Category Archives: Supreme Court

The Supreme Court Takes Up a Wealth Tax; You May Need to File a Protective Claim for Refund

Posted on June 26, 2023 by Russ

At the end of 2017, Congress passed the Tax Cuts and Jobs Act (TCJA).  This complex measure added some deductions (such as the Deduction for Qualified Business Income), added restrictions on other deductions (such as the $10,000 limit on taxes … Continue reading →

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FBAR Non-Willful Penalty Is Per Report, Not Per Account

Posted on February 28, 2023 by Russ

Let’s assume you have a non-willful violation of filing the FBAR (Form 114, the Report of Foreign Bank and Financial Accounts).  Is the maximum penalty ($10,000) per account or per report?  The Circuit Courts of Appeal had split on this … Continue reading →

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Is It One Penalty of $10,000 or Multiple Penalties of $10,000?

Posted on June 21, 2022 by Russ

Suppose you are a resident of a foreign country–say, Romania–and you have foreign financial accounts.  You need to file the FBAR (Report of Foreign Bank and Financial Accounts) to tell the Financial Crimes Enforcement Network (FINCEN) what foreign accounts you … Continue reading →

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California 7, Arizona 2

Posted on February 27, 2020 by Russ

The state of Arizona (specifically, Arizona Attorney General Mark Brnovich) is not happy with California’s policy of coming after any Arizona business that is even remotely doing business in California (passive or not) to collect the $800 minimum California franchise … Continue reading →

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An Update on Arizona v. California

Posted on December 23, 2019 by Russ

There’s been some news on Arizona’s attempt to stop California from requiring indirect passive owners of LLCs who happen to own other LLCs that invest in California from having to pay California’s $800 minimum franchise tax. When we last looked … Continue reading →

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Arizona v. California Update

Posted on June 24, 2019 by Russ

The State of Arizona has asked the US Supreme Court to stop California’s illegal (in Arizona’s view) scheme of requiring indirect passive owners of LLCs who happen to own other LLCs that invest in California from paying California’s minimum $800 … Continue reading →

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Arizona Asks Supreme Court to Stop California From Imposing California Tax on Passive LLC Investments

Posted on March 12, 2019 by Russ

We’ve highlighted this issue before. Suppose you are an Arizona resident, and you form Primary LLC in Arizona. Its main purpose is owning a warehouse in Phoenix. But you have some extra money in the LLC, so you invest in … Continue reading →

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Gilbert Hyatt and the Franchise Tax Board Head Back to the Supreme Court…Again

Posted on January 6, 2019 by Russ

Back in 1993 (that is not a typographical error), California’s Franchise Tax Board (FTB) initiated a residency audit of Gilbert Hyatt. Mr. Hyatt invented some technology relating to microprocessors in 1990. In 1991 he realized he was going to receive … Continue reading →

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Mr. Hyatt Goes to Washington…Again

Posted on June 30, 2015 by Russ

The saga of Gilbert Hyatt and the Franchise Tax Board, California’s income tax agency, continues. As you may remember, the Nevada Supreme Court ruled last September that the FTB committed fraud against Mr. Hyatt (false representation and intentional infliction of … Continue reading →

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The Real Impact of the Wynne Decision

Posted on May 19, 2015 by Russ

Yesterday’s decision in Comptroller of the Treasury of Maryland v Wynne Et Ux generated some reporting in print media. Yet much of what I saw was incorrect in part or in whole. New York does give full tax credits for … Continue reading →

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