Category: Tax

CRYPTOCURRENCIES IN MODERN ESTATE PLANNING: THE CHALLENGES OF IDENTIFICATION, TAXATION, AND CRIMINAL LIABILITIES

The 2017 Tax Cuts and Jobs Act, enacted by the Trump administration, created the largest government-sponsored subsidy for urban renewal through the Opportunity Zones program. This tax expenditure is designed to delay and even avoid capital gains taxes to incentivize development in areas deemed to be in economic distress. While the program’s stated intent is to revitalize neighborhoods, build affordable housing, or promote small businesses, the selection of qualified areas is based on the income rate of residents. That is to say, a subsidy program focused on the physical place improvements has based its designation criteria on local resident’s income. While little academic scholarship has focused on this revolutionary program yet, this note finds that the Opportunity Zone approach to urban renewal likely furthers gentrification, is ripe for abuse, and lacks specificity to help the communities it is intended to serve. These statutory effects are seen clearly in a case study of the Opportunity Zones in Charlottesville, Virginia. In particular, the selection of Zones shows ability to manipulate the program to inappropriately subsidize already-occurring development. In response to the structural issues and the results from the Charlottesville case study, this note further provides a framework of policy solutions for state and local governments, as well as stakeholders, to utilize the opportunity for investment dollars while mitigating the negative externalities.

SCHIEBER V. COMM’R

Abstract Case Name: Schieber v. Commissioner of Internal Revenue, T.C. Memo, T.C. Memo 2017-32 (Feb 9, 2017)Jurisdiction: U.S.T.C.Petitioner: David W. Schieber and Janet L. Schieber Respondent: Commissioner of the Internal Revenue Service.Concepts: Bankruptcy; Defined Benefit Plan; Cancellation of DebtNature of Case: Whether a defined benefit plan is an asset when determining insolvency for the purposes of cancellation of […]

Chadwick v. Comm’r

Abstract Case Name: Chadwick v. Comm’r of Internal Revenue, 154 T.C. 84 (Jan. 21, 2020).Jurisdiction: U.S.T.C.Petitioner: David J. ChadwickRespondent: Commissioner of the Internal Revenue Service.Concepts: Penalties and Addition Tax; Trust Fund Recovery Penalty; Summary Judgement; & Judicial Standard of Review.Nature of Case: Whether written supervisor approval is required for trust fund recovery penalties to be collected against […]

Ruesch v. Comm’r

Abstract Case Name: Vivian Ruesch v. Commissioner, 154 T.C. No. 13 (Jun. 25, 2020).Jurisdiction: U.S.T.C.Petitioner: Vivian RueschRespondent: Commissioner of the Internal Revenue Service.Concepts: Tax DelinquenciesNature of Case: Whether the U.S. Tax Court has jurisdiction to decide Ms. Ruesch’s underlying liability for penalties assessed by the Internal Revenue Services (IRS); and whether Ms. Ruesch’s claim against the IRS […]

Dickinson v. Comm’r

Abstract Case Name: Dickinson v. Commissioner, T.C. Memo 2020-128 (Sept. 3, 2020).Jurisdiction: U.S.T.C.Petitioner: Jon Dickinson and Helen Dickinson. Respondent: Commissioner of the Internal Revenue Service.Concepts: Tax; Charitable Contribution; Charitable Deduction.Nature of Case: Does the immediate redemption of closely held stock by a sponsoring organization of a donor-advised fund cause the inherent capital gain to be included in the […]

Sage v. Comm’r

Abstract Case Name: Sage v. Comm’r, 154 T.C. No. 12 (2020).Jurisdiction: U.S.T.C.Petitioner: Jason B. SageRespondent: Commissioner of the Internal Revenue Service.Concepts: NOL; Real Estate; TrustsNature of Case: Whether the Petitioner’s transfer of land into liquidating trusts for the benefit of the parcels’ mortgage holders transferred ownership to the beneficiaries within the meaning of the “grantor” trust provisions? […]

Interview: Robert Patterson

Dr. Marcia Ruben, Assistant Professor and Chair of GGU’s Graduate Management Program, speaks with Robert Patterson—an MS Taxation alumnus and Director and Worldwide Tax & Trade Controller at Microsoft—about his life and career. Robert (MST ’04), has enjoyed a storied career as a tax practitioner. Currently, he serves as a Microsoft director, ensuring internal control […]

Maki v. Comm’r

Abstract Case Name: Maki v. Commissioner, T.C. Summary Op. 2019-34 (Nov. 4, 2019).Jurisdiction: U.S.T.C.Petitioners: Roger G. Maki, Lilane J. Gervais. Respondent: Commissioner of the Internal Revenue Service.Concepts: Tax; Self-Employment; Business Expense; Federal Rate Deduction; Luxury Water Travel; Lodging, Meals, & Incidentals.Nature of Case: (1) Whether petitioner substantiated that his travels were “ordinary and necessary” business expenses under Internal […]

Oakhill Woods, LLC v. Comm’r

Abstract Case Name: Oakhill Woods, LLC v. Commissioner, T.C. Memo. 2020-24 (Feb. 13, 2020).Jurisdiction: U.S.T.C.Petitioners: Oakhill Woods, LLC; Effingham Managers, LLC; Tax Matters Partner.Respondent: Commissioner of the Internal Revenue ServiceConcepts: Tax; Charitable Contribution; Charitable Deduction; Form 8283; Tax Return; Appraisal Summary; Strict Compliance.Nature of Case: The Internal Revenue Service denied a charitable contribution deduction made by […]

Dieringer v. Comm’r

Abstract Case Name: Dieringer v. Comm’r of Internal Revenue, 917 F.3d 1135, 1137 (9th Cir. 2019).Jurisdiction: United States Court of Appeals, Ninth Circuit.Appellee: Internal Revenue Service Commissioner.Petitioners-Appellants: The Victoria E. Dieringer Estate.Concepts: Tax; Charitable Deduction; Estate Planning; Stock.Nature of Case: Whether the Tax Court 1) should have valued the charitable gift at Victoria’s Date of […]