At the start of the chapter or section, participants should identify the following major topics for study:

* Federal income tax rates and inflation adjusted provisions
* Phased in legislative highlights from tax Acts prior to 2007
* Earned income credit, Social Security & self-employment base
* Standard deduction, personal exemption & educational credits
* Alternative Minimum Tax
* Health Savings Accounts & long-term care
* Charitable contributions
* Tax Increase Prevention and Reconciliation Act
* Pension Protection Act
* Tax Relief and Health Care Act

1. Compare individual and corporate income tax rates as they relate to retained income, identify tax-related legislation that has expired, explain the increasing impact of the alternative minimum tax and its limited exemptions, decipher the estate and GST exemption and the credit amount for state death taxes, name the Social Security, Medicare and self-employment earnings bases, and identify the FUTA tax deposit requirements.
2. Identify the standard deduction for all taxpayers for the current year, explain the reasoning for the standard deduction increase for married couples, clarify the dependent limit, explain the election to report on a parent’s return, and identify the refundable child credit and the adoption credit.
3. Describe the changes to the earned income credit and to exemptions and their importance to lower income taxpayers, and figure the minimum amount of net itemized deductions.
4. Figure standard mileage rates for automobiles that are used for different purposes, describe the qualified transportation fringes and passenger automobile depreciation limits, figure business-related deductible expenses for meals away from home, and explain the credits that are and were previously available for taxpayers placing specified vehicles in service.
5. Explain how self-employed individuals can deduct health insurance, describe the benefits and qualifications of medical savings accounts and health savings accounts and their importance for client healthcare planning, describe the long-term care and accelerated death benefits exclusion, and describe the changes made by the Health Care Act of 2006.
6. Delineate the legislative changes that affect qualified plans, designated Roth contributions, traditional IRAs, simplified employee pensions (SEPs), SEP-IRAs, SIMPLE plans, and nonqualified deferred compensation plans.
7. Explain the recent legislation that relates to small businesses, including bonus depreciation, the §179 small business expensing deduction, §199 start-up costs and organizational costs, leasehold improvements and restaurant property, the §1202 exclusion, and timber reforestation costs.
8. Summarize the ways that recent legislation affects the various education-related credits, deductions and exclusions, charitable contributions, domestic production activities, income averaging for farmers and fishermen, the expiration of the research credit, the work opportunity tax credit, the welfare-to-work tax credit, employment taxes on employee stock options, the nanny tax threshold, and the reinvestment of foreign earnings deduction.
9. Interpret the changes that were made by recent legislation, including the Small Business and Work Opportunity Act, that impacts S corporations.
10. List several major retirement plan changes provided by the Pension Protection Act of 2006.
11. Outline the changes that were made by the Tax Relief and Health Care Act of 2006, the Small Business and Work Opportunity Tax Act, the Mortgage Debt Relief Act of 2007, the Technical Corrections Act of 2007 and the Economic Stimulus Package Act of 2008, and describe the impact these Acts have on tax planning.

At the start of the chapter or section, participants should identify the following major topics for study:

* Head of household status (§2) & dependent care (§21)
* Energy efficiency provisions (§25C & §30B)
* Earned income credit tools and developments (§32)
* Definition of individual income (§61)
* Issues regarding divorce settlements and alimony (§71)
* New restrictions on private annuity income (§72)
* Personal injury award developments (§104)
* Cancellation of indebtedness income exceptions (§108)
* Home sale exclusion rule (§121)
* Charitable contribution limitations (§170)
* Individual retirement plan developments (§401-§408)
* Like kind exchange rules (§1031)
* Innocent spouse provisions (§6015)

1. Explain head of household status and how it relates to single parents, identify the key elements of dependent care credit and what will be required to obtain its benefits, summarize the new energy-efficient provisions and their impact on home improvements and automobile purchases, define qualifying child under §32, use the IRS website’s AMT calculator, list at least four types of non-wage income that can result in income taxation and penalties, and explain how community property wages can satisfy tax debt.
2. Summarize several tax sensitive areas affecting divorce settlements and alimony and their effect on divorce taxation planning.
3. Decipher the new proposed restrictions on private annuities and their tendency to diminish this key tax-planning tool.
4. Clarify the treatment of disability pension and benefits, settlement proceeds, workmen’s compensation, non-personal injury awards, payments from a health reimbursement account and real property tax rebates, describe the rules and exceptions for insolvency and home sales under §121, and explain the regulations on children of divorced or separated parents.
5. Differentiate when mortgage interest may and may not be deducted, summarize the sales tax break issue, define and list qualifications of a professional gambler, and determine whether a loan or advance is a business bad debt.
6. Identify the importance of charitable donation restrictions and their impact on substantiation.
7. Name instances when a taxpayer can take a medical deduction, define active participation with respect to IRAs and identify when a deduction is allowed, and clarify the procedure and what is required to capitalize interest.
8. List reasons to make necessary changes to retirement plans because of recent legislative and case law developments, clarify the nonspousal rollover rules, delineate choices taxpayers have for rollovers of retirement funds, describe conditions where an extension or waiver of the rollover period is allowed, decipher the rules for qualified domestic relations orders (QDROs), define real estate professional and explain the passive loss rules, describe the rules pertaining to changing accounting methods on amended returns, and treat income in respect of a decedent (IRD) appropriately.
9. Describe the loss sale rule and when to apply it, summarize recent developments in the like-kind exchange area particularly regarding fractional interests, list the qualifications of long-term capital gains, delineate the prohibited transactions of an IRA, decipher the language contained in §6015 and apply innocent spouse provisions permitting spouses to avoid joint and several liability, and describe the reporting requirements for real estate reporting persons.
10. List and define the Dirty Dozen of 2006 and 2007, describe how the SSA applies the SSA earnings test, identify how Medicaid Planning has tightened, summarize the problems associated with credit counseling agencies and how they might be resolved, and outline how tax filers share the tax burden.
11. Identify how Form 706 has been revised, summarize the guidelines that are provided for family limited partnerships (FLPs) and family limited liability companies (FLLCs), describe the impact of joint AMTs, identify at least four frivolous positions to avoid, and name the year the Internet access tax moratorium expires.

At the start of the chapter or section, participants should identify the following major areas and developments for study:

* Definition of business income (§61)
* Restricted property rules (§83)
* Fringe Benefit Audit Technique Guide (§162)
* Medical coverage for employed spouse (§162)
* Cost Segregation Audit Techniques Guide (§162)
* Correcting depreciation on sold assets (§168)
* Audit issues for production activities deduction (§199)
* Guidance on nonqualified deferred compensation rules (§409A)
* Capital gain on sale of raw land (§1221)
* Inadvertent S corporation terminations (§1361)
* Regulations on 10 year built-in gains period (§1374)
* Self-employment tax issues (§1402)
* Employee vs. independent contractor (§3121)
* Responsible person liability (§6672)

1. Identify the qualifications for and requirements of the credit for contractors on energy efficient homes under §45L, outline the inclusive definition of income under §61 and how it relates to business taxation, differentiate between an accountable plan and a nonaccountable plan for M&IE purposes, and identify the special rules for M&IE.
2. Clarify the key elements of §83 and what requirements the code imposes on stock options and associated elections, explain how to treat disability benefits and payments made for coverage under a self-funded health plan, identify the correct way to obtain medical coverage for an employed spouse, and describe how to report construction allowance received from a lessor.
3. Explain how a plan can qualify as a cafeteria plan, define terminology used in §125, including cash, employee, and experience gains, and summarize how Smartcards, debit cards, and cell phones can be used for fringe benefits.
4. Outline qualifications for deducting certain trade or business expenses including vehicle leases, travel expenses, health insurance, reimbursed expenses, daycare, education and separate activities, and explain the proposed regulations for the capitalization of tangible assets.
5. Explain why simultaneous deductions cannot be taken for a single casualty, list key variables in determining whether to correct depreciation on sold assets and its effect on audit potential, and keep the appropriate records for depreciation.
6. Enumerate the requirements to take a §179 deduction, compute the necessary calculations for figuring the §179 deduction, and clarify the requirements for taking a deduction for expenses that an individual assumes in owning and operating a farm.
7. Detail the technical corrections that Congress made to the Gulf Opportunity Zone Act of 2005, list the methods that may be used to calculate W–2 wages, describe the audit issues for production activities deductions under §199, summarize the substantiation rules for payment card reimbursements under FSAs and HRAs, identify when certain sales are subject or exempt from the UNICAP rules, determine and account for 2007 business-related per diem rates and the substantiation requirements for M&IE, define specified individuals, and identify when estimating expenses is allowable.
8. Allocate business expenses from personal expenses per §280A, account for an acquisition of a target stock by a parent that merges with the target, create a separate entity to divide assets, define ownership change and family member under §382, and enumerate the Roth Steel factors and describe how they are used to determine whether shareholder advances are equity or debt.
9. Outline the requirements of qualified automatic contribution arrangements and for taking pre-retirement plan distributions, identify when pension penalties apply, and describe the highlights of the regulations on medical or accident insurance payments and the Roth 401(k) regulations.
10. Define the nonqualified deferred compensation rules under §409A and prevent the imposition of new penalties, and restore retirement benefits appropriately.
11. Define personal service corporation, and avoid the classification of a PSC.
12. Account for settlement proceeds for unpaid royalties, determine when to account for certain items under the accrual accounting method, clarify the abuses of tax-exempt organizations, and identify when a certain action will adversely affect the tax-exempt status of an organization.
13. Explain conditions that are disregarded when determining whether a partner should pay tax on his appropriate share of partnership income, account for a property transfer used to satisfy a guaranteed payment, identify a condition when the IRS can impose a change for a year that was closed by the statute of limitations, and describe the effect of liabilities and SMLLC basis rules.
14. Account for qualified small business stock sales, determine the transferee and transferor in a transfer, list items that qualify as a governing provision, file Form 2552 or Form 5223 with an S corporation return, and distinguish between circular loans and an effective generation of basis.
15. Identify the limit on open account debts and explain the purpose of the new regulations, and describe the treatment of C corporations that elect the S corporation status, and outline the tax circumstances of Conservation Reserve Program rentals.
16. Differentiate employees from independent contractors and make that determination for tax purposes.
17. Explain the tax treatment of disregarded entities under §3401, identify when to send W-4s to the IRS, and list prohibited transactions of §4975 for businesses.
18. Summarize the tax consequences of hiring a payroll service, describe the changes that were made to corporate estimated tax rules under the final regulations, define responsible person under §6672, ascertain whether an agreement constitutes a partnership agreement, and describe the tax consequences of check-the-box regulations.
19. Name four specific modifications that the GO Zone Act made to the rules regarding the treatment of family members as one shareholder, explain what H.R. 4019 prohibits states from taxing, identify the changes that were made to Form 941 instructions and to Form 941(c), enumerate the highlights of the latest S corporation NRP study, apply the advice offered by the IRS for filing K-1s, identify the amounts of income being underreported by sole proprietors, list the increases in key retirement plan limits, and explain the updated version of the IRS fringe benefit publication.

CHAPTER 1 - Rates, Tables, Statutory Amounts & Highlights 

Standard Deduction 

Dependent Limit

Election to Report on Parent’s Return 

Phaseout of Exemptions - 2% Haircut

Overall Limitation on Itemized Deductions - 3% Haircut

Earned Income Credit - §32 

Social Security & Self-Employment Earnings Base 

Cents-Per-Mile Rates - Standard Mileage Rate 

Qualified Transportation Fringes 

Passenger Automobile Depreciation Limits 

Expensing Deduction - §179 

Self-Employed Health Insurance Deduction 

Corporate Income Tax Rates 

Recent Legislative Highlights 

Standard Deduction Increase for Married Persons 

15% Tax Bracket Will Expand for Married Persons Filing Jointly 

Personal Exemption Amount Increases 

Elimination of Limit on Itemized Deductions - 3% Haircut

Elimination of Phaseout of Personal Exemptions - 2% Haircut

Hope & Lifetime Learning Credits - §25A  

Tuition & Fees Deduction - Expired 

Education Savings Bond Exclusion - §135 

State and Local General Sales Taxes - Expired 

Alternative Minimum Tax 

Hours of Service Meal Limits 

Archer Medical Savings Accounts - Suspended? 

Health Savings Accounts (HSAs)

Old Medical Savings Accounts 

Benefits 

Qualifications 

High Deductible Health Plan (HDHP)

Limits for HDHP 

Amount of Contribution 

Special Rules for Married Couples 

Establishing an HSA  

Rollovers 

Distributions 

Qualified Medical Expenses 

Insurance Premiums 

Record keeping 

Health Care Act of 2006 Changes 

Long-Term Care & Accelerated Death Benefits Exclusion 

Long-term Care Premiums 

Refundable Child Credit

Adoption 

Student Loan Interest Deduction 

Interest Exclusion for Higher Education 

Insubstantial Benefit Charitable Contribution Limitation 

Qualified Plans 

Defined Benefit Plan Limits 

Defined Contribution Plan Limits 

Elective Deferrals Treated as Roth Contributions 

Modified AGI Limit for Traditional IRAs 

Charitable Transfers for IRA Owners - Expired 

Increase in Limits on Elective Deferrals under a SEP-IRA  

Simplified Employee Pensions (SEPs)

Additional Elective Deferrals under a SEP-IRA for Persons 50 & Older

Increase In Limit on Salary Reduction Contributions under a SIMPLE 

Additional Salary Reduction Contributions to SIMPLE IRAs for Persons 50 & Older

Increased Estate & GST Exemption 

Scheduled Repeal of Estate & GST Taxes 

Reduction of Credit for State Death Taxes 

Social Security and Medicare Taxes 

Self-employment Tax 

Bonus Depreciation for 2008 

Qualifying Property 

Coordination with §179 

Expensing Under §179 

§179 Extended Through 2009 

§179 on SUVs Under 14,000 GVW limited to $25,000 

Expensing of Environmental Remediation Costs Expired 

Standard Mileage Rate 

Alternative Motor Vehicles - §30B  

Electric Vehicles Credit - Expired 

Start-Up Costs & Organizational Costs - §195 

Qualifying Costs 

Purchasing An Active Trade Or Business 

Leasehold Improvements & Restaurant Property - Expired 

Qualified Restaurant Property 

Leasehold Improvement Recovery 

Qualified Improvement Property 

Deduction for Domestic Production Activities 

Qualified Production Activities Income 

Passthrough Entities 

Limits On The Deduction 

Alternative Minimum Tax 

Income Averaging for Farmers & Fishermen 

Research Credit - Expired 

Health Care Act of 2006 Changes 

Work Opportunity Tax Credit

Welfare-to-Work Tax Credit

Health Care Act of 2006 Changes 

Small Business and Work Opportunity Tax Act of 2007 

Charitable Contributions of Computer Equipment - Expired 

Treatment of Nonqualified Deferred Compensation Plans - §409A  

Section 1202 Exclusion Increased 

Timber

Expensing Reforestation Costs 

Capital Gain on Outright Sales of Timber

S Corporations 

Number of Shareholders 

Family Members Treated As One Shareholder

Transfer of Suspended Losses 

Electing Small Business Trusts 

Grandfathered IRAs Allowed to Hold Bank S Stock 

Monetary Donations 

Charitable Contributions of Clothing and Household Items 

Charitable Contribution of Patents 

Employment Taxes on Employee Stock Options 

Increase to FUTA Tax Deposit Requirement

Nanny Tax Threshold 

Reinvest Foreign Earnings Deduction 

Tax Increase Prevention and Reconciliation Act (H.R. 4297)

Tax Relief or Extensions 

Pension Protection Act of 2006 (H.R. 4)

Permanent EGTRRA Pension & IRA Provisions 

Saver's Credit Made Permanent - §25B  

Direct Deposit Of Tax Refunds In An IRA  

Rollovers By Nonspouse Beneficiaries - §402 

Direct Rollovers From Retirement Plans to Roth IRAs 

Automatic Enrollment

Investment Advice 

Investment in Employer Stock 

Combined Defined Benefit and §401(k) Plans 

Hardship Withdrawals 

Section 529 College Savings Plans 

Charitable Giving Provisions 

Charitable Distributions from an IRA  

Conservation Easements 

Clothing & Household Goods 

Cash Contributions 

Contributions of Fractional Interests of Tangible Personal Property 

The Tax Relief and Health Care Act of 2006 - "Extender" Bill

Extended Provisions 

Health Savings Accounts (HSA) Provisions 

Other Provisions 

Small Business and Work Opportunity Tax Act of 2007 

Tax Increase Prevention Act of 2007 (H.R. 3996)

Mortgage Debt Relief Act of 2007 (H.R. 3648)

Technical Corrections Act Of 2007 (H.R. 4839)

Economic Stimulus Package Act of 2008 (H.R. 5140)

Rebate Formula 

Rebate Phaseouts 

Child Payments 

Increased §179 Expensing 

Temporary Bonus Depreciation 

Qualifying Property 

Coordination with §179 

CHAPTER 2 - Individual Matters 

HOH Status When Children's Residence Is Evenly Split - §2 

Child & Dependent Care Expense Guidance - §21 

Guidance on Lean Burn & Hybrid Vehicles - §30B  

Impact of AMT on Hybrid Vehicle Credit Clarified - §30B  

Disabled Aunt Not Qualifying Child for EITC - §32 

IRS Online EITC Toolkit Updated - §32 

AMT Calculator Website Tool Updated - §56 

AMT & Hybrid Vehicle Credit - §56 

Dollar Limits Apply to AMT Loss From ISO - §56 

AMT Calculation Includes Qualified Dividends & LTCGs - §56 

AMT Patch for 2007 - §56 

Credit Card Cancellation Creates COD Income - §61 

Loan Assistance Award Taxable - §61 

Gift Bags At Academy Awards are Taxable - §61 

Rebated Commissions Nontaxable Return of Basis - §61 

IRS Releases FAQs on Foreclosure - §61 

Community Property Wages Allowed to Satisfy Tax Debt - §66 

Non-Compliant Payment Held Alimony - §71 

Alimony Deduction Disallowed for Mortgage Payments - §71 

California Law Requires Payments to Terminate - §71 

Temporary Order Payments Not Alimony - §71 

Early Payment Unable to Qualify as Alimony - §71 

Decree Modification Denies Alimony Deduction - §71 

Mischaracterized Settlement Payments Not Alimony - §71 

Voluntary Payments May Qualify as Alimony? - §71 

Payments That Survive Ex-Spouse's Death Deny Alimony - §71 

Pension Substitute Payments Taxable - §71 

Payments Did Not Cease at Death - §71 

Informal Alimony Payments Not Deductible - §71 

Unpaid Plan Loans Resulted in Taxable Income - §72 

Computer Expenses Do Not Avoid 10% Penalty - §72 

Regs Restrict Private Annuity Income Tax Benefits - §72 

Penalty Due on Retirement Plan Distributions - §72 

Educational Expenses Must Be Paid in Same Year - §72 

Levy on IRA Not Early Withdrawal - §72 

Exception Unavailable For Remediable Condition - §72  146

Penalty For Distribution Not Redeposited Within 60 Days - §72 

Disability Pension Includible in Income - §104 

Disability Benefits Paid Under State Law Not Taxable - §104 

Unallocated Settlement Proceeds Held Income - §104 

Workmen's Compensation Does Not Reduce Taxable Social Security Benefits - §104 

Murphy Decision Reversed - §104 

Improper Exclusion Results in Accuracy Penalty - §104 

Payments from HRA Taxable - §105 

Taxpayer “Living out of Her Car” Deemed Insolvent - §108 

Residence Not Excludible Under Insolvency Exception - §108 

Real Property Tax Rebates - §111 

Rulings Highlight “Unforseen Circumstances” - §121 

Sale Exclusion Also Available to Healthy Co-owners - §121 

Death Threat Treated as “Unforeseen Circumstance” - §121 

Joint Owner Qualified for Reduced Homesale Exclusion - §121 

Large Family Held Unforeseen - §121 

Home Must Be Completely Destroyed for Exclusion - §121 

Qualifying Child Tie-breaker Rule Applies Uniformly - §152 

Noncustodial Parent Denied Exemption - §152 

Regs on Children of Divorced or Separated Parents - §152 

Unsigned Form 8332 Precluded Exemption - §152 

Rules on Qualifying Relatives - §152 

Option to Buy Insufficient for Homeowner Deductions - §163 

No Deduction for Expenses of Another - §163 

Overlooked Sales Tax Break - §164 

Service Releases Sales Tax Calculator - §164 

Taxpayer Held Professional Gambler - §165 

Guarantee Results in Bad Debt Not Theft - §165  185

Loss Deductions Related to Divorce Denied - §165 

Estimated Theft Loss Denied - §165 

Tournament Poker Subject to Gambling Limit - §165 

Gambling as Trade or Business - §165 

CPA's Gambling Not a Trade or Business - §165 

Regs Issued on Loss From Abandoned Securities - §165 

Loss Denied for Judgment Dismissed in Bankruptcy §165 

Lessee Allowed Casualty Deduction for Improvements - §165 

Loan to Son Held Nonbusiness Bad Debt - §166 

Unpaid Advance Held Itemized Deduction - §166 

Vehicle Donations Affected by GO Zone Act - §170 

No Acknowledgment Denies Charitable Contribution - §170 

Direct Charitable Contributions from IRAs Summary - §170 

Guidance on Appraisals for Charitable Contributions - §170 

Substantiation Rules for Payroll Contributions - §170 

Guidance on New Charitable Contribution Rules - §170 

Qualified Conservation Easement Contributions - §170 

Deduction Reduced for Designer Clothing - §170 

Publication Provides Charitable Valuation Insight - §170 

Publication Highlights Charitable Changes - §170 

Rules for Qualified Conservation Contributions - §170 

Deduction Still Denied for Imported Drugs - §213 

Medical Deduction for School Tuition - §213 

Portion of Care Facility Fee Held Medical Deduction - §213 

Self-Prescribed Diagnostic Tests Deductible - §213 

Meal Replacements & Supplements Nondeductible - §213 

Former Employee Held Active Participant; IRA Denied - §219 

Active Participation Denies IRA Deduction - §219 

Extension Allowed to Capitalized Interest - §266 

Carrying Charges for Wrap Accounts - §266 

Options Available for Nonspousal Beneficiaries - §401 

Major Guidance on New Pension Act Distribution Rules - §401 

Nonspouse Beneficiary Rollover - §401 

Nonspousal Rollover Rules Clarified - §402 

Rollover Waiver Denied for Online Error - §402  249

More Choices for Rollovers of Retirement Funds - §402A  

Penalty for Mistake in Rollover of Husband's IRA - §408 

Unclear Website Instructions Justified Waiver - §408 

No IRS Waiver to Help Incompetent Father - §408 

Restorative Payment Eligible for Rollover - §408 

Executor Completes Decedent's Rollover - §408 

Medical & Mental Conditions Extend 60 Day Rollover - §408 

Late Rollover Permitted Where Purchase Disrupted - §408 

IRA Division Treated as Nontaxable Transfer - §408 

IRAs Allowed to Purchase Gold Trust Shares - §408 

Non QDRO Retirement Plan Distributions Taxable - §414 

QDRO Claims of Participant's Children Denied - §414 

Final Reg on Timing & Order Rules for QDROs - §414 

First Wife Gets QDRO Payment - §414 

Family Court Order Not Considered QDRO - §414 

DOL & PBGC Issues Guidance on QDROs - §414 

PAL Recharacterization Rules Validated - §469 

Extra Time For Single Activity” Election - §469 

Qualified Tuition Election Rules - §529 

Poor Records Lose Real Estate Professional Status - §469 

Trust Fiduciaries Must Materially Participate - §469 

Leasing Entity & Lessee Business Single Activity - §469 

Mark-to-Market Denied on Amended Return - §475 

IRA Payable to Trust Treated as IRD - §691 

Loss Sale Rule Applied To IRA Repurchase - §1091 

IRS Proposes Rules for Funds Used in Exchanges - §1031 

Cooperatives Qualifies for Like-kind Treatment - §1031 

Related Party Exchange OK Despite Later Sale - §1031 

Final Regs on Depreciation of Exchanged Property - §1031 

Vacation Home Exchange Denied - §1031 

Disposition by Related Party Did Not Accelerate Gain - §1031 

Stockbroker Settlement Yields Capital Gain - §1211 

Sale of Lottery Winnings Results in Income - §1221 

Real Estate IRA Prohibited Transaction - §4975 

Community Property Beat Innocent Spouse Provisions - §6015 

Denial of Innocent Spouse Relief Overturned - §6015 

Automatic Stay Doesn't Stop Innocent Spouse Hearing - §6015 

Ex-Wife Not Liable for Taxes - §6015 

Right to Intervene in Innocent Spouse Proceeding - §6015 

Home Sales Exception from Reporting Updated - §6045 

2006 "Dirty Dozen" - Misc.

Two Fall off the List

How to Report Suspected Tax Fraud Activity 

2007 "Dirty Dozen" - Misc.

Guidance on SSA Earnings Test - Misc.

Medicaid Planning Tightened - Misc.

Abuse by Credit Counseling Agencies - Misc.

Overall Tax Burden - Misc.

Revised Form 706 - Misc.

Guidelines Issued for FLPs and FLLCs - Misc.

Joint AMT's Widening Impact - Misc.

IRS Warns of Frivolous Positions to Avoid - Misc.

Extension of Internet Access Tax Moratorium  

CHAPTER 3 - Business Matters 

Credit for Contractors on Energy Efficient Homes - §45L 

Cash Kickback Not Income - §61 

Incentive Payments Excludable Loan - §61 

Volume Discounts - §61 

M&IE Per Diem Held Wages - §62 

Tool Reimbursement Held Disguised Wages - §62 

Consent to Revoke Election - §83 

Taxpayer Stuck With Election - §83 

Exercise of Options Create Income - §83 

Partnership's Self-funded Health Plan Approved by IRS - §104 

Reimbursement Makes Disability Income Tax-free - §104 

Medical Premiums for Spouse/Employee Deductible - §106 

Contributions Made to Health Plan Not Excludable - §106 

Excess Lessee's Construction Allowance Held Income - §110 

Comprehensive Regs on Cafeteria Plans - §125 

Smartcards & Debit Cards Allowed For Fringes - §132 

Employer-Provided Cell Phones Tax-Free Fringe Benefit - §132 

Truck Lease Expenses Not Deductible on Schedule C - §162 

Reimbursement of Travel Expenses Treated a Wages - §162 

Deducting Health Insurance Paid by the Self-Employed - §162 

Insurance Deduction Limited for S Corporation Owners - §162 

Unreimbursed Expenses Denied Deduction - §162 

Traveling Preacher Had No Tax Home - §162 

Capitalization of Tangible Asset Proposed Regulations - §162 

Compensation to Owner Unreasonable - §162 

S Corporation Denied Daycare Deduction - §162 

Fringe Benefits Guide & Publication Revised - §162 

Employee-Spouse Loses Medical Deduction - §162 

Mileage Deduction Denied for Travel to Worksite - §162 

Travel Expenses Nondeductible Due to “Turtle Rule” - §162 

Book Writing Not Separate Activity - §162 

Engineer Denied Deduction for Flight School - §162 

M&I Per Diem Rate for Self-Employeds OK - §162 

Liberalized Lodging Deduction Rules - §162 

Home Office Deductible for Musician - §162 

Insurance Deduction for 2% S Shareholders Relaxed - §162 

Simultaneous Deductions Denied for Single Casualty - §165 

Correcting Depreciation on Sold Assets - §168 

Vineyard's Trellising Held 10 Year Depreciable Property - §168 

Adequate Records Needed for Depreciation - §168 

Section 179 Election on SUV Denied - §179 

Energy-Efficient Commercial Property Expenditures - §179D  

Horse Breeding Not for Profit - §183 

Family Farm Held Hobby - §183 

Bass Fishing Held Not For Profit - §183 

Aggregation Avoids Hobby Loss Rules - §183 

Technical Corrections to Production Deduction - §199 

More Domestic Production Activity Guidance - §199 

W-2 Guidance for Production Activities Deduction - §199 

Audit Issues for Production Activities Deduction - §199 

Payment Card Reimbursements under FSAs and HRAs - §223 

Policy Rider Causes HSA Disallowance - §223 

FSA & HRA Rollovers to HSAs - §223 

2007 & 2008 Inflation Adjustments for HSAs - §223 

IRS HSA Publication Updated - §223 

Publisher Subject to UNICAP Rules - §263A  

Cohan Rule Allowed to Estimate Business Expenses - §274 

Casino’s Comps 100% Deductible - §274 

2007 Per Diem Rates - §274 

Indefinite Job Assignment Taxable - §274 

Entertainment Use of Planes §274 

Property Used Partly for Personal Purposes - §280A  

Regs Ignore Step Transaction Doctrine - §338(h)(10)

S Corporation Separates into Two Legal Entities - §368 

NOLs Limited After Stock Sale - §382 

Shareholder Advances Treated as Debt - §385 

Guidance on Automatic Contribution Arrangements - §401 

Controlled Partnership Liable for Pension Penalty - §401 

Guidelines for Pre-Retirement Plan Distributions - §401 

Regs on Medical or Accident Insurance Payments - §402 

Roth 401(k) Final Regulations - §402A  

Sample Roth 401(k) Elections - §402A  

Regs on Distributions from Designated Roth Accounts - §402A  

Deferred Compensation Payroll Taxes Deductible? - §404 

Final Regs on Nonqualified Deferred Compensation - §409A  

2008 Relief for §409A Document Compliance - §409A  

2008 Transition Relief for §409A Compliance - §409A  

Teachers Pay Not Subject to Deferred Comp Rules - §s409A  

Retroactive Effect When Benefits Are Restored - §411 

Guidance on Benefits & Contribution Limits - §415 

Business Valuation Firm Not PSC - §448 

Accounting Firm Escapes PSC Status - §448 

Return Preparation & Bookkeeping Held Accounting - §448 

Treasury Shares Ignored For PSC Test - §448 

Radiation Therapy Corporation Held QPSC - §448 

Settlement Income Includible Under All-Events Test - §451 

Prepaid Postage Deduction Allowed - §461 

Prepaid Services Deductible - §461 

Many Tax-Exempt Organizations Abusing Tax System - §501 

Tax-Exempt Social Club Not Required to Recognize Gain - §512 

Association's Land Sale Not Subject to UBIT - §512 

Partner Taxed on Distributive Share Held in Escrow - §702 

Partnership Distribution of House Recognition Event - §731 

Partnership Taxed on Property Transfer - §731 

Tax Year Closed by SOL Still Open for Certain Purposes - §751 

Installment Sale Treatment Not Available - §751 

Regs on Effect of Liabilities and SMLLC Basis Rules - §752 

Qualified Small Business Stock Election - §1045 

Allocation Rules Inapplicable to Non-Compete - §1060 

Conversion Did Not Create Second Class of Stock - §1361 

Proposed Regs on S Corporation Changes - §1361 

Form 2553 May Be Filed With S Corporation Return - §1362 

Circular Loans Failed to Create Debt Basis - §1366 

S Corp Shareholder Get Basis After Restructuring - §1366 

Distributive Share of S Corp Taxable to Shareholder - §1366 

$10,000 Limit Imposed on Open Account Debt - §1367 

Regs. on 10-Year Built-In Gains Period - §1374 

Adjustment for C Corporation Electing S Corp Status - §1374 

CRP "Rental" Payments Subject to S/E Tax - §1402 

Dance Teachers Not Employees - §3121 

Satellite TV Installer Independent Contractor - §3121 

Employee vs. Independent Contractor - §3121 

Section 530 Publication Updated - §3121 

Worker Held Independent Contractor - §3121 

New Form Should Alert IRS on Misclassified Workers - §3121 

Unemployment Benefits Not Subject to FICA or FUTA - §3401 

Disregarded Entities Pay Their Own Employment Taxes - §3401 

Regs on Sending IRS Questionable W-4s - §3402 

Contracts Stating Workers Not Employees Void - §3509 

Leased Back Held Prohibited Transaction - §4975 

Family Business Interest Held Prohibited Investment - §4975 

Employment Tax Liability Despite Embezzlement - §6651 

Final Regs Cover Corporate Estimated Tax Rules - §6655 

Corporate Secretary Not Responsible - §6672 

Responsible Person Sentenced to Jail - §6672 

Chief Operating Officer Not Responsible Person - §6672 

Arrangement Found to Constitute a Partnership - §7701 

Check the Box Regs Held Valid - §7701 

Choice for Husband & Wife Sole Proprietorships - §7701 

Technical Corrections for S Corporations - Misc.

Retirement Payments to Nonresident Partners – Misc.

Form 941 Instructions and Form 941c Revised - Misc.

Highlights of S Corporation NRP Study - Misc.

IRS Offers Advice for Accurately Filing K-1s - Misc.

Most Sole Proprietors Underreporting Income - Misc.

Key Retirement Plan Limits Increase for 2008 - Misc.

Updated Version of IRS Fringe Benefit Publication - Misc.