a reverse triangularmerger with Merger S...
"D&O" Insurance Proceeds Excluded From A REIT's Gross Income
September 15, 2023 - Bulletin Print Report
TP is a real estate investment trust, ("REIT"). P is a publicly traded REIT which owns an "a"% indirect interest in TP through OP. On Date 2, C and P entere...
TNET Raises The Possibility Of Constructive Dividends
September 14, 2023 - Bulletin Print Report
TriNet Group, Inc., ("TNET"), is engaging in a massive, nearly $1 billion, stock repurchase which has some unusual features, most notablyfrom a federal income t...
Informal Claims for Refund
September 14, 2023 - Volume 17 Issue 176 Print Report
During 2005, petitioners sold real property located in California that resulted in a capital gain of $425,330, while they were N.Y. residents. &...
"Development Rights" Are Real Property
September 14, 2023 - Bulletin Print Report
TP is a limited partnership. TP owns Property 1, located in City A, State Z, through one of its disregarded entities, DE 1. Property 1 has been held for productive use in a tra...
Failure To Provide Sufficient Notice Upends A Tax Sale
September 14, 2023 - Bulletin Print Report
W, a New Jersey resident,is the record owner of a residential property located in Pennsylvania. W owed delinquent taxes for tax year 2019. On June 26, 2021, the Bureau se...
Smurfit Kappa And WestRock Propose A Business Combination
September 13, 2023 - Bulletin Print Report
The boards of directors of paper manufacturersSmurfit Kappa Group plc, ("S"), and WestRock Company, ("W"), recently announced the signing of a definit...
Involuntary Conversion By Destruction And Condemnation
September 13, 2023 - Volume 17 Issue 175 Print Report
The taxpayer owned improved real estate that it used in its trade or business in City X. Dangerous chemicals were released in the city where the taxpayer's property was loc...
Threshold Rejection Of Whistleblower's Cannot Be Reviewed
September 13, 2023 - Bulletin Print Report
On February 25, 2020, petitioner, ("P"), filed with the WBO Form 211. P alleged that Targets had engaged in money laundering through real estate transactions. On June...
No Credit Permitted For Taxes Paid By Another Consumer
September 13, 2023 - Bulletin Print Report
In 2013, PCM contracted with the Daimler Group for the construction of a data center in New Albany, Ohio. In 2016, after construction was complete, the tax commissioner commenc...
A Merger In Which Each Constituent Serves As The "Acquirer"
September 12, 2023 - Bulletin Print Report
Bank of California, Inc., ("BANC"), and PacWest Bancorp, ("PACW"), two West Coast stalwarts who have been punishedin the wake of the Silicon Valley Ba...
SJM's Stock Will Be Taxable To TWNK's Shareholders
September 12, 2023 - Bulletin Print Report
Hostess Brands, Inc., ("TWNK"), announced that it has entered into a definitive agreement with the JM Smucker Company, ("SJM"), in connection with which the...
Taxpayer Involuntarily Disposed Of Option Stock
September 12, 2023 - Volume 17 Issue 174 Print Report
In June 1973, X granted an option to purchase shares of its common stock to the taxpayer who was one of its employees. The option satisfied the qualified stock option requireme...
The "SCDF" Was Not A Component Of "Sales Price"
September 12, 2023 - Bulletin Print Report
J sold NGL it produced from gas wells to EP under the terms of the Purchase Agreement. Gas from wells operating prior to June 1, 2012, was classified as "Base Production;&...
Tax Sale Found To Be Invalid
September 11, 2023 - Bulletin Print Report
On October 1, 2015, the County assessed the property in the name of "LW," the property's owner at that time. Three months later, LW conveyed the property to C, wh...
Accrual Delayed By A Condition Subsequent
September 11, 2023 - Volume 17 Issue 173 Print Report
TP is a multiple-employer VEBA formed by P Corporation, (P), in Year 1. T is a simple trust operating as a welfare benefit fund and was formed by P in Year 2....
Insurance Policy Covered Opioid Costs
September 11, 2023 - Bulletin Print Report
MD is a wholesale distributor of pharmaceutical drugs. C insured MD under a claims-made liability policy. The policy provides for reimbursement of defense costs and for liabili...
Non-Dealer Ineligible To Use The "Resale" Exception
September 11, 2023 - Bulletin Print Report
DK formed KC LLC to purchase, modify, and resell automobiles. DK obtained an investor, LH, to contribute to his business plan, and they began buying cars and titling them in Mo...
FASB Will Alter The Accounting For "Crypto" Assets
September 8, 2023 - Bulletin Print Report
The Financial Accounting Standards Board, ("FASB"), has reached final decisions on the controversial topic of accounting for so-called "crypto assets." It a...
DRE And Member Are Separate And Distinct Trades Or Businesses
September 8, 2023 - Volume 17 Issue 172 Print Report
LLC was previously a subsidiary of Company that converted, in Year A, to a limited liability company, whose sole member is Company. LLC has not made an election under Reg. Sec....
Exception of "No Cause Of Action" Denied
September 8, 2023 - Bulletin Print Report
The Department of Revenue, (the "Department"), claims that the Taxpayer, ("TP"), owes sales taxes on Hotel rooms and poolside cabanas furnished and rented t...
Excess Tax Sale Funds Are Personal Property
September 8, 2023 - Bulletin Print Report
On May 15, 2015, the City of Atlanta filed a demolition lien against a certain parcel of real property. The record shows that JL was the record owner of the property at the tim...
Bloomberg Article On Spin-Offs Does Not Make Any Sense
September 7, 2023 - Bulletin Print Report
We feel compelled to respond to a Bloomberg Intelligencer article in which the author speculates that the I.R.S. is preparing to "attack" and "retroactively tax&...
Dividends Indirectly Derived From Debt Financed Property Not UBTI
September 7, 2023 - Volume 17 Issue 171 Print Report
Y is a tax-exempt organization recognized under Sec. 501(c)(3) of the Code. Y intends to form a corporation in Foreign Country ("C") for the purpose of facilitating a...
Receipts From Wholesale Sales Included For "CAT" Purposes
September 7, 2023 - Bulletin Print Report
The typical transaction at issue in this case goes as follows. A customer approaches a dealer, (the "transferee dealer"), about purchasing a specific vehicle, for exa...
Intangible Assets Must Be Removed From The Taxable Value Of Realty
September 7, 2023 - Bulletin Print Report
The Westin St. Francis, ("WSF") is the third largest hotel in San Francisco. The hotel consists of two buildings on two lots. C operates the hotel pursuant to a manag...
"Operational Term Payments" Were Qualifying REIT Income
September 7, 2023 - Bulletin Print Report
TP, a real estate investment trust, ("REIT"), owns or controls timberlands. TP has entered into an agreement, (the "Agreement"), with SU under which SU pays...
TransAlta's Stock Appears To Be Taxable To U.S. Holders
September 6, 2023 - Bulletin Print Report
TransAlta Corporation, ("TAC"), owns approximately sixty percent of the outstanding stock of TransAlta Renewables, Inc., ("RNW"). Each of TAC and RNWi...
ICE And BKI Finally Close Their Deal
September 6, 2023 - Bulletin Print Report
It has taken quite a while but, finally, Intercontinental Exchange, Inc., ("ICE"), was grantedpermissionto complete its acquisition of Black Knight, Inc.,...
Reciprocal Options Do Not Cause A Present Sale
September 6, 2023 - Volume 17 Issue 170 Print Report
X is an 'S' corporation. X and A propose to enter into an agreement that provides options to both parties that, at a future date, may result in the transfer of ownershi...
REGN's CVRs Helped To Land DBTX
September 6, 2023 - Bulletin Print Report
The use of contractual contingent value rights, ("CVRs"), to bridge valuation gaps has become almost standard operating procedure in the world of health care acquisit...
Animal Vaccines Are Exempt "Drugs"
September 5, 2023 - Bulletin Print Report
This letter is in reply to your request on behalf of the Taxpayer regarding the Virginia retail sales and use tax application to certain animal vaccines. The Taxpayer requests...
FASB Seeks To Impose "Robust" Income Tax Disclosure Requirements
September 5, 2023 - Bulletin Print Report
It is virtually impossible, under the current state of income tax reporting, to determine the amount of income taxes a company actually pays during a given taxable year with re...
"Regulated Public Utility Exception" Did Not Apply
September 5, 2023 - Volume 17 Issue 169 Print Report
H and W and their three grandchildren owned all the stock in S, an 'S' corporation. For 1977 and years prior, S owned a 19.59652 percent working interest in an oil prod...
Loan Participations Were Not "Securities"
September 5, 2023 - Bulletin Print Report
M was a drug testing company. In March 2012, defendants executed a credit agreement (the "2012 Credit Agreement") providing M with a term loan and revolving loan. &qu...
UBS Made A "Bargain Purchase"
September 1, 2023 - Bulletin Print Report
It has now been several months since the closing of the historic acquisition by UBS Group AG of troubledCredit Suisse AG. Upon the closing of the transaction, each outsta...
"Additional Consideration" Spoils A 'B' Reorganization
September 1, 2023 - Volume 17 Issue 168 Print Report
A was the sole shareholder of Y, and was the guarantor on an unsecured note of Y in the principal amount of $200x issued to Z, an unrelated party, in exchange for a loan....
Amended Return Constituted A Claim For Refund
September 1, 2023 - Bulletin Print Report
Petitioner's representative, C, filed petitioner's Original 2017 Louisiana Individual Income Tax Return, (the "OR"), on June 19, 2020. The OR showed a balance...
Retirement Income Not Exempt From State Income Tax
September 1, 2023 - Bulletin Print Report
Taxpayer, ("TP"), argues that the income for the tax years at issue is from a "retirement system for retirees of the United States Government." It is undisp...
"COI" and "COBE" Found To Exist
August 31, 2023 - Volume 17 Issue 167 Print Report
T is a holding company which, through its subsidiaries, is engaged in Business P and in Business D. T has three classes of stock outstanding: Class A voting common stock owned...
Taxpayer Properly Fell Within The "Amusement" Classification
August 31, 2023 - Bulletin Print Report
Petitioner is a limited liability company that runs a jeep tour business. Petitioner's jeep tour business operates by taking customers on jeep tours in the desert surroundi...
On-Demand Air Carrier Not Eligible For Sales Tax Exemption
August 31, 2023 - Bulletin Print Report
TP is an air carrier authorized by the Federal Aviation Administration, ("FAA"),to operate...in Virginia. As a result of an audit by the Department, TP was asse...
Issuance Of Check "Moots" Refund Lawsuit
August 31, 2023 - Bulletin Print Report
J produces Tezos tokens, a form of cryptocurrency, through a process known as "staking." As J sees it, he owes taxes on the tokens only when he sells or transfers the...
Calculating A Creditor's Holding Period In Repossessed Property
August 30, 2023 - Volume 17 Issue 166 Print Report
A small group of investors, termed the LO, has leased a parcel of land to corporate taxpayer, the LE. The LO is entitled, upon the LE's default, to repossess the land and t...
Service Charges Includible In Retailer's Gross Receipts
August 30, 2023 - Bulletin Print Report
APP is engaged in the business of providing election services and/or products, including ballot administration. APP's customers contract with APP to administer elections an...
Use Restrictions Are Not Real Or Tangible Personal Property
August 30, 2023 - Bulletin Print Report
The subject property is comprised of a use restriction, a right of first refusal, and a reservation of mineral rights related to real property. C conveyed title of the land and...
Credit For Taxes Paid To California Denied
August 30, 2023 - Bulletin Print Report
The issue is whether TPs are entitled to a credit against their New Mexico taxes for taxes paid to California. TPs have income from numerous sources. TPs have rental properties...
KIM Agrees To Annex RPT
August 29, 2023 - Bulletin Print Report
Kimco Realty Corporation, ("KIM"), and RPT Realty, ("RPT"), are each real estate investment trusts, ("REITs"), for federal income tax purposes and...
Notice Of Deficiency Was Timely Issued To Joint Filers
August 29, 2023 - Bulletin Print Report
All of the Ss'tax returns from 1999 through 2003, and from 2005 through 2014, were filed as joint returns. The tax return at issue in this case is the Ss' 2004 ta...
Marketplace Facilitator Need Not Collect And Remit Use Tax
August 29, 2023 - Bulletin Print Report
Applicant, ("APP"),is a California based section 501(c)(3) non-profit organization and marketplace facilitator. APP provides a marketplace platform exclusively...
"Mind Body" Classes Subject To NYC Sales Tax
August 29, 2023 - Volume 17 Issue 165 Print Report
Petitioner, (P), operates several facilities in New York City (NYC). These facilities provide instruction in yoga as well as a variety of classes that are included as part of a...
Cook County's Lost Tax Revenues Cannot Be Recouped
August 28, 2023 - Bulletin Print Report
Cook County, ("CC"), contends that a number of banks operating in northern Illinois made credit too readily available to some borrowers, who defaulted, and then forec...
Where The "Historical" Shareholder Dissolves
August 28, 2023 - Volume 17 Issue 164 Print Report
P owned all of the stock of S for over five years during which time P has been engaged in the manufacture and sale of wire products and S has also been engaged in the active co...
Member Must Report Disregarded Entity's COD Income
August 28, 2023 - Bulletin Print Report
P was the sole member of S, a single member limited liability company. S ceased to exist in approximately May 2008. It was a disregarded entity, ("DRE"), for federal...
A State May Tax All Income Of Its Residents
August 28, 2023 - Bulletin Print Report
Taxpayers, husband and wife, filed Virginia resident tax returns for the 2018 through 2020 taxable years, claiming subtractions for distributions taken from retirement accounts...
Section 355(a) Is Not Elective
August 25, 2023 - Bulletin Print Report
Section 355(a) of the Internal Revenue Code Code provides, in pertinent part, that "If a corporation...distributes to a shareholder, with respect to its stock...solely sto...
Receiving Stock Of A Successor To The Issuer Of "CVRs"
August 25, 2023 - Volume 17 Issue 163 Print Report
FA, an FC corporation, uses the accrual method of accounting. FA wished to acquire T, the domestic common parent of a consolidated group of corporations using the accrual metho...
Property Used In A Production Activity Is Exempt From Sales & Use Tax
August 25, 2023 - Bulletin Print Report
The Court of Special Appeals ruled that Potomac Edison Co., ("PE"), processing activities were performed within the statutory definition of "production activity....
Debtor's Tax Refund "Attributed To" Refundable Credits
August 25, 2023 - Bulletin Print Report
Debtor filed his Chapter 7 bankruptcy petition on September 28, 2021. A tax refund comes from tax "payments," including refundable credits and other payments such as...
FASB Standardizes Accounting For Joint Venture Formations
August 24, 2023 - Bulletin Print Report
Accounting Standards Update, ("ASU"), 2023-25, "Business Combinations--Joint Venture Formations" (Subtopic 805-60) Recognition and Initial Measurement, fill...
The Deal Survey August 2023
August 24, 2023 - The Deal Survey: August 2023 Print Report
Welcome to this month's summary of deals. Full reports on some of these transactions can be found via the link in the description, or by searching the company name in our database.
PR And ESTE To Engage In A "Two-Party" 'A' Reorganization
August 24, 2023 - Bulletin Print Report
Permian Resources Corporation, ("PR"), and Earthstone Energy, Inc., ("ESTE"), announced that they have entered into a definitive agreement under which PR wi...
First Prong Of "All Events" Test Not Satisfied
August 24, 2023 - Volume 17 Issue 162 Print Report
GE owns supermarkets and pharmacies under the name "GE" and gas stations and convenience stores under the names "GG" and "GEE." During the years a...
FBAR Conviction Upheld On Appeal
August 24, 2023 - Bulletin Print Report
The Bank Secrecy Act requires many citizens and residents to report financial relationships and transactions with foreign banks. See 31 U.S.C. section 5314(a).Citizens an...
Taxes For Late Filed Returns Are Not Dischargeable
August 23, 2023 - Bulletin Print Report
On August 12, 2020, the Court confirmed the Debtor's plan...which she successfully completed, and on March 31, 2023, the Court entered an order granting the Debtor a discha...
When Is Deferred Compensation A "Payroll Expense?"
August 23, 2023 - Volume 17 Issue 161 Print Report
Petitioner, ("P"), inquires whether nonqualified deferred compensation earnings are considered taxable for purposes of the Metropolitan Commuter Transportation Mobili...
Tax Court Unable To Order Refund Of Overpayment
August 23, 2023 - Bulletin Print Report
Petitioner did not timely file a Federal income tax return for 2015. The I.R.S. prepared a substitute for return, ("SFR"), and, on April 5, 2021, issued petitioner a...
Trust Entitled To A Section 642(c)(1) Deduction
August 23, 2023 - Bulletin Print Report
Decedent created Trust on Date 1 and died on Date 2. Decedent owned an individual retirement account, ("IRA"), at the time of his death, which named Trust as the sole...
JNJ Announces Results of KVUE Exchange Offer
August 22, 2023 - Bulletin Print Report
Johnson & Johnson, ("JNJ"), is now poised to complete the "split-off" of its subsidiary, Kenvue, Inc., ("KVUE"). The exchange offer though whi...
Leased Apartments Not "Taxable Premises"
August 22, 2023 - Volume 17 Issue 160 Print Report
Petitioner, (P), which owns retail stores throughout the world, maintains its principal offices in New York City. It is necessary for it to call to this City, from time to time...
Student Loan Discharged In Bankruptcy
August 22, 2023 - Bulletin Print Report
In 2010 and 2011, A obtained two loans from Bank of North Dakota, ("BND"),to attend GU. A graduated with an associate degree of applied medical science in Decem...
Informal Claim For Refund Insufficient To Waive Sovereign Immunity
August 22, 2023 - Bulletin Print Report
JP created the Trust on February 26, 2002, and subsequently conveyed his home, (the "Property"), to the Trust for a term of five years. P, the son of JP, was the sole...
Disregarding Transitory Steps
August 21, 2023 - Volume 17 Issue 159 Print Report
X, a State C banking corporation, has outstanding 2,000x shares of common stock which were publicly-held. X has decided that its stock should be owned directly by a c...
Transferred Property Included In Gross Estate
August 21, 2023 - Bulletin Print Report
Decedent died on August 30, 2014. SW, Decedent's daughter, was appointed the personal representative of Decedent's estate on September 25, 2014.A Maryland estate...
COD Income Or Gain?
August 21, 2023 - Bulletin Print Report
In 2012, E was an 'S' corporation. P was the 100 percent shareholder of E. E was the sole member of the PLF entities, treated as disregarded entities. The PLF entities...
The "California Method" Strikes Again
August 21, 2023 - Bulletin Print Report
The Franchise Tax Board, ("FTB"), accepted APPs' assertion that they were part-year residents of California during the 2018 taxable year. Part-year residents are...
DINO Agrees To "Roll Up" HEP
August 18, 2023 - Bulletin Print Report
HF Sinclair Corporation, ("DINO") owns a 47 percent limited partner interest in Holly Energy Partners, L.P., ("HEP").and a non-economic general partne...
ET And CEQP To Engage In An "Assets-Over" Merger
August 18, 2023 - Bulletin Print Report
Energy Transfer L.P. ("ET"), and Crestwood Equity Partners L.P., ("CEQP"), each a publicly traded partnership, announced that the parties have entered into...
Effects Of Liquidating An "Insolvent" Subsidiary
August 18, 2023 - Volume 17 Issue 158 Print Report
P is a State X corporation the stock of which is widely held and publicly traded. FS is a Country Y corporation which was formerly engaged in retailing consumer electronic merc...
The Section 4980H Exaction Is A "Tax"
August 18, 2023 - Bulletin Print Report
The Affordable Care Act, ("ACA"), contains both an individual mandate and an employer mandate. The employer mandate requires "large employers" to give full...
Exercising Stock Option With Previously Acquired Stock
August 17, 2023 - Volume 17 Issue 157 Print Report
A corporation has both a qualified stock option plan and a nonqualified stock option plan. An employee who exercises an option granted under the nonqualified plan may pay for t...
Taxpayer Permitted To Contest Revocation Of Homestead Exemption
August 17, 2023 - Bulletin Print Report
In 2003, H purchased a home, (the "subject property"). In 2007, he applied for, and received, a homestead exemption on the subject property. Generally, an application...
Tax Credit Denied For Lack Of "Notice" And "Registration"
August 17, 2023 - Bulletin Print Report
Taxpayers, ("TPs"), claimed an overpayment for the 2013 Tax Period, in part based on their claim for the Motion Picture Investment Tax Credit, ("MPITC"). Th...
Baseball Team's Promotional Items Not Eligible For Resale Exemption
August 17, 2023 - Bulletin Print Report
P was a professional baseball team. The team's stadium is owned by City, and P rents the property from City. Texas imposes a tax upon each sale of a taxable item in this st...
FIS's Tax Problem Will Be Mitigated By "Leveraged Partnership" Technique
August 16, 2023 - Bulletin Print Report
In 2019, to much fanfare, Fidelity National Information Services, Inc., ("FIS"), acquired all of the outstanding stock of Worldpay, Inc., ("WP"). The acquis...
Luxury Box Not Used For Commercial Activity
August 16, 2023 - Volume 17 Issue 156 Print Report
Petitioner, (P), is a national accounting firm with offices in New York City. From 1974-1985, P was a party to a series of three-year agreements with the operator of Madison Sq...
Holding Company Properly Excluded From New York Combined Return
August 16, 2023 - Bulletin Print Report
LL is a publicly traded Australian corporation that conducts business operations in numerous countries. LLAH, a Delaware corporation, wholly owns a group of subsidiaries (colle...
Sales Factor Properly Used To Apportion "Tax Base"
August 16, 2023 - Bulletin Print Report
The MBTAimposed "a business income tax on every taxpayer with business activity within this state..." For companies operating in multiple jurisdictions, the MBT...
CLF And X: Forward Or Reverse Merger Proposed?
August 15, 2023 - Bulletin Print Report
Cleveland-Cliffs, Inc., ("CLF"),decided to go public with an offer it previously made exclusively to the Board of Directors of the United States Steel Corporati...
Novartis Breathes Life Into The "Open Transaction" Doctrine
August 15, 2023 - Bulletin Print Report
Companies with products and/or processes that are still in the developmental stage, and have not yet attainedcommercial viability, are notoriously difficult to value. Whe...
Recalculating Gross Profit From An Installment Sale
August 15, 2023 - Volume 17 Issue 155 Print Report
In 1969, a taxpayer sold shares of stock having an adjusted basis of $40,000 for $100,000 and elected to report his gross profit of $60,000 from the sale on the installment met...
Fracking Equipment Exempt From Sales Tax
August 15, 2023 - Bulletin Print Report
S is in the fracking business. Fracking is a process that entails pumping a pressurized mixture of...into the earth to fracture...rock formations and extract oil and gas. At is...
Rescinded Sale Does Not Interrupt Holding Period
August 14, 2023 - Volume 17 Issue 154 Print Report
Trust X (TX) acquired Farm Y (FY) on December 31, 1951. On September 9, 1974, TX sold FY to T, the trustee of TX, for a total sales price that was less than the appraised value...
Tax Court Had Jurisdiction To Review "WB's" Action
August 14, 2023 - Bulletin Print Report
Section 7623 provides for awards to individuals who supply information to the Government about third parties who have underpaid their taxes or otherwise violated the internal r...
Operated Rentals Are Subject To Sales Tax
August 14, 2023 - Bulletin Print Report
TP rents audio equipment to customers for use in concerts, festivals, meetings, and other events. TP's rentals can be categorized into two general groups: rentals of bare e...
A "Refinancing" Does Not Require The Same Borrowers
August 14, 2023 - Bulletin Print Report
An individual acquired four condominium units...by four separate deeds. Each unit was encumbered by a different deed of trust with different lenders. The four units were transf...
AVID Is A "Loss Corporation"
August 11, 2023 - Bulletin Print Report
Avid Technology, Inc., ("AVID"), is the subject of a leveraged buy-out, ("LBO"). It recently announced that it has entered into a definitive agreement to be...
Alaska Taxes Some Dividends Received By Foreign Corporations
August 11, 2023 - Volume 17 Issue 153 Print Report
Schlumberger Limited (SL) is incorporated in the Netherlands Antilles. Its only service is the management of its subsidiaries; it receives fees for this service. It also receiv...
Who Bears The Burden Of Estate Tax On Non-Probate Property?
August 11, 2023 - Bulletin Print Report
On March 12, 2018, B signed his last will and testament, (the "Will"). In his Will, B appointed S as executor of his estate. The Will bequeathed $100,000 to S. It pro...
Change Of Domicile Is "Part Of A Process"
August 11, 2023 - Bulletin Print Report
The Department of Revenue, (the "Department"), concluded that TP was taxable as a domiciliary resident of Virginia. TP appeals, contending she was a resident of State...
Asset Sale Did Not Accelerate Deferred Compensation Deductions
August 10, 2023 - Bulletin Print Report
H is a limited partnership formed in 2000 to acquire an N.B.A. franchise, the Vancouver Grizzlies, which later became the Memphis Grizzlies. In October 2012, H sold the Grizzli...
Museum's Gift Shop Sales Do Not Generate UBTI
August 10, 2023 - Volume 17 Issue 152 Print Report
Y is exempt from tax under Sec. 501(c)(3) of the Code. Y's purposes include operation of a museum and research center that provides a location to receive and display materi...
The "SRP" Is Found To Be A "Tax Measured By Income"
August 10, 2023 - Bulletin Print Report
From 2014 to 2018, the Affordable Care Act's "individual mandate" instructed most Americans to purchase health insurance. See section 5000A(a). Abstainers paid a...
Resort Considered Commercial Property
August 10, 2023 - Bulletin Print Report
The "Resort" is comprised of 109 condominium units that contain 5,688 timeshare fractional interests under the Tennessee Timeshare Act. Timeshare fractional interests...
DISH And SATS Will Become One
August 9, 2023 - Bulletin Print Report
The Ergen family has long enjoyed a controlling interest in each of DISH Network Corporation, ("DISH"), and EchoStar Corporation, ("SATS"). Approximately fo...
Trailers Not Eligible For Sales Tax Exemption
August 9, 2023 - Bulletin Print Report
B sold "trailer type vehicles" to non-Wisconsin residents, who did not use the trailers in Wisconsin. Each of the trailers was designed to be used in conjunction with...
Lack Of Employees Does Not Preclude Finding Of Active Business
August 9, 2023 - Volume 17 Issue 151 Print Report
D is an 'S' corporation. A and B each directly own "a%" of the equity ownership interests of D. The remaining "b%" of the equity ownership interests...
Refunds Belong To Working Spouse
August 9, 2023 - Bulletin Print Report
The debtor and his wife filed a joint tax return for 2022. On February 2, 2023, the debtor filed his Chapter 7 bankruptcy petition. He is the primary wage earner for the family...
Purging Sec. 306 Stock
August 8, 2023 - Volume 17 Issue 150 Print Report
X corporation (X) has outstanding Class A nonvoting common stock, Class B voting common stock, and nonvoting preferred stock. The preferred stock was limited and preferred as t...
Termination Of Insurance Policy Gave Rise To Income
August 8, 2023 - Bulletin Print Report
P resided at his home, (the "SMP"), through February 16, 2017. The SMP was left vacant until September 15, 2017. As of that date through the end of 2017, P rented the...
Resale Exception To Use Tax Not Available
August 8, 2023 - Bulletin Print Report
K was a part owner of SP, which enhanced high-performance cars and made them faster. K started a new side business that would purchase, modify, and resell automobiles. He forme...
Hot Tub/Spa Not Exempt From Gross Retail Tax
August 8, 2023 - Bulletin Print Report
Taxpayer protests the Indiana Department of Revenue's (the "Department") denial of his claim for refund of the sales tax paid on the purchase of a spa. The taxpay...
Patent Infringement Suit Legal Expenses Are Deductible
August 7, 2023 - Bulletin Print Report
The Hatch-Waxman Act, ("HWA"), established an expedited process for obtaining FDA approval to sell generic drugs. Generic manufacturers could now file an Abbreviated...
Sales Tax Was Not Overpaid
August 7, 2023 - Bulletin Print Report
Taxpayer, ("TP"), is an individual who purchased a vehicle in Indiana and paid sales tax at the time of purchase. TP'svehicle was transported to his home st...
Foreign Corporation Not Included In Kentucky Consolidated Return
August 7, 2023 - Volume 17 Issue 149 Print Report
AT&T (T) is organized under the laws of New York and has hundreds of subsidiaries across the nation. Approximately 20 were located in Kentucky (KY). The subsidiaries not lo...
Horse Farm Activity Fell Short Of A Trade Or Business
August 7, 2023 - Bulletin Print Report
The issue in this appeal involves the Department's disallowance of expenses for a horse farm that Taxpayers claimed on their Schedules F. The Department contends that the h...
Refund Of Sales Tax Denied Art Dealer
August 4, 2023 - Volume 17 Issue 148 Print Report
Petitioner, (P), is art gallery located in New York City. On or about September 9, 2003, P acquired what was purported to be a Max Ernst painting (the Painting) from GDM for th...
Basis Adjustment Attributable To "Bonus Depreciation" Was Permitted
August 4, 2023 - Bulletin Print Report
H was a partner in a partnership that placed equipment in service in 2009. Fixed date conformity, ("FDC"), additions and subtractions for bonus depreciation were clai...
Health Care Services Were "Sitused" To Ohio
August 4, 2023 - Bulletin Print Report
TRC'sprimary service is dialysis treatment and education. TRC asserted that laboratory testing services and healthcare provider services were performed out of state,...
I.R.S. Identifies "MISTs" As A "Listed Transaction"
August 4, 2023 - Bulletin Print Report
It will come as no surprise that gross income includes, among many other things,"gains from dealings in property." See section 61(a)(3) of the Code. In general,...
Senior Living Facilities Are Health Care Properties
August 3, 2023 - Volume 17 Issue 147 Print Report
TP elected to be taxed as a REIT. TP is in the business of owning and leasing senior housing and healthcare related real estate. In Year 2, TP acquired an ownership interest in...
No Assessable Leasehold Interest Was Found
August 3, 2023 - Bulletin Print Report
The subject parcel is a leasehold interest in a public parking garage which was constructed in 2016. Respondent valued the leasehold interest at $6,896,400. Respondent issued a...
CSC's Capital Loss Is Being Questioned By The I.R.S.
August 3, 2023 - Bulletin Print Report
CSC was the U.S. parent of a group of corporations that joined in the filing of a consolidated Federal income tax return. In July 2007, CSC acquired all of the stock of COV. As...
Challenge To Amended Section 6050I Is Premature
August 3, 2023 - Bulletin Print Report
Plaintiffs, ("Ps"), are regular users of crypto currency. Ps seek declaratory relief against the enforcement of section 6050I. In 2021, the Infrastructure Investment...
NEWR Will Engage In A "Parent-Subsidiary" LBO
August 2, 2023 - Bulletin Print Report
On July 31, 2023, New Relic, Inc., ("NEWR"), announced it had entered into an Agreement and Plan of Merger with Crewline Buyer, Inc., ("Parent"), and Crewli...
Sports Clubs Not Part Of Lodging Facilities
August 2, 2023 - Volume 17 Issue 146 Print Report
TP intends to elect to be taxed as a REIT. TP was formed to acquire a portfolio of hotels. TP's acquisition of the hotels will be effectuated by a contribution of the prope...
Transfer Of Ownership Found To Have Occurred
August 2, 2023 - Bulletin Print Report
In 2007, the parents formed P, a limited liability company. P's assets include two residential rental properties. In 2014, the parents assigned 100 percent of their interes...
Sales Tax Paid Twice On The Same Purchase
August 2, 2023 - Bulletin Print Report
TP is an Arkansas, ("AK"), resident who chose to purchase a car from an Indiana dealership. The dealership charged TP Indiana sales tax at TP's home state's r...
Warrants Are Securities Which Have No Principal Amount
August 1, 2023 - Bulletin Print Report
Historically, stock purchase warrants were neither "stock" nor "securities" for tax purposes. Thus, when warrants were received in a non-recognition transac...
Condominium Units To Be Combined Taxed At Lower Rate
August 1, 2023 - Volume 17 Issue 145 Print Report
Petitioners have entered into a Purchase Agreement (the Agreement) for the purchase of three adjacent condominium units (the Property) which they intend to combine into a singl...
A Tax Sale Is Not A "Judicial" Sale
August 1, 2023 - Bulletin Print Report
The United Department of Housing and Urban Development has two deeds of trust on a Missouri home. They were security for home-equity loans taken out by a couple that previously...
The Processing And Storage Of Wine Is "Agriculture"
August 1, 2023 - Bulletin Print Report
APP owns a stretch of land in TC. The majority of the property comprises 63 acres. This parcel is made up entirely of vineyards. In 2018, the TC Auditor created two new parcels...
OID Accruals Were Investment Interest
July 31, 2023 - Bulletin Print Report
Petitioner, ("P"), is an attorney. He has been involved in real estate activities for many years. IM is a limited partnership of which P was a member. XWD is a single...
Section 6213(a)'s Deadline Is Not Jurisdictional
July 31, 2023 - Bulletin Print Report
In 2015, I and D each received $8,826.30 to settle a lawsuit. The I.R.S. mailed a notice of deficiency. The I.R.S. levied on their property. The Cs filed a petition in the Tax...
Bank Can Deduct Discount On Mortgage Prepayment
July 31, 2023 - Volume 17 Issue 144 Print Report
The taxpayer is a domestic savings and loan association. With interest rates higher in the 1980s as compared to earlier years, the taxpayer offered discounts on an individual b...
Louisiana Basis And Federal Basis Diverge
July 31, 2023 - Bulletin Print Report
Ps arethe sole shareholders of BJF, (the "Corporation"). The Corporation is an 'S' corporation. For the 2019 tax year, the Corporation sold a commercial...
"Unclean Hands" Doctrine Was Not Applicable
July 28, 2023 - Bulletin Print Report
With respect to P's Federal income tax for 2013 and 2017, the I.R.S. determined deficiencies...plus accuracy related penalties. The deficiencies are attributable to short-...
Musician Subject To New York State MCTMT
July 28, 2023 - Volume 17 Issue 143 Print Report
Petitioner, (P), is a nonresident musician who has been touring and making albums for many years. He currently performs several times a year in the metropolitan commuter transp...
Transfer Of Ground Lease Subject To D.C. Tax
July 28, 2023 - Bulletin Print Report
The Archbishop of Washington is the owner of land at 1717 Rhode Island Avenue, N.W. In 2002, the Archbishop and M entered into an agreement for the lease of the land to M until...
"Lev Par" Is An Antidote For A Low Basis
July 28, 2023 - Bulletin Print Report
Fidelity National Information Services, Inc., ("FIS"), in 2019, acquired Worldpay, Inc., ("W"), in a cash and stock deal for well north of $30 billion. The...
Is Goodwill a Capital Asset?
July 27, 2023 - Volume 17 Issue 142 Print Report
During Year 1 through Year 2, TP, a C corporation, operated a "b" business consisting of three separate divisions: X, Y, and Z....
Sovereign Immunity Waiver Was Not "Unequivocally Expressed"
July 27, 2023 - Bulletin Print Report
The I.R.S. concluded that WA owed a tax deficiency and it undertook efforts to collect that amount. WI was involved in that effort. WA learned that the I.R.S. had levied and ga...
The Theft Loss Deduction Has Been Suspended
July 27, 2023 - Bulletin Print Report
In December 2010, plaintiffs became the owners and operators of FP. FP, operating online, sold raw pet food. In October 2014, G moved the business to Florida, registering the b...
PACW Will Be The "Accounting Acquirer"
July 26, 2023 - Bulletin Print Report
Bank of California, Inc., ("BANC"), and PacWest Bancorp, ("PACW"), have announced the signing of a definitive merger agreement pursuant to which the compani...
Registering Shares With The S.E.C.
July 26, 2023 - Volume 17 Issue 141 Print Report
Pursuant to a plan of reorganization which qualified under Sec. 368(a)(1) of the Internal Revenue Code, the acquiring corporation paid all of the costs necessary to register wi...
"Futility Exception" Obviates Need For Administrative Review Of Claim
July 26, 2023 - Bulletin Print Report
G.L. 1956 section 31-36-7 requires that: "Every distributor shall...render a report...of the amount...of fuels purchased, sold, or used by the distributor within this stat...
Airport Property Exempt From Taxation
July 26, 2023 - Bulletin Print Report
AA applied for a tax exemption for fifteendifferent properties that it owns and leases to private entities. The properties are located within airports in HC. The lessees...
No Retail Transaction Found
July 26, 2023 - Bulletin Print Report
TP is an Indiana resident. TP purchased a vehicle in 2017 in Illinois, listing both himself and his corporation as co-owners. TP later sold his company and k...
JNJ Chooses A Split-Off Of KVUE
July 25, 2023 - Bulletin Print Report
Johnson & Johnson, ("JNJ"), currently owns 1,716,160,000 shares of Kenvue, Inc., ("KVUE"), or approximately 89.6 percent of KVUE's issued and outsta...
Disposition Of Note With Unstated Interest
July 25, 2023 - Volume 17 Issue 140 Print Report
In January 1970, X issued 1,000 shares of its common stock in exchange for all of the stock of Y. On September 1, 1972, X sold its stock in Y to M for a noninterest bearing not...
Only Temporary Housing Is Exempt From Taxation
July 25, 2023 - Bulletin Print Report
CC is non-stock corporation established in 1984. CC is recognized as a charitable organization under section 501(c)(3) of the Code. CC is licensed by DDS to operate "CLA&q...
Tesla Buyer Not Entitled To A Trade-In Credit
July 25, 2023 - Bulletin Print Report
JM wanted to purchase a 2022 TeslaModel Y. He owned a 2015 Buick Enclave and intended to use that vehicle as a trade-in when buying the Tesla. But there were no Tesla dea...
New Jersey Has Retaliated Against Its Neighboring States
July 24, 2023 - Bulletin Print Report
As threatened, the great state of New Jersey has taken action to "level the playing field," from a tax point of view, with several of its neighboring states, most not...
No Credit For Tax Imposed On 'S' Corporation Income Allocated To N.J.
July 24, 2023 - Volume 17 Issue 139 Print Report
Plaintiff, (P), is the sole shareholder of C, a New Jersey corporation. C has elected to be taxed as an 'S' corporation. For 2009, C filed a New York State 'S'...
Related Party Advances Found To Be Equity
July 24, 2023 - Bulletin Print Report
AL coordinated lot sales for six bonded real estate developments, ("2009 development projects"): (1) SD, being developed by RI, (2) CBD, being developed by RRDN...
Taxpayer Who "Paid The Tax" Is Entitled To A Refund
July 24, 2023 - Bulletin Print Report
C is an Indiana car dealership whose customers include Kentucky residents. C collected Kentucky's "MVUT" for its Kentucky customers and deposited the funds into i...
Sec. 267(b)(4) Should Not Be Read Literally
July 21, 2023 - Volume 17 Issue 138 Print Report
Y owns all of the stock of C. A is Y's son-in-law. A is active in the management of C and is also the trustee of several trusts created by Y for the benefit of A's chil...
In-State Activity Exceeded P.L. 86-272 Protection
July 21, 2023 - Bulletin Print Report
U is an 'S' corporation with its headquarters in Wisconsin. U is a web-based distributor of industrial and packaging products. U shipped most inventory items from its d...
Non-Resident's Income Taxed In California
July 21, 2023 - Bulletin Print Report
APPs timely filed a Form 540 California Resident Income Tax Returnfor the 2017 tax year, reporting a California adjustment for Nevada wage income earned by AH in 2017. FT...
Frivolous Return Penalty Is Constitutional
July 21, 2023 - Bulletin Print Report
Minnesota, ("M"), law imposes an income tax on the taxable income of both residents and non-residents. Non-resident individuals and shareholders are required to file...
The Willens Deal Survey July 2023
July 20, 2023 - The Deal Survey: July 2023 Print Report
Welcome to this month's summary of deals. Full reports on some of these transactions can be found via the link in the description, or by searching the company name in our database.
Withholding Agent Cannot Rely On Incorrect Exemption Form
July 20, 2023 - Volume 17 Issue 137 Print Report
The withholding agent (WA) filed Forms 1042-S with the Service showing a claimed exemption from withholding on payments of "effectively connected income." During an e...
Uncashed Checks Included In Gross Estate
July 20, 2023 - Bulletin Print Report
In 2007, D signed a power of attorney agreement appointing his son, DO, as his agent. DO made annual monetary gifts to family members from 2007 to 2014. On September 6, 2015, D...
The Tax Injunction Act Robbed A Federal Court Of Jurisdiction
July 20, 2023 - Bulletin Print Report
H is an Arizona company that sells products online throughout the country. It argues that Louisiana's parish-by-parish sales-and-use tax system is so costly to navigate tha...
Payments That Benefit Shareholders Not Considered Dividends
July 19, 2023 - Volume 17 Issue 136 Print Report
Approximately 1/3 of C's shareholders own less than 100 shares of C's common stock. More than 1/2 of these shareholders own less than 26 shares. C incurs substantial ex...
The Braves Are On Their Own
July 19, 2023 - Bulletin Print Report
On July 18, 2023, Liberty Media Corporation effected a distribution of its stock in Atlanta Braves Holdings, Inc. to the holders of certain classes of its tracking stock. The v...
Reacquisition Of Vehicle Subjected To Use Tax
July 19, 2023 - Bulletin Print Report
TP, as part of a new job, sold her vehicle to her new employer. After a week or so of working at the employer, TP decided she would return to her old job and left the new emplo...
Cutting Is Not "Fabrication"
July 19, 2023 - Bulletin Print Report
APP is a steel and aluminum distributor. APP purchases its aluminum and steel from various vendors for resale. On occasion, a customer may request "further work" from...
No Double Credit For The Same Investment
July 18, 2023 - Bulletin Print Report
B is an insurance company. B is in the business of issuing accident and health insurance plans. B is subject to a "Premium Tax," as well as corporate income tax on it...
Fair Cash Value Was Not Less Than Assessed Value Of Dwelling
July 18, 2023 - Bulletin Print Report
On January 1, 2019, and January 1, 2020, APP was the assessed co-owner of a condominium unit, (the "subject unit"). The subject unit is a two-story unit with an ocean...
"Arrowsmith" Required Capital Loss Treatment For Settlement Payment
July 18, 2023 - Volume 17 Issue 135 Print Report
In 1961, the taxpayer sold his interest in two oil and gas leases and reported a long-term capital gain of $190,000 from the sale. In 1962, it was determined that the wells on...
Corporation Allowed A Gross Receipts Tax Deduction
July 17, 2023 - Bulletin Print Report
R had commercial contracts with the VA and IHS. Under these contracts, R's nurse employees would provide health care services for the VA and IHS. The Department assessed R...
CEO Maintained A Permanent Place Of Abode In New York City
July 17, 2023 - Bulletin Print Report
The Division conducted a residency audit of petitioner for the tax year 2017. The sole issue is whether petitioner, who admittedly spent more than 183 days within New York City...
Securing A Dependency Exemption For A Non-Relative
July 17, 2023 - Volume 17 Issue 134 Print Report
Petitioner, (P), and his wife were married in September 2009. At that time, P's wife moved out of her mother's home and into P's apartment. At the time P's wife...
Vessel Found Subject To California Use Tax
July 17, 2023 - Bulletin Print Report
On January 14, 2014, in Oregon, APP purchased a sailing yacht, (the "Vessel"), for $65,000.00. APP did not remit any sales or use tax to the Oregon sellers in connect...
Only Tax On Income "Derived" From Another State Is Creditable
July 14, 2023 - Volume 17 Issue 133 Print Report
On June 18, 2001, Petitioner, (P), an individual who is domiciled in New York State, won a jackpot at a slot machine at the Trump Taj Majal Casino in Atlantic City, New Jersey....
The Dominant Motivation Was Investment Related
July 14, 2023 - Bulletin Print Report
AH was in the business of real estate development and hotel ownership and management. AH, PG, and RL founded S to raise funds for SS, which was S's wholly owned subsidiary....
Furnishing Of Go-Karts Constituted "Leasing" Of "TPP"
July 14, 2023 - Bulletin Print Report
APP operates indoor go-kart racing venues in California. APP purchased go-karts for use at its venues from a vendor in Italy without paying tax to California or tax reimburseme...
State Tax Refunds Constitute Qualifying REIT Income
July 13, 2023 - Volume 17 Issue 132 Print Report
TP elected to be treated as a REIT. TP owns 100 percent of the stock in S. S is a qualified REIT subsidiary (QRS). S owns, indirectly through entities taxable as partnerships,...
Eli Lilly Embraces The "Closed Transaction" Approach To CVRs
July 13, 2023 - Bulletin Print Report
Recently, Eli Lilly & Co., ("E"), and SigilonTherapeutics, Inc., ("S") announced a definitive agreement for L to acquire the stock of S from its s...
Taxpayer Provides "Credit Bureau Services"
July 13, 2023 - Bulletin Print Report
TP is an out-of-state corporation that provides two types of check risk management services: (1) retail check services, and (2) payroll check cashing services. TP makes recomme...
Leasehold Interest Found To Be "Public Property"
July 13, 2023 - Bulletin Print Report
The Authority sued the Board, seeking a declaration that its leasehold interest in certain property, "SH," was exempt from ad valorem taxation. The trial court grante...
Citigroup Can Deduct Its Worthless "RAP Right"
July 13, 2023 - Bulletin Print Report
One S&L-crisis era"assisted" merger occurred between Glendale Federal Bank, FSB, ("G"), and First Federal Savings and Loan of Broward, ("B&qu...
Spin-Off To Facilitate Raising Needed Capital
July 12, 2023 - Volume 17 Issue 131 Print Report
P corporation, (P), is a closely-held corporation that owns and operates a golf and tennis resort in State A. P has for more than five years owned all of the stock of S corpora...
Fishing Charter Activity Not Engaged In For Profit
July 12, 2023 - Bulletin Print Report
S has been fishing in Alaska for more than thirty years. In 2010, he decided to establish HJC and acquired a boat designed to fish for halibut. In 2015 and 2016, S filed fishin...
Late Filed Appeal Robs Court Of Jurisdiction
July 12, 2023 - Bulletin Print Report
In 2012, plaintiffs purchased residential real property in defendant for $6,267,500. Starting in 2013, and in every year thereafter, plaintiffs submitted a forest management pl...
Contributed Property Found To Be Inventory
July 12, 2023 - Bulletin Print Report
GC is a partnership. In January 2006, ILC purchased nearly 2,000 acres of undeveloped land in Tennessee for over $9 million to develop into a residential vacation comm...
"HEROES" Act Does Not Authorize Loan Forgiveness
July 11, 2023 - Bulletin Print Report
The Higher Education Act of 1965, (the "EA"), specifies the terms and conditions attached to federal loans. It authorizes the Secretary to cancel or reduce loans,&nbs...
Excluded Gain Supports Deduction Of Suspended PALs