Tax Court, overturned

An appeals court decision that reversed a U.S. Tax Court ruling on a foreign investor's profitable transaction also gave financial advisors and tax professionals a helpful reminder.

The IRS must return $2.3 million the investor paid for the "inventory gain" on her windfall 16 years ago from selling a large position related to the 5-Hour Energy drink, the D.C. Circuit Court ruled last month. A tax lawyer told me that the case displays why foreign investors should use a corporate entity rather than investing directly.

See more in the story below. And have a great week.