March 2010

March 8, 2010

IRS Provides Guidance on Deemed Dispositions by Canadian Emigrants

The IRS has issued guidance for individuals who emigrate from Canada and wish to make an election under the U.S.-Canada income tax treaty regarding Canadian departure tax (Revenue Procedure 2010-19). Under Article XIII(7) of the U.S.-Canada treaty, if an individual is treated for purposes of taxation by one of the

March 8, 2010

Guidance Intended to Help Institutions Fight Money Laundering, Terrorist Financing

The Financial Crimes Enforcement Network (FinCEN) and several other financial institution regulators issued guidance to clarify and consolidate existing regulatory expectations for obtaining beneficial ownership information for certain accounts and customer relationships—information that the agencies said can help financial institutions better understand and address money laundering and terrorist financing risks,

March 7, 2010

IRS Extends Comment Period for Uncertain Tax Positions Reporting Proposal; New Schedule Planned for Tax Year 2010

The IRS followed up Friday on its January announcement about plans to require certain business taxpayers to report uncertain tax positions on their returns. It extended an ongoing comment period on the plan and announced that it will start requiring the reporting for tax years beginning in 2010 (Announcement 2010-17).

March 5, 2010

Safe Harbor for Failed Like-Kind Exchanges Where Qualified Intermediary Goes Bankrupt

The IRS has provided a safe harbor for taxpayers who start a like-kind exchange but fail to complete the exchange because the qualified intermediary (QI) goes bankrupt and defaults on its obligation to acquire replacement property (Revenue Procedure 2010-14). Taxpayers often use QIs to help them complete a tax-free like-kind

March 3, 2010

President Signs Extension of COBRA 65% Subsidy

President Barack Obama signed into law on Wednesday the Temporary Extension Act of 2010 (HR 4691), hours after the Senate passed it by a 78–19 vote. The main purpose of the bill is to extend unemployment benefits and health care subsidies for the unemployed, but it also extends through March

March 2, 2010

IRS Extends Relief for Some FBAR Filers; Prop. Regs Clarify Certain FBAR Definitions

The IRS on Friday suspended any requirement for persons other than U.S. citizens and domestic entities to file a Form TD F 90-22.1, Report of Foreign Bank and Financial Accounts (FBAR), otherwise due on June 30, 2010. The Service also extended until June 30, 2011, the deadline for filing an

March 2, 2010

IRS Will Process Medical Residents’ FICA Refund Claims for Periods Before April 1, 2005

The IRS has announced that it will accept that medical residents are exempt from FICA taxes under the student exception in IRC § 3121(b)(10) for periods ending before April 1, 2005 (IR-2010-25). The Service said it will start contacting hospitals, universities and medical residents who have filed FICA refund claims

March 1, 2010

The Proper Timing of Workers’ Compensation Deductions

For companies with more than a de minimis amount in their workers’ compensation reserve, it may be worthwhile to review the details underlying the reserve amount. The reason? These days a significant portion of a workers’ compensation reserve likely results from amounts due to medical service providers for treatment already

March 1, 2010

How the R&D Tax Credit Is Calculated

Editor’s note: This is a Web-exclusive sidebar to “Navigating the R&D Tax Credit,” in the March 2010 issue of the JofA. Regular research credit. The RRC is an incremental credit that equals 20% of a taxpayer’s current-year QREs that exceed a base amount, which is determined by applying the

FROM THIS MONTH'S ISSUE

AI risks CPAs should know

Are you ready for the AI revolution in accounting? This JofA Technology Q&A article explores the top risks CPAs face—from hallucinations to deepfakes—and ways to mitigate them.