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Lynn Nichols delivers the podcast for the week. For all of your CPE needs please see www.ficpa.org/cpe. The podcast this week covers:
- Liability to Pay Rebates is Fixed by Purchase for Purposes of All Events Test
(TAM 201223015; 2/17/2012; rel. 6/8/2012)
In a technical advice memorandum, the IRS concluded that under the all events test of section 461, an accrual method manufacturer's liability to pay certain trade promotion rebates to customers becomes fixed and determinable when customers purchase the goods.
- Q&A on Reporting Specified Foreign Financial Assets
(Basic Questions and Answers on Form 8938; www.irs.gov; 6/7/2012)
The IRS has posted to its website a list of questions and answers on Form 8938, "Statement of Specified Foreign Financial Assets," which is used to meet reporting requirements under the Foreign Account Tax Compliance Act.
- Proposed Regs on Back-to-Back Loans by S Corp Shareholders
(REG-134042-07; 77 F.R. 34884-34887; 6/12/2012)
The IRS has published proposed regulations on the basis of indebtedness of S corporations to their shareholders, emphasizing that shareholders increase their basis only if the indebtedness is bona fide.
- Converting Charitable Contributions to NOLs
(Tax Notes Today; 6/12/2012; Article by David Culp and Vivian Moore)
David Culp and V. Moore discuss the charitable contribution conversion rule and its interplay with net operating loss rules under sections 172(b)(2) and 170(d)(2)(B).
- Income Tax, Penalties, Excise Taxes on Excess Contributions to Roth IRAs
(Steven W. Repetto et ux. et al. v. Commissioner; T.C. Memo. 2012-168; 6/14/2012)
The Tax Court held a couple liable for excise taxes on excess contributions to their Roth IRAs that held majority interests in two corporations, additions to tax, and accuracy-related penalties for reportable transaction understatements; the court also sustained the IRS's disallowance of their corporations' claimed expense deductions.
- Appraisal Filed to Meet Requirements for Donation of Conservation Easement
(Steven Rothman et ux. v. Commissioner; T.C. Memo. 2012-163; 6/11/2012)
The Tax Court held that a couple that donated a façade conservation easement on their residence didn't attach a qualified appraisal to their tax return for purposes of section 170 and the substantial compliance doctrine didn't apply, but whether the reasonable cause exception of section 170 (f)(11)(A)(ii)(II) applies is an issue for trial.
- Mental Disorders Not Reasonable Cause for Failure to File, Pay Taxes
(Austin Danne Hardin v. Commissioner; T.C. Memo. 2012-162; 6/11/2012)
The Tax Court, upholding additions to tax, found that an engineer's mental disorders didn't provide reasonable cause for his failure to timely file returns and pay taxes; the court also held that it lacked jurisdiction over his interest abatement claim and that he wasn't entitled to section 6511(h) relief as a financially disabled individual.
LAST UPDATED 6/18/2012