After the IRS concluded its audit of the Baltimore Orioles Limited Partnership's tax returns for years 1993-1999 and adjusted various partnership items, the personal income tax liability of Wanda King, one of the limited partners, was lessened and she became eligible for a state tax refund totaling $173,364. King filed a claim for refund, but the Comptroller of the Treasury denied it, stating that the refund claim was not timely filed because the IRS's final report regarding adjustments to King's personal tax liability had been issued more than a year before King filed her refund. On appeal, the Maryland tax court ruled in favor of the Comptroller. The circuit court reversed the tax court, and the court of special appeals reversed. The Supreme Court affirmed the court of special appeals, holding (1) the statute of limitations applicable to King's refund claim began to run when the IRS issued to her certain forms on January 3, 2006, and accordingly, King's refund claim had to have been filed within one year of that date; and (2) thus, King's submission on February 2, 2007 was untimely. View "King v. Comptroller" on Justia Law

A property owner, Sheldon Road Associates, filed a valuation complaint in December 2008 that challenged the auditor's June 2008 correction of a clerical error relating to the 2007 tax year. The county Board of Revision (BOR) issued a decision that treated the complaint as pertaining to the tax year 2008. On appeal, the Board of Tax Appeals (BTA) decided that, because Sheldon's complaint was untimely as to the 2007 tax year, the BOR lacked jurisdiction. The BTA remanded with the instruction that the BOR dismiss the complaint. The Supreme Court reversed the decision of the BTA, holding that the BOR did have jurisdiction under the particular facts of this case. Remanded. View "Sheldon Rd. Assocs., LLC v. Cuyahoga County Bd. of Revision" on Justia Law

The Helseths first learned of the underlying foreclosure action and a scheduled auction sale of the property at issue when they were informed by their real estate broker that potential buyers had inquired about the lot. As a result, they moved by order to show cause to stay the sale of the property but Supreme Court declined to sign a temporary restraining order, adjourning the matter to a date after the auction. Consequently, the Helseths appeared at the auction and submitted a winning bid, paying a deposit. However, they failed to remit the remaining balance and the County auctioned the property to another party. At issue was whether the County provided sufficient notice, in accord with constitutional due process, of the release option offered pursuant to Local Law No. 7 of County of Orange. The court concluded that the release option in this appeal was a discretionary, permissive remedy made available to the Helseths after the property was lawfully foreclosed and conveyance to the County did not establish or extend a property right entitled to due process protection as any property interests held by the Helseths were lawfully extinguished as of the expiration of their right to redemption and the entry of the judgment of foreclosure. Rather, the release was simply an option to repurchase property then-owned by the County. Accordingly, the order of the Appellate Division should be reversed, with costs, and that branch of respondents' motion, which was to allow them to pay back taxes and interest due for a release with respect to the property, denied. View "Matter of Orange County Commr. of Fin. (Helseth)" on Justia Law

This case concerned the Federal Insurance Contribution Act (FICA), 26 U.S.C. 3101 et seq., and certain employment taxes FICA imposed upon employers. After a bench trial on the merits, the district rendered a tax deficiency judgment against DEWPC for unpaid FICA taxes and DEWPC appealed. The court held that the district court did not abuse its discretion in admitting the government's expert testimony on the issue of reasonable compensation and, because the district court applied the correct legal standard, its determination on Watson's FICA wages was affirmed. Accordingly, the judgment of the district court was affirmed. View "David E. Watson, P.C. v. United States" on Justia Law

Petitioners, natives and citizens of Japan who have been lawful permanent residents of the United States since 1984, appealed a removal order after husband pleaded guilty to one count of willfully making and subscribing a false tax return in violation of 26 U.S.C. 7206(1) and wife pleaded guilty to one count of aiding and assisting in the preparation of a false tax return in violation of 26 U.S.C. 7206(2). At issue was whether aliens who commit certain federal tax crimes were subject to deportation as aliens who have been convicted of an aggravated felony. The Court held that violations of section 7206(1) and (2) were crimes "involv[ing] fraud or deceit" under 8 U.S.C. 1101(a)(43)(M)(i) and were therefore aggravated felonies as that term was defined in the Immigration and Nationality Act, 8 U.S.C. 1101 et seq., when the loss to the Government exceeded $10,000. Because petitioners were subject to deportation as aliens who have been convicted of aggravated felonies, the Court affirmed the judgment of the Court of Appeals. View "Kawashima v. Holder" on Justia Law

Taxpayer Margaret Murray appealed a superior court's order that dismissed her tax abatement appeal. On appeal to the Supreme Court, she argued that the superior court erroneously concluded that she could not appeal the abatement decision because she failed to challenge the valuation of the property in the appraisal process.  Upon review, the Court concluded that Taxpayer's abatement appeal to the superior court was not foreclosed by her failure to appeal the valuation of her property, and reversed and remanded the case for further proceedings. View "Murray v. City of Burlington" on Justia Law

RECAP, a tax-exempt charitable organization and owner of properties in the City of Middletown, commenced a CPLR article 78 proceeding against the City, challenging the legally of the City's tax assessments. In this appeal, the court was asked to determine the statute of limitations governing a taxpayer's claim against a school district for money had and received arising from an erroneous assessment of school taxes and when such claim accrued. The court held that Education Law 3813 (2-b)'s one-year statute of limitations applied and that the claim for money had and received accrued when the taxes were paid. Therefore, the court concluded that RECAP's cause of action for money had and received accrued when it paid the taxes. Even assuming RECAP's last payment was made "under protest" in October 2007, as RECAP claimed, RECAP did not commence this action until April 2009, outside the one-year statute of limitations, rendering RECAP's claim time-barred. Accordingly, the order of the Appellate Division should be affirmed. View "Regional Economic Community Action Program, Inc. v Enlarged City School Dist. of Middletown" on Justia Law

In this federal estate tax refund action, the Marshal Naify Revocable Trust appealed the district court's decision granting the Government's motion for judgment on the pleadings pursuant to Rule 12(c). After Naify's death, the Estate deducted $62 million on its federal estate tax return for the estimated amount of California income that it might owe on the $660 million gain if Naify's California tax avoidance plan failed. The court affirmed the judgment and agreed with the district court that the settlement amount was dispositive because it "determine[d] as a factual matter how much the claim against the estate [was] worth and [was] the only moment at which the value of the claim [became] 'certain.'" View "Naify Revocable Trust, et al. v. United States" on Justia Law

Petitioner, a registered representative and principal with various brokerage firms over the years, sought review of a final order of the Commission, which concluded that he willfully failed to disclose the existence of certain tax liens filed against him. The Commission's conclusion that petitioner acted willfully, which followed his appeal of various determinations of the Financial Industry Regulatory Authority (FINRA) and its predecessor, the National Association of Securities Dealers (NASD), subjected him to statutory disqualification from the securities industry. The court concluded that there was substantial evidence supporting the SEC's factual finding that petitioner failed to disclose the liens on his Forms U-4 and that the liens were material. Moreover, the SEC did not abuse its discretion when it determined that petitioner's conduct constituted a willful violation of the securities provisions relating to applications and registration. Therefore, the court denied the petition and affirmed the Commission's order. View "Mathis v. U.S. Securities & Exchange Commission" on Justia Law

Petitioners and its affiliates, manufacturers and distributors of food and beverages in the United States, sought a declaration that the Texas franchise tax was unconstitutional, Tex. Tax Code 171.0001-.501, an injunction prohibiting its collection, and mandamus relief compelling the Comptroller to refund the taxes they paid from 2009 through 2011. Petitioners did not pay their taxes under protest or request a refund from the Comptroller, statutory requisites to taxpayers suits in the district court but not, relators contended, for suit in this court. The court disagreed and held that the statutory requisites were conditions on the legislative waiver of the State's immunity from suit. Accordingly, the court dismissed the case for want of jurisdiction. View "In re Nestle USA, Inc., Switchplace, LLC, and NSBMA, LP, Relators" on Justia Law