Current Corporate Income Tax Developments (Part II) - 2009

Article:  During 2008, numerous state statutes were added, deleted, or modified; court cases were decided; regulations were proposed, issued, and modified; and bulletins and rulings were issued, released, and withdrawn. This article covers some of the more important developments in apportionment, unitary groups/filing methods, administration, flowthrough entities, and other significant corporate
Published on January 22, 2013

S Corporation Tax Year Rules

Article:  The use of a fiscal year defers reporting of the S corporation’s passthrough income to the shareholders and facilitates year-end tax planning.
Published on January 28, 2011

Distressed S Corporations Tax Issues Involved in Restructuring

Article:  This article highlights tax issues and planning opportunities that may arise relative to a distressed S corporation, its shareholders, and its creditors.
Published on January 28, 2011

Refundable State and Local Tax Credits

Article:  The IRS has not issued published guidance on corporations’ tax treatment of refundable state and local tax credits. However, the Office of Chief Counsel, through a recent legal memorandum and other informal nonprecedential advisories, has provided insight as to the treatment of these credits.
Published on January 28, 2011

IRS Releases Redesigned Form 990

Article:  The IRS has released a redesigned Form 990, Return of Organization Exempt from Income Tax, for use with 2008 tax returns.
Published on January 28, 2011

Ponzi Schemes The Implications for Defrauded Investors

Article:  The losses incurred in a Ponzi scheme may be deductible as theft loss under Sec. 165(a) as an ordinary deduction in the year the loss was discovered, with certain limitations. A taxpayer cannot deduct losses as long as there is a possibility of recovery and litigation is ongoing.
Published on January 28, 2011

Return Preparers Advice Does Not Prevent Accuracy-Related Penalty

Article:  In a recent decision, the Tax Court partially upheld accuracy-related penalties against a taxpayer because it failed to reasonably rely in good faith on advice from its tax return preparer.
Published on January 28, 2011

IRS Expands Alternative Dispute Resolution Opportunities

Article:  The IRS recently expanded access to the fast track resolution program and to Appeals mediation and arbitration procedures.
Published on January 28, 2011

Internal Controls and Exempt Organization Executive Compensation Arrangements

Article:  This article provides an overview of the law of inurement and intermediate sanctions.
Published on January 28, 2011

Like-Kind Exchanges Deferral Is Not Always the Best Option

Article:  Sec. 1031 gives taxpayers the opportunity to defer taxation on the gains they may have on their transactions. Anytime there is an opportunity to defer tax costs, tax practitioners and their clients automatically tend to assume that they should take advantage of the opportunity. However, in the case of like-kind
Published on January 28, 2011

The National CPA-IRS Tax Issues Meeting

Article:  The AICPA IRS Practice and Procedures Committee's annual IRS tax issues meeting was held in Washington, DC, on October 29, 2008.
Published on January 28, 2011

Tax Court Not Limited to Administrative Record in Innocent Spouse Cases

Article:  The Eleventh Circuit held that the Tax Court properly considered evidence outside the administrative record in a trial to determine whether a taxpayer was entitled to innocent spouse relief.
Published on January 28, 2011

Deduction for ESOP Distributions Disallowed

Article:  The Eighth Circuit reversed a district court and held that a corporation was not entitled to a deduction for cash distribution redemptive dividends paid by the corporation’s employee stock ownership plans to plan participants who left the corporation.
Published on January 28, 2011

Proposed Regs. Provide Model for Stock Basis Recovery and Identification

Article:  On January 21, 2009, Treasury issued proposed regulations that provide shareholders with guidance on allocating and recovering stock basis in Sec. 301 distributions (REG- 143686-07). Their purpose is to present a single model for stock basis recovery whe
Published on January 28, 2011

Numerous Tax Provisions in Stimulus Act

Article:  The American Recovery and Reinvestment Act of 2009 contains numerous tax provisions aimed at individuals and small businesses.
Published on January 28, 2011