http://www.grantthornton.com Grant Thornton LLP Copyright Grant Thornton LLP. webmaster@GrantThornton.com http://www.grantthornton.com/gtlogo.gif http://www.grantthornton.com <p>The IRS has issued proposed regulations on how the new 2.3 percent excise tax on medical devices will be applied. The tax was added by the 2010 health reform legislation and will be imposed beginning in 2013 on sales of medical devices by the manufacturer, producer or importer of a medical device. The proposed regulations include a safe harbor that identifies certain categories of medical devices that the IRS has determined will be exempted from tax under a retail exemption.</p> Wed, 08 Feb 2012 <p>In this issue...Court of Federal Claims rules work product privilege waived by penalty defense...Senators push IRS to curb mutual fund indirect investments in commodities...IRS determines treatment of settlement proceeds on manufacturer’s breach...Tax Court rules price allocation binds taxpayer, disallows cost segregation...and more.</p> Tue, 07 Feb 2012 <p><b>Date: Thursday, March 29, 2012 &#160;&#160;Time: 8 a.m. - noon Central &#160;&#160;CPE: 3.0 credits</b></p> <p>Increased regulatory scrutiny from the FASB, the Treasury, the SEC and the PCAOB, coupled with the steady erosion of attorney-client privilege and accountant-client privilege, has led to the most challenging tax accounting environment in history. This focus on tax accounting risk is happening at a time when technical skills are at an all time low.</p> <p>This half-day seminar ... Fri, 03 Feb 2012 <p><b>Date: Thursday, March 15, 2012 &#160;&#160;Time: 8 a.m. - noon Eastern &#160;&#160;CPE: 3.0 credits</b></p> <p>Increased regulatory scrutiny from the FASB, the Treasury, the SEC and the PCAOB, coupled with the steady erosion of attorney-client privilege and accountant-client privilege, has led to the most challenging tax accounting environment in history. This focus on tax accounting risk is happening at a time when technical skills are at an all time low.</p> <p>This half-day seminar ... Fri, 03 Feb 2012 <p><b>Date: Tuesday, March 27, 2012 &#160;&#160;Time: 8 a.m. - noon Pacific &#160;&#160;CPE: 3.0 credits</b></p> <p>Increased regulatory scrutiny from the FASB, the Treasury, the SEC and the PCAOB, coupled with the steady erosion of attorney-client privilege and accountant-client privilege, has led to the most challenging tax accounting environment in history. This focus on tax accounting risk is happening at a time when technical skills are at an all time low.</p> <p>This half-day seminar ... Fri, 03 Feb 2012 <p><b>Date: Tuesday, March 13, 2012 &#160;&#160;Time: 8 a.m. - noon Eastern &#160;&#160;CPE: 3.0 credits</b></p> <p>Increased regulatory scrutiny from the FASB, the Treasury, the SEC and the PCAOB, coupled with the steady erosion of attorney-client privilege and accountant-client privilege, has led to the most challenging tax accounting environment in history. This focus on tax accounting risk is happening at a time when technical skills are at an all time low.</p> <p>This half-day seminar ... Mon, 30 Jan 2012 <p>The president this week expanded his tax platform by outlining a series of new policy positions, including new tax reform proposals to impose minimum taxes on the offshore earnings of multinationals and individuals with more than $1 million in income.</p> Thu, 26 Jan 2012 <p>The Washington Department of Revenue Appeals Division has determined that an out-of-state mail order retailer had substantial nexus and was subject to the Washington business and occupation (B&#38;O) tax and sales tax, based on the activities of an affiliated corporation operating retail stores in the state. The affiliated corporation’s in-state activities that subjected the out-of-state retailer to the B&#38;O tax and sales tax included free distribution of the retailer’s catalogs, provision of limited assistance to the out-of-state retailer’s customers regarding returns and sales of gift cards that could be redeemed for merchandise in the retailer’s catalogs.</p> Mon, 23 Jan 2012 <p>In this issue...IRS rules damages received are nontaxable return of capital...IRS issues guidance on reporting cost of group health coverage on Form W-2...Reporting required within 45 days of organizational actions affecting basis in 2012 and later...IRS says any reasonable method may be used to determine home interest deduction...and more.</p> Mon, 23 Jan 2012 <p>On Oct. 10, 2011, representatives of the California Department of Housing and Community Development (HCD) announced that the city of Anaheim, Calif., has received its final Enterprise Zone designation effective Feb. 1, 2012. The designation was made in a move to increase business development in the area and to assist in job creation.</p> Mon, 23 Jan 2012 <p>As states continue to address budget deficits, both taxpayers and state departments of revenue face new laws and the challenges of interpreting them and applying them to real world business transactions. Paul Bogdanski, senior manager in the Chicago State and Local Tax practice, recently sat down with Dan Hall, the head of Audit Bureau at the Illinois Department of Revenue, to discuss these issues. The following is a compilation of those questions and Dan’s responses.</p> Thu, 19 Jan 2012 <p><b>Date:</b> Friday, Feb. 10, 2012 <b>Time:</b> 3:00-4:00 p.m. Eastern <b>CPE:</b> 1 credit</p> <p><br /> The start of the new year brings a fresh round of uncertainty to the tax code:</p> <ul> <li>The tax “extenders” such as the research credit expired last December.</li> <li>The payroll tax credit is expiring in February.</li> <li>The 2001 and 2003 tax cuts are scheduled to expire at the end of the year.</li> </ul> <p>Our one-hour webcast will cover the outlook for these ... Fri, 13 Jan 2012 <p>This webcast will provide you with an overview of the recently released tangible property regulations that provide guidance on how to treat amounts paid to acquire, produce and improve tangible property. It will focus on the changes from the 2008 version of the proposed regulations and how those changes affect current tax positions, with an emphasis on rules relating to repairs and dispositions of property.</p> <p><b>Featured presenters:</b></p> <ul> <li><b>Dave Auclair,</b> National ... Fri, 13 Jan 2012 <p>Recently adopted technical corrections legislation retroactively conforms Michigan’s treatment of a disregarded entity (DRE) under the MBT and CIT to the federal income tax treatment of a DRE. This potentially requires the DRE’s income and apportionment factors to be included in the income and apportionment factors of the DRE’s parent instead of being separately reported by the DRE, though some exceptions to the general rule have been created.</p> Fri, 13 Jan 2012 <p>The Michigan Department of Treasury has recently mailed notices to businesses potentially holding unclaimed property in Michigan.These notices summarize the unclaimed property reporting requirement in Michigan and include a voluntary disclosure agreement form for those businesses that have not complied with the state’s unclaimed property laws.</p> Fri, 13 Jan 2012 <p>In this issue...IRS releases long-awaited "repair" regulations...IRS requires new payroll tax withholding rate to be applied no later than Jan. 31...IRS rules that installment gain qualifies for built-in-gain exception...IRS updates user fees and annual procedures for letter rulings and advice...and more.</p> Tue, 10 Jan 2012 <p>The IRS on Jan. 6 posted the form and instructions for corporations to report 2011 “organizational actions” affecting the basis of their stock.</p> Tue, 10 Jan 2012 <p>The Missouri Supreme Court has clarified the applicability of the lower sales tax rate for food by defining the statutory language “food prepared . . . for immediate consumption on or off the premises.” The court said that includes all food that is eaten at the place of preparation and purchase, while traveling away from the place of preparation and purchase, and immediately upon arrival at another location without any further preparation.</p> Fri, 06 Jan 2012 <p>The Massachusetts Appellate Tax Board has held that the Massachusetts commissioner of revenue properly disallowed a taxpayer’s interest deduction arising from intercompany transfers associated with the taxpayer's cash-management system.</p> Thu, 05 Jan 2012 <p>On Dec. 16, Illinois Governor Pat Quinn signed tax reform legislation that partially restores the net operating loss (NOL) deduction, extends certain expiring credits and sales tax exemptions for five additional years, contains tax incentives designed to encourage specific major businesses to remain in Illinois and provides for the creation of the Independent Tax Tribunal Board.</p> Thu, 05 Jan 2012 <p>On Dec. 23, new regulations were issued on when costs are required to be capitalized to tangible property or may be deducted as repair and maintenance costs. This <i>Tax Flash</i> provides a summary of some of the highlights of the regulations.</p> Tue, 27 Dec 2011 <p>The president on Dec. 23 signed legislation (H.R. 3765) that extends the individual payroll tax holiday for two months.</p> Tue, 27 Dec 2011 <p>Taxpayers who elected to file a consolidated Kentucky corporation income tax return in 2004 should be aware that such election will expire at the end of their 2011 tax year. The election, which was available only for tax periods ending before Jan. 1, 2005, is binding for an eight-year period. When this election expires, taxpayers must begin filing a nexus consolidated Kentucky corporation income tax return.</p> Thu, 22 Dec 2011 <p>Earlier this year, North Carolina enacted legislation that clarified the procedures the Secretary of the Department of Revenue must follow to adjust a corporation’s tax return or require corporations to file on a combined basis.The department of Revenue has issued a directive that further explains the Secretary’s authority to determine a corporation’s net income by adjusting the corporation’s intercompany transactions or requiring the corporation to file a combined income tax return.</p> Wed, 21 Dec 2011 <p>The House and Senate reached a virtual stalemate on Dec. 20 over an extension of an individual payroll tax holiday that will expire at the end of the year without congressional action.</p> Tue, 20 Dec 2011 <p>In this issue...IRS proposes regulations on foreign corporation method and tax year changes...Final regulations extend FICA and FUTA exceptions to disregarded entities...Tax Court rules interest expense was deductible on federal estate tax return...and more.</p> Tue, 15 Nov 2011 <p>Our 2011 guide discusses recent and upcoming tax law and provides an overview of tax planning strategies for you to consider. Topics include tax law changes, individual tax rates and rules, alternative minimum tax, investment income, executive compensation, business ownership, charitable giving, education savings, retirement savings and estate planning.</p> Thu, 03 Nov 2011 <p>In this issue...Social Security taxable wage base increases in 2012...Fourth Circuit upholds decision disallowing retroactive accounting method change...Tax Court rules payments for researching tax planning are not research expenses...House passes bill to repeal government contractor withholding provisions...and more.</p> Mon, 31 Oct 2011 <p>In this month's bulletin...Supreme Court Decision in CIGNA v. Amara Creates Dangers for Plan Sponsors... Escaping Section 409A by Avoiding Discounted Stock Options</p> Wed, 26 Oct 2011 <p>In this issue... IRS provides safe harbor for taxpayers using the nonaccrual experience method... Three major municipalities offer local tax amnesty programs... Lawmakers consider breaking jobs bill into smaller pieces after Senate failure... Congress continues to grapple with a potential repatriation holiday... and more.</p> Mon, 17 Oct 2011 <p>In this issue... IRS rules on the treatment of expenses in bankruptcy reorganization... IRS determines interest rate swap income not included in REIT’s gross income... Top Senate tax writers reintroduce R&#38;D credit legislation... and more.</p> Sun, 02 Oct 2011 <p>In this issue... IRS proposes regulations on health insurance premium tax credit... IRS provides guidance on estate tax election for 2010 decedents... IRS issues temporary regulations on pharmaceutical industry fee... a federal sales tax nexus legislation is introduced again... President promises new budget and economic plan in September... and more.</p> Tue, 23 Aug 2011 <p>In this issue... Tax Court determines recovery periods for wireless telecommunications assets... IRS concludes that bank enterprise awards are not non-shareholder contributions... Tax Court determines trust language does not provide power of appointment... IRS’s construction of decedent’s will leads to reduced marital deduction... IRS releases final foreign tax credit generator regulations... LB&#38;I issues directive on economic substance doctrine... Lawmakers reach stalemate over revenue in debt limit fight... and more.</p> Mon, 25 Jul 2011 <p>In this issue…IRS releases long-awaited 2009 Form 8955-SSA…IRS offers new procedures regarding tax-free exchanges of annuity contracts…New Jersey reemphasizes differences between its statute and IRC Section 482…Key senators agree on ethanol repeal as part of debt discussions…and more.</p> Mon, 11 Jul 2011 <p>For public companies hoping to deduct all of their incentive compensation, it's time to review performance-based compensation arrangements to determine if the plans have met all of the requirements.</p> Thu, 16 Jun 2011