Archive for the ‘CPAs’ Category

IRS’s Informal S Corporation No-Rule List Includes Three New Items

Published: March 16th, 2017

By: Stephen R. Looney

A taxpayer may, for a fee, request a written letter ruling from the IRS interpreting and applying tax laws to the taxpayer’s represented set of facts. However, there are some issues in which the IRS will not issue a letter ruling. Taxpayers should note that the IRS has recently added three new issues to its […]

Widow Allowed to Expense Previously Expensed Farming Inputs

Published: January 17th, 2017

By: Brad Gould

In the case of Estate of Backemeyer v. Commissioner, 147 TC 17 (2016), the Tax Court held that the widow of a Nebraska farmer was entitled to expense farming inputs she inherited from her husband, who had expensed the same inputs during his life. Mr. Backemeyer, a corn and soybean farmer, purchased farming inputs consisting of seed, […]

Reverse Like-Kind Exchange Qualifies For Section 1031 Non-Recognition Treatment

Published: November 16th, 2016

By: Stephen R. Looney

In Bartell v. Comm’r,[1] the Tax Court held that a reverse like-kind exchange made by a drug store chain which did not qualify for the safe harbor under Rev. Proc. 2000-37,[2] still qualified for non-recognition treatment under Section 1031. The Revenue Procedure was inapplicable because the replacement property was purchased before the publication of the […]

Florida’s Water Crises: Can We Afford The Solutions? (Part II)

Published: November 15th, 2016

By: Michael D. Minton Brad Gould Dana M. Apfelbaum

With the renewed focus on water projects due to discharges from Lake Okeechobee and a recent surge in blue/green algae, there is also a renewed effort to involve private interests in the development of these projects. This series of articles addresses exceptions to the general rule that government payments received by private landowners as a […]

Florida’s Water Crises: Can We Afford The Solutions? (Part I)

Published: August 24th, 2016

By: Michael D. Minton Brad Gould Dana M. Apfelbaum

If you want to get the attention of your elected officials in Florida, make sure there is an event that may adversely affect the tourism industry! The State of Florida receives (on average) between 50 – 60 inches of rain each year. Currently, our water management system is designed primarily as a drainage system with […]

Bipartisan Budget Act of 2015

Published: June 29th, 2016

By: Charles H. Egerton

Charlie Egerton, shareholder in Dean Mead’s Tax Department, discusses the revolutionary audit rules that are a part of the Bipartisan Budget Act of 2015 and how they affect entities treated as partnerships for tax purposes. Bipartisan Budget Act of 2015

Compensation to Law Firm Shareholder-Employees Disallowed by Tax Court

Published: March 17th, 2016

By: Stephen R. Looney

In Brinks,[1] the Tax Court once again applied the independent investor test to recharacterize compensation paid by a professional corporation, a law firm, to its shareholder-employees as nondeductible dividend distributions, and held the corporation liable for accuracy-related penalties for mischaracterizing the dividends as deductible compensation. This case should serve as a warning for many mid-size […]

Court Finds Shareholder Liable in Recent Midco Transaction

Published: January 15th, 2016

By: Stephen R. Looney

In Tricarichi,1 the Tax Court held that the sole shareholder of a corporation was liable as a transferee for the corporation’s unpaid tax liability after he sold his stock in a “Midco” transaction, resulting in a tax deficiency of $15,186,570 and penalties of $6,012,777 under Section 6901 and Ohio fraudulent transfer laws. The taxpayer was […]