Treatment of Gift Card/Certificate Sales No Answers, More Questions
Article:
This item highlights certain issues raised by a recent IRS Large and Mid-Size Business Division directive dated October 3, 2008, about the treatment of revenue from the sale of gift cards
Published on January 28, 2011
Determining the Correct FMV of Private Company Stock When Stock Options Are Granted
Article:
When a stock option is granted to an employee, great care must be taken to ensure that the exercise price is equal to or greater than the stock's fair market value (FMV) on the option's grant date. If the exercise price is lower than the FMV, resulting in a "discounted"
Published on January 28, 2011
Subsequent Deferral Elections May Bring Surprises Under Sec. 409A
Article:
Nonqualified deferred compensation must comply with a vast set of new rules for nonqualified plans.
Published on January 28, 2011
Be Careful Making Disclaimers Where Trusts Are Involved
Article:
Disclaimers are very useful tools for estate planners, especially in postmortem planning. However, if an estate planner is not diligent in the planning and execution of a disclaimer, it can have adverse transfer tax consequences.
Published on January 28, 2011
IRS Provides a Simplified Method for Late Filing Relief
Article:
The IRS has provided a simplified method to request relief for certain late filings under Secs. 897 and 1445.
Published on January 28, 2011
Casting Doubt on the Accrual of Interest
Article:
Due to the recent turmoil in the credit markets, creditors and borrowers alike are evaluating the tax treatment of interest accruals related to troubled loans. Generally, interest is taken into account by a taxpayer according to the taxpayer's regular method of accounting.
Published on January 28, 2011
New Regs. Govern Overseas Disclosure and Use of Taxpayer Information
Article:
The IRS issued final regulations under Sec. 7216 to update the existing rules to address current tax industry practices, such as electronic preparation and filing, expanded tax and nontax service offerings, and resource sharing across national borders.
Published on January 28, 2011
Maryland Tax Court Adopts Economic Substance Doctrine
Article:
Two recent decisions highlight the Maryland Tax Court's creation and use of the economic substance doctrine in cases involving the use of intangible holding companies.
Published on January 28, 2011
New Transaction of Interest Identified
Article:
In Notice 2008-99, the IRS identified a new transaction of interest (TOI) for purposes of the reportable transaction disclosure and list maintenance rules under Secs. 6011, 6111, and 6112.
Published on January 28, 2011
Taxpayers Should Be Proactive When Filing Accounting Method Changes
Article:
This item discusses the difficulties that arise when trying to determine whether an issue is under consideration for purposes of the 90-day or 120-day windows; it examines a recently released technical advice memorandum that illustrates the complex nature of this problem in the context of a nonautomatic accounting method change
Published on January 28, 2011
IRS Issues Guidance on Determining Wagering Gains and Losses
Article:
The Office of Chief Counsel issued a memorandum explaining how to determine the wagering gains and losses of casual gamblers.
Published on January 28, 2011
The Tax Return Preparer Standard Policy Developments
Article:
The tax return preparer standard set forth in Sec. 6694 has been subject to a series of revisions and refinements.
Published on January 28, 2011
Requirements for the Creation of Permanent Establishment in Germany
Article:
The German federal tax court ruled that use of business premises or a plant does not constitute a permanent establishment under §12 of the general tax code, subject to taxation in Germany, when the foreign company does not have certain authority over the business premises or plant in which it
Published on January 28, 2011
IRS Focuses on Form 1042 Examinations
Article:
In July 2008, the IRS issued a new Internal Revenue Manual (IRM) section that provides for an increased level of focus by IRS examiners to examine and enforce the statutory requirements for withholding and the related compliance reporting of FDAP-type payments to foreign persons.
Published on January 28, 2011
IRS Issues Final Regulations on Sec. 6694 Tax Return Preparer Penalties
Article:
The IRS issued final regulations implementing the changes to the Sec. 6694 tax return preparer penalties.
Published on January 28, 2011