Case — The All-Events Test

TL Case Summ

THE QUESTION: When can a taxpayer take a deduction for a customer loyalty program?

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Definition — Fines and Penalties

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Internal revenue code section 162 starts out with a general rule of allowing a deduction for all the ordinary and necessary expenses paid or incurred during the taxable year in carrying on any trade or business.

But when the business expenses are fines and penalties paid to a government for the violation of any law, the general rule no longer applies. Those expenses are not deductible (section 162(f)).

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Decisions — Points of Interest

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This week’s published cases included discussions about the deductibility of mortgage interest and points.

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Decisions — The Case of the Missing Clue

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When you think about the statute of limitations, three years is probably what comes to mind. That’s the standard time limit for the IRS to assess and collect a deficiency after you file a return.

But the US tax code contains more than one statute of limitations, as well as related exceptions and extensions.

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Case — Independent Contractor or Employee?

TL Case Summ

THE QUESTION: Is a lawyer’s wife his employee or an independent contractor?

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Decisions — Time

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Since this Saturday is the longest day of the year in the northern hemisphere, it seemed appropriate that time played a role in three of this week’s tax court decisions.

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Definition — Erroneous Refunds

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What can the IRS do to collect when a refund is issued by mistake? The answer depends on whether the erroneous refund is a “rebate” refund or a “nonrebate” refund.

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Case — Taxability of IRA Withdrawal

TL Case Summ
THE QUESTION: Is the purchase of real property with IRA funds a taxable event?

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Decisions — Rings and Liens

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What’s the value of a 1993 NBA championship ring? And why does the IRS want to know?

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Decisions — Shams and Frauds

Image source: Thomas Rowlandson "Evading the Toll" [Public domain or Public domain], via Wikimedia Commons

In between the question of the interplay between the exclusion of gain on the sale of a home and the recognition of deferred gain from an installment sale gone south (DeBough, 142 T.C. No. 17), determining when a passive investment was disposed of so suspended losses can be deducted (Herwig, T.C. Memo. 2014-95), and three whistleblowers seeking anonymity while trying to get the IRS to pay up, this week’s tax court releases included two requests for partial summary judgment.

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Useful Tax Law Links

US Tax Code- Cornell University Law School Legal Information Institute. Searchable. - Office of the Law Revision Counsel. Searchable. Downloadable.

US Tax Court - TC Opinions, Memorandum Opinions, Summary Opinions. Searchable. Downloadable.

Treasury Regulations - Government Printing Office provides the Federal Tax Regulations. Searchable. Downloadable.

Other Official US Tax Guidance - US Internal Revenue Service. Searchable. Downloadable.

Useful Downloads by Taxing Lessons

Foreign Earned Income Exclusion - free PDF - Graphic of Internal Revenue Code Section 911

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