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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
» Continue Reading.

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
» Continue Reading.

Taxpayer can’t get damages for unfiled tax information 

Published: November 8, 2011

Tags: taxation

A taxpayer could not get damages for her landlord’s alleged failure to file information returns pertinent to her federal income taxes, the 2nd Circuit has ruled in affirming a dismissal.

Estate could deduct loan interest 

Published: November 3, 2011

Tags: estate planning, taxation, trusts and estates

A decedent’s estate could deduct as an administrative expense the interest on funds borrowed from an estate asset in order to pay federal estate tax, the U.S. Tax Court has ruled.

Taxpayer entitled to first-time homebuyer credit 

Published: November 2, 2011

Tags: taxation

A taxpayer could claim a first-time homebuyer tax credit on his federal income tax return – even though he acquired his property under a land sale contract, the U.S. Tax Court has ruled in vacating a $7,500 deficiency assessment.

Father not entitled to tax exemptions for kids 

Published: October 28, 2011

Tags: child support, child tax credit, taxation

Despite the terms of a couple’s divorce agreement granting a father the right to claim tax exemptions for his children, because the children spent more than half of the year living with their mother the father is not entitled to the deductions, the U.S. Tax Court has ruled.