By John G. Hodnette When an S corporation sells its assets, often part of the purchase price is paid via a promissory note issued by the buyer. These promissory notes are part of the purchase price and reported on the installment sale method in Sections 453, 453A, and 453B. Under that method, gain on the sale […]
By Kimberly B. Tyson Of the three forums for judicial review of a federal tax dispute, only the Tax Court is a pre-payment forum, meaning a taxpayer can have a tax case heard by the court before paying the tax. In 2024, approximately 80% of the 20,925 petitions filed in the Tax Court were by […]
By John G. Hodnette The 2017 Tax Cuts and Jobs Act included Section 67(h), which eliminated miscellaneous itemized deductions for tax years beginning after December 31, 2017. The 2025 One Big Beautiful Bill Act made that disallowance permanent. One such eliminated deduction is for unreimbursed employee expenses. They include expenses for transportation, travel fares, lodging away […]
By Chris Hannum It is with deep sadness that we share the news of the passing of Steven (“Steve”) Horowitz, a former Chair of our Section (1990–1991) and a respected presence in the North Carolina tax bar for more than five decades. His loss is felt across our professional community, especially by those who practiced […]
By Brian C. Bernhardt The Qualified Offer rules are part of the broader framework for resolving federal tax disputes. As a general rule, taxpayers who prevail in disputes with the IRS may recover reasonable administrative and litigation costs (“Fees and Costs”) only if the IRS’s position was not substantially justified. However, the Qualified Offer rules […]
By Chris Hannum Dear Tax Section Members, I am honored to serve as Chair of the North Carolina Bar Association Tax Section for the 2025-2026 year. Our Section continues to play an important role in advancing knowledge, promoting collegiality, and providing opportunities for professional growth in the field of tax law. Key Initiatives for 2025–2026 […]
By John G. Hodnette Section 7704 provides a partnership is a publicly traded partnership if interests in the partnership are (1) traded on an established securities market or (2) readily tradable on a secondary market or the substantial equivalent thereof. A publicly traded partnership is generally taxed as a C corporation. That means it is subject […]
By John G. Hodnette As discussed in my February 2025 blog post Eligible S Corporation Shareholders, corporations generally cannot own the stock of S corporations, even if the owner is itself an S corporation. However, where an S corporation is the 100% owner of another corporation, it can make an election for the subsidiary to be […]
By Keith A. Wood I. Wife Not Entitled to Any of Foreclosure Sales Proceeds of Husband’s Marital Home to Pay Husband’s Taxes Since Title was Solely in the Husband’s Name; United States vs. Byers, US Court of Appeals, 133 F 4th 824 (8th Cir. 2025). Mr. and Mrs. Byers lived in Minnesota in a home […]
By Steven B. Long and David P. Heeren Since 1916, Congress has exempted from income tax clubs formed to facilitate social interaction among their members. As a result, country clubs, hunting and fishing clubs, college sororities and fraternities, and tennis, swimming, and other sport clubs, among others, are generally exempt from taxation on income derived […]