New Reporting for Specified Foreign Financial Assets
Article :
Effective for tax years starting after March 18, 2010, new Sec. 6038D requires individual taxpayers to report any interest in “specified foreign financial assets” if the value of these assets in aggregate exceeds an applicable threshold amount.
Published on March 16, 2012
The Tax Adviser January 2012
Publication :
Use navigation tools to browse articles from the January 2012 issue of The Tax Adviser. Articles include Retiree Tax Planning, EITC Due Diligence and 2010-11 Revisions to Circular 230 among others.
Published on January 27, 2012
2011 Arthur J. Dixon Memorial Award
Article :
The AICPA’s Tax Executive Committee bestowed the 2011 Arthur J. Dixon Memorial Award on Jay Starkman.
Published on December 31, 2011
Retiree Tax Planning for Eligible Retirement Plans of Tax-Exempt Entities
Article :
Most types of tax-exempt entities may establish unfunded eligible deferred compensation plans under Sec. 457, sometimes called “top-hat” plans because they are designed for members of management and highly compensated individuals.
Published on December 31, 2011
Using a Buy/Sell Agreement to Transfer Ownership
Article :
A buy/sell agreement is a contract that restricts business owners from freely transferring their ownership interests in the business; they are a tool in providing for a planned and orderly transfer of a business interest.
Published on December 31, 2011
Recognized Built-In Loss Is Subject to Sec. 382 Limitation
Article :
The IRS concluded that a taxpayer may include in its computation of taxable income or NOL only an amount of recognized built-in loss (RBIL) equal to its Sec. 382 limitation, whether or not the taxpayer has taxable income without regard to RBIL.
Published on December 31, 2011
IRS Updates Determination Letter Procedures for Preapproved Plans
Article :
In Rev. Proc. 2011-49, the IRS updated the procedures for sponsors and practitioners to request opinion and advisory letters regarding qualification under Secs. 401 and 403(a) for preapproved plans.
Published on December 31, 2011
Excessive Energy Property Grant Is Includible in Gross Income
Article :
An IRS memorandum advises that grant applicants must include in gross income any amounts they received but were not entitled to under a grant program of Section 1603 of the American Recovery and Reinvestment Act of 2009.
Published on December 31, 2011
IRS, DOL, Several States to Share Data on Worker Classification
Article :
The DOL and the IRS agreed to share information and coordinate law enforcement “to end the business practice of misclassifying employees in order to avoid providing employment protections.”
Published on December 31, 2011
Eligible Independent Contractor Treated as Managing Hotel on Behalf of REIT
Article :
The IRS ruled that, after a restructuring transaction, an eligible independent contractor will continue to be treated as managing and operating a hotel on behalf of a taxable REIT subsidiary for purposes of Sec. 856(d)(8)(B).
Published on December 31, 2011
REIT May Exclude Interest-Rate Swap Income from Gross Income Tests
Article :
The IRS ruled that income a REIT receives from an interest-rate swap agreement that hedges indebtedness of the REIT’s lower-tier partnership is not includible in the REIT’s gross income for purposes of applying the 95% and 75% gross income tests.
Published on December 31, 2011
Guidance on Characterizing Gross Receipts from Telecommunications Services
Article :
In Rev. Rul. 2011-24, the IRS provided guidance for determining whether a taxpayer that provides telecommunications services derives gross receipts from services, leasing or renting property, or a combination of the two, for purposes of the domestic production activities deduction under Sec. 199.
Published on December 31, 2011
IRS Rules Energy Contract Is Not a Commodity
Article :
The IRS analyzed whether a taxpayer properly applied mark-to-market treatment under Sec. 475(e) a tolling agreement and concluded that the tolling agreement was not a commodity and that mark-to-market treatment of the agreement did not clearly reflect income.
Published on December 31, 2011
LB&I Directive on Success-Based Fees Has Tax Accounting Implications
Article :
A recent directive instructs LB&I examiners not to challenge the treatment of success-based fees incurred or paid in tax years ending before April 8, 2011, if the taxpayer capitalized at least 30% of the total success-based fees incurred on the transaction on its originally filed return.
Published on December 31, 2011
IRS Provides Safe Harbor for Nonaccrual-Experience Accounting Method Taxpayers
Article :
The IRS issued guidance providing a book safe-harbor accounting method for taxpayers that use the nonaccrual-experience accounting method under Sec. 448(d)(5) and Regs. Sec. 1.448-2.
Published on December 31, 2011