The Tax Court properly rejected a taxpayer’s reasonable-cause defense to a gross valuation misstatement penalty. The taxpayer failed to show that it reasonably relied on a tax professional’s advice. Background The taxpayer was involved in an Son-of-BOSS tax shelter scheme. This scheme artificially inflated the taxpayer’s basis in its interest in a partnership. Then. when […]
The post Federal and State Tax News Highlights.J.4.Taxpayer Lacked Reasonable Cause; No Reasonable Reliance on Tax Professional (Palm Canyon X Investments. LLC. CA-D.C.) appeared first on Tax & Accounting Blog.