An Inquiry Into the Factors Aiding Clemency for Foreign Corporations Requesting Protective Tax Return Filing Deadline Waivers
Foreign corporations (FCs) often have varying degrees of U.S. business activities which in turn subject them to varying degrees of U.S. tax exposure. Anthony (“Tony”) Malik, EA
Creating a Taxpayer-Focused Internal Revenue Service
Enrolled agents and other tax professionals are not the only ones who get busy during tax season; Congress also takes a keen interest in tax law and tax administration during our busiest time of year. With that in mind, the NAEA Government Relations team got busy ad... Jennifer MacMillan, EA
Earnings And Profits of a C Corporation
When preparing a corporate tax return or advising a corporate client on the distribution of dividends, it is important to properly understand the term “earnings and profits.” Earnings and profits (E&P) is a tax term that applies to C corporations and is governed by IRC §312. It... Kevin C. Huston, EA, USTCP
March Madness – Not What It Used to Be!
Once upon a time, March was my favorite month of the year and the first weekend of the NCAA basketball tournament was my favorite weekend of the year. I would arrange to take time off from work, stock up on Mountain Dew and pizza and hunker down to watch 48 basketball games over the course ... Jerry Gaddis, EA
In the Game of Fraud, How Accounting and Tax Leaders Take Charge
Concern for security in today’s public and private sector companies continues to be more and more critical in a world of ongoing digital transformation, and it involves preventing and fighting fraud. The Association of Certified Fraud Examiners reports that U.S. businesses will lose an... Laurent Charpentier
Taxable Mergers and Acquisitions and the Unwanted Asset
Under One Roof I sometimes wonder at the number of corporations that own real property. It is often the case that the property is the corporation’s principal asset, which it leases to one or more commercial tenants, for example. That is bad enough.i There are o... Lou Vlahos
The Recent Shift Towards Territorial Taxation of U.S. Corporations
Prior to passage of the Tax Cuts and Jobs Act (TCJA), the U.S. was the only G-7 country that taxed its corporations with headquarters in the U.S. using a worldwide tax system. Marshall J. Heap, EA
There’s No Crying in Tax Prep
Our readers fall into two buckets, those who read the March/April issue when it arrives and those who catch up later in the year. The magazine reflects this reality as well, as does this message. For those of you reading this when it falls on your doorstep (as the son of a postman, I have a rather romantic notion of mail delivery), the message is this: What gift are you going to give your future self? You are learning things during this fi... Robert A. Kerr
Your Questions Answered
1. QUESTION: My client is employed and has a side business that requires him to go to multiple locations. He regularly drives directly from delivering products to one of his business clients to his place of employment or from his employer to a meeting relating to his business. Ho... Marie Condley, EA
Planning for the Future
When I was young—18—and attending my local community and state college, I also had a part-time job typing financial records for Stanford University. These documents listed every location on the university’s campus with corresponding columns of numbers and totals. Accuracy was paramount. T... Jean Nelsen, EA
Reimbursing Employees’ Business Expenses after the TCJA
Reimbursing Employees’ Business Expenses after the TCJA The Internal Revenue Code does not require employers to reimburse employees’ out-of-pocket business expenses. Employees were not completely out-of-pocket if their employers chose not to reimburse those costs. The... Alice Gilman
S Corporations Rules & Strategies
Formation and Requirements A corporation is created under state law and elects S corporation status by timely filing Form 2553, Election by a Small Business Corporation. The requirements under most state laws are that the taxpayer files articles of incorporation, obtain an employe... Anita Robinson, EA
Spring Fever
When I think of springtime, several things come to mind: Increased daylight, warmer weather, and spring cleaning. As the temperatures rise, I’m eager to open all the windows and clean out all the closets. Most people probably groan at the thought of spring cleaning, but it... Janelle Julien
What Qualifies as Real Estate Professional Hours for Passive Activity Purposes?
Ronnie Hairston and Gloria Cruz Hairston, Petitioners v. Commissioner of Internal Revenue, Respondent T.C. memo, 2019-104 | Filed August 20, 2019 Individual taxpayers can deduct passive activity losses for real estate rental activities, subject to limitations based on ad... Steven R. Diamond, CPA, USTCP
Tax Practice Management – Why Does It Matter?
Being a tax professional, you have certain due diligence requirements for the preparation of income tax returns. There are minimum standards that we all must follow. But I believe it is much more than a due diligence when preparing returns. Why, you might ask? I believe that our im... Dawn W. Brolin
