IRS Issues Technical Advice on Success-Based Fees
When a taxpayer incurs success-based fees, the determination of whether the fees are currently deductible, as opposed to capitalizable, depends on whether the taxpayer can establish contemporaneously that all or a portion of the fees...
Published on January 28, 2011
Ten Things CPAs Need to Know About Structured Legal Fees
With the right preparation, a structured legal fee agreement can be an excellent tax planning tool for plaintiffs’ lawyers
Published on May 10, 2010
Ninth Circuit Awards Litigation Costs Paid by Third Party
The Ninth Circuit reversed the Tax Court and held that a taxpayer could “incur” attorneys’ fees initially paid by a third party for purposes of an award of litigation costs under Sec. 7430
Published on January 28, 2011
New Rules Govern Practice Before the IRS
Editor: Joel E. Ackerman, CPA, MST The highly publicized accounting scandals of 2002, such as Enron, WorldCom, and Global Crossing, along with revelations about tax shelter abuses, have had wide-reaching financial effects on investors and the economy. Act
Published on April 19, 2010
AICPA News Update - May 4, 2012
In this issue: USDA Requiring CPAs to Attest to AGI Limitations for Clients in Certain Farming Programs, AICPA Submits Comment Letter on PCAOB Broker-Dealer Proposal, Regulatory Alert: SEC Independence Requirements Apply to Auditors of Nonissuer Broker-Dealers and Investment Advisers, CGMA Report Provides Guidance for Transforming the Finance Organization, TPA Issued on Compilation and Review
Published on May 08, 2012
Tax Practice Quality Control
Practitioners should consider implementing a tax practice quality-control system.
Published on October 31, 2012
Circular 230 Case Processing and the Application of Monetary Penalties
One of the biggest issues practitioners have with the IRS Office of Professional Responsibility is a lack of information on what constitutes a violation of Treasury Circular 230 and how OPR applies sanctions for such violations.
Published on May 31, 2014
Regulation of Tax Return Preparers
To improve the oversight of tax preparation by paid tax preparers, the IRS has established a registration, examination, and continuing education regime for paid tax preparers. This article discusses the general requirements under the regime and the specific rules and exceptions to the rules for CPAs.
Published on May 01, 2011
Nonrefundable Milestone Fees Do Not Qualify as Success-Based
A business can expense 70% of “success-based fees,” meaning amounts that are contingent on the successful closing of a covered transaction. It is important to remember this safe-harbor election can apply to both sides of the transaction
Published on September 23, 2014
When Plaintiffs in Class Actions Pay Tax on Attorneys Fees
The taxation of attorneys’ fees in opt-out class actions has become relatively clear, as long as certain elements are established. In opt-in cases, class members risk being tagged with income in the...
Published on July 22, 2010