IRS Insights

November 2024

Here are the latest tax rulings in our November edition:

• Interest netting - the hunt for the definition of “same taxpayer”
  • In Bank of America Corp. v. United States, a district court ruled that Bank of America was not entitled to interest netting under § 6621(d) of the Internal Revenue Code for pre-merger underpayments and overpayments. BoA is appealing the decision, becoming the latest in a succession of cases addressing the interest netting “same taxpayer” requirement.

• Tax court invalidates Treasury regulation for conflicting with IRC
  • As part of the Tax Cuts and Jobs Act of 2017, Congress added section 245A and amended section 78. There was a timing mismatch between the effective dates of new section 245A and the amendment to section 78. In 2019, the IRS promulgated Treas. Reg. § 1.78-1 to “fix” the timing mismatch. However, the Tax Court did not give effect to the Treasury regulation in Varian Medical Systems, Inc. and Subsidiaries v. Comm'r, and instead relied on the plain language of the statutes.

• Taxpayers had reasonable cause despite failure to provide a document
  • In a recent decision, the Tax Court held that, despite failing to provide their accountant with certain documentation during the preparation of their tax returns for the years at issue, taxpayers still had reasonable cause based on reasonable reliance on an advisor and were not liable for section 6662(a) accuracy-related penalties.
• IRS can waive requirement that Form 2848 be attached to Form 843
  • Recently, the Court of Federal Claims rejected the IRS’s claim that a Form 843 was invalid because the attorney signing the Form 843 did not reattach a copy of the Form 2848 previously provided to the IRS.

Archive

September 2024
Supreme Court upholds section 965 tax in Moore v., United States

May 2024
Court Rules Wrong Form Doesn’t Start IRS’s SOL

March 2024
IRS indefinitely authorizes electronic signatures for select forms and documents

September 2023
Supreme Court to Hear Challenge to Section 965 transition tax

May 2023
Recent Tax Court decision holds Form 5471 penalties are not immediately assessable by the IRS

March 2023
IRS proposes regulations regarding taxpayer access to Appeals

November 2022
Failure-to-file penalties apply when certain forms are paper file

August 2022
Tax Court reiterates rule that each tax year stands on its own

June 2022
Taxpayer refund suit dismissed for inability to prove timely mailing of refund claim

February 2022
Ninth Circuit adopts primary purpose test for determining whether attorney-client privilege applies to dual-purpose communications

October 2021
The IRS issued Notice 2021-39, announcing transition relief for Schedules K-2 and K-3 filers for taxable years beginning in 2021

July 2021
In Crandall v. Commissioner of Internal Revenue, the Tax Court addressed a question about the scope and effect of a closing agreement signed between the taxpayers and the IRS

April 2021
Court holds that Section 6676 erroneous refund penalty does not apply in Exxon Mobil Corp. v. United States

January 2021
Nonresident USVI taxpayer “filing” under Section 6501(a)

November 2020
Federal Claims Court Rules on Failure to Meet Reasonable Cause in Payroll Tax Obligations

September 2020
IRS Request Comments on Revenue Procedure 94-59

July 2020
CCA Memo on Meaning of “Attributable To” in 6511(d)(2)

May 2020
IRS issues Rev. Proc. 2020-23 to allow BBA partnerships to utilize relief provisions provided in the CARES Act

March 2020
Tax Court Tentatively Disallows Conservation Easement Deduction Due to Omitted Required Basis Information