It is widely held that the reality of a transaction should ultimately govern when interpreting the meaning of a contractual arrangement. The "substance over form" doctrine, which originated under the Supreme Court's ruling in Gregory…

"Give someone an inch and they'll take a mile." Although this phrase is usually not associated with state taxation, perhaps it should be. More specifically, in the absence of guidance from the United States Supreme Court, states have sometimes taken…

For years, the collective wisdom has been that flow-through entities such as partnerships and S corporations are rarely audited. We still regularly hear that comment in the marketplace. However, this is no longer the case. In fact, several years ago…

Recently, tax services firm Ryan LLC reopened the question of whether advisors should be allowed to enter into contingent fee arrangements for certain matters before the Internal Revenue Service (IRS). The rationale for banning such arrangements is…

In the popular series "Where in the World Is Carmen Sandiego?" Carmen is an international thief who sneaks around the world dodging the crime-fighting moves of her followers while leaving behind fundamental lessons of math, geography and other…

As multinational companies expand their operations around the world, new anti-avoidance measures and new laws are being enacted to ensure that tax authorities receive part of the revenue generated in their jurisdictions. As a result, in-house tax…

Day after day, we read reports of disconcerting financial and economic events worldwide. Certainly, Europe takes the lead with its continuing problems of financial system instability. Capital is fleeing at-risk countries, putting further strains on…

Companies often deduct their annual bonus expense the year prior to paying the bonus. But should they? The answer is not clear, and the IRS has changed its position on this issue.This article addresses whether a company can deduct an annual bonus…

Does your company qualify as a manufacturer? States can't seem to agree. Of the 45 states that impose sales and use tax on sales of tangible personal property, most provide an exemption or reduced rate for companies that operate as manufacturers.…

As professionals in accounting and finance, we are well aware of the independence requirements set forth by the Sarbanes-Oxley Act of 2002 that govern how accounting firms can, and cannot, interact with their publicly traded clients. Yet 10 years…

A business or intangible asset is typically valued using a combination of the income, market and asset approaches. A valuation conducted specifically for tax purposes introduces added layers of complexity due to nuances specific to this type of…

2012-Issue 18—For many years, names like Amazon and eBay have dominated the debate about sales tax collection from online retailers. These online behemoths directly compete with brick-and-mortar retailers, have billions of dollars in annual revenues…

2012 - Issue 17 - A pattern seems to be developing at the IRS of issuing significant guidance to taxpayers right before major holidays. Most recently, two new revenue procedures under the new tangible property regulations were issued on March 7…

Now that the domestic production activities deduction under Section 199 of the Internal Revenue Code has finally reached its peak statutory rate, the deduction has become the largest permanent tax benefit for many taxpayers. The increasing size of…

The Internal Revenue Service is focused on closing the tax gap. One way it hopes to do so is by collecting under-withheld employment taxes. As part of the Employment Tax Research Project (ETRP) launched in 2010, the IRS is reviewing the payroll…

Admittedly, I am not a big consumer of social media. I don’t have a Facebook page; I have never used Groupon; I have been scolded by colleagues for not effectively leveraging the business potential of LinkedIn; and I’m not exactly sure what Zynga is…

While many have a difficult time feeling sympathetic toward financial institutions, the reality is that they are being subjected to an extraordinary amount of new regulations and significant changes to their former business models. The days of…

I'm sure you're familiar with the ancient Chinese curse, "May you live in interesting times." Interesting times are usually uncertain times, and the unprecedented uncertainties we're now facing in our nation's tax policy are transforming this curse…

With the pervasiveness of cloud computing, you may have witnessed a state tax assessor acting on an extreme tax position in an effort to apply dated tax concepts to a technological new world. Tax treatment varies from state to state, and some states…

Cash management has been top of mind for corporations, especially during the recent economic difficulties, and should be a best practice regardless of the economy. If you’re a calendar year-end corporate taxpayer, it’s the time of the year that…