John G. Hodnette
Statutes of Collections for Federal and North Carolina Taxes
For administrative convenience, federal and North Carolina law both provide that after a specific period of time, uncollected taxes are written off and…
Tax Advantages of S Corporations
Limited liability companies can elect to be taxed under federal and state law in a number of different ways. One popular choice for small business owners is…
Gain Exclusion for Section 1202 Stock
The decrease in the corporate tax rate by the 2017 Tax Act has made it more favorable for businesses to operate as C corporations. With more businesses opting…
Reinstatement of 501(c)(3) Status for Charitable Organizations
Nonprofit organizations generally must file a Form 1023 with the IRS to obtain federal tax-exempt status under Section 501(c)(3). However, such status may not…
Tax Consequences of Terminating Whole Life Insurance with Existing Policy Loans
Whole life insurance, when distinguished from term life insurance, has several qualities that may create surprising tax results. One of these potential…
Disregarded Entities and Partnerships
Single-member LLCs and grantor trusts are both entities that exist for state law purposes but are disregarded for federal income tax purposes. These entities…
Casualty Losses Under Sections 162 or 165(c)(2)
The Internal Revenue Code (“IRC”) sometimes provides multiple avenues for a taxpayer to obtain a deduction depending on how the taxpayer characterizes the…
The NOL Carryback Rules Under the CARES Act
On March 27, the Coronavirus Aid, Relief, and Economic Security (“CARES”) Act introduced a number of new provisions to assist businesses and individuals…
The Tax Implications of Three Programs Created by the CARES Act
The landscape of the United States has changed in the past weeks as COVID-19 continues to sweep across our nation. The Federal government attempted to…
IRS Response to COVID-19: Installment Agreements, Offers in Compromise, and IRS Collection Actions
The novel coronavirus known as COVID-19 has changed the world as a global pandemic disrupts the day-to-day business operations of almost every country. The…