IRS Gone Rogue? Investigating Policy on RICs’ Commodity-Related Investments

Higher prices at the pump got you down? Recent news stories suggest that commodity speculation may be a significant factor. (See, e.g., "Pump Prices Climb to Record High Level," Los Angeles Times (February 7, 2012)). The Commodity Futures Trading Commission (CFTC) oversees the financial market...

Statutory Apportionment and Burdens of Proof: CarMax West

In March, the Court of Appeals of South Carolina decided an interesting case involving a corporation's use of South Carolina's statutory standard apportionment formula in calculating the corporation's taxable state income. [See CarMax Auto Superstores West Coast, Inc. v. S.C. Dep't of...

IRS Issues Guidance for Schedule UTP Concise Descriptions

The IRS revised the Instructions for Schedule UTP in early February, but one thing that it did not change was the definition of the concise description required to accompany each uncertain tax position. The IRS later publicly expressed concerns over the small number of taxpayers (about 133) who offered...

Tax Treatment of Gift, Dividends, or Loans to Employees

by Mary Howley * Although gifts are generally excluded from income, gifts from employers to employees are generally included in income. Achievement awards given to employees from employers may be excluded from income in certain cases. Holiday gifts of food or other merchandise of nominal value are...