Tax Alerts


“Phase Two” Tax Reform Outline is Expected to Come Soon

Monday, July 30, 2018

A “phase two” tax reform outline could be unveiled by House GOP tax writers soon. Republicans have started to increase their tax meetings related to the effort, House Ways and Means Committee Chairman Kevin Brady, R-Tex. said. Individual Tax Cuts Brady reiterated to reporters that “phase two” will focus on the individual side of the tax […]

Shareholder Could Not Claim S Corporation’s FICA Tip Credits

Monday, July 30, 2018

An individual shareholder of an S corporation restaurant operator was not allowed to claim FICA tip credits under Internal Revenue Code (IRC) Section 45B that the S corporation did not claim. The shareholder could not unilaterally and retroactively nullify the S corporation’s election to deduct FICA tip taxes. Background The restaurants owned by the S […]

Congressional Lawmakers Introduce Bipartisan Historic Rehabilitation Credit Bill

Monday, July 30, 2018

A bipartisan group of House and Senate lawmakers have introduced companion Historic Rehabilitation Tax Credit (HTC) bills. The measure aims to strengthen the HTC by encouraging investment and minimizing administrative burdens, according to the lawmakers. Rehabilitation Credit As amended by the Tax Cuts and Jobs Act (TCJA) (P.L. 115-97), the rehabilitation credit under Code Sec. […]

Railroad Stock Options Are Not Money Remuneration Under RRTA

Monday, July 30, 2018

The U.S. Supreme Court has determined that nonqualified employee stock options are not taxable compensation under the Railroad Retirement Tax Act (RRTA). The term “money remuneration” in the Act unambiguously excludes “stock.” Background Several railroads filed a refund claim for overpaid Railroad Retirement taxes. The railroads claimed they overpaid their taxes because they included the […]

Son-of-BOSS Arrangements

Monday, July 30, 2018

Participants in the Son-of-BOSS tax shelter have maintained their perfect losing record in the Tax Court. Therefore, another Son-of-BOSS deal has failed to produce its promised loss deductions. Son-of-BOSS Arrangements Son-of-BOSS is a variation of a slightly older tax shelter known as the “bond and options sales strategy,” or BOSS. Son-of-BOSS transactions take many forms, […]