While the Learning Resources case provides important, but probably not the final, authority concerning tariff constitutionality, it definitely has clear implications on another issue – tariff refunds. The concept is that if persons paid moneys pursuant to unconstitutional tariffs, these persons should be entitled to receive refunds of their tariff payments.
The White House has at times used the phrase, “No Tax on Social Security”, in generally describing the new “senior” deduction. Such description is not correct. Social Security benefits remain taxable under current law. In addition, the eligibility requirements for Social Security do not match up with the eligibility requirements for the “senior” deduction. For example, you can start collecting Social Security benefits as early as age 62, but cannot claim the “senior” deduction until age 65.
One of the basic principles of tax law is the economic substance doctrine. As recognized for many years in case law, under the economic substance doctrine, courts would generally examine both whether a transaction had economic substance beyond tax benefits and whether there was a nontax business purpose for entering the transaction; transactions that could not meet the economic substance doctrine could be disregarded or disallowed for tax purposes. The Tax Court in the Patel case concluded that (1) the taxpayer’s captive insurance company transactions did not have economic substance under the two-part “economic substance doctrine” test.
With the Supreme Court’s decision to stay the “Texas Top Cop Shop December 3” injunction, the Supreme Court’s decision only related to the nationwide injunction issued in the Texas Top Cop Shop case; it did not at all relate to the nationwide injunction issued in the Smith case. As a result, as of January 24, 2025, the general advice remained that reporting companies that had not yet made filings with FinCEN to comply with the BOIR requirement of the CTA should hold off on doing so.
In school, we learn that there are three branches of the United States government – legislative, executive, and judicial. In fact, many commentators believe that there is a fourth branch – the administrative branch. Carved out of the executive branch, the administrative branch includes cabinet and other executive departments and independent agencies.
There are two types of reporting companies – “domestic reporting companies” and “foreign reporting companies.” It is important to remember that reporting companies that were formed or registered to do business in the United States on or before December 31, 2023 are required to comply with applicable “FinCEN” reporting by January 1, 2025 and reporting companies that were formed or registered to do business in the United States during 2024 are required to comply with applicable “FinCEN” reporting within 90 calendar days after receiving notice of such formation or registration.
Relative to its decisions concerning other areas of the law, the United States Supreme Court generally does not issue many decisions concerning tax law. Thus, when the Supreme Court does issue a tax decision, it definitely is noteworthy and deserves attention.
USA President Franklin D. Roosevelt’s New Deal created the Securities and Exchange commission as part of the 1933 Act. It was designed to prevent business people from raising capital from the general public. Under the guise of consumer protection, the regulation made it illegal for entrepreneurs to advertise the offering of new shares in a company. Except to wealthy insiders—called accredited investors. The regulation relied upon a four-part test called ‘Howey’ to define which offers are considered securities.
It officially went into effect October 3, 2015. The Dodd-Frank mandated (CFPB directed) residential real estate closing regulation (known as the “TRID Rule”). If you’re participating in a residential real estate transaction in America, then these closing rules shall apply.
It’s worth repeating. These rules (timelines!) apply to any home purchase:
Real estate schemes conjured up in Washington D.C. that no one tells you about. If you are buying and selling property for residential real estate investment in America, then learn about the selling restrictions that President Obama imposed on private investors. But not on the government class.