U.S. District Court Decision for the Week – You be the Judge

A recent U.S. District Court Court decision was reported that may be of interest to individuals potentially dealing with tax litigation. J. Frank Best, Certified Public Accountant and United States Tax Court Practitioner, works to stay current on all IRS decisions concerning tax litigation to ensure we are fully informed and prepared for our clients.

A U.S. District Court refused to grant the government summary judgment for trust fund recovery penalties assessed against the owner and president of companies that failed to pay over their withholding and employment taxes, finding that based on the facts of the case a reasonable jury might conclude that he wasn’t liable for the penalties.

TIMOTHY J. HUDAK, ET UX.
Plaintiffs,
v.
THE UNITED STATES OF AMERICA
Defendant.

Fourth Circuit Court Decision for the Week – You be the Judge

A recent Fourth Circuit Court decision was reported that may be of interest to individuals potentially dealing with tax litigation. J. Frank Best, Certified Public Accountant and United States Tax Court Practitioner, works to stay current on all IRS decisions concerning tax litigation to ensure we are fully informed and prepared for our clients.

The Fourth Circuit affirmed the sentence an individual received after pleading guilty to tax evasion under a plea agreement, finding that there was no procedural or substantive error by the district court in sentencing him to 30 months in prison.

PUBLISHED

UNITED STATES COURT OF APPEALS
FOR THE FOURTH CIRCUIT

Appeal from the United States District Court for
the District of Maryland, at Baltimore.
Benson Everett Legg, Senior District Judge.
(1:10-cr-00780-BEL-1)

United States Tax Court Decision for the Week – You be the Judge

A recent Tax Court decision was reported that may be of interest to individuals potentially dealing with tax litigation. J. Frank Best, Certified Public Accountant and United States Tax Court Practitioner, works to stay current on all IRS decisions concerning tax litigation to ensure we are fully informed and prepared for our clients.

The Tax Court, sustaining late-filing and accuracy-related penalties, held that an individual wasn’t a real estate professional and losses from his rental activity were subject to the passive activity limitations of section 469, finding that he failed to show that he spent more time on his rental activity than on other income-producing activities.

GUILLERMO MERINO, JR., AND LISA MERINO,
Petitioners
v.
COMMISSIONER OF INTERNAL REVENUE,
Respondent

 

United States Tax Court Decision for the Week – You be the Judge

A recent Tax Court decision was reported that may be of interest to individuals potentially dealing with tax litigation. J. Frank Best, Certified Public Accountant and United States Tax Court Practitioner, works to stay current on all IRS decisions concerning tax litigation to ensure we are fully informed and prepared for our clients.

The Tax Court held that an individual wasn’t entitled to deduct as alimony a lump sum payment to his former wife made under a mediation agreement, finding that under Florida contract law the obligation to make the payment would not have terminated on either party’s death and therefore did not meet the requirement of section 71(b)(1)(D).

JOHN D. NYE AND ROSE M. NYE,
Petitioners
v.
COMMISSIONER OF INTERNAL REVENUE,
Respondent