The session will review the leading federal tax developments of August 2021. Earlier in the same month when the United States pulled its last troops out of Afghanistan, the Tax Court concluded that an employee of a defense contractor was a bona fide resident of Afghanistan despite her inability to leave the military base. The Tax Court also gave a math lesson and because 50 percent of zero is zero, denied a Section 1244 ordinary loss as a majority of gross receipts were not from the active conduct of a business. Also, the Seventh Circuit Court of Appeals denied innocent spouse status to a lawyer with an MBA married to a tax attorney where the couple owed over $8 million in liability.

Learning Objectives:

• List the latest regulations, rulings, and pronouncements from IRS


• Identify and summarize the most recent decisions out of the Tax Court and Federal District Courts around the country