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1. Year-end tax planning: Preparing for the tax cliff   CPEDirect

BY Steven F. Holub, CPA
Rarely has there been such a major difference between the laws in effect in one year and the next. The maximum income tax rates next year could be as high as 43.4% on ordinary income (44.6% if the potential impact of reinstated limitations on itemized deductions is taken into account) and 23.8% on long-term capital gains (or 25% if itemized deduction limitations are factored in).

2. Year-end tax planning: Preparing for the tax cliff   CPEDirect

BY Steven F. Holub, CPA
Rarely has there been such a major difference between the laws in effect in one year and the next. The maximum income tax rates next year could be as high as 43.4% on ordinary income (44.6% if the potential impact of reinstated limitations on itemized deductions is taken into account) and 23.8% on long-term capital gains (or 25% if itemized deduction limitations are factored in).

3. Year-end tax planning: Preparing for the tax cliff   CPEDirect

BY Steven F. Holub, CPA
Rarely has there been such a major difference between the laws in effect in one year and the next. The maximum income tax rates next year could be as high as 43.4% on ordinary income (44.6% if the potential impact of reinstated limitations on itemized deductions is taken into account) and 23.8% on long-term capital gains (or 25% if itemized deduction limitations are factored in).

4. No extended assessment period for innocent S shareholder   CPEDirect

BY Janet A. Meade, CPA, Ph.D.
The Office of Chief Counsel (OCC) advised in Chief Counsel Advice (CCA) 201238026 that the assessment period is not extended for the personal tax liability of a shareholder who did not take part in the fraud reflected on his S corporation’s Form 1120S, U.S. Income Tax Return for an S Corporation.

5. No extended assessment period for innocent S shareholder   CPEDirect

BY Janet A. Meade, CPA, Ph.D.
The Office of Chief Counsel (OCC) advised in Chief Counsel Advice (CCA) 201238026 that the assessment period is not extended for the personal tax liability of a shareholder who did not take part in the fraud reflected on his S corporation’s Form 1120S, U.S. Income Tax Return for an S Corporation.

6. No extended assessment period for innocent S shareholder   CPEDirect

BY Janet A. Meade, CPA, Ph.D.
The Office of Chief Counsel (OCC) advised in Chief Counsel Advice (CCA) 201238026 that the assessment period is not extended for the personal tax liability of a shareholder who did not take part in the fraud reflected on his S corporation’s Form 1120S, U.S. Income Tax Return for an S Corporation.

7. Online travel companies not liable for occupancy taxes  

BY Karen M. Cooley, CPA, MBA and Darlene Pulliam, CPA, Ph.D.
The Sixth Circuit affirmed a district court’s judgment in favor of defendant online travel companies (OTCs) for alleged violations of local tax laws. The district court had held that the OTCs were not liable for collecting occupancy taxes. It is common practice for OTCs such as Priceline.com, Expedia, and Travelocity (which were among the lawsuit’s defendants) to provide discounted hotel room rates to customers by contracting with hotels for rooms at “wholesale” rates and then booking rooms for customers on their websites at a marked-up “retail” rate that is above the wholesale rate but below the market

8. Online travel companies not liable for occupancy taxes  

BY Karen M. Cooley, CPA, MBA and Darlene Pulliam, CPA, Ph.D.
The Sixth Circuit affirmed a district court’s judgment in favor of defendant online travel companies (OTCs) for alleged violations of local tax laws. The district court had held that the OTCs were not liable for collecting occupancy taxes. It is common practice for OTCs such as Priceline.com, Expedia, and Travelocity (which were among the lawsuit’s defendants) to provide discounted hotel room rates to customers by contracting with hotels for rooms at “wholesale” rates and then booking rooms for customers on their websites at a marked-up “retail” rate that is above the wholesale rate but below the market

9. Online travel companies not liable for occupancy taxes  

BY Karen M. Cooley, CPA, MBA and Darlene Pulliam, CPA, Ph.D.
The Sixth Circuit affirmed a district court’s judgment in favor of defendant online travel companies (OTCs) for alleged violations of local tax laws. The district court had held that the OTCs were not liable for collecting occupancy taxes. It is common practice for OTCs such as Priceline.com, Expedia, and Travelocity (which were among the lawsuit’s defendants) to provide discounted hotel room rates to customers by contracting with hotels for rooms at “wholesale” rates and then booking rooms for customers on their websites at a marked-up “retail” rate that is above the wholesale rate but below the market

10. Facing the tax cliff  

BY Alistair M. Nevius, J.D.
You can’t pick up a newspaper or go online this fall without seeing stories about the coming “tax cliff” or “taxmageddon”—the time at the end of this year when the current tax rates for income, capital gains, gifts, and estates are scheduled to expire. Mostly overlooked by the news media are a large number of other tax provisions that are also scheduled to expire or have already expired.
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