United States v. Yip (January 13, 2010)
Unpaid state taxes may be included in calculation of tax loss
whether or not statute of limitations prevents state from
prosecuting a defendant for his violations of its tax laws; a
defendant is not entitled to a reduction in total tax loss
attributed to him by the amount of potentially legitimate, but
unclaimed, deductions, even if those deductions are related to
the offense. Obstruction during an IRS audit justifies enhancing
a defendant's sentence for obstruction "during the course of
the investigation."
Legal News: Taxation
Adkison v. Commissioner of Internal Revenue (January 21,
2010)
No relief was available to taxpayer under 26 U.S.C. Sec.
6015--which allows a former spouse who had filed joint return
before divorce to claim relief from joint and several liability for a
tax deficiency--where deficiency stemmed from a partnership
interest that was the subject of an ongoing partnership
proceeding under the Tax Equity and Fiscal Responsibility Act
until TEFRA proceedings concluded.
Steinhart v. County of Los Angeles (February 4, 2010)
Change in ownership occurred within the meaning of
Proposition 13 upon the death of a trust settlor who transferred
her residence to a trust that was revocable during her life, who
was the sole present beneficiary of that revocable trust, and
who provided in the trust document that upon her death the
trust would become irrevocable and that her sister would have
the right to occupy the residence during her lifetime.
Vanguard Car Rental USA, Inc. v. County of San Mateo
(February 8, 2010)
A commercial tenant on public property can have a taxable
possessory interest in defined common areas; issue is a
question of law that is reviewable de novo. Where tenant had
beneficial rights to an area that members of the public clearly
did not share but which tenant did share with a limited number
of cotenants in a fashion that restricted neither the quantity of
the property nor the quality of its use, tenant’s rights were
sufficiently exclusive to establish tenant’s possessory interest
and permit taxation.
United States v. Bright (February 26, 2010)
Taxpayer cannot refuse to produce a privilege log or
documents for in camera review in response to an order to
show cause and then protest an insufficient opportunity to
present a claim of privilege. Foregone conclusion exception to
Fifth Amendment applies to existence of offshore account
records that IRS already knew about when it issued summonses
requiring production of documents regarding those accounts;
but government may not issue a summons for "other"
documents and then apply foregone conclusion exception when
it becomes aware of documents through an ongoing
investigation.
Grotenhuis v. County of Santa Barbara (March 15, 2010)
Revenue and Taxation Code provisions--allowing property
owner who is more than 55 years of age or disabled to sell
principal residence, purchase a new residence within same
county at the same or a lesser price, and transfer base tax
value of the former residence to the new one--do not apply
where the owner of record of the new residence is a
corporation, even if the corporation is the alter ego of a person
who would qualify for the transfer if that person was the owner
of record.
Service Employees International Union v. United States (March
17, 2010)
District court lacks discretion to reduce penalties on tax exempt
organizations for late filing of informational returns.
Xilinx v. Commissioner of Internal Revenue (March 22, 2010)
Under tax regulations in effect during tax years 1997, 1998, and
1999, related companies engaged in a joint venture to develop
intangible property need not include value of certain stock
option compensation one participant gives to its employees in
pool of costs to be shared under a cost-sharing agreement.
Phelps v. Orange County Assessment (August 16, 2010)
Where commercial real property was owned by a trust, transfer
constituted a change in ownership under Revenue and
Taxation Code Sec. 60, entitling the assessor to reassess the
property.