James F. McDonough
Of Counsel
732-568-8360 jmcdonough@sh-law.comFirm Insights
IRS Loses Court Case Against Yankees Co-Owner Hal Steinbrenner
Author: James F. McDonough
Date: June 18, 2013
Key Contacts
Back
A court case against Yankees co-owner and managing partner Hal Steinbrenner ruled that he will not be required to repay the Internal Revenue Service $670,000 in what the agency called an “erroneous” tax refund that it mistakenly extended to Steinbrenner and his wife in 2009, a federal court ruled.
The issues go back to IRS audits of the Major League Baseball team’s parent company for 2001 and 2002, as well as amended returns filed by Steinbrenner during the 2001 tax year, Accounting Today reports. Hal Steinbrenner is one of the children of the late George Steinbrenner, the latter of whom settled the audit disputes in an agreement with the IRS in 2007. As part of that agreement, certain alterations were made to the tax returns of the beneficiaries of a family trust, including Hal Steinbrenner’s share, the news source explains.
Following the adjustments, Hal Steinbrenner paid his taxes in 2008, and filed an amended 2001 tax return in 2009 seeking a refund as a result of a $6.8 million net operating loss carried back from 2002. The tax agency extended a refund to Steinbrenner, only to argue later that the amount never should have been approved because it passed the statute of limitations.
In a 19-page ruling, U.S. District Judge Steven Merryday detailed the intricacies of U.S. tax law and said many of the phrases and jargon in the Internal Revenue Code are essentially “nonsense,” according to the Tampa Bay Times.
Merryday referred to the complex tax rules as “the forbidding arcana of partnership taxation, a subject intractably muddled by archaically and chaotically composed – and therefore, nearly inscrutable – statutes and regulations and by the bold proliferation and proud maintenance of abstruse distinctions and obscure jargon,” the Tampa Tribune reports.
The IRS failed to comment on the case, and has not yet announced whether it will appeal the ruling in federal court.
- Locations: Red Bank, NJ, New York City, Little Falls, NJ
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Related Posts
See all
Breach of Contract Explained: Types and Consequences
Breach of contract disputes are the most common type of business litigation. Therefore, nearly all New York and New Jersey businesses will likely have to deal with a contract dispute at least once. Understanding when to file a breach of contract lawsuit and how long you have to sue for breach of contract is essential […]
Author: Brittany P. Tarabour
How to Dissolve a Corporation in New Jersey: A Step-by-Step Guide
Closing your business can be a difficult and challenging task. For corporations, the process includes formal approval of the dissolution, winding up operations, resolving tax liabilities, and filing all required paperwork. Whether you need to understand how to dissolve a corporation in New York or New Jersey, it’s imperative to take all of the proper […]
Author: Christopher D. Warren
Gross Lease vs. Net Lease: Understanding the Key Differences
Commercial leases can take a variety of forms, which is often confusing for both landlords and tenants. Understanding the different types, especially the gross lease structure, is important when selecting the lease that best suits your needs. One key distinction between lease types is how rent is calculated and paid. This article addresses the two […]
Author: Robert L. Baker, Jr.
What to Do If You Are Impacted by a Retailer Bankruptcy Part 2
Over the past year, brick-and-mortar stores have closed their doors at a record pace. Fluctuating consumer preferences, the rise of online shopping platforms, and ongoing economic uncertainty continue to put pressure on the retail industry. When a retailer seeks bankruptcy protection, a myriad of other businesses are often impacted. Whether you are a supplier, customer, […]
Author: Brian D. Spector
The Current Administration's Proposals for the Financial Services and Banking Industries Will Affect Your Business
Since his inauguration two months ago, Donald Trump’s administration and the Congress it controls have indicated important upcoming policy changes. These changes will impact financial services policies and priorities. The changes will particularly affect cryptocurrency, as well as banking rules and regulations. Key Regulatory Changes in Cryptocurrency For example, in the burgeoning cryptocurrency business environment, […]
Author: Dan Brecher
Tips for Commercial Landlords Impacted by Wave of Retailer Bankruptcies Part 1
The retail sector has experienced a wave of bankruptcy filings over the last year. Brick-and-mortar businesses in financial distress include big-name brands like Big Lots, Party City, The Container Store, and Vitamin Shoppe. When large retailers seek bankruptcy protection, they are not the only businesses impacted. Landlords can be particularly hard hit. While commercial landlords […]
Author: Brian D. Spector
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Sign up to get the latest from our attorneys!
Explore What Matters Most to You.
Consider subscribing to our Firm Insights mailing list by clicking the button below so you can keep up to date with the firm`s latest articles covering various legal topics.
Stay informed and inspired with the latest updates, insights, and events from Scarinci Hollenbeck. Our resource library provides valuable content across a range of categories to keep you connected and ahead of the curve.