John G. Hodnette
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…
Quid Pro Quo: Charity Disclosure Requirements
Section 6115 imposes a disclosure requirement on charitable organizations that receive quid pro quo contributions in excess of $75. A quid pro quo…
Golden Parachute Payments – Shareholder Approval Exception
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…
New Proposed Rules for Group Tax Exemptions
Section 501(a) provides an exemption from income taxation for certain organizations. For decades, the IRS has provided a procedure allowing multiple…
Marketable Securities as Money Under Partnership Tax Rules
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…
Penalty Waiver for Failure to Pre-Pay Penalties
The most common penalties assessed by the IRS are the failure to file and failure to pay penalties under Section 6651. However, another common penalty is the…
North Carolina Construction Sales and Use Tax
In 2017, North Carolina sales and use tax related to construction changed, creating a binary system. Although the Department of Revenue released Directive…
Should I Own Real Estate through an S Corporation or a Partnership?
Holding real estate through an S corporation may seem like a good idea at first glance. Almost all professionals, however, recommend a partnership over an S…