Recent Cases Involving the Mailbox Rule, Time Limits for Filing Tax Court Petitions, and Equitable Tolling for Late Filed Petitions By Keith A. Wood Over the last few months, the Fourth Circuit Court of Appeals and Tax Court have issued several interesting decisions involving the common law mailbox rule and the limitations on the Tax […]
By Robert Gallagher Greetings to the NCBA Tax Section! I would like to welcome everyone to a new year of section membership and activities. On behalf of myself and the Tax Council officers (Reed Hollander – Vice Chair; Chris Hannum – Treasurer; and Stacey Brady – Secretary), we look forward to seeing and working with […]
By John G. Hodnette Taxpayers primarily focus on the ability to take a deduction. Another consideration, however, is the timing of the deduction. Section 461 provides the rules for when a deduction can be taken based on both the timing regime the taxpayer has elected and the facts and circumstances surrounding the deduction. Most taxpayers […]
By John G. Hodnette Generally, Section 6501(a) prohibits the IRS from auditing a tax return and assessing additional tax after three years from the filing date. Thus, the IRS has only those three years to initiate and conclude an audit and assess additional tax. In some circumstances, however, the statute of limitations extends for longer […]
By Keith A. Wood I. Audit Statistics: What Are Your Chances of Being Audited? The 2022 Internal Revenue Service Data Book contains audit statistics for years 2012 through 2020, as of the fiscal year ended September 30, 2022 (FY 2022). For tax years 2018 and earlier, the statute of limitations for audits had generally expired […]
By John G. Hodnette Section 6501 provides the statute of limitations for the IRS to assess additional tax. Equally important is Section 6502, which provides the statute of collections (sometimes referred to as the collection statute expiration date or “CSED”). The statute of collections generally provides the IRS must collect a tax within 10 years of […]
By John G. Hodnette Section 529 provides for the creation of qualified tuition programs, better known as 529 Plans. These programs are tax-advantaged investment vehicles through which parents can save for their family’s tuition needs. 529 Plans are required by Section 529(b)(1) to be established and maintained by a state or agency or instrumentality thereof […]
By Keith A. Wood I. Shareholders of Bankrupt S Corporation Failed to Abandon Their Stock; Yaguda v. Commissioner, TC Summary Opinion 2022-21. Mr. and Mrs. Yaguda owned stock of EFI, Inc., an S Corporation. In 2008, a creditor forced EFI into involuntary bankruptcy. Later that year, EFI’s case was converted to a voluntary Chapter 11 […]
By John G. Hodnette A payment for an option to purchase property is not a taxable event to either party upon the grant of the option. See Virginia Iron Coal & Coke Co. v. Commissioner, 99 F.2d 919 (1938); Rev. Rul. 58-234; and Fed. Home Loan Mortg. Corp v. Commissioner, 125 T.C. 248 (2005). That […]
By John G. Hodnette Section 6104(d)(1)(B) provides a right to taxpayers to request the application for tax exemption and annual informational returns for the last three years of any organization described in Section 501(c) or (d) and exempt from taxation under Sections 501(a) or 527(a). That covers both public charities and private foundations exempt under […]