1. Topics

S Corporation, Partnership & LLC Taxation

Congress Makes Changes to Partnership Audit and Adjustment Rules

The new rules would apply to partnership returns filed for tax years beginning after Dec. 31, 2017.

IRS Proposes Rules on Disguised Payments for Services

The IRS issued proposed regulations that require a nonexclusive six-factor test to determine whether payments from a partnership to a partner are disguised payments.

Identifying a Partnership Distribution

A partnership distribution may consist of cash, property, or both. In addition, any reduction of a partner’s share of partnership liabilities is treated as an actual distribution of cash.

Extension OK Where Individual Had Apparent Authority to Sign It

A consent to extend the limitation period for the assessment for partnership items signed by the tax matters partner of a partnership in his capacity as the tax matters partner of another partnership was valid because the individual had the apparent authority to sign the consent.

Should S Corporations Get Ordinary Loss Treatment for Losses on Subsidiary Stock?

The question of whether an S corporation should be treated the same as a C corporation when its subsidiary corporation is insolvent has not been definitively answered.

Notice Contains Rules on Gain Recognition for Property Transferred to Foreign Partnerships

The IRS intends to issue regulations under Sec. 721(c) to ensure that a U.S. person recognizes gain either immediately or periodically when it transfers certain property to a partnership that has foreign partners related to the transferor.

Accounting for the Death of a Partner

This column reviews the income tax rules that come into play upon a partner’s death.

Special Care Needed in Dealing With Statute-of-Limitation Issues for TEFRA Partnerships

Audits of flowthrough entities such as partnerships cause administrative complexity for the IRS and taxpayers because the audit sometimes drags on longer than the statute-of-limitation period for the IRS to make an adjustment.

The Tax Adviser 2014 Best Article Award

James M. Greenwell received the award for his article on Sec. 704(c) Allocations.

Regulations Determine Partnership Distributive Shares When Ownership Changes

The IRS issued final regulations on determining partners’ distributive shares of partnership items when a partner’s interest varies during the partnership’s tax year.

Return Due Dates Changed in Highway Funding Bill

The short-term highway funding extension passed by the Senate contains several important tax provisions.

Attacking Transactions to Evade General Utilities Repeal

Temporary regulations prevent corporations from avoiding tax through the use of partnerships.

Proposed Rules Define Disguised Payments for Services in Partnerships

The IRS will apply a six-factor test to determine whether payments to partners are disguised payments for services under proposed regulations.

Is It Rent? That Depends on the Lease

A recent Tax Court decision sheds light on the importance of lease terms to determine what is rent and how Sec. 467 may apply to advance rents.

Reporting Information Regarding LLCs’ Passive Activities

Determining whether each individual member of an LLC materially participates requires assumptions that can pose problems.

Making a Valid Sec. 754 Election Following a Transfer of a Partnership Interest

It is not uncommon for a partnership to attempt to make a valid Sec. 754 election, only to find that it failed to satisfy regulatory requirements.

Tax Considerations for Cancellation-of-Debt Income

This item provides an overview of the U.S. income tax implications of cancellation-of-debt income that results from bankruptcy or insolvency, with a focus on the differences in the tax treatment for C corporations, S corporations, and partnerships.

The Exclusion for Meals and Lodging

This article explains the general exclusion under Sec. 119(a) and the other limited exclusions for meals and lodging received from an employer and addresses whether a partnership may treat a partner as an employee for purposes of the Sec. 119(a) exclusion.

Selling Partnerships That Own CFCs: A Potential Trap for the Unwary

Should gain recognized on a sale of a partnership that owns CFC stock be treated as capital gain or ordinary income?

Incorporating a Partnership and Selling to an ESOP in a Tax-Free Transaction

This item explores the main issues a partnership should consider from a restructuring perspective when considering ESOP ownership transactions.
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