9603 Results

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...
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...
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...
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...
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...
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...
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...
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"),...
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.
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...
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...
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...
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...
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...
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,...
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...
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")...
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...
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...
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...
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...
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...
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...
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...
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...
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...
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...
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...
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...
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...
FUN Will Cease To Be An MLP - Expanded Version
December 12, 2023 - 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...
Is Twenty-Seven Percent "Good" Continuity Of Interest?
November 21, 2023 - Bulletin Print Report
Crescent Point Energy Corporation, ("CPG"), announced that it has entered into an "arrangement agreement" to acquire Hammerhead Energy, Inc., ("HHRS&qu...
Presumption Of Validity Not Rebutted By Zillow.com Data
November 21, 2023 - Bulletin Print Report
P and his wife owned residential real property in V which they purchased in 2012 for $270,000. The property was reassessed in 2021 at $303,800 and P filed a grievance challengi...
Section 965 Income In Not A "Deemed" Dividend
November 21, 2023 - Bulletin Print Report
PCC's foreign subsidiaries had earnings generated outside the U.S. In 2017, the U.S. deemed such income from 1986 to 2017 repatriated into the U.S. under the "TCJA.&qu...
Taxpayer Found To Have Acquired Equitable Title To Property
November 21, 2023 - Volume 17 Issue 223 Print Report
In 1993, petitioners moved from VBV to RMV. After reading about a house for sale in the local newspaper, petitioners contacted the seller, GF. GF offered to finance the sale wi...
Partnership's Taxable Income Was "ECI"
November 20, 2023 - Bulletin Print Report
YAG was formed as a Delaware limited partnership on January 2, 2001. In early 2007, YAG registered under the laws of the Cayman Islands. Until January 14, 2007, YA was YAG'...
Capital Contribution Not Described In Sec. 382(l)(1)
November 20, 2023 - Volume 17 Issue 222 Print Report
T has been engaged in Business A since 1985. Part of T's business is the development of products the commercial sale of which is subject to regulatory approval; T has not y...
Aramark Does Not Act As An Agent
November 20, 2023 - Bulletin Print Report
Aramark Corporation, ("A"), provides its services based on two types of contracts: (1) profit and loss and (2) management. Under a profit and loss contract, A operate...
Real Property Was "Substantially Ready" For Its Intended Use
November 20, 2023 - Bulletin Print Report
Plaintiff, ("P"), was the owner of real property and improvements, (the "subject property"). The subject property is improved with a four-story brick apartm...
Failure To Provide Written Statement Renders "NOFD" Void
November 17, 2023 - Bulletin Print Report
The Department is a state agency. On September 27, 2017, the Department issued a notice of proposed assessment to Ingram Micro, Inc., ("I"). I requested a review of t...
Liberty Media Corporation Retires Debt Tax-Efficiently
November 17, 2023 - Bulletin Print Report
Recently, Liberty Media Corporation, ("LMC"), and a newly formed corporation, Atlanta Braves Holdings, Inc., ("ABH"), engaged in a reorganization, of the &#...
Home Office Not A Regular Place Of Business
November 17, 2023 - Volume 17 Issue 221 Print Report
Petitioner, (P), maintained a law office at 222 Madison Avenue, New York, NY during the 1983 tax year. P contended that during the 1983 tax year he maintained law offices both...
Post-Spin Equity Awards Excluded From Section 355(a)(1)(D) Calculus
November 17, 2023 - Bulletin Print Report
D is the parent of a worldwide group...engaged in Business A and Business B. D has outstanding D Debt, including the Revolver Amount. Subsidiary, ("S"), has outstandi...
Inadvertent REIT Election Treated As Not Made
November 16, 2023 - Bulletin Print Report
TP was formed on Date 2 as a State limited liability company. TP's sole member, LP, is a subsidiary partnership of a private equity real estate fund, (the "Fund")...
Adoption Tax Credit Denied
November 16, 2023 - Volume 17 Issue 220 Print Report
Under Sec. 23 of the Internal Revenue Code, a taxpayer undertaking the "adoption of a child with special needs which becomes final during a taxable year" is eligible...
The Department Of Environmental Protection Cannot Impose A Tax
November 16, 2023 - Bulletin Print Report
The Petition for Review, ("PFR"), relates to Pennsylvania's participation in the Regional Greenhouse Gas Initiative, (the "RGGI"), based on regulations...
Sham Transaction Did Not Produce A Deductible Loss
November 16, 2023 - Bulletin Print Report
In October 2002, APP incorporated F. During the 2004, 2005, and 2006 tax years,F reported net losses. Between June 4, 2003, and December 20, 2007, APP made numerous trans...
DISH Network And EchoStar Change The "Direction" Of Their Merger
November 15, 2023 - Bulletin Print Report
In August, 2023 DISH Network Corporation, ("D") entered into an Agreement and Plan of Merger, (the "Original Merger Agreement"), with EchoStar Corporation,...
Ascertaining The Date Of "Disposition" Of Stock
November 15, 2023 - Volume 17 Issue 219 Print Report
On July 1, 1958, the taxpayer purchased 100 shares of common stock. On October 1, 1958, the taxpayer entered into an agreement for the sale of this stock at a loss; and to deli...
Taxpayer Entitled To Lower "Refinancing" Rate
November 15, 2023 - Bulletin Print Report
An individual purchased four condominium units by four separate deeds. Each unit was encumbered by a different deed of trust with different lenders. The four units were transfe...
Tax Court Affirms That 90-Day Petition Deadline Is Jurisdictional
November 15, 2023 - Bulletin Print Report
On March 21, 2022, respondent issued to petitioner a notice of deficiency for tax year 2018. The notice indicated that the "last day to petition (the) Tax Court" was...
United Therapeutics Joins The List Of CVR Issuers
November 14, 2023 - Bulletin Print Report
When the parties to an acquisition are uncertain about the value of the target, it may be best to delay paying a portion of the merger consideration until such time, if ever, t...
Taxpayer Cannot Deduct Interest Paid On Another's Indebtedness
November 14, 2023 - Volume 17 Issue 218 Print Report
The taxpayers were majority shareholders in a cattle ranch known as RV. On June 19, 1965, RV borrowed $1.5 million from T at an interest rate of 10 percent per annum....
I.R.S. Tax Claims Accorded Priority Status
November 14, 2023 - Bulletin Print Report
On April 9, 2021, S filed their chapter 7 bankruptcy petition. On July 13, 2021, the I.R.S. filed their proof of claim, ("Initial Proof of Claim"). The I.R.S. stated...
Catering Services Are Subject To Sales Tax
November 14, 2023 - Bulletin Print Report
APP is a restaurant and tenant of a hotel. In addition to its restaurant services,APP also provides catering services to the hotel. The hotel contracts with banquet group...
RPT Special Dividend Should Be Free Of Withholding Tax
November 13, 2023 - Bulletin Print Report
The acquisition of RPT Realty, ("RPT"), by Kimco Realty Corporation, ("KIM"), each a real estate investment trust, (a "REIT"), seems to be proceed...
None Of The Income Allocated To KO Was "Blocked"
November 13, 2023 - Bulletin Print Report
The Coca-Cola Company, ("TCCC"), is the ultimate parent of a group of entities, ("Company"). The Internal Revenue Service made adjustments that increased pe...
Distribution Motivated By Mixed Purposes Satisfies Sec. 355
November 13, 2023 - Volume 17 Issue 217 Print Report
X has been engaged in the farming business for more than five years. The stock is owned 25 percent each by Father, Mother, Son, and Daughter. Although Father and Mother partici...
Fusion Targets Are Not Subject To Sales Tax
November 13, 2023 - Bulletin Print Report
TP operates the "Facility" that has on its premises: a storefront, two pistol shooting ranges, one rifle shooting range, a classroom.... The shooting ranges are only...
Internal Sales Valued By Reference To Comparable External Sales
November 10, 2023 - Bulletin Print Report
M is an asphalt manufacturer with production facilities in Washington. M's manufacturing division provides asphalt both to its construction division ("internal sales&q...
"Customer/Competitor" Business Purpose Supports A Split-Off
November 10, 2023 - Volume 17 Issue 216 Print Report
Y is engaged in the business of commercial printing and has been so engaged for the past five years. Its outstanding stock consists of shares of common stock of which 15 percen...
Non-Profit Corporation Did Not Distribute Income or Profit
November 10, 2023 - Bulletin Print Report
Plaintiff, ("P"), paid $7,500 to become a member of the Club, a non-profit organization formed under N.J.S.A. 15A-2.1. His membership payment was memorialized in a &q...
Collection Notice Violated The "Automatic Stay"
November 10, 2023 - Bulletin Print Report
B filed a chapter 13 petition for relief on March 19, 2021. On November 1, 2021, Treasury sent B a notice attempting to collect a pre-petition claim. Through the notice, Treasu...
Reverse Morris Trust Features A Downstream Merger
November 9, 2023 - Bulletin Print Report
In most cases, the second "leg"of a "Reverse Morris Trust" transaction involves the merger of spincowith and into an unrelated corporation. In o...
John Malone Is Not Infallible
November 9, 2023 - Bulletin Print Report
In January 2010, Liberty Global, Inc., ("LG"), indirectly owned more than 50 percent of the voting interests in Jupiter Telecommunications Co. Ltd., ("JT"),...
Sec. 305(b) Found Inapplicable
November 9, 2023 - Volume 17 Issue 215 Print Report
On Date K, SHA was one of three unrelated individuals that collectively owned all of the stock of T. T was a State X corporation whose outstanding stock consisted of one class...
Home Office Deductions Not Permitted
November 9, 2023 - Bulletin Print Report
P is an IT professional. P was employed by SRA OSS. In addition to working for SRA OSS, P purportedly conducted an activity that he reported as a business activity on Schedule...
Tender Offer And Merger Treated As An Integrated Acquisition Of Assets
November 8, 2023 - Bulletin Print Report
Cadeler A/S, a public limited company incorporated under the laws of Denmark, is offering to exchangefor each outstanding share of Eneti, Inc., a corporation incorporated...
Trustees Can "Manage" The Affairs Of A REIT
November 8, 2023 - Volume 17 Issue 214 Print Report
Advice has been requested whether trustees of an unincorporated trust can contract for the construction of an office building on land owned by the trust without adversely affec...
Non-Owning Spouse Has No Interest In Marital Property
November 8, 2023 - Bulletin Print Report
R owes the United States $327,419.11 for unpaid income taxes, interest, and penalties. Multiple federal liens attached to his property interests, including his interest in the...
MCL 211.78t Is Both Exclusive And Constitutional
November 8, 2023 - Bulletin Print Report
Respondents owned real properties and fell behind on their property taxes. Petitioner foreclosed their properties effective March 31, 2021. None of the respondents tim...
Party To A Reorganization
November 7, 2023 - Volume 17 Issue 213 Print Report
X corporation changed its name and issued new stock certificates to its shareholders in exchange for the X stock held by them prior to X corporation's change in name. The t...
Cash Boot Purge Includes Normal Quarterly Dividends
November 7, 2023 - Bulletin Print Report
D, which may well be Johnson & Johnson, is the parent of a worldwide group of entities, (the "DWG"). D is also the common parent of an affiliated group that files...
Certain Clothing And Footwear Is Exempt From Sales Tax
November 7, 2023 - Bulletin Print Report
Petitioner, ("P"), is a retailer of party goods... P is owned by PCH, a publicly traded retail chain. A statement of proposed audit changes was issued to P, "SSO...
Penalty Approval After Formal Communication Found Timely
November 7, 2023 - Bulletin Print Report
An examination of P's returns for 2011 and 2012 was conducted by a tax compliance officer, ("TCO"). On June 2, 2014, the TCO issued P letter 692 ("15-day let...
Extension Of Variable Prepaid Forward Contracts Is A Taxable Event
November 6, 2023 - Bulletin Print Report
In "EI," we considered whether decedent realized capital gain by executing amendments extending two variable prepaid forward contracts, ("VPFCs"), in 2008....
Option Treated As Exercised
November 6, 2023 - Volume 17 Issue 212 Print Report
Prior to Date A, TP owned 15,000 shares of M stock. On Date A and Date B, TP was granted 10,000 Incentive Stock Options (ISOs) and 30,000 ISOs for M stock, respectively. The ex...
Accumulated Depreciation Includes The Cost Of Removal
November 6, 2023 - Bulletin Print Report
S owns an interstate electric transmission line. S files an annual valuation report with the Arizona Department of Revenue, (the "Department"), and maintains its book...
Reliance On Agent Does Not Excuse Late e-Filing
November 6, 2023 - Bulletin Print Report
L hired CPA KW to prepare and file his federal income tax returns for 2014-2016. Treasury Regulations deemed KW a "specified tax return preparer," requiring him to fi...
Grants Excluded From Gross Income
November 3, 2023 - Volume 17 Issue 211 Print Report
State established the Grant Program, run by Department,for the purpose of securing job-creating economic development opportunities....
An 'S' Election Is Property Of The Estate
November 3, 2023 - Bulletin Print Report
O founded V in 1993. O elected that it be treated as an 'S' corporation. V filed for chapter 11 bankruptcy. V contracted to sell its assets. The sale price was $370 mil...
Transfer Of Property At Husband's Death Was Exempt From Death Taxes
November 3, 2023 - Bulletin Print Report
The Ws created the Trust on June 26, 2007. The Trust assets included the Ws' personal residence and 5,938 shares of stock. The Ws previously owned the residence as tenants...
Military Contractor Engaged In "Sales For Resale"
November 3, 2023 - Bulletin Print Report
O produces specialty vehicles. The U.S. government regularly contracts with O to design and manufacture vehicles for the U.S. military. O routinely purchases both direct and in...
FUN Will Cease To Be An MLP
November 2, 2023 - Bulletin Print Report
When Are Special Foods and Beverages Medical Care Expenses?
November 2, 2023 - Volume 17 Issue 210 Print Report
On Date 2, the taxpayer, (TP), had a physician advise adouble mastectomy in orderto address medical conditions "X" and "Y". On Date 3,...
Loss Corporation Permitted To Make A Late Section 382(l)(5)(G) Election
November 2, 2023 - Bulletin Print Report
For the taxable year endingDate 1, Parent and its subsidiaries, which included Sub 1 and Sub 2, elected to file a consolidated federal income return, (the "Parent Gr...
Taxpayer Did Not Dwell At His Purported Principal Residence
November 2, 2023 - Bulletin Print Report
P claimed a principal residence exemption, ("PRE"), on the H property in 2005 and enjoyed the exemption for several years. At some point in 2012, P began caring for h...
Data Migration And Management Is A Qualified Trade Or Business
November 2, 2023 - Bulletin Print Report
C was formed in Year 1 and elected classification as an association to be taxed as a 'C' corporation. On Date 1, C elected to be classified as an 'S' corporatio...
PEAK And DOC Forgo A Basis Step-Up
November 1, 2023 - Bulletin Print Report
HealthpeakProperties, Inc., ("PEAK"), and Physicians Realty Trust, ("DOC"), are each real estate investment trusts, ("REITs"), within the me...
"Capital Asset" Is Narrowly Construed
November 1, 2023 - Volume 17 Issue 209 Print Report
TP owned Vessel, a fishing vessel. In Year 2, TP sold Vessel to Transferee. TP retained ownership of Vessel's "catch history" and license limitation per...
Claims Barred By Sovereign Immunity
November 1, 2023 - Bulletin Print Report
The Development Authority of DeKalb County, (the "Authority"), is the title owner for a piece of real property, (the "property"). The Authority leased the p...
Escheat Provisions Found To Be Unconstitutional
November 1, 2023 - Bulletin Print Report
At the time of his death in 2006, D owned a parcel of property in Richmond, Virginia. Payment of local property taxes on the parcel ceased after his death. The City filed an ac...
O And SRC Propose A Tax-Free Reorganization
October 31, 2023 - Bulletin Print Report
Realty Income Corporation, ("O"), and Spirit Realty Capital, Inc., ("SRC"), are each real estate investment trusts, ("REITs"), within the meaning...
Citigroup Must Pay Sales Tax On Purchase Of Bicycle Equipment
October 31, 2023 - Volume 17 Issue 208 Print Report
P has entered a contract with the NYCDOT to operate a bicycle rental program (Program). P is Citigroup. The Program provides Users with access to bikes located at hundreds of s...
"MA" Organization Not Exempt From Illinois Income Tax
October 31, 2023 - Bulletin Print Report
Y requested information regarding the taxability of Medicare Title XVIII premiums under Illinois law. Section 201(a) of the Illinois Income Tax Act, ("IITA"), imposes...
Settlement Payment For Tort Damages Not Deductible As "COGS"
October 31, 2023 - Bulletin Print Report
AnadarkoPetroleum Corporation, ("A"), an oil and natural gas production company, partnered with British Petroleum, ("BP")...through a joint operating...
The Equitable Tolling Principle Does Not Apply To Section 6511
October 30, 2023 - Bulletin Print Report
Mr. W initiated this action on January 13, 2020. He alleged that he owed an outstanding tax debt, but also that the I.R.S. had "seized" his tax refunds for 2001 and 2...
"Purge" Allows For 'B' Reorganization
October 30, 2023 - Volume 17 Issue 207 Print Report
X is engaged in the banking business. Y is a holding company. Y holds "d%" of the stock of X. Y proposes to acquire sufficient shares of X so that it will hold at lea...
No Relief Where Excessive "Household Income" Found
October 30, 2023 - Bulletin Print Report
Utah Code Ann. section 59-2-103(2) provides for the assessment of property as follows: "All tangible taxable property located within the state shall be assessed and taxed...
New Jersey's Litter Fee Applies To Manufacturers
October 30, 2023 - Bulletin Print Report
C manufactures litter-generating packaged meat products which it distributes throughout the country. C stores and distributes meat products through its Swedesboro, New Jersey f...
Who Owns A Lottery Ticket?
October 27, 2023 - Volume 17 Issue 206 Print Report
A and B are individual taxpayers who have been married to each other since date (a). Throughout their marriage, they have filed joint returns, held their property in joint owne...
Netflix And Its Competitors Do Not Offer "Video Service"
October 27, 2023 - Bulletin Print Report
Illinois requires anyone who wants to provide "cable or video service" to obtain permission from state or local authorities, and pay a fee, as a condition of using pu...
Government Cannot Obtain Summary Judgment On Willfulness Dispute
October 27, 2023 - Bulletin Print Report
K was born in Japan. K obtained a U.S. Permanent Resident Card. K does not speak English. In 2014, the Japanese Tax Authority informed the I.R.S. that K received certain income...
Novartis Sets Sandoz Free
October 27, 2023 - Bulletin Print Report
Recently, Novartis AG completed the separation of its subsidiary, Sandoz Group AG. The business purpose asserted for the spin-off was the ubiquitous "fit and focus,"...
Will SWX's Spin-Off Of Centuri Group Holdings, Inc. Be Delayed?
October 26, 2023 - Bulletin Print Report
...
Redeemed Shareholder Not Barred From Attribution Waiver
October 26, 2023 - Volume 17 Issue 205 Print Report
X is a domestic corporation engaged in an ongoing business. It has 1,000 shares of voting common stock outstanding which are held as follows: A (548), B-D (39 each), E (333), a...
A Form 1099-C Does Not Discharge Debt
October 26, 2023 - Bulletin Print Report
Debtor, ("D"), filed a chapter 13 petition on July 8, 2022. CF filed an unsecured claim on July 29, 2022. D objected to CF's claim. D argues that "the debt h...
Retroactive Change To Terms Of Trust Saves Transfer Tax
October 26, 2023 - Bulletin Print Report
On September 4, 2018, Grantors, ("Gs"),created Trust. It is a revocable living trust. During their lifetimes, G are entitled to a quarterly distribution of &quo...
Research Credits Are Subject To The Section 38(c) Limitation
October 25, 2023 - Bulletin Print Report
JI, an 'S' corporation, reported research credits under section 41 to its shareholders for 2013 through 2016. Shareholders J and K claimed their share of research credi...
Parent's Cancellation of Sub's Debt Does Not Cause CODI
October 25, 2023 - Volume 17 Issue 204 Print Report
P, a foreign corporation, owned all of the stock of S, a domestic corporation. S conducted Business A. In its business, S maintained an inventory of component parts....
Public Auction That Excluded Potential Bidders Ruled Invalid
October 25, 2023 - Bulletin Print Report
The provisions of the Code governing the procedure for conducting a tax sale begin with the requirement for the Department to provide notice to the property owner. Payment to t...
The Willens Deal Survey October 2023
October 24, 2023 - The Deal Survey: October 2023 Print Report
Welcome to this month's summary of deals. Full reports on some of these transactions can be found via the link in the description, or by searching the company name in our database.
Warrants For Stock: Recapitalization Or Taxable Exchange?
October 24, 2023 - Bulletin Print Report
Allego N.V., ("ALLG," or the "company"), recently announced that it has commenced an "exchange offer," (the "Offer"), and companion &quo...
Restrictions Imposed On NOL Carrybacks In N.Y. Are Proper
October 24, 2023 - Volume 17 Issue 203 Print Report
Because P sustained net operating losses (NOLs) of $110,833 in 1973 and $235,226 in 1974, he filed a claim for both Federal and New York refunds for income taxes paid in 1971,...
Getting To The Essence Of A Canadian "Butterfly" Transaction
October 24, 2023 - Bulletin Print Report
D is a publicly traded corporation engaged in non-pharmaceutical Business A and non-pharmaceutical Business B, which includes conducting research and development activities for...
Installed Cranes Are Real Property
October 24, 2023 - Bulletin Print Report
TP operated a marine cargo terminal and was in the business of providing marine cargo handling services at the Port of Virginia. The Department audited TP and assessed use tax...
No Withholding Tax Imposed On Redemption Distributions
October 23, 2023 - Bulletin Print Report
One of the more interesting deals in the market is Vista Outdoor, Inc.'s proposal for disposing of its Sporting Products business and returning to its shareholdersthe...
"Place Of Amusement" Found
October 23, 2023 - Volume 17 Issue 202 Print Report
Article 28 of the (New York State) Tax Law requires a sales tax to be paid on any "admission charge" for use of any "place of amusement." The taxpayer (TP)...
Valuation Errors In Centrally Assessed Property Cannot Be Corrected
October 23, 2023 - Bulletin Print Report
After persuading the department that the valuation methodology that it hadused to assess taxpayer's property in 2020-21 had been flawed, taxpayer asked the department...
"SOH" Transfer Application Was Not Timely Filed
October 23, 2023 - Bulletin Print Report
This case involves Florida's "SOH" assessment cap. In 2008, voters approved a separate constitutional amendment that permits a homeowner to transfer the benefit a...
Sonny Corleone's Tax Problem
October 20, 2023 - Bulletin Print Report
This case concerns two IRAs that James Caan, ("C"), held at UBS. One of the IRAs held a partnership interest ("PAI") in a hedge fund ("PAF"). It w...
Refund Of Subscription Price Of Rights
October 20, 2023 - Volume 17 Issue 201 Print Report
The outstanding stock of X consists of a single class of common stock. In 1973, the directors of X distributed to its common shareholders transferable rights to subscribe, on o...
Certificate Holder Not A Person Entitled To Surplus Proceeds
October 20, 2023 - Bulletin Print Report
Every March, the City of Baltimore, Marylandissues a list of residential properties with attached liens that will become available at the tax sale in May. When its bids a...
Hyatt Hotels Cannot Avail Itself Of The Trust Fund Doctrine Exception
October 20, 2023 - Bulletin Print Report
Hyatt Hotels Corporation was the U.S. common parent for the Hyatt group of companies. Petitioner owns, leases, manages, and franchises hotel, residential, and timeshare propert...
Trust NOL Expires Upon Termination
October 19, 2023 - Volume 17 Issue 200 Print Report
GM executed a trust agreement on January 1, 2002 that created the MCLT. The corpus of the trust consisted of part ownership in several real estate partnerships. The trust was f...
VMW Shareholders Must Elect The Form Of Merger Consideration
October 19, 2023 - Bulletin Print Report
Broadcom, Inc., ("AVGO"), and VMware, Inc., ("VMW"), announced that the deadline for VMW's shareholders to elect the form of merger consideration they w...
BAM To Separate A Portion Of Its Asset Management Business
October 19, 2023 - Bulletin Print Report
Brookfield Asset Management recentlyannounced the details of its ambitiousplan to distribute to its Class A and Class B shareholdersall of the stock of a newl...
WHLR Replaces Equity With Debt
October 19, 2023 - Bulletin Print Report
Wheeler Real Estate Investment Trust, Inc., ("WHLR"), is offering to exchange shares of its Series D Cumulative Convertible Preferred Stock for six percent Subordinat...
No Tax Relief Granted For Repayment Of Overpaid Wages
October 18, 2023 - Bulletin Print Report
Under Utah Code Ann. section 59-10-104(1), "a tax is imposed on the state taxable income of a resident individual." State taxable income means the resident individual...
Real Property Correctly Classified Through An Article 78 Proceeding
October 18, 2023 - Bulletin Print Report
In this article 78 proceeding for declaratory judgment and other relief the petitioner seeks to reverse the administrative decision of the DOF,upheld on appeal by the Com...
Bargain Sale Did Not Produce Deductible Loss
October 18, 2023 - Bulletin Print Report
In 2006, S purchased three retail buildings as investments. In 2017, S transferred the "E" property to the City and claimed a loss relating to that property. S stated...
Sec. 83(b) Election Properly Disregarded
October 18, 2023 - Volume 17 Issue 199 Print Report
On March 26, 1990, the Board of Directors of C voted to transfer 300 shares of stock to Employees (Es) subject to restrictions that constitute "a substantial risk of forfe...
Floating Boat Docks Are Tangible Personal Property
October 17, 2023 - Bulletin Print Report
Applicant has rented floating dock space from a Lessor for ten years, with the lease renewal and billing cycle being done annually. The Lessor has charged the Applicant sales t...
Related Party Loss From Sale Of Inventory Disallowed
October 17, 2023 - Bulletin Print Report
APP, a California resident, was the sole owner and president of TM, a California-based 'S' corporation that developed and manufactured custom boats. In 2016, prior to d...
Sales Tax and Donuts
October 17, 2023 - Volume 17 Issue 198 Print Report
Krispy Kreme Doughnut Corporation, (KK), sought review of a decision that it must collect sales tax at the four percent rate (rather than at the one percent rate) on...
Exemption Began On First Day Of Real Property Tax Year
October 16, 2023 - Bulletin Print Report
Petitioners, ("Ps"), are the owners of an 18-acre parcel of real property. On March 4, 2004, the Town adopted a resolution whereby Ps were granted a real property tax...
Triangular Merger And Liquidation Recast As A 'C' Reorganization
October 16, 2023 - Volume 17 Issue 197 Print Report
P, whose stock is widely held and publicly traded, is a manufacturing corporation organized under the laws of State A. T, whose stock is closely held, is a manufacturing corpor...
Tractor Did Not Satisfy The "Double-Direct" Test
October 16, 2023 - Bulletin Print Report
TP, an Indiana farmer, purchased a Ford 5000 tractor, ("Tractor"), at auction. TP paid sales tax on the Tractor. TP requested a refund of the tax paid, stating that t...
Nine West Failed To Meet Its Evidentiary Burden
October 16, 2023 - Bulletin Print Report
Nine West, ("NW"), is a global designer, marketer, and wholesaler of apparel... NW paid CAT on receipts for all goods shipped to distribution centers in Ohio, includi...
Purchaser Of Foreign Goods Was Not The "Importer"
October 13, 2023 - Bulletin Print Report
Plaintiff is a wholesaler and retailer of truck parts and tires. From 2012 to 2017, TT purchased tires wholesale from Chinese manufacturers. The parties stipulate that, "A...
Series Of Steps Collapsed Into An 'F' Reorganization
October 13, 2023 - Bulletin Print Report
Parent, a Country A corporation, is the foreign parent of a worldwide group, (the "Parent Group"). Parent has a single class of voting common stock outstanding that i...
Period For Requesting A "CDP" Hearing Is Subject To "Equitable Tolling"
October 13, 2023 - Bulletin Print Report
When the I.R.S. files a notice of federal tax lien, ("NFTL"), on a taxpayer's property to collect an unpaid assessment, the Code gives the taxpayer the right to a...
Recomputing A Worthless Stock Deduction
October 13, 2023 - Volume 17 Issue 196 Print Report
P (or TP) is an Indiana corporation engaged in the manufacture of precision instruments. M was an Illinois corporation engaged in a business related in character to that conduc...
Exxon and Pioneer Reach Historic Agreement
October 12, 2023 - Bulletin Print Report
It did not take long for the rumors to become reality. Exxon Mobil Corporation ("Exxon"),and Pioneer Natural Resources, ("Pioneer"), jointly announced...
Carry Back Of NOL To Resident Taxable Year Permitted
October 12, 2023 - Volume 17 Issue 195 Print Report
Petitioner, (P), was a resident of New York State (NYS) during taxable years 1993-1995. P intends to change his residence during 1996 at which time he will be considered a nonr...
I.R.S. Extends Wash Sale Relief To All Money Market Funds
October 12, 2023 - Bulletin Print Report
An investment company that is registered under the Investment Company Act of 1940that meets the requirements of Rule 2a-7 under the 1940 Act is permitted to hold itself o...
Tours Conducted For Amusement Are Subject To Sales Tax
October 12, 2023 - Bulletin Print Report
SC charges customers for rides in horse-drawn carriages in downtown Nashville, Tennessee. SC is licensed and regulated by the Commission. SC charges its customers based on time...
Sale Of Scientific Books By A Museum Produces UBTI
October 11, 2023 - Volume 17 Issue 194 Print Report
The organization maintains and operates an art museum devoted to the exhibition of American folk art. It operates a shop in the museum that offers for sale to the general publi...
Electronically Delivered Software Not Subject To Sales Tax
October 11, 2023 - Bulletin Print Report
TMRsubmitted a timely sales tax refund claim. The Department issued a Notice of Denial Letter. TMR is an affiliate of T-Mobile, ("TM"), and acts as a procuremen...
OTCs Are Technology Companies
October 11, 2023 - Bulletin Print Report
The Online Travel Companies, ("OTCs"), are technology companies that operate websites that enable travelers to research destinations...and request reservations... The...
Restored Pay And Allowances Not Excludible From Gross Income
October 11, 2023 - Bulletin Print Report
The issue is whether forfeited military pay that is subsequently restored to a service member pursuant to section 875 of the Uniform Code of Military Justice when a court-marti...
BMY Will Use CVRs In Connection With Its Acquisition Of MRTX
October 10, 2023 - Bulletin Print Report
Bristol-Myers Squibb, ("BMY"), and Mirati Therapeutics, Inc., ("MRTX"), announced that they have entered into a definitive merger agreement pursuant to ...
DISH Network Scores A Refund Of Penalties And Interest
October 10, 2023 - Bulletin Print Report
Washington imposes a "B&O" tax on every person that has a substantial nexus with this state...for the act or privilege of engaging in business activities. The tax...
Federal NOLs Cannot Offset Connecticut AGI
October 10, 2023 - Volume 17 Issue 193 Print Report
In 2008, the plaintiffs reported a net operating loss (NOL) of $66,044,546. As a result of the NOL, the plaintiffs sought to reduce their 2003 federal tax liability to zero and...
Taxation Of "Motor Vehicles" Is Capped
October 10, 2023 - Bulletin Print Report
In Jack's Custom Cycles, Inc. v. South Carolina Department of Revenue, 439 S.C. 35, 885 S.E.2d 433 (Ct. App. 2023), the Court of Appeals held that the te...
Food For Home Consumption Exempt From Sales Tax
October 9, 2023 - Bulletin Print Report
Company, ("C"), is a remote seller of food products and has no physical presence in Colorado, ("CO"). C does not have any retail locations. The food product...
Holidays And Holding Period
October 9, 2023 - Volume 17 Issue 192 Print Report
The taxpayer purchased a security from a registered security exchange on December 24, 1968. He made payment for and received delivery of the security on December 30, 1968, and...
Economic Substance Doctrine Precludes Alcohol Fuel Mixture Credits
October 9, 2023 - Bulletin Print Report
The "VEETC" (or the "alcohol fuel mixture credit") was available pursuant to section 6426(b) until the end of 2011 for taxpayers who created qualifying fuel...
Service Provider Ineligible For Industrial Processing Exemption
October 9, 2023 - Bulletin Print Report
S describes itselfas a "precision oncology company" established to partner "with pharmaceutical companies for cancer drug development..."S state...
AMC May Proceed With Its Restructuring Plan
October 6, 2023 - Bulletin Print Report
AMC Entertainment Holdings, Inc., ("AMC"), is now poised to implement its controversialrestructuring plan since, on August 11, 2023, the court finally approved...
Tour Bus Not A "Place Of Amusement"
October 6, 2023 - Volume 17 Issue 191 Print Report
Petitioner, (P), intends to provide bus sightseeing tours in midtown Manhattan. The tour is narrated by two guides, runs 75 minutes in duration, and follows a 4.2 mile route. T...
Habitual Late Filer Had Statutory Penalty Reduced
October 6, 2023 - Bulletin Print Report
Taxpayer is appealing the penalty assessed by the Division under Utah Code Ann. section 59-2-207, for the late filing of the annual property tax statement for the 2022 tax year...
Claims Court Incorrectly Conflated Two Tax Doctrines
October 6, 2023 - Bulletin Print Report
GSS Holdings (Liberty), Inc., ("GSS"),serves as the managing member and owner of Liberty Street Funding LLC, ("LS"). In September 2006, LS purchased a...
Consent Payment Does Not Result In "Significant Modification"
October 5, 2023 - Volume 17 Issue 190 Print Report
TP is a publicly traded and widely held corporation. S is wholly-owned by TP and is an entity disregarded as separate from TP. S has "a" series of publicly-traded exc...
Writ Of Mandamus Denied
October 5, 2023 - Bulletin Print Report
O is a school district. In June 2023, it began the process to place a new operating levy on the November 2023 general-election ballot. R.C. 5705.03 establishes the process that...
Underpayment Penalty Falls In The Face Of Substantial Authority
October 5, 2023 - Bulletin Print Report
TP's Schedule C described his business as "farmer/produce retail." TP's business in 2015 involved the sale of marijuana products. After audit, the Department...
Tardy Administrative Claim For Refund Bars Lawsuit
October 5, 2023 - Bulletin Print Report
This case concerns W's 2016 and 2018 income taxes, Those taxes were one of the subjects of W's Chapter 13 bankruptcy proceedings in the U.S. Bankruptcy Court. The I.R.S...
Is LLY's PNT Acquisition A Business Combination Or Asset Acquisition?
October 4, 2023 - Bulletin Print Report
Eli Lilly and Company, ("LLY") and POINT BiopharmaGlobal, Inc., ("PNT"), announced a definitive agreement for LLY to acquire PNT, a "radiopharmac...
Redemption Of Non-Voting Common Stock Found To Be A Distribution
October 4, 2023 - Volume 17 Issue 189 Print Report
Corporation has outstanding 150 shares of voting common stock and 1,657.8 shares of non-voting common stock. A, the President and Chairman of the Board of Directors, directly o...
"Taking" Does Not Occur When Condemnation Action Is Filed
October 4, 2023 - Bulletin Print Report
At issue in this case is whether the former owners of property that was taken by the City through eminent domain are entitled to a refund of the property taxes they paid betwee...
Taxpayer Successfully Changed His Domicile
October 4, 2023 - Bulletin Print Report
Taxpayer, ("TP"), asserts thathe was not required to file Louisiana, ("LA"), income tax returns or pay LA income tax for the Tax Years because he was...
Pledging Option Stock As Collateral
October 3, 2023 - Volume 17 Issue 188 Print Report
Company has extended Incentive Stock Options to its employees. Following exercise of an option, the employee may enter into a "Margin Account Agreement" (the Agreemen...
Theft By False Pretenses Not Established
October 3, 2023 - Bulletin Print Report
J began investing in the real estate activities of H in 2001 and continued through approximately the end of 2011. J invested through two negotiated unsecured promissory notes,...
Only Duress Can Discredit An Arm's-Length Sale
October 3, 2023 - Bulletin Print Report
The Fiscal Officer valued the subjectproperty, an automobile dealership, at $988,900 for tax year 2019. The BOE filed a complaint seeking a value of $2,450,000 with the B...
Audiometers Are Not Hearing Aids
October 3, 2023 - Bulletin Print Report
Applicant uses items, referred to as "audiometers," in its business to "test patients for possible hearing aids." Sales of hearing aids and hearing aid supp...
Starbucks Doubleshot Energy Drink Not Subject To Sales Tax
October 2, 2023 - Volume 17 Issue 187 Print Report
Petitioner's stores sell Starbucks Doubleshot Energy (SDE) coffee drinks in cans for off-premises consumption. Labels submitted by Petitioner for the drinks listed as the p...
Lease Revenues From "COAMs" Exempt From Sales Tax
October 2, 2023 - Bulletin Print Report
F owns and operates an amusement facility in Georgia that contains an arcade room... Some of the equipment used at F's facility...are classified as "coin operated amus...
Candy Is Taxed At The "Food" Rate
October 2, 2023 - Bulletin Print Report
Applicant is a business that sells various in-house made fudge, in-house made chocolate, and various other types of individual pieces of candy. It was represented that "th...
Debtor Only Entitled To "Surplus Proceeds" From Foreclosed Property
October 2, 2023 - Bulletin Print Report
After Mr. Freed, ("F"), fell behind approximately $1,100 on his property taxes, T, acting on behalf of the County, and pursuant to Michigan's "GPTA," fo...
Converting An MLP Into A REIT
September 29, 2023 - Volume 17 Issue 186 Print Report
PS is a publicly traded limited partnership that owns and operates Property. PS owns the stock of two subsidiaries, Sub 1 and Sub 2. To improve access to capital markets and fo...
Capitalized Interest Is Not Deductible
September 29, 2023 - Bulletin Print Report
SSE sells commercial, industrial, and residential electric services. H owned 96 percent of the stock and W owned the remaining four percent. H chose to have SSE be a 'C'...
Certain Penalties Not Subject To Supervisory Approval Requirement
September 29, 2023 - Bulletin Print Report
Petitioner, Piper Trucking & Leasing, LLC, is a single-member limited liability company. Employers are required to file Form W-2...and Form W-3 with the Social Security Adm...
Regulation Curing Constitutional Defect Applied Retroactively
September 29, 2023 - Bulletin Print Report
Lorillard Tobacco Company, ("LTC"), claimed a 100 percent exception to the add-back of New Jersey, ("NJ"), allocated royalties it paid to its wholly owned s...
Conversion Did Not Result In A New Obligor On The Debt Instrument
September 28, 2023 - Bulletin Print Report
LLC 1 is engaged in Business A. LLC 1 is wholly owned by LLC 2. LLC 2 is wholly owned by LLC 3. LLC 3 is "s%" owned by LLC 4, with the remaining interest held by a th...
Acquiring Control In A "Permissible" Manner
September 28, 2023 - Volume 17 Issue 185 Print Report
X and Y were corporations engaged in manufacturing. A and B, individuals, each owned 50 percent of the stock of X. A owned 25 percent of the stock of Y and X owned the remainin...
Equipment To Be Used In A Data Center Is Exempt From Sales Tax
September 28, 2023 - Bulletin Print Report
In 2014, TP began purchasing equipment to establish a data center in Virginia, ("V"). The purchased equipment was delivered to a storage facility...but not to the sit...
The Ultimate Destination Determines The Situs Of Receipts
September 28, 2023 - Bulletin Print Report
V is a global manufacturer of oleo-chemicals and personal care products. It manufactures bar soap, deodorant, and similar items at its plant in Kansas. V has no property or emp...
Deferred Fees Sourced Using The "BAP" For The Years Earned
September 27, 2023 - Bulletin Print Report
In 2017, petitioners were non-resident partners of Aristeia Holdings, L.P., ("A"). A owned 100 percent of AristeiaCapital, LLC, ("AC"), a disregarded...
Sales of Property Between "Related Parties"
September 27, 2023 - Volume 17 Issue 184 Print Report
The total stock issued by petitioner, W.A. Drake, Inc., (WD), was 4,380 shares. WD had acquired 1,176 1/3 shares which were held in its treasury. The remaining 3,203...
Botox Found Subject To Use Tax
September 27, 2023 - Bulletin Print Report
Applicant is a medical spa that offers "cosmetic injectionsThe cosmetic products are purchased from out of state and are injected by registered nurses or nurse pract...
Resident Credits Are Limited To Taxes Imposed On Income
September 27, 2023 - Bulletin Print Report
TPs were Virginia, ("V"), residents, and the husband, ("H"), was a shareholder in an 'S' corporation, ("SSC"), that paid corporate franchi...
Liberty Media's Proposed "Business Combination" With SIRI
September 26, 2023 - Bulletin Print Report
In November 2021, Liberty Media Corporation, ("LMC"), acquired sufficient additional stock in Sirius XM Holdings, Inc., ("SIRI"), to place LMC "in cont...
Gain From Sale Of Real Estate Treated As "IRD"
September 26, 2023 - Volume 17 Issue 183 Print Report
A, an individual, entered into a real estate sales contract containing a clause making the contract cancellable by either party if the borrower did not obtain a mortgage commit...
Taxpayer Was Not A "Bona Fide Non-Resident"
September 26, 2023 - Bulletin Print Report
Taxpayer, ("TP"), purchased a truck in 2018 and another truck in 2019 from a Rhode Island, ("RI") dealer and both times used a Massachusetts address. TP fil...
Connections With Virginia Did Not Prevent Domicile Change
September 26, 2023 - Bulletin Print Report
The Department of Revenue, (the "Department),determined that the taxpayer, ("TP"), was taxable as a part-year resident of Virginia, ("V") and iss...
Compression System Was Not Farm Machinery And Equipment
September 26, 2023 - Bulletin Print Report
Taxpayer, ("TP"), is an Oregon corporation engagedin the business of compressing large bales, consisting of straw, into smaller bales using a "Compression...
The Deal Survey September 2023
September 22, 2023 - The Deal Survey: September 2023 Print Report
Welcome to this month's summary of deals. Full reports on some of these transactions can be found via the link in the description, or by searching the company name in our database.
"Proportional" Payments Of Compensation Was A Disguised Dividend
September 22, 2023 - Bulletin Print Report
The Vs formed K, a C corporation, in 2003. On February 13, 2012, K sold its assets to a third party for a total sales price of $5.1 million. The buyer issued two promissory not...
Social Security Benefits Are Not An "Internal-Revenue Tax"
September 22, 2023 - Bulletin Print Report
S held the position of I.R.S. Senior Appraiser beginning on July 10, 2006. S transferred from Connecticut to Hawaii. On September 16, 2011, C, S's supervisor, received an a...
Sec. 1341 Applies To "Arrowsmith" Payments
September 22, 2023 - Volume 17 Issue 182 Print Report
A, an individual, owned 75 percent of the outstanding stock of X. X owned all of the stock of three domestic corporations. In 1976, X adopted a plan of liquidation and pursuant...
The Section 6511 Limitations Periods Are Jurisdictional
September 22, 2023 - Bulletin Print Report
On August 16, 2010, the I.R.S. prepared a substitute income tax return for Plaintiffs for the tax period ending December 31, 2008. The return resulted in an assessment of taxes...
Income From Disposition Of Property Not Treated As "IRD"
September 21, 2023 - Volume 17 Issue 181 Print Report
B, A's father, died testate on "X." During B's lifetime, B was a professional artist. At B's death, B owned a number of the paintings that B had created....
Sanitization Of Textiles Constitutes "Processing"
September 21, 2023 - Bulletin Print Report
A operates industrial facilities in Tennessee. A is in the business of leasing hygienically-clean textiles to customers for a single use. Some are new and some are used. When A...
Remedial Actions Survive The Death Of A Party
September 21, 2023 - Bulletin Print Report
After G passed away in July 2003, his wife, L, was the sole beneficial owner of the "Swiss Account." She passed away in 2021. The parties agree that she failed to tim...
Interest On A Deficiency Runs From Due Date Of Return
September 21, 2023 - Bulletin Print Report
On April 13, 2018, petitioner filed an electronic request for an extension of time within which to file her New York State personal income tax return for the tax year 2017. The...
Loss On Sale Of Bonds Not Precluded By Sec. 1091
September 20, 2023 - Volume 17 Issue 180 Print Report
Y would like to sell 98 U.S. Treasury 7 1/2 percent bonds and purchase, on the same day. 98 U.S. Treasury 8 3/8 percent bonds. The U.S. Tre...
Asset Reorganizations Implicate The Disposition-Payment Rule
September 20, 2023 - Bulletin Print Report
In 2011, TBLtransferred intangible property to an affiliated foreign corporation. The transfer occurred in the context of a reorganization. The tax treatment of TBL's...
Tax Court Petition Date Could Not Be Extended
September 20, 2023 - Bulletin Print Report
On May 23, 2022, the I.R.S. sent petitioners, by certified mail, a notice of deficiency for tax year 2019. The notice advised petitioners that they had 90 days from the date of...
Sourcing A Mutual Fund Service Provider's Receipts
September 20, 2023 - Bulletin Print Report
APP is an investment management company headquartered in Colorado. APP provides services to mutual funds. In accordance with Reg. Sec. 25137-14, APP assigned the gross receipts...
GPRE Takes A Page From MMP's "Rollup" Playbook
September 19, 2023 - Bulletin Print Report
Green Plains, Inc., ("GPRE"), owns an approximately49 percent limited partner interest and a two percent general partner interest in a publicly traded partnersh...
PENN Entertainment's Payments To ESPN Should All Be Tax-Deductible
September 19, 2023 - Bulletin Print Report
PENN Entertainment, Inc., ("PENN"), recently announced that it hadentered into an exclusive U.S. online sports bettingagreement, referred to as the "...
Husband And Wife Were Not "Living Apart"
September 19, 2023 - Volume 17 Issue 179 Print Report
Throughout 1997, Petitioner, (P), was married to MC, although the couple was "emotionally estranged." Nevertheless, P and MC both resided in the same residence (the M...
Instructional Classes Are Not Subject To Sales Tax
September 19, 2023 - Bulletin Print Report
Applicant, ("APP"), is a bakery that makes various food items, including decorative cookies. On occasion, APP will host cookie decorating classes. These classes take...
The Postmark Determines The Timeliness Of A Refund Claim
September 19, 2023 - Bulletin Print Report
T alleges the following: "On April 15, 2022, I mailed my 2018 tax return for the year ending December 31, 2018 to the defendant by certified mail. I never received my refu...
Palmer Applies To Redemption/Sale Of "ROFR" Stock
September 18, 2023 - Volume 17 Issue 178 Print Report
X is a retired executive officer of C. X was a participant in C's executive stock purchase plan (the Plan). X has entered into 14 different stock restriction agreements in...
"ESBTs" Can Carry Over NOLs
September 18, 2023 - Bulletin Print Report
An 'S' corporation incurred a net operating loss, ("NOL"), that it passed through to its sole shareholder, an electing small business trust, ("ESBT"...
Capital Loss Induced Refund Request Was Timely Filed
September 18, 2023 - Bulletin Print Report
Taxpayer, ("TP"), is an out-of-state corporation. TP conducts business in Indiana. TP submitted an amended 2017 tax return calling for a refund of income tax. The Dep...
Section 404A Plans Are Not "Qualified Retirement Plans"
September 18, 2023 - Bulletin Print Report
G filed for Chapter 7 bankruptcy on May 11, 2021. G claimed an exemption for the Fund. The Fund is a Registered Retirement Savings Plan, ("RRSP"), organized under Can...
Transfer Of Legal Title Not A "Disposition" Of Option Stock
September 15, 2023 - Volume 17 Issue 177 Print Report
Following the exercise by an employee of an Incentive Stock Option, (ISO), such employee may enter into a "street name arrangement" with a brokerage firm....
Post-Production Expenses Are Not A Factor In Valuation
September 15, 2023 - Bulletin Print Report
Antero Resources Corporation,("A"),asks us to return to the issues we considered in Steager v. Consol. Energy, Inc., 242 W.Va. 209 (201...
Target Granted An Extension To Make A "Safe Harbor" Election
September 15, 2023 - Bulletin Print Report
TP, a publicly held corporation, entered into a merger agreement dated Date 4. TP had no majority shareholder. TP was acquired in a reverse triangularmerger with Merger S...
"D&O" Insurance Proceeds Excluded From A REIT's Gross Income
September 15, 2023 - Bulletin Print Report
TP is a real estate investment trust, ("REIT"). P is a publicly traded REIT which owns an "a"% indirect interest in TP through OP. On Date 2, C and P entere...
TNET Raises The Possibility Of Constructive Dividends
September 14, 2023 - Bulletin Print Report
TriNet Group, Inc., ("TNET"), is engaging in a massive, nearly $1 billion, stock repurchase which has some unusual features, most notablyfrom a federal income t...
Informal Claims for Refund
September 14, 2023 - Volume 17 Issue 176 Print Report
During 2005, petitioners sold real property located in California that resulted in a capital gain of $425,330, while they were N.Y. residents. &...
"Development Rights" Are Real Property
September 14, 2023 - Bulletin Print Report
TP is a limited partnership. TP owns Property 1, located in City A, State Z, through one of its disregarded entities, DE 1. Property 1 has been held for productive use in a tra...
Failure To Provide Sufficient Notice Upends A Tax Sale
September 14, 2023 - Bulletin Print Report
W, a New Jersey resident,is the record owner of a residential property located in Pennsylvania. W owed delinquent taxes for tax year 2019. On June 26, 2021, the Bureau se...
Smurfit Kappa And WestRock Propose A Business Combination
September 13, 2023 - Bulletin Print Report
The boards of directors of paper manufacturersSmurfit Kappa Group plc, ("S"), and WestRock Company, ("W"), recently announced the signing of a definit...
Involuntary Conversion By Destruction And Condemnation
September 13, 2023 - Volume 17 Issue 175 Print Report
The taxpayer owned improved real estate that it used in its trade or business in City X. Dangerous chemicals were released in the city where the taxpayer's property was loc...
Threshold Rejection Of Whistleblower's Cannot Be Reviewed
September 13, 2023 - Bulletin Print Report
On February 25, 2020, petitioner, ("P"), filed with the WBO Form 211. P alleged that Targets had engaged in money laundering through real estate transactions. On June...
No Credit Permitted For Taxes Paid By Another Consumer
September 13, 2023 - Bulletin Print Report
In 2013, PCM contracted with the Daimler Group for the construction of a data center in New Albany, Ohio. In 2016, after construction was complete, the tax commissioner commenc...
A Merger In Which Each Constituent Serves As The "Acquirer"
September 12, 2023 - Bulletin Print Report
Bank of California, Inc., ("BANC"), and PacWest Bancorp, ("PACW"), two West Coast stalwarts who have been punishedin the wake of the Silicon Valley Ba...
SJM's Stock Will Be Taxable To TWNK's Shareholders
September 12, 2023 - Bulletin Print Report
Hostess Brands, Inc., ("TWNK"), announced that it has entered into a definitive agreement with the JM Smucker Company, ("SJM"), in connection with which the...
Taxpayer Involuntarily Disposed Of Option Stock
September 12, 2023 - Volume 17 Issue 174 Print Report
In June 1973, X granted an option to purchase shares of its common stock to the taxpayer who was one of its employees. The option satisfied the qualified stock option requireme...
The "SCDF" Was Not A Component Of "Sales Price"
September 12, 2023 - Bulletin Print Report
J sold NGL it produced from gas wells to EP under the terms of the Purchase Agreement. Gas from wells operating prior to June 1, 2012, was classified as "Base Production;&...
Tax Sale Found To Be Invalid
September 11, 2023 - Bulletin Print Report
On October 1, 2015, the County assessed the property in the name of "LW," the property's owner at that time. Three months later, LW conveyed the property to C, wh...
Accrual Delayed By A Condition Subsequent
September 11, 2023 - Volume 17 Issue 173 Print Report
TP is a multiple-employer VEBA formed by P Corporation, (P), in Year 1. T is a simple trust operating as a welfare benefit fund and was formed by P in Year 2....
Insurance Policy Covered Opioid Costs
September 11, 2023 - Bulletin Print Report
MD is a wholesale distributor of pharmaceutical drugs. C insured MD under a claims-made liability policy. The policy provides for reimbursement of defense costs and for liabili...
Non-Dealer Ineligible To Use The "Resale" Exception
September 11, 2023 - Bulletin Print Report
DK formed KC LLC to purchase, modify, and resell automobiles. DK obtained an investor, LH, to contribute to his business plan, and they began buying cars and titling them in Mo...
FASB Will Alter The Accounting For "Crypto" Assets
September 8, 2023 - Bulletin Print Report
The Financial Accounting Standards Board, ("FASB"), has reached final decisions on the controversial topic of accounting for so-called "crypto assets." It a...
DRE And Member Are Separate And Distinct Trades Or Businesses
September 8, 2023 - Volume 17 Issue 172 Print Report
LLC was previously a subsidiary of Company that converted, in Year A, to a limited liability company, whose sole member is Company. LLC has not made an election under Reg. Sec....
Exception of "No Cause Of Action" Denied
September 8, 2023 - Bulletin Print Report
The Department of Revenue, (the "Department"), claims that the Taxpayer, ("TP"), owes sales taxes on Hotel rooms and poolside cabanas furnished and rented t...
Excess Tax Sale Funds Are Personal Property
September 8, 2023 - Bulletin Print Report
On May 15, 2015, the City of Atlanta filed a demolition lien against a certain parcel of real property. The record shows that JL was the record owner of the property at the tim...
Bloomberg Article On Spin-Offs Does Not Make Any Sense
September 7, 2023 - Bulletin Print Report
We feel compelled to respond to a Bloomberg Intelligencer article in which the author speculates that the I.R.S. is preparing to "attack" and "retroactively tax&...
Dividends Indirectly Derived From Debt Financed Property Not UBTI
September 7, 2023 - Volume 17 Issue 171 Print Report
Y is a tax-exempt organization recognized under Sec. 501(c)(3) of the Code. Y intends to form a corporation in Foreign Country ("C") for the purpose of facilitating a...
Receipts From Wholesale Sales Included For "CAT" Purposes
September 7, 2023 - Bulletin Print Report
The typical transaction at issue in this case goes as follows. A customer approaches a dealer, (the "transferee dealer"), about purchasing a specific vehicle, for exa...
Intangible Assets Must Be Removed From The Taxable Value Of Realty
September 7, 2023 - Bulletin Print Report
The Westin St. Francis, ("WSF") is the third largest hotel in San Francisco. The hotel consists of two buildings on two lots. C operates the hotel pursuant to a manag...
"Operational Term Payments" Were Qualifying REIT Income
September 7, 2023 - Bulletin Print Report
TP, a real estate investment trust, ("REIT"), owns or controls timberlands. TP has entered into an agreement, (the "Agreement"), with SU under which SU pays...
TransAlta's Stock Appears To Be Taxable To U.S. Holders
September 6, 2023 - Bulletin Print Report
TransAlta Corporation, ("TAC"), owns approximately sixty percent of the outstanding stock of TransAlta Renewables, Inc., ("RNW"). Each of TAC and RNWi...
ICE And BKI Finally Close Their Deal
September 6, 2023 - Bulletin Print Report
It has taken quite a while but, finally, Intercontinental Exchange, Inc., ("ICE"), was grantedpermissionto complete its acquisition of Black Knight, Inc.,...
Reciprocal Options Do Not Cause A Present Sale
September 6, 2023 - Volume 17 Issue 170 Print Report
X is an 'S' corporation. X and A propose to enter into an agreement that provides options to both parties that, at a future date, may result in the transfer of ownershi...
REGN's CVRs Helped To Land DBTX
September 6, 2023 - Bulletin Print Report
The use of contractual contingent value rights, ("CVRs"), to bridge valuation gaps has become almost standard operating procedure in the world of health care acquisit...
Animal Vaccines Are Exempt "Drugs"
September 5, 2023 - Bulletin Print Report
This letter is in reply to your request on behalf of the Taxpayer regarding the Virginia retail sales and use tax application to certain animal vaccines. The Taxpayer requests...
FASB Seeks To Impose "Robust" Income Tax Disclosure Requirements
September 5, 2023 - Bulletin Print Report
It is virtually impossible, under the current state of income tax reporting, to determine the amount of income taxes a company actually pays during a given taxable year with re...
"Regulated Public Utility Exception" Did Not Apply
September 5, 2023 - Volume 17 Issue 169 Print Report
H and W and their three grandchildren owned all the stock in S, an 'S' corporation. For 1977 and years prior, S owned a 19.59652 percent working interest in an oil prod...
Loan Participations Were Not "Securities"
September 5, 2023 - Bulletin Print Report
M was a drug testing company. In March 2012, defendants executed a credit agreement (the "2012 Credit Agreement") providing M with a term loan and revolving loan. &qu...
UBS Made A "Bargain Purchase"
September 1, 2023 - Bulletin Print Report
It has now been several months since the closing of the historic acquisition by UBS Group AG of troubledCredit Suisse AG. Upon the closing of the transaction, each outsta...
"Additional Consideration" Spoils A 'B' Reorganization
September 1, 2023 - Volume 17 Issue 168 Print Report
A was the sole shareholder of Y, and was the guarantor on an unsecured note of Y in the principal amount of $200x issued to Z, an unrelated party, in exchange for a loan....
Amended Return Constituted A Claim For Refund
September 1, 2023 - Bulletin Print Report
Petitioner's representative, C, filed petitioner's Original 2017 Louisiana Individual Income Tax Return, (the "OR"), on June 19, 2020. The OR showed a balance...
Retirement Income Not Exempt From State Income Tax
September 1, 2023 - Bulletin Print Report
Taxpayer, ("TP"), argues that the income for the tax years at issue is from a "retirement system for retirees of the United States Government." It is undisp...
"COI" and "COBE" Found To Exist
August 31, 2023 - Volume 17 Issue 167 Print Report
T is a holding company which, through its subsidiaries, is engaged in Business P and in Business D. T has three classes of stock outstanding: Class A voting common stock owned...
Taxpayer Properly Fell Within The "Amusement" Classification
August 31, 2023 - Bulletin Print Report
Petitioner is a limited liability company that runs a jeep tour business. Petitioner's jeep tour business operates by taking customers on jeep tours in the desert surroundi...
On-Demand Air Carrier Not Eligible For Sales Tax Exemption
August 31, 2023 - Bulletin Print Report
TP is an air carrier authorized by the Federal Aviation Administration, ("FAA"),to operate...in Virginia. As a result of an audit by the Department, TP was asse...
Issuance Of Check "Moots" Refund Lawsuit
August 31, 2023 - Bulletin Print Report
J produces Tezos tokens, a form of cryptocurrency, through a process known as "staking." As J sees it, he owes taxes on the tokens only when he sells or transfers the...
Calculating A Creditor's Holding Period In Repossessed Property
August 30, 2023 - Volume 17 Issue 166 Print Report
A small group of investors, termed the LO, has leased a parcel of land to corporate taxpayer, the LE. The LO is entitled, upon the LE's default, to repossess the land and t...
Service Charges Includible In Retailer's Gross Receipts
August 30, 2023 - Bulletin Print Report
APP is engaged in the business of providing election services and/or products, including ballot administration. APP's customers contract with APP to administer elections an...
Use Restrictions Are Not Real Or Tangible Personal Property
August 30, 2023 - Bulletin Print Report
The subject property is comprised of a use restriction, a right of first refusal, and a reservation of mineral rights related to real property. C conveyed title of the land and...
Credit For Taxes Paid To California Denied
August 30, 2023 - Bulletin Print Report
The issue is whether TPs are entitled to a credit against their New Mexico taxes for taxes paid to California. TPs have income from numerous sources. TPs have rental properties...
KIM Agrees To Annex RPT
August 29, 2023 - Bulletin Print Report
Kimco Realty Corporation, ("KIM"), and RPT Realty, ("RPT"), are each real estate investment trusts, ("REITs"), for federal income tax purposes and...
Notice Of Deficiency Was Timely Issued To Joint Filers
August 29, 2023 - Bulletin Print Report
All of the Ss'tax returns from 1999 through 2003, and from 2005 through 2014, were filed as joint returns. The tax return at issue in this case is the Ss' 2004 ta...
Marketplace Facilitator Need Not Collect And Remit Use Tax
August 29, 2023 - Bulletin Print Report
Applicant, ("APP"),is a California based section 501(c)(3) non-profit organization and marketplace facilitator. APP provides a marketplace platform exclusively...
"Mind Body" Classes Subject To NYC Sales Tax
August 29, 2023 - Volume 17 Issue 165 Print Report
Petitioner, (P), operates several facilities in New York City (NYC). These facilities provide instruction in yoga as well as a variety of classes that are included as part of a...
Cook County's Lost Tax Revenues Cannot Be Recouped
August 28, 2023 - Bulletin Print Report
Cook County, ("CC"), contends that a number of banks operating in northern Illinois made credit too readily available to some borrowers, who defaulted, and then forec...
Where The "Historical" Shareholder Dissolves
August 28, 2023 - Volume 17 Issue 164 Print Report
P owned all of the stock of S for over five years during which time P has been engaged in the manufacture and sale of wire products and S has also been engaged in the active co...
Member Must Report Disregarded Entity's COD Income
August 28, 2023 - Bulletin Print Report
P was the sole member of S, a single member limited liability company. S ceased to exist in approximately May 2008. It was a disregarded entity, ("DRE"), for federal...
A State May Tax All Income Of Its Residents
August 28, 2023 - Bulletin Print Report
Taxpayers, husband and wife, filed Virginia resident tax returns for the 2018 through 2020 taxable years, claiming subtractions for distributions taken from retirement accounts...
Section 355(a) Is Not Elective
August 25, 2023 - Bulletin Print Report
Section 355(a) of the Internal Revenue Code Code provides, in pertinent part, that "If a corporation...distributes to a shareholder, with respect to its stock...solely sto...
Receiving Stock Of A Successor To The Issuer Of "CVRs"
August 25, 2023 - Volume 17 Issue 163 Print Report
FA, an FC corporation, uses the accrual method of accounting. FA wished to acquire T, the domestic common parent of a consolidated group of corporations using the accrual metho...
Property Used In A Production Activity Is Exempt From Sales & Use Tax
August 25, 2023 - Bulletin Print Report
The Court of Special Appeals ruled that Potomac Edison Co., ("PE"), processing activities were performed within the statutory definition of "production activity....
Debtor's Tax Refund "Attributed To" Refundable Credits
August 25, 2023 - Bulletin Print Report
Debtor filed his Chapter 7 bankruptcy petition on September 28, 2021. A tax refund comes from tax "payments," including refundable credits and other payments such as...
FASB Standardizes Accounting For Joint Venture Formations
August 24, 2023 - Bulletin Print Report
Accounting Standards Update, ("ASU"), 2023-25, "Business Combinations--Joint Venture Formations" (Subtopic 805-60) Recognition and Initial Measurement, fill...
The Deal Survey August 2023
August 24, 2023 - The Deal Survey: August 2023 Print Report
Welcome to this month's summary of deals. Full reports on some of these transactions can be found via the link in the description, or by searching the company name in our database.
PR And ESTE To Engage In A "Two-Party" 'A' Reorganization
August 24, 2023 - Bulletin Print Report
Permian Resources Corporation, ("PR"), and Earthstone Energy, Inc., ("ESTE"), announced that they have entered into a definitive agreement under which PR wi...
First Prong Of "All Events" Test Not Satisfied
August 24, 2023 - Volume 17 Issue 162 Print Report
GE owns supermarkets and pharmacies under the name "GE" and gas stations and convenience stores under the names "GG" and "GEE." During the years a...
FBAR Conviction Upheld On Appeal
August 24, 2023 - Bulletin Print Report
The Bank Secrecy Act requires many citizens and residents to report financial relationships and transactions with foreign banks. See 31 U.S.C. section 5314(a).Citizens an...
Taxes For Late Filed Returns Are Not Dischargeable
August 23, 2023 - Bulletin Print Report
On August 12, 2020, the Court confirmed the Debtor's plan...which she successfully completed, and on March 31, 2023, the Court entered an order granting the Debtor a discha...
When Is Deferred Compensation A "Payroll Expense?"
August 23, 2023 - Volume 17 Issue 161 Print Report
Petitioner, ("P"), inquires whether nonqualified deferred compensation earnings are considered taxable for purposes of the Metropolitan Commuter Transportation Mobili...
Tax Court Unable To Order Refund Of Overpayment
August 23, 2023 - Bulletin Print Report
Petitioner did not timely file a Federal income tax return for 2015. The I.R.S. prepared a substitute for return, ("SFR"), and, on April 5, 2021, issued petitioner a...
Trust Entitled To A Section 642(c)(1) Deduction
August 23, 2023 - Bulletin Print Report
Decedent created Trust on Date 1 and died on Date 2. Decedent owned an individual retirement account, ("IRA"), at the time of his death, which named Trust as the sole...
JNJ Announces Results of KVUE Exchange Offer
August 22, 2023 - Bulletin Print Report
Johnson & Johnson, ("JNJ"), is now poised to complete the "split-off" of its subsidiary, Kenvue, Inc., ("KVUE"). The exchange offer though whi...
Leased Apartments Not "Taxable Premises"
August 22, 2023 - Volume 17 Issue 160 Print Report
Petitioner, (P), which owns retail stores throughout the world, maintains its principal offices in New York City. It is necessary for it to call to this City, from time to time...
Student Loan Discharged In Bankruptcy
August 22, 2023 - Bulletin Print Report
In 2010 and 2011, A obtained two loans from Bank of North Dakota, ("BND"),to attend GU. A graduated with an associate degree of applied medical science in Decem...
Informal Claim For Refund Insufficient To Waive Sovereign Immunity
August 22, 2023 - Bulletin Print Report
JP created the Trust on February 26, 2002, and subsequently conveyed his home, (the "Property"), to the Trust for a term of five years. P, the son of JP, was the sole...
Disregarding Transitory Steps
August 21, 2023 - Volume 17 Issue 159 Print Report
X, a State C banking corporation, has outstanding 2,000x shares of common stock which were publicly-held. X has decided that its stock should be owned directly by a c...
Transferred Property Included In Gross Estate
August 21, 2023 - Bulletin Print Report
Decedent died on August 30, 2014. SW, Decedent's daughter, was appointed the personal representative of Decedent's estate on September 25, 2014.A Maryland estate...
COD Income Or Gain?
August 21, 2023 - Bulletin Print Report
In 2012, E was an 'S' corporation. P was the 100 percent shareholder of E. E was the sole member of the PLF entities, treated as disregarded entities. The PLF entities...
The "California Method" Strikes Again
August 21, 2023 - Bulletin Print Report
The Franchise Tax Board, ("FTB"), accepted APPs' assertion that they were part-year residents of California during the 2018 taxable year. Part-year residents are...
DINO Agrees To "Roll Up" HEP
August 18, 2023 - Bulletin Print Report
HF Sinclair Corporation, ("DINO") owns a 47 percent limited partner interest in Holly Energy Partners, L.P., ("HEP").and a non-economic general partne...
ET And CEQP To Engage In An "Assets-Over" Merger
August 18, 2023 - Bulletin Print Report
Energy Transfer L.P. ("ET"), and Crestwood Equity Partners L.P., ("CEQP"), each a publicly traded partnership, announced that the parties have entered into...
Effects Of Liquidating An "Insolvent" Subsidiary
August 18, 2023 - Volume 17 Issue 158 Print Report
P is a State X corporation the stock of which is widely held and publicly traded. FS is a Country Y corporation which was formerly engaged in retailing consumer electronic merc...
The Section 4980H Exaction Is A "Tax"
August 18, 2023 - Bulletin Print Report
The Affordable Care Act, ("ACA"), contains both an individual mandate and an employer mandate. The employer mandate requires "large employers" to give full...
Exercising Stock Option With Previously Acquired Stock
August 17, 2023 - Volume 17 Issue 157 Print Report
A corporation has both a qualified stock option plan and a nonqualified stock option plan. An employee who exercises an option granted under the nonqualified plan may pay for t...
Taxpayer Permitted To Contest Revocation Of Homestead Exemption
August 17, 2023 - Bulletin Print Report
In 2003, H purchased a home, (the "subject property"). In 2007, he applied for, and received, a homestead exemption on the subject property. Generally, an application...
Tax Credit Denied For Lack Of "Notice" And "Registration"
August 17, 2023 - Bulletin Print Report
Taxpayers, ("TPs"), claimed an overpayment for the 2013 Tax Period, in part based on their claim for the Motion Picture Investment Tax Credit, ("MPITC"). Th...
Baseball Team's Promotional Items Not Eligible For Resale Exemption
August 17, 2023 - Bulletin Print Report
P was a professional baseball team. The team's stadium is owned by City, and P rents the property from City. Texas imposes a tax upon each sale of a taxable item in this st...
FIS's Tax Problem Will Be Mitigated By "Leveraged Partnership" Technique
August 16, 2023 - Bulletin Print Report
In 2019, to much fanfare, Fidelity National Information Services, Inc., ("FIS"), acquired all of the outstanding stock of Worldpay, Inc., ("WP"). The acquis...
Luxury Box Not Used For Commercial Activity
August 16, 2023 - Volume 17 Issue 156 Print Report
Petitioner, (P), is a national accounting firm with offices in New York City. From 1974-1985, P was a party to a series of three-year agreements with the operator of Madison Sq...
Holding Company Properly Excluded From New York Combined Return
August 16, 2023 - Bulletin Print Report
LL is a publicly traded Australian corporation that conducts business operations in numerous countries. LLAH, a Delaware corporation, wholly owns a group of subsidiaries (colle...
Sales Factor Properly Used To Apportion "Tax Base"
August 16, 2023 - Bulletin Print Report
The MBTAimposed "a business income tax on every taxpayer with business activity within this state..." For companies operating in multiple jurisdictions, the MBT...
CLF And X: Forward Or Reverse Merger Proposed?
August 15, 2023 - Bulletin Print Report
Cleveland-Cliffs, Inc., ("CLF"),decided to go public with an offer it previously made exclusively to the Board of Directors of the United States Steel Corporati...
Novartis Breathes Life Into The "Open Transaction" Doctrine
August 15, 2023 - Bulletin Print Report
Companies with products and/or processes that are still in the developmental stage, and have not yet attainedcommercial viability, are notoriously difficult to value. Whe...
Recalculating Gross Profit From An Installment Sale
August 15, 2023 - Volume 17 Issue 155 Print Report
In 1969, a taxpayer sold shares of stock having an adjusted basis of $40,000 for $100,000 and elected to report his gross profit of $60,000 from the sale on the installment met...
Fracking Equipment Exempt From Sales Tax
August 15, 2023 - Bulletin Print Report
S is in the fracking business. Fracking is a process that entails pumping a pressurized mixture of...into the earth to fracture...rock formations and extract oil and gas. At is...
Rescinded Sale Does Not Interrupt Holding Period
August 14, 2023 - Volume 17 Issue 154 Print Report
Trust X (TX) acquired Farm Y (FY) on December 31, 1951. On September 9, 1974, TX sold FY to T, the trustee of TX, for a total sales price that was less than the appraised value...
Tax Court Had Jurisdiction To Review "WB's" Action
August 14, 2023 - Bulletin Print Report
Section 7623 provides for awards to individuals who supply information to the Government about third parties who have underpaid their taxes or otherwise violated the internal r...
Operated Rentals Are Subject To Sales Tax
August 14, 2023 - Bulletin Print Report
TP rents audio equipment to customers for use in concerts, festivals, meetings, and other events. TP's rentals can be categorized into two general groups: rentals of bare e...
A "Refinancing" Does Not Require The Same Borrowers
August 14, 2023 - Bulletin Print Report
An individual acquired four condominium units...by four separate deeds. Each unit was encumbered by a different deed of trust with different lenders. The four units were transf...
AVID Is A "Loss Corporation"
August 11, 2023 - Bulletin Print Report
Avid Technology, Inc., ("AVID"), is the subject of a leveraged buy-out, ("LBO"). It recently announced that it has entered into a definitive agreement to be...
Alaska Taxes Some Dividends Received By Foreign Corporations
August 11, 2023 - Volume 17 Issue 153 Print Report
Schlumberger Limited (SL) is incorporated in the Netherlands Antilles. Its only service is the management of its subsidiaries; it receives fees for this service. It also receiv...
Who Bears The Burden Of Estate Tax On Non-Probate Property?
August 11, 2023 - Bulletin Print Report
On March 12, 2018, B signed his last will and testament, (the "Will"). In his Will, B appointed S as executor of his estate. The Will bequeathed $100,000 to S. It pro...
Change Of Domicile Is "Part Of A Process"
August 11, 2023 - Bulletin Print Report
The Department of Revenue, (the "Department"), concluded that TP was taxable as a domiciliary resident of Virginia. TP appeals, contending she was a resident of State...
Asset Sale Did Not Accelerate Deferred Compensation Deductions
August 10, 2023 - Bulletin Print Report
H is a limited partnership formed in 2000 to acquire an N.B.A. franchise, the Vancouver Grizzlies, which later became the Memphis Grizzlies. In October 2012, H sold the Grizzli...
Museum's Gift Shop Sales Do Not Generate UBTI
August 10, 2023 - Volume 17 Issue 152 Print Report
Y is exempt from tax under Sec. 501(c)(3) of the Code. Y's purposes include operation of a museum and research center that provides a location to receive and display materi...
The "SRP" Is Found To Be A "Tax Measured By Income"
August 10, 2023 - Bulletin Print Report
From 2014 to 2018, the Affordable Care Act's "individual mandate" instructed most Americans to purchase health insurance. See section 5000A(a). Abstainers paid a...
Resort Considered Commercial Property
August 10, 2023 - Bulletin Print Report
The "Resort" is comprised of 109 condominium units that contain 5,688 timeshare fractional interests under the Tennessee Timeshare Act. Timeshare fractional interests...
DISH And SATS Will Become One
August 9, 2023 - Bulletin Print Report
The Ergen family has long enjoyed a controlling interest in each of DISH Network Corporation, ("DISH"), and EchoStar Corporation, ("SATS"). Approximately fo...
Trailers Not Eligible For Sales Tax Exemption
August 9, 2023 - Bulletin Print Report
B sold "trailer type vehicles" to non-Wisconsin residents, who did not use the trailers in Wisconsin. Each of the trailers was designed to be used in conjunction with...
Lack Of Employees Does Not Preclude Finding Of Active Business
August 9, 2023 - Volume 17 Issue 151 Print Report
D is an 'S' corporation. A and B each directly own "a%" of the equity ownership interests of D. The remaining "b%" of the equity ownership interests...
Refunds Belong To Working Spouse
August 9, 2023 - Bulletin Print Report
The debtor and his wife filed a joint tax return for 2022. On February 2, 2023, the debtor filed his Chapter 7 bankruptcy petition. He is the primary wage earner for the family...
Purging Sec. 306 Stock
August 8, 2023 - Volume 17 Issue 150 Print Report
X corporation (X) has outstanding Class A nonvoting common stock, Class B voting common stock, and nonvoting preferred stock. The preferred stock was limited and preferred as t...
Termination Of Insurance Policy Gave Rise To Income
August 8, 2023 - Bulletin Print Report
P resided at his home, (the "SMP"), through February 16, 2017. The SMP was left vacant until September 15, 2017. As of that date through the end of 2017, P rented the...
Resale Exception To Use Tax Not Available
August 8, 2023 - Bulletin Print Report
K was a part owner of SP, which enhanced high-performance cars and made them faster. K started a new side business that would purchase, modify, and resell automobiles. He forme...
Hot Tub/Spa Not Exempt From Gross Retail Tax
August 8, 2023 - Bulletin Print Report
Taxpayer protests the Indiana Department of Revenue's (the "Department") denial of his claim for refund of the sales tax paid on the purchase of a spa. The taxpay...
Patent Infringement Suit Legal Expenses Are Deductible
August 7, 2023 - Bulletin Print Report
The Hatch-Waxman Act, ("HWA"), established an expedited process for obtaining FDA approval to sell generic drugs. Generic manufacturers could now file an Abbreviated...
Sales Tax Was Not Overpaid
August 7, 2023 - Bulletin Print Report
Taxpayer, ("TP"), is an individual who purchased a vehicle in Indiana and paid sales tax at the time of purchase. TP'svehicle was transported to his home st...
Foreign Corporation Not Included In Kentucky Consolidated Return
August 7, 2023 - Volume 17 Issue 149 Print Report
AT&T (T) is organized under the laws of New York and has hundreds of subsidiaries across the nation. Approximately 20 were located in Kentucky (KY). The subsidiaries not lo...
Horse Farm Activity Fell Short Of A Trade Or Business
August 7, 2023 - Bulletin Print Report
The issue in this appeal involves the Department's disallowance of expenses for a horse farm that Taxpayers claimed on their Schedules F. The Department contends that the h...
Refund Of Sales Tax Denied Art Dealer
August 4, 2023 - Volume 17 Issue 148 Print Report
Petitioner, (P), is art gallery located in New York City. On or about September 9, 2003, P acquired what was purported to be a Max Ernst painting (the Painting) from GDM for th...
Basis Adjustment Attributable To "Bonus Depreciation" Was Permitted
August 4, 2023 - Bulletin Print Report
H was a partner in a partnership that placed equipment in service in 2009. Fixed date conformity, ("FDC"), additions and subtractions for bonus depreciation were clai...
Health Care Services Were "Sitused" To Ohio
August 4, 2023 - Bulletin Print Report
TRC'sprimary service is dialysis treatment and education. TRC asserted that laboratory testing services and healthcare provider services were performed out of state,...
I.R.S. Identifies "MISTs" As A "Listed Transaction"
August 4, 2023 - Bulletin Print Report
It will come as no surprise that gross income includes, among many other things,"gains from dealings in property." See section 61(a)(3) of the Code. In general,...
Senior Living Facilities Are Health Care Properties
August 3, 2023 - Volume 17 Issue 147 Print Report
TP elected to be taxed as a REIT. TP is in the business of owning and leasing senior housing and healthcare related real estate. In Year 2, TP acquired an ownership interest in...
No Assessable Leasehold Interest Was Found
August 3, 2023 - Bulletin Print Report
The subject parcel is a leasehold interest in a public parking garage which was constructed in 2016. Respondent valued the leasehold interest at $6,896,400. Respondent issued a...
CSC's Capital Loss Is Being Questioned By The I.R.S.
August 3, 2023 - Bulletin Print Report
CSC was the U.S. parent of a group of corporations that joined in the filing of a consolidated Federal income tax return. In July 2007, CSC acquired all of the stock of COV. As...
Challenge To Amended Section 6050I Is Premature
August 3, 2023 - Bulletin Print Report
Plaintiffs, ("Ps"), are regular users of crypto currency. Ps seek declaratory relief against the enforcement of section 6050I. In 2021, the Infrastructure Investment...
NEWR Will Engage In A "Parent-Subsidiary" LBO
August 2, 2023 - Bulletin Print Report
On July 31, 2023, New Relic, Inc., ("NEWR"), announced it had entered into an Agreement and Plan of Merger with Crewline Buyer, Inc., ("Parent"), and Crewli...
Sports Clubs Not Part Of Lodging Facilities
August 2, 2023 - Volume 17 Issue 146 Print Report
TP intends to elect to be taxed as a REIT. TP was formed to acquire a portfolio of hotels. TP's acquisition of the hotels will be effectuated by a contribution of the prope...
Transfer Of Ownership Found To Have Occurred
August 2, 2023 - Bulletin Print Report
In 2007, the parents formed P, a limited liability company. P's assets include two residential rental properties. In 2014, the parents assigned 100 percent of their interes...
Sales Tax Paid Twice On The Same Purchase
August 2, 2023 - Bulletin Print Report
TP is an Arkansas, ("AK"), resident who chose to purchase a car from an Indiana dealership. The dealership charged TP Indiana sales tax at TP's home state's r...
Warrants Are Securities Which Have No Principal Amount
August 1, 2023 - Bulletin Print Report
Historically, stock purchase warrants were neither "stock" nor "securities" for tax purposes. Thus, when warrants were received in a non-recognition transac...
Condominium Units To Be Combined Taxed At Lower Rate
August 1, 2023 - Volume 17 Issue 145 Print Report
Petitioners have entered into a Purchase Agreement (the Agreement) for the purchase of three adjacent condominium units (the Property) which they intend to combine into a singl...
A Tax Sale Is Not A "Judicial" Sale
August 1, 2023 - Bulletin Print Report
The United Department of Housing and Urban Development has two deeds of trust on a Missouri home. They were security for home-equity loans taken out by a couple that previously...
The Processing And Storage Of Wine Is "Agriculture"
August 1, 2023 - Bulletin Print Report
APP owns a stretch of land in TC. The majority of the property comprises 63 acres. This parcel is made up entirely of vineyards. In 2018, the TC Auditor created two new parcels...
OID Accruals Were Investment Interest
July 31, 2023 - Bulletin Print Report
Petitioner, ("P"), is an attorney. He has been involved in real estate activities for many years. IM is a limited partnership of which P was a member. XWD is a single...
Section 6213(a)'s Deadline Is Not Jurisdictional
July 31, 2023 - Bulletin Print Report
In 2015, I and D each received $8,826.30 to settle a lawsuit. The I.R.S. mailed a notice of deficiency. The I.R.S. levied on their property. The Cs filed a petition in the Tax...
Bank Can Deduct Discount On Mortgage Prepayment
July 31, 2023 - Volume 17 Issue 144 Print Report
The taxpayer is a domestic savings and loan association. With interest rates higher in the 1980s as compared to earlier years, the taxpayer offered discounts on an individual b...
Louisiana Basis And Federal Basis Diverge
July 31, 2023 - Bulletin Print Report
Ps arethe sole shareholders of BJF, (the "Corporation"). The Corporation is an 'S' corporation. For the 2019 tax year, the Corporation sold a commercial...
"Unclean Hands" Doctrine Was Not Applicable
July 28, 2023 - Bulletin Print Report
With respect to P's Federal income tax for 2013 and 2017, the I.R.S. determined deficiencies...plus accuracy related penalties. The deficiencies are attributable to short-...
Musician Subject To New York State MCTMT
July 28, 2023 - Volume 17 Issue 143 Print Report
Petitioner, (P), is a nonresident musician who has been touring and making albums for many years. He currently performs several times a year in the metropolitan commuter transp...
Transfer Of Ground Lease Subject To D.C. Tax
July 28, 2023 - Bulletin Print Report
The Archbishop of Washington is the owner of land at 1717 Rhode Island Avenue, N.W. In 2002, the Archbishop and M entered into an agreement for the lease of the land to M until...
"Lev Par" Is An Antidote For A Low Basis
July 28, 2023 - Bulletin Print Report
Fidelity National Information Services, Inc., ("FIS"), in 2019, acquired Worldpay, Inc., ("W"), in a cash and stock deal for well north of $30 billion. The...
Is Goodwill a Capital Asset?
July 27, 2023 - Volume 17 Issue 142 Print Report
During Year 1 through Year 2, TP, a C corporation, operated a "b" business consisting of three separate divisions: X, Y, and Z....
Sovereign Immunity Waiver Was Not "Unequivocally Expressed"
July 27, 2023 - Bulletin Print Report
The I.R.S. concluded that WA owed a tax deficiency and it undertook efforts to collect that amount. WI was involved in that effort. WA learned that the I.R.S. had levied and ga...
The Theft Loss Deduction Has Been Suspended
July 27, 2023 - Bulletin Print Report
In December 2010, plaintiffs became the owners and operators of FP. FP, operating online, sold raw pet food. In October 2014, G moved the business to Florida, registering the b...
PACW Will Be The "Accounting Acquirer"
July 26, 2023 - Bulletin Print Report
Bank of California, Inc., ("BANC"), and PacWest Bancorp, ("PACW"), have announced the signing of a definitive merger agreement pursuant to which the compani...
Registering Shares With The S.E.C.
July 26, 2023 - Volume 17 Issue 141 Print Report
Pursuant to a plan of reorganization which qualified under Sec. 368(a)(1) of the Internal Revenue Code, the acquiring corporation paid all of the costs necessary to register wi...
"Futility Exception" Obviates Need For Administrative Review Of Claim
July 26, 2023 - Bulletin Print Report
G.L. 1956 section 31-36-7 requires that: "Every distributor shall...render a report...of the amount...of fuels purchased, sold, or used by the distributor within this stat...
Airport Property Exempt From Taxation
July 26, 2023 - Bulletin Print Report
AA applied for a tax exemption for fifteendifferent properties that it owns and leases to private entities. The properties are located within airports in HC. The lessees...
No Retail Transaction Found
July 26, 2023 - Bulletin Print Report
TP is an Indiana resident. TP purchased a vehicle in 2017 in Illinois, listing both himself and his corporation as co-owners. TP later sold his company and k...
JNJ Chooses A Split-Off Of KVUE
July 25, 2023 - Bulletin Print Report
Johnson & Johnson, ("JNJ"), currently owns 1,716,160,000 shares of Kenvue, Inc., ("KVUE"), or approximately 89.6 percent of KVUE's issued and outsta...
Disposition Of Note With Unstated Interest
July 25, 2023 - Volume 17 Issue 140 Print Report
In January 1970, X issued 1,000 shares of its common stock in exchange for all of the stock of Y. On September 1, 1972, X sold its stock in Y to M for a noninterest bearing not...
Only Temporary Housing Is Exempt From Taxation
July 25, 2023 - Bulletin Print Report
CC is non-stock corporation established in 1984. CC is recognized as a charitable organization under section 501(c)(3) of the Code. CC is licensed by DDS to operate "CLA&q...
Tesla Buyer Not Entitled To A Trade-In Credit
July 25, 2023 - Bulletin Print Report
JM wanted to purchase a 2022 TeslaModel Y. He owned a 2015 Buick Enclave and intended to use that vehicle as a trade-in when buying the Tesla. But there were no Tesla dea...
New Jersey Has Retaliated Against Its Neighboring States
July 24, 2023 - Bulletin Print Report
As threatened, the great state of New Jersey has taken action to "level the playing field," from a tax point of view, with several of its neighboring states, most not...
No Credit For Tax Imposed On 'S' Corporation Income Allocated To N.J.
July 24, 2023 - Volume 17 Issue 139 Print Report
Plaintiff, (P), is the sole shareholder of C, a New Jersey corporation. C has elected to be taxed as an 'S' corporation. For 2009, C filed a New York State 'S'...
Related Party Advances Found To Be Equity
July 24, 2023 - Bulletin Print Report
AL coordinated lot sales for six bonded real estate developments, ("2009 development projects"): (1) SD, being developed by RI, (2) CBD, being developed by RRDN...
Taxpayer Who "Paid The Tax" Is Entitled To A Refund
July 24, 2023 - Bulletin Print Report
C is an Indiana car dealership whose customers include Kentucky residents. C collected Kentucky's "MVUT" for its Kentucky customers and deposited the funds into i...
Sec. 267(b)(4) Should Not Be Read Literally
July 21, 2023 - Volume 17 Issue 138 Print Report
Y owns all of the stock of C. A is Y's son-in-law. A is active in the management of C and is also the trustee of several trusts created by Y for the benefit of A's chil...
In-State Activity Exceeded P.L. 86-272 Protection
July 21, 2023 - Bulletin Print Report
U is an 'S' corporation with its headquarters in Wisconsin. U is a web-based distributor of industrial and packaging products. U shipped most inventory items from its d...
Non-Resident's Income Taxed In California
July 21, 2023 - Bulletin Print Report
APPs timely filed a Form 540 California Resident Income Tax Returnfor the 2017 tax year, reporting a California adjustment for Nevada wage income earned by AH in 2017. FT...
Frivolous Return Penalty Is Constitutional
July 21, 2023 - Bulletin Print Report
Minnesota, ("M"), law imposes an income tax on the taxable income of both residents and non-residents. Non-resident individuals and shareholders are required to file...
The Willens Deal Survey July 2023
July 20, 2023 - The Deal Survey: July 2023 Print Report
Welcome to this month's summary of deals. Full reports on some of these transactions can be found via the link in the description, or by searching the company name in our database.
Withholding Agent Cannot Rely On Incorrect Exemption Form
July 20, 2023 - Volume 17 Issue 137 Print Report
The withholding agent (WA) filed Forms 1042-S with the Service showing a claimed exemption from withholding on payments of "effectively connected income." During an e...
Uncashed Checks Included In Gross Estate
July 20, 2023 - Bulletin Print Report
In 2007, D signed a power of attorney agreement appointing his son, DO, as his agent. DO made annual monetary gifts to family members from 2007 to 2014. On September 6, 2015, D...
The Tax Injunction Act Robbed A Federal Court Of Jurisdiction
July 20, 2023 - Bulletin Print Report
H is an Arizona company that sells products online throughout the country. It argues that Louisiana's parish-by-parish sales-and-use tax system is so costly to navigate tha...
Payments That Benefit Shareholders Not Considered Dividends
July 19, 2023 - Volume 17 Issue 136 Print Report
Approximately 1/3 of C's shareholders own less than 100 shares of C's common stock. More than 1/2 of these shareholders own less than 26 shares. C incurs substantial ex...
The Braves Are On Their Own
July 19, 2023 - Bulletin Print Report
On July 18, 2023, Liberty Media Corporation effected a distribution of its stock in Atlanta Braves Holdings, Inc. to the holders of certain classes of its tracking stock. The v...
Reacquisition Of Vehicle Subjected To Use Tax
July 19, 2023 - Bulletin Print Report
TP, as part of a new job, sold her vehicle to her new employer. After a week or so of working at the employer, TP decided she would return to her old job and left the new emplo...
Cutting Is Not "Fabrication"
July 19, 2023 - Bulletin Print Report
APP is a steel and aluminum distributor. APP purchases its aluminum and steel from various vendors for resale. On occasion, a customer may request "further work" from...
No Double Credit For The Same Investment
July 18, 2023 - Bulletin Print Report
B is an insurance company. B is in the business of issuing accident and health insurance plans. B is subject to a "Premium Tax," as well as corporate income tax on it...
Fair Cash Value Was Not Less Than Assessed Value Of Dwelling
July 18, 2023 - Bulletin Print Report
On January 1, 2019, and January 1, 2020, APP was the assessed co-owner of a condominium unit, (the "subject unit"). The subject unit is a two-story unit with an ocean...
"Arrowsmith" Required Capital Loss Treatment For Settlement Payment
July 18, 2023 - Volume 17 Issue 135 Print Report
In 1961, the taxpayer sold his interest in two oil and gas leases and reported a long-term capital gain of $190,000 from the sale. In 1962, it was determined that the wells on...
Corporation Allowed A Gross Receipts Tax Deduction
July 17, 2023 - Bulletin Print Report
R had commercial contracts with the VA and IHS. Under these contracts, R's nurse employees would provide health care services for the VA and IHS. The Department assessed R...
CEO Maintained A Permanent Place Of Abode In New York City
July 17, 2023 - Bulletin Print Report
The Division conducted a residency audit of petitioner for the tax year 2017. The sole issue is whether petitioner, who admittedly spent more than 183 days within New York City...
Securing A Dependency Exemption For A Non-Relative
July 17, 2023 - Volume 17 Issue 134 Print Report
Petitioner, (P), and his wife were married in September 2009. At that time, P's wife moved out of her mother's home and into P's apartment. At the time P's wife...
Vessel Found Subject To California Use Tax
July 17, 2023 - Bulletin Print Report
On January 14, 2014, in Oregon, APP purchased a sailing yacht, (the "Vessel"), for $65,000.00. APP did not remit any sales or use tax to the Oregon sellers in connect...
Only Tax On Income "Derived" From Another State Is Creditable
July 14, 2023 - Volume 17 Issue 133 Print Report
On June 18, 2001, Petitioner, (P), an individual who is domiciled in New York State, won a jackpot at a slot machine at the Trump Taj Majal Casino in Atlantic City, New Jersey....
The Dominant Motivation Was Investment Related
July 14, 2023 - Bulletin Print Report
AH was in the business of real estate development and hotel ownership and management. AH, PG, and RL founded S to raise funds for SS, which was S's wholly owned subsidiary....
Furnishing Of Go-Karts Constituted "Leasing" Of "TPP"
July 14, 2023 - Bulletin Print Report
APP operates indoor go-kart racing venues in California. APP purchased go-karts for use at its venues from a vendor in Italy without paying tax to California or tax reimburseme...
State Tax Refunds Constitute Qualifying REIT Income
July 13, 2023 - Volume 17 Issue 132 Print Report
TP elected to be treated as a REIT. TP owns 100 percent of the stock in S. S is a qualified REIT subsidiary (QRS). S owns, indirectly through entities taxable as partnerships,...
Eli Lilly Embraces The "Closed Transaction" Approach To CVRs
July 13, 2023 - Bulletin Print Report
Recently, Eli Lilly & Co., ("E"), and SigilonTherapeutics, Inc., ("S") announced a definitive agreement for L to acquire the stock of S from its s...
Taxpayer Provides "Credit Bureau Services"
July 13, 2023 - Bulletin Print Report
TP is an out-of-state corporation that provides two types of check risk management services: (1) retail check services, and (2) payroll check cashing services. TP makes recomme...
Leasehold Interest Found To Be "Public Property"
July 13, 2023 - Bulletin Print Report
The Authority sued the Board, seeking a declaration that its leasehold interest in certain property, "SH," was exempt from ad valorem taxation. The trial court grante...
Citigroup Can Deduct Its Worthless "RAP Right"
July 13, 2023 - Bulletin Print Report
One S&L-crisis era"assisted" merger occurred between Glendale Federal Bank, FSB, ("G"), and First Federal Savings and Loan of Broward, ("B&qu...
Spin-Off To Facilitate Raising Needed Capital
July 12, 2023 - Volume 17 Issue 131 Print Report
P corporation, (P), is a closely-held corporation that owns and operates a golf and tennis resort in State A. P has for more than five years owned all of the stock of S corpora...
Fishing Charter Activity Not Engaged In For Profit
July 12, 2023 - Bulletin Print Report
S has been fishing in Alaska for more than thirty years. In 2010, he decided to establish HJC and acquired a boat designed to fish for halibut. In 2015 and 2016, S filed fishin...
Late Filed Appeal Robs Court Of Jurisdiction
July 12, 2023 - Bulletin Print Report
In 2012, plaintiffs purchased residential real property in defendant for $6,267,500. Starting in 2013, and in every year thereafter, plaintiffs submitted a forest management pl...
Contributed Property Found To Be Inventory
July 12, 2023 - Bulletin Print Report
GC is a partnership. In January 2006, ILC purchased nearly 2,000 acres of undeveloped land in Tennessee for over $9 million to develop into a residential vacation comm...
"HEROES" Act Does Not Authorize Loan Forgiveness
July 11, 2023 - Bulletin Print Report
The Higher Education Act of 1965, (the "EA"), specifies the terms and conditions attached to federal loans. It authorizes the Secretary to cancel or reduce loans,&nbs...
Excluded Gain Supports Deduction Of Suspended PALs
July 11, 2023 - Volume 17 Issue 130 Print Report
A, an individual, buys a principal residence for $700,000 and occupies and uses the residence as his principal residence for two years before converting the residence into a re...
Taxpayer Never Abandoned Ohio Domicile
July 11, 2023 - Bulletin Print Report
S applied for refunds of personal income tax paid for tax years 2016 and 2017. On her applications, she asserted that she lived in Florida to help care for her aging parents du...
Where Does Infringing Conduct Occur?
July 11, 2023 - Bulletin Print Report
H manufactures radio remote controls for construction equipment. It sells and services these products...in more than 45 countries. A began to sell H-branded products that incor...
"TIF" Is Not An "Assessment" Excluded From "Real Estate Taxes"
July 10, 2023 - Bulletin Print Report
The Minnesota legislature established "TIF" as a financing tool "to support local economic development...using the incremental property taxes, or 'tax increm...
Timing Of Sec. 304 Dividend
July 10, 2023 - Volume 17 Issue 129 Print Report
The I.R.S. will dispose of cases under Sec. 301 (relating to distributions of property by a corporation to its shareholders) that are substantially identical on their facts to...
IT Business Was "Carried On" In New York City
July 10, 2023 - Bulletin Print Report
Taxpayer is an IT consulting service that involves analysis and programming. The partners that own the firm reside in New York City and work from their homes located i...
Sovereign Immunity Is Abrogated "With Respect To" 11 U.S.C. Sec. 544
July 10, 2023 - Bulletin Print Report
Section 544(b)(1) of the Bankruptcy Code provides that "the trustee may avoid any transfer of an interest of the debtor in property...that is voidable under applicable law...
Reinsurer Qualifies As An "Insurance Company"
July 7, 2023 - Volume 17 Issue 128 Print Report
Retailer (R) sells Products to customers. R offers customers the option to also purchase a Product Service Contract (PSC). The PSC is issued by O and provides coverage for the...
Declaratory Relief Is Unavailable With Respect To Federal Taxes
July 7, 2023 - Bulletin Print Report
On April 4, 2021, Plaintiff, ("P"), filed a Complaint against the Commissioner of the I.R.S. The United States filed a Motion to Dismiss the Complaint. P alleges he i...
Acquisition Indebtedness Exceeded The Statutory Limit
July 7, 2023 - Bulletin Print Report
In 2019, petitioners, ("Ps"), owned two homes, which they acquired after October 1987 and before December 16, 2017. Ps owned the first home in Virginia for the entire...
Tax Court Correctly Calculated "Entire New Jersey Income"
July 7, 2023 - Bulletin Print Report
Plaintiffs are a married couple who were involved in two disputes with the Director. The first dispute occurred in 2004, ("TI"). During that period, T earned income i...
U.S. Property Held By Trustee Not Held By CFC
July 6, 2023 - Volume 17 Issue 127 Print Report
Y corporation, ("Y"), a controlled foreign corporation (CFC) is a wholly-owned subsidiary of X corporation, ("X"), a domestic corporation. &...
Petition For Property Tax Relief Was Not Timely Submitted
July 6, 2023 - Bulletin Print Report
On December 28, 2015, petitioner, ("P"), filed a petition in Superior Court pursuant to section 44-5-26(c), alleging that respondent conducted an illegal property tax...
Parkour Classes Are A Physical Fitness Activity
July 6, 2023 - Bulletin Print Report
TP operates a parkourgym in Washington and conducts parkour classes. Audit determined that the income was properly classified under the retailing B&O tax classificati...
UPS Permitted To Use Alternative Apportionment Formula
July 6, 2023 - Bulletin Print Report
In 3.5.19.15 of the New Mexico Administrative Code, the Department sets forth special rules for apportioning income for interstate trucking companies. The regulation appo...
Taxpayer Did Not "Construct" Principal Residence
July 5, 2023 - Volume 17 Issue 126 Print Report
On January 23, 2009, Petitioner, (P), purchased a house in Port St. Lucie, Florida from GMAC. GMAC had obtained title to the property as a result of foreclosure proceedings. P...
Only A Certificate Can Earn One An Exemption From FICA Tax
July 5, 2023 - Bulletin Print Report
Plaintiffs are Australian nationals who were living in the U.S. temporarily between 2017 and 2020. During that time, plaintiff's employer collected Social Security taxes (&...
Stamping And Embroidering Dog Tags And Collars Is "Manufacturing"
July 5, 2023 - Bulletin Print Report
TP makes online sales of pet products such as tags, collars, leashes, and people products, such as military and medical ID tags. The typical customer is a pet owner purchasing...
Losses Did Not Occur In A Disaster Area
July 5, 2023 - Bulletin Print Report
On March 13, 2020, President Trump declared that the COVID-19 outbreak in the U.S. constituted a nationwide emergency pursuant to the Stafford Act. The declaration is referred...
FIS Exploring Sale Of Worldpay
July 3, 2023 - Bulletin Print Report
In 2019, Fidelity National Information Services, Inc., ("FIS"), and Worldpay, Inc., ("WP), engaged in a business combination in which FIS acquired the stock of W...
CFC Partner Avoids Sec. 956
July 3, 2023 - Volume 17 Issue 125 Print Report
TP is a domestic corporation and the parent of a consolidated group. US1 is a domestic corporation wholly owned by TP. F1 is wholly owned by a member of TP's consolidated g...
Section 1603 Grants Are Separate Intangible Assets
July 3, 2023 - Bulletin Print Report
OC partnered with A in 2006 "to finance, develop, and construct wind farms." OC and A entered into an agreement with SCE providing that the OC/A subsidiary would deve...
Unsigned Return Is Not Valid
July 3, 2023 - Bulletin Print Report
S's purported 2013 federal income tax return was filed on October 15, 2014. The return included two signatures: one for CA, a certified public accountant who signed as prep...
A Contractual Commitment Is Not Consideration For A Retail Sale
July 3, 2023 - Bulletin Print Report
Sales taxes in Massachusetts are governed by G.L. c. 64H. Section 2 mandates a 6.25 percent tax on retail sales of tangible personal property and services. The tax is based on...
One Year Note Found To Be A "Security"
June 30, 2023 - Volume 17 Issue 124 Print Report
M, on December 16, 1958, formed a corporation under the laws of Georgia. On January 1, 1959, M transferred various assets to the corporation. M received for the transfer 2,498...
Lease Breach Acceleration Debt Was A Liability
June 30, 2023 - Bulletin Print Report
During 2015, petitioner, ("P"), owned and operated PBS, LLC. On June 17, 2015, P signed a promissory note to FFBC for a small business loan in the amount of $15,000....
U.C.L.A. M.B.A. Qualified Taxpayer For A New Trade Or Business
June 30, 2023 - Bulletin Print Report
Petitioner graduated with a liberal arts degree in Spanish and French from Occidental College in 2012. She began working for IL as a translation services coordinator. During 20...
Sale Of Two Condominium Units Not A "Bulk Sale"
June 30, 2023 - Bulletin Print Report
Taxpayers sold two condominium units. One unit was a four-bedroom apartment, unit number 4X, which the taxpayers acquired in 1996 as a primary residence. Additionally, the taxp...
Chinook/Novartis Endorse Open Transaction Approach To CVRs
June 29, 2023 - Bulletin Print Report
We have reviewed many deals over the past few years in which the consideration offered to the shareholders of the acquired corporation consisted not only of "current"...
Preferential Dividend Does Not Reduce REIT's Earnings and Profits
June 29, 2023 - Volume 17 Issue 123 Print Report
TP is a domestic corporation that has elected to be treated as a REIT. TP is engaged in the acquisition and holding of commercial mortgage-backed securities (CMBS) issued by RE...
Electronic Tax Court Petition Not Timely Filed
June 29, 2023 - Bulletin Print Report
The Commissioner mailed a notice of deficiency to S on September 8, 2022. The notice stated that the last day to file a petition with the Tax Court was December 12, 2022. While...
Uninhabitable Property Not Properly Classified As Commercial
June 29, 2023 - Bulletin Print Report
The issue to be determined is whether the Assessor has proven, by a preponderance of the evidence, that the property should be classified as commercial for tax years 2022 and 2...
Attribute Of Stock Or Other Property?
June 28, 2023 - Bulletin Print Report
Where a transaction qualifies as a "reorganization," within the meaning of section 368(a) of the Code, the shareholders of the acquired corporation are permitted ...
Furnishing Electricity Is A Service
June 28, 2023 - Volume 17 Issue 122 Print Report
The taxpayer, a producer of electricity, argued that it was entitled to a refund because it paid taxes when it was actually eligible for an exemption under Sec. 39-26-709(1)(a)...
OAH Must Dismiss Constitutional Claims To Tax Statutes
June 28, 2023 - Bulletin Print Report
PM used its "Capital Base" to calculate its franchise tax in accordance with N.C.G.S.section 105-122(b). A corporation's Capital Base was to be calculated b...
The Right To Purchase Wireless Service Is Subject To Sales Tax
June 28, 2023 - Bulletin Print Report
W is an 'S' corporation. N is its sole shareholder. W operated six stores...selling mobile phone equipment, products, and services as an independent contractor with Boo...
Deemed Liquidation Created By Sec. 338(h)(10) Not Under Sec. 332
June 27, 2023 - Volume 17 Issue 121 Print Report
P is the common parent of a consolidated group. P owns all of the stock of S1. S1 owns at least 80 percent of the stock of S2. S2 owns all of the stock of S3. &...
Venue Is A Function Of Statute
June 27, 2023 - Bulletin Print Report
G owns an underground natural gas storage facility in RC. It owns additional properties, including pipelines, that run through thirty-two Mississippi, ("M"), counties...
Late Filed Safe Harbor Election Denied
June 27, 2023 - Bulletin Print Report
On Date 7, TP entered into an agreement with Investment Bank, ("IB"), which provided that IB would act as TP's financial advisor in connection with the sale of TP...
E-Mail Was Not A Claim For Refund
June 27, 2023 - Bulletin Print Report
Defendant conducted an audit of plaintiff's tax returns in May 2018. On October 17, 2018, L sent an e-mail to VB, the "Holdings Memo." The memo begins with L'...
The Willens Deal Survey June 2023
June 26, 2023 - The Deal Survey: June 2023 Print Report
Welcome to this month's summary of deals. Full reports on some of these transactions can be found via the link in the description, or by searching the company name in our database.
New Yorker Denied Resident Tax Credit
June 26, 2023 - Volume 17 Issue 120 Print Report
Petitioner, (P), and her late husband, in 1981, invested approximately $25,000 in RA, LP (R). R, along with an insurance company, built an office tower in Boston, Massachusetts...
Retention Of Driver's License Did Not Preclude Change Of Domicile
June 26, 2023 - Bulletin Print Report
Virginia recognizes two classes of "residents," a domiciliary resident and an actual resident. For a person to change domiciliary residency, that person must intend t...
Cadeler A/S And Eneti, Inc. Announce A Business Combination
June 26, 2023 - Bulletin Print Report
CadelerA/S, ("C"), and Eneti, Inc., ("E"), announced that they have entered into a business combination agreement to combine through a stock-for-stock...
The Bankruptcy Code Strips Tribes Of Their Immunity
June 26, 2023 - Bulletin Print Report
P is a federally recognized Tribe that owns several business entities. One of the businesses, L, allowed C to borrow $1,100 in the form of a short-term loan. C filed for Chapte...
Deducting Dividends On "Qualified Preferred Stock"
June 23, 2023 - Volume 17 Issue 119 Print Report
A, B, and C are public utilities. Rates charged to customers are regulated. Therefore, A, B, and C are public utilities within the meaning of Sec. 247(b)(1) of the Internal Rev...
"NIL" Collectives Are Not Tax-Exempt
June 23, 2023 - Bulletin Print Report
In 2021, the NCAA adopted an interim name, image, and likeness, ("NIL"), policy, (the "Interim Policy"), permitting student-athletes to be compensated for u...
Obligation To Repatriate Foreign Assets Not "Stayed" Pending Appeal
June 23, 2023 - Bulletin Print Report
On November 11, 2022, the court entered Final Judgment for the United States and against S in the amount of $12,555,813.00, plus further accruals of late payment penalties and...
Government May Execute Upon Debtor's Cello
June 23, 2023 - Bulletin Print Report
F was the executor of Estate. F created the Trust, ostensibly transferring the Cello from F as Settlor to F as Trustee. The Estate stipulated to additional tax liabilities. F f...
Assessing The Date Of "Transfer" Of Option Stock
June 22, 2023 - Volume 17 Issue 118 Print Report
X has granted nonqualified options to certain of its key employees. Under the terms of the options, the employees have an unconditional right to receive X stock upon notice to...
Objectively Reasonable Claim Can Be A False Claim
June 22, 2023 - Bulletin Print Report
The False Claims Act, ("FCA"), imposes liability on anyone who "knowingly" submits a "false" claim to the Government. The FCApermits private...
CVRs Are Now Standard Operating Procedure
June 22, 2023 - Bulletin Print Report
Chinook Therapeutics, Inc., ("KDNY"), is a biopharmaceutical company focused on developing medicines for the treatment of kidney diseases. It announced that it has en...
Retroactive Application Of Act Found Unconstitutional
June 22, 2023 - Bulletin Print Report
From April 2009 through March 2012, C was an authorized dealer for B, a provider of prepaid wireless service, and operated three stores. C sold cellular telephones, accessories...
Pre-Recorded On Demand Fitness Classes Subject To Sales Tax
June 21, 2023 - Bulletin Print Report
TP offers access to both live, instructor-led fitness classes and pre-recorded, on demand fitness classes. Customers gain access to the classes by purchasing online memberships...
Taxpayer Not Engaged In A Rental Business
June 21, 2023 - Volume 17 Issue 117 Print Report
H worked full time in the sales division of PA. In June 2004, petitioners (H and his wife) acquired a single-family home (CP). In 2004, petitioners and their children were livi...
Taxpayer Did Not Occupy Property As His Principal Residence
June 21, 2023 - Bulletin Print Report
Petitioner, ("P"), owns two residential properties in Kalamazoo, Michigan--the L property and the O property. P requested a principal residence exemption,("...
Vacant Real Property Eligible For Property Tax Exemption
June 21, 2023 - Bulletin Print Report
Petitioner, ("P"), was incorporated in 1864 as a charitable organization. One of its charitable objects is to: "build and maintain a Masonic hall or temple in th...
Redemption Of Fractional Shares Of Sec. 306 Stock
June 20, 2023 - Volume 17 Issue 116 Print Report
X is a domestic corporation with only one class of $15 par value voting common stock outstanding. On April 30, 1980, X effected a recapitalization whereby, pursuant to the plan...
Property Not Used For Purposes Warranting A Tax Exemption
June 20, 2023 - Bulletin Print Report
Petitioner is a local development corporation organized for several charitable and public purposes, including the protection of water quality in the portion of New York City...
Compensation For Providing Free Hotel Stays Is Subject To "TPT"
June 20, 2023 - Bulletin Print Report
D participates in the Marriott Rewards Program, (the "RP"). The RP permits hotel guests to earn points from their paid stays at Marriott-branded hotels. The members m...
Taxpayer Was Not A Grocery Store
June 20, 2023 - Bulletin Print Report
The Taxpayer, a retailer of home decor with several locations in Virginia, sells a limited selection of packaged foods in its stores. The Taxpayer states that it has been colle...
Anatomy Of A Master Limited Partnership "Roll-Up"
June 16, 2023 - Bulletin Print Report
Recently, ONEOK, Inc., ("OKE"), and Magellan Midstream Partners, L.P., ("MMP), a master limited partnership, ("MLP"), announced that they have executed...
Liquidating An Insolvent Corporation
June 16, 2023 - Volume 17 Issue 115 Print Report
C is a State X corporation engaged in property management and other businesses. C has outstanding 228,000 shares of voting common stock, all of which are held by Trust (T), a r...
Loss From "Sham" Transaction Not Deductible
June 16, 2023 - Bulletin Print Report
In October 2002, APP co-foundedand incorporated F. F reported net losses. APP made numerous transfers or advances of funds to F. APP's trust and W executed a document...
Surplus Lines Broker Includible In Combined Tax Return
June 16, 2023 - Bulletin Print Report
TP and its affiliates filed combined Virginia corporate income tax returns and consolidated federal income tax returns. The Department's auditor removed Subsidiary A from t...
D's Payment Of Liabilities To Which Assets Transferred To C Are Subject
June 15, 2023 - Volume 17 Issue 114 Print Report
D is a State A corporation engaged in the "a" and "b" businesses. D has one class of voting common stock outstanding, all of which is held by A. C is a corp...
Sales Not Found To Be "Wholesale" Sales
June 15, 2023 - Bulletin Print Report
T is a Wyoming corporation and has a retail location in Mississippi, ("M"). T sells various items of property to purchasers in the oil and gas industry. Section 27-65...
Appeals Before The OTA Are Not Tolled By The "Automatic Stay"
June 15, 2023 - Bulletin Print Report
CDTFA based two notices of deficiency ("NOD"), on its determination that APP had aggregate unreported sales of nearly $21 million. Subsequently, APP appealed CDTFA...
Venerable Common-Law Rule Completely Supplanted By Statute
June 15, 2023 - Bulletin Print Report
The I.R.S. audited P. The I.R.S. misinterpreted its own audit, concluding that P had underpaid. He paid up. Properly understood, the audit revealed that P had overpaid. So P ti...
Loss On Sale Of Farm Disallowed
June 14, 2023 - Volume 17 Issue 113 Print Report
Petitioner, (P), was a family corporation. The assets of the corporation consisted mostly of farm lands. Included among them was the "Anderson farm."...
The Care Of Horses Is A Charitable Purpose
June 14, 2023 - Bulletin Print Report
MEC is a Connecticut non-stock corporation. MEC owns property in Torrington, Connecticut. MEC is recognized as a charitable organization under section 501(c)(3) of the Internal...
An LLC Is Distinct From Its Member
June 14, 2023 - Bulletin Print Report
CalSTRS, ("CS"), the California State Teachers' Retirement System, is a "unit of the Government Operations Agency" authorized to "invest the assets...
Liberty Media Prepares To Split-Off The Atlanta Braves
June 14, 2023 - Bulletin Print Report
Liberty Media Corporation, ("LMC"), is in the final stages of separating from the LMC family its subsidiary that operates the Atlanta Braves baseball club and also da...
Taxpayer Denied Real Property Tax Credit
June 13, 2023 - Volume 17 Issue 112 Print Report
During 2007, WM, an individual, was the sole shareholder of LO and of LOH. LOH was the sole shareholder of MI. LO, LOH, and MI were all 'S' corporations. LO became cert...
Purchase Of Partnership Interest Benefits From "Expansion Doctrine"
June 13, 2023 - Bulletin Print Report
Corporation A, a country A corporation, owns all of the stock of Corporation B. Corporation A and Corporation B together own all the outstanding stock in Distributing. Distribu...
Union's Conduct Not Protected By NLRA
June 13, 2023 - Bulletin Print Report
The National Labor Relations Act, (the "NLRA"),encourages collective bargaining between labor and management. To enforce the NLRA, Congress created the National...
Redemption Obligation Is Not A "Liability"
June 13, 2023 - Bulletin Print Report
M and T owned all of the stock of C. M owned 77.18 percent of the stock; and T owned 22.82 percent thereof. M and T are brothers. The brothers and C entered into a stock purcha...
NDAQ Will Not Get A Basis Step-Up
June 12, 2023 - Bulletin Print Report
It is ordinarilythe case, where a public corporation acquires a private one, that the deal will be structured to permit the acquirer to obtain a "cost" (i.e., s...
Source-Identifying Trademarks Are More Likely To Infringe And Dilute
June 12, 2023 - Bulletin Print Report
VIP Products LLC makes a dog toy designed to look like a bottle of Jack Daniel's whiskey. Though not entirely. For example, on the toy, the words "Jack Daniel's&qu...
Energy Credit Available To Domestic Partnership
June 12, 2023 - Volume 17 Issue 111 Print Report
Y, a domestic corporation, was the sole member of X, a disregarded entity. Y has not elected to be exempt from federal income tax pursuant to Sec. 936 of the Code. Z, a domesti...
Tax Court Abates Late Filing And Late Payment Penalties
June 12, 2023 - Bulletin Print Report
Petitioner, 92 years old, operated a law practice. He did not timely file returns or timely pay employment tax liabilities for the periods ending September 30, 2017 through Jun...
Section 11 Liability Only Attaches To Registered Shares
June 12, 2023 - Bulletin Print Report
The Securities Act of 1933 requires a company to register the securities it intends to offer to the public with the SEC. The Securities Exchange Act of 1934 requires publicly t...
Fraternal Organization Not Eligible For A Property Tax Exemption
June 9, 2023 - Bulletin Print Report
In 2017, petitioner, as an alleged "benevolent organization," filed an application for a real property tax exemption pursuant to (New York) Real Property Tax Law sect...
Sale To Private Third Party Comes Within Sec. 1033
June 9, 2023 - Volume 17 Issue 110 Print Report
The district court found that the sale by the taxpayer of its property to TBCC was as a result of the threats of condemnation described in the findings. However, the court conc...
Foundation Was Not A "Scientific Institution"
June 9, 2023 - Bulletin Print Report
The Foundation is a non-profit corporation that occupies about two-thirds of Hurricane Island under a forty-year lease that began in January 2010. In March 2019, the Foundation...
Section 183(b)(2) Deductions Are Unequivocally "Below-The-Line"
June 9, 2023 - Bulletin Print Report
In 2011, the Gs formed CLC to own and charter a yacht. CLC elected treatment as a disregarded entity. Because CLC lacked a profit motive, the Commissioner adjusted the Gs'...
Stock Acquisition And Preplanned Liquidation Not Integrated
June 8, 2023 - Volume 17 Issue 109 Print Report
Mr. A owns T. T had $150x worth of assets and $50x of liabilities. The value of P's assets, net of liabilities, is $410x. P forms X for the sole purpose of acquiring all th...
EIP Will Vote Against The ONEOK/MMP Deal
June 8, 2023 - Bulletin Print Report
Not surprisingly, we suppose, one of the largest holders of Magellan Midstream Partners, L.P., ("MMP"), has indicated that the tax profile of the MMP/ONEOK deal will...
Contingent Fee Arrangement Was Improper
June 8, 2023 - Bulletin Print Report
ISD employed attorney L to pursue claims regarding the Appraisal District's allegedly inaccurate valuation of Kinder Morgan's mineral interests. The contract with L pro...
Is Deferred Compensation An "Above-The-Line" Item?
June 8, 2023 - Bulletin Print Report
The taxpayer, ("TP"), on the receiving end of TAM 202315010, January 9, 2023,is taxed as a non-life insurance company under part II of subchapter L of the Code....
Corrected Refund Claims Were Untimely
June 8, 2023 - Bulletin Print Report
In 2017, D's tax preparer filed amended tax returns for him...claiming a refund of amounts paid for tax years 2013 and 2014.The I.R.S. denied the refund claims and in...
REIT May Render Non-Customary Services Through A TRS
June 7, 2023 - Volume 17 Issue 108 Print Report
R is a REIT. R owns and operates rental apartment properties. In 2002, R formed T to provide services to tenants of its properties. R and T filed Form 8875 to jointly elect for...
Clinical Testing Expenses That Are Also Qualified Research Expenses
June 7, 2023 - Bulletin Print Report
U, a biotechnology company, is a Delaware public benefit corporation. For each of the tax years 2011 through 2014, U computed and claimed both the research credit under section...
Only The Account Owner Can Claim A "529" Deduction
June 7, 2023 - Bulletin Print Report
In 2008, petitioners established a section 529 tuition plan ("529 Plan") for the benefit of their minor son, with the state of Rhode Island, ("RI 529"), thr...
Whistleblower's Information Did Not Lead To Administrative Action
June 7, 2023 - Bulletin Print Report
V sent information to the Whistleblower Office of the I.R.S. that he believed showed a company was underpaying taxes by taking unjustified deductions and using improper transfe...
A Stock’s “Inherent Attribute” Determines Whether It Is “Voting Stock"
June 6, 2023 - Bulletin Print Report
Who Is An "Independent Contractor?"
June 6, 2023 - Volume 17 Issue 107 Print Report
The trust, a REIT, entered into a partnership with X for the purpose of constructing and holding for investment a number of apartment buildings. The trust contributed 10 acres...
Tax Exemptions Are Not Granted By Implication
June 6, 2023 - Bulletin Print Report
B reported income from his law practice and a sizable net operating loss carry forward that was more than sufficient to shield his income from income tax. But his self-employme...
Vehicle Expenses Were Non-Deductible Commuting Expenses
June 6, 2023 - Bulletin Print Report
L is a sheet metal worker. During the years at issue he was employed by DZ. From 2012 through 2019, L worked at the Browns Ferry Nuclear Plant, ("BFNP"), as an employ...
Cleaning Equipment Not Used In The Production Process
June 5, 2023 - Bulletin Print Report
S manufactures and distributes cheese. Cheese is manufactured in batches. After each batch is completed, the "clean-in-place," ("CIP"), equipment runs a cle...
Proceeds From Voluntary Sale Not Eligible For Sec. 1033 Benefits
June 5, 2023 - Volume 17 Issue 106 Print Report
The taxpayer was the owner of a shopping center that contained a number of stores and offices under various lease agreements. A part of the...
GNL And RTL Choose A Tax-Free Deal
June 5, 2023 - Bulletin Print Report
While many acquisitions of real estate investment trusts, ("REITs"), are structured as taxable acquisitions of the assets of the acquired REIT, so as to provide the a...
Club's Real Property Not Used Exclusively For Charitable Purposes
June 5, 2023 - Bulletin Print Report
The subject property is improved with a building. The Club claimed the property was used for "monthly meetings, luncheon/card parties, Election Day luncheons..." The...
Thomson Reuters To Return Capital To Shareholders
June 2, 2023 - Bulletin Print Report
Thomson Reuters, ("TRI"), has been gradually liquidatingits positionin the London Stock Exchange, ("LSEG"). More accurately, the shares so sold...
Preliminary Recapitalization Makes Spin-Off Possible
June 2, 2023 - Volume 17 Issue 105 Print Report
Distributing, (D), is a holding company incorporated in State X. Its assets consist of 3,602 shares of voting common stock in Controlled (C), a 27.875 percent interest in a par...
Non-Resident Employee "Transacted Business" In Alabama
June 2, 2023 - Bulletin Print Report
Taxpayer, it is undisputed, is a domiciliary of Florida. The Taxpayer is a director for T.R. Miller Company, Inc., ("TRM"), which is located in Brewton, Alabama, and...
Tax Sale Purchaser Can Be Reimbursed For "Preservation Improvements"
June 2, 2023 - Bulletin Print Report
The property had served as a rental home located in a residential neighborhood. The property owner, K, stopped paying property taxes in 2015 after a fire extensively damaged th...
Factor Analysis Used To Determine Reasonable Compensation
June 1, 2023 - Bulletin Print Report
H was formed in 1980 as a subchapter 'C' corporation. CH and his wife, GH, each owned fifty percent of the stock. By 2015, largely through the efforts of CH, the compan...
No UBT Deduction For Compensation Paid To Partners
June 1, 2023 - Volume 17 Issue 104 Print Report
TAM is a limited partnership. It was an investment advisor registered with the S.E.C. TAM's affairs were managed by TMC, its general partner, a corporation which elected &#...
Motion To Vacate Tax Lien Foreclosure Was Time-Barred
June 1, 2023 - Bulletin Print Report
In July 2015, the City of New York commenced this action...to foreclose certain tax liens. A notice of foreclosure dated July 24, 2015, was published for six successive weeks i...
Film Venture Not Engaged In For Profit
June 1, 2023 - Bulletin Print Report
S is a physician who practices emergency medicine. During taxable year 2015, the year at issue, S worked at federal facilities in Arizona. S estimates that he works approximate...
Exchange Found To Qualify Under Sec. 1036
May 31, 2023 - Volume 17 Issue 103 Print Report
Mr. D, an individual, transferred his Class A voting common stock of a corporation to Mrs. C, also an individual, solely in exchange for Class B non-voting common stock of the...
Special Purpose Entity Not Conducting Business In Indiana
May 31, 2023 - Bulletin Print Report
TP is a company engaged in the business of providing communications services. TP filed amended corporate tax returns to includeone of its affiliates, "Holdings."...
Medical Office Workers Are Employees
May 31, 2023 - Bulletin Print Report
Petitioner, ("P"),is a limited liability company whose sole member is Dr. K, ("K").P was treated as a disregarded entity. K operated his medical...
Twitter Does Not "Aid And Abet" Terrorist Attacks
May 31, 2023 - Bulletin Print Report
United States nationals who have been "injured...by reason of an act of international terrorism" may sue for damages. 18 U.S.C. section 2333(d)(2) also imposes civil...
The Interaction Of Sec. 1248 And Sec. 351
May 30, 2023 - Volume 17 Issue 102 Print Report
T is a domestic corporation. T owns all of the stock of S, a Country A corporation, and all of the stock of EE, a domestic corporation. T proposes to transfer the stock of S to...
A Partnership Is An Entity For "FIRPTA" Purposes
May 30, 2023 - Bulletin Print Report
PRS is a partnership. C is a U.S. real property holding corporation, ("USRPHC"). C's stock is regularly traded on an established securities market. NRA, a non-res...
Who Is Liable For Unpaid Estate Taxes?
May 30, 2023 - Bulletin Print Report
AP died on July 19, 2000. His gross estate was valued at $193,434,344 for federal estate tax purposes. Nearly all of his assets were held in a living trust. In October 2001, JM...
Taxpayer Need Not Have A Legal Interest In Records Summoned
May 30, 2023 - Bulletin Print Report
The I.R.S. may issue a summons to "determine the liability" of a taxpayer or "any transferee or fiduciary" for unpaid taxes. See section 7602(a). The I.R.S....
DM Will Engage In An "Outbound" Transaction
May 26, 2023 - Bulletin Print Report
Stratasys Ltd., ("SSYS"), an Israeli corporation, and Desktop Metal, Inc., ("DM"), a domestic corporation, announced that they have entered into a definitiv...
Remaining Value From A Tax Sale Is "Property"
May 26, 2023 - Bulletin Print Report
Hennepin County, ("HC"), imposes an annual tax on real property. GT bought a condominium in Minneapolis. By 2015, it had accumulated about $2,300 in unpaid taxes and...
Liquidating Distributions Were Compensation For Services
May 26, 2023 - Volume 17 Issue 101 Print Report
The issue is whether payments made in liquidation of partnership interests which constitute the retiring partners' pro rata share of the partnership's unrealized receiv...
Taxpayer Used "Cost Accounting Methodology"
May 26, 2023 - Bulletin Print Report
PESCO, ("P"), designs and manufactures unique products for use in the oil and gas industry. It applied for a tax credit to recoup some of its research and development...
Apportionment Method May Be Elected In An Amended Return
May 25, 2023 - Bulletin Print Report
H is a Virginia corporation. Virginia law requires that "multi-state businesses...apportion their income to determine the amount of their income that is taxable in Virgini...
Gauging The Basis Of Property Acquired For Stock
May 25, 2023 - Volume 17 Issue 100 Print Report
M is a State X corporation which is engaged in the manufacture and sale of products and systems. M is the parent of an affiliated group which files a consolidated federal incom...
Decorative Grass Is Not "A Thing Of The Soil"
May 25, 2023 - Bulletin Print Report
T is a lawn care company. By its own admission, it is not an agricultural business. T cares for the lawns and landscaping of its residential and commercial clients. The followi...
Refund Of Early Withdrawal Penalty Is Excluded From Debtor's Estate
May 25, 2023 - Bulletin Print Report
M filed a Chapter 7 petition with the Bankruptcy Court on September 27, 2022. He disclosed a 2021 tax refund not yet received that was joint with his ex-spouse. H, the trustee,...
CVX's Basis In PDCE Will Not Reflect Its Outlay
May 24, 2023 - Bulletin Print Report
Chevron Corporation, ("CVX"), recently announced it has entered into a definitive agreement with PDC Energy, Inc., ("PDCE"), to acquire all outstanding shar...
The Willens Deal Survey May 2023
May 24, 2023 - The Deal Survey: May 2023 Print Report
Welcome to this month's summary of deals. Full reports on some of these transactions can be found via the link in the description, or by searching the company name in our database.
Lack Of Employees Not A Bar To Meeting Active Business Test
May 24, 2023 - Volume 17 Issue 99 Print Report
D has elected to be an 'S' corporation. D owns approximately "a" acres of land. D engages principally in Business A. S, which is wholly owned by D, is engaged...
Deficient "CWA" Precludes Charitable Contribution Deduction
May 24, 2023 - Bulletin Print Report
APPs deducted $5,021,550 on Schedule A of their 2009 California income tax return for charitable cash contributions to the Foundation. Foundation,a tax-exempt private fou...
Defective Certificate Of Formation Precludes Property Tax Exemption
May 24, 2023 - Bulletin Print Report
P owns five parcels of real property, (the "Subject Properties"), located in Jersey City, New Jersey. P submitted applications to the Municipality for property tax ex...
Notice Of Gift Tax Deficiency Not Timely Issued
May 23, 2023 - Bulletin Print Report
On September 22, 2006, UVLPolicy No. XXX-X03-06 was issued. On April 23, 2007, S and his mother jointly requested that SW assign the policy so that S's mother, aunt,...
I.R.A. Runs Afoul Of Sec. 408(m)
May 23, 2023 - Volume 17 Issue 98 Print Report
CM and its affiliate, CN, are non-bank entities that provide precious metals administration and safekeeping services to various customers. Taxpayer requests the following rulin...
Debt Discharge Must Be Reported To The I.R.S.
May 23, 2023 - Bulletin Print Report
E is a credit union. When certain debtors defaulted on loans, E sent presale notices to the debtors stating that the collateral for the loans was being repossessed. Two of thes...
Intellectual Property Is The Corporation's Principal Asset
May 23, 2023 - Bulletin Print Report
H founded Company on Date 1 as a 'C' corporation. On the date of its formation, Company issued "A" shares constituting "B%" of Company's stock t...
"Buy/Sell" Transactions Were An Exchange Of Inventory
May 22, 2023 - Bulletin Print Report
SP was the general partner of SL. SP had three corporate partners, each of which was included in S's Tax filings for the Tax Period. SPMT was a disregarded entity that flow...
I.R.A. Did Not Purchase A Collectible
May 22, 2023 - Volume 17 Issue 97 Print Report
CM formed Trust T(TT) as an investment trust under State A law. The trustee of TT is TN, a banking corporation organized under the laws of State A. TT is a grantor trust....
Sovereign Immunity Was Not Unmistakably Abrogated
May 22, 2023 - Bulletin Print Report
Congress passed the Puerto Rico Oversight, Management, and Economic Stability Act of 2016, ("PROMESA"), to deal with a fiscal emergency. PROMESA creates, as its cente...
Disability Benefits Properly Excluded From Gross Income
May 22, 2023 - Bulletin Print Report
Conn. Gen. Stat. section 5-192p provides: "If a member of Tier II, while in state service, becomes disabled...prior to age sixty-five, he is eligible for disability retire...
REIT Merger Intended To Qualify As A Tax-Free Reorganization
May 19, 2023 - Bulletin Print Report
Regency Centers Corporation, ("REG"), and Urstadt Biddle Properties, Inc., ("UBP"), each a real estate investment trust, ("REIT"), announced that...
Receipts From Hedging Not Derived From Primary Business Activity
May 19, 2023 - Bulletin Print Report
P was engaged in a fully integrated petroleum business. P used derivative commodity instruments...to manage risks related to the price volatility of crude oil and other petrole...
Origination Of Mortgage Loan Not A "Purchase" Thereof
May 19, 2023 - Volume 17 Issue 96 Print Report
Petitioner, (P), a bank, claimed an investment tax credit in the amount of $701,785 on its 1999 franchise tax return in connection with a building that it purchased and used ex...
FRG Is Engaging In A "Two-Corporation" LBO
May 19, 2023 - Bulletin Print Report
Management and itsaffiliates and related partiescurrently owns approximately 36 percent of the stock of Franchise Group, Inc., ("FRG"). The remainder of t...
Tax Fraud Sentences Are Geared To Actual And Intended Losses
May 19, 2023 - Bulletin Print Report
U and T were indicted in 2018 for engaging in two fraudulent tax schemes over the course of a decade. U was convicted of conspiracy to defraud the United States and eight count...
Is UBS's Acquisition Of Credit Suisse A Reorganization?
May 18, 2023 - Bulletin Print Report
More details have now emerged regarding UBS Group AG's acquisition of its former rival, Credit Suisse Group AG. As advertised, the acquisition will be structured as a merge...
Sale Of Borrowed Stock Effects A "Disposition" Of Option Stock
May 18, 2023 - Volume 17 Issue 95 Print Report
The taxpayer acquired stock through the exercise of a "qualified stock option." Prior to the lapse of the holding period required in Sec. 422(a)(1) ("no disposit...
Interest On Child Support Arrearages Was Taxable
May 18, 2023 - Bulletin Print Report
During 2011 and 2012, petitioner and her former spouse were engaged in litigation in the Circuit Court of Mobile County, Alabama, (the "state court"),concerning...
Section 6426 Credits Reduce Excise Tax Liability
May 17, 2023 - Bulletin Print Report
G is an agricultural cooperative that sells gasoline and diesel fuel, renewable fuels, alcohol fuel mixtures, and biodiesel mixtures. Petitioner incurred a section 4081 fuel ex...
Pension Agreement Is Not A Prohibited Interest
May 17, 2023 - Volume 17 Issue 94 Print Report
A and A's children, B and C, own all of the stock of X. Upon A's retirement, X redeemed all its stock held by A for an amount of cash equivalent to the fair market valu...
Not All Residential Property Eligible For Property Tax Exemption
May 17, 2023 - Bulletin Print Report
The Utah Legislature chose to enact a property taxexemption, but limited the definition of "residential property" to "any property used for residential pur...
Verizon's Services Are Internet Access Services
May 17, 2023 - Bulletin Print Report
The Division determined that petitioner, ("P"), was liable for additional tax pursuant to Tax Law section 184 on its gross receipts from Verizon's services. The a...
Distributions Of Stock Disregarded For Purposes Of Sec. 355(b)(2)(D)
May 16, 2023 - Volume 17 Issue 93 Print Report
X has operated a business since 1960 and has owned all the stock of Y which has conducted an active trade or business since its incorporation in 1961. &n...
Unity Of Ownership And Occupation Not Required For Tax Exemption
May 16, 2023 - Bulletin Print Report
TSF is a non-profit entity. It has two member churches. TSF owns the property...in Paducah, Kentucky. The property has been used for many years as a church by other oc...
Residence And Intent Are The Essential Ingredients For A New Domicile
May 16, 2023 - Bulletin Print Report
Taxpayer stated that his position is that he was not domiciled in Alabama in 2018 and, therefore, he is not subject to Alabama income tax on his wages during that year. The Rev...
Title To Property Did Not Confer Ownership
May 16, 2023 - Bulletin Print Report
This matter involves real property located in the City, ("property"). The Church uses the property exclusively for religious purposes, which the City does not dispute...
Carryover Of Unused Foreign Tax Credits
May 15, 2023 - Volume 17 Issue 92 Print Report
P, a foreign corporation, owns all of the stock of S-1 and S-2. S-1 is a foreign corporation that is incorporated in Country X. S-2 is a domestic corporation engaged in the ban...
Newmont's Acquisition Of Newcrest Will Not Be A Reorganization
May 15, 2023 - Bulletin Print Report
Newmont Corporation, ("NEM"), announced that it has finally bagged the prize it has long been pursuing. It has entered into a binding "Scheme Implementation Deed...
OKE's Acquisition Of MMP Will Be Fully Taxable
May 15, 2023 - Bulletin Print Report
ONEOK, Inc., ("OKE"), and Magellan Midstream Partners, L.P., ("MMP"), announced that they have executed a definitive merger agreement, in whicha newly...
Netflix's Winning Streak Continues In Louisiana
May 15, 2023 - Bulletin Print Report
This case concerns the application of Louisiana's Consumer Choice for Television Act, (the "CCTA"), which authorizes subdivisions of the State to collect franchis...
Refund Of Tobacco Products Excise Tax Granted
May 15, 2023 - Bulletin Print Report
APPsreported andpaid tax to CDTFAon the distribution of "shisha."Shishais a product containing molasses, flavorings, and tobacco. APPs&#...
Section 6501(a) Is Inapplicable To Assessment Of Section 6700 Penalties
May 12, 2023 - Bulletin Print Report
The Internal Revenue Service assessed penalties pursuant to section 6700 of the Code against C in connection with his promotion of a tax shelter scheme. C filed a motion to rec...
Gain Was Realized Before Domicile Changed
May 12, 2023 - Bulletin Print Report
For tax year 2016, petitioners filed form IT-203 as New York State part-year residents. Petitioners reported that they moved out of New York City on May 15, 2016. Petitioners r...
Entire "Gap" Mortgage Subject To New York Recording Tax
May 12, 2023 - Volume 17 Issue 91 Print Report
On July 6, 2011, petitioner (P) purchased an auto dealership, which included real property, in Middle Village, New York. On that date, P entered into a mortgage agreement with...
Electronically Filed Tax Court Petition Was Not Timely
May 12, 2023 - Bulletin Print Report
The Commissioner mailed a notice of deficiency to the Ns on April 14, 2022, determining an income tax deficiency. The notice was dated April 18, 2022, and the notice stated tha...
Livent Corporation Will "Invert"
May 11, 2023 - Bulletin Print Report
Allkem Ltd., and Livent Corporation announced the signing of a definitive agreement "to combine the two companies." From Livent's point of view, the deal resemble...
Failure To Withhold Does Not Relieve Employee Of Liability
May 11, 2023 - Volume 17 Issue 90 Print Report
Mr. I reported income he received in 2009 from GW as "wages, salaries, tips and other employee compensation" on his Massachusetts (M) Resident Income Tax Return filed...
Interest Accrued On U.S. Savings Bonds Was Found To Be "IRD"
May 11, 2023 - Bulletin Print Report
Petitioner filed his 2018 federal income tax return on April 15, 2019. For that year, OZ issued him a Schedule K-1...that reported interest income and dividend income. For 2018...
Claim Excepted From Chicago's False Claims Ordinance
May 11, 2023 - Bulletin Print Report
PL was engaged in the "lease-to-own" business. PL had not been paying the Chicago lease tax on its lease transactions. W, a former employee of PL, filed a complaint a...
Taxpayer Not "Doing Business" in N.Y.
May 10, 2023 - Volume 17 Issue 89 Print Report
P Corporation, (P), sells gifts and awards to companies that wish to honor their employees. P has manufacturing and inventory warehousing facilities located in North...
Vested Rights Cannot Be Extinguished Retrospectively
May 10, 2023 - Bulletin Print Report
H filed earnings tax returns with the city of Kansas City, (the "City"), in March 2022, seeking a refund of earnings taxes withheld from her pay checks during 2019 an...
Out-Of-State Resident Entitled To Sales Tax Refund
May 10, 2023 - Bulletin Print Report
Taxpayer, ("TP"), is a Michigan resident who purchased a recreational vehicle, ("RV"), from an Indiana dealership. TP paid Indiana's seven percent sales...
REIT Does Not Furnish Health Care Services
May 10, 2023 - Bulletin Print Report
TP is a limited liability company that intends to elect to be taxed as a real estate investment trust,("REIT"). The Facilities are marketed as "Independent...
Braves Split-Off Features Tax-Free Debt Extinguishment
May 9, 2023 - Bulletin Print Report
Liberty Media Corporation ("Liberty")is in the process of converting its Atlanta Braves tracking stock into "asset-based" stock via a tax-free distrib...
Payments To Protect Business Reputation Are Deductible
May 9, 2023 - Volume 17 Issue 88 Print Report
The taxpayer is a furniture moving and storage company. During the taxable year, a fire totally destroyed its warehouse, which contained household goods of many of the taxpayer...
Non C-Band Assets Constitute Qualified Replacement Property
May 9, 2023 - Bulletin Print Report
TP is a partnership for federal income tax purposes. TP operates commercial communications satellites. TP has rights to transmit information in...the spectrum. Many of TP's...
California "HCSPs" Are Not "Insurers"
May 9, 2023 - Bulletin Print Report
Theseappeals ariseout of suits brought by M. M seeks to compel the California State Board of Equalization...to collect the gross premium tax, ("GPT"), fro...
Special Dividends Not Part Of The Purchase Price Of Stock
May 8, 2023 - Bulletin Print Report
Husband, ("H"), owned stock in Cellmania, ("C"), a 'C' corporation. On June 11, 2010, Research in Motion, ("R"), sent a letter of intent,...
Sequential Reorganizations Recast
May 8, 2023 - Volume 17 Issue 87 Print Report
W was incorporated in 1954, and was engaged in the business of owning and leasing real estate and personal property. W has 1,169 shares of common stock issued and outstanding....
QRTEA's Deferred Tax Liability
May 8, 2023 - Bulletin Print Report
Qurate Retail, Inc., ("QRTEA"), is reporting a deferred tax liability in the amount of $970 million and labeled"Discount on exchangeable debentures."...
Pre-Wayfair Nexus Not Found
May 8, 2023 - Bulletin Print Report
The sole issue is whether Arizona has "nexus" under pre- Wayfair cases. Nexus is one part of a four-part Commerce Clause analysis set forth in precedent,...
Repeal Of Section 958(b)(4) Singes MO
May 5, 2023 - Bulletin Print Report
Altria Group, Inc., ("MO"), has owned slightlymore than 10 percent of the stock, by vote and value, of Anheuser-Busch InBevSA/NV, ("ABI"), for s...
Tennessee "Respects" Sec. 338(h)(10) Elections
May 5, 2023 - Volume 17 Issue 86 Print Report
SP owns all of the stock of S. S, in turn, owns all of the stock of T. T will distribute more than 50 percent of its retained assets and certain liabilities to S. A subsidiary...
Linen Rental Business Was Not A "Processing Operation"
May 5, 2023 - Bulletin Print Report
AN rents disinfected, reusable linens to hospitals, outpatient facilities, and long-term care centers in Arizona, ("AZ"). AN seeks summary judgment that its purchases...
Right To Proceeds Fixed Before Gift Of Stock Completed
May 5, 2023 - Bulletin Print Report
As of January 1, 2015, CSTCwas owned by petitioner and his two brothers, with each such sibling holding a one-thirdshare of the stock. FC is a tax-exempt charitable...
Taxpayer Received A Profits Interest For Services
May 4, 2023 - Bulletin Print Report
Before October 14, 2011, JL owned 100 percent of the outstanding shares or membership interests in NPA, Inc., CCS, NOU, and ACC. Those entities conducted consumer loan business...
Loss On Sale Of Farm To Son-In-Law Is Deductible
May 4, 2023 - Volume 17 Issue 85 Print Report
In 1939, Petitioner, (P), purchased a farm, paying $5,500 for it. He made improvements to the farm. Title to the farm was in the name of P's spouse. In October 1938, P'...
Protocol Upgrade Is Not A Realization Event
May 4, 2023 - Bulletin Print Report
An individual holds a cryptocurrency native to a blockchain distributed ledger that undergoes a protocol upgrade. In particular, Mr. T, on Date 1, purchases ten units of C, a c...
Energy Project Properly Increased Value Of Underlying Real Estate
May 4, 2023 - Bulletin Print Report
Plaintiff, ("P"), owns a 14.6 acre tract of land in Lincoln, Rhode Island, (the "property"). Pentered into a long-term lease with G for the constructi...
Partnership Interest Did Not Acquire A Business Situs In Massachusetts
May 3, 2023 - Bulletin Print Report
E, a Delaware Limited Liability Company, ("LLC"), provided portfolio management services. E was classified as a partnership. E had offices in California, Massachusett...
"In Connection With" Is Broadly Construed
May 3, 2023 - Volume 17 Issue 84 Print Report
Sec/ 174(a)(1) of the Code allows a taxpayer to take as a deduction "experimental expenditures which are paid or incurred by him during the taxable year in connec...
Disability Payments Were Includible In Gross Income
May 3, 2023 - Bulletin Print Report
On September 8, 2014, H was hired to work for an insurance agency and brokerage company. The company provided disability insurance for its employees, including H. On June 1, 20...
North Carolina Law Does Not Incorporate Federal Definition Of "Partner"
May 3, 2023 - Bulletin Print Report
"A taxpayer that has constructed, purchased, or leased renewable energy property" is eligible to receive a credit "if the property is placed in service in this S...
JPM Makes A "Bargain" Purchase
May 2, 2023 - Bulletin Print Report
JPMorgan Chase, ("JPM") announced that it has acquired "the substantial majority of assets and assumed the deposits and certain other liabilities of First Republ...
"Headlee" Claim For Refund Determined To Be Time-Barred
May 2, 2023 - Bulletin Print Report
The City is served by two electric utility providers, L and C. The City granted L use of the City's rights of way. In exchange, L agreed to "collect and remit to the C...
Loss On Sale To Step-Grandson Not Barred
May 2, 2023 - Volume 17 Issue 83 Print Report
H and M are husband and wife. H was the owner of a two-family apartment house and the land on which it stood in Syracuse, New York. On Marc...
Gains Are "Reportable As Income"
May 1, 2023 - Bulletin Print Report
H is a limited liability company that acquired leasehold interests in several oil and gas properties. H sold its leasehold interests and reported to the Comptroller on its fran...
Bankruptcy Court Cannot Grant Innocent Spouse Relief
May 1, 2023 - Bulletin Print Report
Debtor, ("D"), commenced this adversary proceeding seeking a determination under section 505 of the Bankruptcy Code that she owes no taxes for 2015, 2016, and 2017 as...
The Long Reach Of Sec. 1042(e)(1)
May 1, 2023 - Volume 17 Issue 82 Print Report
TP is a shareholder of A, a domestic C corporation. A maintains an ESOP. TP did not receive the shares in a distribution from a plan described in Sec. 401(a) of the Code, or a...
"CRAT" Distributions Were Ordinary Income
May 1, 2023 - Bulletin Print Report
The A and G charitable remainder annuity trust, ("CRAT"), was created on November 2, 2015. A and G were the CRAT's non-charitable beneficiaries. The CRATins...
Can Illumina Spin-Off GRAIL Tax-Efficiently?
April 28, 2023 - Bulletin Print Report
Illumina, Inc., ("ILMN"),acquired GRAIL, ("G"), in August 2021. The transactionwas structured along familiar lines. ILMN, to effect the acquisit...
Unsworn Letter From Contractor Cannot Establish Basis
April 28, 2023 - Bulletin Print Report
Petitioners, ("Ps"), owned real property located at 500 Old Town Road, Southampton, New York, (the "S property"). On December 4, 2013, Ps sold the S propert...
Merger Without "Continuity" Cannot Be A Reorganization
April 28, 2023 - Volume 17 Issue 81 Print Report
The Tax Court held that literal compliance with the provisions of a state law authorizing a merger would not in itself effect a reorganization; that the test of contin...
Items That Have General Use Are Not "Medical Equipment"
April 28, 2023 - Bulletin Print Report
The taxpayer filed a claim for refund of the sales tax she paid on the purchase of a "swim spa." The Department of Revenue, (the "Department"), determined t...
A Rolled Over IRA Constitutes "Retirement Funds"
April 28, 2023 - Bulletin Print Report
Debtor was married to RK, who passed away in 2008. After her husband's death, Debtor "rolled over"RK's IRA to Debtor's IRA. All funds in the account...
Amounts Spent By "Relocation" Entity Not Income To Employee
April 27, 2023 - Volume 17 Issue 80 Print Report
Y has established an employee relocation program designed to assist its employees being transferred to new work locations. As part of the program Y has entered into a contract...
"Solely" Leaves No Leeway
April 27, 2023 - Bulletin Print Report
Lithium Americas Corporation, ("L"), and Arena Minerals, Inc., ("A"), each a Canadian corporation, announced the completion of their plan of arrangement &qu...
Employee Could Not Prove He Was A "Real Estate Professional"
April 27, 2023 - Bulletin Print Report
Petitioners, ("Ps"), deducted rental real estate losses for 2017 from their three cabins in Maine. Respondent determined that Ps' loss from the cabins was a passi...
No Deductible Loss On Sale Of Residence
April 26, 2023 - Volume 17 Issue 79 Print Report
A taxpayer and his spouse conveyed their unencumbered personal residence to an unrelated individual in exchange for an annuity agreement that provided for payments of a specifi...
Aircraft Not "Situated" In California
April 26, 2023 - Bulletin Print Report
A7, a Delaware limited liability company,owned a GulfstreamG-550 jet aircraft. The aircraft was physicallypresent in Ventura County for seven and a half month...
An Interstate Compact Is Construed As A Contract
April 26, 2023 - Bulletin Print Report
In 1953, New York, ("NY"), and New Jersey, ("NJ"), entered into the Waterfront Commission Compact, (the "WCC"). In 2018, NJ sought to withdraw fro...
Debtor Not Engaged In The Business of Liquidating
April 25, 2023 - Volume 17 Issue 78 Print Report
BM's primary business was the transportation of medical specimen between doctors' offices and laboratories. On July 7, 2000, BM filed for Chapter 11 bankruptcy protecti...
Hospital Assessment Fee Not An Illegal Exaction
April 25, 2023 - Bulletin Print Report
The purpose of the program is "to levy an assessment fee on hospitals..." The program imposes a yearly assessment on non-exempt hospitals in an amount calculated as a...
Only Trade-In Consideration Reduces Sales Price
April 25, 2023 - Bulletin Print Report
On October 24, 2015, L purchased a new motor vehicle, ("vehicle 1"), from an automotive dealership for $36,590.00, and paid $3,155.89 in New York State sales tax on t...
Professor's Wages Not Sourced To Location Of Students
April 25, 2023 - Bulletin Print Report
State taxable income derived from Utah sources includes state taxable income attributable to or resulting from...the carrying on of a business, trade, profession, or occupation...
The Willens Deal Survey April 2023
April 24, 2023 - The Deal Survey: April 2023 Print Report
Welcome to this month's summary of deals. Full reports on some of these transactions can be found via the link in the description, or by searching the company name in our database.
Albertsons Will Treat "Spinco" As "Merger Consideration"
April 24, 2023 - Bulletin Print Report
One of the longest-running sagas in recent deal history involves the union of Albertsons Companies, Inc., ("ACI"), and Kroger Co., ("KC"). In connection wit...
Structural Constitutional Challenges Belong In District Court
April 24, 2023 - Bulletin Print Report
The Securities Exchange Act and the FTC Act authorize the Commissions to address statutory violations either by bringing civil suits or by instituting their own administrative...
Property Tax Appeal Dismissed For Lack Of Subject Matter Jurisdiction
April 24, 2023 - Bulletin Print Report
On August 25, 2021, IXCfiled with the BOR a "Special COVID-19-Related Complaint Against the Valuation of Real Property" with regard to three separate parcels of...
Payment Is Made When A Check Is Delivered
April 24, 2023 - Bulletin Print Report
In February 1995, G incorporated R. In June 1995, he incorporated H, and H became R's parent. R paid $7.25 million for C, a nursing home, and for the leases to nine other n...
Employee Transfer Does Not Create Massachusetts Nexus
April 24, 2023 - Volume 17 Issue 77 Print Report
ADSW and ADNAC, ADSW's parent, were subsidiaries of Allied-Domecq, an international conglomerate headquartered in England. Included within the Allied-Domecq family is Dunki...
HBM Will Acquire CMMC In A Tax-Free Manner
April 21, 2023 - Bulletin Print Report
Hudbay Minerals, Inc., ("HBM"), and Copper Mountain Mining Corporation, ("CMMC"), each organized under the laws of Canada, have announced a business combina...
Transfer Of QRP To Estate Not A Disposition
April 21, 2023 - Volume 17 Issue 76 Print Report
SH owns 100 percent of the common stock of X. SH will sell qualified securities to an ESOP that is qualified under Sec. 401(a) and satisfies the requirements of Sec. 4975(e)(7)...
Membership Interest In LLC Treated As "Stock"
April 21, 2023 - Bulletin Print Report
On March 13, 2003, LLC was formed as an Arizona limited liability company. Plaintiff, ("P"), was a member of LLC. LLC was taxed as an 'S' corporation...
Construction And Building Materials Are Exempt From Sales Tax
April 21, 2023 - Bulletin Print Report
Company is a retailer that sells grass seed, erosion control blankets, and fertilizer. On occasion, Company sells those products to construction contractors who present Company...
Charter's Equipment Was Used Directly In Manufacturing
April 20, 2023 - Bulletin Print Report
To provide telecommunications service to Charter, ("C") customers, CI's various pieces of equipment work together in a coordinated and synchronized fashion to tra...
Sec. 1042 Election Made By Decedent's Executor
April 20, 2023 - Volume 17 Issue 75 Print Report
On September 21, 1989, Decedent (D) sold 9,161 shares of Corporation A (CA) common stock to the ESOP maintained by CA. At the time of D's death on August 14, 1990, he had y...
Only Income From "Incidental" Investments Is Deductible
April 20, 2023 - Bulletin Print Report
The LLCs are investment funds, and they acquire investors through private offerings...known as a private placement. The LLCs invest in debt instruments like defaulted credit ca...
The Claim For Which Legal Fees Were Incurred Was Personal
April 20, 2023 - Bulletin Print Report
A was a physician, geneticist, and molecular biologist. A holds over 34 patents related to gene therapy. During A's years at the University of Southern California, his rese...
NWSA Settles Defamation Case
April 19, 2023 - Bulletin Print Report
As everyone now knows, Fox News has reached an agreement with Dominion Voting Systems resolving, via settlement, a lawsuit brought by Dominion in which Fox was accused of infli...
Buildings Were Not "Damaged" By COVID-19 Pandemic
April 19, 2023 - Bulletin Print Report
RSA 76:21, I, provides that local officials "shall prorate" a building's assessment "whenever a taxable building is damaged due to uninten...
Sale Of Undamaged Property Is An Involuntary Conversion
April 19, 2023 - Volume 17 Issue 74 Print Report
TP owned a four-family apartment building situated on a city lot at Location B in City A which was destroyed by fire. TP received insurance proceeds as compensation for the des...
Intangible Assets Immune From Direct Property Taxation
April 19, 2023 - Bulletin Print Report
Tax assessors sometimes appraise commercial property using the income method. Los Angeles County, (the "County"), incorrectly assessed a hotel owned by the taxpayer,...
GrubHub Is A Retailer's Agent
April 19, 2023 - Bulletin Print Report
Appellant operated a restaurant from June 1, 2011 through July 15, 2014. Appellant made in-person sales at the restaurant, and online sales via Eat24 and GrubHub. Appellant and...
Section 6038(b) Penalties Are Not "Assessable Penalties"
April 18, 2023 - Bulletin Print Report
P owned 100 percent of KCI, a foreign corporation, and 100 percent of MVI, also a foreign corporation. P had a reporting obligation under section 6038(a) to report his ownershi...
Medical Equipment Retailer Denied "Government Body" Exemption
April 18, 2023 - Bulletin Print Report
The Illinois Retailers' Occupation Tax Act, ("ROTA"), imposes a tax upon persons engaged in this State in the business of selling tangible personal property to pu...
'S' Corporation Shareholder Claimed Correct Tax Reduction Credit
April 18, 2023 - Volume 17 Issue 73 Print Report
G is the sole shareholder of TLC and FGR, each an 'S' corporation. All of the corporations' operations are contained solely within a New York State "enterprise...
"Concession Fee" Is Not "Rental Income"
April 18, 2023 - Bulletin Print Report
A and E operate car rental companies at the Minneapolis-St. Paul International Airport. A and E lease their facilities from the Metropolitan Airports Commission, (the "MAC...
Specially Designed Vehicles Not Subject To Excise Tax
April 17, 2023 - Bulletin Print Report
Almost half of the peanuts produced in the U.S. are harvested in Georgia. During the harvesting season, peanuts must be properly dried. The farmer loads the peanuts onto specia...
Single Sale Comminuted Into Multiple Sales
April 17, 2023 - Volume 17 Issue 72 Print Report
The taxpayer corporation was indebted to a shareholder. Four lots of stock owned by the corporation were transferred to the shareholder. On two lots there were gains; on the ot...
FDX Obtains A Credit For Taxes Paid On "Offset Earnings"
April 17, 2023 - Bulletin Print Report
The Tax Cuts and Jobs Act, ("TCJA"), replaced the worldwide system of corporate taxation with a "territorial" system. When U.S. corporations receive dividen...
Sleep Center Performs Services In The "Field Of Health"
April 17, 2023 - Bulletin Print Report
ASC's central function is to conduct sleep studies and produce reports on those studies. The reports are used by physicians...to make diagnoses, determine whether or not to...
Parent Inherits Liquidated Subsidiary's Business History
April 14, 2023 - Volume 17 Issue 71 Print Report
Dover Corporation, (D), owned DCF, a Delaware corporation. DCF owned DUK. DUK owned H&C, a U.K. corporation engaged in the business of installing and servicing elevators.&n...
Navigating The Constructive Ownership Rules
April 14, 2023 - Bulletin Print Report
While there are several "flavors" of constructive ownership (of stock) rules interspersed throughout the Internal RevenueCode, it is safe to say that those cont...
Residency Is A Use-Based Requirement
April 14, 2023 - Bulletin Print Report
The homestead tax exemption...says: "Every person who the legal or equitable title to real estate and maintains thereon the permanent residence of the owner...shall be exe...
Partner Entitled To Pass-Through Energy Credit
April 14, 2023 - Bulletin Print Report
A taxpayer that has constructed, purchased, or leased renewable energy property is eligible to receive a credit "if the property is placed in service in this State during...
Sale For Nonrecourse Note Not Given Tax Effect
April 13, 2023 - Volume 17 Issue 70 Print Report
In Year A, M owned "a" shares of 'S' corporation stock. In Month B of Year A, 'S' corporation announced that it planned to establish two trusts to whi...
Retirement Account Withdrawals Were Penalized
April 13, 2023 - Bulletin Print Report
In 2018, G submitted a withdrawal request for $71,147 to his retirement company, GW, which GW duly processed. GW issued a 2018 Form 1099-R to G, indicating a distribution of $7...
Full-Time Employees Were Not "Real Estate Professionals"
April 13, 2023 - Bulletin Print Report
During 2018, PH was employed full time by Northrup Grumman Systems Corporation and PW was employed full time by the U.S. Department of Defense. In addition to their employment,...
OTCs Are Not "Operators" Of Lodging Establishments
April 13, 2023 - Bulletin Print Report
In Clark County, Nevada, a "combined transient lodging tax" is imposed with the sale or rental of "transient lodging" to any individual natural person who h...
GasLog Ltd. Intends To "Roll Up" GasLog Partners
April 12, 2023 - Bulletin Print Report
GasLog Ltd., ("GLL"), and GasLog Partners, ("GLP"), announced that they have entered into a definitive merger agreement pursuant to which GLL will acquire &...
NEM's "Best And Final Proposal" Looks Like A Winner
April 12, 2023 - Bulletin Print Report
Newmont Corporation, ("NEM"), submitted a revised proposal to the Board of Directors of Newcrest Mining Ltd., ("NCM"), that appears to be more in line with...
Minimum Annual Rent Is The CRT Tax Base
April 12, 2023 - Volume 17 Issue 69 Print Report
Petitioner (P) entered into a license agreement with the NYC Department of Parks and Recreation (Ps) on August 3, 2007 with respect to the operation and management of the indoo...
Data Processing Services Are Exempt From Sales Tax
April 12, 2023 - Bulletin Print Report
In 2009, the legislature expanded the list of transactions subject to retail sales tax to include...digital automated services. The definition of "digital automated servic...
Disproportionate Incorporation Recast
April 11, 2023 - Volume 17 Issue 68 Print Report
A owned all of the stock of X. A organized Y, paying $50x for all of the common stock, and caused X to purchase from Y all of Y's four percent noncumulative, nonvoting pref...
Design Costs Are Part Of Taxable Value For Use Tax Purposes
April 11, 2023 - Bulletin Print Report
Federal contractors are generally subject to paying use tax to Washington on the value of articles used in the process of a federal contract. A contracted with the Army in 2007...
Taxpayers Did Not Substantiate The Value Of Their Casualty Loss
April 11, 2023 - Bulletin Print Report
Under section 165 of the Code, a taxpayer can deduct non-business losses that "arise from...casualty..." The first requirement of casualty losses is that only physica...
Amortized Bond Premium Was Not Deductible
April 11, 2023 - Bulletin Print Report
New York adjusted gross income, ("AGI"), starts with a taxpayer's federal AGI and is increased and decreased by New York-specific modifications. Included among th...
Divorced Father Secures Dependency Exemption Deductions
April 10, 2023 - Volume 17 Issue 67 Print Report
Petitioner (P) married CLA in 2008. CLA had two children from previous relationships: BE was born in 2006, and HA was born in 2007. P, CLA,...
Washington's Capital Gains Tax Is Constitutional
April 10, 2023 - Bulletin Print Report
Taxation in Washington, ("W"), is unique. "We have no state personal or corporate income tax and instead generate revenue primarily through a combination of sale...
Taxpayer Must Repay Her "APTC" Payments
April 10, 2023 - Bulletin Print Report
On May 15, 2018, P enrolled in health insurance for herself and her two dependents. On the basis of the information P provided in her application, she received a monthly APTC o...
Liberty Media Goes With Counsel's Opinion For Braves Split-Off
April 6, 2023 - Bulletin Print Report
Liberty Media Corporation, ("LMC"), announced, uncharacteristically we might add, that it is proceeding with the split-off of Atlanta Braves Holdings, Inc.witho...
Could SJM Have Divested Its Pet Foods Business Tax Efficiently?
April 6, 2023 - Bulletin Print Report
On February 8, 2023, Post Holdings, Inc., ("PHI"), and PCB Sub, LLC, ("PCB"), a newly created, wholly-owned, indirect subsidiary of PHI, and a disregarded e...
Loss From Sale Of Metals Disallowed
April 6, 2023 - Volume 17 Issue 66 Print Report
Petitioner (P) issued a bona fide purchase order on July 12, 1950 for 200,000 pounds of mixed metal. The company shipped nine lots totaling 199,396 pounds in April and Septembe...
Household Income Exceeded Exemption Guidelines
April 6, 2023 - Bulletin Print Report
R filed an application requesting a poverty tax exemption for her residential real property. The Board denied R's application, finding that she did not meet the "Exemp...
Consent To Change Accounting Method Not Obtained
April 6, 2023 - Bulletin Print Report
"Base acres" are the right to receive farm program subsidies for the production of certain commodities from the USDA. These rights attach to the farm, not the farm ow...
Relinquishment Of Anticipated Income Does Not Give Rise To Loss
April 5, 2023 - Volume 17 Issue 65 Print Report
The taxpayer was 47 years of age in 1967 when her husband died at age 49 while in his 28th year of employment with the Federal Government. Upon her husband's death, the tax...
Landlord Exemption Not Substantially Similar To Homestead Exemption
April 5, 2023 - Bulletin Print Report
P has lived in his LC home since 1990. P's wife, DS, owned two rental properties in Utah. Neither P nor DS ever resided at the Utah properties. DS rented the properties to...
Verano Holdings Corporation Will Undertake A "Recapitalization"
April 5, 2023 - Bulletin Print Report
VeranoHoldings Corporation, ("VRNO"),a Canadian corporation whose stock is tradedon the Canadian Securities Exchange and is quoted for trading in th...
EXR Will Pursue A Tax-Free Acquisition Of LSI
April 4, 2023 - Bulletin Print Report
Extra Space Storage, Inc., ("EXR"), and Life Storage, Inc., ("LSI"), announced that the two corporations, each a real estate investment trust, ("REIT&q...
Retained Rights Prevents Sale Or Exchange
April 4, 2023 - Volume 17 Issue 64 Print Report
During the early part of 1946, petitioner became interested in forming a corporation. The corporation was incorporated on June 24, 1946, under the name TWI, and thereafter enga...
Wholesaler-To-Wholesaler Transactions Are Exempt From Business Tax
April 4, 2023 - Bulletin Print Report
E discovers, develops, manufactures, markets, and sells pharmaceutical products in the United States. E does not maintain a place of business in Tennessee, ("T"). The...
Taxpayer Was Not A "Speculative Builder"
April 4, 2023 - Bulletin Print Report
In 2003, D purchased property in Spokane, Washington. In 2004, D quitclaimed the property to SU. D is SU's sole member. D and SU entered into a "purchase and sale agre...
"Involuntary" User Fee Was Not A Tax
April 4, 2023 - Bulletin Print Report
P is a non-profit residential real estate association consisting of individual members who each owned real property required to connect to public sewers. Defendant amended sect...
EDR And WWE Will Join Forces To Become "TKO"
April 3, 2023 - Bulletin Print Report
Endeavor Group Holdings, Inc., ("EDR"), and World Wrestling Entertainment, Inc., ("WWE"), founded by the legendary Vince McMahon, today announced what, in r...
Part-Year Resident Tax Calculation Is Constitutional
April 3, 2023 - Volume 17 Issue 63 Print Report
In April 2000, petitioners moved from California to New York. They filed a New York income tax return for 2000 as part-year residents, but reported only a portion of petitioner...
Arm's-Length Sale Is The Best Evidence Of Value
April 3, 2023 - Bulletin Print Report
Petitioner, ("P"), is the owner of a parcel of land, (the "subject premises"), in the Town of Glenville,containing a 10,000 square foot office buildin...
Lack Of Return Of Foreclosure Mailing Not Decisive
April 3, 2023 - Bulletin Print Report
In May 2018, defendant Saratoga County, (the "County"),commenced a foreclosure proceeding against the property at issue. In December 2018, a default judgment in...
Altria Group, Inc. Can Now Monetize Its Stake In ABI Tax-Efficiently
April 2, 2023 - GGGHHHIIIJJJ Print Report
Now that AltriaGroup, Inc., ("MO"), has "sustained" its heretofore "paper"loss in JUULLabs, Inc., ("JUUL"), through th...
New Jersey Does Not Tax "Phantom" Income
March 31, 2023 - Bulletin Print Report
M invested $1.1 million in H, a limited liability company. H held a patent for an energy drink bottle. H was not a success and annual losses reduced M's capital account fro...
Determining Basis Of Stock Received In Contingent Stock Reorganization
March 31, 2023 - Volume 17 Issue 62 Print Report
X is a domestic corporation engaged in the manufacture and sale of consumer products. The stock of X is listed on the New York Stock Exchange. Y is a domestic corporation engag...
Uber Driver Did Not Maintain "Adequate Records"
March 31, 2023 - Bulletin Print Report
O earned money carrying passengers using software from the ride-hailing company Uber. He used his vehicle for both business and personal purposes. O did not keep records of his...
Retired Couple's Social Security Benefits Were Largely Taxable
March 31, 2023 - Bulletin Print Report
Petitioners, ("Ps"), were retired in 2019. They received during that year investment income, Social Security benefits, and retirement benefits. Ps reported on Schedul...
Asset Not Acquired Or Passed From A Decedent
March 30, 2023 - Bulletin Print Report
In Year 1, A, an individual, established irrevocable trust, "T," and funded T with "Asset" in a transfer that was a completed gift for gift tax purposes. A...
Sec. 1033 Applies To Sales Of "Downed" Timber
March 30, 2023 - Volume 17 Issue 61 Print Report
In Rev. Rul. 72-372, 1972-2 C.B. 471, the taxpayer was the owner of timberland. As a result of a hurricane, a considerable number of trees were uprooted. The timber was not ins...
On Whom Does The "Incidence" Of Tax Fall?
March 30, 2023 - Bulletin Print Report
The excise at issue was imposed on a vehicle leased by APP. APP was an active-duty Marine...who temporarily resided in B due to his duty assignment at Fort Devens.APP lea...
"Income Earned" In Another State
March 30, 2023 - Bulletin Print Report
TP is a Louisiana, ("LA"), resident. For 2020, TP sold property in Arkansas, ("AK"), which resulted in long-term capital gain of $120,591. AK calculates the...
Sale And Exchange Properly Segregated
March 29, 2023 - Volume 17 Issue 60 Print Report
By contract between M, an individual, and the JC, a corporation, it was provided that M should sell 1,026 shares of his stock of 2C for $65 per share, but should retain the bal...
Nominal Claims For Refund Are Not "Duly Filed"
March 29, 2023 - Bulletin Print Report
A taxpayer may not sue the government for a refund of an overpayment unless the taxpayer has "duly filed" a claim with the I.R.S. A claim that is untimely filed pursu...
Claims Were Not Personal Obligations Of Decedent
March 29, 2023 - Bulletin Print Report
Decedent, ("D"), died April 27, 2015. D had two children, MM and CMD. On August 7, 2003, D and his then business partner formed NH. In 2007, NH borrowed approximately...
"In-House" Leveraged Spin-Off Accomplished
March 29, 2023 - Bulletin Print Report
Parent, ("P"), and Distributing, ("D"), are members of an affiliated group of corporations that join in the filing of a consolidated U.S. federal income tax...
Partnership Interest Not Involuntarily Converted
March 28, 2023 - Volume 17 Issue 59 Print Report
TPs became limited partners in XPS in 1983 by contributing "$k." The XPS activities include investing in commercial real estate. During 1988, the General Partners ent...
IBM Cannot Deduct Royalty Payments From Foreign Affiliates
March 28, 2023 - Bulletin Print Report
Petitioner, the legal owner of certain intangible property including the International Business Machines, ("IBM"), brand, is organized under the laws of New York. Dur...
No Vested Right To Higher Rate On Tax Refunds Found
March 28, 2023 - Bulletin Print Report
BFRA section 16 provides: "...notwithstanding any other provision of law, the Comptroller shall set the annual interest rate for an income tax refund that is the result of...
Incorporation Accelerates Sec. 481 Adjustment
March 27, 2023 - Volume 17 Issue 58 Print Report
PRS commenced business in 1965 and established two separate businesses, a P business (PB) and a T business (TB). PRS applied for and received permission to change its method of...
Cost Of Food Is Not A Medical Expense
March 27, 2023 - Bulletin Print Report
TP purchased Product for TP's infant, who, at the time,was five months old and qualified as TP's dependent. Product is neither medicine nor a drug, but rather foo...
Transfer Of Real Estate To An LLC Was A Change In Ownership
March 27, 2023 - Bulletin Print Report
In 2000, the As purchased, as tenants by the entireties, a non-homestead property in Miami, (the "Subject Property"). In 2015, the As established TP, a for-profit Flo...
Remote Employee Conducted Business In Alabama
March 27, 2023 - Bulletin Print Report
During 2020, Taxpayer, ("TP"), worked for BBVA. He was renting an apartment in Alabama. During the pandemic, his job was changed to a remote job, and he was able to w...
Raytheon Company Denied Preferential Tax Rate
March 24, 2023 - Bulletin Print Report
Petitioner, ("P"), is the parent company of an affiliated group of entities. P and its affiliates, (the "R combined group"), filed combined reports... Durin...
Diversification Achieved In A "Permissible" Manner
March 24, 2023 - Volume 17 Issue 57 Print Report
A, B, Trust 1 (T1), and Trust 2 (T2) propose to form a limited partnership, P. A, B, T1, and T2 will each contribute to P shares of X common stock, stock that is traded on the...
Sales Proceeds Excluded From Receipts Factor
March 24, 2023 - Bulletin Print Report
Company is a limited partnership that files federal form 1065 and Colorado form DR 0106 partnership returns. Company is a real estate rental company. Company has always reporte...
Collection Of Sales Tax Is Not The Conduct Of "Trade" Or "Commerce"
March 24, 2023 - Bulletin Print Report
G filed this class action under the Unfair Trade Practices and Consumer Protection Law, ("UTPCPL"), alleging that APPs engaged in unfair trade practices by charging s...
The Willens Deal Survey March 2023
March 23, 2023 - The Deal Survey: March 2023 Print Report
Welcome to this month's summary of deals. Full reports on some of these transactions can be found via the link in the description, or by searching the company name in our database.
Returned Surplus Not An Employer Reversion
March 23, 2023 - Volume 17 Issue 56 Print Report
On Date 1, Company (C) purchased certain assets and assumed certain liabilities from the Prior Company. In connection with this transaction, assets and liabilities of...
The Homestead Exemption Applies To Section 724(b) Of The B.C.
March 23, 2023 - Bulletin Print Report
In 2011, the Debtor and her husband bought their residence. The Debtor filed a voluntary petition seeking relief under Chapter 7 of the U.S. Bankruptcy Code. In her petition, t...
Date Of Delivery Of Deed Is Controlling
March 23, 2023 - Bulletin Print Report
I purchased the property for use as a church through a deed dated June 29, 2018, that was recorded in the county land records on September 18, 2018. On Augus...
AMC Seeks To Convert Its "APEs" Into Common Stock
March 22, 2023 - Bulletin Print Report
AMC Entertainment Holdings, Inc., ("AMC"), plans to convenea special meeting of its stockholders at which certain proposed amendments to the company's Certi...
Partner Cannot Make Sec. 1033 Deferral Election
March 22, 2023 - Volume 17 Issue 55 Print Report
In 1960, the taxpayer, a medical doctor, formed a partnership in State M with two other medical doctors for the purpose of owning and managing a medical building. The taxpayer...
Estate Did Not Effect A Qualified Reformation Of A "CRAT"
March 22, 2023 - Bulletin Print Report
On September 2, 1997, B settled the Trust. On September 17, 2015, she executed a will that provided for the transfer of her residuary estate to the Trust. Upon B's death, t...
Merged Corporation Lacked Capacity To Petition Tax Court
March 22, 2023 - Bulletin Print Report
P was a 'C' corporation. P was the parent of an affiliated group of corporations which included T. T was a 'C' corporation. On January 5, 2001, P merged, downst...
Holding Company And Operating Subsidiary Were "Unitary"
March 21, 2023 - Bulletin Print Report
Appellant, ("APP"),an individual, was a California non-resident. APP owned an indirect membership interest in Holdco, ("H"), which was classified as a...
Waiving Attribution In Order To Qualify Under Sec. 302(b)(3)
March 21, 2023 - Volume 17 Issue 54 Print Report
A corporation (C) was owned by a father (F)and his three sons (S1, S2, and S3). F is a director, employee, and the President of C. S1 is a director, a former em...
Statute Of Limitations Never Began To Run
March 21, 2023 - Bulletin Print Report
S was a partnership. S claimed a loss of $35.5 million arising from a tax-shelter transaction on its 2001 return. A partnership's return "shall be filed...at such time...
Netflix Was Not A "Franchise Holder"
March 21, 2023 - Bulletin Print Report
In 2007, the Georgia General Assembly passed the "TV Act." The Appellants argue that the trial court erred in concluding that the TV Act does not provide them with a...
UBS To Acquire Credit Suisse
March 20, 2023 - Bulletin Print Report
Whether voluntarily or not, the die is now cast. UBS is acquiring itsbeleaguered rival, Credit Suisse, in a transaction apparently brokered by the Swiss banking authoriti...
SIVB Files A Chapter 11 Petition
March 20, 2023 - Bulletin Print Report
SVB Financial Group, ("SIVB"), announced it has filed a voluntary petition "for a court supervised reorganization under Chapter 11 in the United States Bankruptc...
Defining Control
March 20, 2023 - Volume 17 Issue 53 Print Report
Certain persons transferred property to a corporation in exchange for a combination of voting and nonvoting stock, i.e., 83 percent of the Class A voting common stock, 83 perce...
StubHub "Sold At Retail" Admissions To Events
March 20, 2023 - Bulletin Print Report
StubHub, Inc., ("S"), operates an online marketplace where tickets to sporting events, concerts, theater and other live entertainment services were bought and sold. T...
RSUs And Options Are Not Counted For Section 355(a)(1)(D) Purposes
March 20, 2023 - Bulletin Print Report
D is the parent of a worldwide group, (the "D Group"). D has shares of common stock and convertible preferred stock outstanding. D also has RSUs, stock options, and r...
Massachusetts Tax Exemption Encompasses Capital Gains
March 17, 2023 - Bulletin Print Report
G.L.c. 121A provides a tax exemption as an incentive for private entities to invest in urban redevelopment projects. The tax concession provides that these private entities are...
Distributions Not "Annual Additions"
March 17, 2023 - Volume 17 Issue 52 Print Report
TP elected to be treated as an 'S' corporation effective as of June 1, 1989. Effective as of January 1, 1994, TP established the Plan, an ESOP, as defined in Sec. 4975(...
Fraudster Fails Section 1341's Second Prong
March 17, 2023 - Bulletin Print Report
G was a psychiatrist in Texas between 2007 and 2014. In October 2014, he was indicted on fifty-two counts of health care fraud for submitting false claims for reimbursement to...
Failure To Provide Resale Certificate Proves Decisive
March 17, 2023 - Bulletin Print Report
Retail vendors in the District of Columbia, ("DC"), are generally required to pay a sales tax in connection with sales of tangible personal property. See D.C. Code se...
Persistent Losses Render Section 183(a) Applicable
March 16, 2023 - Bulletin Print Report
During the years at issue, S and F owned the Company, a horse farm in New Jersey. The taxpayers lost more than $3.5 million during the years at issue, 2010-2013.The Tax C...
Sec. 167(c)(2) Does Not Prevent Lease Termination Deductions
March 16, 2023 - Volume 17 Issue 51 Print Report
ABC is a Michigan corporation that makes and distributes non-alcoholic beverages. ABC acquired a company that held a long-term lease on a bottling plant. ABC concluded that the...
QTIP Trust Property Is Included In The Gross Estate
March 16, 2023 - Bulletin Print Report
Decedent's husband's will instructed the trustees of the SK Trust to pay the trust's net income to decedent at least quarterly during her lifetime and authorized th...
Goodwill Industries' Thrift Store Is Exempt From Property Taxation
March 16, 2023 - Bulletin Print Report
The subject property is owned by GW, of which the sole member is Goodwill Industries, Inc., ("G"). G is a non-profit corporation and is exempt from federal taxes unde...
Anti-Dilution Adjustments In Connection With Spin-Offs Are Benign
March 15, 2023 - Bulletin Print Report
Where a corporation which has stock purchase warrants outstanding engages in a tax-free spin-off, it is generally the case that the terms of the warrants will be adjusted in or...
Acquisition Found To Be A "QSP"
March 15, 2023 - Volume 17 Issue 50 Print Report
P is a state chartered banking corporation. It has outstanding 75,000 shares of common stock held by approximately 300 shareholders. T is a corporation formed to purchase a par...
Momentary Ownership Overlooked For 'S' Corporation Election Purposes
March 15, 2023 - Bulletin Print Report
D corporation, ("D"),was formed on Date 1. On Date 2, D elected to be treated as an 'S' corporation. D is engaged in Business X and Business Y, which is...
Devisee Had A Legal Interest In Property
March 15, 2023 - Bulletin Print Report
The real property at issue was owned by BH, who died on December 13, 2019. BH's will devised her real and personal property to L. At some point before BH's death, the p...
What Will Become Of SVB's NOLs?
March 14, 2023 - Bulletin Print Report
SVB Financial Group, the parent of Silicon Valley Bank, had, surprisingly, approximately $6.4 billion of net operating loss carryovers as of the close of its most recent taxabl...
Banking Difficulties Shine A Spotlight On Accounting For Debt Securities
March 14, 2023 - Bulletin Print Report
The Federal Reserve's efforts to increase interest rates, with a view towards taming inflation, has caused problems for certain financial institutions whose asset/liability...
Unamortized Loan Costs
March 14, 2023 - Volume 17 Issue 49 Print Report
Mr. A died in 1983. During his lifetime, he hadpurchased a number of single-family homes, townhouses, and condominiums that he leased to others.  ...
Related Party License Arrangement Did Not Have Economic Substance
March 14, 2023 - Bulletin Print Report
Skechers USA, Inc., ("S") is a company headquartered in California. S sells footwear. In 1999, S formed SKII, a Delaware corporation, as a wholly-owned subsidiary. Th...
Water Rights Are Real Property And Like Kind To Fee Interest in Realty
March 14, 2023 - Bulletin Print Report
In Year 1, F began Ranch, ("R"), and was the original licensee of a License for the diversion and use of water issued by State A. Ranch Owners are the successors in i...
Abandoned Property "Escheats" To The State Of Purchase
March 13, 2023 - Bulletin Print Report
"Escheatment" is the power of a State...to take custody of property deemed abandoned. These cases require us to decide which States have the power to escheat the proc...
80 Percent of the "Voting Power"
March 13, 2023 - Volume 17 Issue 48 Print Report
At the beginning of 1984, when Alumax, Inc. (AL)was owned 50 percent by Amax (A) and 50 percent by "Japanese interests" (J), AL undertook a restructur...
Gain On Sale Of Partnership Interests Classified As Ordinary Income
March 13, 2023 - Bulletin Print Report
TP engaged in the promotion and sale of interests in LLCs. The only asset held by the LLCs was land. Each of the LLCs engaged in transactions involving the donation of an easem...
Claims Court Lacked Jurisdiction To Consider A Tax Refund Suit
March 13, 2023 - Bulletin Print Report
A FICA tax is "imposed on the income of every individual." Wages under a non-qualified deferred compensation plan are subject to a special timing rule. The FICA tax o...
No Substantial Reduction In Activities Performed
March 10, 2023 - Volume 17 Issue 47 Print Report
X corporation, (X), owned two parcels of real property (parcel A and parcel B), each consisting of land and a building erected thereon. X has one class of stock outst...
Social Club's Property Is Exempt From Taxation
March 10, 2023 - Bulletin Print Report
The Italian-American Brotherhood Club, ("IAB"), is a tax-exempt non-profit corporation under section 501(c)(3) of the Code. It applied for property tax exemption. The...
The Shared Responsibility Payment Is "Measured By Income"
March 10, 2023 - Bulletin Print Report
Under the Bankruptcy Code, certain categories of claims have priority, including (1) excise taxes on transactions, and (ii) taxes on or measured by income. Debtors, ("Ds&#...
Appraised Value Not Used For Insolvency Purposes
March 10, 2023 - Bulletin Print Report
The question is whether the Taxpayers were, in fact, insolvent. The resolution of that dispute hinges on the fair market value (at the time of the debt cancelation) of certain...
AbbVie's "Inversion" With Shire plc Is Still Causing Problems
March 9, 2023 - Bulletin Print Report
One of the most notorious transactions of the "inversion era" was one that was not seen to completion, the inversion of AbbVie, Inc., in which Shire plcwas to s...
ENGH's Stock Will Be Redeemed
March 9, 2023 - Bulletin Print Report
Vistra Corporation, ("VST"), announced that it has executed a definitive agreement with Energy Harbor Corporation, ("ENGH"), pursuant to which ENGH will mer...
"Excessive" Payments Included in Gross Income
March 9, 2023 - Volume 17 Issue 46 Print Report
Sec. 1603 of the American Recovery and Reinvestment Act, (ARRA), appropriated funds for paymentsto applicants who placed specified energy property in service du...
Lessor's Reimbursed Costs Are Subject To Sales Tax
March 9, 2023 - Bulletin Print Report
Wisconsin, ("W"), imposes a five percent sales tax on the sale or lease of tangible personal property, ("TPP"), including aircraft, as well as on select&nbs...
Retailer Denied Refund Of Excess Sales Tax Reimbursements
March 9, 2023 - Bulletin Print Report
Appellant, ("APP"), a California corporation, operates a facility in South El Monte, California, where APP designs and manufactures fluid control and filtration produ...
Digital Assets Belong To The Bankruptcy Estate
March 8, 2023 - Bulletin Print Report
Who owns the cryptocurrency, ("CC"), assets deposited in Earn Accounts by Celsius's account holders before the July 15, 2022 petition date, (the "Petition Da...
"Disproportionate" Split-Off Recast
March 8, 2023 - Volume 17 Issue 45 Print Report
P owns all of the stock of S. For valid business reasons, P distributed all of the stock of S to one of its shareholders, Mr. A (A), in exchange for all of the shares of P owne...
PBM Services Are Functionally Related To Insurance
March 8, 2023 - Bulletin Print Report
During the 2012 to 2015 tax period at issue in this appeal, the insurance business exemption provided: "This chapter shall not apply to any person in respect to 'insur...
The "TUF" Was Not A Tax
March 8, 2023 - Bulletin Print Report
The City established a Transportation Utility Fee, ("TUF"). Property owners would be charged a monthly fee based on their "intensity of use" of the city str...
Sale Does Not Reduce Possessions Corporation Credit
March 7, 2023 - Volume 17 Issue 44 Print Report
Between 1976 and 1996, Congress encouraged U.S. corporations to invest in Puerto Rico (PR) by establishing a possessions corporation system of taxation. A special credit availa...
Daily Rate Worker Not Paid On A "Salary Basis"
March 7, 2023 - Bulletin Print Report
The Fair Labor Standards Act, (the "FLSA"), exempts certain categories of workers from its protections, including the overtime-pay guarantee. When an employee is a &q...
Car-Racing Expenses Were Not Deductible
March 7, 2023 - Bulletin Print Report
Petitioner, ("P"), became licensed to practice law in 1982. In 2003, he moved to Indiana and became licensed to practice law there. In 2010, he moved back to Colorado...
Non-Operating Interest Owners Lacked Standing
March 7, 2023 - Bulletin Print Report
Kinder Morgan, ("KM"), is a 44 percent fractional interest owner in the MU, (the "unit").The members of CO2 are non-operating working interest owners...
MO Will "Crystallize" The Capital Loss In Its JUUL Stake
March 6, 2023 - Bulletin Print Report
Altria Group, Inc., ("MO"), has, to say the least, experienced bitter disappointment from its once-heralded investment in JUUL Labs, Inc. ("JLI"). From all...
Sec. 1033 Election Must Be Made By Partnership
March 6, 2023 - Volume 17 Issue 43 Print Report
A and M each owned 50 percent of the stock of KBRC, which had acquired title to an office building in Newark, NJ in October 1944. On November 3, 1960, the corporation was disso...
Selling Costs Not Governed By The "Indopco" Regulations
March 6, 2023 - Bulletin Print Report
P is a domestic 'C' corporation. TP is a wholly owned domestic subsidiary of P. S is a domestic limited partnership. S is a closed private equity investment fund. On Da...
Notice Of Deficiency Was Timely Issued
March 6, 2023 - Bulletin Print Report
MRS is listed as the beneficial owner of XE. XE held a single asset, a UBS account ending in 0857. UBS records reflect that MRS is the beneficial owner of UBS account 0857. NPB...
"Odd Lot" Shareholders Do Not Receive Constructive Dividend
March 3, 2023 - Volume 17 Issue 42 Print Report
Approximately 1/3 of the shareholders of Company, (C), ownfewer than 100 shares. More than 1/2 of these shareholders own less than 26 shares. C incurs substanti...
Court Embraces Destination-Based Sourcing For Services
March 3, 2023 - Bulletin Print Report
The question requires our interpretation of a provision of the Tax Reform Code of 1971 allocating a corporation's sales of services between Pennsylvania and other states fo...
Debt For Money "Obtained By Fraud" Not Dischargeable
March 3, 2023 - Bulletin Print Report
In 2005, K and D, (the "Bs"), jointly purchased a house in San Francisco, California. Acting as business partners, the pair decided to remodel the house and sell it a...
Sec. 1042 Applied To Sale By Partnership
March 2, 2023 - Volume 17 Issue 41 Print Report
TP acquired 666,363 shares of C stock in 1995 as a result of a reorganization. C is the sponsor of an ESOP. On April 30, 1997, the ESOP purchased 309,478 shares of C from TP. A...
Local Sales Tax Precluded Revenue Sharing
March 2, 2023 - Bulletin Print Report
Before 2019, section 39-22-623(1)(a)(II)(A), C.R.S. 2022, provided that to receive shares of state income tax revenue from cigarette sales, local governments were "prohibi...
A Life Estate Is Not A "Fee Simple Estate"
March 2, 2023 - Bulletin Print Report
Petitioners, ("Ps"), filed an application to place their property in the State Property Tax Deferral Program, (the "Program"). Maine Revenue Services, (&quo...
Securing “Exchange” Treatment In A Brother-Sister Redemption
March 2, 2023 - Bulletin Print Report
A sale or exchange of stock gives...
ROCC Shareholders Will Be Taxed On BTE's Equity
March 1, 2023 - Bulletin Print Report
Baytex Energy Corporation, ("BTE"), a Canadian corporation, announced that it has entered into a definitive agreement to acquire Ranger Oil Corporation, ("ROCC&q...
Penalties For Non-Willful "FBAR" Violations Are Accrued Per Report
March 1, 2023 - Bulletin Print Report
The Bank Secrecy Act, ("BSA"), requires those who possess foreign accounts with an aggregate balance of more than $10,000 to file an annual report on a form known as...
Taxpayer Did Not Effect A "Deferred Exchange"
March 1, 2023 - Volume 17 Issue 40 Print Report
On April 21, 1995, while married to his first wife, Petitioner (P) purchased property A (PA) for $488,000. P and his first wife were later divorced, and on February 4...
Contractor Qualified For "Mill Machinery Exemption"
March 1, 2023 - Bulletin Print Report
F used approximately 80 percent of the hot mix asphalt, ("HMA") it produced at its facilities for various construction projects upon which it served as a contractor o...
Merger Recharacterized As A 'B' Reorganization
February 28, 2023 - Volume 17 Issue 39 Print Report
P and Y are each publicly owned corporations. P wanted to acquire "the business" of Y but could do so "with an effective result" only if the corpo...
Seller/Buyer Non-Compete Clauses Survive The FTC's Purge
February 28, 2023 - Bulletin Print Report
The Federal Trade Commission, (the "FTC"), in its never-ending quest to remove real and perceivedobstacles to competition, hasnow focused its attention on...
Widow Was A "Person Aggrieved"
February 28, 2023 - Bulletin Print Report
P and her husband, G, purchased the subject property as tenants-by-the-entirety in 1976. G died in December 2020, leaving P as the sole owner. In 2021, P received a notice of a...
Commissions Paid To DISC Are For Partner Services
February 28, 2023 - Bulletin Print Report
P is an architectural, urban planning, and engineering firm. It was a New York limited liability partnership. SD was formed on June 28, 2004. As an entity subject to subchapter...
I.R.S. Could Not Rely On Form 1099
February 27, 2023 - Bulletin Print Report
In 2017, the SSA reported on Form SSA-1099 that T was awarded disability benefits totaling a gross amount of $17,164. However, the SSA reduced this gross amount by a total of $...
Legal Use Of Property Controls For RPTT Purposes
February 27, 2023 - Bulletin Print Report
The Property is located in Staten Island. The Property consists of two buildings, each a semi-detached two-family house. The Property was used as two separate two-family dwelli...
Media Company Taxed As If It Were The Owner Of Signs
February 27, 2023 - Bulletin Print Report
On January 1, 2020, the Massachusetts Bay Transportation Authority, ("MBTA"), was the owner of 14 Signs located in Boston. The appellee assessed O on the Signs. O pai...
Gain From Sale Of Real Estate Not UBTI
February 27, 2023 - Volume 17 Issue 38 Print Report
Y is exempt from tax under Sec. 501(c)(3) of the Code. The M property (MP) is a 7.6 acre piece of land which has been developed by its various lessees. Y has been a p...
Aviation Fuel Not Consumed Solely Outside Of Illinois
February 24, 2023 - Bulletin Print Report
Petitioner, ("P"), contracted, purchased and arranged for the shipment and delivery of aviation fuel into Illinois from various suppliers and resold that fuel to Amer...
Court Allocates Burden Of Withholding Tax
February 24, 2023 - Volume 17 Issue 37 Print Report
PTI is a Taiwan-based manufacturer of semiconductors. PTI filed the underlying claim against T in December 2011, alleging claims breach of contract and fraud arising...
ATVs Eligible For Partial Sales Tax Exemption
February 24, 2023 - Bulletin Print Report
J is in the business of selling ATVs and UTVs. J collected and remitted sales tax up to $300 on the retail purchase price of each ATV and UTV because J considered them to be &q...
"Holds" Substantially All Of Its Properties
February 23, 2023 - Volume 17 Issue 36 Print Report
P is a manufacturing corporation organized under the laws of State A. T is also a manufacturing corporation organized under the laws of State A. P organizes S as a wholly owned...
TECK Proposes A Taxable Spin-Off
February 23, 2023 - Bulletin Print Report
Where a foreign corporation engages in what we would identify as a "spin-off," it is rarely the case that such spin-off is carried out in a manner that would render i...
Section 6621(d) Provides A Temporal Limitation For Interest Netting
February 23, 2023 - Bulletin Print Report
Under section 6621(d) of the Code, when "underpayments and overpayments by the same taxpayer offset each other, no interest is due." In Case 1, B's un...
Tax Treaty Is Relevant To Determination Of FBAR Filing Requirement
February 23, 2023 - Bulletin Print Report
The I.R.S. audited plaintiffs' tax filings for the 2011 through 2015 tax years. The led to FBAR penalties which were assessed only for tax years 2012 and 2013. Anyone who q...
The Willens Deal Survey February 2023
February 22, 2023 - The Deal Survey: February 2023 Print Report
Welcome to this month's summary of deals. Full reports on some of these transactions can be found via the link in the description, or by searching the company name in our database.
Taxpayer Must Capitalize "Indirect" Inventory Costs
February 22, 2023 - Volume 17 Issue 35 Print Report
TP is primarily in the business of purchasing grain from farmers and producers and reselling the grain to large grain terminals and processors. The CBOT provides an o...
iCloud Subscriptions Not Subject To Sales Tax
February 22, 2023 - Bulletin Print Report
Petitioner, ("P"), offered a remote personal electronic storage capacity service called "iCloud," ("IC"). IC allows a user to upload their persona...
Canadian Plan Of Arrangement Appears To Be Tax-Efficient
February 22, 2023 - Bulletin Print Report
B2Gold, ("B"), and Sabina Gold & Silver Corporation, ("S"), each a Canadian corporation, announced that the parties have entered into a definitive agree...
Salary Continuation Benefits Not Excluded From California Income
February 22, 2023 - Bulletin Print Report
W worked for AmgenUSA, Inc. during the 2014 tax year. W did not contribute to State Disability Insurance, ("SDI"), during the 2014 tax year because her employer...
Costs Attributable To Abandoned "Alternatives" Not Deductible
February 21, 2023 - Volume 17 Issue 34 Print Report
The taxpayer is primarily engaged in the business of Business A to consumers and small businesses. Prior to Year 3, the taxpayer also operated two businesses that provided Busi...
Insurance Companies Cannot File Combined Returns
February 21, 2023 - Bulletin Print Report
This case involves the calculation of tax under the Income Tax Act of 1967, MCL 206.1 et seq. Petitioners, ("Ps"), argue that under MCL206.61...
Installation Of Repair Parts Subject To Use Tax
February 21, 2023 - Bulletin Print Report
APP, a New York corporation, is a distributor, retailer, and repairer of medical devices. APP offered optional lump-sum maintenance contracts with the sale of its products and...
"MSGE Spinco" Will Be Capitalized With Two Classes Of Stock
February 17, 2023 - Bulletin Print Report
We now have the details (with the public filing of the Form 10) regarding the eagerly anticipated spin-off by Madison Square Garden Entertainment Corporation of a portion,...
"Renting" Or "Leasing" Connotes Possession And Use
February 17, 2023 - Bulletin Print Report
W is the owner of property located in Grand Rapids, Michigan, (the "property"). She purchased the property in 2006 and, since 2007, after converting the property from...
Parent Cancels Subsidiary's Indebtedness
February 17, 2023 - Volume 17 Issue 33 Print Report
P is the parent of an affiliated group of corporations that file their Federal income tax return on a consolidated basis. P's stock is publicly held. Sub 1 and Sub 2 are ea...
Abatement Of Interest On Deficiency Denied
February 17, 2023 - Bulletin Print Report
In 2014 and 2015, plaintiffs reached agreement with the I.R.S. regarding their federal tax liability, and the I.R.S. issued final federal determinations for the Years at Issue....
Walmart Subsidiary Achieves An Abatement Of Use Tax
February 17, 2023 - Bulletin Print Report
WS is a Delaware limited liability company. The Director assessed Missouri use tax against WS. WS was a subsidiary of ELP. ELP, in turn,was a subsidiary of Wal-Mart Store...
Shared Appreciation Mortgages
February 16, 2023 - Volume 17 Issue 32 Print Report
In Rev. Rul. 83-51, 1983-1 C.B. 48, in each of three situations, an individual purchased a home in 1981 and used it as his principal residence. In connection with the...
"LTIP" Payment Was Not A Signing Bonus
February 16, 2023 - Bulletin Print Report
In 2011, APP resided in New York and Florida. At this time, APP was employed by JPM. K offered APP the position of Chief Risk Officer in Oakland, California. The Employment Agr...
Section 751 Deems A Sale Of Inventory Items
February 16, 2023 - Bulletin Print Report
R was a non-resident alien individual during 2008 and 2009. IV manufactures and sells 5-hour Energy drinks. IV was treated as a partnership for federal income tax purposes. Bet...
Personal Goodwill Not Distributed By Corporation
February 15, 2023 - Volume 17 Issue 31 Print Report
On April 19, 1982, B organized BT. B owned 100 percent of BT. B did not have an employment contract with BT; and he never signed a noncompete agreement. None of BT's employ...
Will NEM's All-Stock Offer Be Taxable?
February 15, 2023 - Bulletin Print Report
Where the "merger consideration" in a proposed transaction consists exclusively of the acquirer's stock, it generally follows that the shareholders of the acquire...
Parking Easement Is A Present Interest In Real Estate
February 15, 2023 - Bulletin Print Report
The condominium consists of a nine-story, thirty-seven unit residential building with fifty-four parking spaces. M paid the developer of the condominium $33,000 for a "per...
Is FIS's Spin-Off Dependent On Satisfying The "Expansion Doctrine?"
February 14, 2023 - Bulletin Print Report
In 2019, Fidelity National Information Services, Inc. ("FIS"), and Worldpay, Inc., ("WP"), engaged in a business combination in which the former acquired al...
Kentucky Law Discriminates Against Interstate Commerce
February 14, 2023 - Bulletin Print Report
The PSC, (the "Commission"),regulates utilities in Kentucky, ("K"). K utilities are encouraged to buy cheaper coal. Compared to states with no severan...
Taxpayer Successfully Established New Domicile
February 14, 2023 - Volume 17 Issue 30 Print Report
The issue is whether TP was domiciled in Alabama in 2007 and thus subject to Alabama income tax in that year. TP was born and raised in Alabama. She moved to New York...
Full Refund Of EZ-ITC Permitted
February 14, 2023 - Bulletin Print Report
GlobalFoundries U.S., Inc.operates a manufacturing facility within a designated Empire Zone in Malta, New York. Petitioner, ("P"), seeks a refund of EZ-ITCs in...
Landlord Was Not A Charitable Organization
February 14, 2023 - Bulletin Print Report
U and W appeal from decisions of the Appellate Tax Board, (the "board"), finding that the taxpayers were not entitled to real estate tax exemptions under G.L. c. 59,...
No Refund Of "REET" Tax Permitted
February 13, 2023 - Volume 17 Issue 29 Print Report
Decedents, husband and wife, had two children, BA and BB, and owned property located in Washington (the Property). Decedent A died intestate in May 2009. Decedent B d...
Waste Hauler Not Eligible For The "Rolling Stock" Exemption
February 13, 2023 - Bulletin Print Report
Petitioner contends that it is entitled to an exemption from use tax because its trucks are "rolling stock used in interstate commerce and purchased, rented, or leased by...
Distributing Corporation Takes Steps To Eliminate An "ELA"
February 13, 2023 - Bulletin Print Report
Distributing is a publicly traded domestic corporation. Distributing is engaged in the active conduct of Business A, Business B, and Business C. Distributing owns all of the st...
3M Loses A Transfer Pricing Case
February 10, 2023 - Bulletin Print Report
3M Company owns, directly and indirectly, hundreds of subsidiaries, one of which is 3M Brazil. Many years ago, 3M Company granted 3M Brazil a non-exclusive license to use certa...
Will A "Constructive" Redemption Trigger Repurchase Excise Tax?
February 10, 2023 - Bulletin Print Report
Section 4501 of the Internal Revenue Code, enacted in the Inflation Reduction Act of 2022, as is by now well-known, imposes on each "covered corporation" an excise ta...
I.R.A. Did Not Purchase Property
February 10, 2023 - Volume 17 Issue 28 Print Report
In 2008, D rolled over funds from an I.R.A. at NM into a pre-existing self-directed I.R.A. he had with Charles Schwab (CS). On February 6, 2009, D signed a contract t...
The Right To Brownfield Credits Is A Receivable
February 10, 2023 - Bulletin Print Report
Taxpayer, ("TP"), will elect to be a real estate investment trust, ("REIT"), for the taxable year ending Date 1. TP owns "Site," which is in State...
A Club's Initiation Fees Are Fully Deductible
February 9, 2023 - Bulletin Print Report
R is a non-profit corporation that owns and operates a country club. R offers several levels of membership. New members must pay a one-time initiation fee with their applicatio...
ADP Leased Tangible Personal Property
February 9, 2023 - Bulletin Print Report
eTime, ("ET"), is an application software that allows clients' employees to login using the internet from their computers and enter their time and other employmen...
Educational Organization Entitled To Charitable Tax Exemption
February 9, 2023 - Bulletin Print Report
R's stated purpose was "to improve and stimulate agricultural and mechanical skill." R organizes the annual Rochester Fair, ("RF"). In 2020, R filed an...
Attribution Rules Apply To Sec. 302(b)(1)
February 9, 2023 - Volume 17 Issue 27 Print Report
Y is a corporation engaged in the business of publishing a daily newspaper. Prior to October 31, 1977, Y had outstanding400 shares of stock. Of that number, 250...
Contract Terms Determines Proper Time For Accrual
February 8, 2023 - Volume 17 Issue 26 Print Report
TP uses the accrual method of accounting. It manufactures consumer products and distributes these products to dealers, who in turn sell to the public. TP provides adv...
Qualified Appraisal Not Found
February 8, 2023 - Bulletin Print Report
During 2016 and 2017, petitioners,("Ps"), were the soleshareholders of I. I was an 'S' corporation. Ps executed an agreement with M. The engagemen...
Failure To Exhaust Administrative Remedies Led To Dismissal Of Suit
February 8, 2023 - Bulletin Print Report
On August 11, 2017, W filed her 2012 income tax return with the South Carolina Department of Revenue, (the"Department"), claiming a refund. On February 14, 2018...
Accuracy-Related Penalties Properly Imposed
February 8, 2023 - Bulletin Print Report
Petitioner hired DC to prepare his 2018 federal income tax return. DC did not have a preparer tax identification number ("PTIN"). The 2018 federal income tax return w...
Share Repurchases Not Evidence Of A Device
February 7, 2023 - Bulletin Print Report
D is a publicly traded State A corporation. We believe D is GE. D is engaged in Business A and Business B (including Business C, a division of Business B). At the time of...
Non-Profit Corporation Not An Instrumentality Of Government
February 7, 2023 - Bulletin Print Report
I is a private, non-profit corporation. I's members includes counties, county officers and employees, and affiliated associations. I is comprised of fifteen affiliate assoc...
Business License Tax Imposed On Gross Income Is Constitutional
February 7, 2023 - Volume 17 Issue 25 Print Report
This appeal involves a constitutional challenge to the Town of Hilton Head Island'sbusiness license tax ordinance (O), which requires businesses within the...
Spin-Off By A Controlled Foreign Corporation
February 7, 2023 - Bulletin Print Report
Parent, ("P"), is the parent of a worldwide group of affiliates, (the "P Worldwide Group"). The P Worldwide Group is engaged in multiple businesses, includi...
SPAC's Self-Tender Offer Appears Subject To Repurchase Tax
February 6, 2023 - Bulletin Print Report
dMY Technology Group VI, ("D"), a special purpose acquisition company, ("SPAC"), has located a target, "RWT,"which it is proposing to acquir...
PSA Is Proposing A Taxable Transaction
February 6, 2023 - Bulletin Print Report
Public Storage, Inc., ("PSA"), we learned this morning, is proposing to acquire "all of the outstanding shares and units of Life Storage, Inc., ("LSI")...
JNJ's "Talc" Affiliate Was Not In "Financial Distress"
February 6, 2023 - Bulletin Print Report
OC, a wholly owned subsidiary of Johnson & Johnson, ("JJ"), sold healthcare products. It also produced Baby Powder, a skincare product. Its base was talc. Concern...
Points On Refinancing Bridge Loan Deductible In Year Paid
February 6, 2023 - Volume 17 Issue 24 Print Report
In January 1981, the Hs financed the purchase of their principal residence by obtaining a $122,000 three year loan with a balloon payment secured by a mortgage on the...
Faculty Housing Qualifies For Tax Exemption
February 6, 2023 - Bulletin Print Report
R is a registered not-for-profit college preparatory school in Westchester County, New York.R is a day school that provides education for children from pre-kindergarten t...
Limited Scope Of "Next-Day" Rule
February 3, 2023 - Volume 17 Issue 23 Print Report
ACQ is the common parent of a consolidated group. On 11/30/xx, a subsidiary in the ACQ group merges with and into T and T's shareholders exchange their T stock for cash (th...
Amounts Paid To Acquire "PRVs" Must Be Capitalized
February 3, 2023 - Bulletin Print Report
A pharmaceutical company, ("PC"), must obtain FDA approval of a new drug application, ("NDA"), to market and sell any new drug in the United States. Congres...
Debtor Neither Legal Nor Equitable Owner Of Residential Property
February 3, 2023 - Bulletin Print Report
The property involved in this case is located in Paradise Valley, Arizona, (the "property"). In 2005, E purchased the property for $1,525,000...obtaining a $1,143,750...
Gain On Sale Of SBUX Stock Was Non-Business Income
February 3, 2023 - Bulletin Print Report
P is headquartered in Washington State. P and Starbucks, ("S") are unaffiliated, not a unitary business, and are in unrelated industries. In 1991 or before, P purchas...
Interest On GSE Obligations Not Exempt From Taxation
February 2, 2023 - Volume 17 Issue 22 Print Report
TP is a Washington-based bank. TP was audited by the Department of Revenue. Tax was applied to TP's gross income from interest on securities issued by Fannie Mae and Freddi...
Payment Of Spouse's Attorney's Fees Was Not "Alimony"
February 2, 2023 - Bulletin Print Report
Petitioner, ("P"), instituted divorce proceedings in California. A court order, ("order"), was issued. P was ordered to pay $9,146 in monthly alimony. Under...
Original Cost Is Reduced By "Rebates"
February 2, 2023 - Bulletin Print Report
A business receives a rebate for making purchases of certain fixed assets in bulk. The assets are purchased and the rebate is given after the fact as a refund. The rebate is pr...
GEO Group Is Not An "Instrumentality" Of Any Government
February 2, 2023 - Bulletin Print Report
The GEO Group, Inc., ("G"), owns and operates correctional and detention facilities. G operated such facilities in Texas under contracts with the State of Texas and t...
Gain From Sale Of Goodwill Classified As Business Income
February 1, 2023 - Bulletin Print Report
KC founded Cities Management, Inc., ("CMI"), in 1988 as a Minnesota corporation. CMI was primarily engaged in the business of managing community associations in Minne...
Nonrefundable Interest Must Be Ratably Allocated
February 1, 2023 - Volume 17 Issue 21 Print Report
In October 1977, petitioner (P) entered into negotiations to purchase an office building from TF. P paid the entire purchase price with a nonrecourse purchase money mortgage fo...
Equitable Tolling Of A Statute Of Limitations Not Available
February 1, 2023 - Bulletin Print Report
A served in the Navy from 1977 until 1981. Approximately 30 years later, the VA received A's application for disability compensation. The regional office granted A benefits...
Exception To ALJ Determination Not Timely Filed
February 1, 2023 - Bulletin Print Report
The determination of the Administrative Law Judge, ("ALJ"), was mailed by the United States Postal Service, ("USPS"), certified mail on March 10, 2022 to pe...
Skilled Nursing Provider Could Not Deduct Its Gross Receipts
January 31, 2023 - Bulletin Print Report
TP is a licensed home health agency. Specifically,TP is a licensed skilled nursing provider that offers services to the United States Department of Energy employees...wit...
No Refund Of "HI" Tax Permitted
January 31, 2023 - Volume 17 Issue 20 Print Report
Plaintiff (P) was employed as a pilot by United Airlines (U) from January 29, 1979 until October 1, 2004. This case concerns the FICA tax treatment of P's retirement benefi...
MAGT To Be Acquired In A "Disproportionate" Acquisition
January 31, 2023 - Bulletin Print Report
Magnet Forensics, Inc., ("MAGT"), a Canadian corporation, announced it has entered into a definitive arrangement agreement with "PU," a newly-created corpor...
Notice 2007-83 Has Been "Set Aside"
January 31, 2023 - Bulletin Print Report
In 2004, Congress added section 6707A to the Internal Revenue Service'sarsenal of tools for identifying tax avoidance schemes. Section 6707A permits the I.R.S. to pen...
Isolated Redemption Does Not Trigger Deemed Distribution
January 30, 2023 - Volume 17 Issue 19 Print Report
C is a privately held holding company with all of its stock (consisting of Class A voting stock and Class B nonvoting stock) held by or for the benefit of members of...
Software Vendor Denied Approval Of Claim For Refund
January 30, 2023 - Bulletin Print Report
Petitioner, ("P"), filed an Application For Refund. The Department issued a Notice of Decision of Refund Denial. In 2007, Oracle, ("O"), first sold a perpet...
The "Functional" Approach Is Used In Bankruptcy Cases
January 30, 2023 - Bulletin Print Report
The Affordable Care Act, (the "ACA"), included a mandate (sincerepealed) requiring most individuals to maintain health insurance. Individuals who did not mainta...
St. Louis Area Teleworkers Not Subject To Local Tax
January 30, 2023 - Bulletin Print Report
The City adopted the Earnings Tax in 1959. Since then, the City has imposed a one percent tax on the earnings of non-residents of the City "for work done or services perfo...
Civil Fraud Penalty Timely Approved By Revenue Agent's Supervisor
January 27, 2023 - Bulletin Print Report
M was indicted on two counts of tax evasion. He pled guilty to the 2000 count and the government dismissed the 2001 count. The I.R.S. sent M a notice of deficiency asserting in...
Points Paid To Refinance Mortgage Addressed
January 27, 2023 - Volume 17 Issue 18 Print Report
In 1981, A obtained a 16-percent mortgage loan (old mortgage loan) expressly for the purchase of a principal residence. On August 20, 1986, A refinanced the old mortg...
Discharged Non-Recourse Debt Is Included In The "Amount Realized"
January 27, 2023 - Bulletin Print Report
California encourages adult citizens with developmental disabilities to live in group homes. They are operated by social-service entrepreneurs like the Ps. Group homes are much...
NOLs Had To Be Carried Back
January 27, 2023 - Bulletin Print Report
TP and its affiliates filed consolidated federal and separate Virginia corporate income tax returns for the years at issue. TP reported a separate net operating loss, ("NO...
Can SPGI's Stock Repurchase Constitute A Partial Liquidation?
January 26, 2023 - Bulletin Print Report
S&P Global, ("SPGI") recently announced that it has entered into an agreement to sell its Engineering Solutions business to investment funds managed by KKR...for...
ACI Finally Pays Its Controversial Special Dividend
January 26, 2023 - Bulletin Print Report
Albertsons Companies, Inc., ("ACI"), in connection with its proposed business combination with The Kroger Company., ("KR"), declared a special dividend in O...
Adding Accrued Interest To Loan Balance
January 26, 2023 - Volume 17 Issue 17 Print Report
A state permits lending institutions to make "reverse" mortgage loans to individuals who own their own homes which they occupy as their principal residence. A reverse...
Diabetes Did Not Render A Taxpayer "Disabled"
January 26, 2023 - Bulletin Print Report
In 2017, L worked at LCEwhere he had been employed for approximately four years. L lost his job in 2017. To make ends meet, he obtained a distribution from a section 401(...
The Willens Deal Survey January 2023
January 25, 2023 - The Deal Survey: January 2023 Print Report
Welcome to this month's summary of deals. Full reports on some of these transactions can be found via the link in the description, or by searching the company name in our database.
"Payment" Of Interest Is Required To Secure A Deduction
January 25, 2023 - Volume 17 Issue 16 Print Report
The Battelsteins were land developers. In 1971, G, a financial institution, agreed to lend the Battelsteins more than $3 million to cover the purchase of a piece of p...
Determining A Service Member's Domicile
January 25, 2023 - Bulletin Print Report
The Alabama Department of Revenue determined that TPs' domicile during 2016 was Alabama. TPs moved to Alabama in 2014, had purchased a home, and had claimed a homestead exe...
Brokers Receive Some Relief From "PTP" Withholding Requirements
January 25, 2023 - Bulletin Print Report
Sections 864(c)(8) and 1446(f) were added to the Internal Revenue Code by the TCJA. The former provides that gain or loss of a foreign person on the sale or exchange of an inte...
Ohio Will Allow Vendors Bad Debt Deductions For Uncollectible Accounts
January 25, 2023 - Bulletin Print Report
Many retailers offer their customers store-branded private label credit cards that are issued to the customers by a financial institution. Under the typical agreement between t...
Fees Paid With Negotiable Promissory Note
January 24, 2023 - Volume 17 Issue 15 Print Report
An individual issued and delivered a negotiable promissory note to a lawyer who accepted the note in payment for legal services rendered to the individual as operator of a smal...
Cryptocurrency Donations Require A Qualified Appraisal
January 24, 2023 - Bulletin Print Report
TPA purchased units of Cryptocurrency B, ("CB"), for personal investment purposes. TPA later transferred all of herunits to CH, a charitable organization descri...
Identification Of The "Retailer" Is A Discretionary Determination
January 24, 2023 - Bulletin Print Report
Amazon fulfills orders for products sold by third-party merchants through a program it calls "Fulfillment by Amazon," ("FBA"). Amazon provides advertising,...
QSub Gain Is Realized By Parent
January 24, 2023 - Bulletin Print Report
P is an Iowa chartered bank that is 100 percent owned by A. A elected to be treated as an 'S' corporation. A made the election for P to be taxed as a qualified subchapt...
Spin-Off Motivated By Desire To Raise Capital
January 23, 2023 - Volume 17 Issue 14 Print Report
D is the common parent of an affiliated group of corporations that files a consolidated federal income tax return. D owns all of the stock of C, a State A corporation, and all...
Prematurely Filed Lawsuit Was Dismissed
January 23, 2023 - Bulletin Print Report
CB became a permanent resident of the U.S. in 2006. CB's father opened an account in her name at the Taiwan Cooperative Bank, ("TCB"). She had a financial interes...
Housing Accommodation Includible In Gross Income
January 23, 2023 - Bulletin Print Report
S received an offer of employment from R to work as an engineer at the Joint Defense Facility at Pine Gap, Alice Springs, Northern Territory, Australia, ("Pine Gap")....
Retailer Not A Guarantor Of Uncollectible Accounts
January 23, 2023 - Bulletin Print Report
TP owned and operated more than a dozen retail department stores in Washington. TP offers its customers a store-branded private label credit card that was issued to its custome...
When Is A Cryptocurrency Loss Sustained?
January 20, 2023 - Bulletin Print Report
TPA purchased units of Cryptocurrency B, ("CB"), in 2022 at $1 per unit for personal investment purposes on a cryptocurrency exchange. The per unit value decreased si...
What We Can Learn From 3M's Reverse Morris Trust Ruling
January 20, 2023 - Bulletin Print Report
LTR 202249011, May 10, 2022, is the ruling letter issued by the I.R.S. to 3M Company, ("MMM"),in connection with its "Reverse Morris Trust," ("RM...
NY Legislators Propose Surtax On Capital Gains And Mark-To-Market Levy
January 20, 2023 - Bulletin Print Report
Although Governor Hochulseems intent on not raising taxes this year, her colleagues in the New York State Legislature are not expressing such reticence. The recent setbac...
Indirect Ownership Counts For Purposes Of Sec. 1504(d)
January 20, 2023 - Volume 17 Issue 13 Print Report
P has a 52-53 week taxable year ending on the last Saturday in December. Part of P's business in Country is conducted through a holding company, SM1, which was organized un...
Vacant Land Not Eligible For Exemption
January 20, 2023 - Bulletin Print Report
The subject property is 0.295 acres of vacant land with no improvements thereon... The subject property was deeded to Rockford Baptist Church, Inc. on January 21, 2004. The sub...
Coin-Operated Laundry Facilities Create UBTI
January 19, 2023 - Volume 17 Issue 12 Print Report
TP is a private operating foundation. Grantor owns Apartment complex (AC). Grantor intends to transfer ownership of AC to TP as a donation. The AC annually generates several mi...
Education Expenditures Could Not Be Substantiated
January 19, 2023 - Bulletin Print Report
Petitioner, ("P"), has a daughter, AM, who was enrolled in post-secondary education at University College, London, ("UCL"), during the year in issue. UCL is...
Reagents Not Exempt From Sales Tax
January 19, 2023 - Bulletin Print Report
Taxpayer, ("TP"), is a provider of diagnostic testing and analytical services with locations in Virginia and throughout the United States. The auditor denied TP refun...
Anatomy Of An "Upstream" Exchange
January 19, 2023 - Bulletin Print Report
There areobvious advantages, from a tax standpoint, to "replacing" equity with indebtedness, not the least of which is the opportunity to convert non-deductible...
Disallowed Interest Reduces E&P When It Is Incurred
January 18, 2023 - Volume 17 Issue 11 Print Report
A holds a paid-up life insurance contract on his own life. X is a calendar-year C corporation unrelated to A. On the first day of Year 1, X purchases A's life ins...
Ranching Activity Entered Into For Profit
January 18, 2023 - Bulletin Print Report
Petitioners, ("Ps"), sought to diversify their business interests by acquiring a cattle ranch. Ps purchased the property for $2 million. Ps hired a foreman, RP. Withi...
Residence Is Not Synonymous With Employment
January 18, 2023 - Bulletin Print Report
On March 17, 2021, the Department assessed TP for personal income tax, penalty, and interest for the 2018 tax year. TP filed a timely written protest to the assessment. Prior t...
Lump-Sum Payment Found To Be Alimony
January 18, 2023 - Bulletin Print Report
APP and FH married in 1991 and divorced in 2002. APP and FH executed a Marital Settlement Agreement, ("MSA"), which was incorporated into a Judgment of Dissolution. S...
OTA's Function Is To Determine The Amount Of Tax Liability
January 17, 2023 - Bulletin Print Report
Appellant, ("APP"),timely filed her 2015 California tax return, reporting tax due. APP remitted timely payment of tax due when she filed the return. On March 9,...
Shareholders' Agreement Does Not Constitute "Voting Securities"
January 17, 2023 - Volume 17 Issue 10 Print Report
The taxpayer, a corporation licensed by the Small Business Administration to operate as a small business investment company, registered with the S.E.C. as a closed-en...
"COD" Income Requires A Bona Fide Debt
January 17, 2023 - Bulletin Print Report
F owned RSB. H moved from New Jersey to California around June 2011, when he began working for RSB. F purchased a residential house located in California for APPs, (the "C...
Taxpayer Must Establish Undue Hardship
January 17, 2023 - Bulletin Print Report
The Department of Revenue, (the "Department"),assessed TPs for deficient taxes...for tax year 2013. TPs appealed to the Magistrate Division of the Tax Court. Wh...
No Resident Tax Credit For Out-Of-State Franchise Taxes
January 13, 2023 - Bulletin Print Report
Taxpayers filed a Virginia resident income tax return for 2018 claiming a credit for Unincorporated Business Franchise Tax, ("UBFT"), paid to the District of Columbia...
Gain From Sale Of Land Is Ordinary Income
January 13, 2023 - Volume 17 Issue 9 Print Report
Plaintiff (A)purchased the Property (undeveloped real estate in EastPalo Alto,California) in 1987. He purchased the land for purposes of developing...
Non-Uniform Tax Assessment Was Unconstitutional
January 13, 2023 - Bulletin Print Report
The Company must pay M&T tax to the County for the machinery and tools it uses in its factory. On May 11, 2017, the Board increased the M&T tax rate to $4.24 per $100 o...
Determining An Estate Beneficiary's Constructive Ownership
January 12, 2023 - Volume 17 Issue 8 Print Report
Advice has been requested whether, for purposes of Sec. 318(a) of the Internal RevenueCode, in determining the applicability of Sec. 302(b)(2) to a redemption o...
PSX To "Roll Up" DCP
January 12, 2023 - Bulletin Print Report
Phillips 66, ("PSX"), and its "captive" MLP, DCP Midstream, L.P., ("DCP"), announced that they have entered into a definitive agreement pursuant t...
Suspended Corporation Cannot Initiate Lawsuit Regarding Its Tax Status
January 12, 2023 - Bulletin Print Report
The I.R.S. issued petitioner, ("P"), a final adverse determination letter revoking its tax-exempt status retroactively to 2016. P petitioned this court seeking a decl...
"Unearned" APTC Creates A Tax Liability
January 11, 2023 - Bulletin Print Report
Since April 2015, petitioner, ("P"), has been unemployed. Consequently, she made early withdrawals from a retirement or pension plan. P was enrolled in health insuran...
Sec. 354(a) Takes Precedence Over Sec. 453B(a)
January 11, 2023 - Volume 17 Issue 7 Print Report
T is a trust that is subjectto the provisions of Secs. 671-677 and A is the grantor of T. T holds notes (Old Notes) thatare payable by X, a corporation. T...
The "California Method" Does Not Tax Extraterritorial Income
January 11, 2023 - Bulletin Print Report
APP filed a 2016 California Non-Resident Return reporting $82,070 in Federal AGI and $75,581 of California AGI. The Franchise Tax Board, ("FTB"), received information...
"Relo" Company Is The Purchaser Of An Employee's Home
January 10, 2023 - Volume 17 Issue 6 Print Report
X, a limited partnership, is in the business of providing relocation services to employers (E). X and E will enter into an agreement pursuant to which X, upon notific...
Sweepstakes Was An Amusement Service
January 10, 2023 - Bulletin Print Report
The Texas sales tax is imposed on the sale of amusement services... Amusement services includes "the provision of amusement, entertainment, or recreation." For purpos...
Lease Agreements Found To Be Joint Ventures
January 10, 2023 - Bulletin Print Report
TP entered into contracts with convenience stores, (the "proprietors"), concerning coin-operated amusement machines, (the "machines"). The contracts reflect...
Payment Of Expenses Not Incompatible With 'B' Or 'C'
January 9, 2023 - Volume 17 Issue 5 Print Report
Pursuant to a plan of reorganization, X proposes to transfer substantially all of its properties to Y in exchange for shares of voting stock of Y followed by the dist...
Farm Machinery Not Primarily Used For Exempt Purposes
January 9, 2023 - Bulletin Print Report
P is a veterinarian about 75 percent of whose practice involves treating large animals. P tows a trailer marked "Small Animal Mobile Clinic" behind his pickup truck....
No Relief Granted For Late Filing Of A Refund Claim
January 9, 2023 - Bulletin Print Report
FICA tax is imposed on the income of every individual... Wages under a non-qualified deferred compensation plan are subject to a special timing rule. The FICA tax on wages defe...
"Book-Out" Transactions Found To Be Taxable
January 9, 2023 - Bulletin Print Report
Cook County (Illinois) taxes the sale of gasoline, diesel fuel, biodiesel fuel, and GDiesel at a retail level pursuant to the Fuel Tax Ordinance. When a distributor sells fuel...
'B' Reorganization Gives Way To Qualified Stock Purchase
January 6, 2023 - Volume 17 Issue 4 Print Report
Acquiring Corporation, (ACQ), a State A corporation, is the parent corporation of a consolidated group. Target (T) a Country B corporation, is the parent company of a...
Municipality's Tax On Remote Workers Not Unconstitutional
January 6, 2023 - Bulletin Print Report
This case stems from a provision in 2020 H.B. 197--section 29--regarding municipal taxation that the General Assembly enacted in March 2020 in response to Governor DeWine's...
Transfer Of Reversionary Interests Is Taxable
January 6, 2023 - Bulletin Print Report
The District of Columbia generally taxes the sale of real estate as a percentage of the total sale, divided equally between the buyer and seller. It does so through two differe...
Remedy For Uniformity Clause Violation Is A Refund Of Previous Taxes
January 6, 2023 - Bulletin Print Report
TP is a Delaware corporation. TP carried into the 2014 Tax Year net losses...apportioned to Pennsylvania, ("P"), in the amount of $791,244,978. For the 2014 Tax Year,...
A Financial Transaction Is Not An Unexpected Event
January 5, 2023 - Bulletin Print Report
APP held stock in CelgeneCorporation. On November 19, 2019, Bristol-Myers Squibb Company purchased Celgene Corporation in a "merger acquisition, which resulted in AP...
SPAC's Stock Issuance Should Reduce Repurchase Excise Tax Base
January 5, 2023 - Bulletin Print Report
It turns out that SPACswill not only benefit from the I.R.S.'s surprising decision to exclude liquidating distributions from the definition of a "repurchase,&quo...
Tender Offer/Merger Stepped Together To Find A Reorganization
January 5, 2023 - Volume 17 Issue 3 Print Report
P and T are widely-held, manufacturing corporations organized under the laws of State A. P seeks to acquire all of the outstanding stock of T. P initiates a tender of...
"USAC" Is Not A Federal Government Instrumentality
January 5, 2023 - Bulletin Print Report
A is a telecommunications company that provides wireless telecommunications services to consumers...including Lifeline, ("L"), services. L is a federal program design...
Merchants' Claims Were Barred By The Tax Injunction Act
January 5, 2023 - Bulletin Print Report
G is a trade association for e-commerce merchants. Members sell products through Amazon's "FBA" program. Goods are ostensibly sold by the merchant, but "fulf...
Assignable Note Includible In Gross Income
January 4, 2023 - Volume 17 Issue 2 Print Report
On January 14, 1977, the Covenantor (the CO) and the Company (the C) executed a non-competition agreement. Under this contract, the CO agreed not to compete with the...
Law Firm's Deferral Scheme Thwarted
January 4, 2023 - Bulletin Print Report
TP is a law firm organized as a partnership. TP is a cash method taxpayer. TP represents a client, ("C"), in connection with C's legal claim against a defendant,...
"Cookies" Did Not Translate Into In-State Physical Presence
January 4, 2023 - Bulletin Print Report
U was an online retailer that sold after-market automobile parts and accessories; it was headquartered in California. U did not own or lease any offices, facilities, inventory,...
Fracking Services Subject To Sales Tax
January 4, 2023 - Bulletin Print Report
D extracts crude oil on parcels that it leases from the State of Wyoming. D hired contractors to perform fracking services. Those contractors charged D sales tax on some of the...
"COBE" Not Required In A Recapitalization
January 3, 2023 - Volume 17 Issue 1 Print Report
Sec. 368(a)(1)(E) of the Code provides that a recapitalization is a reorganization. A recapitalization has been defined, succinctly, as "a reshuffling o...
Split-Off Gains Will Be Excluded From "AFSI"
January 3, 2023 - Bulletin Print Report
The I.R.S.'s guidance on the corporate alternative minimum tax, (the "CAMT"), enacted in the Inflation Reduction Act of 2022,adopts the same governing...
Tax Court Petition Was Not Timely Filed
January 3, 2023 - Bulletin Print Report
A appeals the Tax Court's dismissal of his petition to challenge a notice of deficiency...for lack of jurisdiction. The I.R.S. contends the Tax Court lacked jurisdiction ov...
"Full Retail Value" Does Not Include Sales Tax
January 3, 2023 - Bulletin Print Report
On February 11, 2020, defendant shoplifted a Play Station 4 video game console from a Kohl's department store. The price of the Play Station 4 was $299.99, exclusive of sal...
Sec. 311(a) Loss Reduced Basis And "AAA"
December 30, 2022 - Volume 16 Issue 248 Print Report
The taxpayer, A, was formed as a C corporation on Date 1. It elected 'S' status on Date 2. On Date 3, A transferred corporate-owned real estate to B, a shareholder of A...
A Casino's "PC Points" Are Akin To Airline Miles
December 30, 2022 - Bulletin Print Report
DR operates Mohegan Sun, a casino and resort in Pennsylvania. DR contends it was entitled to deductions from its gross revenue for "PC Points" it distributed to playe...
Wisconsin Resident Had Minnesota-Source Income
December 30, 2022 - Bulletin Print Report
W was a licensed physician and surgeon by the Minnesota Board of Medical Practice specializing in anesthesiology. In 2019, he was employed as a physician and received $551,214....
A Signed "Letter 950" Is Written Supervisory Approval
December 30, 2022 - Bulletin Print Report
Respondent determined deficiencies for the years at issue, as well as an addition to tax under section 6651(a)(1) and an accuracy-related penalty under section 6662(a) for each...
CVRs Should Be Excluded From The "Amount Realized"
December 29, 2022 - Bulletin Print Report
Where the parties to an acquisition are unable to agree on the value of the target (or, less frequently, on the value of the acquirer) for purposes of fixing the merger conside...
Post-Death Stock Dividends
December 29, 2022 - Volume 16 Issue 247 Print Report
This is an estate tax case in which the executor elected to value the gross estate of the decedent by valuing the property included therein on the date of decedent's death...
EITC Refunds Not Exempt From Creditor Claims
December 29, 2022 - Bulletin Print Report
On her bankruptcy schedules, M claimed exemptions in 100 percent of the tax refunds, ("Claim of Exemptions"). The Trustee objects to $4,361.00 of M's EITC tax ref...
Reliance On Tax Professional Is "Good Cause"
December 29, 2022 - Bulletin Print Report
On June 9, 2021, the Department of Revenue, (the "Department"), issued petitioners, ("Ps"), a Proposed Assessment. Under the Revenue Procedures Act, Ps had...
I.R.S. Issues Guidance On The "Repurchase Excise Tax"
December 28, 2022 - Bulletin Print Report
Section 4501 of the Internal Revenue Code, added by the Inflation Reduction Act, imposes on eac...
Refund Not Partnership "Item" Or "Property"
December 28, 2022 - Volume 16 Issue 246 Print Report
TP is an individual investor in X, a limited liability company (LLC) that is treated as a partnership. TP has a zero basis in his partnership interest. In Year 1, the LLC purch...
"At-Risk" Rules Deny Pass-Through Losses
December 28, 2022 - Bulletin Print Report
DC was classified as a partnership for U.S. federal and California income tax purposes. SS was a disregarded entity. SS was a member of DC. APP was the sole member of SS. SPM i...
Electricity And Fuel Not Subject To Sales Tax
December 28, 2022 - Bulletin Print Report
TP is a subdivision homeowners association registered in the State of Florida as a non-profit corporation that services a community of 200 residences. Each member of the associ...
No Waiver Of Attribution For A Director
December 27, 2022 - Volume 16 Issue 245 Print Report
A redemption agreement between the corporation and the individual shareholder provides that a total of $350x will be paid to such shareholder for all ofhis stoc...
Depreciation Found To Be "Non-Taxable Income"
December 27, 2022 - Bulletin Print Report
PO filed an application with County, ("C"), for so-called "circuit breaker" tax relief for the 2020 tax year. C denied the application. PO was domiciled in...
Distribution From Estate Not "Retirement Income"
December 27, 2022 - Bulletin Print Report
In 2018, APP was the beneficiary of a distribution of taxable retirement benefits that were received by the estate of APP's brother. This distribution was included in APP&#...
Aluminum Producer Purchased Tax-Exempt Supplies
December 27, 2022 - Bulletin Print Report
C manufactures aluminum. As part of that business, C purchased anode stubs, Inductotherm lining, thermocouples and tube assemblies, and welding wire and industrial gases from K...
When Must A Liquidating Corporation File Its Tax Return?
December 23, 2022 - Volume 16 Issue 244 Print Report
The question relates to the time for filing a Federal income tax return and paying the tax due thereon by a corporation that has satisfied or made provision for all o...
State Of Delivery May Impose Sales Tax
December 23, 2022 - Bulletin Print Report
Petitioner, ("P"), is an 'S' corporation headquartered in Wisconsin. P is engaged in the production and sale of printed materials...for distribution across th...
Instruments And Equipment Are Subject To Sales Tax
December 23, 2022 - Bulletin Print Report
Are Taxpayer's sales of XXXX(the "Product"), subject to Florida Sales and Use Tax when sold at retail in Florida? The answer is yes... Taxpayer sells medica...
The Minnesota Estate Tax Is Constitutional
December 23, 2022 - Bulletin Print Report
J died on November 8, 2018, as a domiciliary of Minnesota, ("M"). The sole asset of her estate is the Trust. J established the Trust upon the death of her husband in...
Volkswagen Special Distribution
December 22, 2022 - Bulletin Print Report
Volkswagen AG's shareholders overwhelmingly approved a special distribution in the amount of EUR 19.06 "per ordinary and preferred share entitled to distribution."...
The Willens Deal Survey December 2022
December 22, 2022 - The Deal Survey: December 2022 Print Report
Welcome to this month's summary of deals. Full reports on some of these transactions can be found via the link in the description, or by searching the company name in our database.
Retention Of Driver's License Not Determinative Of Domicile
December 22, 2022 - Bulletin Print Report
Taxpayer, ("TP"), was born in Alabama in 1988 and lived there until 2015. He moved to Jacksonville, Florida, because his child had been born there. He leased an apart...
WFC Should Score Tax Deductions For "Remediation" Payments
December 22, 2022 - Bulletin Print Report
On December 20, 2022, Wells Fargo & Company, ("WFC") issued a press release announcing that it hasreached a settlement with the Consumer Financial Protectio...
Deemed Sale Gain Not Apportionable Business Income
December 22, 2022 - Volume 16 Issue 243 Print Report
MW was a Delaware corporation with its principal place of business located in California. MW was a wholly-owned subsidiary of MP. MW was in the business of processing...
CR Is Embarking On A "Reverse Spin-Off"
December 21, 2022 - Bulletin Print Report
Crane Holdings Co., ("CR"), is proceeding towards an April 2023separation of its two principalbusinesses, its "Industrial Technology" business a...
Partnership Was The True Seller Of Real Property
December 21, 2022 - Bulletin Print Report
AWG, a limited liability company taxed as apartnership, operated a winery in Paso Robles, California.AWG had two members, YHIand WGP. WGP had four partners, K...
Certificates Treated As Equity Interests
December 21, 2022 - Volume 16 Issue 242 Print Report
Y is a farmer's cooperative association which markets and processes agricultural productson behalf ofits members. Its member-patrons possess membershi...
College Student Did Not Change Domicile
December 21, 2022 - Bulletin Print Report
Two classes of residents, a domiciliary resident and an actual resident, are set forth in section 58.1-302. The domiciliary residence of a person means the permanent place of r...
Delayed Payment Classified As "Boot"
December 20, 2022 - Volume 16 Issue 241 Print Report
In 1951, D received a cash payment of approximately $12,000 from CBSI. The question is whether that payment was taxable as a long-term capital gain or was ordinary in...
Heavy Equipment Is Not "Motor Vehicles"
December 20, 2022 - Bulletin Print Report
Heavy equipment sales and rentals are generally subject to sales tax under Tax Rule GR-15.2. The rentals at issue involved excavators, boom lifts, and buggies. Exemption is lim...
Nebraskans Failed To Prove A Change In Domicile
December 20, 2022 - Bulletin Print Report
The As filed Nebraska, ("N"), income tax returns claiming status as non-residents of N. The Department sent the As notices of proposed deficiencies. Each of the As ow...
New Orleans Gallonage Tax Not Properly Imposed
December 20, 2022 - Bulletin Print Report
TP is a wholesale dealer of High Alcoholic Content Beverages, ("HACB"). TP has obtained licenses and permits from the State and from Jefferson Parish, ("JP"...
Reacquisition Of Improvements To Realty Governed By Sec. 1038(a)
December 19, 2022 - Volume 16 Issue 240 Print Report
In September 1976, PMC, which was wholly owned by petitioners, opened escrow on 11.3 acres of land in California. In May 1977, petitioners assumed PMC's position...
Bundled Transaction Found Subject To California Sales Tax
December 19, 2022 - Bulletin Print Report
APP operates an automated teller machine, ("ATM"), network in this state. APP enters into Franchise Agreements with franchisees. An ACFNbusiness consists of the...
Artist Was Not An "Occasional Seller" Of Property
December 19, 2022 - Bulletin Print Report
For tax year 2018, DC filed Schedule C forms as part of his federal personal income tax returns. The Schedule C reported business income. The taxpayer did not file gross receip...
Charter Communications Was Not A "Qualified New York Manufacturer"
December 19, 2022 - Bulletin Print Report
On their combined returns, petitioners calculated their franchise tax on the entire net income base using the reduced tax rate as a "qualified emerging technology company....
MSGE Revises Its Spin-Off Plan
December 16, 2022 - Bulletin Print Report
Madison Square Garden Entertainment Corporation, ("MSGE"), has tweaked the spin-off plan it announced in October, although the manner in which the spin-off will be ef...
Retainers Are Prosthetic Devices
December 16, 2022 - Bulletin Print Report
Taxpayer, ("TP"), operates an orthodontic practice in Indiana. Post-treatment retainers are provided for every comprehensiveorthodontic patient to maintain stab...
Redemption Cannot Pass Muster Under Sec. 302(b)
December 16, 2022 - Volume 16 Issue 239 Print Report
SHA owned, directly, 50 percent of the stock of Y. As a result of family attribution, SHA is considered to own approximately 94 percent of the stock in X. It is plann...
Fees For "Idle Time" Not Subject To Sales Tax
December 16, 2022 - Bulletin Print Report
Sales and use tax is imposed on the sales at retail...in this state. Tangible personal property is personal property which may be seen, weighed, measured, felt or touched, or i...
When Are Bonds Considered "Substantially Identical?"
December 15, 2022 - Bulletin Print Report
On September 30, 2022, the New York Times reported that "this year is the most devastating period for bonds since at least 1926...and that bond investors are experiencing...
Consultant Secures A Business Bad Debt Deduction
December 15, 2022 - Volume 16 Issue 238 Print Report
In Date a, A contacted TP with a business proposition regarding the acquisition and management of Corp. B (B), a manufacturer of C. A formed N for the purpose of acqu...
Annuities Are Included In "Disposable" Income
December 15, 2022 - Bulletin Print Report
For 2019, Owner had in place a senior citizen property tax exemption for the subject property at income threshold one. The Assessor determined that Owner's 2020 income requ...
A Temporary Work Assignment Does Not Defeat NY Residency
December 15, 2022 - Bulletin Print Report
The issue is whether petitioner, who admittedly spent more than 183 days within New York City, ("NYC"), in 2017, maintained a permanent place of abode that resulted i...
Dissenters' Stock Is No Longer Outstanding
December 14, 2022 - Volume 16 Issue 237 Print Report
C is aState W corporation that performs services for both the government and the private sector. At present, 68,300 shares of C common stock are held by current...
New California Resident Scores A "Free" Basis Step-Up
December 14, 2022 - Bulletin Print Report
An Australian software magnate who had become, to his consternation, a California resident was awarded a lucrative consolation prize, what amounted to a "cost-free,"...
Taxpayer Qualified For The "M&E" Exemption
December 14, 2022 - Bulletin Print Report
TP manufactures custom component parts for industrial equipment and provides equipment repair and refurbishing services. Repairs may require replacement components. TP may fabr...
Certain Medical Examinations Are Subject To Sales Tax
December 14, 2022 - Bulletin Print Report
Worker's compensation is a state-regulated insurance program that pays medical bills and replaces some lost wages for employees who are injured at work or who have work-rel...
New Jersey To Take Action Against Its Neighboring States
December 13, 2022 - Bulletin Print Report
The New Jersey Legislature appears certain to enact, in early 2023, a tax bill that will go a long way to ending, or at least mitigating,its "second-class" stat...
"Right-Of-Use" Assets Are Intangible In Nature
December 13, 2022 - Bulletin Print Report
The Financial Accounting Standards Board, ("FASB"), has updated its accounting standards for leases. FASB requires privately-held companies...to follow Accounting Sta...
Taxpayer Denied Warehouse Tax Incentive
December 13, 2022 - Bulletin Print Report
TP is a manufacturer, wholesaler, and retailer of medical supplies. TP submitted Warehouse Tax Incentive applications...requesting remittance of sales and use tax paid for cost...
Seller Recognizes Gain On Repossession Of Real Property
December 13, 2022 - Volume 16 Issue 236 Print Report
Petitioner (P) purchased his personal residence and the surrounding 80 acres of land ("property") in 1966 for $25,000. On July 11, 2006, P agreed to sell th...
Twitter, Inc. Has Gone Private
December 12, 2022 - Bulletin Print Report
On October 27, 2022, a corporation, "Merger Sub," a wholly-owned subsidiary of "Parent," each such corporation recently created by Mr. Elon R. Musk, ("...
Status Of Property Is Determined On "Tax Day"
December 12, 2022 - Bulletin Print Report
Petitioner acquired the subject property pursuant to a donation agreement on April 12, 2021. Respondent subsequently levied summer and winter taxes against the subject property...
Environmental Protection Payments Excluded From Gross Income
December 12, 2022 - Bulletin Print Report
Suffolk County (N.Y.) is experiencing degraded water quality as a result of excess nitrogen and nitrogen pollution. To address the adverse effects of nitrogen pollution...Suffo...
Determining The Basis Of Stock Received In A Sec. 351 Exchange
December 12, 2022 - Volume 16 Issue 235 Print Report
A, an individual, was engaged in business as a sole proprietor. The assets of the proprietorship consisted of accounts receivable with a basis of zero and fair market...
"Agricultural Use" Not Found
December 9, 2022 - Bulletin Print Report
In 2013, TPs submitted an application, (the "Application"). The Application sought to dedicate 32.406 acres on the Parcel to the ranching of "off site feed"...
Who "Manufactured" Polaroid Cameras?
December 9, 2022 - Volume 16 Issue 234 Print Report
Sec. 3406(a)(4) of the 1939 Code provided: "There shall be imposed on the following articles, sold by the manufacturer, producer, or importer, a tax....cameras.....
"Living Within The Boundaries" Not Synonymous With "Domicile"
December 9, 2022 - Bulletin Print Report
At issue is whether TP is entitled to the income tax exemption set forth in NMSA 1978, section 7-2-5.5 (1995), which provides that income earned by a tribal member is exempt fr...
COVID-Era Method Of Taxation Is Constitutional
December 9, 2022 - Bulletin Print Report
C is a resident of ST and is employed in the petroleum refining industry with a usual place of business in O. From March 15, 2020 to thistime the complaint was filed, C w...
Sales Tax Credit Was Properly Denied
December 8, 2022 - Bulletin Print Report
On October 3, 2018, Taxpayer purchased a Trailer. Taxpayer registered the vehicle with the Department on October 25, 2018. The Trailer was purchased by, and is titled in, the n...
Los Angeles Has A New "Mansion" Surtax
December 8, 2022 - Bulletin Print Report
Los Angeles voters, overwhelmingly,approved a new tax on high end real estate transfers. The proceeds from the tax, estimated to be anywhere from $600 million to $1 billi...
Litigation Settlement Ruled Tax-Free
December 8, 2022 - Volume 16 Issue 233 Print Report
C and D, individuals, entered into an oral contract with H, an individual. H agreed to manage the business of C and D, taking a significant reduction in salary in the...
"Streamers" Are Able To Avoid Franchise Fees
December 8, 2022 - Bulletin Print Report
N and H are video-content providers that stream on-demand shows and movies to their subscribers over the Internet. Because N and H make their content available through the publ...
How To Compute The Basis Of "Qualified Replacement Property"
December 7, 2022 - Volume 16 Issue 232 Print Report
In 1942, plaintiff acquired improved real property. On February 2, 1966, the Department of Highways purchased that property from the plaintiff for $125,300 in cash. According t...
"COP" Rule Used To Determine Florida Sales Factor
December 7, 2022 - Bulletin Print Report
TEI is a subsidiary of T. Both are headquartered in Minnesota. TEIearns revenue from providing services to T and certain other third parties. In 2011, TEI and T entered i...
Taxpayer's "VSC" Sales Were Wholesale Sales
December 7, 2022 - Bulletin Print Report
P's business involves entering into vehicle service contracts, ("VSCs"), with buyers of vehicles and then administering those VSCs. The VSCs are extended warranti...
Tax Abatement Agreement Not Found
December 7, 2022 - Bulletin Print Report
TEX. LOC. GOV'T CODE ANN. section 381.004(b) authorizes "the commissioners court of the county to develop and administer a program...for state and local economic devel...
When Are Shares No Longer Outstanding?
December 6, 2022 - Volume 16 Issue 231 Print Report
P is the common parent of an affiliated group filing a consolidated federal income tax return. S is a member of P's affiliated group. P owns 100 percent of the common stock...
Fuel Surcharges Are Subject To Sales And Use Tax
December 6, 2022 - Bulletin Print Report
Retailers selling tangible personal property at retail may or may not charge their customers for delivering merchandise via their own vehicle. However, when fuel costs increase...
Transfer To Trust Terminates Property Tax Relief
December 6, 2022 - Bulletin Print Report
At issue is whether Mr. B's transfer of the "subject property" to the Trust made him ineligible for taxpayer relief pursuant to TENN. CODE ANN. section 67-5-702(a...
Taxpayer's "ESA" Payment Was Timely
December 6, 2022 - Bulletin Print Report
This case involves the issue of whether petitioner, ("P"), complied with the statutory requirements of the Eligible Manufacturing Personal Property, ("EMPP"...
Depositors Have The Rights Of Shareholders
December 5, 2022 - Volume 16 Issue 230 Print Report
X and Y, both organized in State R, have operated continuously for many years as mutual savings banks. Neither had any capital stock outstanding, nor were there any other writt...
Absence Of A "Return" Prevented Discharge Of Tax Debts
December 5, 2022 - Bulletin Print Report
K failed to file income tax returns when due for 1997 and 2000. Nor did he pay the taxes that were owed. In March 2003, the I.R.S. assessed the tax believed to be due for 1997....
Deeded Property Subject To Inheritance Tax
December 5, 2022 - Bulletin Print Report
The parties stipulated decedent "deeded" the property to C by a series of deeds from 1992 to 1995. The parties further stipulated decedents continued to control and f...
Mayo Clinic Is An "Exclusively Educational Organization"
December 5, 2022 - Bulletin Print Report
In 1965, the I.R.S. determined that Mayo Clinic, ("MC") was a tax-exempt entity under section 501(c)(3) of the Internal RevenueCode. On February 28, 1969, MC me...
Who Is The "Manufacturer" Of Medical Device?
December 2, 2022 - Volume 16 Issue 229 Print Report
C1 produces "Device" for C2 pursuant to License Agreement. Device is a taxable medical device described in Sec. 4191(b) of the Code. Sec. 48.0-2(a)(4)(i) of the Manuf...
Challenge To Mandatory Repatriation Tax Dismissed
December 2, 2022 - Bulletin Print Report
Appellants' Petition for Rehearing En Banc is DENIED. Four judges dissented. At the Founding, the dissenters noted, for a direct tax to be constitutional, the federal gover...
Tier 1 Railroad Retirement Benefits Are Not Workmen's Compensation
December 2, 2022 - Bulletin Print Report
S worked for 33 years for Metro-North, ("MN"), until hisretirementin 2015. He retired following diagnosis and surgery for colon cancer. Upon his retiremen...
Video Service Not Provided
December 2, 2022 - Bulletin Print Report
In 2008, the Tennessee, ("T"), General Assembly enacted the Competitive Cable and Video Services Act, (the "Act"). The Act requires "any entity...seeki...
General Electric Will Retain 19.9 Percent Of HealthCare Shares
December 1, 2022 - Bulletin Print Report
General Electric Company, ("GE"), announced that its Board of Directors has approved the spin-off of its health care business, ("GE HealthCare"). GE HealthC...
CFC Partners Hold U.S. Property Held By Another Partner
December 1, 2022 - Volume 16 Issue 228 Print Report
USP is the common parent of an affiliated group of corporations that file a consolidated income tax return. Throughout Tax Year 1, USP indirectly wholly owned numerous controll...
When Are Tax Credits "Awarded"
December 1, 2022 - Bulletin Print Report
In 2015, plaintiffs, ("Ps"), installed solar panels on their home and received a Residential Energy Tax Credit, ("RETC)", totaling $6,000. Ps' RETC appl...
NASCAR's Receipts Are Not "Sitused" To Ohio
December 1, 2022 - Bulletin Print Report
The Ohio General Assembly enacted the Commercial Activity Tax, ("CAT"), in 2005. The CAT is imposed on "taxable gross receipts for the privilege of doing busines...
PKN Orlen To Acquire Oil And Gas Producer
December 1, 2022 - Bulletin Print Report
One of the world's largest companies, PKN Orlen, recently acquired, as a complement to its oil refining business, the assets, subject to the liabilities, of an oil and gas...
Can We Insure “Exchange” Treatment of Pre-Merger Distributions?
November 30, 2022 - Bulletin Print Report
One of more enduring issues faced by tax advisors who travel in the mergers and acquisitions space is the proper classification, for federal income tax purposes, of what we can...
A REIT's Swap Income Is Not Included in Gross Income
November 30, 2022 - Volume 16 Issue 227 Print Report
TP has elected to be taxed as a Real Estate Investment Trust, (REIT). S is wholly-owned by TP and has elected to be taxed as a "taxable REIT subsidiary" und...
Damages For Emotional Distress Not Excludible From Gross Income
November 30, 2022 - Bulletin Print Report
In September 2009, Chicago State University, ("CSU"), hired T as project director of a federal grant that CSU had received. T expressed concerns to the U.S. Departmen...
Tenancy By The Entireties Equated To Right Of Survivorship
November 30, 2022 - Bulletin Print Report
The As created the Trust on August 17, 2004. The As created the Trust to qualify as a "grantor trust." The Trust provided that the As would be the trustors and truste...
STAR In-Kind Dividend Update
November 29, 2022 - Bulletin Print Report
Following up on yesterday's bulletin, iStar, Inc., ("STAR"), has announced the pr...
Substitution Of Obligor Not A Significant Modification
November 29, 2022 - Volume 16 Issue 226 Print Report
D and C are both Country A corporations. Neither is required to file a U.S. federal incometax return. On Date M, D distributed pro rata to its shareholders all...
Cost Of Performance Properly Used To Determine Fair Value Of Services
November 29, 2022 - Bulletin Print Report
Texas imposes a franchise tax on each taxable entity that does business in the state. A taxable entity's franchise tax obligation is determined by multiplying the "tax...
Premature Attempt To Redeem Delinquent Property Not Penalized
November 29, 2022 - Bulletin Print Report
Plaintiff, ("GK"), purchased a tax sale certificate on a condominium unit in North Bergen, New Jersey, owned by defendant, GC. After waiting the full two years requir...
Recast Transaction Treated As Consecutive Spin-Offs
November 29, 2022 - Bulletin Print Report
Foreign Parent is the parent of a large, worldwide group of business entities. Foreign Parent owns FDE1, which owns FDE 2, which owns FDE 3. Parent is a domestic corporat...
Retroactive Changes To The I.R.C. Produce A State Tax Refund
November 28, 2022 - Bulletin Print Report
A Colorado taxpayer's state income tax liability begins with their "federal taxable income, as determined pursuant to section 63 of the internal revenue code." Th...
STAR To Disburse An "In-Kind" Dividend
November 28, 2022 - Bulletin Print Report
The merger of Safehold, Inc., ("SAFE"), and iStar, Inc., ("STAR"), was already a rather complicated affair. It just got even more complex. To recap, STAR cu...
Absence Of Income Does Not Preclude A Finding Of An "ATB"
November 28, 2022 - Bulletin Print Report
Distributing is a privately held corporation engaged in "Business." Business includes conducting research and development activities for the production of Product X a...
One's Only Residence Is His Principal Residence
November 28, 2022 - Volume 16 Issue 225 Print Report
At the time of his mother's passing, petitioner's sister lived in the Elmsford (N.Y.)home (EH), while petitioner lived in a New York City apartment. In...
Pandemic Did Not Excuse Failure To Appeal
November 25, 2022 - Bulletin Print Report
Plaintiff challenges the value of property...for the 2020-21 tax year. Defendant moves to dismiss Plaintiff's appeal of the 2020-21 tax year because plaintiff failed to app...
Payroll And Property Must Be Considered Together
November 25, 2022 - Bulletin Print Report
In 2001, Avnet, Inc., ("AI"), instituted a program to securitize its accounts receivable. It did so by selling its accounts receivable to a wholly owned subsidiary, &...
Waived Dividend Does Not Produce "Constructive" Dividend Income
November 25, 2022 - Volume 16 Issue 224 Print Report
M is an insurance holding company. M has outstanding common stock that is widely-held and publicly traded. M also has outstanding shares of preferred stock consisting...
Taxpayer Denied Special Assessment Ratio
November 25, 2022 - Bulletin Print Report
When a property is classified as residential, it receives a special assessment ratio of four percent, rather than the default six percent ratio. The four percent ratio is appli...
Incentive Payments Are Not A Rebate
November 23, 2022 - Volume 16 Issue 223 Print Report
Auto manufacturers offer "Facility Image Upgrade Programs" (P). To provide an incentive for a dealership to participate in P, a manufacturer may offer "...
Partnerships Are An “Aggregate” For Spin-Off Purposes
November 23, 2022 - Bulletin Print Report
Property Tax Increase Not Subject To Referendum
November 23, 2022 - Bulletin Print Report
The petitioners ask us to decide whether "a property tax increase by a school district is subject to a referendum..." Article VI, section 1 of the Utah Constitution p...
Toyota Prius Prime Not Eligible For Use Tax Exemption
November 23, 2022 - Bulletin Print Report
TP purchased a new 2021 Toyota Prius Prime XLE, (the "Vehicle"), from a Toyota auto dealer...located in Oregon in 2020. It had a Hybrid Synergy Drive System, ("H...
Roadside Services Do Not Alter Or Improve The Vehicle
November 22, 2022 - Bulletin Print Report
B provides...roadside services to drivers in Wyoming, ("W"). B has nevercollected sales tax on these services. The Department of Revenue, ("DOR"), det...
Transportation Companies Not Exempt From Texas Franchise Tax
November 22, 2022 - Bulletin Print Report
S initiated administrative proceedings seeking a refund claim for franchise tax paid... The trial court granted the State's motion for summary judgment and denied S's m...
Purchases Allocated To The Government Not Subject To Sales Or Use Tax
November 22, 2022 - Bulletin Print Report
O is a Wisconsin corporation. O incurred various expenses for indirect materials that were allocated to the "Five Government Contracts." O was assessed UTAor pa...
I.R.S. Reclassifies What Is In Form A Charitable Contribution
November 22, 2022 - Volume 16 Issue 222 Print Report
In 1966, Y, a taxable corporation, paid dividends to its sole shareholder, Z, an organization exempt under Sec. 501(c)(3) of the Code as a charitable organization. In...
Attorney Had Priority Lien Against Qui Tam Funds
November 21, 2022 - Bulletin Print Report
The issue in this False Claims Act, ("FCA"), case is who gets priority over funds obtained through a partial settlement of the case: is it the government...or the pla...
Residential Property Not Held For Investment
November 21, 2022 - Bulletin Print Report
The Trust was created on July 20, 2006 by the Bs to hold title to land, (the "LAp"). The Bs used the LApto collateralize a $3 million mortgage...to finance cons...
The Willens Deal Survey November 2022
November 21, 2022 - The Deal Survey: November 2022 Print Report
Welcome to this month's summary of deals. Full reports on some of these transactions can be found via the link in the description, or by searching the company name in our database.
FNF's "Imperfect" Spin-Off
November 21, 2022 - Bulletin Print Report
Fidelity National Financial, Inc., ("FNF"), has a well-deserved reputation forcreativity both in terms of its capital structure and the ways in which it chooses...
Dominant Motivation Finding Yields Business Bad Debt Deduction
November 21, 2022 - Volume 16 Issue 221 Print Report
In 1980, L founded AFS. The purpose of ASF was to provide and install alternative fuel systems. L was the principal shareholder of AFS. He was also the chairman of th...
Uber's "Safe Rides Fee" Is Subject To Sales Tax
November 21, 2022 - Bulletin Print Report
Beginning April 2014, Riders paid Uber a "Safe Riders Fee" on trips facilitated by and through the Uber App. From July 23, 2012 until March 2014, Uber did not charge...
Contribution Made Within 60 Days Of Withdrawal Is A "Rollover"
November 18, 2022 - Volume 16 Issue 220 Print Report
H developed technology in the late 1990s and licensed the technology to several related companies. He made secured loans to two of these companies in 2006 and 2007. T...
A Lease Tax Was Not An Ad Valorem Tax
November 18, 2022 - Bulletin Print Report
L filed suit against P alleging that the parties' lease agreement required P to pay a certain tax imposed by the City of Chicago on the lease of personal property. The circ...
Moving Expense Reimbursement Found To Be Taxable
November 18, 2022 - Bulletin Print Report
On his 2018 Virginia, ("V"), resident individual income tax return, TP claimed a subtraction for moving expenses that were paid for by his employer during the 2018 ta...
The Braves Are Set To Become A Rare "Pure Play" Sports Franchise
November 17, 2022 - Bulletin Print Report
Investors have been anticipating this day for quite some time, and now it has finally arrived. Liberty Media Corporation, ("LMC"), has announced that its board of dir...
Developer Not Entitled To Capital Gains Treatment
November 17, 2022 - Volume 16 Issue 219 Print Report
GB and DD formed GF in September 2002. In November of that year, GF purchased, for approximately $3.2 million, 1,982 acres of land in Florida (the GFp). Petitioners s...
City Had No Right Of Action Against Netflix And Hulu
November 17, 2022 - Bulletin Print Report
The Arkansas Video Service Act, (the "VSA"), establishes a state wide franchising scheme for authorizing video service providers to provide services in political subd...
Reasonable Cause For Failure To File Found
November 17, 2022 - Bulletin Print Report
Taxpayer is a physician with specialties in Critical Care and Cardiology.Between February 1 and June 25, 2021, Taxpayer served in a voluntary deployment to NYC Health + H...
Property Owner Found Exempt From Income Taxes
November 17, 2022 - Bulletin Print Report
C is engaged in the business of selling and developing real estate. C sought an income tax exemption pursuant to R.C. 715.72(Q). The trial court found that C was exempt from in...
MMX Acquisition Appears To Be Taxable
November 16, 2022 - Bulletin Print Report
Triple Flag Precious Metals Corporation, ("TFPM") and Maverix Metals, ("MMX"), each a Canadian corporation, announced that they have entered into a definiti...
Court Enjoins Student Loan Discharge Program
November 16, 2022 - Bulletin Print Report
This case centers on the plaintiff States' request to preliminarily enjoin the Secretary of Education from implementing a plan to discharge student loan debt. The district...
"Bausch & Lomb" Doctrine Prevents a 'B' Reorganization
November 16, 2022 - Volume 16 Issue 218 Print Report
X corporation, ("X"), owned all of the outstanding stock of Y corporation, ("Y"). Y owned in excess of 80 percent of the outstanding stock of Z co...
Court Cannot Entertain Challenge To The "GILTI" Regulations
November 16, 2022 - Bulletin Print Report
Plaintiffs, ("Ps"), challenge regulationseffecting the TCJA's provisions revising the "GILTI" of certain controlled foreign corporations. On June...
Issuer Of Extended Warranties Is An Insurance Company
November 15, 2022 - Volume 16 Issue 217 Print Report
TP is a partnership operating under the laws of State N. TP is engaged in the business of selling equipment to commercial customers. TP is forming a wholly-owned subs...
Responsible Party Tax Assessment Not Time-Barred
November 15, 2022 - Bulletin Print Report
GD, a corporation, operated a bar in Kansas City. T was the owner and an officer of GD before he passed awayin December 2015. The director made additional assessments aga...
Vacation Pay And Termination Pay Subject To Virginia Taxation
November 15, 2022 - Bulletin Print Report
During 2018, Taxpayers, a husband and wife, were residing in Virginia when the husband separated from his Virginia employer. He received both severance pay and pay for unused v...
"Unusual Condition(s)" Requires Revaluation Of Property
November 15, 2022 - Bulletin Print Report
In May 2020, after receiving their 2020 property valuations, the taxpayers sent a letter to Weld County's assessor requesting revaluation of their properties under the unus...
Platform Credits Are Not Subject To Sales Tax
November 14, 2022 - Bulletin Print Report
Company, ("C"), enables people, ("Viewers"), to watch streaming videos on C's Internet-based platform, ("Platform"). Viewers can view real-tim...
Deductions And Credits Denied For Want Of A Profit Motive
November 14, 2022 - Bulletin Print Report
O bought solar lenses through a program created by J. Under the program, J would use the lenses in a new system to generate electricity... J never finished the system. J funded...
Transfer Of Funds To Charity Not Deductible
November 14, 2022 - Volume 16 Issue 216 Print Report
Prior to 1959, the taxpayer was owned by SR (75 percent) and byPB (25 percent). Following SR's death in 1959, his stock was transferred to the SR Foundation...
Retained Shares Used To Satisfy Recently-Incurred Debt
November 14, 2022 - Bulletin Print Report
D retained the "Retained Shares." See section 355(a)(1)(D). D generally will use the Retained Shares to satisfy debt. D has determined that the Retention furthers wha...
A Corporation In "Run-Off" Mode Is Still An Insurance Company
November 11, 2022 - Volume 16 Issue 215 Print Report
On Date 1, the "B" court entered an order finding Taxpayer, (TP), to be "insolvent" and as a consequenceplaced TP into "rehabilitation&...
Any Appeals And Petitions Toll The Statute Of Limitations
November 11, 2022 - Bulletin Print Report
For the six-year period from 1986 through 1991, W did not pay federal income taxes. In October 1994, W late-filed his tax returns for those years. The I.R.S. made tax assessmen...
ALKS To Pursue Spin-Off Of Oncology Business
November 11, 2022 - Bulletin Print Report
Alkermesplc, ("ALKS"), announced approval by its Board of Directors "to explore separating its commercial stage neuroscience business an...
Membership Dues Subject To Sales Tax
November 11, 2022 - Bulletin Print Report
The Club is a federal tax-exempt entity. The Club collected and remitted sales tax on monthly membership dues collected from Club membersand also on charges for meals and...
Pre-Revenue Corporations Are Not Active For Helen Of Troy Purposes
November 10, 2022 - Bulletin Print Report
FA conducts research and product development. FA will acquire all the USC stock from USSHin exchange for newly-issued FA stock pursuant to a reorganization described in s...
An "Induced" Split-Off Is A "True Bargain Transaction"
November 10, 2022 - Bulletin Print Report
Although a pro-rata spin-off remains the most popular methodfor a corporation to divest itself, tax-efficiently, of a suddenly incompatible business, some distributing co...
The "Forward Cash Merger" Is Alive And Well In REIT-Land
November 10, 2022 - Bulletin Print Report
An acquisition technique that had, at one time, occupied a prominent place in an investment banker's arsenal, the "forward cash merger," was relegated to relative...
Dividends Qualify For The "Same Country" Exception
November 10, 2022 - Volume 16 Issue 214 Print Report
X is a publicly held domestic corporation. X owns all of the stock of Y, a domestic corporation. Prior to Date 1 of Year 1, X owned all of the stock of Z, a corporation o...
Difficulty Of Care Payments Are Subject To FICA And FUTA Tax
November 9, 2022 - Bulletin Print Report
A parent who is an individual service provider to his or herdisabled child received in-home care payments from a State program. A 2002 Field Service Advisory, 2002 WL 131...
Sale Of Portion Of Business Line Produced "Operational" Income
November 9, 2022 - Volume 16 Issue 213 Print Report
Elan Corporation plc (P) is an Irish public limited company headquartered in Ireland. It is a worldwide pharmaceutical company. P conducted operations through two primary busin...
Section 1398 Does Not Apply To Corporations
November 9, 2022 - Bulletin Print Report
EFI was incorporated in 1991. EFI made a valid election to be treated as an 'S' corporation. Petitioners held a tenpercent interest in EFI, while petitioners'...
Weather Forecasting Services Not Subject To Sales Tax
November 9, 2022 - Bulletin Print Report
TP provides forecasting to its clients. The forecasting may include location specific forecasts, advance notice and assessment of severe weather threats, severe weather alerts,...
IAA To Move North Of The Border
November 8, 2022 - Bulletin Print Report
Ritchie Brothers Auctioneers, Inc., ("RBA"), a Canadian corporation, and IAA, Inc., ("IAA"), a domestic corporation, have entered into a definitive agreemen...
Parent And Subsidiary Not Related At The Relevant Time
November 8, 2022 - Volume 16 Issue 212 Print Report
P owns S. On Date 1, P formed HS, by transferring "$a" to HS in exchange for "b" shares of HS stock. On Date 2, HS filed a registration statement with the S...
Out-Of-State Law Firm Had Substantial Nexus With Washington
November 8, 2022 - Bulletin Print Report
TP is an out-of-state law firm specializing in legal services related to the procurement of patents from the USPTO. TP provides legal services to customers headquartered in Was...
Injectable Medication And Injectable Biologics Are Subject To Sales Tax
November 8, 2022 - Bulletin Print Report
Is the sale at retail of an injectable medication or injectable biologic for use in a hospital or an independent surgery center exempt from sale and use tax under Code section...
Patronage Dividends Excluded From REIT's Gross Income
November 7, 2022 - Volume 16 Issue 211 Print Report
TP elected to be treated as a REIT. TP's primary business is to own and manage timberlands. In Year 1, TP entered into a credit agreement. In Year 5, TP borrowed "$b&q...
The DTA Cannot Consider Facial Constitutional Challenges
November 7, 2022 - Bulletin Print Report
On April 13, 2017, J filed an electronic request for an extension of time within which to file her New York State personal income tax return for 2016. She filed her return on S...
Benefit Of Services Received At A Customer's Residence
November 7, 2022 - Bulletin Print Report
TP provides professional genealogical services to individuals. Audit attributed TP's gross receipts to the state of each customer's residence because Audit determined t...
Unrestricted Right To Income Bars Application Of Section 1341
November 7, 2022 - Bulletin Print Report
The trust was established as a revocable trust. It became an irrevocable trust upon the death of the decedent. Before his death, the decedent transferred his assets to the trus...
Ligand Pharmaceuticals Entrusts OmniAb To A SPAC
November 4, 2022 - Bulletin Print Report
We have seen an inordinate number of special purpose acquisition companies, ("SPACs"), "throw in the towel" and announce their intention to liquidate due to...
Sec. 338(h)(10) Incorporates a Sec. 332 Liquidation
November 4, 2022 - Volume 16 Issue 210 Print Report
P is a domestic corporation that conducts a life insurance business. All of P's stock is owned by H. T is a domestic corporation that conducts a life insurance bu...
Property Tax Payment Service "Relates To Real Property"
November 4, 2022 - Bulletin Print Report
TP performs residential real estate property tax payment services for banks, mortgage companies and other financial institutions, ("Lenders"). TP maintains a database...
"Inflation Fees" Are Subject To Sales Tax
November 4, 2022 - Bulletin Print Report
As a result of recent inflationary times, some retailers are adding a separate fee to a customer's invoice or receipt in order to recover some or all of their increased ope...
EMR Should Plan On Incurring A Large "Minimum" Tax Liability
November 3, 2022 - Bulletin Print Report
Emerson Electric Co., ("EMR"), and Blackstone, Inc., ("BI"), announced a transformative transaction that has as its objective the placing of EMR's...
10 Percent "Additional" Tax Imposed on Plan Distributions
November 3, 2022 - Volume 16 Issue 209 Print Report
The taxpayer, W, an individual,had beena full-time employee of the Association of American Medical Colleges (AAMC) from March 1, 1981 until her retirement...
Interest On "MBS" Subject To "B&O" Tax
November 3, 2022 - Bulletin Print Report
TP is a financial institution. TP earned interest income on investments in mortgage-backed securities, ("MBS investments"), and home equity conversion mortgage-backed...
ABMD Shareholders Will Receive CVRs
November 2, 2022 - Bulletin Print Report
Johnson & Johnson, ("JNJ"), and Abiomed, ("ABMD"), announced that they have entered into a definitive agreement under which JNJwill acquire, throu...
EMR To Employ Leveraged Partnership Divestiture Technique
November 2, 2022 - Bulletin Print Report
On October 30, 2022, Emerson Electric Co., ("EMR"), "BCP Emerald," a Delaware limited partnership formed by investment funds managed by affiliates of Blacks...
Stock Dividend Costs Are Capital In Nature
November 2, 2022 - Volume 16 Issue 208 Print Report
TP is a public utility organized under the laws of West Virginia. Its stock is widely held and it consistently paid cash dividends to shareholders. To retain addition...
Post-Transfer Stock Dividend Includible In Gross Estate
November 1, 2022 - Volume 16 Issue 207 Print Report
In January 1979, D, the decedent, gratuitously transferred 500 shares of stock of X to A. The stock of X is publicly traded. In December 1979, X declared a stock divi...
Refunds Are Not Final Determinations
November 1, 2022 - Bulletin Print Report
Before their marriage on May 16, 2015, petitioners, ("Ps"),separately enrolled in health insurance for taxable year 2015 through ALIC, which they purchased thro...
Student Loan Relief Plan Did Not Cause Injury
November 1, 2022 - Bulletin Print Report
Plaintiff is a Pell Grant recipient who has taken out federal student loans. To pay back his student loans, plaintiff utilizes an income-driven program and intends to seek forg...
Flagstar Is Not Sure How Its Special Dividend Will Be Characterized
October 31, 2022 - Bulletin Print Report
In May 2021, New YorkCommunity Bancorp, Inc., ("NY"), and Flagstar Bancorp, Inc., ("FB"), entered into a definitive merger agreement pursuant to which...
Statutory Conversion Not Subject To Real Estate Transfer Tax
October 31, 2022 - Volume 16 Issue 206 Print Report
In 1969, ABCRT was formed as a Massachusetts Business Trust to hold a single piece of real estate located in New Hampshire. The sole beneficiary of the trust is XYZLP...
Rare Approval Of Alternative Apportionment Method Granted
October 31, 2022 - Bulletin Print Report
In 2019, TP received a favorable ruling authorizing the use of an alternative apportionment method. C1 is a partnership. C1H, formerly C2, is a disregarded limited liability co...
Employees Not "Injured" By Employer's Failure To Remit Withheld Taxes
October 31, 2022 - Bulletin Print Report
Plaintiffs, ("Ps"), worked as delivery drivers for E, a service provider for FedEx. Ps allege that their supervisor told them he was withholding part of their weekly...
Leased Employees Not Included in Payroll Factor
October 28, 2022 - Volume 16 Issue 205 Print Report
TP is an out-of-state holding company which owns a 100 percent membership interest in several limited liability companies. The limited liability companies are disrega...
Receipts From Sale Of Goodwill Excluded From Sales Factor
October 28, 2022 - Bulletin Print Report
Historically, C1's operations consisted of three operating segments: (1) Industry 1 and Industry 2, (2) Industry 3, and (3) Retail. Vital to this petition are C2's comp...
Production Tax Credits Are Intangible Property
October 28, 2022 - Bulletin Print Report
In 2015, KW began construction of a wind farm. The total fair cash value in both counties was $458,003,507. KW filed an appeal. KW sought to have Production Tax Credits, ("...
MSGE's Spin-Off Features A "Retention"
October 27, 2022 - Bulletin Print Report
Madison Square Garden Entertainment Corporation, ("MSGE"), announced that it has "confidentially submitted an initial Form 10 Registration Statement with the S.E...
"Equity Of Redemption" Does Not Delay Worthless Stock Deduction
October 27, 2022 - Volume 16 Issue 204 Print Report
A corporation became insolvent and all of its assets were sold in October 1970 under a foreclosure proceeding for the amount of the company's bonded debt. At that...
Strike Three For Disney
October 27, 2022 - Bulletin Print Report
Petitioner, ("P"), licensed intellectual property to affiliates organized under the law of foreign countries in exchange for royalty payments. P deducted royalty paym...
Premium Tax Credit Cannot Be Used As An Income Tax Credit
October 27, 2022 - Bulletin Print Report
BC has been a certified mutual insurance company...engaged in the business of issuing accident and health insurance plans. As such, BC is subject to and pays the Premium Tax. L...
The Willens Deal Survey October 2022
October 26, 2022 - The Deal Survey: October 2022 Print Report
Welcome to this month's summary of deals. Full reports on some of these transactions can be found via the link in the description, or by searching the company name in our database.
"Conduit" Does Not Have Unreported Income
October 26, 2022 - Volume 16 Issue 203 Print Report
In 2001, MK and his brother bought a home in Minnesota for $141,000. In 2004, MK's brother transferred his interest in the home to MK. In 2006, MK decided to refi...
LLY Will Use CVRs As Merger Consideration
October 26, 2022 - Bulletin Print Report
Eli Lilly & Co., ("LLY"),and Akouos, Inc., ("AKUS"), recently announced a definitive agreement pursuant to which LLY will acquire all of the stock...
"Submit" Means "Receive" And Not Merely "Transmit"
October 26, 2022 - Bulletin Print Report
Plaintiff, ("P"), owns rental properties in H. On or before April 15, 2016, the assessor provided P with forms on which to disclose P's income and operating expen...
Gift of Stock Before Liquidation Not Recast
October 25, 2022 - Volume 16 Issue 202 Print Report
On April 1, 1986, the directors of C Corporation, (C), adopted a plan of complete liquidation to be effective on that date. Foundation, (F), was incorporated on April...
Reasonable Cause For Untimely Filing Not Shown
October 25, 2022 - Bulletin Print Report
Appellants, ("APPs"),hired a professional accounting firm to file their 2016 tax returns. APPs reviewed the return prior to the extended due date and authorized...
Failure To Limit "Clientele" To Those In Need Doomed Property Tax Break
October 25, 2022 - Bulletin Print Report
P is a tax-exempt charitable organization for federal tax purposes that owns real property, (the "Property"). P provides "flexible financing" for the develo...
Sec. 905(c) Applies In Terms Of U.S. Dollars
October 24, 2022 - Volume 16 Issue 201 Print Report
Petitioner, (P), had its principal office at Philadelphia, PA,and engaged primarily in the operation of an aircraft design facility in the U.K. For fiscal year...
Underpayment Penalties Could Not Be Abated
October 24, 2022 - Bulletin Print Report
Petitioners are Delaware residents who seek an abatement of a penalty arising from petitioners' failure to pay the proper amount of estimated income taxes for 2019. For man...
Confirmation Of Chapter 11 Plan Does Not Lift Automatic Stay
October 24, 2022 - Bulletin Print Report
Respondent issued petitioners a notice of deficiency for taxyear 2011 on July 7, 2016. Shortly thereafter, petitioners filed the petition with this court challenging resp...
Employment Verification Services Are Not Taxable
October 21, 2022 - Bulletin Print Report
Petitioner, ("P"), operates an employment screening business. P provides screening services for its clients including verification services and drug screening service...
Registrar And Transfer Agent Fees
October 21, 2022 - Volume 16 Issue 200 Print Report
A corporation listed its capital stock on a registered stock exchange and appointed botha registrar and a transfer agent to whom fees were paid "to take ca...
Equitable Title Taken Without Just Compensation
October 21, 2022 - Bulletin Print Report
Oakland County took title to plaintiffs' homes under the Michigan General Property Tax Act, (the "Act"), which prescribed the process for tax foreclosures. If tax...
STOR's Merger Consideration Should Not Be Subject To Withholding Tax
October 21, 2022 - Bulletin Print Report
As we previously reported, STORE Capital Corporation, ("STOR"), a real estate investment trust, ("REIT"), and GIC and Oak Street announced that they have en...
CLR Is "Going Private"
October 20, 2022 - Bulletin Print Report
The family, led by HGH, (the "Founder"),which owns approximately 83 percent of the stock of Continental Resources, Inc. ("CLR"), has decided that it w...
I.R.S. Applies Sec. 856(c)(5)(J) To Preserve REIT Status
October 20, 2022 - Volume 16 Issue 199 Print Report
A (or TP) is a real estate investment trust (REIT). TP owned "a" properties and leased "b" properties from third parties. As of Date 1, approximat...
Tax Debts Are Excepted From Discharge
October 20, 2022 - Bulletin Print Report
Debtor, ("D"), filed a case under chapter 13 of the Bankruptcy Code on February 11, 2009. It was converted to a case under chapter 11 on March 2, 2010. On August 12,...
Amounts Collected Not Valid Advances And Reimbursements
October 20, 2022 - Bulletin Print Report
Taxpayers operated a full-service advertising agency in the State of Washington. Sales tax was collected from clients. However, Taxpayer remitted no retail sales tax to the Dep...
Phoenix Suns Owner Robert Sarver’s $10 Million Fine Should Be Deductible
October 19, 2022 - Bulletin Print Report
In a recent article, Richard L. Fo...
Settlement Proceeds Constituted Additional Consideration For Stock
October 19, 2022 - Volume 16 Issue 198 Print Report
Each of two trusts owned 250 shares of MS's outstanding stock. There were outstanding 76,543 shares of common stock of MS, of which some 97 percent were owned by HC and his...
Certain Credit Reporting Services Are Taxable
October 19, 2022 - Bulletin Print Report
Credit rating agencies perform services by assigning a rating to entities or debt obligations indicating the likelihood that debts will be repaid. Agencies may rate the creditw...
Business Interruption Insurance Payments Treated As Qualifying Income
October 19, 2022 - Bulletin Print Report
TP intends to elect to be taxed as a real estate investment trust, ("REIT"). TP owns and operates its properties through OP, a limited partnership. OP owns and leases...
Warrant Exchanges In "Overlap" Transactions
October 18, 2022 - Bulletin Print Report
It appears that the demise of special purpose acquisition companies, ("SPACs"), widely predicted in the popular press, has been greatly exaggerated. SPAC acquisitions...
Apparel Corporations Properly Filed On A Combined Basis
October 18, 2022 - Volume 16 Issue 197 Print Report
ITH owned all the stock of each of ITU and MAC. ITH, in turn, was owned by ITH SpA, an Italian clothing company based in Milan, Italy. ITH performed various services for ITU an...
Personal Information Service Not Subject To Sales Tax
October 18, 2022 - Bulletin Print Report
Y is a Delaware corporation. Its principal place of business is Massachusetts. Y's mission is to "help companies sell smarter." During the audit period, Y offered...
Taxpayer Relegated To "Standard" Deduction
October 18, 2022 - Bulletin Print Report
Solvay Chemicals, Inc., ("S"),mines trona from an underground mine. Much of the trona is processed into soda ash. S sells the soda ash in two forms. The majorit...
Borrowing Property Does Not Create Indebtedness
October 17, 2022 - Volume 16 Issue 196 Print Report
Y is described in Sec. 501(c)(3) of the Code. Y proposes to invest in funds that will be treated as partnerships. The main activity of these funds will consist of investing in...
A "GO" Zone Is Not A Texas "Enterprise" Zone
October 17, 2022 - Bulletin Print Report
C operated a petrochemical production facility. C's facility was designated as a Project as part of the Texas Enterprise Zone Program, ("Program"). C submitted an...
Digital Images Not Subject To Sales Tax
October 17, 2022 - Bulletin Print Report
To engage B's wedding photography services, clients contracted for one of E's packages. Every package included the transfer of digital images via a DVD or flash drive....
Bank Had No "Taxes Imposed" Within The Taxable Year
October 17, 2022 - Bulletin Print Report
US is a member of a consolidated group of affiliates owned by USB. US is subject to South Dakota's bank franchise tax, ( the "SD BFT"). The tax is applied to a fi...
New Accounting Proposal for Crypto Assets
October 14, 2022 - Bulletin Print Report
It looks like FASB has decided to change the manner in which "crypto" assets are accounted for. Currently, these assets are treated as "indefinite lived intangibl...
KR And PCI Will Form A Behemoth
October 14, 2022 - Bulletin Print Report
Just days after rumors started circulating about a potential deal, The Kroger Co., ("KR"), and Albertsons Companies, Inc., ("AC") announced this morning tha...
Safehold Will Be The Acquired Corporation In An "Upstream Merger"
October 14, 2022 - Bulletin Print Report
Safehold, Inc., ("SAFE"), and iStar, Inc., ("STAR"), each a real estate investment trust, ("REIT"), engagedin the business of acquiring,&nbs...
Repurchase Tax Not Limited To “Conventional” Redemptions
October 14, 2022 - Bulletin Print Report
The "Origin of the Claim" Determines Deductibility of an Outlay
October 14, 2022 - Volume 16 Issue 195 Print Report
On November 3, 1956, B-W Corporation, (BW), filed a complaint against Corporation A, (A), alleging thatcertain inter-company correspondence between BW and A con...
Parking Spaces Are "Accommodations"
October 14, 2022 - Bulletin Print Report
Prior to June 5, 2019, section 40-26-1, Ala. Code 1975, provided: "There is levied and imposed...a privilege or license tax upon every person...engaging in the business of...
No Reasonable Cause For Failure To Substantiate Contributions
October 13, 2022 - Bulletin Print Report
P served as the Director of African and Oceanic Art at Sotheby's from 2006-2015. In 2011, P decided to make a substantial contribution to the Minneapolis Institute of Art,...
Securities Lending Constitutes "Effecting Transactions in Securities"
October 13, 2022 - Volume 16 Issue 194 Print Report
Each Fund, (F), is a widely-held foreign entity treated as an association and engaged in investment in stocks and securities in the United States. Each F trades its s...
Operator Of "Platform" Need Not Collect And Remit Rental Receipts Tax
October 13, 2022 - Bulletin Print Report
Taxpayer is a "peer-to-peer" car sharing platform headquartered in California. Taxpayer operates a technology platform that enables vehicle owners, (the "hosts&q...
California Residence Preceded Sale Of Stock
October 13, 2022 - Bulletin Print Report
From 2008-2011 APP remained domiciled in Tennessee, ("T"). On November 1, 2012, C and EE entered into a Purchase Agreement for the sale of EE. C subsequently redeemed...
GE's Plans For Spin-Off Of GE Healthcare Clarified
October 12, 2022 - Bulletin Print Report
General Electric Company's plan to divide itself into three independent publicly traded companies is now coming into sharper focus. GE's filing of the Form 10 with resp...
Vessels Not Engaged In Interstate Or Foreign Commerce
October 12, 2022 - Volume 16 Issue 193 Print Report
Petitioner, (P), is in the business of transporting crushed stone, brick, and sand for its parent, CII, which manufactures and sells crushed stone. P's activities which are...
Philip Morris USA, Inc. Denied North Carolina Export Credits
October 12, 2022 - Bulletin Print Report
In 1999, the North Carolina, ("NC") General Assembly enacted the Export Credit Statute granting cigarette manufacturers a tax credit based on the number of cigarettes...
Only "Owners" Can Claim Historic Rehabilitation Tax Credits
October 12, 2022 - Bulletin Print Report
FIS is a block of adjoining buildings in downtown Toledo, Ohio. Prior to the summer of 2016, Plaintiffs, ("Ps"), owned a number of the buildings in this row. In July...
Therapeutic Devices Sold To Medical Providers Are Subject To Sales Tax
October 12, 2022 - Bulletin Print Report
TP is a multinational medical device and health care company that manufactures Product A. Product A is a device used by medical providers in diagnostic evaluation and monitorin...
MSGS Will Pay A "Special Dividend"
October 11, 2022 - Bulletin Print Report
Madison Square Garden Sports Corporation, ("MSGS"), the owner of the New York Knicks and New York Rangers, announced that its board of directors has declared a specia...
"Boot Relaxation Rule"
October 11, 2022 - Volume 16 Issue 192 Print Report
X entered into a plan of reorganization with Y. Pursuant to the plan, X transferred all of its assets to Y in exchange for voting stock of Y and the assumption by Y o...
Absence Of Tax Opinion Elicited Penalties From Illinois
October 11, 2022 - Bulletin Print Report
This court previously ruled that PepsiCo's decision to create PGM LLC to be the corporate home for its expatriates lacked economic substance and business purpose. Prior to...
Service Not Adequate To Satisfy Due Process Clause
October 11, 2022 - Bulletin Print Report
The assessor mailed TP a request for income and expense information pursuant to N.J.S.A. 54:4-34, otherwise known as "Chapter 91," via certified mail on September 15,...
Shareholder Withdrawals Did Not Constitute "True" Debt
October 10, 2022 - Volume 16 Issue 191 Print Report
C is a corporation engaged in an ongoing business. The stock of C consists of 135 shares of common stock, of which A and B, ahusband and wife, owned 117 shares....
Taxpayer Did Not Purchase A Contract To Perform Capital Improvements
October 10, 2022 - Bulletin Print Report
On December 8, 2015, petitioner made a purchase from J. Petitioner describes the items purchased from J as "completed kitchen cabinetry." Petitioner sought aref...
Lack Of Duly Filed Refund Claim Warranted Dismissal Of Suit
October 10, 2022 - Bulletin Print Report
CS has suffered from Stage IV pulmonary sarcoidosis since 2003. Consequentially, CS has been considered permanently disabled by the State of Ohio since 2006. On May 22, 2019, P...
Rental Property Not Eligible For Four Percent Assessment Ratio
October 10, 2022 - Bulletin Print Report
In 2018, Petitioners purchased their home in Georgetown County. The Assessor denied Petitioners' request to be taxed at the four percent residential assessment rate for 202...
Debt Cancelled "By Operation Of Law"
October 7, 2022 - Volume 16 Issue 190 Print Report
BBC was incorporated on October 21, 1946. During her life, the deceased maintained a running loan account with the corporation. The deceased and B, her husband, filed...
Membership Fees Are Deductible From "Base Rent"
October 7, 2022 - Bulletin Print Report
TP operates a members-only workspace where paying members utilize offices, desks, meeting rooms, and collaborative spaces. TP provides four levels of membership. Upon joining,...
Protective Services At A Construction Site Are Subject To Sales Tax
October 7, 2022 - Bulletin Print Report
As required by local law, petitioner, a developer, engaged the services of a company for the provision of "guard and protective services" at a building construction s...
"CRAT" Distributions Treated As Ordinary Income
October 7, 2022 - Bulletin Print Report
During 2015-2017, petitioners, ("Ps"), were actively engaged in the farming business. In July 2015, Ps formed a charitable remainder annuity trust, ("CRAT I"...
"Underneath" Bank Mergers Satisfy Continuity Of Interest Requirement
October 6, 2022 - Bulletin Print Report
Provident Financial Services, Inc., ("PFS"),the parent of Provident Bank, ("PB"), and Lakeland Bancorp, Inc., ("LBI"),the parent of La...
Properly Issued Notice Of Deficiency Presumed Correct
October 6, 2022 - Volume 16 Issue 189 Print Report
In accordance with Sec. 6103(d) of the Internal Revenue Code, the Division of Taxation (the Division) received information from the I.R.S. that indicated that petitio...
Trust Found To Be A "Non-Resident" Trust
October 6, 2022 - Bulletin Print Report
Trust was created for the benefit of the child of "Settlors" under a trust agreement between Settlors and the Initial Trustee. The beneficiary of the Trust is... (the...
Excess APTC Is A Tax Liability
October 6, 2022 - Bulletin Print Report
During 2017, petitioners were enrolled in health insurance provided by HMOL, which they purchased through the HIM. Petitioners' health insurance premium was $1,524 per mont...
Pennsylvania Recognizes Sec. 338(h)(10) Elections
October 4, 2022 - Volume 16 Issue 188 Print Report
CA, a Pennsylvania corporation, is a wholly-owned subsidiary of CB. CA owns all of the issued and outstanding stock of CC, a New York corporation. CC owns all of the...
"POB" Fees Are Part Of "Selling Price"
October 4, 2022 - Bulletin Print Report
TP sells cannabis. Audit determined that the $4.00 fee, (the "POB Fee"), should be includedin the retail selling price in transactions using TP's POBs...
Judicial Decisions Are Given Full Retroactive Effect
October 4, 2022 - Bulletin Print Report
Plaintiffs owned real property within Kent County. Defendants foreclosed on the real property pursuant to the General Property Tax Act, ("GPTA"), because of delinquen...
Division Of Jointly-Owned Property Subject To "REET"
October 4, 2022 - Bulletin Print Report
In 2018, G1 and G2, ("Grantors"), transferred property, ("Property"), to Grantee. Grantors explained that Grantors and Grantee owned six properties together...
Prior Spin-Off "Reopened"
October 3, 2022 - Volume 16 Issue 187 Print Report
In 1977, C was a wholly owned subsidiary of D. On December 13, 1977, D decided it would distributeC stock to all its shareholders as of that same date. No prior...
Paper Machines Found To Be "Fixtures" Subject To "REET"
October 3, 2022 - Bulletin Print Report
T transferred property to TP and in the process became its parent. The Department determined that the true value of the real property transferred was $550,000 and assessed real...
Software Developer Manufactured Tangible Personal Property
October 3, 2022 - Bulletin Print Report
TP is in the business of creating software platforms. TP has subscriptions to certain data provided by third party vendors. TP's products are developed on computers. The so...
Advance Payments Of Section 367(d) Annual Inclusions Not Permitted
October 3, 2022 - Bulletin Print Report
USP owns FC. In Year 1, USP transfers intangible property with an expected useful life of ten years to FC solely in exchange for stock in FC in a section 351 exchange to which...
SPAC's Early Liquidation Avoids Repurchase Tax
September 30, 2022 - Bulletin Print Report
Liberty Media Acquisition Corporation, ("LMAC"), a special purpose acquisition company, ("SPAC"), filed a preliminary proxy statement relating to a special...
Domestic Partnership Can Avail Itself of Sec. 168(g)(4)(G)
September 30, 2022 - Volume 16 Issue 186 Print Report
TP is an LLC organized under the laws of State 1. TP has not elected to be treated as an association taxable as a corporation.  ...
Judicial Exemption Is As Good As A Statutory Exemption
September 30, 2022 - Bulletin Print Report
In 2015, 2016, and 2017, PV owned a solar power facility whose output went only to municipal properties used for public purposes. During these tax years, the Legislature exempt...
Tax Court Refuses To Make Election On Taxpayer's Behalf
September 30, 2022 - Bulletin Print Report
In 2012, CJ was an 'S' corporation owned equally by C and J. In 2014, P was a partnership owned equally by L, C, DT and AT. In 2012, CJ owed $108,965 in property taxes...
Claim For Credit Of Overpayment Not Timely Filed
September 30, 2022 - Bulletin Print Report
Taxpayers, ("TPs"), filed their 2017 tax return on July 14, 2020, and they requested that their overpayment be carried forward. The request was denied. R.I. Gen. Laws...
Commissions Included In Taxable Gross Receipts
September 29, 2022 - Bulletin Print Report
MetroPCS, ("M"), was a cellular telephone service provider that offered a prepaid cellular telephone service to its customers. APP, an authorized M dealer, operated m...
Transfer Of Investment Assets Always A "Device" Factor
September 29, 2022 - Volume 16 Issue 185 Print Report
P has been engaged in the active conduct of two businesses, Business Q and Business R, throughout the past five years. For bona fide business reasons, P is required t...
The Underlying Document Controls For Sales Tax Purposes
September 29, 2022 - Bulletin Print Report
Taxpayer, a restaurant and hotel located in Virginia, was audited for sales and use tax compliance. During the examination, the auditor concluded that Taxpayer's rental pay...
Retired Employees Can Be Admitted To A "VEBA"
September 29, 2022 - Bulletin Print Report
Taxpayer, ("TP"),was formed in Year 1. TP has periodically received determinations from the Internal Revenue Service that it is a voluntary employees' benef...
Assumption Of Contingent Stock Obligation Approved
September 28, 2022 - Volume 16 Issue 184 Print Report
Pursuant to a plan of reorganization, all of the stock of Y was acquired by X solely in exchange for voting stock of X. Because of the inability of the parties to agr...
BHVN Update
September 28, 2022 - Bulletin Print Report
Biohaven Pharmaceutical Holding Company, Ltd., ("BHNV"), announced that the closing date of the acquisition by Pfizer, Inc. of BHVN, ("the Merger"), is expec...
Cleveland Cannot Tax A Non-Resident Working From Home
September 28, 2022 - Bulletin Print Report
Plaintiff, ("P"), lives in Blue Bell, Pennsylvania, and is employed by A, a biotech company located in Cleveland, Ohio. Prior to the COVID-19 pandemic, P usually ...
Inversion Averted
September 28, 2022 - Bulletin Print Report
Partners and Foreign Founders, all of whom are individuals, together own all of the interests in FP1 and FP2, each treated as a partnership. FP 2 owns certain interests in FP3....
"Buyer's Remorse" Not Sufficient To Create "Standing"
September 28, 2022 - Bulletin Print Report
A donor-advised fund, ("DAF"), is a charitable giving vehicle thatallows donors to take a present-year tax deduction, while distributing the funds to charity at...
Taxpayer Did Not Maintain Permanent Place Of Abode In NYC
September 27, 2022 - Volume 16 Issue 183 Print Report
TP is domiciled in Tennessee. TP and her family are observant orthodox Jews. The community where TP lives is not large enough to sponsor a suitable religious high sch...
Pass-Through Entities Found Liable For Withholding Tax
September 27, 2022 - Bulletin Print Report
LC is a Delaware limited partnership with its principal location in Los Angeles. All of the partners were residents of California, Washington, and Alaska. R is a California gen...
Forgiven PPP Loans Includible In Gross Income
September 27, 2022 - Bulletin Print Report
For both rounds of Paycheck Protection Program, ("PPP"), loans, ("covered loans"), the lender may forgive, and the SBA may guarantee, the full principal amo...
Disabled Veteran Did Not Serve "In Time Of War"
September 27, 2022 - Bulletin Print Report
Plaintiff is the owner of the property at 259 Fairview Avenue, Lawnside, New Jersey, (the "subject property"). Plaintiff was in active service with the United States...
Steel City's "Jock" Tax Is Patently Unconstitutional
September 23, 2022 - Bulletin Print Report
Defendant instituted a "Non-Resident Sports Facility Usage Fee," ("Facility Fee"). Under this program, non-residents of Pittsburgh, ("P"), who use...
Gain From Sale Of Interest In NY Partnership Not NY Source Income
September 23, 2022 - Volume 16 Issue 182 Print Report
Petitioner, (P), is a Georgia limited partnership. The general partner of P is J, a Georgia general partnership. J has a three percent interest in P. On September 27,...
Bookstore's "Memberships" Are Subject To Sales Tax
September 23, 2022 - Bulletin Print Report
Books-A-Million, Inc., ("B"), is a retail bookstore operating thirteen locations throughout South Carolina. Customers of B can become members in the so-called "M...
Carfax Does Not "Manufacture" Vehicle History Reports
September 23, 2022 - Bulletin Print Report
Carfax, Inc., ("C"), is engaged in the business of selling Vehicle History Reports, ("VHRs"), to consumers and dealers. A VHR is a report generated for a sp...
The Willens Deal Survey September 2022
September 22, 2022 - The Deal Survey: September 2022 Print Report
Welcome to this month's summary of deals. Full reports on some of these transactions can be found via the link in the description, or by searching the company name in our database.
I.R.S. Finds Substantiality Test Is Substantially Complied With
September 22, 2022 - Volume 16 Issue 181 Print Report
UST is a domestic corporation. UST is engaged in Business C with significant interests in the U.S., Europe, and Asia. UST has issued and outstanding shares of common stock, as...
Penalties Need Only Be Approved Before They Are "Assessed"
September 22, 2022 - Bulletin Print Report
K failed to report cash transfers from a former business partner. The I.R.S. concluded that the transfers should have been reported as taxable income. On August 6, 2012, the I....
Durable Medical Equipment Found Subject To Sales Tax
September 22, 2022 - Bulletin Print Report
Taxpayer supplies a device/durable good (an anesthesia machine) for all in the medical profession, including healthcare/hospitals and dental offices. This device can be used by...
California Proves Unsympathetic To "Bottom-Dollar" Guaranties
September 22, 2022 - Bulletin Print Report
A partnership liability can, under certain circumstances, be treated as a recourse liability with respect to a partner who has guaranteed said liability. The tantalizingq...
Lottery Winner Cannot Avoid NYS Tax
September 21, 2022 - Volume 16 Issue 180 Print Report
In 1984, P, a resident of New York State, was a Jackpot Winner in the New York State Lotto Game. P was advised by a letter from the Director of the New York State Lottery: &quo...
"Carried Interest" Not Derived From Connecticut Sources
September 21, 2022 - Bulletin Print Report
AG was domiciled in New York State and City during 2014 and 2015. AG received a schedule K-1 as a partner of Hildene Holding Company, ("H")... The K-1 reported ordina...
Claim For Refund Barred By California Statute Of Limitations
September 21, 2022 - Bulletin Print Report
On June 16, 2011, the Social Security Administration determined that APP was disabled. On March 28, 2005, FTB issued a a Notice of Proposed Assessment, ("NPA"), propo...
Section 172(b)(3) Election Is Also Applicable For NYS Tax Purposes
September 21, 2022 - Bulletin Print Report
Petitioner, ("P"), filed a New York resident income tax return for 2007, dated March 10, 2010, reporting tax due in the amount of $19,414.00. P filed a New York resid...
ADT, Inc.'s Redemption Is Part Of A Larger Transaction
September 20, 2022 - Bulletin Print Report
ADT, Inc. is inviting its shareholders, including its controlling shareholder, Apollo Global Management, Inc., to tender shares of its common stock at a price of $9 per share....
Calculating "Repurchase Premium"
September 20, 2022 - Volume 16 Issue 179 Print Report
PR, a C corporation, acquired S3 in Year 1 when the latter's assets were valued at "$c". When S3 was acquired, P became the new holding company, and S3...
Expenses Not Found To Be "Ordinary And Necessary"
September 20, 2022 - Bulletin Print Report
In 2013, 2015, and 2016, H was employed as a sales agent for A, a manufacturer of audio recording equipment and software. In 2017, H was employed as a sales agent for U, a manu...
Expenses To Place Property In Efficient Condition Must Be Depreciated
September 20, 2022 - Bulletin Print Report
Plaintiffs, ("Ps"), purchased a commercial property in Klamath Falls, Oregonin April 2018. Ps intended to renovate the property and then rent the space to fledg...
Retroactive Tax Rate Increase Not Unconstitutional
September 19, 2022 - Volume 16 Issue 178 Print Report
On three separate dates in May, 2004, Mr. Charles DeMuth (CD) sold a total of 110,000 shares of stock ofHudson City Bancorp (HCB) which resulted in a net gain o...
"Reservation Fees" Are Deductible In Months When Gas Is Transported
September 19, 2022 - Bulletin Print Report
WPX produced natural gas from wells in the Powder River Basin. To transport this gas, WPX's affiliate, M, entered into long-term, firm transportation service agreements wit...
Non-Resident Not Required To Make Declaration Of Estimated Tax
September 19, 2022 - Bulletin Print Report
Plaintiff, ("P"), is a non-resident of Oregon. She neither earned wages subject to Oregon withholding nor had any business or trade connected with Oregon. In 2019, P...
"FBA" Merchants Need Not Collect And Remit Sales Tax
September 19, 2022 - Bulletin Print Report
Section 202(a) of the Tax Code, 72 P.S. section 7202(a), imposes a six percent tax "upon each separate sale at retail of tangible personal property or services." Purs...
STOR's Purchasers In Line For A Basis Step-Up
September 16, 2022 - Bulletin Print Report
STORE Capital Corporation, ("STOR"), an internally-managed, "net lease," real estate investment trust, ("REIT"), and GIC, in partnership with with...
Fraud Penalties and Earnings And Profits
September 16, 2022 - Volume 16 Issue 177 Print Report
Rev. Rul. 107, C.B. 1953-1, 178, holds that fraud penalties recommended against a corporation should not be allowed as liabilities for the purpose of determining the amount of...
Careless Investor Did Not Sustain A Theft Loss
September 16, 2022 - Bulletin Print Report
On July 28, 2008, H won a bid and purchased a leasehold interest in certain property, (the "R sublease"), for $6,330,350. H anticipated that the R sublease would enti...
Credit Or Refund Of Overpaid Estimated Taxes Denied
September 16, 2022 - Bulletin Print Report
Plaintiffs, ("Ps"), made 18 estimated payments during the relevant tax years totaling $875,000. Despite making substantial estimated payments during those years, Ps d...
New R&D Capitalization Rules Wreak Havoc On Free Cash Flow
September 15, 2022 - Bulletin Print Report
In the past, a taxpayer was permitted to treat research or experimental expenditures...as expenses "which are not chargeable to capital account." The expense...
Alternative Method Of Basis Recovery Approved
September 15, 2022 - Volume 16 Issue 176 Print Report
TP is a partnership for tax purposes. TP owns 100 percent of the membership interests of CA, a disregarded single member limited liability company. CA owned 100 percent of the...
Closing Agreement Did Not Prohibit Assessment Of Interest
September 15, 2022 - Bulletin Print Report
The parties agreed Plaintiff, ("P"), had a $7,466,599 deficiency for the 2012 tax year, but no deficiencies for years 2010, 2011, and 2013. The parties entered into a...
Extension Of Time To Make A Section 382(l)(5)(G) Election Granted
September 15, 2022 - Bulletin Print Report
Taxpayer is the common parent of an affiliated group of corporations that files consolidated federal income tax returns, (the "Taxpayer Group"). Taxpayer has represen...
Transfer Restrictions Do Not Create A Second Class Of Stock
September 14, 2022 - Volume 16 Issue 175 Print Report
X has two classes of stock outstanding: voting common stock and nonvoting common stock. The nonvoting common stock is held by A, B, C, siblings, and by D, an unrelated individu...
"Must" And "Shall" Are Not Permissive
September 14, 2022 - Bulletin Print Report
W owns a parcel of real estate in PC. The assessor changed the valuation of the property for the 2018 tax year and again for the 2019 tax year, and sent W a notice of the valua...
REIT's Distributions Treated As Made From Earnings And Profits
September 14, 2022 - Bulletin Print Report
Taxpayer, ("TP"),elected to be treated as a real estate investment trust, ("REIT"), under sections 856 through 860 of the Internal RevenueCode....
Apportioning Litigation Revenues
September 14, 2022 - Bulletin Print Report
BPM is a law firm. The present appeal revolves around the apportionment of revenues that BPM received from insurance companies for providing two distinct services: (1) client a...
How Will SPACs Fare Under The New "Repurchase" Tax?
September 13, 2022 - Bulletin Print Report
The Inflation Reduction Act, (the "Act"), recently signed into law by President Biden, introduces into the tax law an excise tax imposed on the act, by a covered corp...
Bonus Depreciation Properly Claimed
September 13, 2022 - Volume 16 Issue 174 Print Report
TP worked full-time as a high school teacher. TP's uncle told him that one Johnson (J) had an agreement to lease vehicles to the federal government, but that J needed inves...
Two Separate Real Property Transfers Found
September 13, 2022 - Bulletin Print Report
A developer, ("PU"), buys commercial property located in New York City, (the "Property"), for a total purchase price of $100 million, (the "Total Consi...
Split-Off "Acquisitions" Are Disregarded For Section 355(e) Purposes
September 13, 2022 - Bulletin Print Report
D is a closely-held corporation that operates Business A. D has made an election to be treated as an 'S' corporation. D has a single class of common stock outstanding....
Royalties Found To Be Self-Employment Income
September 12, 2022 - Volume 16 Issue 173 Print Report
During the years 1931-1966, an individual wrote and had published 28 books for which he has receivedroyalties. The term, self-employment income, means the "...
Lower RPTT Rate Applies To Sale Of Combined Co-Op Units
September 12, 2022 - Bulletin Print Report
New York City property records show that cooperative apartment units were purchased from separate sellers by Taxpayer. Taxpayer states that the two units were physically combin...
Employee's Travel Expenses Not Allowed As A Deduction
September 12, 2022 - Bulletin Print Report
P has over 30 years of experience working for, or being associated with, non-profit organizations. P served as the executive director of CHJ. CHJ provided educational services...
Appreciation Interest Ruled Deductible
September 12, 2022 - Bulletin Print Report
On August 31, 2006, B organized WTS, a limited liability company, in order to purchase and operate a parcel of commercial real property, (the "Rp"). D purchased an in...
Acquisition Indebtedness
September 9, 2022 - Volume 16 Issue 172 Print Report
F is exempt from tax under Sec. 501(c)(3) of the Internal Revenue Code and is a private foundation under Sec. 509(a). F has n...
Replacement Income Has The Same Character As What It Is Replacing
September 9, 2022 - Bulletin Print Report
Taxpayers own and operate a shrimp boat in the Gulf of Mexico. Taxpayers were residents of Florida. The percentage of shrimp caught by Taxpayer which were sold in Alabama over...
PTC Not Available For "COBRA" Months
September 9, 2022 - Bulletin Print Report
After his employment was terminated in 2015, S purchased "COBRA" continuation health insurance coverage through his former employer. Ps maintained their COBRA coverag...
Social Security Benefits Replacing Disability Benefits Are Taxable
September 9, 2022 - Bulletin Print Report
In 2019, the Commissioner of Internal Revenue determined that M had under-reported her Social Security income on her 2016 Federal income tax return. The Commissioner issued her...
Constellation Brands Revises Its "Reclassification" Agreement
September 8, 2022 - Bulletin Print Report
Constellation Brands, ("STZ" or the "Company"), has two classes of common stock outstanding, Class A common stock and Class B common stock. The classes are...
Outbound Spin-Off
September 8, 2022 - Volume 16 Issue 171 Print Report
FP operates Global Business, which includes Business X and Business Y. FP owns all of the stock of D, a domestic corporation incorporated in State A that was formed o...
Foreign Worker's "Tax Home" Was Not Iraq
September 8, 2022 - Bulletin Print Report
P was offered a position in Iraq with T. That employment lasted from May 23, 2014, until August 21, 2015, when he left Iraq to begin working in Egypt. While P was in Iraq, his...
Donation Of Appreciated Property Goes Terribly Awry
September 8, 2022 - Bulletin Print Report
In 2015, Burbank was a limited partnership existing for the purpose of owning and operating a single hotel property, (the "Hotel"). K was a limited partner in Burbank...
How To Apportion E&P To Distributions
September 7, 2022 - Volume 16 Issue 170 Print Report
M files its income tax return on the basis of a calendar year. On July 1, 1973, M redeemed for cash 25 percent of its outstanding common stock in a transaction that q...
Settlement Payments Did Not Compensate For Physical Injuries
September 7, 2022 - Bulletin Print Report
P worked for PFIas a sales representative. P was hospitalized for acute gastrointestinal bleeding, ("AGB"), and a resulting heart attack