Access Leading Tax Experts And Technology
In Our Global Digital Marketplace

Please enter your input in search

Email Contact Us

Tag Archive for US Tax Court

Tax Court In Brief: What Happened When Tax Return Preparer Assisted Clients In Creating New Entity As S Corporation

Tax Court In Brief: What Happened When Tax Return Preparer Assisted Clients In Creating New Entity As S Corporation

Bailey v. Commissioner, T.C. Memo. 2021-55 | May 10, 2021, | Pugh, J. | Dkt. No. 5477-14

Short Summary

Mr. Bailey working as an unenrolled tax return preparer assisted clients (Uwe Zink and Gary Skuro) in creating a new entity, Interradiology, Inc. (Interradiology) organized under the laws of Arizona and elected to be treated as an S corporation for Federal tax purposes in 2017. Therefore, Mr. Bailey prepared and filed Forms 1120S, U.S. Income Tax Return for an S Corporation, for Interradiology for tax years 2007 through 2012. Also, he held 10% of the shares of Interradiology during the tax year 2008 and 20% during tax years 2009 through 2012.

Mr. Bailey prepared and filed petitioners’ Forms 1040, U.S. Individual Income Tax Return, for the years in issue. He timely filed their 2008 and 2012 Forms 1040, but he untimely filed their 2009, 2010, and 2011 Forms 1040 on March 9, 2011, November 29, 2011, and February 19, 2013, respectively. The 2010 and 2011 returns both reported tax due, which the IRS assessed before the issuance of the notices of deficiency for those years.

Read more

Tax Court Decision Gives Whistleblowers Additional Reward

In what is being hailed as a landmark decision, the U.S. Tax Court recently sided with a pair of whistleblowers who provided information that assisted the U.S. government in a high-stakes tax evasion investigation. The decision allowed the whistleblowers for the first time to collect a percentage of the taxpayer’s criminal penalties and civil forfeitures, in addition to the unpaid taxes recovered by the IRS.

Read more

§ 165(e) Loss Claimed On Theft of Money/Investment

I am pleased to announce another successful settlement for a client.

IRS denied a big deduction based on a Ponzi type investment stating the taxpayer had claimed the deduction in the wrong year. It must be the year it came to his attention and only up to the amount lost especially if there is a chance to recover some in the future.

The matter was set to go to trial in Miami, but I reached agreement he would deduct 80% in the year the loss was claimed and 20% in the year in which there was certainty he had lost everything. That year is still open to claim the 20%. Protective filings were made by his accountant.

The turning point was making clear the evidence we would present to back-up the client’s claim. This convinced the Read more

What Is A US Tax Court Practitioner?

Recently I had a discussion with an individual about US Tax Court Practitioners in order to learn about this designation. What I discovered was this category of Court Practitioner was created to allow special dispensation to Non-US Lawyers (such as Enrolled Agents, CPAs and International Tax Attorneys) to gain access to the US Tax Court to represent taxpayers. As a member of the US Tax Court, US Tax Court Practitioners have the ability to litigate matters before the US Tax Court on behalf of their taxpayer clients. In order to qualify as a US Tax Court Practitioner you must pass a very difficult US Tax Court Bar Exam set by the Judges of the US Tax Court which takes place once every second year. What is not generally known is that since its inception in 1942, less than 300 US Tax Court Practitioners have ever passed and qualified to be admitted as a US Tax Court Read more

Timely Filed Petition? Miami Tax Court

Miami Tax Court Report Back

Judge Ronald L. Buch – timely filed petition?

IRS filed a motion to dismiss for lack of jurisdiction. The USPS click and ship process was used by a representative of the taxpayer. She printed the label with payment from the USPS site at 11:48 pm. Petition had to be timely filed by 12 – 12 minutes later. IRS averred that it was impossible for her to print, stick and deliver the petition to the USPS in Jupiter, FL within 12 minutes as the petitioner’s address was about 20 minutes from the USPS. What IRS did not know, as testified, was that the petitioner had moved, and lived 3 minutes from the USPS. This evidence was led in court. So it was possible to timely mail Read more