News

The IRS recently announced its plan to utilize its Inflation Reduction Act funding to shift its enforcement efforts on a certain subset of filers in an attempt to “restore fairness in tax compliance.” One such subset of filers specifically mentioned in the bulletin are large complex partnerships, of the type commonly seen in the various…

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…

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…

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…

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…