Twelve Months Ended December 2000

Accounting Methods & Periods

Accounting method change, automatic. 00:143.

Cash method

ability to use. 00:603, 763, 835, 870.

paving contractor. 00:748.

Installment reporting

and escrows. 00:340.

repeal for accrual taxpayers. 00:142, 376, 433.

Inventory

acquisition price as base-year cost. 00:6.

bargain purchase. 00:144.

cash method for small businesses. 00:679, 738.

versus supplies for service providers. 00:379.

Law firm advances. 00:60.

LIFO

IPIC method. 00:604.

voluntary method change. 00:242.

Charitable Contributions

Appraisal requirement. 00:78.

Bequeathing IRD items. 00:286.

Consolidated Returns

Disallowed loss rule. 00:521.

Issues update. 00:810.

S corporation group member. 00:4.

Corporations & Shareholders

Bausch & Lomb doctrine, repeal. 00:764.

Consolidated group's acquisition of S corporation. 00:4.

Disallowed loss rule. 00:521.

Mergers of disregarded entities. 00:605.

Nonqualified preferred stock. 00:461.

Partnership's sale of contributed corporate stock. 00:381.

PHC

income. 00:58.

tax and Sec. 382. 00:535.

Reorganizations and corporate divisions recapitalizations. 00:360.

Sec. 108(b) attribute reduction. 00:146.

Sec. 301(e). 00:463.

Sec. 338(h)(10) elections. 00:606.

State-law mergers. 00:194, 287.

Stock repurchase plans and COI. 00:288.

Tax rates on corporate investment (chart). 00:601.

Trust-preferred securities. 00:79.

Unwanted assets in stock sale. 00:465.

Credits Against Tax

ADA compliance. 00:680.

AIRC opportunities. 00:466.

Education credits. 00:34.

Internal-use software. 00:9.

Low-income housing credit. 00:131.

Poultry waste credit. 00:536.

Qualified research. 00:8, 608.

Targeted jobs credit settlement offer. 00:681.

Depreciation

Noncompete agreement in stock redemption. 00:290.

Property acquired subject to Secs. 1031 and 1033. 00:215.

Employee Benefits & Pensions

Business combinations. 00:79.

Compensatory stock options transferred in divorce. 00:537.

Current developments. 00:772, 874.

Deferred compensation plans. 00:190.

Defined benefit plans. 00:12.

FICA taxation of nonqualified deferred compensation. 00:147, 206.

Forms 5500. 00:208, 332.

Incentive compensation deductions, timing. 00:472.

IRAs

beneficiary designation. 00:837.

beneficiary not bound by owner's pre- death withdrawal calculations. 00:610.

community property issues. 00:539.

minimum distribution calculation. 00:12.

Roth IRAs. 00:290, 518.

ISOs and AMT traps. 00:540.

Nondiscrimination requirements. 00:134.

Nonemployer stock options. 00:468.

Nonqualified

preferred stock. 00:461.

stock options. 00:494.

trust payments and employment taxes. 00:749.

Safe-harbor Sec. 401(k) plans. 00:611.

Suspension of benefits notice, failure to provide. 00:470.

Estates, Trusts & Gifts

Alternate valuation date. 00:676, 839.

Disclaimers and liens. 00:274, 683.

FLP gain allocation. 00:682.

Foreign

nationals' estate tax exposure. 00:412.

-situs asset protection trusts. 00:102, 210.

Gift

disclosure. 00:295, 677.

program to shift control to family. 00:666.

splitting. 00:300.

Grantor, definition. 00:151.

GRATs' and GRUTs' use of notes. 00:383.

GST tax

Crummey issues. 00:292.

planning opportunities. 00:211.

traps. 00:546.

Personal representative's reliance on attorney. 00:363.

QPRTs and QTIPs, recent developments. 00:416.

QTIP trust funded by IRA. 00:382.

Recent developments. 00:576, 652.

Reimbursed gift taxes paid by heirs. 00:436.

Sec. 1014(b)(6), repeal proposal. 00:298.

Separate share rules. 00:210.

Trusts

classification as domestic or foreign. 00:150.

grandfathered modification. 00:212.

holding life insurance policies. 00:837.

Valuation

estate tax claim. 00:294.

FLP interests. 00:300.

reductions. 00:80.

Excise Taxes

Prepaid telephone cards. 00:384.

Exempt Organizations

Corporate sponsorship prop. regs. 00:344, 353, 386, 474, 612.

Disclosure. 00:152, 214, 686.

Income from facility rentals. 00:82.

Lobbying. 00:685.

Reasonable compensation. 00:82.

Web presence and UBI. 00:344, 353, 504.

Expenses

Business

aggregating S and C corporation activities. 00:899.

asset removal costs. 00:392.

bank bailout payments to proprietary mutual funds. 00:17.

capitalize vs. expense. 00:155.

COLI program. 00:14.

consulting fees. 00:16.

contract development costs. 00:19.

covenant not to compete after firm breakup. 00:590.

depreciation of property acquired sub- ject to Secs. 1031 and 1033. 00:215.

employees' travel. 00:439.

environmental remediation. 00:388.

ERP implementation costs. 00:476.

executives' wages in merged

corporations. 00:522.

food and beverage. 00:677.

golden parachutes. 00:275.

home office. 00:83.

investigatory costs. 00:475.

ISO 9000 costs. 00:216.

loan origination costs. 00:616, 764.

long-term contracts.00:476.

package design. 00:86.

prepaid rent. 00:818.

reasonable compensation. 00:61, 406.

removal costs. 00:478.

replacing retired assets. 00:365.

retirement malpractice insurance. 00:390.

sole shareholder's legal expenses. 00:676.

transportation for temporary work

locations. 00:615.

travel reimbursements, assignments with

breaks in service. 00:668, 688.

Website development costs. 00:302, 689.

Interest, see "Interest Income & Expense."

Medical conference attendance. 00:461.

Telecommuting and home office deduction. 00:83.

Vacation homes. 00:840.

Foreign Income & Taxpayers

Canadian residency. 00:87.

Check-the-box consequences. 00:392, 479.

Dual-capacity taxpayer. 00:765.

Employers' FICA obligations for foreign nationals. 00:319.

Estate tax exposure for foreign nationals. 00:412.

Export tax benefits. 00:692.

Foreign

partnership reporting requirements. 00:219, 265.

-situs asset protection trusts. 00:102, 210.

tax credit. 00:19.

effect of NOL carryovers on. 00:480.

taxes and stock option benefits. 00:482.

transfers, assessments on. 00:752.

Hybrid entities and treaty benefits. 00:619.

Maquiladoras. 00:218.

Offshore sham transactions. 00:20.

PEs and e-commerce. 00:306.

PFICs and non-QEFs. 00:304.

Redemption distribution of PTE. 00:482.

Sec. 904 base vs. timing difference for foreign taxes. 00:484.

Swap recharacterized. 00:765.

Transfer pricing. 00:88.

Gains & Losses

Abandonment loss on thrift acquisition. 00:22.

Built-in gains and income items under Sec. 382. 00:485.

Constructive receipt. 00:90.

Constructive sale treatment for appreciated financial positions. 00:394.

Covered calls. 00:310.

Day traders. 00:309.

Disposition of qualified replacement property after ESOP sale. 00:443.

Five-year capital gain rates. 00:846.

Insurance contracts and Sec. 1033. 00:547.

Intrafamily sales of NQSOs. 00:494.

ISOs. 00:844.

Like-kind exchange

basis in replacement property. 00:693.

deferred, use of accommodation party. 00:819.

reverse, safe harbor. 00:847.

Mark-to-market rules. 00:90.

Mutual fund redemptions. 00:234.

Ownership of home by partnership. 00:276, 396.

Passthrough sales and exchanges. 00:760.

Patent sales and capital gains. 00:548.

Qualified small business stock. 00:846.

Securities trader reporting requirements. 00:714.

Gross Income

COD income. 00:398.

Contingent attorney's fee awards. 00:401, 550, 694, 848.

Employer-paid financial counseling services. 00:23.

Imputed interest. 00:76.

Lottery winnings. 00:64.

Personal use of company airplane. 00:91.

Reasonable compensation, closely held corporation. 00:94, 222.

Stock redemption between spouses. 00:400.

Taxability of commission income. 00:96.

Individuals

AMT planning. 00:788.

Armed forces personnel, special tax provisions. 00:44.

Budget of the median two-earner family (chart). 00:285.

Business property sales under Secs. 1031 and 121. 00:223.

Casualty and theft loss refund opportunities. 00:182.

Damage awards. 00:312.

Dependency exemptions. 00:739.

Federal budget dollar for 2001 (chart). 00:205.

Higher education costs. 00:34.

Innocent spouse. 00:26, 140, 460, 533.

Ministers' housing allowances. 00:696.

1999 inflation adjustments (chart). 00:5.

Planning for financial investments. 00:816.

Qualified state tuition programs. 00:697.

Roth IRAs. 00:518.

Tax bite in the eight-hour day (chart). 00:533.

Taxes per capita by state (chart). 00:141.

Tax freedom day (chart). 00:77, 377.

Wealth care kit. 00:832.

Interest Income & Expense

Bond discounts and premiums. 00:555.

Deduction of interest by cash-method taxpayer. 00:158.

Guarantor's interest deduction 00:900.

Imputed interest. 00:76.

Interest on tax deficiencies. 00:552.

SAM loans. 00:314.

Legislation

Extenders enacted. 00:140.

Internal Revenue Service Restructuring and Reform Act of 1998. 00:26, 52, 54, 55, 56, 116, 182, 260, 460, 536, 640, 744, 754, 760, 772.

Internet Tax Freedom Act. 00:98.

Tax and Trade Relief Extension Act of 1998. 00:26, 182, 460, 536, 788.

Taxpayer Relief Act of 1997. 00:34, 55, 83, 90, 182, 223, 265, 576, 640, 760, 772, 833, 846.

Ticket to Work and Work Incentives Improvement Act of 1999. 00:140, 142, 340, 376, 433, 460, 800.

LLCs & LLPs

Partnership bifurcation. 00:850.

Partners & Partnerships

Allocation, special, of COD income. 00:128.

Allocations

and IRS reallocation. 00:317.

distributions of multiple assets. 00:640.

of partnership debt. 00:561.

Basis rules. 00:557.

Converting a general partnership interest to a limited partnership interest. 00:746.

Distributions of marketable securities. 00:430.

Lease strips. 00:766.

Mergers and divisions, prop. regs. 00:854.

Self-funded health plan. 00:316.

Substantial economic effect. 00:159.

Tax matters partner. 00:284.

Passive Activities

At-risk rules and LLCs. 00:698.

Rental property status. 00:700.

Pensions

See "Employee Benefits & Pensions."

Personal Financial Planning

Offering investment advisory services. 00:270.

PFP developments and tools. 00:48.

Regulation of investment advisers. 00:735.

Retirement planning. 00:509.

Practice & Procedures

ABA and MDPs. 00:601.

AICPA Tax Executive Committee initiatives. 00:663.

Alternative dispute resolution. 00:116.

Cash method for small businesses with inventory. 00:738.

CPA tax practice standards. 00:174, 188, 357.

Dependency exemptions. 00:739.

Ex parte communications. 00:54.

Foreign partnership reporting requirements. 00:219, 265.

Fringe benefits. 00:512.

Installment agreements. 00:742.

IRS alternative dispute resolution programs. 00:116.

Large business examination program. 00:739.

Mediation. 00:56.

Offers in compromise. 00:52, 264.

Partnership returns, electronic filing. 00:55.

POA problems, avoiding. 00:741.

Practitioner return authorization. 00:376, 514.

Protesting Service Center penalties. 00:264.

Refund anticipation loans. 00:230.

Responsible person for trust fund taxes. 00:260.

Tax Court petition filing, statute of limitations. 00:515.

Third-party information. 00:515.

Timely refund claim on late return. 00:740.

Underpayment interest. 00:50.

Practice Management

Client record retention and tax workpapers. 00:658.

CPA tax practice standards. 00:188, 357.

Internet newsgroups. 00:422.

Refund anticipation loans. 00:230.

SSTSs and tax practice review. 00:890.

Procedure & Administration

Accountant, reliance on. 00:824.

Adequate disclosure guidance. 00:66.

Combined information reporting. 00:76.

Conversion regs. 00:490.

Corporate

officer classification. 00:820.

tax shelters. 00:368, 568.

Credit for withholding. 00:204.

EIC due diligence. 00:833.

EIN applications. 00:285.

Electronic filing. 00:532.

Employers' FICA obligations for foreign nationals. 00:319.

Employment tax

failure to pay, reasonable cause exception. 00:195.

Entity classification election. 00:322.

Estate tax automatic filing extension. 00:833.

Foreign transfers, assessments on. 00:752.

Form 4549 and bankruptcy. 00:591.

Form W-2, fraudulent. 00:524.

Information reporting. 00:489.

Innocent spouse. 00:26, 140, 460, 754, 902.

IRS

alternative dispute resolution. 00:116.

C&L division. 00:600.

information letters. 00:376.

Last known address. 00:4.

Married filing as head of household. 00:824.

Offers in compromise. 00:52.

Practitioner return authorization. 00:376, 514, 760.

Pre-assessment remittances. 00:768.

Refund claim SOL. 00:68, 766.

Sec. 6662, applicability to refund claims. 00:488.

SSTSs. 00:832.

Tax Court

courtesy calls. 00:833.

petition filing. 00:532.

TIN matching pilot program. 00:600.

Withholding tax forms and transition rules. 00:323.

Y2K penalty relief. 00:77.

S Corporations

B stock swap of former partnership. 00:586.

Changing fiscal year-end before S election. 00:897.

COD income. 00:402, 632.

Consolidated returns. 00:4.

Continuity of shareholder interest rules. 00:852.

Current developments. 00:724, 800.

Effect of shareholder-to-shareholder loan on basis. 00:224.

ESBTs. 00:23.

ESOPs. 00:225.

Financial institutions and the AMT credit. 00:622.

GRAT as S shareholder. 00:140.

Installment method

effect on QSubs. 00:564.

repeal for accrual-method taxpayers. 00:325.

Passive investment income. 00:272.

Passthroughs, distributions and basis adjustments, final regs. 00:704.

QSSS/QSub guidance. 00:326.

QSubs and the step-transaction doctrine. 00:493.

Sec. 338(h)(10). 00:160.

SEC

Investment advisers. 00:285.

Regulation windfall. 00:141.

Securities pricing. 00:205.

State & Local Taxes

Alaska Community Property Act. 00:701.

Average and total tax burdens, 2000 (chart). 00:761.

Corporate income tax developments. 00:164, 250.

Digital transmissions. 00:769.

Dock sales sourcing. 00:770.

Intangible property. 00:404.

International fuel tax agreements. 00:626.

Internet

sales companies. 00:702.

taxation issues. 00:98, 623.

Michigan

revised nexus standards for SBT. 00:227.

SBT. 00:630, 894.

Nexus

sales and use tax. 00:377.

Property tax reduction strategies. 00:99.

Research and experimentation credits. 00:229.

Sales and use tax

audits. 00:424.

optional reporting method. 00:330.

S election, effects on domicile. 00:565.

Voluntary disclosure. 00:660.

Tax Education

Classroom management techniques. 00:580.

2000 Tax Education Symposium. 00:358, 812.

Tax Policy

Simplification. 00:354.

TEC initiatives. 00:809.

Tax Technology

E-commerce and tax administration. 00:336.

FirstGov Website. 00:761.

Interactive income tax receipt. 00:533.

Internet shopping and taxation (chart). 00:677.

Valuing savings bonds. 00:601.

Y2K issues. 00:77.