In the upcoming months, the U.S. Treasury and the IRS will be defending regulations aimed at curbing what they deem abusive tax practices, such as the economic substance doctrine, the Corporate Transparency Act and the moratorium on employee retention tax credits. Concurrently, the U.S. Supreme Court will review a case involving a defunct transportation company
On June 20, 2024, the Supreme Court issued a narrow ruling upholding the constitutionality of the transition tax in Moore v. United States. The Court did not address issues related to pass-through taxation, realization events, and a potential future wealth tax. The ruling preserves the tax laws related to foreign corporations that were ushered
The Treasury Department and IRS have just published proposed Regulations that would identify transactions resembling certain basket contract transactions as listed transactions per the meaning of Section 6011, making them reportable transactions. A “listed transaction” is a transaction that is the same as or substantially similar to one of the types of transactions that the
On June 20, 2024, the Supreme Court released its opinion in Moore et ux v. US, authored by Kavanaugh, decided by 6-3 vote and marking a rare instance for the Court to interpret the 16th Amendment, upholding the constitutionality and application of the so-called “Mandatory Repatriation Tax” [MRT] under Article I, §§8 and
Married taxpayers can file their taxes together or separately. Because it is often more tax-advantageous and convenient to file together, most married individuals elect to file as married filing jointly. But there are risks with this approach. When spouses file a joint return, they become jointly and severally liable for the taxes owed for that
New rules proposed by the U.S. Treasury Department relax disclosure requirements for certain offshore retirement accounts but leave classification questions unresolved. The guidance raises the reporting threshold for overseas retirement trusts, exempting more accounts than the 2020 procedure. However, uncertainty remains about classifying certain foreign retirement plans. Additionally, questions may arise about classifying transfers from
On March 25, 2024, the IRS issued proposed regulations (REG-108761-22) which, if finalized, would identify certain CRATs as listed transactions. For those unaware of the listed transaction rules, such a designation would mean that taxpayers and material advisors who participated in these CRATs would have to comply with lengthy disclosure statements or risk
Gray Reed Partners Austin Carlson and Cleve Clinton will be speaking at TXCPA Houston’s CPE by the Sea continuing education event on June 12, 2024, at the SouthShore Harbour Resort & Conference Center.
Austin’s session at 2pm will provide a top ten rundown of tips and traps related to 1031 exchanges. This will cover the
Intellectual property (“IP”) development can cost millions of dollars so cost recovery timing can be financially material. General tax principles typically require that expenses associated with creating assets having useful lives lasting longer than the current tax year are capitalized. However, IP as an asset class has several statutory cost recovery possibilities (§§ 162, 167