2019-09-03 No Horse, No Business

Current Federal Tax Developments for the week of September 3, 2019: No Horse, No Business

• Tax Court finds that taxpayer did not have a trade or business of raising/showing horses since she didn’t have a horse
• Tax Court rejects IRS’s “step in the shoes” theory for gifted partnership interest with interest from debt-financed distribution received by donor
• IRS accepts court’s revision of IRA beneficiary, surviving spouse allowed to treat IRA as her own
• Coffeehouse was not a §501(c)(3) charitable organization
• Notice of deficiency sent to addresses used on returns found to be sent to last known address

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