The Importance of CPAs Supporting VITA One CPAs Experience

Article:  It is important that CPAs provide their expertise to ensure that VITA provides the level of required service and quality of return preparation.
Published on May 14, 2010

Tax Court Vacates Stipulated Decisions in Tax Shelter Case

Article:  In the latest decision in one of its longest running series of cases, the Tax Court granted the motion of a group of taxpayers to vacate stipulated decisions in their cases that were part of the IRS’s Kersting tax shelter project.
Published on May 14, 2010

Who Is a Manufacturer Under the Proposed Contract Manufacturing Regs.

Article:  In February 2008, the IRS issued proposed regulations intended to clarify the manufacturing exception in the context of foreign base company sales income (FBCSI) under Sec. 954(d)(1).
Published on May 14, 2010

Tax Court Reviews Only Final Supplemental Notice of Determination

Article:  The Tax Court held that where a collection due process challenge results in the issuance of one or more supplemental notices of determination, the Tax Court is required to review only the final supplemental determination.
Published on May 14, 2010

When Is a Foreign Entity Relevant for U.S. Entity Classification Purposes

Article:  A company organized under the laws of a foreign country that does not conduct business in the United States still may be “relevant” for purposes of U.S. taxation. Therefore, it may be necessary to select a federal tax classification to minimize U.S. tax.
Published on May 14, 2010

When Do Foreign Currency Forward Contracts Constitute Sec. 1256 Contracts

Article:  For certain foreign currency derivatives, such as a foreign currency forward contract, Sec. 1256 provides special timing rules. Whether those rules under Sec. 1256 apply to a foreign currency derivative depends on the definition of “foreign currency contract.”
Published on May 14, 2010

The Substantially All Requirement A Momentary Concept

Article:  New final regulations, generally applicable to transactions occurring on or after October 25, 2007, significantly expand the range of permissible post-reorganization transfers.
Published on May 14, 2010

Taxpayer Must File Jointly to Qualify as Innocent Spouse

Article:  The Ninth Circuit has held that to be eligible for innocent spouse relief under Sec. 6015, a taxpayer must have filed a joint return with his or her spouse and that Sec. 6015’s equitable relief provision also requires that a joint return had been filed.
Published on May 14, 2010

Reportable Transactions When Does the 90-Day Disclosure Rule Apply

Article:  Failure to timely disclose a listed transaction or a transaction of interest could result in significant penalties—up to $200,000—even if there is no tax due. Because these rules can be confusing and mistakes are costly, knowing whether the 90-day time limit applies to a transaction is essential.
Published on May 12, 2010

Refund Claims and the Saturday-Sunday-Holiday Rule of Sec. 7503

Article:  In two revenue rulings issued almost 40 years apart, the IRS explored the effect of the Saturday-Sunday-holiday rule on the limitation periods applicable to refund claims.
Published on May 12, 2010

IRS Intensifies Focus on Worker Classification

Article:  As the IRS intensifies its scrutiny of worker classification, businesses may want to take a fresh look at how their policies, procedures, and documentation around engaging independent contractors might withstand IRS review.
Published on May 12, 2010

IRS Provides Guidance on Return Preparer Penalties

Article:  The IRS has provided guidance (Notice 2008-46) on the implementation of the  return preparer penalties under Sec. 6694.
Published on May 12, 2010

IRS Allows Penalty-Free Withdrawal of Stimulus Payments from IRAs

Article:  The IRS has announced that taxpayers who had their economic stimulus payments deposited directly into a tax-favored account can generally withdraw amounts up to the amount of that payment tax free and penalty free until the due date of their 2008 income tax return, including extensions.
Published on May 12, 2010

Guiding Clients Through the Transfer-for-Value Maze

Article:  Editor: Michael David Schulman, CPA/PFS One of the most attractive aspects of life insurance as an estate and financial planning tool is the tax treatment of the death proceeds. Generally, the proceeds of a life insurance policy received by a beneficiar
Published on May 12, 2010

Government Loses Son of Boss Tax Shelter Case

Article:  In a rare tax shelter loss for the IRS, a federal district court has allowed a taxpayer to offset income with losses from a “son of boss” transaction.
Published on May 12, 2010