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)
Category: Business Income Tax
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)
Corporate State Tax Updates – March 2021
By Georgia Lo The following are recent significant State Corporate Tax developments for the month of March 2021 that may be of interest to estate and business planners, organized by state. Alabama: The Alabama Court of Appeals recently upheld the state’s mandatory corporate income tax return requirement for passthrough entities with non-resident members. Under state law, … Continue reading Corporate State Tax Updates – March 2021
AICPA J. Accountancy: IRS explains which meals qualify for temporary 100% expense deduction (April 8, 2021)
Sally Schreiber has published her article, "IRS explains which meals qualify for temporary 100% expense deduction," in the AICPA Journal of Accountancy. The article, which unpacks Thursday's IRS guidance for restaurant businesses in regards to qualifying for deductions, begins as follows: The IRS released guidance on Thursday explaining when the temporary 100% deduction for restaurant … Continue reading AICPA J. Accountancy: IRS explains which meals qualify for temporary 100% expense deduction (April 8, 2021)
IRS urges participants of abusive micro-captive insurance arrangements to exit from arrangements (Apr. 9, 2021)
Internal Revenue Service officials urged participants in abusive micro-captive insurance arrangements to exit these transactions as soon as possible. The IRS has stepped up examinations of these arrangements and has recently won yet another case in U.S. Tax Court that such arrangements are not eligible for the tax benefits claimed. On March 10, 2021, the … Continue reading IRS urges participants of abusive micro-captive insurance arrangements to exit from arrangements (Apr. 9, 2021)
CCA 202114020 (Apr. 12, 2021): Bitcoin Cash Received as a Result of Bitcoin Hard Fork Included in Gross Income
In CCA 202114020, the IRS ruled on the issue of whether a taxpayer who received Bitcoin Cash as a result of the August 1, 2017, Bitcoin hard fork has gross income under section 61 of the Internal Revenue Code (Code)? The IRS reached the conclusion that, yes, a taxpayer who received Bitcoin Cash as a … Continue reading CCA 202114020 (Apr. 12, 2021): Bitcoin Cash Received as a Result of Bitcoin Hard Fork Included in Gross Income
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