IRS Provides Sec. 1031 Personal Use Safe Harbor for Dwellings
Article:
The IRS has provided a safe harbor, under which it will not challenge whether a dwelling unit qualifies as held for productive use in a trade or business or for investment purposes under Sec. 1031, governing like-kind exchanges.
Published on June 01, 2010
Prop. Regs. Address Carryover of Accounting Methods Under Sec. 381
Article:
In order to resolve confusion with respect to accounting and inventory methods to be used after corporate reorganizations or liquidations, the IRS issued proposed regulations in November 2007 (REG-151884-03).
Published on June 01, 2010
Revised 2008 Form 990 Requires Current Action
Article:
Exempt organizations and their tax advisers should be aware that significant changes in reporting rules for Form 990 may require current changes in procedures and an organization’s accounting system to capture the necessary information.
Published on June 01, 2010
Rules Issued for Rebate Checks for Individuals with No Tax Liability
Article:
The IRS has issued rules for individuals to follow to claim their rebate checks under the Economic Stimulus Act of 2008 if they do not owe taxes for 2007
Published on June 01, 2010
Sec. 6694 Tax Return Reporting Standards for Preparers
Article:
The Sec. 6694 tax return reporting standards applicable to tax return preparers were increased to “more likely than not” for undisclosed nontax-shelter items.
Published on June 01, 2010
Sec. 7216 Regulations
Article:
The AICPA Tax Division has formed a task force to review the impact of final regulations released by Treasury and the IRS in January 2008, involving the disclosure and use of tax return information by tax return preparers under Sec. 7216.
Published on June 01, 2010
Supreme Court Declines to Review Check-the-Box Case
Article:
The Supreme Court has refused to grant certiorari in Littriello, the first case to uphold the check-the-box regulations.
Published on June 01, 2010
Supreme Court Upholds 401(k) Participants Right to Sue
Article:
The Supreme Court has held that an individual Sec. 401(k) plan participant had a right to sue the plan administrator for breach of fiduciary duty under ERISA.
Published on June 01, 2010
Tax Court May Apply Equitable Recoupment to Medicare Taxes
Article:
The Tax Court held that where it has original jurisdiction to redetermine a deficiency, it also may apply the doctrine of equitable recoupment, even if it does not have jurisdiction over the type of tax at issue.
Published on June 01, 2010
U.S. Withholding Tax Imposed on Foreign Tax-Exempt Organizations
Article:
When a foreign charitable organization earns U.S. source portfolio income it often has a choice to make: It can claim tax-exempt status (and thus an exemption from U.S. withholding tax), or the organization may find it easier to refrain from asserting tax-exempt status and opt for treatment as a (nonexempt)
Published on June 01, 2010
IRS Offers Opportunity for 2% Shareholders of S Corp.
Article:
The IRS recently offered an opportunity for 2% shareholders of an S corporation to receive a deduction for health insurance premiums under Sec. 162(l).
Published on June 01, 2010
IRS Examines Treatment of Restructuring Costs
Article:
The IRS provided guidance on the treatment of costs related to investigating various corporate restructuring transactions that ultimately were not consummated.
Published on June 01, 2010
Foreign Tax Credits Reducing Eight Categories to Two
Article:
The American Jobs Creation Act reduced the foreign tax credit limitation categories from eight to two: passive category income and general category income.
Published on May 24, 2010
Interim Guidance Issued on Unbundling Trustee Fees
Article:
The IRS announced that for tax years beginning before January 1, 2008, nongrantor trusts and estates will not be required to unbundle their fiduciary fees to determine what portion is subject to the Sec. 67(a) 2% threshold for itemized deductions.
Published on May 24, 2010
Final Regs. on Consolidated Group Liquidations
Article:
Final regulations effective January 15, 2008, explain how the members of a consolidated group succeed to tax items, or “attributes,” of a subsidiary corporation when two or more members of the group own stock in the subsidiary and the subsidiary is liquidated on a tax-free basis
Published on May 21, 2010