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Corporate Tax

Corporate Tax Research Papers

Mandatory Passthrough Taxation for Non-Publicly Traded Businesses?

October 30, 2017
A coffee shop in Bintaro, Indonesia by Nafinia Putra via Unsplash

Discussions regarding corporate tax reform often focus on the large, typically public, companies — but what about the treatment of private businesses? In a new research paper, Professor Anthony P. Polito from Suffolk University Law School looks at whether private businesses should receive mandatory passthrough treatment. He ultimately decides that passthrough treatment shouldn’t be mandatory, but comes up with some other ideas for tax reform.…

Case Summaries S Corporations

A Texas landfill goes to Tax Court

August 24, 2017
Landfill photo by Celestine Ngulube via Unsplash.

A Texas couple recently won a novel U.S. Tax Court case involving tax deductions for landfills. The married couple operate a landfill outside of Austin using an S corporation which they co-own with relatives. The IRS disallowed deductions that the couple’s company took for future cleanup costs because the company is a cash-method taxpayer and the IRS contends that the deductions are only available to accrual-method taxpayers. The…

Basics S Corporations

S Corporation basics

August 23, 2017
Man at office building by Chris Davis via Unsplash

Note:Β This is a general information “basics” article. For more information, see FAQ #4. S Corporations Overview An S corporation is a business corporation with a limited number of shareholders whose income is taxed through its shareholders rather than the corporation itself. S corporations are defined in the Internal Revenue Code (26 U.S. Code Β§ 1361) which also provides an extensive list of requirements for eligible types of shareholders.…

Corporate Tax Research Papers

Paper: A moral view of tax planning

August 21, 2017
Starbucks photo by Hans Vivek.

A pair of Dutch lawyers have an interesting new article out called “Good Tax Governance: A Matter of Moral Responsibility and Transparency.” In the article,Β Hans Gribnau and Ave-Geidi Jallai of Tilburg Law School discuss how aggressive tax planning may disadvantage multinational corporations by causing resentment among consumers. The professors write that because the public views tax avoidance in moral rather than legal terms, the bad PR associated with…

Corporate Tax Law

Caterpillar & The Border Adjustment Tax: Wednesday’s Tax Brief

March 22, 2017
Construction equipment photo by Ladislav Soukup.

The GOP’s proposal for a Border Adjustment Tax may help out companies such as construction manufacturer Caterpillar, Inc., which is currently facing a federal tax evasion investigation. Prosecutors accuse Caterpillar of hiding its profits in Switzerland, however the company maintains that its tax arrangements are perfectly legal. The company reportedly gave a Swiss subsidiary legal rights to its global replacement parts business, which means that the profits accrued…