U.S. Tax Court Holds Section 17 Corporation Not Legally Distinct from Corporate Subsidiaries

Here is the opinion in Blue Lake Rancheria Economic Development Corp. v. Commissioner:

Blue Lake Rancheria Sec. 17 Tax Court Decision

U.S. Tax Court Decides Miccosukee Tribe v. Commissioner



An excerpt:

The Internal Revenue Service (IRS) Appeals Office sent petitioner a Notice of Determination Concerning Collection Action(s) Under Section 6320 and/or 6330 (notice of determination) with respect to notices of Federal tax lien (NFTLs) and a notice of intent to levy filed to collect petitioner’s unpaid tax liabilities for tax years ended December 31, 2000 through 2005. The sole issue for decision is whether the Appeals Office abused its discretion by sustaining the lien and levy actions for these years. We hold that it did not.

US Tax Court Rejects Navajo Elder’s Claim that Nephew is Dependent under Tribal Common Law

Interesting case, this Begay v. Commissioner.

The court rejects Religious Freedom Restoration Act and Equal Protection claims, holding that a Navajo elder’s care of a nephew is insufficient to confer the required status for deductions under the Internal Revenue Code.

Here is the argument:

Although petitioner concedes that TD is not her qualifying child under section 152(c)(2), she argues that the exclusion from the section 152(c)(2) relationships of certain obligatory clan-based relationships in Navajo culture violates her constitutional rights under both the Free Exercise Clause of the First Amendment to the Constitution and the Fifth and Fourteenth Amendments to the Constitution. According to petitioner, in Navajo culture and tradition children are not only children of the parents; they are also children of the clan. Petitioner submits that a Navajo clan consists of the first clans of the child’s mother, father, maternal grandfather, and paternal grandfather and that the clan relationship may extend beyond the foregoing if, for example, the child is adopted.

Michelle Bachmann’s Indian Tax Case

Here is the case: Manypenny v CIR.

More details from this article, and an excerpt:

Bachmann appears to have represented the IRS only twice in cases tried in U.S. Tax Court _ both small cases _ according to a search of judicial records by attorney Melissa Wexler, a research expert at Westlaw, a major provider of computerized records.

One was a win against a White Earth Indian Reservation resident named Marvin Manypenny, who contended that part of his modest income was not taxable under treaty rights.

Mary Streitz, the Minneapolis lawyer who represented Manypenny in that 1992 case, said she remembers Bachmann as “well dressed and professionally mannered.’’ She said the case was “very, very small’’ but had the twist of involving federal Indian law. Manypenny, she said, was sworn in with a peace pipe. Continue reading