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Lynn Nichols of Nichols Patrick CPE delivers the latest updates in the federal tax arena. Now that tax season is over, it is time to finish your CPE for this year. Please see www.ficpa.org/catalog for all of the FICPA CPE opportunities. The podcast this week covers the topics below:
- Sales at Prices Below Acquisition Cost Satisfy All-Events Test - (FAA 20121602F; 3/16/2012; rel. 4/20/2012)
In field attorney advice, the IRS concluded that the all-events test is met when a wholesaler sells to a pharmaceutical company at prices below the wholesaler's acquisition cost.
- Cellular Communications Towers Classified for Depreciation Purposes - (LTR 201216029; 12/13/2011; rel. 4/20/2012)
The IRS ruled that a corporation's land, rooftop, and horizontal cellular antenna towers and their supporting foundations are included in asset class 00.3 of Rev. Proc. 87-56 for purposes of section 168.
- Final Regs on Cross-Border Stock Transfers, Gain Recognition - (T.D. 9585; 77 F.R. 24380-24381; 4/24/2012)
The IRS has published final regulations on the characterization of gain recognized on distributions of property in connection with the stock of some foreign corporations.
- Proposed Regs on Deductibility of Local Lodging Expenses - (REG-137589-07; 77 F.R. 24657-24660; 4/25/2012)
The IRS has published proposed regulations on the deductibility of lodging expenses when not traveling away from home.
- Overstatement of Basis Is Not an Omission From Gross Income (United States v. Home Concrete & Supply LLC et al.; US SC No. 11-139; 4/25/2012)
The Supreme Court, following its decision in Colony Inc. v. Commissioner, 357 U.S. 28 (1958), affirmed the Fourth Circuit's holding that an overstatement of basis that results in understated income is not an omission from gross income for purposes of triggering the six-year limitations period for assessment in section 6501(e)(1)(A).
- Guidance on Whether Health Plans Provide Minimum Value - (Notice 2012-31; 2012-20 IRB 1; 4/26/2012)
The IRS has issued guidance describing possible approaches to determining whether health coverage under an eligible employer-sponsored plan provides minimum value.
- IRS Publication Containing Guidance for Independent Contractor or Employee - (Publication 1779; 3/1/2012; rel. 4/27/2012)
The IRS has released Publication 1779 (rev. March 2012), Independent Contractor or Employee, to provide guidance for classifying individuals as employees or independent contractors for determining income tax withholding.
LAST UPDATED 4/30/2012