Tax Bill On S Corporation Activities Was Timely, Court Affirms

A New York couple’s tax bill over business losses was properly issued within the limitations period, the Second Circuit held Thursday.

Om and Anjali Soni claimed a loss deduction on their 2004 tax return of $1.78 million for Beauville Corporation, an S corporation which Om held ownership interest, and sought a $73,470 refund. The return was filed late and only had Om Soni’s signature. When the IRS began to examine the return, the Sonis filed multiple extensions, extending the limitations period from 2008 to 2015. The IRS ultimately concluded that the Sonis failed to produce evidence of the $1.78 million ...