IRS eases rule making injury awards non-taxable 
Published: February 7, 2012
Tags: gross income, Internal Revenue Code, Internal Revenue Service, IRS, Small Business Job Protection Act, tax on damages, taxation
Awards for physical injuries are no longer required to be derived from a vindication of “tort” rights in order to qualify for exclusion from a taxpayer’s gross income, according to a recent rule amendment issued by the Internal Revenue Service.
Non-compliant plan may be exempt in bankruptcy
Published: December 28, 2011
Tags: Chapter 7, Internal Revenue Code, Keough retirement plan, retirement plan, taxation
A retirement plan that was not technically “tax qualified” under federal law may still be exempt from the taxpayer’s bankruptcy estate, the Utah Supreme Court has ruled in answering a certified question from a U.S. District Court.
Malpractice suit against law firm settled
Published: December 20, 2011
Tags: Indiana, IRS, legal malpractice, taxation, taxes
A Noblesville, Ind. farm couple settled their legal malpractice lawsuit against the Indianapolis law firm of Krieg DeVault while the jury was deliberating in the case.
Two-year limit on ‘innocent spouse’ tax relief lifted
Published: December 19, 2011
Tags: innocent spouse relief, IRS, taxation
The Internal Revenue Service has eliminated the two-year limit on taxpayers seeking relief from a spouse’s understated or underpaid income tax liability.
Widowed taxpayer not entitled to innocent spouse relief
Published: December 9, 2011
Tags: innocent spouse relief, taxation
A taxpayer was not entitled to “innocent spouse” relief when she learned of a substantial tax liability for a joint return filed after her husband’s death, the U.S. Tax Court has ruled in upholding an assessment of $25,000 for unpaid taxes.
Death benefit from employee annuity is taxable
Published: November 28, 2011
Tags: taxation
A taxpayer must pay federal income taxes on a death benefit received from her mother’s employee annuity plan, the U.S. Tax Court has ruled in upholding a $2,305 deficiency assessment.
Tax on income from inherited IRA couldn’t be avoided
Published: November 17, 2011
Tags: Individual Retirement Account, IRA, taxation
An unreported retirement distribution related to an inherited individual retirement account is taxable, regardless of the taxpayer’s maneuver to obtain the funds through a trustee-to-trustee transaction, the U.S. Tax Court has ruled in upholding a $13,600 deficiency assessment.
Court considers jurisdictional bar in health care case
Published: November 14, 2011
Tags: Anti-Injunction Act, health care, Patient Protection and Affordable Care Act, Supreme Court, taxation
As part of a sweeping review of the nation’s federal health case law, the U.S. Supreme Court has agreed to decide whether the Anti-Injunction Act bars courts from considering constitutional challenges to the law before it goes into effect in 2014.
TAXATION
Published: November 14, 2011
Tags: equal protection, taxation
Does the Equal Protection Clause preclude a local taxing authority from refusing to refund payments made by those who have paid their assessments in full, while forgiving the obligations of identically situated taxpayers who chose to pay over a multi-year installment plan?
Armour v Indianapolis, No. 11-161. Certiorari granted
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HEALTHCARE REFORM
Published: November 14, 2011
Tags: Anti-Injunction Act, health care, Patient Protection and Affordable Care Act, Supreme Court, taxation
Does the Anti-Injunction Act bar courts from considering constitutional challenges to the federal health care law before it goes into effect?
See “Court considers jurisdictional bar in health care case”
Department of Health and Human Services v. Florida, No. 11-398.Certiorari granted: Nov. 14, 2011. Ruling below: Docket
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