New annual information return requirements for Alabama Nonprofits

Non Profit

Article by: John H. Cooper and Ryan R. Moore On Wednesday, August 19, Governor Bentley signed into law Act 2015-534 (formerly Senate Bill 24) (the “Act”), a controversial bill requiring all entities, other than governmental entities, that have been granted a general statutory exemption from the payment of Alabama sales, use or lodging taxes (“ApplicableRead More

IRS applies CE type attacks in new bargain sale case


Article by: Ronald Levitt and Gregory Rhodes The IRS seems to be stuck in its conservation easement attack mode even in the recent bargain sale case, Davis v. Commissioner, T.C. Memo 2015-88, which was issued by Judge Paris last week. Davis involves the bargain sale of property made by a generous real estate developer inRead More

First Circuit tells late filers that tax debts are not dischargeable in bankruptcy

Gavel And Stopwatch

Article by: Michelle Levin and Ronald Levitt The First Circuit recently joined the Tenth and Fifth Circuits in determining that untimely tax returns are not “returns” for purposes of discharging tax debt. The Court in In re Fahey reviewed the four bankruptcy court decisions concerning the dischargeability of state tax liabilities where the debtor filed theRead More

IRS audit process expected to move even slower – plan accordingly

Still life of tax forms and paperwork preparation on white backg

As reported in the BNA Daily Tax Report on January 14, 2015, IRS Commissioner John Koskinen said in an e-mail to employees and stakeholders on January 13, 2015 that the IRS won’t be able to close as many audits in 2015 due to budget cuts.  For people unfortunate enough to have been through the IRSRead More

Journal of Taxation features Sirote’s Tax Controversy Group


Sirote’s Tax Controversy Group was published in December’s Journal of Taxation.  The article discusses penalties imposed by the IRS in charitable deduction cases and how to defend against those penalties.  In recent years, the IRS has been more aggressive in penalizing taxpayers claiming large charitable deductions in connection with the donation of land, buildings, easements,Read More

Failure to report gifts from Santa could result in substantial penalties

Green sphere with red symbol of dollar.

Gifts from St. Nicholas, a Greek resident (even if he has a factory in the North Pole), may not be taxable to you, but can nonetheless give rise to IRS reporting obligations.  Specifically, if you are a U.S. person and receive foreign gifts or bequests of money or other property, you may need to reportRead More

The Tax Court in VisionMonitor Software, LLC, found common sense way to waive accuracy related penalties based on a reasonable reliance in a partnership context

world map concept

In VisionMonitor Software, LLC v. CIR, T.C. Memo 2014-182, the Tax Court faced another taxpayer’s attempt to create basis in a partnership interest through the contribution of a promissory note.  Unfortunately for the taxpayer, VisionMonitor follows pretty well established law that a partner’s contribution of his own promissory note to his partnership does not createRead More