Thank you for a great first year!

  1. Thank you for a great first year!

    Thank you to our clients and business partners for all their support, making our first year such a success! We look forward to many more successful years!

  2. IRS Smartphone Application:

    A report by the Treasury Inspector General for Tax Administration (see http://www.treasury.gov/tigta/auditreports/2011reports/201120076fr.pdf ) indicates that the IRS’s first mobile application, IRS2GO, adequately secures data communications and does not store sensitive or personally identifiable information on the smartphone. IRS2GO was released to the public on 1/20/11 and allows users to check on the status of refunds and receive tax tips. As of 5/15/11, the application had 147,205 iPhone users, and 178,773 Android users had signed up by 3/1/11.

  3. Trade Secret Misappropriation:

    Taxpayer developed and patented a process for making pre-cooked sausage that looked and tasted liked home-cooked sausage. Taxpayer had an arrangement with Pizza Hut that ended up in court. After “a lot of legal wrangling,” taxpayer agreed to drop its last remaining claim, trade secret misappropriation, in exchange for a $15.3 million payment from Pizza Hut. Taxpayer passed its take-home portion of the settlement through to the shareholders as long-term capital gain. In affirming the Tax Court’s and the IRS’s treatment of the payment as ordinary income, the 7th Circuit noted that taxpayer “sought profits and other types of monetary recovery that may properly be taxed as ordinary income from the get-go rather than focusing on the damage to or destruction of its capital asset.” The 7th Circuit also dismissed taxpayer’s alternative argument that Pizza Hut “bought” a capital asset when it misappropriated taxpayer’s process, then completed the sale years when it made the settlement payment. Freda v. Comm. , 108 AFTR 2d 2011-XXXX (