Deductions

The IRS has created an LB&I compliance campaign that affects multichannel video programming distributors and television broadcasters.

The U.S. Tax Court held that pregame meals provided to players and personnel before away games qualify as a de minimis fringe benefit.

Among the first wave of examination “campaigns” announced by the IRS’s LB&I is the application of the Sec. 199 domestic production activities deduction to “multi-channel video programming distributors.”

Taxpayers should expect to see continued controversy
regarding when a liability is fixed for customer discounts.

In this case, compensation paid by a closely held corporation was reasonable and therefore deductible.

The fees were unnecessary because the taxpayer did not provide proof to show that any services were actually performed in exchange for the fees.