The Second Circuit Court of Appeals ruled against a military veteran’s income-exclusion claim, affirming the Tax Court’s distinction of taxable disability benefits versus exempt benefits paid for a service-connected injury. William D. Reimels was exposed to Agent Orange during service in Vietnam in the 1970s. He then worked in the
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Tax
IRS, B&D Tool Up for Trial
By reversing a district court’s grant of summary judgment that originally favored the taxpayer (see “Tax Matters,” JofA, March 05, page 88), the Fourth Circuit Court of Appeals opened the door for further interpretation of the “sham transaction” rule as it relates to contingent liability transactions. The case, involving Black
Horse Sense Applied to Startup
In its first ruling of 2007, the Tax Court concluded that a woman could deduct expenses of for-profit horse boarding and training that later grew into a business. Had the IRS prevailed, taxpayers who engaged in a for-profit activity with the hope it would grow into a full-fledged trade or
IRS Directors “Own” Shelters
With the new Industry Issue Focus initiative of its Large and Mid-Size Business Division, the IRS is poised to concentrate more resources on its top enforcement priorities, which are weighted toward business and industry. The new strategy gives IRS directors compliance “ownership” of each of 14 Tier 1 issues, plus
Whistleblowers Wanted
The government has decided that whistleblowers are its friends, and it is increasingly making efforts to nourish and protect them. This is evidenced by a provision of the Tax Relief and Health Care Act of 2006 that increased potential rewards to people who provide information on individuals
Collect Call
Corporations that have their 2006 tax returns on extension (involving calendar-year taxpayers with returns otherwise due on March 15) and which plan to claim the telephone excise tax refund must use a different set of interest rates than those found on form 8913, the IRS reminded.
Taking Stock of ESPPs
EXECUTIVE SUMMARY Employees of corporations with an employee stock purchase plan (ESPP) often fail to participate fully in the plan because they don’t understand why it can be a good deal. Many plans offer a purchase discount of as much as 15%. Effectively, the discount can
Back to School
Back to School A rising number of professionals are returning to college for a master’s or other graduate degree to enhance their earning power. An advanced degree can bring, on average, a $16,000 bump in annual salary. Source: www.worldwidelearn.com . GOLDEN BUSINESS IDEA
Value Gifts on the Date Given
The Fifth Circuit reaffirmed that under IRC section 2512, a gift’s value is determined on the date it is given. The court also decided that a discount used to determine the present value of a previously transferred interest was allowable if it was the amount a willing buyer would require
Energy-Efficient Commerical Buildings Deduction
The Energy Policy Tax Act of 2005 included incentives for taxpayers that make new or existing commercial property more energy efficient. Under new IRC section 179D, taxpayers that own or lease commercial buildings and install certain energy-efficient improvements therein after 2005 and before 2008 are eligible for
Small Business Shuns Outside Financing
Small Business Shuns Outside Financing E ighty-one percent of small business owners said they have never received outside equity or debt financing, according to a survey by SurePayroll. More than half (55%) of respondents said they had no need and no future plans for external funding. For those businesses that
Hot Jobs
Hot Jobs L ooking for a new career path? Narrow your search to the fastest-growing accounting jobs. According to the Robert Half International 2007 Salary Guide, the following are the top five high-growth positions for the year: Source: Robert Half Finance & Accounting, www.roberthalf.com . NEWS
Report Sheds Light on IPO Market
Report Sheds Light on IPO Market U .S. markets are holding their own against foreign competition for initial public offerings (IPOs), says a report by Ernst & Young. Key among E&Y’s findings is the fact that most companies list on exchanges close to home. Even at the height of the
IRS Scores Victory Over Alleged Tax Shelter
The Second Circuit Court of Appeals overturned the TIFD III-E Inc./Castle Harbour decision (see “Tax Matters,” JofA , June 05, page 93), a win for the IRS in its battle against tax shelters. The court ruled that the mere existence of a business purpose of a partnership does not preclude
How Low Can They Go
How Low Can They Go? S ecurities fraud class action lawsuits fell to a record low in 2006, says a report by Stanford Law School’s Securities Class Action Clearinghouse. The number of cases filed was the lowest since the adoption of the Public Securities Litigation Reform Act of 1995. Securities
Showing the Way
Showing the Way A small firm can’t operate efficiently if workers are constantly asking similar questions, circumventing problems or forwarding inquiries to the higher-ups. Make sure your employees have enough knowledge to make decisions and solve problems on their own: Source: Score, www.score.org . TOP 10
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FROM THIS MONTH'S ISSUE
Create interactive dashboards with Excel PivotCharts and slicers
Leave the static spreadsheets behind. This JofA Technology Q&A article with video walkthrough provides a step-by-step guide for creating interactive dashboards in Excel that decision-makers can use.
From The Tax Adviser
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Trust distributions in kind and the Sec. 643(e)(3) election
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Effects of the OBBBA on higher education
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