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Archive for the ‘S Corporations’ Category

Starting a Business – An Alphabet Soup of Choices (of Entity)

Published: April 18th, 2016

By: Dana M. Apfelbaum

Starting and running a business requires making many important decisions. The very first decision faced by many business owners is what kind of entity should be formed to operate their business. In Florida, there are a number of available options. While the decision can be daunting, the variety in flavor of business entities provides the […]

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 […]

IRS Issues Proposed Regulations Eliminating Requirement That Service Provider File Copy of Section 83(b) Election with Tax Return

Published: August 11th, 2015

By: Stephen R. Looney

On 7/17/2015, the IRS issued proposed regulations regarding the Section 83(b) election.  Under the general rule of Section 83(a), if, in connection with the performance of services, property is transferred to any person other than the person for whom such services are performed, the excess of the fair market value of the property as of […]

Compensation Reclassification Risks for C and S Corporations in Journal of Taxation

Published: June 16th, 2015

By: Stephen R. Looney

Stephen R. Looney, Shareholder and Chair of Dean Mead’s Tax department, co-authored the article titled, “Compensation Reclassification Risks for C and S Corporations”. The article was published in the Journal of Taxation, May 2015 edition. The full article is provided here: Compensation Reclassification Risks for C and S Corporations.

Circular Flow of Funds in Back-to-Back Loan Transactions May Give Rise to Basis under Section 1366(d)(1)(B)

Published: April 17th, 2015

By: Stephen R. Looney

At the ABA Tax Section S Corporations meeting held in Houston, Texas, on 1/30/2015, government officials defended their decision not to include in the final Section 1366 and Section 1367 S corporation back-to-back loan regulations an example on loan restructurings involving a circular flow of funds.  The statement was made in a panel presentation at […]

Tax Court Recharacterizes Portion of Bonus Paid to Physician as Nondeductible Dividend

Published: April 7th, 2015

By: Stephen R. Looney

In Midwest Eye Center, S.C.,[1] the Tax Court held that $1 million of a $2 million bonus paid to the physician sole shareholder of a personal service corporation was a non-deductible dividend distribution. Under the facts of the case, the taxpayer, a C corporation, conducted an ophthalmology surgery and care center during the tax years at […]

Attorney Brad Gould Speaks at American Bar Association’s Section of Taxation Meeting

Published: February 6th, 2015

By: Brad Gould

FORT PIERCE, Fla. – Brad Gould – a shareholder at the law firm of Dean, Mead, Minton & Zwemer recently served as a moderator and presenter at the ABA Tax Section Midyear Meeting in Houston, Texas on Jan. 30. Gould moderated and presented the Current Developments Program for the S Corporation Committee. Gould practices in […]

Steve Looney Moderates Panel at ABA Tax Section

Published: February 5th, 2015

By: Stephen R. Looney

Stephen Looney, shareholder and chair of Dean Mead’s Tax Department, moderated a panel discussion at the ABA Tax Section Midyear Meeting (S Corporations Committee) in Houston, Texas on January 30, 2015. His topic was “Final Back-To-Back Loan Regulations”. Looney was also quoted in the February 2, 2015 edition of Tax Analysts Tax Notes from the ABA Meeting: Officials Explain Lack of […]