John G. Hodnette

Requests for Tax-Exempt Organization Annual Returns

Section 6104(d)(1)(B) provides a right to taxpayers to request the application for tax exemption and annual informational returns for the last three years of…

Section 1377(a)(2) Elections for S Corporations

Section 1377(a)(1) generally provides each shareholder of an S corporation is allocated income or loss of the corporation by (a) assigning an equal portion of…

Qualified Charitable Distributions from IRAs

Section 401(a)(9) requires annual minimum distributions from traditional IRAs beginning in the year the owner of the account attains age 72 or, if later, the…

New North Carolina PTE Tax Can Reduce Federal Income Taxes

The Tax Cuts and Jobs Act of 2017 capped the deduction available to individual taxpayers under Section 164 to $10,000 for 2017 through 2025. That deduction…

Transferee Liability Under Section 6901

In general, operating a business through an entity can provide limited liability in the event the entity is insolvent or goes out of business. Limited…

Taxation of Noncompete Agreements

Purchasers of a successful business have the reasonable concern that the prior owners will use their expertise to open a new business across the street that…

You Cannot be Both an Employee and a Partner of a Partnership

A person who is both an employee and a partner in a partnership is not treated as an employee for tax purposes. Rev. Rul. 69-184 states “bona fide members…

What is an IC-DISC?

An interest charge domestic international sales corporation (“IC-DISC”) is a special tax exempted domestic corporation that qualifies under Sections 991…

The Basics of F Reorganizations

Among the tax-free reorganizations authorized by Section 368 is the F reorganization. Section 368(a)(1)(F) defines this type of reorganization as “a mere…

What is an Investment Partnership?

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…