The Delaware Department of Insurance (DDOI) recently announced it appealed the Third Circuit’s decision in United States of America v. Delaware Department of Insurance, which involved the application of the McCarran Ferguson Act (MFA) to an IRS summons. The plot thickened on July 26 after Judge Alito requested briefing on the issue. The story abruptly…
Specialists in Tax Litigation
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California Begins Coordinated Enforcement Action Targeting 831(b) “Microcaptive” Insurance Companies–Imposes November Deadline for Self-Enforcement
By Matt Spradling and Hale Stewart The State of California recently released FTB Notice 2023-02, which announced the Franchise Tax Board’s creation of a “resolution process” enabling certain taxpayers to resolve specific transactions that are possibly subject to the non-economic substance transaction (“NEST”) understatement penalties. Taxpayers must decide whether to voluntarily amend returns and unwind…
ZMF is Victorious at the Courthouse on 179D Case
This week, the U.S. Tax Court, in a unanimous TC opinion, affirmed ZMF client’s entitlement to the 179D energy-efficient commercial building tax deduction in Johnson v. Commissioner. Not only was the deduction affirmed, but the Court agreed with every legal argument made by the ZMF team and rejected the IRS’s arguments in totality. The Court…
IRS Lacks Authority to Assess Section 6038(b) Penalties, Tax Court Rules By Oscar Carrillo, Senior Associate at Zerbe, Miller, Fingeret, Frank & Jadav LLP
The U.S. Tax Court recently held that the Internal Revenue Service (“IRS”) lacked statutory authority to assess Internal Revenue Code (“IRC”) Section 6038(b) penalties against an individual for failure to file Forms 5471, Information Return of U.S. Persons With Respect to Certain Foreign Corporations. The case has ramifications for any taxpayer that has been assessed…
IRS Whistleblower Receives $16.8 Million Award for Exposing Widespread Tax Evasion Scheme
Whistleblower attorneys Stephen M. Kohn and Dean Zerbe are pleased to announce that a joint client – who wishes to remain anonymous – received an IRS whistleblower award of $16.8 million. The whistleblower provided the IRS with information that led to an enforcement action against 86 high-wealth individuals who had engaged in a sophisticated illegal tax evasion scheme. The enforcement action…
