- Proposed regulations under section 754 remove a signature requirement for partnerships and their partners in making a valid election to adjust the basis of partnership property. The proposed regulations offer a process beyond the “9100 relief” measures, and taxpayers may rely on the proposed regulations for periods prior to the regulations being finalized.
- An IRS “practice unit” sets out guidance concerning the penalty regime when there are certain failures to file Form 5471, Information Return of U.S. Persons With Respect to Certain Foreign Corporations.
- Two revenue procedures—Rev. Proc. 2017-56 and Rev. Proc. 2017-57—relate to the automatic approval process for changes to the method used to determine the minimum funding standard for defined benefit plans, and procedures for requesting approval for a change in funding method.
- The U.S. Tax Court held that after IRS revocation of an entity’s tax-exempt status, the starting date for computing interest on the ensuing corporate income tax deficiency is determined by reference to the date when the corporate income tax return would have been due—not the date when the IRS issued the final determination letter revoking the tax-exempt status.
- The U.S. Tax Court held in a “reviewed opinion” that a facade easement failed to satisfy the rules for a charitable conservation contribution under section 170(h) because the easement deed did not meet the “in perpetuity” requirements and a “savings clause” in the deed was invalid to retroactively reform the deed to comply with the in perpetuity rules.
- The California Franchise Tax Board issued a ruling concluding that an acquiring company was deemed to have made a water's-edge election for combined reporting purposes because: (1) goodwill is a “business asset” for purposes of the total business assets test of the water’s-edge measures; (2) the goodwill at issue was integral to the target company’s business, and was attributed to that company; and (3) the value of the target company’s total business assets, including goodwill, was greater than that of the acquiring company when the new unitary affiliate group was established.
- The Colorado Department of Revenue issued a general information letter concluding that the taxpayer’s sale of information (information collected from government entities, and then sold and delivered electronically to customers) was subject to sales tax as the sale of tangible personal property.
- South Dakota filed a 70-page petition for a writ of certiorari with the U.S. Supreme Court, asking the Court to reconsider and overturn the Quill physical presence rule.
- A Washington State tax hearing officer addressed various issues concerning retailing arrangements and whether payments for the use of retail space were subject to the state’s B&O tax regime (in this situation, a third-party shoe retailer did not have exclusive control over the retail space and, thus, was not liable for B&O tax on the annual license fees).
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