Overview of tax changes in the Heroes Earnings Assistance and Relief Tax Act of 2008 The recently enacted “Heroes Earnings Assistance and Relief Tax Act of 2008” (the 2008 Heroes Act) provides targeted tax relief for military members and their families, fully offset with tightened expatriation rules, a new rule…
Temporary regs curb abuses in triangular reorganizations involving foreign corporations T.D. 9400, 05/23/2008, Reg. § 1.367(a)-3T, Reg. § 1.367(b)-14T, Preamble to Prop Reg 05/23/2008 IRS has issued temporary (along with final and proposed regs) under Code Sec. 367(b) to curb abusive triangular reorganizations involving foreign corporationssometimes referred to as “Killer…
IRS expands advance pricing agreement procedures to include other issues relevant to transfer pricing Rev Proc 2008-31, 2008-23 IRB In a Revenue Procedure, IRS has expanded the procedures under which taxpayers secure an advance pricing agreement (APA) to include additional types of issues that may be resolved in the APA…
House-passed Heroes Act would provide tax relief to military members & their families On May 20, by a vote of 403-0 the House of Representatives unanimously approved H.R. 6081, the “Heroes Earnings Assistance and Relief Tax Act of 2008.” The bill, dubbed the HEART Act by its sponsors, is very…
IRS focusing efforts on four employment tax initiatives American Payroll Association 26th Annual Congress May 13-17 (Austin, TX) John Tuzynski, IRS Chief, Employment Tax Operations, told attendees at APA’s 26th Annual Congress that the IRS is focusing its efforts on the following four key employment tax initiatives: (1) worker classification,…
Levy couldn’t force early distribution of taxpayer’s state retirement account Chief Counsel Advice 200819001 In Chief Counsel Advice (CCA), IRS has concluded that it can’t, after serving a notice of levy on a state retirement fund, exercise the taxpayer’s right to suspend her membership in the fund in order to…
New IRS Commissioner Shulman airs his philosophy to ABA audience: The question of whether IRS will focus on services or enforcement poses a false choice, IRS Commissioner Douglas Shulman, who became the 47th Commissioner of Internal Revenue on March 24, 2008, told an American Bar Association audience on May 9.…
IRS clarifies ruling allowing drug manufacturers to subtract Medicaid rebates from gross receipts Rev Rul 2008-26, 2008-21 IRB In a revenue ruling that clarifies an earlier one issued in 2005 on the same subject, IRS concludes that Medicaid Rebates that a pharmaceutical manufacturer pays to State Medicaid Agencies are adjustments…
Which tax-free and tax-favored fringe benefits are passthrough owners entitled to? Partnerships, LLCs treated as partnerships, and S corporations have distinct tax and nontax advantages. However, entrepreneurs considering these forms of business should be aware that fewer tax-free and tax-favored fringe benefits are available to owner-entrepreneurs of passthroughs than to…
Transfers to LLC were not includable in decedent’s estate Estate of Mirowski, TCMemo 2008-74 The Tax Court has held that assets the decedent transferred to a family limited liability company (LLC) shortly before she died were not includable in her gross estate under Section 2036(a). Facts. The decedent’s husband was…