On remand from the Supreme Court (Boulware v. United States, 128 S.Ct 1168 (Mar. 3, 2008), rev'g 470 F.3d 931 (9th Cir. 2006)), the Ninth Circuit yesterday held that the owner of a closely held corporation did not offer sufficient proof during his trial on tax charges to support his claim that money he took out from his unprofitable business was a nontaxable return of capital. United States v. Boulware, No. 05-10752 (9th Cir. Mar. 9, 2009). For a detailed analysis of the opinion, see Jack Townsend (Townsend & Jones, Houston), Boulware Wins the Battle Only to Lose the War.
