Taxpayers may benefit from early changes of accounting method
Article Abstract:
The IRS has recently introduced Revenue Procedure 92-20 to encourage taxpayers to voluntarily abandon improper accounting methods before or immediately after being notified by the Service. Those who comply with the Revenue Procedure's provisions and promptly change accounting methods will not be subject to any penalty. Taxpayers who continue to use impermissible accounting methods, on the other hand, are subject to such penalties as Section 6662's accuracy-related penalties and Section 6663's fraud penalties. Under Rev Proc 84-74, improper accounting methods may fall into two classes. Category A is comprised of methods that are blatantly flawed and those that are prohibited by the IRC, Regulations or US Supreme Court decisions. Category B consists of impermissibleaccounting methods not included in Category A.
Publication Name: Taxation for Accountants
Subject: Business
ISSN: 0040-0165
Year: 1993
User Contributions:
Comment about this article or add new information about this topic:
Divorce when a closely-held business interest is an asset requires special tax planning
Article Abstract:
The Deficit Reduction Act of 1984, especially the changes in the tax treatment of property transfers between spouses, have increased the options and planning opportunities for the realignment of closely held business interests between spouses. Thus, divorcing spouses have some control over the tax consequences of such transfers. Options are discovered for cases where business is conducted as sole propietorship, in corporate form, or as partnerships. Many unresolved questions, however, still remain in determining the applicability of these options.
Publication Name: Taxation for Accountants
Subject: Business
ISSN: 0040-0165
Year: 1986
User Contributions:
Comment about this article or add new information about this topic:
Even corporations can still realize tax savings from partial liquidations
Article Abstract:
The Internal Revenue Service rules which cover corporate distributions in partial liquidations have been altered by TEFRA, which eliminated partial liquidations for corporate shareholders. A framework is left by which the shareholder can plan capital gains treatment for payments stemming from the conduct of a business or trade. These partial liquidation regulations apply to noncorporate shareholders. There is insufficient opportunity for tax planning with a partial liquidation where the stock of one firm is bought by another firm.
Publication Name: Taxation for Accountants
Subject: Business
ISSN: 0040-0165
Year: 1986
User Contributions:
Comment about this article or add new information about this topic:
- Abstracts: Company benefits: into a new age. Accounting U.S. style: how not to do it? A very British muddle
- Abstracts: The structure of profit sharing schemes in accounting partnerships. Disclosure of reserve quantum in the extractive industries
- Abstracts: Free yourself from servitude. The money manager a new type of executive. A thoroughbred in your garage?
- Abstracts: Investment managers: a new breed from European stock? Freer life beckons in Europe. Salami tactics for a new economic order
- Abstracts: Crisis! managerial lessons from Pearl Harbor. Running successful problem-solving groups. Why managerial problem-solving groups fail