Top 5 Tax Controversy CPA Profiles

J. Frank Best a Tax Controversy CPA with locations in Raleigh & Wilmington, NC  and North Myrtle Beach & Myrtle Beach, SC is rated in the Top 5 Tax Controversy CPA Profiles/Linkedin and as a United States Tax Court Litigator licensed in all States works to stay current on all IRS decisions concerning tax litigation to ensure we are fully informed and prepared for our clients.

PRACTICE AREAS-ALL STATES

TAX LITIGATION
AUDITS
APPEALS & HEARINGS
COLLECTION
NON-FILERS AND DELINQUENT
CIVIL FRAUD
CRIMINAL FRAUD-KOVEL

800.230.7090
email: bestcpa@bestirscpa.com
web: bestirscpa.com

LICENSED CPA: NC (14839) & SC (2505)
U.S. TAX COURT LITIGATOR: ALL STATES (BJ2034)
PRACTICE BEFORE THE IRS: ALL STATES

North Myrtle Beach, SC Tax Controversy CPA

J. Frank Best a North Myrtle Beach, SC Tax Controversy CPA  with locations in North Myrtle Beach & Myrtle Beach, SC and Wilmington & Raleigh, NC is rated in the Top 5 Tax Controversy CPA Profiles/Linkedin and as a United States Tax Court Litigator licensed in all States works to stay current on all IRS decisions concerning tax litigation to ensure we are fully informed and prepared for our clients.

Telephone 800.230.7090   Email: bestcpa@bestirscpa.com  Web: bestirscpa.com

No Tax Court Jurisdiction Over Employment Tax Liability

A recent Tax Court decision was reported dealing with Tax Court Jurisdiction. J. Frank Best, Tax Controversy CPA/U. S. Tax Court Litigator with locations in Raleigh and Wilmington, NC  & North Myrtle Beach and Myrtle Beach, SC works to stay current on all IRS decisions concerning tax litigation to ensure we are fully informed and prepared for clients

No jurisdiction was determined by the Eighth Circuit and the Eight Circuit affirmed the dismissal of an S corporation’s Tax Court petition challenging an IRS determination that the compensation paid to the sole owner and officer of the S corporation was unreasonable. The Eighth Circuit found that there was no actual controversy under Code Sec. 7436 as to the determination of the S corporation shareholder’s employment status for Federal Insurance Contribution Act (FICA) tax purposes and thus Code Sec. 7436 did not come into play. Azarian v. Comm’r, 2018 PTC 229 (8th Cir. 2018).

Under Code Sec. 7436(a)(1), the Tax Court has jurisdiction over a petition if there is an actual controversy involving a determination that an individual performing services is an employee for FICA tax purposes. Thus, the issue was whether there was an actual controversy involving a determination that Azarian was an employee for FICA tax purposes.

The Eighth Circuit affirmed the Tax Court’s dismissal for lack of jurisdiction. The Eighth Circuit found that even if there was an actual controversy, it did not involve a determination that Azarian was an employee for FICA tax purposes as required under Code Sec. 7436(a)(1). The court determined that by reporting wages to Azarian each year, the S corporation claimed Azarian was an employee, so the IRS did not make a determination on that issue. Instead, the IRS relied on the S corporation’s classification.

Improvements to Rental Home/Contact Best Tax Controversy CPA/U.S. Tax Court Litigator

A recent Tax Court decision was reported dealing with Improvement to Rental Home.   J. Frank Best, Tax Controversy CPA/U. S. Tax Court Litigator with locations in Raleigh and Wilmington, NC  & North Myrtle Beach and Myrtle Beach, SC works to stay current on all IRS decisions concerning tax litigation to ensure we are fully informed and prepared for clients

Couple Can’t Deduct Cost of Improvements to Home Allegedly Rented to Relatives: In Perry v. Comm’r, T.C. Memo. 2018-90, the Tax Court held that a couple did not establish that they rented their second home to relatives and that, even if the court were to find that the couple did in fact rent the house to their relatives, the couple failed to carry their burden of establishing improvements to rental that they rented such home at fair rental value. Thus, the court denied the couple’s deduction for improvements made to that home.

Settlement Proceeds Taxable: Tax Controversy CPA/U. S. Tax Court Litigator

A recent Tax Court decision was reported dealing with Settlement Proceeds.  J. Frank Best, Tax Controversy CPA/U. S. Tax Court Litigator with locations in Raleigh and Wilmington, NC  & North Myrtle Beach and Myrtle Beach, SC works to stay current on all IRS decisions concerning tax litigation to ensure we are fully informed and prepared for clients.

Discrimination and Hostile Work Environment Settlement Is Taxable: In Zinger v. Comm’r, T.C. Summary 2018-33, the Tax Court held that the $20,000 from Settlement Proceeds received by the taxpayer was not excludable from income under Code Sec. 104(a)(2). The court concluded that the settlement payment was for the resolution and withdrawal of the taxpayer’s discrimination and hostile work environment claims and not on account of personal physical injuries or physical sickness.

IRS Disallows Dependents. Can We Assist You? Raleigh, Wilmington-N. Myrtle Beach, Myrtle Beach

A recent Tax Court decision was reported dealing with Dependents.  J. Frank Best, Tax Controversy CPA/U. S. Tax Court Litigator with locations in Raleigh and Wilmington, NC  & North Myrtle Beach and Myrtle Beach, SC works to stay current on all IRS decisions concerning tax litigation to ensure we are fully informed and prepared for our clients.

Parents Who Lost Custody of Children Could Not Claim Them as Dependents or Take Child Tax Credit or EITC

The Tax Court held that the biological parents of two dependent children who were adopted by, resided with and received primary financial support from their maternal aunt during the entire year at issue were not entitled to claim the children as dependents and, as a result, could not take the child tax credit or the earned income credit. The Tax Court reasoned that, although the children visited with their parents when not in school, the children did not share a principal place of abode with their parents, making the parents ineligible to claim the children as dependents or take the credits. Jusino v. Comm’r, T.C. Memo 2018-112.

Restitution Payment- J. Frank Best, Tax Controversy CPA/U.S. Tax Court Litigator

Restitution Payments

A recent Tax Court decision was reported dealing with Restitution Payments as Part of a Criminal Sentence.  J.  Frank Best, Tax Controversy CPA/U. S. Tax Court Litigator in Raleigh and Wilmington, NC  & North Myrtle Beach and Myrtle Beach, SC 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 a taxpayer was not entitled to a miscellaneous itemized deduction for a $400,000 restitution payment made in 2014. The court concluded that (1) the taxpayer did not show that the restitution payment promoted or protected his trade or business of being an employee; (2) the taxpayer did not present any evidence that the primary purpose or motive for the payment was other than that he was required to make the payment as part of a criminal sentence; and (3) the taxpayer did not enter into the restitution transaction with the intention of making a profit. Washburn v. Comm’r, T.C. Memo. 2018-110.

Conclusion

The Tax Court held that Washburn could not deduct the restitution payments as a miscellaneous itemized deduction in 2014. The court began by noting that the restitution payments would be deductible as a miscellaneous itemized deduction if they constituted expenses attributable to the performance of services as an employee under Code Sec. 162(a), losses related to the performance of services as an employee under Code Sec. 165(c)(1), or losses incurred in a transaction entered into for profit under Code Sec. 165(c)(2).

“Serious IRS Problem Resolution”/J. Frank Best, Tax Controversy CPA/U. S. Tax Court Litigator

Serious IRS Problem Resolutions

J. Frank Best is rated in the Top 5 Tax Controversy CPA Profiles/Linkedin and is a United States Tax Court Litigator licensed in all States and works to stay current on all IRS decisions concerning tax litigation to ensure we are fully informed and prepared for our clients.

Telephone 800.230.7090   Email: bestcpa@bestirscpa.com  Web: bestirscpa.com

IRS Frivolous Arguments’ Penalty/J. Frank Best, Tax Controversy CPA/U. S. Tax Court Litigator

A recent Tax Court decision was reported dealing with Frivolous Arguments’ Penalty.  J.  Frank Best, Tax Controversy CPA/U. S. Tax Court Litigator in Raleigh and Wilmington, NC  & North Myrtle Beach and Myrtle Beach, SC works to stay current on all IRS decisions concerning tax litigation to ensure we are fully informed and prepared for our clients. 

IRS Supervisor Approval Not Required for Tax Court to Assess Frivolous Arguments’ Penalty

The Tax Court held that its authority to impose a frivolous argument penalty under Code Sec. 6673 for making a frivolous argument before the Tax Court is not subject to the IRS supervisor approval requirement in Code Sec. 6751(b)(1). The Tax Court found that (1) Congress’s intent in enacting the supervisor approval requirement was to prevent IRS agents from threatening unjustified penalties to encourage taxpayers to settle, while Code Sec. 6673 is designed to deter bad behavior in the Tax Court and conserve judicial resources, and (2) Code Sec. 6751(b)(1) was clearly not intended as a mechanism to restrain the Tax Court. Williams v. Comm’r, 151 T.C. No. 1 (2018).

The Tax Court concluded that Code Sec. 6751(b)(1) was not intended as a broad restraint mechanism on the federal judiciary. In the court’s view, Congress did not intend for the statute to cover the imposition of penalties that could be imposed by courts because of misbehavior by a litigant during the course of a judicial proceeding.

Tax Controversy CPA/U.S. Tax Court Litigator

IRS Collection and Tax Litigation-Tax Controversy CPA/U.S. Tax Court Litigator: Raleigh and Wilmington, NC/North Myrtle Beach and Myrtle Beach, SC