June 12, 2013
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BY
Sally P. Schreiber, J.D.
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Article
The Tax Court upheld IRS-assessed deficiencies caused by the disallowance of a number of travel expenses an oral surgeon deducted on his Schedules C, Profit or Loss From Business, for 2008 and 2009, and its imposition of a negligence penalty under Sec. 6662(a) (Bigdeli, T.C. Memo. 2013-148). Javad Bigdeli lived in Gladwyne, Pa., a suburb of Philadelphia, but his dental office was in Elmsford, N.Y., which is north of New York City.
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June 1, 2013
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BY
William P. OâMalley, CPA, J.D.
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Article
Near the end of 2012, the IRS issued proposed regulations (REG-138006-12) on the employer shared-responsibility provisions under Sec. 4980H enacted by the Patient Protection and Affordable Care Act, P.L. 111-148 (PPACA), sometimes referred to as the “play-or-pay” rules. The proposed regulations address many questions that prior IRS guidance had not completely answered and provide important transitional relief.
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June 1, 2013
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BY
LAughlin Cutler, Esq., Douglas M. Sayuk, CPA and Camille Shoff, Esq.
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Article
The American Taxpayer Relief Act of 2012, P.L. 112-240, extended the research and development (R&D) credit under Sec. 41 for two years to cover qualified research expenditures paid or incurred on or before Dec. 31, 2013. Though U.S. business taxpayers welcomed the extension of this tax credit, the benefit is less generous than many other research tax incentive programs abroad.
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June 1, 2013
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Article
In a big win for the IRS, the Tax Court refused to grant partial summary judgment to a partner who had conceded his tax shelter case on grounds other than valuation in an attempt to avoid the 40% gross valuation misstatement penalty under Sec. 6662(a). This has been a common method used by taxpayers who have invested in tax shelters, in an attempt to avoid the draconian 40% penalty.
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June 1, 2013
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BY
Karen M. Cooley, CPA, MBA and Darlene Pulliam, CPA, Ph.D.
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Article
Two district courts reached opposite conclusions on whether stock received by policyholders in connection with demutualization of insurance companies had a cost basis greater than zero. They agreed, however, that the “open transaction doctrine” did not apply. The first case is Dorrance, in the District of Arizona. The second is Reuben, in the Central District of California.
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June 1, 2013
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Article
The IRS updated its Large Business & Industry (LB&I) directive on the repair vs. capitalization issue that extends the suspension of field examinations (LB&I-04-0313-001) in keeping with its previous postponement of the effective date of the tangible property temporary regulations (T.D. 9564) (in amendments published Dec. 17, 2012) to tax years beginning on or after Jan.
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May 3, 2013
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BY
Sally P. Schreiber, J.D.
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Article
On Friday, the IRS issued final regulations requiring taxpayers that obtain employer identification numbers (EINs) to update their information with the IRS (T.D. 9617). The regulations, which will apply beginning Jan. 1, 2014, to give the IRS time to publish the relevant form and instructions, adopt without change proposed regulations that were issued last year (REG-135491-10).
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May 1, 2013
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Article
Sponsored by Drake Software As Congress took steps earlier this year to enact the first major tax re
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May 1, 2013
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BY
Charles J. Reichert, CPA
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Article
The U.S. District Court for the Middle District of Louisiana disallowed deductions generated by two Special Limited Investment Partnerships (SLIPs) transactions because the transactions lacked economic substance and did not have a nontax business purpose. In addition, the court found that the two partnerships at the heart of the transactions were sham partnerships because they lacked a true business purpose.
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May 1, 2013
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Article
The IRS issued regulations (T.D. 9612) finalizing proposed regulations (REG-103580-02), which were issued in January 2003, on the treatment of certain call options, warrants, convertible debt, and convertible equity that are not issued in connection with the performance of services, i.e., noncompensatory partnership options. The final regulations apply to noncompensatory options that are issued on or after Feb.
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