The year of 2012, as with previous years, brought taxpayers a mixed cup of auld lang syne cheer. Three top tax cases of 2012 include the following:
National Federation of Independent Business v. Sebelius. The biggest tax case was what many initially considered a nontax case. Essentially, the U.S. Supreme Court held that the individual insurance requirement under Obamacare was a penalty that violated the Commerce Clause. However, because the penalty was actually a tax, Obamacare was constitutional.
U.S. v. Quality Stores. The Sixth Circuit Court of Appeals held that severance pay paid due to an involuntary layoff is not subject to FICA employment taxes.
U.S. v. Roberts and UBS AG v. Olenicoff. In the Roberts matter, a district court sentenced the married couple to 12 months and 1 day in prison after they were convicted of not reporting income from their foreign financial accounts. In Olenicoff, after the taxpayer pleaded guilty to not reporting about $200 million in offshore accounts to the IRS, he sued UBS. The district court ruled against Olenicoff citing his guilty plea in which he claimed that “he was not an innocent dupe” and he could have pleaded not guilty if UBS misled him. These cases represented the U.S. government’s now aggressive investigation of U.S. citizens with unpaid federal income tax due on offshore assets.
Givner & Kaye focuses on sophisticated income tax planning and compliance, tax litigation and procedure, estate planning, and asset protection plans for individuals and businesses in Beverly Hills, Calabasas, West Los Angeles, Hollywood, and other areas of Los Angeles, Orange, Ventura, San Bernardino, Riverside and Santa Barbara Counties. Call Los Angeles Estate Planning and Asset Protection Plan Attorneys Givner & Kaye at (310) 207-8008 today.