Adam Hales, CPA, and Dennis Tingey, CPA, have published their article, Sec. 1341: What is the claim-of-right doctrine? in the AICPA Tax Adviser. The introduction is as follows:
The law known as the Tax Cuts and Jobs Act (TCJA), P.L. 115-97, enacted Dec. 22, 2017, made numerous changes to the U.S. tax rules affecting businesses and individuals. For corporations, the prior 35% top corporate rate was reduced permanently to 21% for tax years beginning after 2017. The TCJA also provided relief for qualified passthrough business income — specifically, a deduction of up to 20% of the qualified business income from a partnership, S corporation, or sole proprietorship. These tax rate reductions will increase interest in an often-overlooked section of the Code, Sec. 1341, Computation of Tax Where Taxpayer Restores Substantial Amount Held Under Claim of Right, often referred to as the claim-of-right provision.
Posted by Lewis J. Saret, Co-General Editor, Wealth Strategies Journal..