A recent opinion from the Court of Appeals for the Fifth Circuit (“Fifth Circuit”) found that the federal prosecutors demonstrated a “callous disregard” for a corporate litigant’s attorney-client and work-product privileged...more
In July of 2021, the Department of Justice announced that it entered into a settlement agreement with two Texas companies, Alliance Parent, Inc. (“Alliance”) and Anchor Holdings LP d/b/a Anchor Capital Partners (“Anchor”),...more
The statute of frauds is an affirmative defense in a breach of contract suit that, where applicable, renders a contract unenforceable. It exists to “prevent fraud and perjury in certain kinds of transactions by requiring...more
In the United States, trademarks, service marks, certification marks, and collective marks are protected not only under civil law pursuant to the Lanham Act, but also under criminal law pursuant to the Trademark...more
The Cohan Rule: Tax Deductions with Incomplete Records -
The “Cohan rule” is derived from the Second Circuit’s 1930 decision, Cohan v. Commissioner, which allowed the taxpayer to approximate travel and entertainment...more
Freeman Law’s “The Tax Court in Brief” covers every substantive Tax Court opinion, providing a weekly brief of its decisions in clear, concise prose.
Tax Court: The Week of August 30 – September 3, 2021 -
Tax Court...more
10/5/2021
/ Income Taxes ,
Internal Revenue Code (IRC) ,
IRS ,
Profit Sharing ,
S-Corporation ,
Tax Court ,
Tax Deductions ,
Tax Liability ,
Tax Planning ,
Tax Returns ,
Whistleblowers
The Economic Espionage Act (EEA), codified in 18 U.S.C. § 1831-1839, makes the theft of or trafficking in trade secrets for foreign governments, instrumentalities, or agents a criminal act. Prior to passing the EEA, the Trade...more
How Express Contract Terms and the Negotiation Process May Affect Liability -
Parties entering into a contract should negotiate in good faith, but parties must also perform due diligence to protect their own interests. In...more
Tortious interference with business relations involves a third party using false claims against a business in order to drive business away or prevent the business from entering a relationship with another party. The key...more
Tortious interference, also known as intentional interference with contractual relations, is a common law tort that occurs when a party intentionally sabotages or otherwise damages the plaintiff’s contractual business...more
Tax Litigation: The Week of August 23 – August 27, 2021 -
Tax Court Case: Estate of Charles P. Morgan, Deceased, Roxanna L. Morgan, Personal Representative and Roxanna L. Morgan v. Comm’r, T.C. Memo 2021-104 | August 23,...more
9/17/2021
/ Acquisitions ,
Business Taxes ,
Final Determinations ,
Income Taxes ,
Innocent Spouse Exception ,
IRS ,
Joint Tax Returns ,
Jurisdiction ,
Special Purpose Acquisition Companies (SPACs) ,
Startups ,
Tax Court ,
Tax Liability ,
Tax Planning
This article discusses Business Disparagement under Texas law. This article does not discuss the tort of defamation or slander of title. Although similar to defamation or slander of title, the false assertion in a business...more
Section 965 audits are on the rise. Taxpayers under section 965 transition tax audits often face significant potential liability exposure. The IRS previously announced an active “campaign” specifically targeting unpaid...more
9/14/2021
/ Controlled Foreign Corporations ,
Foreign Investment ,
Internal Revenue Code (IRC) ,
Pass-Through Entities ,
Passive Foreign Investment Company ,
S-Corporation ,
Subpart F ,
Tax Audits ,
Tax Cuts and Jobs Act ,
Tax Liability ,
Tax Planning
Freeman Law’s “The Tax Court in Brief” covers every substantive Tax Court opinion, providing a weekly brief of its decisions in clear, concise prose.
The Week of August 16 – August 20, 2021 -
Catlett v. Comm’r, No....more
9/10/2021
/ Deficiency Notices ,
Federal Trade Commission (FTC) ,
Income Taxes ,
International Tax Issues ,
IRS ,
Net Investment Income ,
NIIT ,
Tax Court ,
Tax Credits ,
Tax Deductions ,
Tax Fraud ,
Tax Liability ,
Tax Planning ,
Whistleblowers
It’s a common scenario: A taxpayer misses the deadline to file an election with the IRS. What options does the taxpayer have now? I have helped many clients out of this jam, and it is a situation that often presents several...more
The executor of the Estate of Tamir Sapir is seeking a refund of more than $25 million of fiduciary income tax alleged to have been overpaid to the Internal Revenue Service (“IRS”). While the refund suit is currently teed up...more
9/3/2021
/ Discovery ,
Federal Rules of Civil Procedure ,
Income Taxes ,
IRS ,
Overpayment ,
Pleading Standards ,
Tax Court ,
Tax Liability ,
Tax Planning ,
Tax Refunds ,
Tax Returns
The 35% penalty under I.R.C. section 6677 for failing to report a distribution from a foreign trust applies against a person who is both the beneficiary and grantor/owner of a foreign trust. At least, that is now the rule...more
Texas law prohibits a debtor who is subject to a valid judgment from moving assets out of reach of creditors in order to hinder, delay, or defraud a judgment creditor. This legal restriction applies even if the transfer takes...more
Freeman Law’s “The Tax Court in Brief” covers every substantive Tax Court opinion, providing a weekly brief of its decisions in clear, concise prose.
The Week of August 9 – August 13, 2021 -
Manuelito B. Rodriguez &...more
A “qualified amended return” is an amended tax return that, if properly filed before a taxpayer is “on the IRS’s radar,” protects a taxpayer against accuracy-related penalties—in layman’s terms, it is a get-out-of-jail-free...more
Join us as we discuss important developments and bring you up to speed on current initiatives. Many businesses are still facing unprecedented challenges, and we are here to provide insights.
During this information-filled...more
Section 280E of the Internal Revenue Code prohibits taxpayers who are engaged in the business of trafficking certain controlled substances (including, most notably, marijuana) from deducting typical business expenses...more
This program is the first of Freeman Law’s multi-class course designed to prepare CPAs and Enrolled Agents for the Tax Court’s admissions examination. Participants will receive an overview of the Tax Court and will learn...more
8/19/2021
/ CPAs ,
Estate Tax ,
Federal Rules of Evidence ,
Gift Tax ,
Income Taxes ,
Internal Revenue Code (IRC) ,
IRS ,
Legal Ethics ,
Subject Matter Jurisdiction ,
Tax Court ,
Tax Litigation ,
Webinars
Freeman Law’s “The Tax Court in Brief” covers every substantive Tax Court opinion, providing a weekly brief of its decisions in clear, concise prose.
The Week of August 2 – August 6, 2021 - Belair v. Comm’r, Bench Opinion|...more
There are at least three questions when it comes to IRS tax disclosures: (1) Should a taxpayer disclose; (2) How should a taxpayer disclose; and (3) How much detail should be disclosed? Should a taxpayer simply append a...more