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An increasing number of businesses are finding it difficult to pay their debt obligations as a result of tight credit and a slow economy. In many cases, businesses are reducing [...]

The use of restricted stock awards to compensate employees is growing in popularity in place of the much-maligned stock option. One of the reasons for the shift to restricted stock [...]

EXECUTIVE SUMMARY * Final regulations give guidance for changes made to S corporations by the AJCA and the 60 Zone Act. * The IRS provided simplified relief procedures in Rev. [...]

EXECUTIVE SUMMARY * Circular 230 outlines the duties and restrictions relating to practice before the IRS and the rules regarding disciplinary proceedings for violations. Final regulations issued in 2007 made [...]

EXECUTIVE SUMMARY * Through regulations and other forms of guidance issued since 1999, the IRS has clearly put tax practitioners on notice that it considers tax shelter transaction that generate [...]

EXECUTIVE SUMMARY * Sec. 409A's definition of NQDCAs is extremely broad and potentially ensnares employment, severance and bonus arrangements. * Most deferral arrangements are subject to Sec. 409A, unless specifically [...]

EXECUTIVE SUMMARY * The Service issued much-anticipated proposed regulations on the application of Sec. 409A to NDC, and other guidance on Sec. 409A and offshore trusts. * A ruling provides [...]

EXECUTIVE SUMMARY * Under the PPA '06, taxpayers must keep specific written records, such as a bank record or receipt, for all cash donations. * The substantiation rules for property [...]

EXECUTIVE SUMMARY * Notice 2005-91 offers guidance on how to make the "family election." * The transactions addressed in IRS letter rulings are becoming more complex. * Many rulings were [...]

EXECUTIVE SUMMARY * A foreign trust is any trust that fails to satisfy the court or control test for establishment of U.S. domestic trust status. * The AJCA expatriation rules [...]

EXECUTIVE SUMMARY * Many states have increased the sales factor or are phasing in a single sales factor over a period of years. * California conformed to certain AJCA tax-shelter [...]

EXECUTIVE SUMMARY * A regulation on best practices for tax advisors was added to restore, promote and maintain the public's confidence. * Circular 230's definition of a covered opinion raises [...]

EXECUTIVE SUMMARY * The IRS issued regulations effective in 2006 on Sec. 401(k) cash-or-deferred arrangements, including rules on ADP tests, QNECs and designated Roth contributions. * The DOL issued guidance [...]

EXECUTIVE SUMMARY * The Tenth Circuit's decision in Colorado Gas Compression was essentially overruled by a new regulation. * The issuance of Regs. Sec. 1.1363-2 overruled the Eleventh Circuit's decision [...]

EXECUTIVE SUMMARY * The AJCA added a new layer of compliance requirements, to avoid present taxation of NQDCs and restrict funding structures for such arrangements; it also added reporting requirements. [...]

This two-part article discusses recent legislation, cases, rulings, regulations and other developments in the S corporation area. Part I focuses on eligibility, election and termination issues. EXECUTIVE SUMMARY * New [...]

Enacted as part of the American Jobs Creation Act of 2004, Sec. 199 establishes a deduction for income from certain production activities, including construction activities, performed in the U.S. The [...]

Congress has debated the merits of various tax measures for expatriates for more than 20 years. The most straightforward approach is an exit tax on all untaxed asset appreciation on [...]

After the American Jobs Creation Act of 2004 (AJCA), reportable transactions have new importance to tax advisers and their clients, causing them extra concern. The risks for not disclosing such [...]

EXECUTIVE SUMMARY * THE AMERICAN JOBS CREATION ACT ADDED IRC section 409A and significantly changed the rules for nonqualified deferred compensation plans. For a deferral to escape current taxation, it [...]

EXECUTIVE SUMMARY * U.S. taxpayers having a financial interest in, or signature or other authority over, any financial account in a foreign country exceeding $10,000 should file an FBAR. * [...]

The American Jobs Creation Act of 2004 (AJCA) changed the Sec. 1092 straddle rules, including (1) creating a new identified straddle regime, (2) repealing the so-called "stock exception" and (3) [...]

EXECUTIVE SUMMARY * THE WORKING FAMILIES TAX RELIEF ACT OF 2004 extends the alternative minimum tax exemption of $58,000 (married filing jointly) and $40,250 (single) through 2005. * THE WFTRA [...]

EXECUTIVE SUMMARY * A partnership may allow immediate flowthrough of FTCs and losses, but is subject to complex U.S. rules when allocating income, gain, losses and taxes. * Foreign corporations [...]

On Oct. 22, 2004, President Bush signed into law the American Jobs Creation Act of 2004 (AJCA), a $138 billion tax package with a wide-ranging effect on foreign and domestic [...]

The American Jobs Creation Act of 2004 (1) (AJCA), enacted on Oct. 22, 2004, probably contains the most far-reaching set of tax law changes since the Tax Reform Act of [...]

EXECUTIVE SUMMARY * The AJCA requires a negative basis adjustment when there is a transfer of a partnership interest. * The IRS issued final regulations on revaluations of capital accounts [...]

EXECUTIVE SUMMARY * The new itemized deduction for state and local sales taxes primarily benefits residents of states with little or no income tax; an above-the-line deduction for attorneys' fees [...]

"More plans, more rules, more taxes." This is the best way to describe the new world of nonqualified deferred compensation (NQDC) plans after the American Jobs Creation Act of 2004 [...]

The extraterritorial income (ETI) regime was enacted in 2000 to provide domestic taxpayers with special tax benefits for certain export-related income. After only a few years on the books, however, [...]

On September 26, 2007, the IRS released final and proposed regulations (TD 9359 and REG-138637-07) amending Circular 230, Regulations Governing the Practice of Attorneys, Certified Public Accountants, Enrolled Agents, Enrolled [...]

The highly publicized accounting scandals of 2002, such as Enron, WorldCom, and Global Crossing, along with revelations about tax shelter abuses, have had wide-reaching financial effects on investors and the [...]

U.S. multinational corporations repatriated billions of dollars in earnings from foreign subsidiaries to the U.S. under Sec. 965 during the time such repatriation was allowed. Companies that took advantage of [...]

As the tax filing deadline approaches, questions always arise about clients who exercised stock options last year and are now in shock over their tax bills. These clients forgot to [...]

Significant controversy has arisen as to the application of Sec. 199 to intercompany transactions. Taxpayers that want to take advantage of the Sec. 199 qualified production activities deduction (QPAD) and [...]

On Oct. 22, 2004, President Bush signed into law the American Jobs Creation Act of 2004 (AJCA), which provides taxpayers with the rare opportunity to lower their effective tax rates [...]

S corporation status first became available to financial institutions in 1997; ever since, over 2,000 banks and thrifts-almost 25% of all financial institutions--have converted from C to S status. Many [...]

The American Jobs Creation Act of 2004, Section 836, enacted Sec. 362(e)(2), to limit the importation of built-in losses (BILs) in Sec. 351 transactions. Specifically, Sec. 362(e)(2)(A) limits the aggregate [...]

With the promulgation of the American Jobs Creation Act of 2004 (AJCA), the deductibility of expenses for the personal use of an employer-provided aircraft has been severely limited. Under prior [...]

Section 833 of the American Jobs Creation Act of 2004 (AJCA) amended Secs. 704(c) (1)(C) and 743 to limit a partnership's ability to duplicate or shift losses between taxpayers with [...]

In the late 1990s and early 2000s, professional service firms and financial institutions aggressively promoted an abusive tax avoidance transaction--the "executive stock option scheme." Executives (often facilitated by their corporate [...]

In Notice 2005-12, the IRS announced it will issue regulations implementing the Secs. 6662A, 6662 and 6664 accuracy-related penalty provisions for reportable transaction understatements. The notice also provides interim rules [...]

Under American Jobs Creation Act of 2004 (AJCA) Section 422(a), corporate taxpayers can elect to claim a deduction for 85% of cash dividends received from controlled foreign corporations (CFCs) in [...]

If a partner contributes property to a partnership, generally, neither the contributing partner nor the partnership recognizes any gain or loss at the time of the contribution. The partnership takes [...]

The IRS issued final regulations (T.D. 9633) under Sec. 362(e)(2) that provide guidance on the determination of the bases of assets (including stock) transferred in certain nonrecognition transactions to which [...]

The IRS issued final regulations (T.D. 9542) governing elections by individual taxpayers, corporations, and partnerships to deduct start-up expenses or organizational expenditures. The regulations adopt (with a slight change) temporary [...]

The foreign tax credit provided under Sec. 901 is limited by Sec. 904 to the portion of a taxpayer's total tax equal to the ratio of the taxpayer's taxable income [...]

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 [...]

The use of private aircraft eliminates the inconvenience of commercial flights, but clients do not normally call their CPAs in midflight to inquire about the tax ramifications of taking a [...]

The American Jobs Creation Act of 2004 was signed into law on Oct. 22, 2004. It repealed the extraterritorial income tax regime, but gave corporations various new tax incentives. Among [...]