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- No Deduction for Conservation Easement Donation
(B.V. Belk Jr. et ux. v. Commissioner; 140 T.C. No. 1; 1/28/2013)
The Tax Court held that a couple wasn't entitled to a charitable contribution deduction for the donation of a conservation easement on a golf course, finding that the deduction was precluded under section 170(h)(2)(C) because they didn't donate an interest in real property subject to a use restriction granted in perpetuity.
- Taxpayers Failed to Disclose Listed Transaction; Penalty Upheld
(Vimal Soni et ux. v. Commissioner; T.C. Memo. 2013-30; 1/28/2013)
The Tax Court held that a couple who engaged in a listed transaction was liable for the section 6662A 30 percent penalty, finding that they didn't qualify for a reasonable cause exception because they failed to meet the applicable reportable transaction disclosure requirements despite a favorable determination letter.
- A. Proposed Regs on Individual Shared Responsibility Provision
The IRS has issued proposed regulations that provide guidance on the liability for the shared responsibility payment for not maintaining minimum essential coverage.
B. FAQ on Individual Shared Responsibility Provision
(Questions and Answers on the Individual Shared Responsibility Provision; rel. 1/30/2013)
The IRS has released a list of frequently asked questions on the individual shared responsibility provision of the Affordable Care Act, covering topics that include individuals affected by the law, minimum essential coverage, exemptions, information reporting, and making payments.
C. Fact Sheet on Healthcare Shared Responsibility Rules
(Fact Sheet: Individual Shared Responsibility for Health Insurance Coverage
and Minimum Essential Coverage Proposed Rules; UNDATED; rel. 1/30/2013 )
A fact sheet from Treasury summarizes proposed regulations intended to facilitate implementation and improve clarity regarding the healthcare shared responsibility provision, eligibility rules for exemptions, and how individuals can earn a certificate of exemption.
- Tax Court Rejects IRS Adjustments to Automobile Businesses' Gross Receipts
(Samuel I. Olekanma v. Commissioner; T.C. Memo. 2013-31;1/30/2013)
The Tax Court, sustaining an accuracy-related penalty, held that the IRS's adjustments to the gross receipts and cost of goods sold of an individual's automobile business shouldn't be accepted, noting its concern over the bank deposits analysis that led to the adjustments; the court denied unsubstantiated business expense deductions.
- Claims Court Has Jurisdiction to Determine Application of Accuracy-Related Penalty
(Arbitrage Trading LLC v. United States; US CT Fed Clms; No. 06-202T; 1/30/2013 )
The Court of Federal Claims held that it had jurisdiction to determine the applicability of an accuracy-related penalty to adjustments of a disregarded partnership's losses or other deductions used to determine the basis of distributed property, or to determinations the partnership made for purposes of its books or records.
LAST UPDATED 2/4/2013