Planning for an IPO: Is your tax department prepared?
Depending on the IPO structure, the company may need to provide tax accruals for additional reporting periods or updates to existing financial statement disclosures.
C Corporation Income Taxation
IRS finalizes $1 million executive compensation limit rules
The IRS issued final rules on the $1 million executive compensation limits enacted by the TCJA, finalizing proposed rules with a few changes in response to comments.
Tax provisions in the year-end coronavirus relief act
Pandemic relief, tax extenders, and much more were included in year-end legislation.
Sec. 163(j) final regs. address the classification of lender fees
This column discusses when loan fees are considered interest expense for purposes of Sec. 163(j)’s interest expense limitation.
Final regs. provide guidance on TCJA changes to entertainment deduction rules
In general, food or beverage expenses paid or incurred while traveling for business are subject to the 50% limitation as well as the substantiation requirements described in Sec. 274(d).
IRS memo addresses holding periods for meaningless gesture transactions
The IRS released a generic legal memorandum, which discussed tax consequences of a contribution made by a sole shareholder of a corporation, where the shareholder contributes money or other property to its wholly owned corporation for no consideration.
Security call: Determining whether debt is a security
Whether a corporation’s debt is a security could have significant tax ramifications when the debt is exchanged for stock or new debt.
Employee retention credit changes leave practitioners with questions
The IRS issued guidance on two aspects of the employee retention credit — how to claim the credit when filing the fourth quarter Form 941 when the taxpayer knows its loan under the PPP will not be forgiven and how the newly extended and amended employee retention credit will apply.
Taxpayers need clarity on coordination of ERC and PPP loans
The AICPA asked the IRS and Treasury to clarify that the filing of a Paycheck Protection Program loan forgiveness application is not an election by the taxpayer to forgo the employee retention credit for wages reported on the application exceeding the amount of wages necessary for loan forgiveness.
Final regs. govern deductibility of fines and penalties
The IRS issued final regulations on when fines and penalties paid to a government are not deductible by a taxpayer, including defining when a payment counts as restitution, which may be deductible.
Choosing a tax year for a personal service corporation
A personal service corporation must generally use a calendar year, but it can choose a fiscal year in certain circumstances.
IRS issues final regulations on consolidated group NOLs
The IRS finalized regulations governing the treatment of net operating losses by consolidated groups after recent legislation changed the rules.
2021 standard mileage rates decrease
The IRS issued the 2021 standard mileage rates for use in computing the deductible costs of operating an automobile for business, charitable, medical or moving expense purposes. The rates all decreased from 2021 to 2020.
Executive compensation regulations finalized
The IRS issued final rules on the $1 million executive compensation limits enacted by the law known as the Tax Cuts and Jobs Act, finalizing proposed rules with a few changes in response to comments.
Final rules govern disallowed transportation fringe benefits
The IRS finalized proposed rules on the disallowance of deductions for transportation fringe benefits, which was enacted by the law known as the Tax Cuts and Jobs Act.
Several tax provisions set to expire at end of 2020
Among the expiring provisions are the lower 7.5% AGI floor for medical expense deductions and the deduction for qualified tuition and related expenses.
Final regulations on the meals and entertainment deduction
The IRS issued regulations to address the changes made to the meals and entertainment deduction under the TCJA.
Tax-saving opportunities for the housing and construction industries
This item discusses how businesses can qualify for incentives in the housing and construction industries and how tax preparers can assist them in claiming these tax benefits.
The built-in gains tax
The built-in gains tax applies to C corporations that make an S corporation election, and it can be assessed during the five-year period starting with the first tax year for which the S election is effective.
Deductions for meal and entertainment expenses
The IRS finalized rules disallowing deductions for most business entertainment expenses and distinguishing them from business food and beverage expenses that remain deductible.
