TaxClinic

Practical Advice
on Current Issues

.

Editor:
David J. Kautter
Partner
Ernst & Young LLP
Washington, DC

Accounting Methods & Periods

Certain partners and S corp. shareholders can spread income from short tax year

Consolidated Returns

Temp. regs. on attribute reduction when a consolidated group member realizes DOI income

Corporations & Shareholders

Deducting acquisition costs incurred by a shareholder, but paid by the corporation

Expenses

Economic benefit from below-market financing can be amortizable asset

Foreign Income & Taxpayers

Foreign corporations qualifying for JGTRRAs reduced dividend rate

Prop. regs. on partnership withholding on foreign partners

Gains & Losses

Safe harbors for identifying Sec. 382 RBIG or RBIL

Individuals

Excluding reimbursements from health FSAs for OTC drugs

Procedure & Administration

Information-reporting guidance for payments in lieu of dividends

Fiscal-year-taxpayer reporting requirements for JGTRRA capital gain changes

S Corporations

Failure to satisfy all-events test denies S corp. deductions
 

Unless otherwise indicated, contributors are members of or associated with Ernst & Young LLP.