How Do You Spell Relief?
According to revenue procedure 97-48, newly created corporations that intend to adopt S corporation status automatically are eligible for relief for certain untimely S elections. Those corporations can avoid penalties if they had reported income as though S status existed and had received no Internal Revenue Service notice regarding problems with S status within six months of the first timely filed Form 1120S, U.S. Income Tax Return for an S Corporation .
Richardson Goes Public
Former IRS Commissioner Margaret Milner Richardson has joined Ernst & Young. She will advise the accounting firms largest clients on domestic and global tax issues. Richardson served as IRS commissioner from 1993 to 1997. She was the second woman to head the agency.
Looking Closer at Pricing
Revenue Canadathe agency responsible for Canadian tax, trade and border administrationis changing the focus of its transfer pricing audits. According to Al Rizzuto, Revenue Canadas acting international tax adviser for the Quebec region, the agency will look at the prices paid for goods and intangibles more closely than it has in the past rather than focus on intercompany service charges such as management fees in transfer pricing audits.
IRS Year 2000 Compliance
According to notice 97-61, the IRS is undertaking a large-scale effort to make all current and future IRS information systems Year 2000-compliant. The Year 2000 conversion project creates a standard for year and date representation for all data exchanges with external trading partners. The IRS will use revenue procedures to inform all external trading partners of the new date requirements.
Lets Talk World Tax
The Organization for Economic Cooperation and Development (OECD) intends to draft a series of uniform taxation guidelines for electronic commerce by October 1998. To aid in the drafting process, the OECD will open an Internet discussion group forum on uniform guidelines. The OECD Web site is http://www.oecd.org .