Negotiated Formula for Stock Option Price Obviates DLOM Need
Eleventh Circuit upholds Tax Court’s $36.9 million valuation of executive stock option, finding that by using the parties’ negotiated formula for the number of shares equaling $16 million at the date of exercise and declining to apply a marketability disc ...
Deseret Management Corp. v. United States
In tax refund case related to tax code’s like-kind exchange provisions, Court of Claims rejects a bright line rule that radio stations cannot have goodwill; it also finds that the discounted cash flow (DCF) method the government’s expert chose to determin ...
Tax Court Predicates Bonus on Increasing Asset Sale Price
In determining reasonable compensation for an employee who is also the owner/operator of a company and enabled the profitable sale of its major assets, the Tax Court finds comparisons to similar corporations “difficult” given the company’s unique situatio ...
Claims Court Rules IRC Section 409A Governs Discounted Stock Option
Claims court disagrees with taxpayers claiming that issue of whether an option to buy stock in company was discounted was not relevant to finding no taxpayer liability under IRC section 409A; if the option was discounted¬—a factual issue awaiting determin ...
In Demutualization, IPO Share Price Guides Cost Basis Determination
In insurance demutualization, federal court declines to apply “open transaction doctrine” or adopt IRS’s zero cost basis approach; it finds the IPO price of the shares the taxpayers received under demutualization was “the first valuation of what Plaintiff ...
IRS Gives Hybrid Business Favorable Tax Status
In a non-precedential ruling, the IRS approves a proposed data center business for status as a real estate investment trust (REIT) under IRC section 856, finding the properties the company plans to lease to tenants are real property and constitute real es ...
Davis v. Commissioner (II)
Eleventh Circuit upholds Tax Court’s $36.9 million valuation of executive stock option, finding that by using the parties’ negotiated formula for the number of shares equaling $16 million at the date of exercise and declining to apply a marketability disc ...
Peek v. Commissioner
Tax Court finds taxpayers engaged in “prohibited transactions” under IRC Section 4975(c(1)(B) when making personal guaranties on a promissory note to a company they had bought via IRAs for purposes of deferring until retirement any income tax liability on ...
Independent Tax Preparers Protest IRS’s Regulation Efforts and Prevail
Federal court declares IRS lacks statutory authority to expand definition of tax-preparer under Circular 230 to impose a registration requirement on independent tax professionals (non-CPAs and non-attorneys) and issues injunction against the agency.
Independent Tax Preparers Protest IRS’s Regulation Efforts and Prevail (II)
Federal court modifies injunction against IRS enforcement of the registration requirement for independent tax-return preparers, stating that injunction does not lift the requirement that tax preparers obtain a PTIN number, but prohibits agency from condit ...
Aries Communications Inc. v. Commissioner
In determining reasonable compensation for an employee who is also the owner/operator of a company and enabled the profitable sale of its major assets, the Tax Court finds comparisons to similar corporations “difficult” given the company’s unique situatio ...
Private Letter Ruling 201314002
In a non-precedential ruling, the IRS approves a proposed data center business for status as a real estate investment trust (REIT) under IRC section 856, finding the properties the company plans to lease to tenants are real property and constitute real es ...
Dorrance v. U.S.
In insurance demutualization, federal court declines to apply “open transaction doctrine” or adopt IRS’s zero cost basis approach; it finds the IPO price of the shares the taxpayers received under demutualization was “the first valuation of what Plaintiff ...
Sutardja v. United States
Claims court disagrees with taxpayers claiming that issue of whether an option to buy stock in company was discounted was not relevant to finding no taxpayer liability under IRC section 409A; if the option was discounted¬—a factual issue awaiting determin ...
Estate of Kite v. Commissioner
At issue in this taxpayer action was whether the transfer of family partnership interests held by the decedent's lifetime revocable trust to her children in exchange for private annuity agreements was a disguised gift subject to gift tax.
Loving v. IRS (II)
Federal court modifies injunction against IRS enforcement of the registration requirement for independent tax-return preparers, stating that injunction does not lift the requirement that tax preparers obtain a PTIN number, but prohibits agency from condit ...
Loving v. IRS (I)
Federal court declares IRS lacks statutory authority to expand definition of tax-preparer under Circular 230 to impose a registration requirement on independent tax professionals (non-CPAs and non-attorneys) and issues injunction against the agency.
5th Circuit Ratifies 47.5% Discounts to FLP Asset Values
5th Circuit affirms district court findings that overall intent of widow was to establish a family limited partnership (FLP), despite funding but failing to finalize its formation; accordingly, the court upheld the 47.%% combined discounts applied to the ...