1

The Sixth Circuit reversed the Tax Court and held that the IRS could not apply the substance-over-form doctrine to recharacterize commission payments made to a domestic international sales corporation (DISC) that was owned by a Roth IRA.

2

The U.S. Tax Court held that a shareholder of several S corporations did not receive any basis in indebtedness to the S corporations merely from signing as a co-borrower on loans....

3

Treasury and the IRS issued proposed regulations (REG-133673-15) related to distributions of a corporation's stock under Section 305.

4

In general, Section 165(g)(1) provides for the recognition of a capital loss for any security that is a capital asset that becomes worthless.

5

The IRS recently ruled in a private letter ruling (PLR 201551009) on the implications of gain recognition under Section 751 in the context of a Section 355 spinoff.

6

The IRS has ruled (PLR 2015-05-006) that the parent of a consolidated group had three classes of stock outstanding.

7

The IRS has ruled in PLR 2015-05-007 that the voting power of stock within the meaning of Section 355(d) was determined by reference to the ability to elect members of the corporation’s board of directors.

8

The IRS allowed individual shareholders of an S corporation to increase their basis in the stock of the S corporation.

9

Certain shareholders received a gift from other shareholders, to the extent that the value of the shares of stock received in a merger exceeded the value of the shares of stock transferred.

10

The IRS issued final regulations (T.D. 9682) relating to when S corporation shareholders have basis in indebtedness that the S corporation owes to them.

11

The IRS ruled that a loss disallowed under Section 311(a) reduced a shareholder’s basis in S corporation stock.

12

The IRS intends to amend regulations to provide guidance concerning the treatment of U.S. persons that own stock of a passive foreign investment company.

13

The IRS has ruled in PLR 2013-06-004 that an S corporation's distribution agreement with its shareholders would not create a second class of stock under Section 1361(b)(1)(D).

14

Special dividends may impact on the accounting for share-based compensation.

15

In Neff v. Commissioner, T.C. Memo 2012-244 (8/27/12), the Tax Court addressed the tax consequences of the rollout of a split-dollar life insurance policy under guidance issued by the IRS under prefinal split-dollar regulations (T.D. 9092, 68 Fed. Reg. 54336 (9/17/03)) regarding the proper treatment of such policies applicable to split-dollar life insurance arrangements (SDLIAs) entered into after Sept. 17, 2003.

16

The 11th Circuit Court in Lizzie W. Calloway et vir v. Commissioner (No. 11-103965 (11th Cir., (2012)) affirmed the Tax Court’s decision (135 T.C. 3 (2010) that a taxpayer sold his stock upon entering into an agreement that purported to be a nonrecourse loan.

17

The IRS recently proposed regulations (REG-141075-09) under Section 83 to clarify and make changes to the current regulations.