In a recent Memorandum Opinion, the U.S. Tax Court addressed the valuation of a conservation easement donation by Beaverdam Creek Holdings, LLC ("Beaverdam"). The case, Beaverdam Creek Holdings, LLC v. Commissioner, Docket No. 12362-21, involved a dispute over a noncash charitable contribution deduction claimed for the donation of an easement over 85 acres of property in Oglethorpe County, Georgia. The court’s analysis offers significant insights into valuation methodologies, burden of proof in deduction cases, qualified appraisal requirements, and the application of accuracy-related penalties.

Tax professionals advising corporate clients must grapple with the complexities introduced by the Corporate Alternative Minimum Tax (CAMT), enacted by the Inflation Reduction Act of 2022. The CAMT, imposed under Internal Revenue Code (Code) § 55, applies to "applicable corporations" and is based on their "adjusted financial statement income" (AFSI) for taxable years beginning after December 31, 2022. The determination of "applicable corporation" status and the calculation of AFSI have been areas of significant focus for both taxpayers and the Internal Revenue Service (IRS). Notice 2025-27 provides further interim guidance on these matters, including an optional simplified method for determining applicable corporation status and critical relief from certain additions to tax under § 6655 related to CAMT liability.

As tax professionals, navigating the complexities of international information reporting can be challenging, both for us and our clients. A recent case in the Northern District of California, Jiaxing Huang v. United States of America, Case No. 24-cv-06298-RS, offers insights into how courts are addressing penalties related to foreign gift reporting, specifically Form 3520, and the defenses available to taxpayers. This article provides an overview of the case’s facts, the taxpayer’s claims, and the court’s analysis on the government’s motion to dismiss.

A critical question for tax practitioners advising nonresident clients arises when those clients sell stock in a Massachusetts-based entity they were involved with, particularly if they were also employees. The Massachusetts Appeals Court recently affirmed the Appellate Tax Board’s decision in Craig H. & Natalia I. Welch v. Commissioner of Revenue, concluding that the gain from a founder’s sale of stock in his former employer was Massachusetts source income. The appellants, Craig H. & Natalia I. Welch, are seeking further appellate review from the Supreme Judicial Court of Massachusetts. This case presents a significant issue of first impression impacting countless Massachusetts entrepreneurs and key employees.

An order was issued on May 29, 2025 from the United States Court of Appeals for the Federal Circuit in the consolidated cases under the lead title V.O.S. SELECTIONS, INC. v. TRUMP. This order is noted as nonprecedential.

The order addresses appeals from the United States Court of International Trade. In the underlying proceedings, the Court of International Trade had entered judgments against the United States. These judgments included permanently enjoining certain Executive Orders imposing various tariffs.

The United States Court of International Trade (USCIT) recently issued a significant opinion concerning the scope of the President’s authority to impose tariffs under the International Emergency Economic Powers Act (IEEPA). This decision, arising from two consolidated cases (V.O.S. Selections, Inc. v. United States and The State of Oregon v. United States), directly impacts businesses engaged in international trade and highlights crucial limitations on executive power that tax professionals should understand for advising clients involved in import activities. The court ultimately granted the Plaintiffs’ Motions for Summary Judgment, declaring the challenged tariffs unlawful and vacating and permanently enjoining their operation.

The recent U.S. Tax Court memorandum opinion in Soroban Capital Partners LP v. Commissioner, T.C. Memo. 2025-52, provides further application of the functional analysis test previously established in Soroban Capital Partners LP v. Commissioner, 161 T.C. 310 (2023) and applied in cases like Denham Capital Management LP v. Commissioner, T.C. Memo. 2024-114. This case underscores the critical need for tax practitioners to look beyond state law labels when determining whether a partner’s distributive share of income is subject to self-employment tax under Section 1402(a)(13).

The recent decision by the New York Tax Appeals Tribunal in Matter of Edward A. and Doris Zelinsky (DTANOS. 830517 AND 830681, May 9, 2025) provides crucial guidance for CPAs advising nonresident clients employed by New York businesses, particularly in the wake of the increased remote work environment. This article delves into the factual background, the petitioners’ arguments, the legal framework applied, and the Tribunal’s reasoning, highlighting the continued relevance and application of New York’s "convenience of the employer" rule.

Practitioners specializing in international taxation and transfer pricing are keenly aware of the complexities inherent in intercompany transactions, particularly those involving high-value intangible property. The United States Tax Court’s decision in Facebook, Inc. & Subsidiaries v. Commissioner, 164 T.C. No. 9 (2025), offers crucial insights into the application of Section 482 and the temporary cost sharing regulations (Temp. Treas. Reg. § 1.482-7T) to such arrangements. This article delves into the facts, the taxpayer’s challenges, the Court’s legal analysis, the application of the law to the specifics of the case, and the resulting conclusions.

On May 20, 2025, the Senate unanimously passed S.129, titled the "No Tax on Tips Act". This Act proposes amendments to the Internal Revenue Code of 1986 with the stated purpose of eliminating the application of the income tax on qualified tips through a deduction allowed to all individual taxpayers, and for other purposes. The bill also includes provisions related to the employer credit for a portion of social security taxes paid with respect to employee tips.

There are similar, but not identical, tip provisions in The One, Big, Beautiful Bill under consideration in the House of Representatives.

In Jordan John O’Neill v. Commissioner of Internal Revenue, T.C. Memo. 2025-49, the United States Tax Court addressed crucial jurisdictional questions stemming from a taxpayer’s challenge to Notices of Deficiency and the timeliness of his petition. The case highlights the technical requirements for both the Internal Revenue Service (IRS) and taxpayers in deficiency proceedings before the Tax Court.

A recent Memorandum and Order from the United States District Court for the District of Rhode Island, The Estate of Vincenzo Sandonato v. United States of America, C.A. No. 23-304-JJM-AEM, offers valuable insights for a tax practice regarding the "reasonable cause" exception to the failure to file penalty under I.R.C. § 6651(a)(1). The case underscores the importance of documented advice and the factual nature of the reasonable reliance defense.

The U.S. Tax Court recently addressed a matter of first impression concerning the scope of its review in cases challenging a certification by the Commissioner of Internal Revenue that a taxpayer owes a "seriously delinquent tax debt" under Internal Revenue Code (I.R.C.) § 7345(a). This certification triggers the Commissioner’s transmittal to the Secretary of State for potential denial, revocation, or limitation of a taxpayer’s passport. The case, Alberto Garcia, Jr. v. Commissioner of Internal Revenue, 164 T.C. No. 8, reviewed by the full court, clarifies that such reviews in the Tax Court can be de novo, based on a new record developed in court, rather than being limited to the administrative record. This ruling has significant implications for how these cases will be litigated.

The U.S. Tax Court recently issued a memorandum opinion in Estate of Martin W. Griffin v. Commissioner, T.C. Memo. 2025-47, addressing the includibility of two bequests in the decedent’s gross estate for federal estate tax purposes. The case centered on whether two specific monetary bequests made through the decedent’s revocable trust to the trustee of his surviving spouse’s irrevocable trust qualified for the marital deduction under Internal Revenue Code (IRC) Section 2056. The dispute required the Court to apply the terminable interest rule and the Qualified Terminable Interest Property (QTIP) exception, as well as consider state law (Kentucky) regarding the creation and terms of trusts.

The United States Court of Appeals for the Eleventh Circuit recently addressed a critical issue for estate tax practitioners: the deductibility of transfers mandated by a prenuptial agreement as "claims against the estate" under 26 U.S.C. § 2053(a)(3). The case, Estate of Richard D. Spizzirri, Deceased v. Commissioner of Internal Revenue (No. 23-14049), centered on whether a $3 million payment to the decedent’s stepchildren, stipulated in a modification to a prenuptial agreement, qualified for deduction. This opinion from Chief Judge William Pryor provides valuable insight into the application of the "contracted bona fide" requirement for related-party transactions.

On May 16, 2025, the Department of the Treasury and the Internal Revenue Service (IRS) issued an interim final rule (TD 10031) and a corresponding notice of proposed rulemaking (REG-107459-24) regarding the user fee for requesting IRS Letter 627, commonly known as the estate tax closing letter. These documents, to be published in the Federal Register on May 20, 2025, detail a reduction in this fee and explain the underlying cost methodology used for its determination. Understanding these changes and the basis for the fee calculation is crucial for tax practitioners advising estates.

Tax Court Memo 2025-45, Stevens v. Commissioner, provides important insights for tax practitioners advising clients engaged in complex financial transactions, particularly those involving purported debt designed to generate significant tax deductions. This case examines whether notes issued as part of a "Bermuda Call Option Agreement" constituted true indebtedness for purposes of Internal Revenue Code (I.R.C.) section 163, and the taxpayers’ liability for accuracy-related and excessive-refund penalties.

As CPAs engaged in tax and ERISA practice, understanding the nuances of fiduciary duties under the Employee Retirement Income Security Act of 1974 is paramount. A recent decision from the United States District Court for the District of Colorado in Marie Watson v. EMC Corp., Civil Action No. 1:19-cv-02667-RMR-STV, decided May 7, 2025, provides valuable insights into a plan administrator’s obligation to provide complete and accurate information to beneficiaries.

Recent legislative proposals, particularly those contained within "Subtitle A—Make American Families and Workers Thrive Again" and "Subtitle C—Make America WIN Again", signal profound changes to the deduction for state and local taxes (SALT), with a significant impact on partnerships and S corporations and their owners. As tax advisors, understanding these modifications is crucial for effective planning and compliance for taxable years beginning after December 31, 2025.

This proposed legislation was approved on a party line vote by the House Ways & Means Committee on May 14, 2025.

This article outlines significant changes proposed affecting the deduction for qualified business income under Internal Revenue Code (IRC) Section 199A in the provisions of The One, Big, Beautiful Bill that were approved in the Ways and Means Committee on the morning of May 14. These modifications, particularly the structural changes to the taxable income limitations and the increase in the deduction rate, warrant careful review for taxpayers engaged in qualified trades or businesses.