Yesterday the Tax Court issued its much awaited opinion in Patel v. Commissioner. After the Court disallowed deductions attributable to Patel’s captive insurance arrangement, it ordered briefing on the applicability of the...more
11/13/2025
/ Amicus Briefs ,
Appeals ,
Captive Insurance Company ,
Economic Substance Doctrine ,
Insurance Industry ,
Insurance Regulations ,
Internal Revenue Code (IRC) ,
IRS ,
Penalties ,
Tax Court ,
Tax Deductions ,
Tax Liability ,
Tax Litigation ,
Tax Planning
As everyone (hopefully) knows, the Government has been shut down for over two weeks now. Much has been written about the IRS having to furlough nearly half of its workforce during the shutdown. However, one major issue...more
10/17/2025
/ Appeals ,
Debt Collection ,
Due Process ,
Enforcement Actions ,
Federal Budget ,
Federal Funding ,
Filing Deadlines ,
Furloughs ,
Government Agencies ,
Government Shutdown ,
IRS ,
Tax Appeals ,
Tax Liability
A recent 1st U.S. Circuit Court of Appeals ruling upheld a lower court decision that the Controlled Substances Act (CSA) does not violate federal law. The decision stems from Canna Provisions’ lawsuit against the government...more
6/13/2025
/ Agribusiness ,
Appeals ,
Cannabis Products ,
Controlled Substances Act ,
Farm Bill ,
Government Agencies ,
Interstate Commerce ,
IRC Section 280E ,
IRS ,
Judicial Authority ,
Litigation Strategies ,
Marijuana ,
Marijuana Related Businesses ,
Tax Deductions ,
Tax Liability ,
Tax Refunds
On Monday, Republicans unveiled their much anticipated Tax Bill (the “Bill”). At 389 pages, the Bill contains a number of provisions. Some are simply extensions of previous provisions that were sunsetting at the end of 2025....more
On April 17th, the Fifth Circuit Court of Appeals held that an FCC penalty violates the Seventh Amendment based on the Supreme Court’s landmark ruling in SEC v. Jarkesy.
The Seventh Amendment provides for the...more
Last October, a District Court in Colorado turned the economic substance doctrine on its head. In Liberty Global, Inc. v. US, a District Court granted the Government’s motion for summary judgement and found that contrary to...more
The Internal Revenue Service (IRS) and U.S. Department of Treasury recently issued guidance to curtail what they consider abusive basis shifting by related-party partners and partnerships. That guidance, which was issued June...more
Last April, in Farhy v. Commissioner, the Tax Court held that the IRS did not actually have authority to assess penalties under IRC § 6038. The result was devastating for the IRS, as it meant it did not have authority to...more
The California FTB recently released a settlement initiative for taxpayers involved in microcaptive or syndicated conservation easement transactions. Taxpayers who enter into the settlement program will not be able to claim...more
In a monumental opinion, the Tax Court recently held that the IRS lacks authority to assess penalties imposed by IRC § 6038(b)(1) or (2). In Fahry v. Commissioner, the taxpayer failed to file Forms 5471 reporting his interest...more