Tax

he Eighth Circuit Court of Appeals affirmed the Tax Court’s decision that when a cooperative makes “value-added” payments to its members and allows them to defer the cash receipts, such payments do not constitute a deferral for tax purposes. In a case argued before the Eighth Circuit, a cooperative had

TAX CASE he courts have uniformly held that generally accepted accounting principles (GAAP) are not determinative of tax rules. Whether a taxpayer recognized income for financial statement purposes is irrelevant in deciding whether he or she must report the income on a tax return. The Ninth Circuit Court of Appeals

TAX CASE ny cash or noncash remuneration received for employment, unless specifically exempt, is considered wages subject to the FICA tax. FICA wages can include amounts received by the employee after the employment relationship has ended. For example, the courts have held that awards for back pay and future pay

TAX CASE RC section 6511(a) generally requires taxpayers to file a refund claim for a tax overpayment within three years from the time the return was filed or within two years from the time the tax was paid, whichever period expires later. If no return was filed, the two-year period

TAX CASE o payments, either direct or indirect, to a subchapter S corporation always create an increase in the taxpayer’s basis? The Tax Court recently decided that they do not. Sid and Al Ruckriegel were 50% shareholders in Sidal Inc., a subchapter S corporation, set up in Indiana. They were

TAX CASE RC section 1031 permits the tax-free exchange of like-kind property. If the transferor receives “boot” (such as cash) in addition to the like-kind property, the boot is currently taxable. The application of these rules to the exchange of real property that was burdened by a supply contract was