Colin Quill

The IRS’ determinations in a notice of deficiency are generally presumed correct. Therefore, unless specifically excepted by Tax Court Rule or statute, the burden of proof in civil tax proceedings is ordinarily on the taxpayer(s). Last week, the U.S. Tax Court issued a summary opinion sustaining the IRS’ denial of deductions because the taxpayers’ “hodgepodge of receipts” was insufficient to substantiate their claims. Wright v. Comm'r of Internal Revenue, No. 17520-19S (U.S.T.C. Jun. 10, 2024). The IRS examined an S corporation’s 2015 Form 1120-S, U.S. Income Tax Return for an S Corporation, and disallowed a portion of the company’s claimed deductions. Those disallowances resulted in the IRS making positive adjustments to the S corporation’s business income for each year and, consequentially, positive adjustments to the amounts of flow through income reported on the owners’ related Schedule E (i.e., on the owners’ personal income tax return). The Wright case is yet another reminder of the importance of maintaining credible records to ensure transparency and creditability in the production of evidence. https://lnkd.in/evCb8Sam Thank you Michelle E. Espey for this week's Tax Tracker!

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Warren "Skip" Kessler, Tax Partner, addresses the California Franchise Tax Board's (FTB) audit procedures for IRC Section 1031 like-kind tax-deferred exchanges, shedding light on the unpredictability of their audits and two main hot-button issues, Drops and Swaps and Post-Closing Refinancing, in an article published in Genesis Bank’s Insights newsletter. #Section1031 #Tax #RealEstate

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While the prospect of an IRS audit can be scary, audits are actually very common and not, necessarily, a reason to panic — especially when you have all the proper records and documentation in place. Vanst Law LLP Partner and Tax Attorney Allison D.H. Soares, Esq. looks at the records and documents Californians should keep in case of an IRS audit. https://lnkd.in/gCTvXfJS #VanstLawLLP #SanDiego #California #businesslaw  #corporatelaw #businesslitigation #litigation #taxlaw #taxattorney #IRS 

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Tax-exempt bonding is an important topic in Indian Country. A recent article by CICD explores the framework governing tribal tax-exempt bonding authority and differences in tax-exempt bond financing between tribal and state and local governments. Read our recent article by Senior Policy Analyst John Morseau (Pokagon Band of Potawatomi) and Senior Economist Matthew T. Gregg: https://bit.ly/4aTkNxo

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The doctrine of divisibility is well known in contract law, yet there is little discussion by courts and scholars of reverse divisibility, which involves the recharacterization of two or more facially separate but closely related contracts as a single contract. In "'Reverse Divisibility' and 'Subsequent Modification': Expanding the Scope of Justified Non-Performance in Multiple Contract Situations," Professor Gregory Crespi discusses reverse divisibility and its practical applications. https://lnkd.in/eGG-r3dv

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The 5th edition of Chamberlain and Whitehouse "Trust Taxation and Private Client Tax Planning" (Sweet & Maxwell/Thomson Reuters) is now out.    The last edition came out in 2014. This edition has therefore been rewritten and greatly expanded updating relevant case law and legislative changes, considering the implications of the non-dom changes announced in the Budget 2024 and covering private client tax including family investment companies, DOTAS and GAAR, the Trusts Register, divorce, BPR, pensions, property ownership and EBTs. The book has been rewritten by Emma Chamberlain with Matthew Harrison and Richard Wallington. There are useful precedents in Appendix 1 and a significant amount of relevant correspondence between HMRC and the professional bodies in Appendix II.  The new edition is now in two volumes. You can find more details here: https://rb.gy/tielcf

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Aaron C. Johnson will present at the Institute for Professionals in Taxation Annual Conference in San Diego on June 24. Aaron will share his insights on recent sales and use tax developments for the Western region, including issues, decisions, and guidance from taxing jurisdictions, recurring audit issues, and the opportunities and challenges that have emerged from those developments. View the full agenda here: https://bit.ly/3L0EIix

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Check out this week's episode of the Current Federal Tax Developments podcast! (June 10, 2024) Topics covered: -US Supreme Court rules that a requirement to redeem the decedent’s shares cannot be considered to reduce the value of the entity, but life insurance proceeds received by the entity to fund the buyout will increase the value -Taxpayer denied relief for late rollover when funds were accidentally transferred from employer plan to Roth IRA -IRS rules certain payments related to East Palestine, Ohio derailment are §139 disaster payments -What options exist for an employer with a pending ERC claim? Current Federal Tax Developments is brought to you by Kaplan Financial Education and MOCPA. https://lnkd.in/g_JuSrSm

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The U.S. Courts of Appeals for the D.C. Circuit recently reversed a Tax Court decision regarding the Internal Revenue Service's authority, essentially restoring the relatively unfettered ability of the IRS to penalize taxpayers for not properly reporting their foreign holdings and limits. The specific legal issue litigated in this case hinged on the interpretation of certain Tax Code provisions. Read more: https://lnkd.in/eC9hmhH8 #TaxLaw #IRS #taxes #finance

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🚨Breaking News 🚨 The IRS has released a new revised Draft of Form 6765, Credit for Increasing Research Activities. You’ll notice that: ▶ Completion of Section G has become optional for: 📍 Qualified Small Business (QSB) taxpayers 📍 Those with QREs < $1.5M and gross receipts <$50M ▶ Section G requires less Business Component Detail – only 80% of QREs need to be reported per business component, with a max of 50 business components The revision won’t be mandatory till TY 2025 (processing year 2026), giving taxpayers plenty of time to adjust. These changes should hopefully make claiming the R&D Tax Credit easier on the taxpayer, and as always – Capstan’s here to help make things as easy as possible. Read the full Announcement: https://lnkd.in/gCbcTxTP #Taxcredit #IRSUpdate

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Join Tram Le and Judy Vorndran at TaxOps as they delve into the complex tax considerations that business transactions can trigger in state and local tax (SALT).   Boost Transaction Value with SALT Due Diligence Thursday, June 27, 2024 | 1:40 pm – 2:30 pm AAA-CPA Annual Meeting & Education Conference   Business transactions often trigger complex tax considerations for state and local taxes (SALT), such as income and franchise taxes, sales and use taxes, property taxes, and more. These SALT-related issues have the potential to cut into the purchase price in ways that can come as a shock to unprepared sellers. Motivated sellers that complete SALT-related sell-side due diligence before identifying a buyer can clear potential issues and leverage tax opportunities, justifying a higher sales price. Join Tram Le and Judy Vorndran as they discuss the evidence and what to do now to create positive, documented facts around SALT issues prior to a sale, potentially justifying a higher sales price and paving the way for a smooth transaction. https://lnkd.in/grEHDvYq

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