United States

The Tax Exchange - May 2016

Pay attention to deadlines for filing an appeal-they really do matter

When you reach the end of the audit process and a state issues a deficiency notice, you have a limited amount of time to respond, generally either 30, 60 or 90 days from the date of the notice.

  • May 30, 2016

Monitor shareholder activity to avoid S corporation terminations

Each week, the IRS releases its latest batch of private letter rulings. Invariably, each batch includes several rulings where the IRS grants relief to an S corporation that has realized that its Subchapter S election has inadvertently terminated. In most cases, the inadvertent termination can be traced to a failure on the corporation's part to monitor the activities of its shareholders.

  • May 26, 2016

FASB lease standard and the tax treatment of leases

With the FASB's February 2016 release of a new standard for the accounting treatment of leases, companies should review the standard and determine the impact on their financial statements.

  • May 24, 2016

Employers beware: Cybercriminals scheme to get employee W-2 information

A new scheme has tricked several well-known companies into unknowingly placing employee Form W-2 information directly into the hands of cybercriminals who quickly file fraudulent tax returns claiming refunds or sells the information on the ‘dark Web.'

  • May 20, 2016

Proposed debt-equity regulations would disrupt tax planning

If finalized, recent proposed regulations would recharacterize certain related-party debt instruments as equity and cause a significant disruption to certain tax planning activities. The rules generally would apply to affiliated corporations, whether foreign or domestic.

  • May 18, 2016

Supreme Court refuses to overturn foreign tax credit case

On April 18, 2016, the U.S. Supreme Court let stand a Federal Circuit decision disallowing claims for refund related to foreign taxes paid because the taxpayer failed to file its claims within the statutory 10-year limitation period.

  • May 16, 2016

Nebraska extends sunset dates for credits and incentives

On April 19, 2016, Nebraska Gov. Pete Ricketts signed a law extending the sunset date for a number of Nebraska tax credit and incentive programs.

  • May 12, 2016

Interplay between reduced research credit election and DPAD

If your business is engaged in research and experimentation (R&E) activities, you can generally deduct related expenses. You may also qualify for the research credit for certain expenses incurred in performing qualified research.

  • May 10, 2016

Treasury issues inversion regulations

The Treasury and IRS recently issued temporary and proposed regulations to address corporate inversion transactions. While U.S. businesses often expand operations through combinations with foreign companies, a company that inverts and changes its tax residence to a foreign country may achieve significant U.S. tax benefits.

  • May 04, 2016