Case Summaries 05/2013

(appeal of summary judgment in favor of defendants in suit in which plaintiff struck cow with her automobile after cow allowed to wander due to negligence of its owner; court held that strict liability ruling requiring knowledge of vicious tendencies of animals does not apply to domestic agricultural animals that stray from the property; summary judgment reversed and case remanded).


(taxpayer sought waiver of 60 day timeframe for IRA rollover due to medical issue; taxpayer received distribution from decedent husband's IRA, but failed to rollover within 60 day time frame, due to mental state and medical condition following death of husband; taxpayer established the facts of husband's lengthy illness and her disabling disease through documentation from doctor; distribution paperwork filed for what taxpayer thought was two life insurance policies; while preparing returns for that year, error noted that one policy was an IRA; once identified rollover was deposited; waiver of 60-day timeframe granted). 


(IRS points out that IRS has authority to accept amended returns required by Sec. 4.02 of Rev. Proc. 2011-34 to make late election to treat all interests in rental real estate as a single rental real estate activity by attaching statement required by Treas. Reg. Sec. 1.469-9(g)(3) to the amended return for the most recent tax year). 


(QSST purchased stock from third party in exchange for note:  QSST made payments on note, including interest; interest passes through to beneficiary and is deductible as investment interest expense on beneficiary’s return in accordance with Notice 89-35 and 88-37).


(under federal regulations, apple growers must establish at least 50% of production was sold as fresh apples in one or more of four previous years; plaintiff made claim for crop insurance for 2011 losses of apple crop and designated 2010 as year in which he met the 50% requirement; arbitrator held only 38% of crop was sold as fresh, plaintiff argued it was 58%; plaintiff sought court vacation of arbitration award; court upheld arbitration award because it was not irrational). 


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