Partnership Determination of Eligible Basis for Energy Grants

Article:  This item discusses whether a partnership should take a partner’s Sec. 743(b) adjustment into account in determining eligible basis of qualified energy property that the partnership has not yet placed in service.
Published on October 04, 2011

IRS Matching Program for Forms 8023 and 8883 May Result in Invalid Sec. 338 Election

Article:  The IRS recently launched a program to match the filing of Form 8023, Elections Under Section 338 for Corporations Making Qualified Stock Purchases, by a foreign purchasing corporation acquiring a foreign target, with Form 8883, Asset Allocation Statement Under Section 338, to report the effect of the Sec. 338 election.
Published on October 04, 2011

Special Limitation Periods for Carryback Assessments

Article:  By exercising its setoff authority, the IRS has been able to achieve the same limitation period in Form 1120X carryback situations as in tentative refund cases with Form 1139.
Published on October 04, 2011

Ordinary Worthless Stock Deductions Characterizing Subsidiary Receipts

Article:  An ordinary loss deduction for worthless stock of an affiliated operating subsidiary generally is permitted as long as more than 90% of the subsidiary’s gross receipts are from active operating income. This item discusses the difficulty of determining whether a subsidiary’s gross receipts qualify as active operating income for this purpose
Published on October 04, 2011

LLC Member Debt Recourse or Nonrecourse

Article:  How should deductions be allocated that are funded by a general obligation of an LLC if the obligation is guaranteed by or borrowed from a member and is recourse debt under Sec. 1001?
Published on October 04, 2011

The Impact of Unified Loss Rules on Earnings and Profits

Article:  This item explores whether an adjustment is made for E&P purposes when a member of a consolidated group is required under the unified loss rules to reduce its basis in the stock of another member for regular tax purposes upon the first member's disposition of the second member's stock at a loss
Published on October 04, 2011

Employment Tax Consequences of a Corporate Change of Control Event

Article:  This item examines the employment tax consequences related to a corporate change of control event. Those consequences generally depend on the type of event, namely whether there is an asset purchase, a merger, or a stock acquisition.
Published on October 04, 2011

Application of CFC Lookthrough Rule to Payments Made by a Partnership to Its CFC Partner

Article:  This item examines the controlled foreign corporation (CFC) lookthrough rule.
Published on October 04, 2011

One Reorganization, Two Tax Years, One Practical Solution

Article:  This item considers what is the proper time to report the transaction if a reorganization spans different tax years.
Published on October 04, 2011

Taxing Intellectual Property Transfers

Article:  Outbound transfers of intellectual property can raise difficult tax issues for U.S. persons.
Published on October 04, 2011

New Form 990 Whats Confusing Filers

Article:  The redesigned Form 990 has been the subject of much discussion since the IRS released it in 2007, and several areas of confusion have been identified. This item highlights problems frequently encountered by practitioners, including many compensation issues.
Published on October 04, 2011

IRS Applies Reverse Acquisition Regulations A Substance-over-Form Approach

Article:  Determining whether a transaction is characterized as a reverse acquisition under the consolidated return regulations can be challenging. This item focuses on tax implications of reverse acquisitions and reviews recent private letter rulings in which the IRS applied substance-over-form principles.
Published on October 04, 2011

FIRPTA and the Return of Capital Distributions

Article:  FIRPTA is quite complex and filled with traps for the unwary, especially in the area of return of capital distributions.
Published on October 04, 2011

Creating a Private Foundation to Meet Charitable Goals

Article:  This column assesses the advantages and disadvantages of using a private foundation to meet charitable goals.
Published on October 04, 2011

Equity-Based and Nonqualified Deferred Compensation Plans

Article:  This article provides an overview of the federal income taxation rules governing equity-based compensation plans as well as nonqualified deferred compensation plans.
Published on October 04, 2011