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Summary : While TARP's requirements are technically limited to the most highly paid employees in the companies receiving TARP funds, they promise to have far-reaching implications for executive compensation best practices. This Emerging Issues Analysis...

The poor economy has created a budgetary crisis for many state governments. One solution is to expand a state's taxes to include companies earning income or with benefits that are seen occurring in the state. There are controversies on "attributional...

SUMMARY: In sustaining the constitutionality of Ohio's Commercial Activity Tax (CAT) as applied to the gross receipts from the sale of food for human consumption, the Ohio Supreme Court has reaffirmed the principle that a tax measured by a factor is...

Under the Michigan Business Tax Act, every taxpayer with business activity in the state is subject to the business income tax. The business income tax base, which is a taxpayer's "business income" as defined in MCL 208.1105(2) , is that part of...

Summary : In 2008, New York enacted the Amazon Tax Law, requiring certain e-tailers to collect and remit tax on sales to NY residents. The law has created controversy as to whether the relationship between the e-tailers and the in-state businesses creates...

SUMMARY : There are a number of reporting obligations that must be complied with to avoid criminal and civil penalties in connection with foreign bank accounts. This year, the IRS, Department of Justice, President Obama and Congress have prioritized...

Inheritance tax imposes a tax on the right of succession, while estate tax is a tax against property. The former is enforceable against the individual transferees or those with dominion and control over the property, while the latter is due by way of estate...

The United States Court of Appeals for the First Circuit, sitting en banc , has ruled that tax accrual work papers, prepared by a publicly-traded corporation to produce financial statements which are certified by an independent auditor pursuant to federal...

IRC Section 1202(a)(3) was added by the American Recovery and Reinvestment Act of 2009 (“the Act”). It encourages individuals to make investments in corporations by allowing them to temporarily exclude a greater amount of the gain on the...

Oftentimes, a partnership is converted to an S corporation. It is important to remember that S status is elected to avoid problems that come with having the corporation taxed as a C corporation. Therefore, it is important to avoid having an intervening...

An election to be treated as an S corporation is made by preparing, signing and filing Form 2553. Controversy often arises regarding whether Form 2553 was prepared properly and timely filed.   Professor Howard Godfrey writes : Business owners...

Many multi-state corporations operate in states that do not require combined reporting and that employ one or more tax-avoidance strategies to reduce their overall tax liability, causing significant declines in corporate tax revenues for the states. Mandatory...

This article examines what is potentially one of the biggest malpractice exposure issues waiting to explode: negligent omissions of available tax credits by tax practitioners for their clients. In the next few sections, Dr. Swenson discusses the setting...

Late yesterday, in an apparent response to growing pressure from advisors and investors, the IRS, in effect, extended the filing deadline for 2008 Foreign Bank and Financial Accounts Report (FBAR) forms from June 30, 2009 to September 23, 2009 for “taxpayers...

This Emerging Issues Analysis discusses how to avoid the pitfalls that can delay an application for tax-exempt status. Receiving a favorable determination letter from the IRS in response to an application for tax-exempt status means that one can solicit...

In this Emerging Issues Analysis, four partners from the law firm of Jones Day offer their perspective on new section 108(i) of the Internal Revenue Code. The new provision creates a mechanism that will allow many borrowers to substantially reduce...

The downturn started with residential real estate and still continues. In fact, by many measures 2008 was one of the worst years in decades for the housing and homebuilding industry. Worse yet, 2009 appears to be more challenging. More so because the downturn...

The Internal Revenue Service issued Revenue Procedure 2009-26 (Rev. Proc.) on April 24, 2009. Rev. Proc. 2009-26 provides guidance to small businesses regarding the application of certain net operating loss carryback provisions in the American Recovery...

Beginning on January 1, 2009, qualified employers may take advantage of a new tax credit in the amount of $3,000 for each increase in a qualified full-time employee hired during the taxable year as determined on an annual full-time equivalent basis. Any...

Charles “Chuck” Swenson, CPA, PhD, is Professor of Accountancy at the University of Southern California . He has authored a number of books, and is General Editor of Bender's State Taxation: Principles and Practice ...