Category Archives: Tax Court

Time Running Out on the Miccosukee Tribe’s Battle with the IRS

Posted on November 4, 2015 by Russ

I have sympathy when taxpayers battle the IRS over legitimate issues. Indeed, I’m all for fighting the IRS when they’re (imho) wrong. However, fighting quixotic battles when you are wrong isn’t a good idea. The Miccosukee Tribe in Florida is … Continue reading →

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Up In Smoke, Again

Posted on October 22, 2015 by Russ

A California non-profit corporation tried to find a way around Section 280E of the Tax Code at Tax Court. Would they be successful or would yet another marijuana business fall victim to the difference between federal and state law? In … Continue reading →

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Up In Smoke…Again

Posted on August 10, 2015 by Russ

Another medical marijuana dispensary owner found himself at Tax Court today. And another marijuana dispensary owner isn’t happy with the results, though in this case much of the damage was self-inflicted. Jason Beck owned two medical marijuana dispensaries in California … Continue reading →

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Where There’s Smoke…

Posted on July 12, 2015 by Russ

Martin Olive operates “The Vapor Room,” a medical marijuana dispensary in San Francisco. His business, a sole proprietorship, was audited by the IRS for 2004 and 2005. He lost. He took that case to Tax Court. Back in August 2012 … Continue reading →

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The Operation Was a Success, but the Patient Died

Posted on July 7, 2015 by Russ

No, I’m not veering into medicine today. The title of this post is a homage to the title of a chapter in a book by the late Fred Karpin. Mr. Karpin was writing about doing everything right, but still having … Continue reading →

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Voluntary Human Egg Retrieval and Damages

Posted on January 22, 2015 by Russ

A very interesting full decision of the Tax Court was released today in Perez v. Commissioner. The issue was whether a woman who had eggs retrieved from her body after undergoing fertility treatments in exchange for compensation could exclude the … Continue reading →

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The Second Time Wasn’t the Charm

Posted on January 12, 2015 by Russ

There’s a cliche I like, “If you don’t succeed, try, try again.” In the Bozo world things work a bit differently; for them it should be, “If you don’t succeed, stop!” Today, the Tax Court looked at Joseph Banister, an … Continue reading →

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The Tax Court Looks for $1,410 in Dividends

Posted on January 7, 2015 by Russ

Today I generated my first 1099s for clients. The Tax Court looked at a case where the petitioners said they didn’t receive three $470 dividends. The issuer said they sent the checks and a Form 1099-DIV. Who was right? In … Continue reading →

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Math Is Hard (Tax Court Edition)

Posted on November 3, 2014 by Russ

One of my favorite sayings at the poker table is, “Math is hard.” Yesterday, the Tax Court explained some basic math to a petitioner who almost completely struck out. Eugene Kernan didn’t file tax returns since sometime before 2000. Eventually … Continue reading →

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A Passive Activity Case Goes to the Taxpayers

Posted on August 20, 2014 by Russ

We’re going to see a lot more IRS activity regarding “passive” activities in the coming years. The Affordable Care Act (aka ObamaCare) added a new Net Investment Tax that impacts passive activities. Many taxpayers will be attempting to state activities … Continue reading →

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