Tax Management memorandum

Tax Management memorandum contents: Page 3 - Through a glass darkly: Sophy, Voss and statutory interpretation of the Internal Revenue Code by Anson H. Asbury. Page 15 - Corporation formed to promote development of medical device industry denied tax-exempt status due to failure to meet operational test. Page 16 - Claim for refund attributable to NOL carryback timely even though indirectly attributable to later election to deduct foreign taxes. Page 17 - Chief Counsel's office advises on appropriate direction to give expert evaluating reasonableness of compensation under section 162 and section 174. Page 18 - IRS advises on reasonable cause for purpose of abatement of first tier excise tax on foundation for taxable expenditure. Vol. 57(2). Page 23 - Altera: rattling the IRS's sense of comfort in its rulemaking process by Susan E. Seabrook and Caroline C. Setliffe. Page 38 - Chief Council's office addresses tax withholding and reporting treatment of multiple buy-ins to poker tournament. Page 40 - Chief Council's office advises that refund claim relating to foreign tax credits was untimely. Page 41 - IRS advises that overpayment interest is allowed on overpayment used to satisfy underpayment only until due date of underpayment year return. Vol. 57(3). Page 47 - New era for employee benefits practitioners: IRS announces the end of the qualified plan S Determination Letter Program by Barry L. Klein. Page 59 - Contributions attributable to unused vacation time to 401(k) plan and health reimbursement accounts will not disqualify 401(k) plan and will be excludible from income. Page 60 - S corporation cannot claim an ordinary deduction under section 165(g)(3) for its worthless QSub stock. Page 61 - Tax-exempt status of 501(c)(3) organization revoked for failure to meet operational test. Page 62 - Payment by corporation to foreign government was nondectuctible fine or similar penalty under section 162(f). Vol. 57(4). Page 67 - Are employee life insurance benefit plans worth the risk of litigation after CIGNA Corp. v. Amara? by Robert M. Wood. Page 80 - Judicial barring of collection is not an identifiable event for the purpose of discharge of indebtedness reporting under section 6050P. Page 81 - Employee contributions to government plan are subject to income and withholding taxes as time of contribution. Page 82 - Patronage dividends excluded from gross income for purposes of REIT gross income tests. Vol. 57(5). Page 87 - Proposed anti-fee waiver regulations: a blueprint for waiving fees? by Bradley T. Borden, Douglas Longhofer and Lena E. Smith. Page 104 - Income of section 501(c)(6) association and related insurance pool trust excludible from gross income under section 115. Page 105 - IRS approves educational grant-making procedures for private foundation. Page 106 - None of a CFC's obligations qualifies for the short-term obligation exception in Notice 88-108. Page 107 - Extension of time to elect portability may be granted to decedent's estate. Vol. 57(6). Page 111 - Redeeming a partner with the partnership's note by Grace Kim and Raquel A. Saunders. Page 127 - Partner guarantee of partnership debt treated as recourse financing for purposes of basis allocation under section 752. Page 128 - IRS revokes homeowners association's tax-exempt status. Page 129 - Entity denied tax-exempt status due to failure to meet operational test. Page 130 - Section 183 definition of held for productive use in a trade or business does not apply for purposes of the like-kind exchange provisions of section 1031. Vol. 57(7). Page 135 - Some ado about a nothing: final F reorganization regulations by Michael Kliegman and Nancy Chen. Page 160 - IRS rules royalties were for television programming, not for motion picture films. Page 161 - IRS can adjust COD income differed under section 108(I) in certain factual situations. Page 162 - Chief Counsel's office addresses air transportation excise tax issues arising from frequent flyer mile programs. Page 163 - Exchanged airplane treated as one property for section 1031 purposes. Vol. 57(8) Page 167 - Due regard for disregarded entities by Cassady V. Brewer. Page 180 - Interests in disregarded entity and limited partnership considered obligations in registered form if transferable only under procedures of temp. reg. section 5f.103-1(c)(1). Page 181 - Transfer of 40% of a private foundation's assets to newly created private foundations does not trigger section 507(c) termination tax. Page 182 - Sale of REIT's assets pursuant to plan of liquidation does not constitute prohibited transactions pursuant to section 857(b)(6). Page 183 - Noncharitable grantor trust with no ascertainable beneficiaries treated as a trust for federal tax purposes. Vol. 57(9). Page 187 - Altera Corp. v. Commissioner: keeping the IRS at arm's length under section 482 and the Administrative Procedure Act by David B. Blair and David J. Fischer. Page 201 - IRS rules on calculation of aggregate gross receipts from intercompany transactions for purposes of section 165(g)(3)(B) worthless stock deduction. Page 202 - Cemetery company's donation of land and church building to a charitable organization doe not impact company's tax exempt status under section 501(c)(13). Page 202 - Conversion of taxpayer property constitutes taking for section 1033 purposes. Page 203 - Chief Counsel's office advises that portions of section 905(c) do not apply to a cash basis taxpayer. Contents continued................