DiscoverSCACPA's Weekly Federal Tax UpdateFederal Tax Update with Lynn Nichols #45
Federal Tax Update with Lynn Nichols #45

Federal Tax Update with Lynn Nichols #45

Update: 2019-08-21


Lynn Nichols Federal Tax Update Podcast
August, 21 2019, Episode 45

Listen as Lynn Nichols provides commentary on 4 Items pertaining to current developments in U.S. tax law.

  1. Eighth Circuit Affirms Denial of Innocent Spouse Relief

The Eighth Circuit, in an unpublished per curiam opinion, affirmed a Tax Court decision that sustained the IRS’s denial of an individual’s request for innocent spouse relief under section 6015, finding that the Tax Court didn’t abuse its discretion.

[Brian Benson v. Commissioner; CA 3, No. 18-3526, 8/2/2019] 

Husband Loses Innocent Spouse Claim

. . . a husband whose wife was convicted of criminal fraud is not relieved from joint and several liability stemming from their jointly filed tax return, finding that their tax liability wasn’t attributable to an understatement of tax and that he knew his wife couldn’t pay the liability nor would he suffer economic hardship if he paid. 

[Brian Benson,. T.C. Memo 2018-157, 9/19/2018]


  1. Misclassification Under HRA Regs Could Trigger Excise Tax

Running afoul of the worker classification requirements in new health reimbursement arrangement regulations could lead to additional taxes, according to an IRS official.

[Tax Notes Today, 8/7/2019, Article by Stephanie Cumings]


  1. Mayo Clinic Is Educational Organization, Gets $11.5 Million Refund

A U.S. district court granted the Mayo Clinic an $11.5 million tax refund, holding that Mayo is an educational organization under section 170(b)(1)(A)(ii) and that reg. section 1.170A-9(c)(1) exceeds statutory authority by adding primary-function and merely-incidental tests that Congress didn’t intend to include in the statute.

[Mayo Clinic et al.; USDC Minn., No. 0:16-cv-03113. 8/6/2019]  


  1. Couple Penalized for Early Distribution to Make Home Down Payment

The Tax Court, in a summary opinion, held that a couple must include in income an early distribution the wife received from her section 401(k) retirement plan to use for a down payment on their first home and held them liable for the section 72(t) additional tax because the distribution wasn’t from a type of plan that is excepted from the additional tax.

[Lily Hilda Soltani-Amadi; No. 2090-18S; T.C. Summ. Op. 2019-19; 8/8/2019]









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Federal Tax Update with Lynn Nichols #45

Federal Tax Update with Lynn Nichols #45