David E. Kahen

December 18, 2024 | New York Law Journal

The authors write "Failure to document a transfer of funds between related parties as a loan may lead to the transfer's being characterized as something other than a loan for income tax purposes, notwithstanding the transferee's intent to repay the amount advanced."

By David E. Kahen and Elliot Pisem

10 minute read

October 16, 2024 | New York Law Journal

This column discusses two recent Tax Court cases and there application to status as an S corporation shareholder.

By David E. Kahen and Elliot Pisem

8 minute read

September 18, 2024 | New York Law Journal

"Determining the New York taxation of nonresident employees who receive deferred compensation adds an additional level of complexity," writes David E. Kahen.

By David E. Kahen

7 minute read

August 14, 2024 | New York Law Journal

The conclusion of the court that the installment sale rules continued to apply where a section 1042 election had been made is surprising and it remains to be seen whether the Commissioner will contest this result.

By Elliot Pisem and David E. Kahen

9 minute read

June 18, 2024 | New York Law Journal

In two recent Tax Court decisions, it was determined that, although there had been a loss in value attributable to activities ultimately determined to be crimes, no theft loss was allowable to the petitioners because no crime in the nature of theft had been committed against the petitioners themselves to deprive them of property that they owned.

By Elliot Pisem and David E. Kahen

9 minute read

April 17, 2024 | New York Law Journal

'Acqis Technology v. Commissioner' confirms the continued vitality of the doctrine in the context of an apparent scheme to evade tax with respect to proceeds attributable to the settlement of patent infringement claims.

By David E. Kahen and Elliot Pisem

9 minute read

February 14, 2024 | New York Law Journal

In 'Estate of Fry v. Commissioner', payments by one S corporation to another under identical ownership were recorded as intercompany loans. Following issuance of a notice of deficiency premised on the shareholder's stock basis in the debtor corporation being insufficient to support the losses claimed by him, the petitioners were ultimately successful in persuading the Tax Court that the transfers should be recharacterized as distributions by one corporation to its shareholder, coupled with contributions by that shareholder to the other corporation.

By David E. Kahen and Elliot Pisem

9 minute read

December 20, 2023 | New York Law Journal

Under some circumstances, sellers of stock of a corporation may be liable as transferees for corporate obligations arising before or in connection with the closing. In 'Dillon Trust Co. v. United States', the Court of Federal Claims concluded that the sellers of the stock of two corporations were liable for tax obligations of the corporations attributable to sales of assets for notes prior to the closing of the stock sale.

By David E. Kahen and Elliot Pisem

9 minute read

October 18, 2023 | New York Law Journal

'Hyatt Hotels v. Commissioner' underscores that even an approach to accounting for income and expenses that has been applied consistently by a taxpayer over many years is not necessarily a "method of accounting" subject to the government's broad power to impose adjustments under Section 481(a).

By David E. Kahen and Elliot Pisem

10 minute read

August 16, 2023 | New York Law Journal

The article discusses a recent Tax Court order in Computer Sciences Corporation v. Commissioner. The order, after discussing various issues raised by the government relating to substance over form, step transactions, nonqualified preferred stock and other matters, denied a motion by the petitioner for summary judgment that it was entitled to a large capital loss.

By Elliot Pisem and David E. Kahen

9 minute read