IRS gets firm direction from Tax Court on never-married couples with dependents |
For reasons political or otherwise, the IRS has been resistant in recent years in allowing dependency exemption rules to apply to couples who have never been married and who are living apart. While Code Sec. 152(e)(1) provides rules for assigning the exemption to non-custodial parents or others who provide support for a child, the IRS has taken the stance that the rules don't apply in the case of parents who have never married. Now those rules do apply as a result of the Tax Court's decision in J.R. King. Tax planning professionals can now assign the dependency exemption to the non-custodial parent or even to another person who provides significant support for a child — even if it is less than half of the overall support for the child. Three tax experts provide an overview of the case and its impact in a recent issue of TAXES: The Tax Magazine.
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Meeting the standards of GAAP — as well as Sarbanes-Oxley — has made tax issues more important than ever before when it comes to financial statements. Risks, deferred benefits, incentives, potential assessments, timing and other questions must be answered and reflected by careful accounting under GAAP rules. Expert author Bill D. Jarnagin takes apart some of these issues and outlines how tax professionals can navigate the GAAP minefield in 2005 U.S. Master GAAP Guide. Specific tax situations and rules for handling them are discussed in clear detail, allowing the practitioner to understand how to properly treat taxes from an accounting perspective. |
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Filing corporate tax returns in California is a complex procedure that could require the preparation of a combined report for members of a corporate group filing returns there. For each corporate entity doing business in California, questions of nexus, apportionment formulas and splitting off from the federal consolidated return arise. CCH's new California Tax Analysis: Corporation Tax devotes an entire chapter to the mechanics of the combined report and who should and shouldn't be included on one. The advice in this chapter isn't available anywhere else and it far exceeds the guidance provided by the Franchise Tax Board in its instructions for preparing the combined report. |
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When it comes time to deal with an audit from a state revenue department, it's easy to get caught up in the battle of disputes, interpretations and questions that seem aimed at digging out a huge assessment. But losing your cool in this pressure-packed situation can create lasting damage in your company's tax compliance efforts. Former state revenue commissioners shared their insights with CCH editors on how to manage relationships with the state revenue departments so as to get the best possible results for your company. Never underestimate state employees, they warn. Look at how many of today's top tax practitioners used to work for the state, notes William E. Halmkin, a senior partner with Sullivan and Worcester in Boston and former deputy commissioner for Massachusetts. And, whatever you do, don't call the governor's office to use your "pull" to influence an audit. Why? Click the link below for the full article to get the answer. |
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Sorting out retirement plan assets in a divorce is a difficult problem. Pre-marital assets are a question even in dealing with 401(k) and other defined contribution plans, but those issues are much easier than sorting out defined benefit plans — the typical pensions that some companies and most governments still use. The time value of money, plan rules, retirement age rules, and many other factors go into developing a true value for a defined benefit plan during a divorce settlement. Author Timothy C. Voit unwinds the tangled strings of these factors and shows in plain language how to approach the tough question of valuing a defined benefit plan during an emotional time. |
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