Statute of limitations can work in favor of the taxpayer

Article Abstract:

Practitioners need to have a knowledge of the Internal Revenue Code (IRC) statute of limitation rules in order to avoid overlooking refunds and to minimize the penalties from understatement of tax liabilities. Under the IRC, taxes must be assessed by the IRS within three years after a return was filed or within three years of the due date of a return. Where a tax has been assessed within the statute of limitations, tax collection must occur within six years. The limitation for filing a claim for credit or refund for overpayment is three years from the date of filing or two years after the tax was paid. The mitigation rule of the IRC permits corrections to items improperly treated in a tax year closed by the statute of limitations in cases where the IRS or taxpayer adopts a position in an open year for an item inconsistent with previous treatment in order to ensure consistency.

Limitation of actions (Taxation), Statute of limitations (Taxation)

---

Adjusted current earnings (not quite E&P) must now be calculated to determine the AMT

Article Abstract:

The Tax Reform Act of 1986 replaced the add-on minimum tax with a new alternative minimum tax (AMT) for corporations, to ensure that corporations with a great amount of economic income could not avoid significant tax liabilities. An adjustment based on income tax principles replaces the adjustment based on financial statement principles in the computation of corporate income taxes for tax years beginning in 1990. An adjustment based on adjusted current earnings (ACE), which differs from earnings and profits, is used to compute the alternative minimum taxable income (AMTI). Depreciation determinations are complex, and are arrived at by comparing ACE depreciation with AMTI depreciation. A reasonable estimation of all adjustments to ACE must be taken into consideration when making estimated tax payments.

Analysis, Profit, Profits, Minimum tax

---

Similar abstracts:

• Abstracts: More deliberations from EIC. Mind over matter: how current accounting practices hobble innovative companies
• Abstracts: The analytical derivation and empirical test of a tax-adjusted fundamental value model. Further evidence on the marginal gains in accuracy of alternative levels of specificity of the producer price indexes
• Abstracts: Buyer-seller relationships in the procurement of logistical services
• Abstracts: The place of communication skills in the training of accountants in New Zealand
• Abstracts: Intra-family transfers continue to provide tax saving opportunities

This website is not affiliated with document authors or copyright owners. This page is provided for informational purposes only. Unintentional errors are possible.