Supreme Court Holds Investment Advisory Fees Are Subject to 2% Floor
Article:
The Supreme Court held that investment advisory fees are generally subject to the 2% floor but refused to go as far as the Second Circuit in saying that the exclusivity test requires that the fees could not have been incurred by an individual.
Published on May 21, 2010
The Ongoing Sec. 67(e) Controversy and the New Preparer Penalties
Article:
This item discusses how the 2% floor affects a trust’s regular tax and alternative minimum tax (AMT), the effect of the recent Supreme Court decision in Knight on the continuing controversy, and the efficacy of the proposed regulations in the wake of the Knight decision.
Published on May 21, 2010
S Corporations Charitable Contributions of Appreciated Property and Shareholders Adjusted Basis in S Stock
Article:
PPA amended Sec. 1367(a)(2) to limit the reduction in a shareholder’s basis to the shareholder’s pro-rata share of the S corporation’s adjusted basis of the contributed property, not the FMV.
Published on May 21, 2010
Revisions to 2007 Form 1120-F
Article:
The IRS has revised Form 1120-F, U.S. Income Tax Return of a Foreign Corporation, and related schedules, effective for filing periods ending on or after December 31, 2007.
Published on May 21, 2010
REITs and Taxable REIT Subsidiaries Potentially Subject to PHC Tax Treatment
Article:
A REIT can be subject to the PHC tax as well as to other rules affecting PHCs.
Published on May 21, 2010
On the Bookshelf
Article:
Information on books of interest to tax practitioners.
Published on May 21, 2010
IRS Issues Rules on New Preparer Penalties
Article:
Notice 2008-13 implements the expanded tax return preparer penalties and increased standards of return preparer conduct enacted by the Small Business and Work Opportunity Tax Act of 2007.
Published on May 21, 2010
Mere Execution of Service or Insurance Contract Does Not Satisfy All-Events Test
Article:
Rev. Rul. 2007-3 holds that the mere execution of a service or insurance contract by an accrual method taxpayer/payor (TP) does not satisfy the all-events test for incurring a liability.
Published on May 21, 2010
IRS to Perform Mandatory Audits of Foreign Earnings Repatriation
Article:
The IRS LMSB Division has identified foreign earnings repatriation as a Tier I compliance issue, making it a mandatory examination item for those U.S. taxpayers selected for audit that have elected to repatriate foreign earnings under Sec. 965.
Published on May 21, 2010
IRS Develops New Form for Misclassified Workers
Article:
The IRS has developed a new form for employees who have been misclassified as independent contractors to report their share of uncollected Social Security and Medicare taxes: Form 8919, Uncollected Social Security and Medicare Tax on Wages.
Published on May 21, 2010
Final Regs. Govern Release of Taxpayer Information by Preparers
Article:
The IRS released final regulations that govern the handling and release of taxpayer information by return preparers.
Published on May 21, 2010
Deducting Interest on Qualified Education Loans
Article:
Interest due and paid on a qualified education loan for qualified higher education expenses can be deducted (within limits) from adjusted gross income (AGI).
Published on May 21, 2010
Commentary on the Canada-U.S. Tax Treatys Fifth Protocol
Article:
The U.S. Secretary of the Treasury and the Canadian Minister of Finance signed an important tax agreement (the Fifth Protocol) updating certain provisions of the Canada-U.S. Tax Treaty.
Published on May 21, 2010
Codification of the Economic Substance Doctrine
Article:
Reviving an idea that has come and gone several times since 1999, the House and Senate have included similar proposals for the codification of the economic substance doctrine in recent proposed legislation.
Published on May 18, 2010
Accounting for Bonus Compensation Under the Final Corporate Estimated Tax Regs.
Article:
Treasury issued final corporate estimated tax regulations under Sec. 6655 that establish a comprehensive set of rules for corporations using the annualized income installment method.
Published on May 18, 2010