Monthly Archives: February 2012

S CORP OFFICERS ARE EMPLOYEES: IF THEY PERFORM SERVICES, DISTRIBUTIONS WILL BE RE-CHARACTERIZED AS WAGES IN AMOUNT OF DETERMINED REASONABLE COMPENSATION

Posted on February 25, 2012 by taxpenaltylawyer

Yet another court has held that under the Federal Insurance Contributions Act (FICPA), an officer of an S Corporation is an employee and must be paid reasonable wages if he or she performs services.  Distributions will be re-characterized as wages, … Continue reading →

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TAX COURT GETS LINGUISTICS LESSON ON PARSONAGE ALLOWANCE AND USE OF PHRASE “A HOME”

Posted on February 19, 2012 by taxpenaltylawyer

The Eleventh Circuit Court of Appeals in Commissioner of IRS v Philip A. Driscoll & Lynn B. Driscoll a.k.a. Donna L. Driscoll (NO. 11-12454 filed February 8, 2012), has  reversed the U.S. Tax Court  (Driscoll v. Commissioner, 135 T.C. 557 … Continue reading →

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DIVORCE CASE INVOLVING TAX ISSUES: MEDIATION VERSUS TRIAL

Posted on February 6, 2012 by taxpenaltylawyer

In no small sense every divorce matter is also a tax matter.  Without considering tax consequences, a divorce lawyer cannot tell the client what value he or she will be receiving from the divorce settlement or judicial determination.  Routinely, divorce … Continue reading →

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TAX TIPS FOR NEWLY DIVORCED OR MARRIED TAXPAYERS WITH NAME CHANGE

Posted on February 3, 2012 by taxpenaltylawyer

IRS TAX TIP 2012-23: The IRS released 5 tips for newly divorced or married taxpayers which are reproduced below: If you changed your name after a recent marriage or divorce, the IRS reminds you to take the necessary steps to … Continue reading →

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INNOCENT SPOUSE CASE OF THE MONTH: WHAT WAS IRS THINKING?

Posted on February 1, 2012 by taxpenaltylawyer

The Innocent Spouse case of the month is Wickman  v. Commissioner, T.C. Summary Opinion 2012-8 (January 25, 2012).  This case was heard under the Small tax case procedures, elected by the petitioner under Section 7463, and may not be cited as … Continue reading →

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