In March 2008, the Federal Circuit reversed a decision of the Court of Federal Claims that the qualification of payments as supplemental unemployment benefits under Sec. 3402 required the payments to be treated as nonwages for FICA tax purposes.
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TOPICS
C Corporation Income Taxation
Traps for the Unwary: Rollovers and the Sec. 338 Election
This item focuses on how to structure the transaction when one or more S corporation shareholders wish to roll over their S corporation investment. If structured incorrectly, a rollover can render a Sec. 338(h)(10) election unavailable.
Reduced Credit for Increasing Research Activities
A recent IRS chief counsel internal memorandum, AM 2008-002 (2/8/08), provides insight relative to electing the reduced credit available under Sec. 280C(c)(3) when claiming a research tax credit.
Sec. 199 Final Regs. on TIPRA Amendments and More
This item discusses how recent final regulations interpret statutory changes to Sec. 199 and how the regulations eliminate a potential issue in calculating taxable income for purposes of the Sec. 199 deduction.
IRS Posts Guidance on Changing from C Corp. to S Corp.
The IRS has posted on its website guidance for C corporations that wish to change to S corporation status.
Debt Discharge in Corporate Recapitalizations: Avoiding Surprises
Recapitalizations in which corporate debt is restructured or discharged are assuming a new prominence in the current economy.
IRS Examines Treatment of Restructuring Costs
The IRS provided guidance on the treatment of costs related to investigating various corporate restructuring transactions that ultimately were not consummated.
Final Regs. on Consolidated Group Liquidations
Final regulations effective January 15, 2008, explain how the members of a consolidated group succeed to tax items, or “attributes,” of a subsidiary corporation when two or more members of the group own stock in the subsidiary and the subsidiary is liquidated on a tax-free basis
Maximizing the Benefits of Sec. 199 in an Asset Sale
This article addresses the opportunity to claim a Sec. 199 deduction when a business is sold in an asset sale or in a stock sale that is treated as an asset sale under a Sec. 338(h)(10) election.
Federal, State, and Local Tax Incentives for Environmental Remediation Costs
This item provides a high-level overview of the most common federal, state, and local tax incentives and a brief update of the federal rules regarding the expensing of environmental remediation costs.
Tax Treatment of Payments in Common Pharmaceutical Agreements
The Service outlined its position on the treatment of the various types of payments under pharmaceutical collaboration agreements in a coordinated issue paper.
Sec. 382 Ownership and Fluctuation in Value
For a corporation with more than one class of stock, the effects stock price fluctuations can play a significant role in determining whether use of the NOLs could become limited as a result of trading and other equity shifts.
Assumption of Liabilities in Taxable Asset and Sec. 338(h)(10) Acquisitions
One cannot assume that the tax treatment of liabilities will conform with financial reporting, and with stricter FIN 48 and Sec. 6694 standards it is more important than ever that tax advisers get it right.
Restricted Stock in Acquisitions: IRS Provides Much-Needed Guidance
Rev. Rul. 2007-49 provides valuable guidance in determining whether Sec. 83 applies to the receipt of restricted stock in taxable and tax-free reorganizations. However, many questions remain unanswered.
IRS Changes Its Position on Performance-Based Compensation for $1 Million Compensation Limit
The IRS ruled that an incentive plan is not performance-based compensation because it allows payments upon involuntary termination without cause by the employer, voluntary termination by the employee with good reason, or voluntary retirement regardless of whether the performance goals are met.
Revisions to 2007 Form 1120-F
The IRS has revised Form 1120-F, U.S. Income Tax Return of a Foreign Corporation, and related schedules, effective for filing periods ending on or after December 31, 2007.
IRS to Perform Mandatory Audits of Foreign Earnings Repatriation
The IRS LMSB Division has identified foreign earnings repatriation as a Tier I compliance issue, making it a mandatory examination item for those U.S. taxpayers selected for audit that have elected to repatriate foreign earnings under Sec. 965.
Interpreting SEC Schedules 13D and 13G for Sec. 382 Purposes
Sec. 382 requires a taxpayer corporation to track the ownership shifts among “5% shareholders.”
Uncertainty Governs Advance Trade Discounts
This article discusses conflicting court opinions and IRS guidance on advance trade discounts and the merits of treating them as purchase price adjustments instead of income or loans.
Final Regs. Issued on Corporate Reorganizations
The IRS has issued final regulations that provide guidance regarding the effect of certain transfers of assets or stock on the continuing qualification of transactions as reorganizations under Sec. 368(a).
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.
