This update surveys recent federal tax developments involving individuals, including court cases, rulings, and guidance issued during the six months ending October 2024.
March 2025 - The Tax Adviser
credits against tax
The research credit: Business-component requirement
The Fifth Circuit’s decision in Grigsby, 86 F.4th 602 (5th Cir. 2023), emphasizes the need for taxpayers to clearly define business components when preparing and documenting their Sec. 41 credit.
TAX CLINIC
corporations & shareholders
ESTATES, TRUSTS & GIFTS
expenses & deductions
FOREIGN INCOME & TAXPAYERS
INTEREST INCOME & EXPENSE
partners & partnerships
COLUMNS
PERSONAL FINANCIAL PLANNING
TAX PRACTICE MANAGEMENT
STATE & LOCAL TAXES
CASE STUDY
employee benefits & pensions
Profits interests: The most tax-efficient equity grant to employees
By granting them a profits interest, entities taxed as partnerships can reward employees with equity. Mistakes, however, could cause challenges from taxing authorities.
