Federal Tax Update with Lynn Nichols #31
Lynn Nichols Federal Tax Update Podcast
February, 06 2019, Episode 31
Listen as Lynn Nichols provides commentary on 3 Items pertaining to current developments in U.S. tax law. This week’s topics include:
A U.S. district court granted the government summary judgment in a suit seeking the return of erroneous refunds it made to a couple, finding that their electrical contracting S corporation wasn’t entitled to deductions under section 179D for energy efficient commercial building property because the buildings were not placed in service in the year they claimed.
[United States v. Dennis F. Quebe et ux.; No. 3:15-cv-00294, 1/25/2019]
The Fifth Circuit vacated a district court decision that held that a couple’s reliance on their accountant to e-file their return didn’t provide reasonable cause for their late filing and granted the government summary judgment, finding that there is a genuine dispute of material fact regarding whether the accountant’s actions met the reasonable cause standard.
[Christopher A. Haynes; CA 5; No. 17-50816, 1,29,2019]
The Tax Court held that a partnership was entitled to a $2.9 million worthless debt deduction that the IRS disallowed, finding that there was a bona fide debt owed to the individual who contributed the note to the partnership in exchange for an interest in it and the debt became worthless in the year the partnership claimed the deduction.
[2590 Associates LLC et al.; No. 12924-16; T.C. Memo. 2019-3, 1/31/2019]