April 2011

April 29, 2011

IRS Allows Deduction for Payments for Preferred Stock Used to Settle Bank’s Lawsuits

In a private letter ruling, the IRS’ Office of Chief Counsel allowed a private bank catering to high-wealth individuals to deduct as ordinary and necessary trade or business expenses the payments it made to settle lawsuits arising from criminally fraudulent activities by one of the bank’s fund managers.

April 27, 2011

AICPA Recommends Ways IRS Could Reduce Schedule M-3 Burdens

The AICPA encouraged the IRS to collaborate with external stakeholders in revising Schedule M-3, Net Income (Loss) Reconciliation, and suggested some revisions to reduce taxpayers’ compliance burdens.

April 20, 2011

IRS Issues Proposed Regulations on Controlled Group Deferred Losses

The IRS issued proposed regulations on the time for taking into account deferred losses on the sale or exchange of property between members of a controlled group.

April 15, 2011

IRS Extends, Modifies Program Allowing Truncated Social Security Numbers on Information Returns

The IRS announced that it is extending and modifying a pilot program designed to deter identity theft that allows filers of certain paper information returns to truncate the payee’s Social Security number on the payee statement.

April 14, 2011

President Signs Repeal of Expanded 1099 Requirements

The president signed into law repeal of both the expanded Form 1099 information reporting requirements mandated by last year’s health care legislation and also the 1099 reporting requirements imposed on taxpayers who receive rental income enacted as part of last year’s Small Business Jobs Act.

April 14, 2011

AICPA’s Call for AMT Repeal, Simplification Strikes Chord with Lawmakers

Annette Nellen, chair of the AICPA Individual Income Taxation Technical Resource Panel, pleased some members of Congress when she repeated the AICPA’s support for repeal of the alternative minimum tax (AMT) in testimony before the House Ways and Means Committee on April 13.

April 13, 2011