Recent Legislation Gives Taxpayers Greater Access to District Court in Challenging the Texas Comptroller's Denial of a Refund Claim or Assessment of Tax... [ read ]
Among the various bills that became law in the 87th Texas Legislature of 2021 are two amendments to the Texas Tax Code that will significantly impact the procedures available for challenging the denial of tax refund claims and assessments by the Texas Comptroller of Public Accounts in district court. Both of these bills (SB 903 and HB 2080) are intended to make district court more accessible to taxpayers.
Because 130 Years Isn't Long Enough... [ read ]
Under Texas law, a non-charitable trust may not last forever. Historically, a Texas trust was required to vest, "not later than 21 years after some life in being at t he time of creation of the interest, plus a period of gestation".
Will Claiming a Carryback Open a Prior Year to Audit?... [ read ]
The CARES Act resurrected the carryback of net operating losses (NOL) for 2018, 2019, and 2020. An individual taxpayer has a choice in how they request a refund for a carryback NOL, and the statute of limitations applies differently depending on which alternative they choose.
More Clouds on the Horizon for Micro Captives and Syndicated Conservation Easements, as the IRS unveils the Newly-Established Office of Promoter... [ read ]
Yesterday, the Internal Revenue Service announced the establishment of the IRS Office of Promoter Investigations. The new office will further expand on the efforts of the Promoter Investigations Coordinator that began last summer and will continue to focus on micro captives and syndicated conservation easements.
Texans, You (Probably) Didn't Miss Your 2020 Federal Tax Return Filing Deadline; Here's What You Need to Know... [ read ]
As mentioned in a prior blog post, 2020 tax year federal tax filing deadlines for Texans were postponed. As a result of the February 2021 winter storm that wreaked havoc on Texas, the IRS announced in late February that victims of the storm would have until June 15, 2021 to file various federal tax returns, and make relevant payments. Pursuant to IRS guidance, affected taxpayers include individual and business residents of all 254 counties in Texas.
IRS Attempts to Use its latest Judicial Win to Scare Micro-Captive Participants into Submission... [ read ]
On the heels of its fourth judicial win in Tax Court, today the IRS urged participants in allegedly abusive micro-captive insurance arrangements to exit these transactions as soon as possible. For many taxpayers, this approach is akin to throwing the baby out with the bathwater, as contrary to the IRS' belief, not every micro-captive arrangement is abusive.
Missteps in Filing a Tax Return Come Back to Haunt the Taxpayer and Her Representative... [ read ]
In prior blog posts, I discussed the mailbox rule and filing tax returns with the IRS. A recent case in Michigan reiterates the lesson discussed in that blog post about always using certified or registered mail if a tax return is mailed to the IRS. In addition, the Michigan case confirms that a taxpayer should always file a tax return in the manner described by the Internal Revenue Code and regulations, and not file it with an IRS representative not authorized to receive a return.
UNCLE SAM WANTS TO KNOW: WHO ARE YOUR OWNERS? (UPDATED 3-4-21)... [ read ]
The 2021 year has brought many new developments, including, and most importantly, a new federal law that will require small, privately-owned companies to report their ultimate individual owners to the federal government. This new law, which was enacted on January 1, 2021, is known as the Corporate Transparency Act ("CTA").
TEXAS TAXPAYERS GET A TAX FILING AND PAYMENT BREAK... [ read ]
The Internal Revenue Service has just announced (IR 2021-43) that taxpayers living in Texas are given an extension until June 15, 2021, to file their 2020 tax returns. The extension also applies to tax payments due between February 11 and June 15, 2021.
Another Tax Court case involving the Danielson Rule and this Time the Taxpayer Wins... [ read ]
In a prior blog post, I discussed a Tax Court memorandum opinion in Watts v. Comm'r, 2020-144, in which the Tax Court cited to the Danielson rule in holding for the IRS. The last line of that blog post reads, "The lesson from Watts and Danielson is that a taxpayer who attempts to disavow the tax consequences of an arm's length agreement will face a significant uphill battle." Well, only a few months later, the taxpayer in another Tax Court memorandum opinion, Complex Media Inc. v. Commissioner, T.C. Memo 2021-14, prevailed in that uphill battle and convinced the Tax Court that the taxpayer could disavow and recharacterize the form of a transaction.