Recently added articles from The Tax Adviser:
Final regs. issued on corporate reorganizations.
Jan 01, 2008; Nevius, Alistair M. ... The IRS has issued final regulations (TD 9361), effective October 25, 2007, 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). The regulations also provide guidance on the ...
Change in accounting method request does not qualify for audit protection.
Jan 01, 2008; Rohrs, Jane ... The IRS has ruled in technical advice (TAM 200738014) that a service provider's request for a change in accounting method for mixed service costs does not qualify for audit protection because the service provider received written notification, citing the treatment of mixed service costs as ...
Accounting period changes affecting CFCs and corporations exiting a consolidated group.(controlled foreign corporations)
Jan 01, 2008; Rohrs, Jane ... In Rev. Proc. 2007-64, the Service has modified the scope provision set forth in Rev. Proc. 2006-45 for corporations that exit a consolidated group and request consent to change their annual accounting periods. Rev. Proc. 2007-64 also modifies the terms and conditions relating to ...
Ninth Circuit affirms transferred residential property must be included in gross estate.
Jan 01, 2008; Ferretti, Scott J. ... The Ninth Circuit, affirming the Tax Court, has ruled that the full fair market value of residential property must be included in the decedent's gross estate, finding that the decedent retained income and economic enjoyment from the property and that the inter vivos transfer of the ...
IRS releases new Form 8886-T and final instructions.
Jan 01, 2008; Hancock, Mark ... On September 22, 2007, the IRS released new Form 8886-T, Disclosure by Tax-Exempt Entity Regarding Prohibited Tax Shelter Transaction, and the final instructions for its use. The new form requires tax-exempt organizations to report prohibited tax shelter transactions (e.g., listed ...
IRS issues second IDD on domestic production deduction.(industry director directive)
Jan 01, 2008; Benko, Beth ... The IRS has issued a follow-up directive to the industry director directive (IDD) issued on December 6, 2006 (LMSB-04-1206-018), on the Sec. 199 domestic production deduction (DPD) (LMSB-04-0707-049).The DPD is a designated Tier I issue and as such must be identified, developed, and ...
Service addresses REIT's temporary investment of new capital.(real estate investment trusts)
Jan 01, 2008; Fisher, Mark ... In Letter Ruling 200740004, the Service determined that a real estate investment trust (REIT) qualified for the "temporary investment of new capital" rules for purposes of the REIT income and asset tests when the REIT loaned the proceeds of its public debt offering to its operating ...
Prop. regs. reflect S corporation changes made by AJCA and GO Zone Act.(American Jobs Creation Act of 2004)
Jan 01, 2008; MacDonough, Laura ... Treasury and the IRS have issued proposed regulations (REG-143326-05) on S corporation rules to reflect changes made by the American Jobs Creation Act of 2004, P.L. 108-357 (AJCA), and the Gulf Opportunity Zone Act of 2005, P.L. 109-135 (GO Zone Act). In particular, the proposed ...
Simplified method relief for late S and entity classification elections.
Jan 01, 2008; MacDonough, Laura ... In Rev. Proc. 2007-62, the Service provides an additional simplified method for certain eligible entities to request relief for late S elections and for late entity classification elections that were intended to be effective as of the intended effective date of the S election. This revenue ...
Cash settlement and note from investment adviser are qualifying RIC income.(regulated investment company)
Jan 01, 2008; Munro, Alan ... In Letter Ruling 200739010, the Service ruled that a regulated investment company's (RIC's) receipt of cash and a note from its investment adviser (IA) are qualifying income under Sec. 851(b)(2). Further, although the note caused a Sec. 851(b)(3) asset-test failure, the IRS ruled that ...
Prop. regs. will eliminate federal tax benefit for many captive insurance companies.
Jan 01, 2008; Owens, Kevin ... The Service has issued proposed regulations (REG-107592-00 and REG-105964-98) that, if adopted, will eliminate the federal tax benefit associated with most captive insurance companies that are included in a consolidated federal return and insure other members of the consolidated group. The ...
IRS issues IDD on contractual allowance issues in the health care industry.(industry director directive)
Jan 01, 2008; Rohrs, Jane ... The Service has issued an industry director directive (IDD) (LMSB-04-0807-056) on contractual allowance issues in the health care industry. The IDD provides direction to the field on the efficient use of examination resources relating to the audit of contractual allowances. Specifically, ...
FIN 48 compliance: disclosing tax positions in an age of uncertainty.
Jan 01, 2008; Hennig, Cherie J. ... EXECUTIVE SUMMARY * The interaction of FAS 109 and FIN 48 will result in greater public disclosure of tax planning techniques. * Under FIN 48, a tax position is recorded only if the tax position is more likely than not to be sustained on examination (including ...
Significant recent corporate developments.(C corporations and consolidated returns)
Jan 01, 2008; Bakke, Don W. ... This article summarizes significant current developments affecting C corporations and consolidated returns. It covers new final, temporary, and proposed regulations and other noteworthy IRS guidance and case law. EXECUTIVE SUMMARY * The IRS finalized regulations under ...
Baby boomers brace for longevity risk with guaranteed annuities.
Jan 01, 2008; Ammons, Thomas C. ... [ILLUSTRATION OMITTED] The good news for baby boomers has been well documented and heavily publicized: Boomers are going to live for a long time, thanks to medical advances and lifestyle changes. However, this good news carries with it a fundamental challenge: How can boomers ...
IRS expands its offset authority.
Jan 01, 2008; Ely, Mark H. ... [ILLUSTRATION OMITTED] The Service has published three revenue rulings and proposed and temporary regulations that expand its ability under Sec. 6402(a) to offset overpayments against tax liabilities and its ability under Sec. 6411(b) to apply tentative carryback allowances ...
IRS announces release date for 1040 modernized e-file program.
Jan 01, 2008; Caplan, Robert M. ... The IRS has announced a release date of August 2009 for the modernized e-file (MeF) Form 1040. The MeF program is the newest generation IRS e-file computer system. It is currently required for large corporations, partnerships, and exempt entities. The Service expected to receive 1.5 ...
Prop. regs. clarify source of compensation rules.
Jan 01, 2008; Beavers, James ... The IRS has issued proposed regulations that would clarify the determination of the source of compensation for a person, including an artist or athlete, who is compensated for labor or personal services performed at a specific event or events. Current Rules ...
IRS agrees that payments from VA work therapy program are not includible in income.(Department of Veterans Affairs)
Jan 01, 2008; Beavers, James ... The IRS has acquiesced to the decision in Wallace, 128 TC No. 11 (2007), in which the Tax Court held that payments to veterans made by the Department of Veterans Affairs (VA) for work performed under a VA-administered compensated work therapy program are veterans' benefits that are ...