Tax Section

Earnouts: Ordinary Income or Capital Gains

My prior NCBarBlog post, Section 453 Trap for S Corporation Asset Sales, notes the purchase price for a business often includes an earnout that provides…

Federal Income Tax Update

I. IRS Audit Statistics The 2025 Internal Revenue Service Data Book contains audit statistics for years 2015 through 2023, as of the fiscal year ended…

60-Month Rule for Check-the-Box Elections

In a prior NC Bar blog post, Classification of LLCs Under the Check-the-Box Regulations, I discussed the flexibility of LLC tax treatment due to the…

Three New Changes at the Tax Court Impacting the Queen City

Many know that the U.S. Tax Court is a court of national jurisdiction that travels to cities across the country. To file a petition in Tax Court, taxpayers…

Constructive Receipt Doctrine

Taxpayers intuitively believe they will not be taxed until they have cash or other consideration in their hands. However, the constructive receipt doctrine…

Federal Income Tax Update

I. Tax Court Finds Equitable Tolling May Excuse a Late-Filed Tax Court Petition; Gilbert vs. Commissioner; TC Memo 2026-10. The IRS examined Mr. and Mrs.…

PTET Election Under The OBBBA

As discussed in New North Carolina PTE Tax Can Reduce Federal Income Taxes (December 14, 2022), the pass-through entity tax (the “PTET”) elections enacted…

Federal Income Tax Update

I. Conservation Easement Deed did not Constitute a CWA because it did not Contain a Merger Clause; Martin vs. Commissioner, TC Memo 2026-39. A.…

S Corporation F Reorganizations Under Rev. Rul. 2008-18

An F reorganization, as discussed in The Basics of F Reorganizations, is a tax-free “mere change in identity, form, or place of organization of one…

Pandemic-Era Federal Tax Refunds: You May be Eligible, but the Deadline is Quickly Approaching

A recent case in the Court of Federal Claims confirmed taxpayers may be entitled to refunds of interest and penalties paid during the COVID-19 pandemic if…