| Overly Aggressive Tax Planning Strategies |
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| The Internal Revenue Service enforces existing tax laws against not only listed tax shelter transactions but also against all tax planning strategies they consider overly aggressive. More... |
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| Partnership Allocation of Foreign Tax Credits |
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| Under the Internal Revenue Code's partnership rules, the partners are generally allowed to decide among themselves how the partnership items will be allocated. The Code provides that a partner's distributive share of income, gain, loss, deduction, or credit shall be determined by the partnership agreement unless there are provisions to the contrary. However, this flexibility is not unlimited. A partner's distributive share in partnership items is determined in accordance with the partner's interest in the partnership only if the allocation under the agreement does not have substantial economic effect on the partner as defined by the Code. Thus, the partnership allocations must either have substantial economic effect or must be in accordance with the partner's interest in the partnership. More... |
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| Rent as a Business Expense |
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| Many businesses pay rent for the use of property. In general, a taxpayer can deduct rent paid as an expense only if the property rented is used in the business and the taxpayer does not have nor will he receive equity in or title to the property. More... |
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| Self-Employed Health Insurance Deduction |
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| For the years 2003 and later, health insurance premiums for the self-employed are generally fully deductible. These premiums include payments made for medical, dental, and qualified long-term care insurance for the self-employed business person, his or her spouse, and dependents. More... |
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| Excessive Compensation of Officers by Tax-exempt Organizations |
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| The Internal Revenue Service is concerned that some charities and private foundations are abusing their tax-exempt status by paying exorbitant compensation to their officers and other insiders. In an attempt to identify and combat this abuse, the IRS has established the Tax Exempt Compensation Enforcement Project, which seeks to gather information from almost 2,000 organizations about their compensation practices and procedures. The enforcement project consists of examinations as well as other contacts. More... |
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