Category Archives: Tax Court

The AMT Is Unfair, But You Still Have to Pay It

Posted on September 12, 2006 by Russ

Like clockwork, about once a month someone challenges in Tax Court the Alternative Minimum Tax. It’s unfair, it’s too complex, it’s just plain old mean…those are just some of the arguments used against the AMT. There’s jut one problem: The … Continue reading →

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The Early Bird Doesn’t Always Catch the Worm

Posted on August 28, 2006 by Russ

A fascinating case came out of the Tax Court today. Being late when you file a challenge is never a good idea; in almost all cases, your filing can be thrown out. But what happens if you file too early? … Continue reading →

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I Can Lower Your Taxes By Magic!

Posted on July 31, 2006 by Russ

I can’t, but Joe Kristan of Roth Tax Updates has the story of yet another interesting case from the Tax Court today. If your business is grossing $2.5 million to $3 million each year, and you’re paying about $45,000 in … Continue reading →

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In God We Trust, But You Better Pay Up

Posted on July 31, 2006 by Russ

A few years ago, there were two Tax Court cases resolved by closing agreements (a closing agreement is a settlement agreement of the case): God’s Helping Hands Living Estate Plan Trust, John M. & Thelma Smoll, Trustees v. Commissioner, docket … Continue reading →

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But The IRS Told Me It Wasn’t Taxable…

Posted on July 31, 2006 by Russ

Assume that you’re going on permanent disability. You and your employer reach an agreement, with payments structured as though they were from workers compensation (nontaxable to the recipient). Suddenly, your employer backs out and threatens litigation—litigation that would likely take … Continue reading →

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It’s Unfair, but Tough

Posted on June 27, 2006 by Russ

Today the Tax Court decided two cases where the Court basically said, you’re right, the law is unfair, but tough—you have to obey it. The first case involves a gambler who wanted to net her wins and losses. If you’re … Continue reading →

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Washington 3, Indians 0

Posted on June 13, 2006 by Russ

The Tax Court today looked at three cases where Native Americans claimed that they did not owe income tax because they’re Native Americans. Section 1 of the Tax Code states that all income is taxable. As the Court noted, “Native … Continue reading →

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Alchemists Rejoice!

Posted on May 8, 2006 by Russ

Today the Tax Court looked at a §1031 Exchange case. The question before the court was whether a partnership (Peabody) could exchange gold mines for coal mines. The problem: the coal mines were encumbered with supply contracts that sent the … Continue reading →

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The 2% Solution

Posted on May 1, 2006 by Russ

Today the Tax Court looked at an ambiguous section of the Tax Code. Suppose an S Corporation is owed a refund, with interest. What interest rate should be used? The general “corporate overpayment” rate, the “large corporation” overpayment rate, or … Continue reading →

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The Tax Court Believes the AMT Is Unfair, But You Still Have to Pay It

Posted on April 26, 2006 by Russ

Is the Alternative Minimum Tax Unfair? Of course it is. But do you have to pay it? Certainly. And that’s the crux of today’s Tax Court case. Our unlucky petitioners earned quite a bit of money, reporting wage income of … Continue reading →

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