Tax strategies that protect and perform.

Structuring transactions and tax planning is often the most economically significant aspect of value-added lawyering. We create efficient structures that help our clients achieve their business and personal objectives and maximize their after-tax position.
Albrecht v. United States
Ms. Albrecht, age 83, transferred a significant number of shares of Beneficial Finance Company to her family members and died within three years.
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Albrecht v. United States

Ms. Albrecht, age 83, transferred a significant number of shares of Beneficial Finance Company to her family members and died within three years.

Under then current estate tax law, any gift transfer made within three years of the donor’s death was presumed to be given by the decedent “in contemplation of death” and estate taxes unless the decedent’s estate could prove the contrary. Mrs. Albrecht’s estate contended that Mrs. Albrecht had no thought of dying but instead purchased new clothes and was seen dancing with Ted Lewis in a Springfield, Illinois, nightclub during the three-year period. No. T-2900 (D. Ill. 1966).

Benson v Commissioner
Mr. Benson established a ten-year trust and transferred to it a building which his corporation then leased.
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Benson v Commissioner

Mr. Benson established a ten-year trust and transferred to it a building which his corporation then leased.

Mr. Benson borrowed substantially all of the rents generated by the building from the trust. The Internal Revenue Service contended that Mr. Benson “virtually owned” the trust property by reason of the substantial loans from the trust to Mr. Benson. No. 7331-79 (U.S.T.C. 1979).

Biefeldt v. Commissioner of IRS
Mr. Bielfeldt and his partnership claimed to be a dealer rather than an investor with respect to government securities and were thus entitled to ordinary vs. capital losses generated from his activities.
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Biefeldt v. Commissioner of IRS

Mr. Bielfeldt and his partnership claimed to be a dealer rather than an investor with respect to government securities and were thus entitled to ordinary vs. capital losses generated from his activities.

The Internal Revenue Service contended that Mr. Bielfeldt was an investor. No.116-96 (U.S.T.C. 1996).

Brady v. United States
Mr. Brady, a self-employed contractor, engaged individuals to provide construction services on his behalf as independent contractors.
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Brady v. United States

Mr. Brady, a self-employed contractor, engaged individuals to provide construction services on his behalf as independent contractors.

The Internal Revenue Service claimed that the individuals were employees rather than independent contractors and that Mr. Brady owed payroll taxes as to the amounts paid to the individuals. 877 F. Supp. 444 (D. Ill. 1994).

Custom Builders, Inc. v. Commissioner of the IRS
Custom Builders adopted a defined benefit plan. The plan actuary determined the plan’s normal cost using an interest rate assumption of 5%.
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Custom Builders, Inc. v. Commissioner of the IRS

Custom Builders adopted a defined benefit plan. The plan actuary determined the plan’s normal cost using an interest rate assumption of 5%.

The Internal Revenue Service contested actuarial assumptions.  Pursued tax refund on theory of first impression that actuary was an ERISA fiduciary in setting the plan’s actuarial assumptions and methodology.  858 T.C.M. 696 (1989).

D.J. Mahoney Co. v. Commissioner
The Internal Revenue Service contended that the taxpayer had accumulated profits in excess of accumulations.
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D.J. Mahoney Co. v. Commissioner

The Internal Revenue Service contended that the taxpayer had accumulated profits in excess of accumulations.

The Internal Revenue Service contended that the taxpayer had accumulated profits in excess of accumulations required to conduct its recycling and scrap material processing business, the replacement of its key employee, the purchase of additional equipment and machinery, related costs of operating its business and assessed tax deficiencies for the taxpayers’ years ended June 30, 1995 and 1996.  Pursued refund of accumulated earnings taxes paid on the theory that the accumulations were not excessive.  D.J. Mahoney Co. v. United States of America, Central District, Peoria Division Case No. 00-1436.