Second Circuit affirms tax after taxpayer claimed 50% S corporation ownership

Karen Veeraswamy v. Commissioner, No. 25-102-cv, BL 40680. 2nd Cir., Court Opinion.

The Second Circuit upheld a Tax Court ruling that taxed a taxpayer on half of an S corporation’s 2014 income because she repeatedly asserted she owned 50% of the company in related bankruptcy proceedings and failed to prove she gave up that interest.

Holding

The Court upheld the Tax Court’s conclusions that in 2014, Karen Veeraswamy owned half of Ashand E…