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.
- Practices: Tax and Trusts & Estates
- 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
A Whistleblower Just Filed a Complaint Against Your Company: Here's What to Do Now
Few situations create more uncertainty than learning that an employee has filed a whistleblower complaint. Questions arise immediately: Is the allegation legitimate? Should the employee be placed on leave? Do we need to notify our insurance carrier? Are we now prevented from disciplining the employee if there are unrelated ongoing work related issues? There is […]
Author: Sean M. Pena
Assignment for the Benefit of Creditors: An Alternative to Bankruptcy for Distressed Businesses
When a business reaches the point where it can no longer service its debts or otherwise resolve its liabilities, management is often faced with a difficult question: is a bankruptcy filing necessary or is there another way to perform an orderly liquidation or sale of the business assets? While Chapters 7 and 11 of the […]
Author: John D. Giampolo
Breaking Down New Jersey’s “Mansion” Tax: What Buyers and Sellers Need to Know
For many years, the New Jersey Mansion Tax has been a significant consideration in high-value real estate transactions. Recent legislative changes, however, have substantially altered how the tax operates, including who is responsible for paying it and the amount owed in certain transactions. Whether you are purchasing, selling, or investing in New Jersey real estate, […]
Author: George McGowan
Estate Planning for Digital Assets Under New Jersey Law
As our personal and financial lives increasingly move online, estate planning must evolve to address a new category of property: digital assets. From email accounts and social media profiles to cryptocurrency and cloud-stored business records, these assets often carry both financial and sentimental value. Yet, without proper planning, they can become inaccessible—or even lost—upon incapacity […]
Author: Marc J. Comer
The Role of Representation and Warranty Insurance in M&A Transactions
In today’s mergers and acquisitions market, representation and warranty (R&W) insurance has become a common feature of deal negotiations. Once used primarily in larger transactions, R&W insurance is now frequently incorporated into middle-market deals as buyers and sellers look for efficient ways to allocate risk and close deals. When structured properly, R&W insurance can help […]
Author: George McGowan
You Just Received a Federal Grand Jury Subpoena in New Jersey: Now What?
Receiving a federal grand jury subpoena is not something most businesses or individuals anticipate. While it can be concerning, a federal grand jury subpoena does not necessarily mean that you are being accused of wrongdoing. It does, however, mean that a federal criminal investigation is underway and that federal prosecutors believe you may possess information […]
Author: Sean M. Pena
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.