Federal Income Tax Update
I. Thanksgiving Holiday Extends the Due Date for Filing Tax Court Petition; Sall vs. Commissioner, 161 T.C. No. 13 (2023). Mr. Sall received a notice of…
Section 351
Section 1032 provides no gain or loss is recognized by a corporation on the issuance of its stock to a new owner, whether in exchange for cash or otherwise.…
Federal Income Tax Update
I. 2023 Audit Statistics; Chances of Being Audited. The 2023 Internal Revenue Service Data Book released in April 2024 contains audit statistics for years…
Section 754 Elections
A partnership may elect to adjust its inside basis under Sections 734(b) and 743(b) by making a Section 754 election with the partnership’s annual tax…
Transfers of Property Between Divorcing Spouses
Prior to the Tax Cuts and Jobs Act of 2017, transfers between spouses or former spouses incident to divorce were treated as either (a) nontaxable transfers…
Jack Cummings Receives Tax Notes’ Award for Excellence in Tax Commentary
Jack Cummings received Tax Notes’ inaugural Award for Excellence in Tax Commentary on May 3 at the ABA Tax Section’s annual meeting. Jack is counsel in…
Claim of Right Doctrine of Section 1341
Under the claim of right doctrine, a taxpayer who receives income under a claim of right that is free of restrictions must include the amount in income in the…
Federal Income Tax Update
I. No Reasonable Cause Penalty Defense where CPA did not Give Specific Advice about Erroneous Items; Johnson v. Commissioner, TC Memo 2023-116 Mr. and Mrs.…
Partnership Representatives
Congress adopted new partnership audit rules as part of Bipartisan Budget Act of 2015 (“BBA”), replacing the Tax Equity and Fiscal Responsibility Act of…
Allocation of Income When a Partner Leaves a Partnership
The allocation of income when the ownership of an S corporation changes is discussed in my previous article Section 1377(a)(2) Elections for S Corporations.…