FindLaw Opinion Summaries - Tax Law

O'Rourke v. US

Mon, 23 Nov 2009 20:00:02 PDT

(U.S. 2d Cir., Bankruptcy Law, Evidence, Per Curiam, Tax Law) In an appeal from a bankruptcy court's order denying debtors' objection to a claim by the IRS, the order is affirmed where: 1) the bankruptcy court's finding that a notice of deficiency was mailed to debtors, based on a certified mail log stamped by the Postal Service and a partial copy of the notice, was not clearly erroneous; 2) debtors identified no affirmative misconduct on the part of the IRS warranting an estoppel; and 3) their argument that the certified mail log was inadmissible was waived.

US v. McElroy

Fri, 20 Nov 2009 20:00:02 PDT

(U.S. 1st Cir., Criminal Law & Procedure, Evidence, Government Law, Sentencing, Tax Law, White Collar Crime) Defendants' sentence and conviction for conspiring to defraud the US of employment and income taxes and to commit insurance fraud by use of the mails and for procuring false tax returns is affirmed where: 1) a denial of motion to suppress evidence found at a certain address was correct as the evidence was sufficient to support a finding of probable cause; 2) prosecutor's remarks regarding a trial exhibit did not constitute reversible error; 3) district court did not commit reversible error by admitting into evidence summary testimony and charts; 4) district court did not commit reversible error by allowing the prosecutors to elicit out-of-court testimony identifying one of the defendants; and 5) district court did not err in including unpaid state taxes in the total tax loss amount used to calculate the base offense level for sentencing the defendants.

Severo v. Comm'r of Int'l Rev.

Fri, 20 Nov 2009 20:00:02 PDT

(U.S. 9th Cir., Administrative Law, Bankruptcy Law, Civil Procedure, Tax Law) In taxpayers' appeal of a tax court decision granting summary judgment for the IRS and permitting it to proceed with its collection action relating to petitioners' 1990 tax liability, the order is affirmed where the statute of limitations regarding collection was tolled during the pendency of petitioners' bankruptcy proceedings.

US v. Hardy

Fri, 20 Nov 2009 20:00:02 PDT

(U.S. 6th Cir., Criminal Law & Procedure, Evidence, Tax Law, White Collar Crime) In a prosecution for bank fraud and tax evasion, district court's exclusion of defense evidence on the ground that defendant failed to comply with the reciprocal discovery requirement of Fed. R. Crim. P. 16(c) is affirmed as the district court did not err in excluding the evidence, but even if the court did err, it was harmless error because the excluded evidence would not have created reasonable doubt.

New York Guangdong Fin. Inc. v. Comm'r. of Int'l. Rev.

Fri, 20 Nov 2009 20:00:02 PDT

(U.S. 5th Cir., Corporation & Enterprise Law, International Law, International Trade, Tax Law) In an appeal from a tax court's judgment sustaining in part the Commissioner of Internal Revenue's notice of deficiency for withholding tax deficiencies and additions to tax, the order is affirmed where: 1) the Commissioner did not act arbitrarily when it relied on information provided to it by petitioner under penalties of perjury; 2) the Agreement for the Avoidance of Double Taxation and the Prevention of Tax Evasion With Respect to Taxes on Income did not exempt interest paid to a Chinese corporation from withholding tax; and 3) the record contained no evidence that petitioner relied on the advice of a competent professional in deciding not to file the Forms 1042 for the years in question.

US v. Miller

Fri, 20 Nov 2009 20:00:02 PDT

(U.S. 5th Cir., Criminal Law & Procedure, Evidence, Tax Law, White Collar Crime) Defendant's tax evasion conviction and sentence are affirmed where: 1) the district court did not abuse its discretion in excluding evidence regarding settlement negotiations because that evidence did not relate to defendant's alleged embezzlement activities; 2) the district court properly refused to exclude defendant's spouse's testimony under the marital privilege because that testimony referred to acts, not communications; and 3) the district court properly gave a deliberate ignorance instruction because the evidence demonstrated that defendant was subjectively aware of a high probability of existence of illegal conduct.

Estate of Christiansen v. Comm'r. of Int'l. Rev.

Fri, 13 Nov 2009 20:00:02 PDT

(U.S. 8th Cir., Tax Law) In the IRS's appeal from the tax court's determination that a partial disclaimer was valid as to an amount that subsequently passed to a foundation that the decedent named as a contingent beneficiary in her will, the order is affirmed where: 1) Treasury Regulation section 20.2055-2(b)(1) did not speak in terms of the existence or finality of an accounting valuation at the date of death or disclaimer; and 2) the court of appeals could find no evidence of a clear Congressional intent suggesting a policy to maximize incentives for the Commissioner to challenge or audit returns.

Ulrich v. Comm'r. of Int'l. Rev.

Tue, 3 Nov 2009 20:00:02 PDT

(U.S. 9th Cir., Administrative Law, Tax Law) In an appeal from the tax court's decision denying taxpayers' appeal from an IRS collection due process hearing, the order is affirmed where the taxpayers' waiver of their right to receive a notice of deficiency did not require acceptance by the IRS to become effective, and the taxpayers had waived their pre-collection right to contest liability.

US v. Root

Thu, 29 Oct 2009 21:00:02 PDT

(U.S. 3d Cir., Criminal Law & Procedure, Evidence, Government Law, Tax Law, White Collar Crime) District court's conviction of defendant for tax evasion and conspiracy to defraud the United States is affirmed where: 1) upholding the government's inclusion of multiple years of evasion in a single count was proper; and 2) the government's charge was not impermissibly duplicitous because the statutory language does not prohibit the government's decision to charge defendant for multiple years in one count and because analysis of the concerns traditionally associated with duplicitous charges demonstrates that defendant was not prejudiced by that decision.

Marriott Int'l. Resorts, LP. v. US

Wed, 28 Oct 2009 20:00:02 PDT

(U.S. Fed. Cir., Corporation & Enterprise Law, Government Law, Property Law & Real Estate, Tax Law) In a partnership-taxation case involving Marriott, United States Court of Federal Claims' grant of summary judgment in favor of the government is affirmed in its determination that in 1994 the obligation to close a short sale qualified as a liability under I.R.C. section 753 and that the IRS properly adjusted the outside basis of the Marriott partners for the 1994 tax year to account for the partnership's assumption of the obligation to close certain short sales.

Roberts v. Tishman Speyer Props., L.P.

Fri, 23 Oct 2009 20:00:02 PDT

(N.Y., Landlord Tenant Law, Property Law & Real Estate, Tax Law) In an action by tenants claiming that their landlords were not entitled to take advantage of the luxury decontrol provisions of the Rent Stabilization Law (RSL) while simultaneously receiving tax incentive benefits under the City of New York's J-51 program, the Appellate Division's order reversing dismissal of the complaint is affirmed where the RSL did not permit defendants to receive both types of benefits.

Republic Sav. Bank, F.S.B. v. US

Wed, 21 Oct 2009 20:00:02 PDT

(U.S. Fed. Cir., Banking Law, Contracts, Corporation & Enterprise Law, Government Contracts, Remedies, Tax Law) In plaintiffs' breach of contract claim against the U.S. government arising from the savings and loan crisis of the early 1980s, the decision of the Court of Federal Claims summarily awarding plaintiffs restitution damages is affirmed in part, reversed in part, vacated and remanded where: 1) government's challenge to the restitution award of $17 million for plaintiffs' capital contribution is rejected; 2) trial court erred in including, as part of the restitution award, the sale premium; 3) trial court erred by not reducing the award by $4.287 million, the value of the tax benefits plaintiffs received; and 4) trial court did not err in offsetting plaintiffs' award with the government's $3 million cash contribution.

US v. Rigas

Wed, 21 Oct 2009 20:00:02 PDT

(U.S. 3d Cir., Corp. Governance, Corporation & Enterprise Law, Criminal Law & Procedure, Securities Law, Tax Law, White Collar Crime) In a case involving the founder of Adelphia and his son, denial of defendants' motion to dismiss conspiracy charges in a Pennsylvania indictment, claiming that their conviction for conspiracy and substantive fraud counts in the Southern District of New York violated their right to be free from double jeopardy, is remanded as 18 U.S.C section 371 creates a single statutory offense and defendants established a prima facie case that there was only one conspiratorial agreement. However, denial of defendants' motion to dismiss tax evasion charges in the Pennsylvania Indictment is affirmed.

Garth v. Bd. of Assessment Rev. for Richmond

Tue, 20 Oct 2009 20:00:02 PDT

(N.Y., Administrative Law, Civil Procedure, Tax Law) In an article 7 tax proceeding challenging an assessment of petitioner's real property, the appellate division's order dismissing the petition is reversed where personal jurisdiction is not lacking in an article 7 proceeding where the petitioner omits the return date from the notice of petition.

Jamieson v. Comm'r of Internal Rev. Serv.

Fri, 16 Oct 2009 20:00:04 PDT

(U.S. D.C. Cir., International Law, Tax Law) In an appeal from the Tax Court's determination that the taxpayers owed alternative minimum tax (AMT), the order is affirmed where the Technical and Miscellaneous Revenue Act of 1988 made it crystal clear that Congress intended the 90% cap on the AMT foreign tax credit to supercede any preexisting treaty obligation with which it conflicted.