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1. AICPA asks for raise in repair regulations’ de minimis safe harbor threshold   WebExclusive

BY Alistair M. Nevius, J.D.
Jeffery Porter, CPA, chair of the AICPA’s Tax Executive Committee, wrote to Andrew Keyso, IRS associate chief counsel, on Wednesday, raising the AICPA’s concerns about the low amount of the de minimis safe harbor threshold in the tangible property regulations (T.D. 9636) that were issued in September 2013, and about the retrospective application of the new rules.

2. Goodwill not distributed to sole shareholder  

BY Matthew Schippers, CPA, CGMA
The Tax Court finds that a family trucking business did not distribute appreciated intangible assets under Sec. 311(b).The Tax Court held that a trucking company’s alleged goodwill was personally owned by its sole shareholder, and therefore the trucking company had no goodwill asset to transfer. Because goodwill was not distributed to the shareholder, he did not transfer it to his sons and therefore was not required to have filed a gift tax return.Facts: Bross Trucking Inc.

3. Giant Eagle’s advance deductions grounded  

BY Karen M. Cooley, CPA, MBA and Darlene Pulliam, CPA, Ph.D.
No deduction or gross profit offset is allowed for discounts offered on future fuel purchases by customers under a customer loyalty program.The Tax Court held that a taxpayer was not entitled to deduct the estimated future cost of fuel discounts earned by its customers until those discounts were redeemed.

4. Qualified lessee construction allowances  

BY Alistair M. Nevius
Under Sec. 110, certain businesses that are tenants of a retail space may exclude from gross income amounts received from the lessor of the space to construct or improve real property used in the taxpayer’s trade or business. This safe harbor applies where the lease is for 15 years or less (including options to renew) and the property improved or constructed is nonresidential real property that is not Sec.

5. IRS signals PPACA compliance issues for 2015   WebExclusive

BY Andrew Phillips, J.D., Lindsey Buchholz, J.D., Jennifer Villarino, J.D. and Jim Buttonow, CPA/CITP
This month, the IRS made several updates to the Internal Revenue Manual (IRM) that provide insight on the notices and enforcement methods the Service will use next tax season to ensure taxpayers comply with the Patient Protection and Affordable Care Act (PPACA), P.L. 111-148. Most compliance efforts focus on the premium tax credit and the individual shared-responsibility payment.

6. Doctors lack standing to challenge delay of employer mandate   WebExclusive

BY Sally P. Schreiber, J.D.
The Seventh Circuit affirmed the dismissal of a suit objecting to the IRS’s decision to delay imposing the Sec. 4980H employer mandate penalty until 2015 (Association of American Physicians and Surgeons, Inc., No. 14-2123 (7th Cir. 9/19/14), aff’g No. 13-C-1214 (E.D. Wis. 3/18/14)).Under Sec. 4980H, an applicable large employer is subject to a penalty if its employer-sponsored health coverage does not provide “minimum essential coverage” or is not affordable relative to the employee’s household income and at least one full-time employee has been certified as having enrolled in a qualified health plan with respect to which an

7. Details of proposed anti-inversion rules are revealed   WebExclusive

BY Sally P. Schreiber, J.D.
The IRS followed up on the Treasury Department’s Monday announcement that it is cracking down on corporate tax inversions by providing more detail on how the crackdown will work (Notice 2014-52). The new rules, which will be issued as regulations, generally apply to inversion transactions occurring on or after Sept.

8. Success-based fees and milestone payments   CPEDirect

BY Alistair M. Nevius
When taxpayers incur costs that relate to an acquisition or restructuring, they generally must capitalize any costs incurred to facilitate (i.e., investigate or otherwise pursue) the transaction (Regs. Sec. 1.263(a)-5). When fees paid to service providers are contingent upon the successful closing of a transaction, taxpayers can use a facts-and-circumstances test or a safe harbor to determine what portion of the fees are deemed to “facilitate” that transaction (Rev.

9. Regs. govern dispositions of depreciable property   WebExclusive

BY Alistair M. Nevius, J.D.
The IRS issued final regulations providing rules for how to determine gain or loss when property subject to depreciation is disposed of, how to determine the asset disposed of, and how to account for partial dispositions of depreciated property (T.D. 9689). The regulations apply to property that is subject to depreciation under the modified accelerated cost recovery system (MACRS) and to tax years beginning on or after Jan.

10. Final rules clarify retailers’ treatment of vendor discounts in inventory valuation   WebExclusive

BY Paul Bonner
Final regulations issued Thursday restate and clarify retailers’ computation of ending inventory value, including the application of common vendor discounts (T.D. 9688). The amendments to Regs. Sec. 1.471-8 are intended to render that section’s provisions in plainer language and provide rules for how sales-based vendor allowances and vendor markdown allowances and margin protection payments are taken into account under the retail-inventory method.
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