Considerations for multinationals with US and Maltese operations
This discussion explores certain issues that multinationals should consider when deciding whether to use Malta as part of their worldwide operations.
C Corporation Income Taxation
Freezing stock value with a corporate recapitalization
A corporate recapitalization can freeze the value of the owner’s stock, potentially reducing the owner’s estate tax liability by removing future appreciation in the value of stock from the owner’s estate.
Maximizing the benefits of general business tax credits
The Sec. 196 deduction for unused business credits is available both where the credit carryforward period expires and when a taxpayer dies or ceases to exist.
Differences between transfer pricing and financial reporting valuations
The difference in valuation standards between financial reporting and transfer pricing leads to the use of different valuation methods for each. This may significantly affect the valuation of the asset for transfer-pricing purposes.
Customs duty refunds on transfer-pricing adjustments
This discussion explores key considerations to keep in mind for claiming customs duty refunds on transfer-pricing adjustments.
An early 21st century history of IRS efforts to police the R&D credit
The IRS has attempted to review and audit R&D credit claims through various techniques and strategies over the years, and the FAA harks back to recordation requirements of the late 1990s and early 2000s.
Reinstatement of the Superfund excise tax
This item addresses and summarizes the key provisions of the Infrastructure Act as it pertains to the reinstated Superfund tax, along with some taxpayer considerations related to the tax.
A resurgence of the accumulated earnings tax?
A nondividend payment by a corporation out of its surplus earnings may be viewed by the IRS as evidence of a purpose to avoid shareholder-level income tax.
Biden proposes higher corporate tax rate, 20% billionaire minimum tax
Fiscal 2023 tax provisions also would increase IRS funding, encourage domestic business investments, and repeal many fossil fuel tax preferences.
IRS rules on cancellation of debt of a disregarded entity
Taxpayers should strongly consider these letter rulings when trying to determine whether they want to structure a borrowing with a regarded entity as the legal borrower or whether they prefer to have a DRE be the legal borrower of the debt.
Shareholder’s forgiveness of insolvent corporation’s debt
A debt cancellation or forgiveness by a corporation’s shareholder is a common transaction, but some critical tax consequences are uncertain including the determination of any income from the cancellation of debtunder certain circumstances.
The research credit: Using statistical sampling
This item discusses the Sec. 41 research credit and how statistical sampling can be used to efficiently satisfy the fourpart test that governs whether research activities qualify for the credit.
Research credit refund claims: New documentation requirements
A Chief Counsel memorandum advises that taxpayers must provide additional information to make a valid Sec. 41 research credit refund claim on an amended tax return.
Letter ruling provides clarity on Sec. 1202 definition of brokerage services
In determining whether a corporation was engaged in brokerage services, the IRS ignored definitions of the term in other areas of the tax law and instead resorted solely to the plain meaning of the term as found in a dictionary.
IRS issues procedures for employee status determinations
Prior guidance on Tax Court jurisdiction over IRS determinations of employee vs. independent contractor status is modified and superseded.
New R&D credit documentation requirements clarified
Starting Jan. 10, a Sec. 41 credit claimed on an amended return must include specific information.
What’s new for 2022 in federal taxes
A law change and some regulations take effect while an array of provisions expire.
Voluntary carbon offsets: The evolution of a business expense
This article discusses the disclosure and reporting of VCOs and whether VCOs should be treated as deductible ordinary and necessary business expenses, capitalizable expenses, deductible charitable contributions, or nondeductible expenses.
Deferral of penalties for failure to timely deposit employment taxes
The IRS determined that a failure to deposit any portion of the federal employment taxes deferred by the CARES Act by the applicable installment due date will result in a penalty.
Identifying corporations subject to the at-risk rules
The at-risk rules limit the losses allowed to closely held C corporations on certain investments, testing each separate activity to determine if the corporation is at risk for that activity.
