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Current Developments in S Corporations (Part II) — footnotes
Editor’s note: Dr. Karlinsky is a member of the AICPA Tax Division’s S Corporation Taxation Technical Resource Panel (TRP). Dr. Burton is a member of the AICPA Tax Division’s Partnership Taxation TRP.
50 This is accomplished by making the WOTC a “specified credit” under Sec. 38(c)(4)(B). The specified credits are not subject to the limit on the general business credit in Sec. 38(c)(1).
51 This assumes that the children aged 19–23 are not married. If they are, then the new expanded kiddie tax will not apply.
52 Tax Relief and Health Care Act of 2006 (P.L. 109-432), Pension Protection Act of 2006 (P.L. 109-280), and Tax Increase Prevention and Reconciliation Act of 2005 (P.L. 109-222).
53 See Karlinsky & Burton, “Current Developments (Part I),” 35 The Tax Adviser (October 2004): 637.
54 For more on this, see Carlton, Tax Practice & Procedures, “IRS Announces New Approach to the National Research Program,” 38 The Tax Adviser (October 2007): 616.
55 2006 Data Book, Publication 55B, March 2007; IR-2007-63.
56 IRS Letter Ruling 200644013 (11/3/06).
57 IRS Letter Ruling 200725027 (6/22/07).
58 Rev. Proc. 2007-34, 2007-23 IRB 1345 (5/11/2007), effective for tax years beginning after May 11, 2007.
59 Topping, TC Memo 2007-92.
60 Brooks, TC Memo 2005-204.
61 Under Regs. Sec. 1.1367-2(a), shareholder advances not evidenced by separate written instruments and repayment on the advances are referred to as open-account debt and are treated as a single indebtedness.
62 Maloof, 456 F3d 645 (6th Cir. 2006).
63 Gleason, TC Memo 2006-191.
64 Ellinger, 470 F3d 1325 (11th Cir. 2006).
65 Alpert, 481 F3d 404 (6th Cir. 2007).
66 Wright, TC Memo 2007-50.
67 Arnold, TC Memo 2007-168.
68 Radtke, 895 F2d 1196 (7th Cir. 1990).
69 Kosinski, TC Memo 2007-173.
70 IRS Letter Ruling 200718014 (5/4/07). See also Letter Rulings 200719005, 200719006, and 200719007 for similar holdings.
71 IRS Letter Ruling 200701017 (1/5/07).
72 IRS Letter Ruling 200703026 (1/19/07).
73 IRS Letter Ruling 200728039 (7/13/07).
74 IRS Letter Ruling 200628008 (7/14/06).
75 TD 9330 (6/14/07), adding Temp. Regs. Sec. 1.382-7T.
76 Received, for example, under the provisions of Rev. Proc. 2004-34 or Sec. 455.
77 IRS Letter Ruling 200716017 (4/20/07).
78 IRS Letter Ruling 200722002 (6/1/07).
