Tax Update Blog: Permalink

« Previous · Tax Update Blog Home · Next »

S CORP FAILS TO COVER ITS BASIS

April 09, 2005

The press of tax season keeps us from taking the time we'd like to talk about tax cases. The "Tax and Business Law Commentary" is apparently less busy with returns; they review a recent Tax Court case, Maloof v. Commissioner, where the taxpayer did just about everything wrong from a basis planning standpoint. From TABLC:

The opinion reads like the Children's Goldenbook of S Corporation Taxation with the Court walking through fairly basis principles of S corporation taxation. The taxpayer's positions were so adverse to established law that I'm surprised that there was no mention of possible sanctions for taking a frivolous position. (My favorite ludicrous position taken by the taxpayer is that he was a resident of Florida and thus the precedent of the 11th Circuit applied to the case. Why was he a resident of Florida: He lived with his mother, not his wife, who lives in Ohio. Note to Counsel: Your client's name is "Maloof" not "Oedipus.")

Thanks to TaxProf for noting this blog, which had escaped our attention somehow.

      Bookmark: del.icio.us • Digg • reddit