Final regulations under Sec. 381 will change which corporation succeeds to the tax attributes, including the E&P, of the transferor or distributor corporation in certain acquisitions.
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TOPICS
C Corporation Income Taxation
Regulations Tightening Form 5472 Filing Requirements Are Finalized
Final regulations remove the provision allowing Form 5472, Information Return of a 25% Foreign-Owned U.S. Corporation or a Foreign Corporation Engaged in a U.S. Trade or Business, to be timely filed separately from the corporation’s tax return if that return is filed late.
Transfers of Installment Obligations Would Trigger Gain or Loss Under Proposed Rules
The IRS issued proposed regulations relating to the nonrecognition of gain or loss on certain dispositions of an installment obligation.
Update on the Medical Device Excise Tax
The medical device excise tax with its complex regulations and reporting requirements essentially amounts to a sales tax on members of a targeted industry group regardless of whether they have profits.
Consolidated Income of Affiliated Group Subject to Graduated Rates
The Tax Court held that all the consolidated income of an affiliated group that consisted of a corporation that was a qualified personal service corporation and another corporation that was not a qualified personal service corporation should be taxed using the graduated tax rates of Sec. 11(b)(1).
Benefits of Interest Charge Domestic International Sales Corporations
Taxpayers can use an interest charge domestic international sales corporation (IC-DISC) to obtain a tax incentive available to manufacturers, producers, resellers, and exporters of goods that are produced in the United States with an ultimate destination outside the United States.
IRS Fills in the Details on Anti-Inversion Proposals
IRS announced rules designed to reduce the tax benefits and therefore the incentives for corporate tax inversions.
IRS Finalizes Rules on Relief From Failure to File GRAs
The IRS finalized proposed regulations to update the rules that apply to U.S. taxpayers that fail to file gain recognition agreements when they transfer certain property to foreign corporations in nonrecognition transactions.
Regulations Finalize Rules on All-Cash D Reorganizations
The IRS finalized temporary regulations regarding the determination of the basis of stock or securities in all-cash D reorganizations where no stock or securities of the issuing corporation is issued and distributed in the transaction.
Final Rules Determine How E&P Is Treated in Corporate Reorganizations
New rules under Sec. 381 will change which corporation succeeds to the tax attributes, including the earnings and profits (E&P), of the transferor or distributor corporation in certain acquisitions.
Revisions Clarify R&E Expenditures Regs. for Taxpayers
Recent regulations provide clarity through enhanced definitions and numerous additional examples to assist taxpayers in determining what are includible as R&E expenditures.
Final Set of Repair Regs. Issued
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.
Schedule UTP: Comparative Statistics Through the First Transition Year
This item provides an overview of the IRS’s statistics on Schedule UTP through the first three tax years of filings.
FICA Taxation of Nonqualified Deferred Compensation Arrangements
With the passage of the Patient Protection and Affordable Care Act, which provided for an increase in the Medicare tax rate for certain high earners who are members of the ERISA “top hat” group, and recent discussions about the status of Social Security and Medicare funding, it is appropriate to review the rules in Sec. 3121(v)(2) governing FICA taxation.
The Orphan Drug and Research Tax Credits: The “Substantially All” Rule
The research credit under Sec. 41 (when in effect) and the orphan drug credit under Sec. 45C are sometimes available for the same expenses incurred during the development of pharmaceuticals. Understanding how the credits work and how to maximize the benefit from both of them when they are both available can reduce taxes for eligible companies.
Details of Proposed Anti-Inversion Rules Are Revealed
The IRS followed up on the Treasury Department’s announcement that it is cracking down on corporate tax inversions by providing more detail on how the crackdown will work.
Treasury Moves to Curb Tax Inversions
The Treasury Department announced that it will take steps to curb corporate tax inversions, a growing tax minimization strategy that has been the subject of many headlines recently.
IRS Explains Power-of-Attorney Requirements for Corporate Taxpayers
The IRS issued a bulletin clarifying when corporate officers or employees must have a valid power of attorney in order to represent the company before the IRS.
IRS Broadens 70% Safe-Harbor Deduction for Investment Advisory Milestone Payments
Recent guidance is favorable to taxpayers and simplifies the determination of which milestone payments qualify for the 70% elective safe harbor.
Beware of Sec. 382 When Issuing Stock Warrants or Convertible Debt
It is important for loss corporations to understand the rules surrounding the treatment of warrants and equity conversion features under Sec. 382.
TAX PRACTICE MANAGEMENT
2025 tax software survey
AICPA members in tax practice assess how their return preparation software performed during tax season and offer insights into their procedures.
