Twelve Months Ending June 2001

See key to page references.

Accounting Methods & Periods
B share commissions. 01:7.
Cash method
   ability to use. 00:603, 763, 835, 870; 01:870.
   paving contractor. 00:748.
Credit card fee income. 01:8.
Installment reporting, repeal for accrual taxpayers repealed. 01:151, 221.
amended returns. 01:363.
Inventory, cash method for small businesses. 00:679, 738.
LIFO
   IPIC method. 00:604.
   used vehicle dealers. 01:368.
Like-kind exchanges, depreciation. 01:398.
Long-term contract method. 01:364.
Manufacturers. 01:223.

Agriculture
Farmers’ cooperative. 01:388.

Consolidated Returns
Carryback of post-acquisition NOL. 01:295.
Disallowed loss rule. 00:521.
Intercompany debt redemption. 01:9.
Issues update. 00:810.
Sec. 381(c)(1)(B) in tax-free asset acquisition. 01:279.

Corporations & Shareholders
AMT overpayment. 01:80.
Bausch & Lomb doctrine, repeal. 00:764.
Buy-sell agreements. 01:346.
COBE
   acquisition of holding company. 01:370.
   statutory mergers. 01:83.
COI regs. 01:10.
Disallowed loss rule. 00:521.
F reorganization. 01:12.
Incorporating a cash-basis business. 01:66.
Limited partnerships in corporate distribution planning. 01:298.
Mergers of disregarded entities. 00:605.
Morris Trust rules. 01:300.
Nonqualified preferred stock. 00:461.
Payment
   by dissolved corporation in satisfaction of shareholder’s alimony obligations. 01:345.
   to former shareholder characterized as consulting. 01:351.
PHC tax and Sec. 382. 00:535.
Sale-and-leaseback of real property. 01:328.
Schedule N, Form 1120. 01:221.
Sec. 301(e). 00:463.
Sec. 338(h)(10) elections. 00:606.
Sec. 355(d) final regs. 01:296.
Sec. 482 and sham-transaction doctrine. 01:152.
Solely-for-voting-stock requirement. 01:371.
Tax rates on corporate investment (chart). 00:601.
Unwanted assets in stock sale. 00:465.

Credits Against Tax
ADA compliance. 00:680.
AIRC opportunities. 00:466.
Fuel tax credits. 01:374.
Low-income housing credit. 01:224.
Poultry waste credit. 00:536.
R&E credit. 01:302.
Research credit. 00:608.
Targeted jobs credit settlement offer. 00:681.
Employee Benefits & Pensions
Compensatory stock options transferred in divorce. 00:537.
Current developments. 00:772, 874.
Incentive compensation deductions, timing. 00:472.
IRAs
   beneficiary designation. 00:837.
   beneficiary not bound by owner’s pre-death
   withdrawal calculations. 00:610.
   community property issues. 00:539.
   employer-mandated rollover. 01:226.
   RMDs. 00:149.
   Roth IRAs. 00:518.
ISOs and AMT traps. 00:540.
Long-term care insurance. 01:230.
Minimum distribution rules. 01:303.
Nonemployer stock options. 00:468.
Nonmonetary recognition awards. 01:352.
Nonqualified
   preferred stock. 00:461.
   stock options. 00:494.
   trust payments and employment taxes. 00:749.
Plan administration costs. 01:13.
Safe-harbor Sec. 401(k) plans. 00:611.
Secs. 403(b) and 457(b) plans. 01:13.
Split-dollar insurance. 01:228.
Suspension of benefits notice. 00:470.

Estates, Trusts & Gifts
AICPA
   member survey. 01:148, 174.
   study. 01:292, 334.
Alternate valuation date. 00:676, 839.
Annual exclusion, maximizing use. 01:392.
Bequest of residence. 01:233.
CRATs. 01:304.
CRT planning. 01:38.
CRUTs. 01:231.
Disclaimers and liens. 00:683.
FLPs. 01:68.
   gain allocation. 00:682.
Gift
   disclosure. 00:677.
   program to shift control to family. 00:666.
GRATs and GRUTs, qualified interest determinations. 01:14.
GST tax traps. 00:546.
Income tax issues. 01:48, 124.
Itemized deduction two-percent floor. 01:375.
Planning strategies. 01:26, 100.
Puerto Rico residents and U.S. estate and gift tax. 01:352.
QTIP trust funded by IRA. 01:320.
Recent developments. 00:576, 652.
Sec. 645 election and short-year return. 01:353.
Trusts holding life insurance policies. 00:837.

Excise Taxes
   Floor stocks taxes. 01:306.

Exempt Organizations
Corporate sponsorship prop. regs. 00:474, 612.
Disclosure. 00:686.
Lobbying. 00:685.
Political organizations, tax reporting. 01:156.
Travel and tour activities. 01:154.
Web presence and UBI. 00:504; 01:220.

Expenses
Business
   aggregating S and C corporation activities. 00:899.
   aircraft maintenance costs. 01:307, 376.
   automobile manufacturer, future warranty costs. 01:16.
   bank acquisition. 01:16.
   capitalize v. expense. 01:157.
   covenant not to compete after firm breakup. 00:590.
   environmental remediation. 01:378.
   ERP implementation costs. 00:476.
   executives’ wages in merged corporations. 00:522.
   food and beverage. 00:677.
   investigatory costs. 00:475.
   ISO 9000 costs. 01:84.
   loan origination costs. 00:616, 764.
   long-term contracts.00:476.
   prepaid rent. 00:818.
   removal costs. 00:478.
   software costs. 01:160, 207.
   sole shareholder’s legal expenses. 00:676.
   standard mileage rates. 01:05.
   transportation, temporary. 00:615, 668, 688.
   towboat maintenance costs. 01:376.
   Website development costs. 00:689.
Interest, see “Interest Income & Expense.”
Medical conference attendance. 00:461.
Vacation homes. 00:840.

Foreign Income & Taxpayers
Canadian residents residing in U.S. 01:86.
Check-the-box consequences. 00:479.
Domestication of foreign corporations. 01:88.
Dual-capacity taxpayer. 00:765.
Expatriate planning. 01:244.
Export tax benefits. 00:692.
Foreign
   nationals, avoiding PFIC trap. 01:382.
   tax credit, effect of NOL carryovers on. 00:480.
   taxes and stock option benefits. 00:482.
   transfers, assessments on. 00:752.
FSC Repeal and Extraterritorial Income Exclusion Act of 2000. 01:05.
Hybrid entities and treaty benefits. 00:619.
Qualified intermediaries. 01:308.
Redemption distribution of PTE. 00:482.
Sec. 904 base vs. timing difference for foreign taxes. 00:484.
Swap recharacterized. 00:765.
Transfer pricing small business market-share strategies. 01:89.
UK functional currency. 01:18.
Withholding. 01:162.
   alien students. 01:275.
   real property sales to foreign persons. 01:234.

Gains & Losses
Abandonment loss, determining recognition event. 01:136.
Built-in gains and income items under Sec. 382. 00:485.
Co-obligor’s release on debt. 01:164.
Day traders. 00:714.
Five-year capital gain rates. 00:846; 01:163.
Installment sales of multiple assets. 01:310.
Insurance contracts and Sec. 1033. 00:547.
Investing in community renewal. 01:383.
ISOs. 00:844.
   and stock swaps. 01:234.
Like-kind exchange
   basis in replacement property. 00:693.
   deferred, use of accommodation party. 00:819.
   reverse, safe harbor. 00:847; 01:166, 190.
Nonqualified stock options. 01:238.
   intrafamily sales. 00:494.
Passthrough sales and exchanges. 00:760.
Patent sales and capital gains. 00:548.
Qualified small business stock. 00:846.
Securities
   investments and life insurance wrapper. 01:90.
   trader reporting requirements. 00:714.
Specified loss carrybacks. 01:20.

Gross Income
Bonus paid in conjunction with note. 01:137, 167.
Contingent attorney’s fee awards. 00:550, 694, 848; 01:310.
Employee parking reimbursements. 01:283.
Insolvency test. 01:311.
Reasonable compensation, closely held corporation. 01:92.

Individuals
AMT planning. 00:788; 01:117.
   for ISOs. 01:248.
Dependency exemptions. 00:739.
Financial investments. 00:816.
Income deferral and elderly clients. 01:94.
Income tax, payment by credit card. 01:418.
Innocent spouse. 00:460, 533.
   and domestic violence. 01:221.
Ministers’ housing allowances. 00:696.
Qualified state tuition programs. 00:697; 01:204.
Roth IRAs. 00:518.
Tax bite in the eight-hour day (chart). 00:533.
Tax freedom day (chart). 01:361.
2001 inflation adjustments (chart). 01:81.
Use of standard deduction for regular tax and itemized deductions for AMT. 01:210.
Wealth care kit. 00:832.

Interest Income & Expense
Bond discounts and premiums. 00:555.
Guarantor’s interest deduction. 00:900.
Interest on tax deficiencies. 00:552.
OID guidance. 01:292.

Legislation
Community Renewal Tax Relief Act of 2000. 01:224, 383.
FSC Repeal and Extraterritorial Income Exclusion Act of 2000. 01:05.
Installment Tax Correction Act of 2000. 01:151, 221, 363.
Internal Revenue Service Restructuring and Reform Act of 1998. 00:460, 536, 640, 744,    754, 760, 772; 01:59, 80, 210, 220.
New Blue Book. 01:360.
Tax and Trade Relief Extension Act of 1998. 00:460, 536, 788.
Taxpayer Relief Act of 1997. 00:576, 640, 760, 772, 833, 846; 01:53, 80, 163, 168.
Ticket to Work and Work Incentives Improvement Act of 1999. 00:460, 800; 01:151.

LLCs & LLPs
Partnership bifurcation. 00:850.
Real estate ownership. 01:312.
State tax treatment. 01:407.
Versus limited partner for Sec. 469. 01:386.

Partners & Partnerships
Allocations
   distributions of multiple assets. 00:640.
   of partnership debt. 00:561.
Basis rules. 00:557.
Converting a general partnership interest to a limited partnership interest. 00:746.
Divided holding periods for partnership interests. 01:314.
K-1 compliance. 01:239.
Large partnership audit SOL. 01:387.
Lease strips. 00:766.
Mandatory large partnership e-filing. 01:168.
Mergers and divisions. 00:854; 01:239.
Sec. 754 election revocation. 01:416.
Tax year selection. 01:134.
Transfers of interests and related basis adjustments, reporting rules. 01:242.

Passive Activities
At-risk rules and LLCs. 00:698.
Losses and Sec. 731 gain. 01:315.
Rental property status. 00:700.

Pensions
See “Employee Benefits & Pensions.”

Personal Financial Planning
College savings vehicles. 01:53.
Regulation of investment advisers. 00:735.
Retirement planning. 00:509.
Tax-wise investing. 01:266.

Practice & Procedures
ABA and MDPs. 00:601.
AICPA Tax Executive Committee initiatives. 00:663, 809; 01:130, 333.
Cash method for small businesses with inventory. 00:738.
Dependency exemptions. 00:739.
Disclosure statements. 01:58.
Fringe benefits. 00:512.
Innocent spouse. 01:59.
Installment agreements. 00:742.
IRS resolution programs. 01:60.
Large business examination program. 00:739.
Nondischargeability of state taxes in bankruptcy. 01:64.
Offers in compromise. 01:272.
POA problems, avoiding. 00:741.
Practitioner return authorization. 00:514.
Reporting third-party payments. 01:276.
Tax Court
   petition filing, statute of limitations. 00:515.
   undesirable conduct, zero tolerance. 01:274.
Tax deposit rules. 01:81.
Third-party information. 00:515.
Timely refund claim on late return. 00:740.
Websites for tax practitioners. 01:201.
Withholding on aliens. 01:276.

Practice Management
Client
   privacy issues. 01:404.
   record retention and tax workpapers. 00:658.
SSTSs and tax practice review. 00:890.

Procedure & Administration
Accountant, reliance on. 00:824.
Adequate disclosure. 01:210.
Conversion regs. 00:490.
Corporate
   officer classification. 00:820.
   tax shelters. 00:568; 01:04, 148.
EIC due diligence. 00:833.
Electronic filing. 00:532; 01:293.
Employment taxes assessed in SMLLC’s name and EIN. 01:419.
Estate tax automatic filing extension. 00:833.
Financial status audit techniques. 01:211.
Foreign transfers, assessments on. 00:752.
Form 4549 and bankruptcy. 00:591.
Form W-2, fraudulent. 00:524.
Growth of the Code (chart). 01:293.
“Homemade” income tax forms. 01:284.
Information reporting. 00:489.
Innocent spouse. 00:754, 902.
   and domestic violence. 01:221.
IRS
   C&L division. 00:600.
   improved Website. 01:220.
Married filing as head of household. 00:824.
Medical resident FICA withholding. 01:22.
Offers in compromise. 01:272.
Penalty reduction. 01:80.
Practitioner return authorization. 00:514, 760.
Pre-assessment remittances. 00:768.
Refund claim SOL. 00:766.
Sec. 6662, applicability to refund claims. 00:488.
Six-year SOL. 01:315.
SSTSs. 00:832.
Tax Court
   courtesy calls. 00:833.
   petition filing. 00:532.
TIN matching pilot program. 00:600.
Transferee liability on stock purchase. 01:214.
Undeliverable refunds. 01:05.
Unsigned joint return. 01:353.
Worker classification and employment taxes. 01:95.

S Corporations
Back-to-back loans. 01:96.
B stock swap of former partnership. 00:586.
Changing fiscal year-end before S election. 00:897.
Charitable deduction. 01:170.
COD income. 00:632; 01:148, 171.
Composite taxes. 01:316.
Continuity-of-shareholder-interest rules. 00:852.
Conversion
   LIFO reserves. 01:69.
   suspended PALs. 01:70.
Current developments. 00:724, 800.
Debt guarantees. 01:74.
Financial institutions and AMT credit. 00:622.
Passthroughs, distributions and basis adjustments, final regs. 00:704.
QSubs
   guidance. 01:05.
   installment method. 00:564.
   step-transaction doctrine. 00:493.
Suspended losses on S stock disposition. 01:280.

Special Industries
Farmers’ cooperative. 01:388.
SSAP No. 10 and insurance companies. 01:23.

State & Local Taxes
Alaska Community Property Act. 00:701.
Average and total tax burdens, 2000 (chart). 00:761.
California insurance company DRD. 01:389.
C&I programs. 01:98.
Corporate income tax developments. 01:178, 258.
Digital transmissions. 00:769.
Dock sales sourcing. 00:770.
Illinois income tax. 01:318.
International fuel tax agreements. 00:626.
Internet
   sales companies. 00:702.
   taxation issues. 00:623; 01:98.
   Tennessee nexus. 01:390.
LLC and LLP treatment. 01:406.
Michigan SBT. 00:630, 894.
S election, effects on domicile. 00:565.
Streamlined sales tax project. 01:360.
Voluntary
   disclosure. 00:660.
   registration. 01:390.

Tax Education
AICPA core competencies. 01:132.
Classroom management techniques. 00:580.
Model tax curriculum. 01:340.
2000 Tax Education Symposium. 00:812.

Tax Policy
TEC initiatives. 00:663, 809; 01:130, 333.

Tax Technology
E-filing security. 01:293.
FirstGov Website. 00:761.
Improved IRS Website. 01:220.
Interactive income tax receipt. 00:533.
Internet shopping and taxation (chart). 00:677.
Valuing savings bonds. 00:601.