This article provides a technical analysis of the recent Tax Court Memorandum decision, Hampton v. Commissioner, T.C. Memo. 2025-32, which addressed the application of the public policy doctrine to the disallowance of a loss deduction claimed by a shareholder of an S corporation following the forfeiture of the corporation’s assets. This case offers valuable insights for tax practitioners regarding the limitations on loss deductions when those losses are intertwined with illegal activities.

This article analyzes the recent Tax Court Memorandum decision, Zajac v. Commissioner, T.C. Memo. 2025-33, providing a detailed overview of the case for tax practitioners. The case involves a taxpayer, Joseph J. Zajac, III, who contested the Commissioner of Internal Revenue’s (Respondent) determination of deficiencies and accuracy-related penalties for the taxable years 2007 through 2009.

The case of WT Art Partnership LP v. Commissioner, T.C. Memo. 2025-30, offers significant insights for tax practitioners, particularly those advising clients on charitable contributions of high-value art. This memorandum opinion from the United States Tax Court addresses the intricate requirements for substantiating such donations under § 170 of the Internal Revenue Code (IRC), the application of the reasonable cause exception under § 170(f)(11)(A)(ii)(II), the determination of fair market value (FMV), and the imposition of accuracy-related penalties under § 6662. This article will delve into the facts of the case, the taxpayer’s arguments, the court’s legal analysis, its application of the law, and the resulting conclusions.

This article delves into the Tax Court’s decision in Correll v. Commissioner, T.C. Memo. 2025-31, providing a technical analysis relevant for tax practitioners. The case highlights the crucial requirements for claiming a child as a dependent and the subsequent eligibility for the child tax credit, particularly in situations involving separated or divorced parents.

This article delves into a recent decision by the United States Court of Federal Claims in Estate of Robert F. Armitage, Deceased, Robert H. Armitage and Adam M. Green, Executors v. The United States, No. 24-1687, filed April 7, 2025. This case serves as a critical reminder for tax practitioners regarding the fundamental jurisdictional requirements that taxpayers must satisfy before seeking judicial intervention in tax refund matters. Understanding these prerequisites is paramount in advising clients and ensuring the proper pursuit of refund claims.

This article delves into the recent case of ERC Today LLC, et al. v. John McInelly, et al., No. CV-24-03178-PHX-SMM (D. Ariz. Apr. 7, 2025), providing a detailed analysis relevant to CPAs in tax practice who advise clients on Employee Retention Credit (ERC) claims. The case examines the Internal Revenue Service’s (IRS) moratorium on processing ERC claims and its implementation of a "risk assessment model," ultimately leading to the denial of a preliminary injunction sought by tax preparation firms.

This article examines the Office of Tax Appeals (OTA) decision in the Matter of the Appeal of B. Wageman, offering insights for tax practitioners regarding the imposition of personal liability for a corporation’s unpaid sales and use tax obligations under California law. This case highlights the critical factors considered by the OTA, particularly the element of willful failure to pay under Revenue and Taxation Code (R&TC) section 6829 and California Code of Regulations, title 18, section 1702.5.

In the recent Tax Court Memorandum decision, Pierce v. Commissioner, T.C. Memo. 2025-29, filed April 7, 2025, the court addressed a dispute concerning the fair market value of interests in Mothers Lounge, LLC, a baby products company, for federal gift tax purposes. This case provides valuable insights for tax practitioners, particularly CPAs specializing in tax, into the court’s rigorous analysis of business valuation methodologies, the scrutiny of expert witness testimony, and the application of relevant legal principles in the context of closely held business transfers.

The Massachusetts Appeals Court’s decision in Craig H. Welch & another vs. Commissioner of Revenue, No. 24-P-109 (Mass. App. Ct. April 3, 2025), provides crucial guidance for CPAs navigating the complexities of Massachusetts income tax for nonresidents, particularly concerning the taxation of capital gains from the sale of stock. This article will delve into the facts of the case, the taxpayers’ claim for an abatement, the court’s detailed analysis of the relevant statute and regulations, the application of these legal principles to the specific circumstances, and the ultimate conclusions reached by the court.

The Tax Court recently issued its Memorandum Opinion in Kelly M. Strieby and Jan E. Sharon-Strieby v. Commissioner of Internal Revenue, T.C. Memo. 2025-28, providing valuable insights into the complexities surrounding the claiming of investment tax credits under Section 48 of the Internal Revenue Code (the Code) and the limitations imposed by the passive activity credit rules of Section 469. This case, decided fully stipulated under Tax Court Rule 122, serves as a crucial reminder for tax practitioners of the necessity of thorough due diligence when advising clients on tax-advantaged investments, particularly those promising seemingly effortless tax benefits.

Tax practitioners frequently encounter situations involving innocent spouse relief under Internal Revenue Code (IRC) §§ 66 and 6015. These provisions offer a pathway for taxpayers to avoid liability for their spouse’s tax obligations under specific circumstances. However, a recent case in the United States District Court for the Northern District of Texas, United States of America v. John Dee Stacey, et al., provides a crucial reminder of the duty of consistency and its implications when a taxpayer who has received innocent spouse relief later attempts to claim an interest in assets they previously failed to disclose. This article will delve into the facts, the legal analysis, and the court’s conclusions in this case, offering valuable insights for CPAs in tax practice.

Tax practitioners are frequently tasked with assisting clients in claiming tax refunds. A critical aspect of this process is ensuring strict adherence to the statutory and regulatory requirements governing such claims, particularly the timeliness mandates established under 26 U.S.C. § 6511. The recent case of Hamilton v. United States, Case No. 24-cv-04491-BLF (N.D. Cal. Mar. 26, 2025), serves as a potent reminder of the jurisdictional pitfalls awaiting taxpayers who fail to meet these deadlines and the specific evidentiary burdens required for exceptions like financial disability tolling. This article delves into the details of this case, providing insights relevant to CPAs in tax practice.

This article delves into the recent United States Tax Court decision in Ranch Springs, LLC v. Commissioner, 164 T.C. No. 6 (2025), a syndicated conservation easement (SCE) case that serves as a critical reminder for tax practitioners regarding the valuation of donated property and the potential for substantial penalties arising from gross valuation misstatements. This case highlights the Tax Court’s scrutiny of aggressive valuation methodologies and underscores the importance of adhering to established principles of fair market value.

This article examines the recent Ninth Circuit Court of Appeals decision in Kristopher Dreyer v. United States of America, No. 24-906 (9th Cir. Mar. 28, 2025), offering a detailed analysis relevant to CPAs advising clients on trust fund recovery penalty (TFRP) matters. This case underscores the stringent standards for demonstrating a lack of willfulness in failing to pay over employee withholding taxes.

As a CPA specializing in tax, this Executive Order concerning the modernization of payments to and from the U.S. Federal Government has several implications for tax practitioners and our clients. This summary highlights the key aspects relevant to our practice.

Effective Date and General Mandate:

The Executive Order, issued on March 25, 2025, mandates a significant shift away from paper-based payments by the Federal Government. Effective September 30, 2025, the Secretary of the Treasury is directed to cease issuing paper checks for all Federal disbursements, including tax refunds. Similarly, the order states that all payments made to the Federal Government, including taxes, shall be processed electronically as soon as practicable and to the extent permitted by law. This transition aims to reduce costs, delays, and the risks of fraud associated with paper checks. The reliance on paper checks has historically led to a higher incidence of loss, theft, undeliverability, or alteration compared to electronic funds transfers (EFTs).

This article examines the Tax Court’s decision in Sherman Derell Smith v. Commissioner, T.C. Memo. 2025-24, which serves as a crucial reminder for tax practitioners regarding the substantiation requirements for depreciation deductions, particularly for property converted to income-producing use. The case highlights the taxpayer’s burden of proof and the specific rules governing the basis of converted property for depreciation purposes.

This interim final rule significantly revises the Beneficial Ownership Information (BOI) reporting requirements for domestic entities by exempting them entirely from the reporting obligations. Previously, the Corporate Transparency Act (CTA) and its implementing Reporting Rule required many corporations, limited liability companies, and other similar entities created by filing a document with a secretary of state or similar office (defined as "domestic reporting companies") to report BOI to the Financial Crimes Enforcement Network (FinCEN).

On March 20, 2025, the IRS revised its Employee Retention Credit (ERC) FAQs, providing critical guidance on income tax reporting. The updated section, 'Income tax and the ERC,' addresses scenarios where taxpayers failed to reduce prior-year wage deductions by the refunded ERC amount, either due to amended payroll tax returns or discrepancies between anticipated and actual refunds.

This article provides a detailed analysis of the recent case Express Scripts, Inc., and Express Scripts Holding Company v. United States of America, Case No. 4:21CV737 HEA, a decision from the United States District Court for the Eastern District of Missouri. This case addresses the applicability of the former Domestic Production Activities Deduction (DPAD) under 26 U.S.C. § 199 to a pharmacy benefit management company’s (PBM) claims adjudication software. 

The case specifically allows an insight into how a court applied the Supreme Court’s Loper Bright Enters. v. Raimondo, 144 S.Ct. 2244 (2024) decision to its analysis of the underlying IRS regulations.

This article provides a technical analysis of the recent Sixth Circuit Court of Appeals decision in Lonnie W. Hubbard v. Commissioner of Internal Revenue, offering insights for tax practitioners dealing with the complex intersection of criminal forfeiture and federal income tax law, particularly concerning individual retirement accounts (IRAs).