Corporate Tax Updates

IRS Suspends Tax Refunds and Tax Court Closes during Government Shutdown

By Dennis G. Koch / October 5, 2013

In yet another administrative move designed to make the government’s partial shutdown as painful as possible for ordinary citizens, The Internal Revenue Service has temporarily stopped sending out tax refunds. Tax payments, however, continue to be due on a timely basis. The Tax Court has also suspended operations for the time being. “Tax refunds will…

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Corporate/Individual Tax – S-Corp Distribution Held to be Wages

By Dennis G. Koch / August 9, 2013

Distributions from S corporation to its president were wages, not loan repayments Glass Blocks Unlimited, TC Memo 2013-180 The Tax Court has held that distributions from an S corporation to its president/sole shareholder were taxable wages. IRS’s determination that the president was an employee was uncontested, and the S corporation failed to show that any…

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Corporate Tax – Consolidated Return Deemed Filed Despite Omission of Required Forms

By Dennis G. Koch / June 19, 2013

PLR 201324010 In a private letter ruling, IRS has confirmed that a parent corporation and its three subsidiaries filed a consolidated return even though it was later discovered that each sub failed to file a Form 1122 (Authorization and Consent of Subsidiary Corporation to Be Included in a Consolidated Return). Facts. Before Date 1, various…

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