The IRS has posted a series of questions and answers (FAQs) about the new requirement for large corporations to report their uncertain tax positions. The seven FAQs address both reporting requirements for Schedule UTP, Uncertain Tax Position Statement, and the IRS’ policy of restraint. For the 2010 tax year, corporations
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TOPICS / TAX
Business tax
Pass-Throughs Dominate Tax Reform Conversation
While lawmakers and the Obama administration both support simplifying an Internal Revenue Code described by one witness as “grotesque in its complexity,” lines in the sand are quickly being drawn on how it should be done. These lines were evident in a March 3 House Ways and Means Select Revenues
House Passes 1099 Repeal
On Thursday, the House of Representatives passed the Small Business Paperwork Mandate Elimination Act of 2011 (HR 4) by a 314–112 vote. The bill would repeal the expanded Form 1099 information reporting requirements mandated by last year’s health care legislation. It would also repeal the new 1099 reporting requirements imposed
Coalition, AICPA Fight Government Contractor Withholding Law
The AICPA has added its voice to those calling on Congress to repeal a law that would require federal, state and local governments to withhold 3% on payments made to government contractors, and on Medicare, farm, and certain other payments. The potential impact of the withholding requirement is evident in
2011 Automobile Depreciation Limits Released
The IRS on Tuesday issued the 2011 inflation adjustments to the depreciation limitations and lease inclusion amounts for certain automobiles under IRC § 280F (Revenue Procedure 2011-21). This year, the IRS has provided the limitation amounts for vehicles placed in service in 2011 for which bonus depreciation under IRC §
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DEFYING COURTS, IRS FINALIZES BASIS OVERSTATEMENT RULES The IRS released final regulations defining an omission from gross income for purposes of the extended six-year limitations period for assessment of tax (TD 9511). The regulations finalize without change temporary regulations (TD 9466) that the Tax Court held to be invalid last
Motor Fuel Tax Refund for Off-Road Use
Many taxpayers may be overlooking the refund or credit available under IRC § 6421 for federal excise taxes paid for motor fuels and similar state provisions. The taxes are on fuels used to power vehicles and equipment on roads and highways. Taxes paid for fuel to power vehicles and equipment
Act 2 for Business Tax Incentives
Enacted in the waning days of the 111th Congress, the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 (2010 Tax Relief Act, PL 111-312) was a creature of political compromise. But the act nonetheless built upon already attractive incentives that had been passed only a few months
IRS Announces Changes to Lien Process
The IRS has announced a set of new policies designed to help taxpayers pay their back taxes and avoid liens (IR-2011-20). The changes to the IRS’ lien filing practices include: Increasing the dollar threshold above which liens are generally filed. Making lien withdrawals easier after the taxes have been paid.
IRS Provides Transitional Relief for Some Stock Basis Reporting Requirements
On Tuesday, the IRS provided transitional relief from the information reporting requirements that apply to issuers of stock regarding organizational actions that affect stock basis (Notice 2011-18). IRC § 6045B, enacted by the Energy Improvement and Extension Act of 2008, PL 110-343, instituted a number of new information reporting requirements
House Committee Sends 1099 Repeal to the Floor; Senate Passes Its Own Version of Repeal
The House Ways and Means Committee approved a bill Thursday that would repeal the expanded Form 1099 reporting requirements, voting 21–15 to send the measure to the full House of Representatives. Late on Thursday, the Senate passed the FAA Air Transportation Modernization and Safety Improvement Act (S 223) by a
IRS Starts Accepting Delayed Returns
The IRS on Tuesday announced that it has started accepting returns that it could not accept before because it was updating forms and reprogramming its systems (IR-2011-16). In December, the IRS informed taxpayers that because of the Dec. 17 enactment date of the Tax Relief, Unemployment Insurance Reauthorization, and Job
President Proposes 3-Year AMT Patch, Partial Relief on 1099s, Crackdown on Misclassification
President Barack Obama released his proposed budget for fiscal 2012 that would make several tax credits permanent, including the research and experimentation credit, and provide three more years of AMT relief, but would repeal or limit several other tax breaks. The budget would also set aside $240 million for initiatives
IRS Revises Withholding Rules for Nonresident Alien Employees
On Wednesday, the IRS announced the 2011 procedures for withholding on wages of nonresident alien employees who work in the United States (Notice 2011-12). The new procedures apply to wages paid on or after Jan. 1, 2011. In 2010, special withholding procedures were instituted for nonresident aliens because they were
Partnership Interests Aren’t Simple Gifts for Charities
Partnership interests (including interests in limited liability entities treated as a partnership) represent a potentially valuable gift to charities and private foundations, but with greater potential complications than gifts of stock. CPAs can alert principals to the following issues. —By Dennis Walsh, CPA, (nonprofitcpa365@gmail.com) a Jamestown, N.C.-based consultant to
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NEW FORM 1099 REQUIREMENT FOR RENTAL INCOME Taxpayers receiving income from renting real estate should be aware of their new information-reporting responsibilities under IRC § 6041(h)(1), as amended by the Small Business Jobs Act of 2010 (PL 111-240). The law requires them to report payments they make totaling $600 or
Multistate Tax Considerations for S Corporations
Many S corporations do business in multiple states and must file income or other tax returns in them. Many states have been more aggressive in going after out-of-state companies doing business in their states. Many of these businesses do not realize they have an exposure to a state’s taxes until
Some Forbearance Payments Deductible, Some Not
The Tax Court held that a corporation could deduct forbearance payments made to its shareholders in return for their promise not to exercise their stock redemption rights under the first two of several agreements. However, the court also held that payments under a subsequent agreement had to be capitalized, since
Save Time and Trouble With General Asset Accounts
Small and medium-size entrepreneurial businesses are sometimes blessed with a good idea but many similar or identical capital assets and not much time or accounting prowess to keep track of them all individually. Larger businesses may seek more efficient tax treatment for standard capital assets, such as laptop computers issued
New 1099 Rules: President’s Speech Offers Hope for Some Relief; Exceptions for Rental Income Reporting Remain Vague
For small businesses that were dreading the thought of having to produce a Form 1099 for every payee to which they paid at least $600, President Barack Obama offered the prospect of relief in his State of the Union speech Jan. 25 when he said, “We can start right now
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From The Tax Adviser
July 31, 2026
Current developments in S corporations
July 31, 2026
