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Andrew Presti

AICPA Seeks Break for Nonsigning Preparers; Others Call Fees Valid

The National Society of Accountants Aug. 24 opposed any break from tax preparer identification proposed rules (REG-139343-08), for those who are licensed at the state level, while the American Institute of Certified Public Accountants argued that only tax preparers who sign a return should be forced to meet the Internal Revenue Service’s new requirements. Tax […]

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Andrew Presti

IRS: What’s in Your Reserve?

Tax law and accounting collide as the IRS prepares to dig deeper into uncertain tax positions. The Internal Revenue Service is headed down the home stretch with respect to uncertain tax positions. Since June, it has been reviewing public comments on its controversial proposal to require more-detailed disclosures around tax deductions and credits that may […]

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Andrew Presti

IRS Addresses Interaction Between Two NOL Carryback Provisions

The Internal Revenue Service Aug. 20 issued guidance addressing taxpayer questions on the interplay between the two different five-year net operating loss (NOL) carryback provisions Congress enacted in 2009, one targeted at small businesses and a subsequent one providing the NOL carryback relief to most businesses. In Notice 2010-58, IRS unveiled 20 questions and answers […]

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Andrew Presti

Stimulus and tax cuts now, smaller economy later, CBO report says

The Congressional Budget Office released an improved outlook for the federal budget deficit this year, but the report also amounted to a warning to President Obama and Congress about the limits of policies designed to stimulate the economy. On the positive side, the 2010 budget deficit – though gargantuan – is now forecast at $1.3 […]

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Andrew Presti

IRS Moves Forward With Preparer Registration Plan

On Thursday, the IRS issued proposed regulations that would put into place many of the parts of its plan to register and regulate tax return preparers (REG-138637-07). Proposed amendments to Circular 230 would clarify the definition of tax practice, establish a new “registered tax return preparer” designation, define the eligibility requirements for becoming a registered […]

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Andrew Presti

Congress Urged to Scrap New Form 1099 Reporting Requirements

The U.S. Chamber of Commerce announced Aug. 17 that more than 1,099 companies around the nation have signed a letter to lawmakers asking them to repeal new Form 1099 reporting requirements, calling them burdensome, complex, and very costly. Implemented as part of the recently enacted health care reform law (Pub. L. No. 111-148 as modified […]

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Andrew Presti

Decoupling Gift Tax, Estate Tax Exemptions Adds Complexity, JCT Says

President Obama’s proposal to keep the exemption level for the gift tax below that of the estate tax may discourage evasion, but it significantly adds to the complexity of the tax code, the Joint Committee on Taxation said in an Aug. 16 analysis. JCT’s analysis of the president’s fiscal year 2011 budget proposal noted that […]

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Andrew Presti

Laying Claim to Options Expense Deductions

The IRS concludes that stock-option payments made to employees of a former subsidiary create a compensation expense and deduction that belong to the subsidiary, not the parent company. Guidance from the Internal Revenue Service’s chief counsel, released last summer, opined on the tax treatment of stock-option payments made by a parent company to employees of […]

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Andrew Presti

New Law Significantly Alters FTC Regime, Practitioners Say

Changes to the foreign tax credit under newly signed legislation (Pub. L. No. 111-226) represent significant alterations to the cross-border tax regime and create a host of questions for taxpayers, Ernst & Young LLP practitioners said Aug. 12. “These provisions represent fundamental changes in some long-standing international tax rules,” Barbara Angus, a practitioner in E&Y’s […]

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Andrew Presti

Rules Issued for Income Deferral of Canceled Debt

The IRS issued temporary and proposed regulations Wednesday relating to taxpayer elections to defer recognition of cancellation of debt (COD) income.The American Recovery and Reinvestment Act of 2009 (ARRA, PL 111-5) enacted IRC § 108(i), providing an election to defer COD income arising from the forgiveness or reacquisition of certain debt instruments occurring between Jan. […]

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