Herbert N. Beller: S Corporations as Shareholders, LLC Members, and Partners (October 18, 2021)

Herbert N. Beller, of Northwestern University - Pritzker School of Law; Sutherland Asbill & Brennan LLP, has made available for download his article, “S Corporations as Shareholders, LLC Members, and Partners” published in 172 Tax Notes Federal 1713 (2021) and 172 Tax Notes Federal 1915 (2021). The abstract is as follows: This two-part article focuses … Continue reading Herbert N. Beller: S Corporations as Shareholders, LLC Members, and Partners (October 18, 2021)

Breaking Down the Plan to Report Your Bank Account to the IRS (October 14, 2021)

According to Bloomberg News, I carried a certain amount of starry-eyed innocence with me early in my tax career. And I remember the day it started to fade. I had been anticipating finalizing a settlement for a client’s outstanding tax liability. On paper, I was convinced we would get what we wanted. Then I got … Continue reading Breaking Down the Plan to Report Your Bank Account to the IRS (October 14, 2021)

Forbes: S Corp To Partnership Conversion Under Build Back Better (October 1, 2021)

Forbes has published an article, “S Corp To Partnership Conversion Under Build Back Better”, which discusses provisions of the Build Back Better Act such as the differing restrictions between S Corporations and Partnerships. The article begins as follows:  One of the most exciting provisions of the Build Back Better Act, to me anyway, is the … Continue reading Forbes: S Corp To Partnership Conversion Under Build Back Better (October 1, 2021)

Corporate State Tax Updates – June 2021

By Georgia Lo The following are recent significant State Corporate Tax developments for the month of June that may be of interest to estate and business planners, organized by state. California: On June 3, AB-71, regarding Global Intangible Low-Taxed Income and repatriation income, was moved to the inactive file. Colorado: On June 23, H.B.21-1311 was … Continue reading Corporate State Tax Updates – June 2021

IRS Updates Practice Unit on Foreign-Derived Intangible Income (June 28, 2021)

The IRS has updated its practice unit on Foreign-Derived Intangible Income (FDII). The overview is as follows: The Tax Cuts and Jobs Act enacted section 250, which provides for a deduction with respect to Global Intangible Low-Taxed Income (GILTI) and Foreign-Derived Intangible Income (FDII). The deduction is only available to domestic corporations (except that the … Continue reading IRS Updates Practice Unit on Foreign-Derived Intangible Income (June 28, 2021)

BDO: South Carolina Enacts PTE Tax Election As Workaround To $10K Salt Cap (June 2021)

Angela Acosta of BDO has published an article, “South Carolina Enacts PTE Tax Election As Workaround To $10K Salt Cap,” which discusses the logistics of South Carolina following in the footsteps of other states and implementing PTE taxation options. The article begins as follows: South Carolina enacted S.B. 627 on May 17, 2021, joining 11 other states … Continue reading BDO: South Carolina Enacts PTE Tax Election As Workaround To $10K Salt Cap (June 2021)

KPMG Podcast: Greener on the Other Side? The Inbound Perspective of the Green Book (June 15, 2021).

KPMG’s podcast discusses the possible implications of the Biden administration tax framework regarding multinational corporations with U.S. operations. The abstract is as follows: After much anxious anticipation, the Biden administration finally showed its cards. The Treasury Department’s General Explanations of the Administration’s Fiscal Year 2022 Revenue Proposals (the “Green Book”) provided a bit more detail … Continue reading KPMG Podcast: Greener on the Other Side? The Inbound Perspective of the Green Book (June 15, 2021).

IRS Updates Practice Unit on Partner’s Outside Basis (May 19, 2021)

The IRS has updated its practice unit on Partner’s Outside Basis. The overview is as follows: Background A partnership is a relationship between two or more persons who join together to carry on a trade, business, or investment activity. Each partner has a basis in his partnership interest. The partner’s basis in his partnership interest … Continue reading IRS Updates Practice Unit on Partner’s Outside Basis (May 19, 2021)

Susan C. Morse: The Quasi-Global GILTI Tax (June 8, 2021)

Susan C. Morse, of the University of Texas at Austin - School of Law, has made available for download her article, "The Quasi-Global GILTI Tax", published in the Pittsburgh Tax Review, volume 18. The abstract is as follows: The U.S. minimum tax on global intangible low-taxed income, or GILTI, suggests a broad way of thinking … Continue reading Susan C. Morse: The Quasi-Global GILTI Tax (June 8, 2021)

Forbes: Democrats Reintroduce ‘Millionaires Surtax’ Bill (June 10, 2021)

Forbes has published an article, "Democrats Reintroduce 'Millionaires Surtax' Bill," which provides key facts and a brief summary of the new surtax bill. The article begins as follows: Days after a bombshell ProPublica report revealed many of the wealthiest Americans have paid very little in federal income tax, a group of Democrats reintroduced legislation Thursday to institute a surtax … Continue reading Forbes: Democrats Reintroduce ‘Millionaires Surtax’ Bill (June 10, 2021)

Bloomberg Wealth: World’s Richest Face Tax Blow After 40% Wealth Surge to $8.4 Trillion (June 10, 2021)

Ben Steverman, Laura Davison, and William Horobin of Bloomberg Wealth, have recently made available their article that discusses politicians' expected endorsement of tax plans that will plug legal loopholes used by the wealthiest individuals and corporations to pay lower tax rates. Their article, "World’s Richest Face Tax Blow After 40% Wealth Surge to $8.4 Trillion," … Continue reading Bloomberg Wealth: World’s Richest Face Tax Blow After 40% Wealth Surge to $8.4 Trillion (June 10, 2021)

BDO: IRS Streamlines Automatic Consent Procedures For CFC Depreciation Method Changes, Clarifies Treatment Of Catch-Up Adjustment (June 2021)

BDO has published an article, “IRS Streamlines Automatic Consent Procedures For CFC Depreciation Method Changes, Clarifies Treatment Of Catch-Up Adjustment,” which discusses new filing procedures released by the IRS for certain foreign corporations (CFCs). The article begins as follows: On May 11, 2021, the IRS and Treasury released Rev. Proc. 2021-26, which provides streamlined filing procedures … Continue reading BDO: IRS Streamlines Automatic Consent Procedures For CFC Depreciation Method Changes, Clarifies Treatment Of Catch-Up Adjustment (June 2021)

Deloitte: Treasury ‘Green Book’ sheds additional light on Biden’s tax proposals (May 29, 2021)

Deloitte has published an article, "Treasury ‘Green Book’ sheds additional light on Biden’s tax proposals," which discusses and analyzes the Biden administration's tax proposals for the 2022 fiscal year. The article begins as follows: The White House released a fiscal year 2022 budget blueprint on May 28 that, as expected, calls for significant tax increases … Continue reading Deloitte: Treasury ‘Green Book’ sheds additional light on Biden’s tax proposals (May 29, 2021)

BDO: Georgia Enacts PTE Tax Election As Workaround To $10K Salt Cap

Tony Manners of BDO has published an article, "Georgia Enacts PTE Tax Election As Workaround To $10K Salt Cap," which discusses the logistics of Georgia's H.B. 149 and how it impacts taxation regarding pass-through entities (PTEs). The article begins as follows: Georgia enacted H.B. 149 on May 4, 2021, becoming another state to give pass-through entities (PTEs) the … Continue reading BDO: Georgia Enacts PTE Tax Election As Workaround To $10K Salt Cap

Daniel J. Hemel and Gregg D. Polsky: Equalizing the Tax Treatment of Stock Buybacks and Dividends (April 15, 2021)

Daniel J. Hemel and Gregg D. Polsky, of University of Chicago Law School and University of Georgia School of Law, have made available for download their article, "Equalizing the Tax Treatment of Stock Buybacks and Dividends." The abstract is as follows: This policy brief highlights flaws in the current federal tax treatment of stock buybacks … Continue reading Daniel J. Hemel and Gregg D. Polsky: Equalizing the Tax Treatment of Stock Buybacks and Dividends (April 15, 2021)

Corporate State Tax Updates – April 2021

Georgia Lo The following are recent significant State Corporate Tax developments for the month of April 2021 that may be of interest to estate and business planners, organized by state.  Arizona: On April 14, S.B. 1752 was signed into law, updating Arizona’s conformity to Internal Revenue Code (IRC) provisions regarding definitions of adjusted gross income … Continue reading Corporate State Tax Updates – April 2021

Rev. Proc. 2021-26: Automatic Change of Accounting Method Procedures Expanded for CFCs

The IRS has released Rev. Proc. 2021-26 which modified its automatic consent procedures in Rev. Proc. 2019-43 , I.R.B. 2019-48, 1107, to allow certain foreign corporations to change their method of accounting for deprecation to the alternative depreciation system under Code Sec. 168(g) (ADS). Additionally, terms and conditions in Rev. Proc. 2015-13 , I.R.B. 2015-5, … Continue reading Rev. Proc. 2021-26: Automatic Change of Accounting Method Procedures Expanded for CFCs

Barker v. Comm’r: Tax Court Properly Upheld Income Tax Deficiency (April 27, 2021)

In Barker v. Commissioner of Internal Revenue, No. 19-11994 (11th Cir. 2021), the Tax Court’s upholding of the IRS’s determination of an income tax deficiency (individual) was affirmed. The taxpayer started an entertainment company (partnership for tax purposes). As a passthrough entity, the company paid no income tax and its losses flow directly through to … Continue reading Barker v. Comm’r: Tax Court Properly Upheld Income Tax Deficiency (April 27, 2021)

BDO: Frequently Asked Questions Related to Employee Stock Ownership Plans (ESOPs) (April 2021)

BDO has published an article, “Frequently Asked Questions Related to Employee Stock Ownership Plans (ESOPs),” which discusses the logistics behind an ESOP, and the benefits these kinds of retirement plans can produce.  The article begins as follows: Employee ownership can be an attractive option for owners looking to sell their business while maintaining their legacy … Continue reading BDO: Frequently Asked Questions Related to Employee Stock Ownership Plans (ESOPs) (April 2021)

Daniel J. Hemel and Gregg D. Polsky: Equalizing the Tax Treatment of Stock Buybacks and Dividends (April 15, 2021)

Daniel J. Hemel and Gregg D. Polsky, of University of Chicago - Law School and University of Georgia School of Law, respectively, have made available for download their article, “Equalizing the Tax Treatment of Stock Buybacks and Dividends,” published in SSRN. The abstract is as followed: This policy brief highlights flaws in the current federal … Continue reading Daniel J. Hemel and Gregg D. Polsky: Equalizing the Tax Treatment of Stock Buybacks and Dividends (April 15, 2021)