The court granted the IRS’s motion because the petition was untimely and denied the taxpayer’s contending that the Service’s deficiency notices were invalid.
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Appeals & Tax Court Petitions
‘Garden variety’ mistake does not give rise to equitable tolling
Although the deadline for filing a challenge to an IRS employment status determination is nonjurisdictional, an employer’s facts did not warrant equitable tolling, the Tax Court held.
Handwritten signature not needed on electronically generated petition
A handwritten signature was not required on a petition filed with the Tax Court that was created on the court’s online petition generator.
Taxpayer denied theft loss deduction for investment loss
The Tax Court focused on the taxpayer’s role as president and managing director of the company in which he invested, along with his failure to prove a theft occurred.
Tax Court again holds Sec. 6038(b)(1) penalties not assessable
Reconsidering its earlier holding in the case, the court again held the IRS lacks statutory authority to assess the penalties for failing to file information returns disclosing ownership in foreign corporations.
Final regs. address resolution of federal tax controversies by Appeals
The final regulations, which include 24 exceptions to consideration of federal tax controversies by the Independent Office of Appeals, generally follow the proposed regulations issued in October 2022.
IRS testing changes to alternative dispute resolution programs
New pilot programs involve fast-track settlements and post-appeals mediation.
No Collection Due Process hearing for FBAR penalties
A hearing is available only for taxes imposed by Title 26, the Internal Revenue Code, as opposed to the taxpayers’ foreign bank account reporting penalties under U.S. Code Title 31, the Tax Court held.
Abdo could provide relief for other missed deadlines
The Tax Court’s decision invalidating regulations under Sec. 7508A creates uncertainty regarding IRS deadlines affected by disaster declarations.
Deficiency notice invalid because IRS cannot prove last known address
The Tax Court held the Service did not show it followed its regulations and procedures to update a taxpayer’s address to which it sent the notice.
D.C. Circuit holds IRS can assess Sec. 6038(b) penalties
Reversing the Tax Court, the appellate court held the statute gives the IRS authority to assess the penalties for failing to file information returns disclosing ownership in foreign corporations.
Petition timely filed as regulations held invalid
Regulations governing the time for filing a Tax Court petition during a federally declared disaster are invalid, and the taxpayers met Sec. 7508A(d)’s mandatory postponement provision, the court holds.
Amendment to Sec. 6501 not retroactive
Because his tax year preceded the effective date of a special limitation period that was not retroactive, a taxpayer could be assessed excise taxes on $25 million in excessive IRA contributions, the Tax Court held.
Workers’ compensation offset includible in Social Security benefits
Benefits not disbursed but treated under the Sec. 86(d)(3) offset as having been received were includible in a couple’s gross income, the Tax Court held.
Tax Court allows hearsay evidence that was part of administrative record
In its review of the IRS’s denial of a request for innocent-spouse relief, the court determines it can consider hearsay evidence that was included in the Service’s administrative record.
Pond muddies the waters of the mailbox rule
A Fourth Circuit decision seeks a middle ground between Sec. 7502 and common law rules to prove timely mailing of tax returns, refund claims, and other filings.
Taxpayers timely filed petition by last date specified in notice
Although mailed after the 90-day deadline had expired, the petition was timely because it was filed within a 14-day extension provided under Sec. 7451(b)(1).
Penalties against LLC approved by IRS supervisor, Tax Court holds
In Salacoa Stone Quarry, LLC, the Tax Court held that penalties for misstatement of a charitable conservation easement’s value were properly approved by an IRS supervisor, despite a discrepancy in dates on the penalty approval documents.
Sec. 6700 penalty based on income from entire tax-avoidance scheme
Large Sec. 6700 penalty against promoter of a tax-avoidance scheme for a false statement is affirmed on appeal.
IRS sanctioned in penalty case
Tax Court approves monetary sanctions against IRS after new evidence shows that the Service had misled the court regarding written supervisory approval of a penalty.
employee benefits & pensions
Profits interests: The most tax-efficient equity grant to employees
By granting them a profits interest, entities taxed as partnerships can reward employees with equity. Mistakes, however, could cause challenges from taxing authorities.
