IRS Can’t Extend Limitations Period

Former Employee Sues Over W-2

By Deborah Elkins
Published: September 12, 2011
Tags: Judge James C. Cacheris, Taxation, U.S. District Court - Eastern District

An Alexandria U.S. District Court dismisses a former pool manager’s pro se suit against defendant pool company alleging it intentionally and fraudulently interfered with his “business with the IRS” when the company responded to an IRS effort to levy on the manager’s wages for back taxes, which he says prevented him from getting a W-2 [...]

State can’t tax bank as a corporation

By Peter Vieth
Published: August 10, 2011
Tags: Banks & Banking, Judge Mary Jane Hall, Norfolk Circuit Court, Taxation

When is a bank not a bank? A Norfolk Circuit Court had to answer that question when the Virginia Department of Taxation sought back taxes from a private national bank with a Norfolk branch. The bank came out ahead in that contest. Not only did the bank owe nothing under the department’s initial method for [...]

Company Can Challenge County Carbon Charge

By Deborah Elkins
Published: June 22, 2011
Tags: 4th U.S. Circuit Court of Appeals, Judge J. Harvie Wilkinson III, Taxation

A Maryland county’s levy on a single “taxpayer,” an electric company, for its carbon dioxide emissions was not a “tax” that meant the district court could not hear the electric company’s challenge to the levy under the Tax Injunction Act; the 4th Circuit says that because the carbon charge was levied on a single “taxpayer” [...]

Two-Year Limitations Valid on ‘Innocent Spouse’ Relief

By Deborah Elkins
Published: June 20, 2011
Tags: Judge Paul V. Niemeyer, Taxation, U.S. District Court - Eastern District

A wife legally separated from her husband waited too long to contest her liability on their joint tax return, and the 4th Circuit reverses a Tax Court decision that invalidated the IRS regulation that imposes a two-year statute of limitations on equitable relief for an “innocent spouse.” The IRS first began collection efforts for a [...]

Application Inconsistent with City Code

By Deborah Elkins
Published: June 13, 2011
Tags: Justice LeRoy F. Millette Jr., Supreme Court of Virginia, Taxation

In this dispute over a tax abatement available to Troutman Sanders from the city of Richmond for Troutman’s riverfront development to house its law firm, the circuit court did not err in holding that the city’s application of an undisclosed interpretation of the tax abatement program was inconsistent with the city code, which required that [...]

SCC Could Not Deduct Internet Revenues

By Deborah Elkins
Published: June 13, 2011
Tags: Justice S. Bernard Goodwyn, Supreme Court of Virginia, Taxation

The Virginia Supreme Court upholds the State Corporation Commission’s decision that it had no authority to deduct a telecommunications company’s Internet-related revenues when determining the gross receipts it certifies to the Virginia Department of Taxation. Level 3 Communications LLC filed several applications with the SCC for review and correction of determination of gross receipts certified [...]

County’s Tax Action Stays in Federal Court

By Deborah Elkins
Published: April 7, 2011
Tags: Judge James P. Jones, Taxation, U.S. District Court - Western District

An Abingdon U.S. District Court denies plaintiff county’s motion to remand to state court this declaratory judgment action against defendant companies rejecting certain deductions the companies allegedly took in calculating the amount of mineral severance tax due to the county. The county has moved to remand this case to state court pursuant to the Tax [...]

Tax Court decision reversed

By Deborah Elkins
Published: April 5, 2011
Tags: 4th U.S. Circuit Court of Appeals, Judge Allyson K. Duncan, Taxation

The 4th Circuit reverses a decision of the Tax Court, and says the Commissioner of Internal Revenue properly characterized transactions between the Virginia Historic Tax Credit Fund LLC and certain investor partners in federal tax returns as “sales” under IRC 707. transactions and the commissioner appealed. We reverse the Tax Court and find that the [...]

Tax Refund Claim Showed ‘Real Chutzpah’

By Deborah Elkins
Published: April 5, 2011
Tags: 4th U.S. Circuit Court of Appeals, Judge J. Harvie Wilkinson III, Taxation

Saying it takes “real chutzpah” for appellant corporation to claim a refund on taxes it did not overpay, the 4th Circuit rejects the corporation’s appeal and says that in this case, the IRS can recalculate tax liability for a year beyond the statute of limitations. R.H. Donnelly Corporation claimed tax refunds for 1991 and 1992 [...]