The IRS released new Form W-11 on Wednesday for certifying that employees are qualified employees for purposes of tax benefits under the Hiring Incentives to Restore Employment (HIRE) Act (PL 111-147). The HIRE Act, enacted on March 18, created a payroll tax credit for employers who hire workers who have
Advertisement
TOPICS / TAX
Business tax
Tax Filing Season Resources—Tax Year 2009
This is the one-stop shop for all the updates you need to know for this year’s tax filing season. Find resources from the JofA and The Tax Adviser, plus tax return checklists and tax savings tips from the AICPA, categorized by tax topic. INDIVIDUAL TAX IRS Reports Average Refund Size Is
IRS Publishes FAQs on Health Care Small Business Credit
On Thursday, the IRS published to its Web site 22 questions and answers about the new health care small business credit. The FAQs cover: Eligibility for the credit; Calculation of the credit; Determining full-time employees and wages for purposes of the credit; How to claim the credit; and Transition
Health Care Reform Reshapes Tax Code
In March, Congress passed two pieces of legislation designed to reform the U.S. health care system. The Patient Protection and Affordable Care Act (PL 111-148) was enacted on March 23, and was quickly followed by the Health Care and Education Reconciliation Act of 2010 (PL 111-152), which amended several portions
Acquiring Basis in S Corp Shareholder Loans
Practitioners routinely face the challenge of helping S corporation shareholders increase their basis for purposes of deducting pass-through losses under IRC § 1366(d)(1). Often, planning to increase basis will result in shareholders making loans to the S corporation at year-end. In situations involving shareholder loans to S corporations facilitated by
IRS Proposes Disclosure of Uncertain Tax Positions
The IRS said on Jan. 26 (Announcement 2010-9) that it may require businesses to disclose with their tax returns any uncertain tax positions for which they must establish a reserve, as well as those for which they have not established a reserve because they expect to litigate the position or
Tax Provisions in the Health Care Act
The Patient Protection and Affordable Care Act (H.R. 3590), passed by Congress on Sunday, contains numerous tax provisions. The Reconciliation Act of 2010 (H.R. 4872), which also passed the House on Sunday, contains many other tax items, including extending the general exclusion for reimbursements for medical care expenses under an
President Signs Hiring Incentives Act With Tax Provisions
President Barack Obama on Thursday signed the Hiring Incentives to Restore Employment Act (HR 2847). The bill passed the House on March 4 and the Senate on Wednesday. The bill contains several tax items, the biggest of which is a payroll tax credit for employers who hire workers who have
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).
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
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
Navigating the R&D Tax Credit
Although it has a well-deserved reputation for complexity and uncertainty for taxpayers, the research tax credit of IRC § 41 nonetheless remains a valuable source of support to businesses that conduct qualified research and development. In fiscal year 2009 alone, the credit represented an estimated $5.6 billion federal subsidy for
Line Items
SECURITIES BASIS REPORTING PROP. REGS ISSUED The IRS issued proposed regulations (REG-101896-09) in December relating to how securities brokers report sales to the IRS and how stock basis is determined. The regulations also proposed a Feb. 15 annual deadline for brokers to supply certain information statements. The proposed rules reflect
Acquisition Intermediary’s Role Ignored
The Fifth Circuit Court of Appeals upheld a decision of the U.S. District Court for the Southern District of Texas that recharacterized a corporation’s acquisition of assets as an acquisition of stock with a subsequent liquidation of the acquired corporation. The appellate court agreed with the IRS and the district
Method of Calculating Buy-In Payment Approved
The Tax Court approved a software company’s method of valuing a buy-in payment for the transfer of intangible assets to a subsidiary, calling the IRS’ redetermination of the buy-in payment amount “arbitrary, capricious and unreasonable.” The case concerned tax years 1999 through 2001 of VERITAS Software Corp. (VERITAS U.S.), which
IRS Issues Regulations on 2009 Reduced Estimated Tax Options
The IRS on Friday released temporary and proposed regulations relating to reduced estimated income tax payments for qualified individuals with small business income in 2009 (TD 9480 and REG-117501-09). The regulations provide guidance on who is a qualified individual and what is a small business for these purposes. The American
Tax Court Rules on Valuation of Life Insurance Policy in Bargain Sale
In a case of first impression, the Tax Court has held that where taxpayers purchased a life insurance policy on their lives from their profit-sharing plan, they could not reduce the taxable value of the policy by the amount of the policy’s surrender charge (Matthies, 134 T.C. no. 6). The
IRS Initiatives Could Change Compliance Landscape in 2010
During the latter part of 2009, the IRS announced a number of new compliance initiatives that, when fully implemented, have the potential to dramatically alter how the IRS deals with certain groups of taxpayers. The programs are important not only in how they will directly affect the targeted taxpayer groups
Tax Court Allows LLC Member’s Losses; Rules Against IRS on Limited Partner Issue
The Tax Court held on Tuesday that an LLC member who materially participated in the management of an LLC is not treated as a limited partner and is therefore not subject to the passive loss limitations under IRC § 469 (Newell, TC Memo 2010-23). The taxpayer owned one-third of a
Solar Energy Systems: Incentives Are Better Than Ever
The 30% federal tax credit available to homeowners and businesses to install solar energy systems was recently expanded and extended. A dollar-amount cap was removed from the credit for residential solar water heating systems, and the availability of the credit for all systems was extended through the end of 2016.
Features
SPONSORED REPORT
How to find the right CAS clients
The key to success with CAS is selecting the best clients. Tools like ideal client profiles (ICPs), buyer personas, and even artificial intelligence can help identify the businesses that best fit each CAS practice.
From The Tax Adviser
March 6, 2026
Navigating the Form 1099-DA reporting maze
February 28, 2026
CPA firm M&A tax issues
February 18, 2026
Why LIFO, why now?
February 10, 2026
