1. Topics

S Corporation, Partnership & LLC Taxation

Choice-of-entity analysis with the TCJA sunset approaching

Educators as well as practitioners can model the tax effects of choice of entity and possible scenarios of tax law change.

LLC validly elected into BBA partnership examination regime

To make a valid election into the Bipartisan Budget Act’s audit procedures, the IRS could not require the taxpayer to establish, as opposed to represent, that it had sufficient assets to pay any imputed underpayment, the Tax Court held.

Cleaning up intercompany debt

An intercompany loan between related corporations may be recharacterized as an equity contribution by the companies’ shareholders, resulting in a constructive dividend to the shareholders. This article focuses on a recent Tax Court case involving the proper characterization of purported intercompany loans between two S corporations.

Intangible property repatriation rules finalized

The regulations terminate the continued application of the Sec. 367(d) annual inclusion in certain cases when intangible property is repatriated to the United States after previously being transferred to a foreign corporation.

Distributions to LLC members that contributed appreciated property

The Sec. 737 rules can cause a member to recognize precontribution gain on contributed property where the value of property later distributed to that member exceeds their basis in the LLC.

State considerations for BBA exams and adjustments

States vary in their treatment of partnership adjustments made under the centralized partnership audit regime instituted by the Bipartisan Budget Act of 2015.

Advising S corporation clients on reasonable compensation

Advising owner-shareholders can prove invaluable in meeting guidelines for distinguishing compensation from distributions.

Corporate AMT proposed regulations issued; some penalties waived

The IRS issued proposed regulations providing guidance on the corporate alternative minimum tax (AMT) and a notice that waives the penalty for failure to pay estimated tax with respect to the corporate AMT for 2024.

Recent developments in states’ PTETs

This column offers updates and resources regarding the passthrough entity taxes that have been implemented in three dozen states.

Partnerships in distress: Raising capital and debt exchanges

Taxpayers should consider tax planning issues for partnerships and their partners when raising capital and exchanging debt for equity.

FinCEN uses TV ad to tell businesses about BOI

The PSA uses a chat between friends in a coffee shop to educate small businesses about beneficial ownership information reporting, which 32.6 million businesses must file.

BOI requirements roll along despite concerns about too little outreach

FinCEN, which oversees beneficial ownership information reports, has received just 2.7 million of the 32.6 million reports that it expects. Through June, FinCEN said, it has reached more than 90,000 stakeholders.

Foreign partnership reporting requirements

U.S. persons owning an interest in a foreign partnership may be required to file Form 8865, and the partnership may also face additional U.S. filings.

The past, present, and future of the BBA partnership audit regime

The Bipartisan Budget Act streamlined the partnership audit and adjustment processes, but uncertainties remain.

Partnership elected BBA procedures; TEFRA FPAA invalid

An early election into the partnership audit regime of the Bipartisan Budget Act was valid under the regulations, the Tax Court held.

Partnership distributions: Rules and exceptions

Although the general rules for how partners are taxed on distributions are relatively straightforward, many subtleties and exceptions can lead to missteps.

The double-tax consequences of an S corporation subject to BIG tax

A corporation’s built-in gains (BIG) tax cost of disposing of assets in liquidation within five years after its S election can be substantial.

FinCEN estimates millions of hours will be spent seeking BOI access

Almost 16,000 entities will spend over 8.7 million hours seeking access to beneficial ownership information in the first year, FinCEN estimated in a new notice.

Final regs. issued for 1% excise tax on corporate stock repurchases

The final regulations provide guidance regarding the reporting and payment of the excise tax on repurchases of corporate stock made after Dec. 31, 2022.

Recapture considerations for Inflation Reduction Act credits

The Inflation Reduction Act not only created $663 billion in new energy-related credits over 10 years, but it also expanded opportunities to monetize many of the energy tax credits through direct payment and transfer elections.
Next
Previous