Tax Law

    • 6 Dec 2011

    Expense Method Depreciation: Thomann v. Commissioner

    Editor's Note: The following was excerpted from the LexisNexis Matthew Bender publication Farm Income Tax Manual, by Neil E. Harl, at 1-3 Farm Income Tax Manual § 3.20, available in print at the LexisNexis® Store . ... Non-corporate Lessors For lessors of property, property acquired and leased under a cash rent lease would seem to be ineligible for expense method depreciation. 79 Property under a...
    • 30 Nov 2011

    Further Guidance on Reporting on U.S. Accounts by Foreign Financial Institutions (FFIs)

    [ Editor's Note: This narrative is derived from Rhoades & Langer, U.S. International Taxation and Tax Treaties § 27.02[1][j] (Matthew Bender) .] In 2010, Congress adopted a rather complicated set of rules designed to further enforce compliance of U.S. tax and money laundering laws by U.S. taxpayers. [New Chapter 4 ( IRC §§ 1471 , 1472 , 1473 and 1474 ), as added to the Code by the Hiring Incentives...
    • 29 Nov 2011

    Understanding North Carolina's Sourcing Principles (Excluding Telecommunications Sales)

    By Martin Silver, J.D., LL.M. (Tax, NYU) -- Law Offices of Martin Silver, P.S., and Adjunct Professor, Tax, Golden Gate University, Seattle martindale.com® General Editor, Jasper L. Cummings, Jr. -- Alston & Bird LLP martindale.com® INSIGHT The determination of the taxing jurisdiction where a retail sale occurs for the purpose of imposing the sales and use tax, and for determining whether a retailer...
    • 27 Oct 2011

    Final Regulations Clarify FBAR Reporting Requirements

    [ Editor's Note: This narrative is derived from Taxation of Financial Institutions § 26.04 (Matthew Bender).] Under the Bank Secrecy Act, financial institutions must report and maintain records for transactions in cash or currency that exceed $10,000. [31 USC § 5313.] The Bank Secrecy Act is administered by the Financial Crimes Enforcement Network (FinCEN), which is an agency within the Department of...
    • 14 Oct 2011

    Water's-Edge Election: Look Before You Leap and Calculate Before You Elect

    By J. Pat Powers - Baker & McKenzie LLP (martindale.com ®) General Editor - Charles J. Moll III - winston & Strawn LLP ,,, INSIGHT Taxpayers considering making a water's-edge election should review all current and planned transactions between (i) on the one hand, companies that will be outside the water's-edge group following the election and, (ii) on the other hand, companies that will...
    • 7 Oct 2011

    Understanding the Application of California Sales Tax - A California Tax Practice Insights Commentary

    By Robert Steiger - Tax Counsel, Chevron Corporation* General Editor, Charles J. Moll III - Winston & Strawn LLP * The author, Robert Steiger, is writing in his capacity as a private attorney, and not as an employee of Chevron Corporation. Accordingly, nothing contained in this Practice Insight should be construed as the official or unofficial position of Chevron Corporation or any of its affiliates. ......
    • 30 Sep 2011

    Courts Split on Limitations Period for Substantial Omissions of Income by Partnerships

    [Editor's Note: This narrative is derived from Tax Planning for Partners, Partnerships, and LLCs, § 15.01[17][b]] [Editor's Note 2: On September 27, 2011, the Supreme Court granted certiorari in Home Concrete & Supply LLC v. United States, a 4th Circuit Court of Appeals decision that is cited in this narrative.] ... There is a split among the Circuit Courts of Appeals and the Tax Court regarding...
    • 27 Sep 2011

    MBT Contains Special Provisions for Taxation of Financial Institutions

    By Patrick R. Van Tiflin, -- Honigman Miller Schwartz and Cohn LLP General Editor, Patrick R. Van Tiflin, -- Honigman Miller Schwartz and Cohn LLP Legislation enacted in 2011 provides that, effective for tax years beginning on or after January 1, 2012, the Michigan Business Tax is repealed (except with respect to certain qualifying credit recipients), and is replaced by a straightforward corporate income tax. Although...
    • 6 Jul 2011

    New Reporting Requirements for U.S. Owners and Grantors of Foreign Trusts

    By Diane L. Mutolo, J.D., LL.M. * The Hiring Incentives to Restore Employment Act ("the HIRE Act"), signed into law by President Obama on March 18, 2010, amended and added provisions of the Internal Revenue Code with the aim of increasing foreign account tax compliance. The provisions of the Foreign Account Tax Compliance Act (FATCA), enacted as part of the HIRE Act, added Sections 6038D, 1471, 1472, 1473...
    • 30 Jun 2011

    Payments to Foreign Financial Institutions Under FATCA: Reporting and Withholding Requirements

    Editor's Note : The following is an excerpt from 1-17 Tax Controversies: Audits, Investigations, Trials §17.04 (Matthew Bender) ... The Foreign Account Tax Compliance Act, or FATCA, enacted in March 2010 and codified at IRC §§ 1471-74, is designed to prevent United States taxpayers from avoiding United States income tax requirements by investing in the United States through foreign bank accounts...
    • 8 Jun 2011

    "All or Nothing" Approach to Attributing Sales: A California Tax Practice Insights Commentary

    INSIGHT For tax years beginning prior to 2011, California took an "all or nothing" approach to sourcing sales, other than sales of tangible personal property (i.e., sales of intangible personal property and sales from performance of personal services), where "income-producing activity" was in more than one state. If the income-producting activity was exclusively in California, sales, other than...
    • 7 Jun 2011

    IRC Conformity: A California Tax Practice Insights Commentary

    By Robert Steiger - Tax Counsel, Chevron Corporation The author, Robert Steiger, is writing in his capacity as a private attorney, and not as an employee of Chevron Corporation. Accordingly, nothing contained in this Practice Insight should be construed as the official or unofficial position of Chevron Corporation or any of its affiliates. ... INSIGHT Most states in modeling their state income tax laws conform...
    • 31 May 2011

    Portability of Unused Estate and Gift Tax Exemption Between Spouses

    Editor's Note : The following is an excerpt from 2-38 Trust Administration and Taxation § 38.00[4A] (Matthew Bender) ... The Tax Relief, Unemployment Insurance Reauthorization and Job Creation Act (the "2010 Act") enacted a "portability" feature; it lets a surviving spouse take advantage of any unused estate tax exemption of a predeceased spouse. (2010 Act §303.) That opportunity...
    • 23 May 2011

    Consequences of S Corporation Reorganization

    In a 2010 published letter ruling, [1] two shareholders owned all of the stock of a C corporation. The plan was for the original corporation to form a new subsidiary. An agreement was reached to transfer some of the original corporation's assets to the new subsidiary in a tax-free exchange along with some cash [2] to make the transaction fair to both shareholders. Then one of the shareholders of the original corporation...
    • 29 Apr 2011

    Voluntary Disclosures Save You From Criminal Tax Prosecution

    Editor's Note : The following is an excerpt from Tax Controversies: Audits, Investigations, Trials (Matthew Bender) ... The Service's current pronouncements of its voluntary disclosure policy make no distinction between tax offenses. In practice, however, the Service has always drawn a sharp distinction between the felonies of tax evasion and filing a false return, on the one hand, and the misdemeanor of...
    • 17 Mar 2011

    Tax Planning for Retirees, authored by Vorris J. Blankenship - Net Investment Income and Tax Relief: FREE DOWNLOAD

    Note: Chapter 17 of Tax Planning for Retirees is to be shipped this June Relief from the Tax on Net Investment Income (§ 17.07) [1] Taxable Amount Limited by a Threshold To help fund Medicare and other government healthcare subsidies, Congress has imposed a 3.8 percent tax on net investment income for years after 2012 (but provided some significant relief for retirees).1 The investment tax applies to...
    • 28 Feb 2011

    Fraud Prevention Update

    [ Editor's Note: The following is an excerpt from Financial Management and Accounting for the Construction Industry (Matthew Bender) by David L. Sauerman, Managing Director; Architecture, Engineering and Construction Division; The PrivateBank; Chicago, IL. ] In the 1990s, organized crime was able to steal millions of dollars through extremely organized check fraud rings. The new digital scanning technology allowed...
    • 4 Nov 2010

    Small Business Jobs Act of 2010

    By Mitchell R. Kops , Sanford J. Davis , and William J. Kambas President Obama recently signed into law the Small Business Jobs Act of 2010 (the "Act"). After stalling in Congress earlier this year, the Act progressed rapidly in the month of September as the Senate and House approved it on September 16 and 23, respectively. It was signed into law on September 27, 2010. The Act seeks to stimulate entrepreneurial...
    • 29 Sep 2010

    The Changing Landscape of the Foreign Tax Credit Regime

    Introduction The tax landscape is changing for the amount U.S. multinational corporations may claim through the foreign tax credit. This change is the result of the Statutory Pay-As-You-Go Act of 2010 that requires any increased spending must be offset by a corresponding increase in revenue. [1] The foreign tax credit modifications narrowly escaped becoming the offsetting revenue raising provisions of the Unemployment...
    • 31 Aug 2010

    Tax Center Pulls Tax Legislation Into One Source

    the jobs and the health care bills were finally enacted after months of congressional wrangling. Each bill introduced numerous changes to the Internal Revenue Code. We all know this legislation went through bruising battles in Congress with numerous versions emerging almost daily. The result? Keeping pace with the final enactments -- and the effects of the changes- has never been more challenging for tax practitioners...
    • 26 Aug 2010

    LexisNexis Tax Advisor - Federal Topical: Bona Fide Estate Tax Deduction Regulations

    Treasury Regulations issued in October 2009 limit estate tax deductions to "bona fide" claims and expenses only. Deductions are therefore not valid if they are "essentially donative in character." There are several objective markers defining what validly constitutes a "bona fide" claim. Moreover, the claim amount allowed is also limited to the total sum actually paid. This means that the...
    • 18 Aug 2010

    Partnership and LLC Agreement Tax Provisions Clarified

    Drafting Partnership and LLC Agreements: Tax Boilerplate, Allocation, and Liquidation Provisions - by Ivan Mitev and Matt Kaden - Boies, Schiller & Flexner, LLP Crafting agreement language requires attention to partnership and LLC objectives and also to tax hazards and opportunities. Finally, practitioners will have a concise, straightforward, and reliable treatise to consult as they plan and create partnership...
    • 15 Jul 2010

    IR-2010-13 and IR-2010-9: A New Approach to Uncertain Tax Position Reporting Requirements

    IRS Commissioner Doug Shulman's prepared remarks on January 26th to the New York State Bar Association Taxation Section Annual Meeting proposed new parameters to improve tax reporting transparency. IR-2010-13 . See also IR-2010-9 . Explaining the proposal and its anticipated effects, Mr. Shulman said: "Reporting uncertain tax positions would be required at the time a return is filed by certain business...
    • 8 Jul 2010

    New IRS Publication 334 Provides Tax Guidance for Small Businesses

    IRS Publication 334, Tax Guide for Small Business ( for Individuals Who Use Schedule C or C-EZ ) provides guidance to sole proprietors and to statutory employees. For 2009 tax returns, small business owners are alerted to an increase in maximum net self-employment earnings. There is also an increase in an optional net earnings computation method and in the maximum section 179 deduction dollar limit calculation. The standard...
    • 20 Jan 2010

    Worker, Homeownership, and Business Assistance Act of 2009 (Pub Law No 111-92)

    This article discusses the tax provisions of the Worker, Homeownership, and Business Assistance Act of 2009 (Pub Law No 111-92), which was signed by President Barrack H. Obama on November 6, 2009. Although a key focal point of the legislation was extending emergency unemployment benefits, several tax provisions were amended as well. The extension in unemployment benefits is funded by an 18-month extension of the 0.2 percent...