Taxing, Briefly
Taxing, Briefly
Taxing, Briefly

Taxing Social Media Influencers – Taxing, Briefly

Harsh Truths Taxing social media influencers? Way harsh, we know. Influencers have it tough anyhow, what with having to photograph everything they eat, or wear, or sneeze on.  Nevertheless, your fearless editors at Briefly Taxing thought it prudent to discuss some harsh truths about getting your money for nothing (and your "gifts" for free)—just in case you were thinking about getting into the social media influencing gambit. In this post, we won’t cast aspersions against any one influencer, mostly because I know so few, but, also, I have been told by those more knowledgeable than I that one shouldn’t hate the player when the game is to blame…or something like that.  Nonetheless, there are some practical tax considerations to being internet-beautiful, and isn’t that why you, dear readers, came in the first place? Things I Don’t Understand There is only one thing in the world worse than being talked about,…

0 Comments
May 21, 2021
Taxing, Briefly
Taxing, Briefly
Taxing, Briefly

Taxation of Cryptocurrency, a Primer – Taxing, Briefly

In the 36 years I have been on this mortal plane, I can’t remember ever thinking I was, as the kids say (or said in the 1990s) hip.  In full candor, the only time your fearless editor uses the word is when I explain to my sprightly wife that my hip hurts because it’s going to rain, and I’ve been sitting on the lawn chair on my porch too long, yelling at the whippersnappers to get of my lawn. Nonetheless, Briefly Taxing is all about staying at the forefront of tax issues, and so this old codger decided to write an article for you folks, who might just be a little hipper than I am. (Is hipper even a word?) Today, we look at the tax implications of acquiring and selling/exchanging cryptocurrency. Let me add, that the proposals on the taxation of cryptocurrency change exceedingly often.  Why?  Because Congress hasn't quite…

0 Comments
May 20, 2021
Taxing, Briefly
Taxing, Briefly
Taxing, Briefly

The 2021 Child Tax Credit – Taxing, Briefly

I’m not saying that you had kids for the tax breaks, but no one at Briefly Taxing would judge you if this consideration didn’t play a small role in the decision to bring your dependents (children, rather) into the world.  With that having been said, let's talk about the 2021 child tax credit. Congress Had Kids, Too (Apparently) Like a groundhog seeing its shadow in February, at some point in 1997, Congress chanced upon its collective parental conscience, and enacted what is now referred to as the Child Tax Credit.  The Child Tax Credit hearkens back to a chilly October day in 1976, when the Child and Dependent Care Tax Credit was established.  Only one year prior, Congress enacted the Earned Income Tax Credit. In bygone years, there was even a dependency exemption, but this exemption went the way of Old Yeller and itemized deductions with the tax reform in…

0 Comments
May 18, 2021
Income Tax Issues
Income Tax Issues / Memorandum Opinions / Tax Opinions

Estate of Morrissette v. Commissioner
T.C. Memo. 2021-60

On May 12, 2021, the Tax Court issued a Memorandum Opinion in the case of Estate of Morrissette v. Commissioner (T.C. Memo. 2021-60). The primary issue presented in Estate of Morrissette v. Commissioner was whether IRC § 2036 or IRC § 2038 applies to recapture significant inter vivos transfers made as part of the split-dollar agreements, and, if not, whether the special valuation rule of IRC § 2703 applies to require that the valuation disregard a provision in the split-dollar agreements that restricts the parties’ right to unilaterally terminate the agreements. Initial Clarification in Estate of Morrissette v. Commissioner The decedent does not, as far as I could discern from my research, bear any relation to the Canadian-American singer-songwriter Alanis Morissette, who known as much for her emotive mezzo-soprano voice as her utter failure to be able to appropriately distinguish between events that are unfortunate and those that are, actually, Ironic.…

1 Comment
May 12, 2021
Income Tax Issues
Income Tax Issues / Memorandum Opinions / Tax Opinions

BRC Operating Company LLC v. Commissioner
T.C. Memo. 2021-59

On May 12, 2021, the Tax Court issued a Memorandum Opinion in the case of BRC Operating Company LLC v. Commissioner (T.C. Memo. 2021-59). The primary issue presented in BRC Operating Company LLC v. Commissioner was whether and when a cost of goods sold (COGS) offset may be recognized for tax purposes. Background to BRC Operating Company LLC v. Commissioner During tax years 2008 and 2009 the petitioner paid approximately $180 million to acquire hundreds of thousands of acres of minerals and lease interests in West Virginia, Pennsylvania, Ohio, and Kentucky (leases). The petitioner reported, as costs of goods sold, estimated drilling costs for natural gas exploration and mining. The amounts in issue claimed as costs of goods sold are $100 million for tax year 2008 and $60 million for tax year 2009. It should be noted that the petitioner did not drill, receive drilling services from third parties, or receive…

0 Comments
May 12, 2021
Procedural Issues
Memorandum Opinions / Procedural Issues / Tax Opinions

Spain v. Commissioner
T.C. Memo. 2021-58

On May 11, 2021, the Tax Court issued a Memorandum Opinion in the case of Spain v. Commissioner (T.C. Memo. 2021-58). The primary issue presented in Spain v. Commissioner was whether the petitioners proved that their petition had been timely mailed such that the Tax Court had jurisdiction to entertain their case. The Timing Issue in Spain v. Commissioner The IRS issued petitioners separate notices of determination dated September 10, 2019, sustaining the underlying collection action. Tracking data from the U.S. Postal Service (USPS) show that these notices were mailed the following day and delivered to petitioners on September 16, 2019. The notices advised petitioners: “If you want to dispute this determination in court, you must file a petition with the United States Tax Court within 30 days from the date of this letter.” See IRC § 6330(d)(1). Because the notices were mailed on September 11, 2019, the 30-day period expired…

0 Comments
May 11, 2021