Ocean Pines Ass’n Inc. v. Comm’r of Internal Revenue A tax-exempt subdivision association must pay taxes on net income from two parking lots and a beach club that benefit the private interests of association members rather than the general public; the 4th Circuit affirms the Tax Court judgment, as the income is not “substantially related” to the association purpose of promoting social welfare, but is taxable as “unrelated business taxable income.”
CarMax Auto Superstores West Coast, Inc. v. South Carolina Department of Revenue The Department of Revenue first bears the burden of proving the gross receipts formula does not fairly represent the plaintiff-taxpayer’s business activity in South Carolina. Second, the Department bears the burden of proving that its alternative accounting method is reasonable and more fairly represents the taxpayer’s business activity in South Carolina.
Emerson Electric Co. v. South Carolina Department of Revenue Where the taxpayer’s income was allocated to its principal place of business, Missouri, then the taxpayer’s related expenses were properly allocated to Missouri also.
Capital One Financial Corp. v. Comm’r of Internal Revenue The 4th Circuit says Capital One credit card company may not retroactively change its accounting method for reporting credit-card late fees on its 1998 and 1999 tax returns in order to reduce its tax liability by about $400 million, nor may it deduct the estimated costs of coupon redemption related to its MilesOne credit card program before customers actually redeem those coupons.
CFRE, LLC v. Greenville County Assessor Where appellant is a limited liability company (LLC) that is not taxed as a corporation, and where the LLC has only one member who herself meets all the requirements of S.C. Code Ann. ¤ 12-43-220 with respect to the LLC’s real property, the LLC is entitled to taxation at the legal residence ratio.
Clarendon County v. TYKAT, Inc. Even though the owner of the land at issue is a tax-exempt political subdivision, since the defendant-tenant is not tax-exempt, the tenant must pay property taxes on its leasehold.
We affirm the Administrative Law Court’s ruling that defendant must pay real property taxes on its leasehold and the ALC’s denial of the county’s motion for attorney’s fees.
GenOn Mid-Atlantic LLC v. Montgomery County, Md. 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” and formed part of a wide-ranging regulatory program, the district court had jurisdiction over the company’s claims.
Jones v. Comm’r of Internal Revenue 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.”
R.H. Donnelly Corp. v. U.S. (Lawyers Weekly No. 001-068-11, 13 pp.) (Wilkinson, J. ) No. 10-1365, March 31, 2011; USDC at Raleigh, N.C. (Boyle, J.) 4th Cir. Click here for the full text of the opinion. Holding: Saying it takes “real chutzpah” for appellant corporation to claim a refund on taxes it did not overpay, [...]
Home Concrete & Supply LLC v. U.S. (Lawyers Weekly No. 001-032-11, 18 pp.) (Wynn, J.) No. 09-2353, Feb. 7, 2011; USDC at New Bern, N.C. (Flanagan, Ch.J.) 4th Cir. Click here for the full text of the opinion. Holding: Taxpayers, including appellant company and a businessman who sold his interest in the company, win their [...]
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