The Tax Exchange - May 2016
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.
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.
The FASB released a new standard for lease accounting; companies should review and determine the impact on their financial statements.
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.'
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.
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.
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.
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.
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.