March 2012 issue

March 2012


This publication provides timely updates on a range of federal income tax issues including accounting methods and inventories, depreciation, long-term contract accounting, leasing, fringe benefits, and other miscellaneous tax issues.

This month's features:

  • President Obama's FY 2013 budget targets certain accounting methods
  • IRS outlines treatment of settlement proceeds following manufacturer's breach
  • Certain restaurant and retail improvement property eligible for bonus depreciation deductions
  • LB&I issues new directives for wireless and telecom industries
  • LB&I provides guidance for examiners on benefits and burdens of ownership in contract manufacturing arrangements
  • Wind turbine generators considered placed in service for depreciation, renewable energy credit
  • PLR concludes sale of power purchase agreement results in capital gain
  • IRS updates accuracy-related penalty guidance
  • Dividends paid by a life insurance company to its policyholders are deductible under the recurring item exception
  • Fifth Circuit affirms insurance fund not deductible business expense
  • Corporation denied deduction for transfer to trust to satisfy contested tax liability
  • Tax Court disallows deductions for business use of aircraft due to lack of substantiation

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Annette Smith
Tel: +1 (202) 414 1048

Christine Turgeon
Tel: +1 (646) 471 1660

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