By John G. Hodnette As discussed in my January 12, 2022, blog post, Section 731(c) generally treats marketable securities as money in determining gain or loss on a distribution to a partner. Section 731(c)(3)(A)(iii) provides an exception in the case of marketable securities held by an investment partnership that are distributed to an eligible partner. […]
By John G. Hodnette Section 6115 imposes a disclosure requirement on charitable organizations that receive quid pro quo contributions in excess of $75. A quid pro quo contribution is a payment made partly as a contribution to the charity and partly in consideration for goods and services provided to the payor by the charitable organization. […]
By Herman Spence III There have been several recent national articles about North Carolina tax matters. 1. The May 11, 2022 issue of Taxes – The Tax Magazine has an article entitled “100 Years of State and Local Taxation in North Carolina.” The article is by Roby B. Sawyers, who is a professor in […]
By John G. Hodnette Sections 280G and 4999 impose a 20% excise tax in addition to regular income taxes on individuals who receive an excess parachute payment upon a change of control or sale of a substantial portion of the assets of a corporation. Section 280G also prohibits the corporation from deducting the payment. However, […]
After a 3-year hiatus, the Tax Section returns to beautiful Kiawah Island, SC for its annual meeting and CLE program, May 27-29, 2022. The 3-day program includes sessions on state and federal tax, tax policy, and planning, with added ethics and technology sessions. Speakers include well-known professionals from private practice, government, and education sectors. The […]
By John G. Hodnette Section 501(a) provides an exemption from income taxation for certain organizations. For decades, the IRS has provided a procedure allowing multiple organizations to receive tax exemption under the same umbrella central organization. Such group exemption process was instituted to relieve the IRS from the burden of individually processing a large number […]
By Keith A. Wood I. IRS Continues to Crack Down on S Corporation Disguised Wages. In Ward & Ward Company v. Commissioner, T.C. Memo. 2021-32, the Tax Court held payments from an S corporation law firm to its owner/shareholder were wages subject to self-employment tax rather than a Subchapter S distributions of profit. II. Court […]
By Keith A. Wood Tax Court Again Rules Emotional Distress is Not Physical Illness. In Tressler v. Commissioner, T.C. Summ. Op. 2021-33, the Tax Court held emotional distress damages are not excluded from income unless those emotional damages are attributable to a direct physical injury. Ms. Tressler brought a lawsuit against her former employer for […]
By John G. Hodnette Section 731(c) generally treats marketable securities as money in determining gain or loss on a distribution to a partner. Section 731(a)(1) provides no gain is recognized on a distribution to a partner except to the extent any money distributed exceeds the adjusted basis of the partner in the partnership interest. The […]
By Linda Nelson On November 1, 2021, the Chief Judge of the Office of Administrative Hearings, Donald van der Vaart, issued a memorandum announcing all OAH records of every tax case will be available to the public following an administrative law judge’s final decision. https://www.oah.nc.gov/ The promotion of transparency in North Carolina tax appeals began […]