Twelve Months Ended December 2001

Accounting Methods & Periods

Accelerating deductions. 01:507.

Adopting, changing and retaining accounting periods. 01:575.

Automatic depreciation method changes. 01:578.

B share commissions. 01:7.

Burdensome lease, termination. 01:435.

Cash method, ability to use. 01:870.

Component depreciation. 01:508, 647.

Credit card fee income. 01:8, 736.

Installment reporting, repeal for accrual taxpayers repealed. 01:151, 221.

amended returns. 01:363.

ITC definition of personal property. 01:508, 647.

Lease-stripping and partnerships. 01:735.

LIFO

benefits, continuation after Sec. 721 transfer 01:577.

used-vehicle dealers. 01:368.

Like-kind exchanges, depreciation. 01:398, 790.

Long-term contract method. 01:364.

Manufacturers. 01:223.

Midquarter convention. 01:804.

Agriculture

Farmers' cooperative. 01:388.

Charitable Contributions

CRAT charitable deduction. 01:490.

Consolidated Returns

Aggregation of stock. 01:504.

Carryback of post-acquisition NOL. 01:295.

Disallowed loss rule. 01:603.

Intercompany debt redemption. 01:9.

Off-Code amendment. 01:436.

Sec. 381(c)(1)(B) in tax-free asset acquisition. 01:279.

Specified liability losses. 01:498, 584.

Tentative carryback adjustments. 01:582.

Corporations & Shareholders

AMT overpayment. 01:80.

Asset sale after merger. 01:492.

Business purpose and economic substance. 01:736.

Buy-sell agreements. 01:346.

COBE

acquisition of holding company. 01:370.

statutory mergers. 01:83.

COI regs. 01:10.

Corporate tax shelters. 01:572.

Debt relief as dividend. 01:644.

F reorganization. 01:12.

Incorporating a cash-basis business. 01:66.

Limited partnerships in corporate distribution planning. 01:298.

Liquidating distributions. 01:632.

Morris Trust rules. 01:300.

Multiple mergers as A reorganization. 01:733.

Payment

by dissolved corporation in satisfaction of shareholder's alimony obligations. 01:345.

to former shareholder, characterized as consulting. 01:351.

Qualified small business stock. 01:462.

Sale-and-leaseback of real property. 01:328.

Schedule N, Form 1120. 01:221.

Sec. 338(h)(10) elections. 01:807.

Sec. 355(d) final regs. 01:296.

Sec. 382 limit for controlled groups. 01:440.

Sec. 482 and the sham-transaction doctrine. 01:152.

Secs. 338 and 1060 final regs. 01:438.

Solely-for-voting-stock requirement. 01:371.

Credits Against Tax

Disabled-access credit. 01:810.

Empowerment zones and renewal communities. 01:649.

Fuel tax credits. 01:374.

Low-income housing credit. 01:224.

R&E credit. 01:302.

Saver's credit. 01:805.

Employee Benefits & Pensions

Current developments. 01:762, 840.

Deducting qualified plan contributions. 01:444.

Deferred compensation alternatives to Sec. 457(f). 01:441.

GUST remedial amendments. 01:652.

IRAs

employer-mandated rollover. 01:226.

rollovers of S stock. 01:584.

Roth IRAs. 01:654.

substantially equal periodic payments. 01:792.

Long-term care insurance. 01:230.

Minimum distribution rules. 01:303, 657.

Nonmonetary recognition awards. 01:352.

Plan administration costs. 01:13.

Sec. 1032. 01:585.

Sec. 457 coordination requirements. 01:811.

Secs. 403(b) and 457(b) plans. 01:13.

Split-dollar insurance. 01:228.

Stock options and employment taxes. 01:650.

Estates, Trusts & Gifts

AICPA

member survey. 01:148, 174.

study. 01:292, 334.

Annual exclusion, maximizing use. 01:392, 470.

Bequest of residence. 01:233.

CRATs. 01:304.

CRT planning. 01:38.

CRUTs. 01:231.

Disclaimers. 01:635.

EGTRRA, planning after. 01:588, 822.

Estate tax filing extension. 01:573.

FLPs. 01:68.

GRATs. 01:510.

and FLPs. 01:722.

and GRUTs, qualified interest

determinations. 01:14.

GST exemption, late allocation relief. 01:862.

Income tax issues. 01:48, 124.

Innocent spouse relief elected by executor. 01:493.

IRA distributions to trust, income and
principal issues. 01:661.

Itemized deduction two-percent floor. 01:375.

Planning strategies. 01:26, 100.

Prepaid tuition. 01:812.

Puerto Rico residents and U.S. estate and gift tax. 01:352.

QTIP trust funded by IRA. 01:320.

Recent developments. 01:552, 618.

Sec. 643 prop. regs. 01:542.

Sec. 645 election and short-year return. 01:353.

Unfinished residence, value at death. 01:496.

Valuation

closely held stock. 01:814.

formula clause and gift tax. 01:793.

Excise Taxes

Floor stocks taxes. 01:306.

Exempt Organizations

Exclusive provider arrangements and UBIT. 01:863.

Exempt bond kit. 01:645.

Foreign grant withholding requirements. 01:448.

Hospitals and private inurement. 01:445.

Political organizations, tax reporting. 01:156.

Travel and tour activities. 01:154.

Web presence and UBI. 01:220.

Expenses

Business

aircraft maintenance costs. 01:307, 376.

automobile manufacturer, future

warranty costs. 01:16.

bank acquisition. 01:16.

capitalize v. expense. 01:157, 590, 662.

captive insurance arrangements. 01:738.

cell phones. 01:814.

client costs. 01:449.

covenant not to compete. 01:512.

environmental remediation. 01:378.

ISO 9000 costs. 01:84.

legal fees. 01:513.

loan

acquisition costs. 01:590.

origination costs. 01:740.

rentals to employers. 01:661, 724.

Sec. 179 modification. 01:515.

Sec. 266. 01:815.

software costs. 01:160, 207.

standard mileage rates. 01:05.

towboat maintenance costs. 01:376.

Interest, see "Interest Income & Expense."

Foreign Income & Taxpayers

Canadian residents residing in U.S. 01:86.

CFC buyer's Sec. 338 election and seller's FTCs. 01:450.

Domestication of foreign corporations. 01:88.

Dual-consolidated losses. 01:593.

Expatriate planning. 01:244.

Foreign

income, excluding. 01:516.

nationals, avoiding PFIC trap. 01:382.

postmarks and timely filing. 01:452.

FSC Repeal and Extraterritorial Income Exclusion Act of 2000. 01:05, 592.

IRD. 01:516.

LLC treaty status. 01:596.

Qualified intermediaries. 01:308.

Transfer pricing small business market-share strategies. 01:89.

U.K. functional currency. 01:18.

U.S. residency planning. 01:696.

Withholding. 01:162.

alien students. 01:275.

real property sales to foreign persons. 01:234.

Gains & Losses

Abandonment loss, determining recognition event. 01:136.

Basis allocation to expected future property rights. 01:815.

Capital gain exclusions for empowerment-zone and renewal-community investments. 01:518.

Casualty losses from terrorist attacks, quick refunds. 01:732.

Co-obligor's release on debt. 01:164.

Five-year capital gain rates. 01:163, 664.

Installment sales of multiple assets. 01:310.

Investing in community renewal. 01:383.

ISOs

AMTNOLs. 01:665.

stock swaps. 01:234.

Like-kind exchange

disregarded entities. 01:522.

reverse, safe harbor. 01:166, 190, 523.

Nonqualified stock options. 01:238.

Sec. 1041 gain nonrecognition. 01:524.

Securities investments and life insurance wrapper. 01:90.

Specified loss carrybacks. 01:20, 453.

Gross Income

Bonus paid in conjunction with note. 01:137, 167.

Construction allowance in lease agreement. 01:636.

Contingent attorney's fee awards. 01:310.

Employee

loan vs. cash advance. 01:456.

parking reimbursements. 01:283.

Insolvency test. 01:311.

Reasonable compensation, closely held corporation. 01:92, 666.

Sec. 83 issues. 01:454.

Individuals

AMT planning. 01:117.

for ISOs. 01:248.

Dependency exemptions, noncustodial parents. 01:527.

Depreciating like-kind exchange property. 01:790.

Divorce issues. 01:610.

Education

credits. 01:669.

IRAs. 01:573.

vs. qualified tuition plans. 01:668.

Sec. 529 plans, investment direction. 01:864.

EGTRRA provisions. 01:677.

Employer-paid tax preparation as fringe benefit. 01:816.

Hybrid vehicles. 01:670.

Income

deferral and elderly clients. 01:94.

tax, payment by credit card. 01:418.

Innocent spouse and domestic violence. 01:221.

Personal residence, Sec. 121 gain exclusion. 01:573, 645.

Qualified

small business stock. 01:462.

tuition programs. 01:204, 597, 673, 864.

Tax freedom day (chart). 01:361, 433.

2001 inflation adjustments (chart). 01:81.

2002 inflation adjustments (chart). 01:805.

Use of standard deduction for regular tax and itemized deductions for AMT. 01:210.

Interest Income & Expense

Home mortgage interest. 01:529.

OID guidance. 01:292.

Legislation

Community Renewal Tax Relief Act of 2000. 01:224, 383, 649.

Economic Growth and Tax Relief Reconciliation Act of 2001. 01:432, 588, 597, 629, 672, 673, 677, 804, 811, 822, 862, 864.

Education IRAs. 01:573.

FSC Repeal and Extraterritorial Income Exclusion Act of 2000. 01:05, 592.

Important dates in tax history (chart). 01:505.

Installment Tax Correction Act of 2000. 01:151, 221, 363, 774.

Internal Revenue Service Restructuring and Reform Act of 1998. 01:59, 80, 210, 220.

New Blue Book. 01:360.

Taxpayer Relief Act of 1997. 01:53, 80, 163, 168.

Terrorist attacks, victim tax relief. 01:733.

Ticket to Work and Work Incentives Improvement Act of 1999. 01:151.

LLCs & LLPs

Real estate ownership. 01:312.

State tax treatment. 01:407.

Tax accounting issues. 01:818.

Versus limited partner for Sec. 469. 01:386.

Partners & Partnerships

Anti-abuse rule. 01:865.

Divided holding periods for partnership interests. 01:314.

K-1 compliance. 01:239.

Large partnership audit SOL. 01:387.

Lease strips. 01:735.

Liability allocation on partnership division. 01:741.

Mandatory large partnership e-filing. 01:168.

Mergers and divisions. 01:239.

Partnership interest for services. 01:741.

Sale of partnership interests with open service or construction contracts. 01:598.

Sec. 754 election revocation. 01:416.

Sec. 1503(d)'s effect on losses. 01:457.

Small returns, failure-to-file penalties. 01:819.

Tax-year selection. 01:134.

Trader partnership's operating expenses. 01:562.

Transfers of interests and related basis adjustments, reporting rules. 01:242.

Passive Activities

Losses and Sec. 731 gain. 01:315.

Pensions

See "Employee Benefits & Pensions."

Personal Financial Planning

Active trader status and marking to market. 01:713.

College savings vehicles. 01:53, 480.

Life insurance policies. 01:478.

PFS update. 01:480.

Tax-wise investing. 01:266.

Practice & Procedures

Circular 230 prop. regs. 01:746, 830.

Disclosure statements. 01:58.

Electronic

filing

and magnetic media. 01:720.

Form 1065, waiver. 01:719.

record retention. 01:482.

Employee death and taxes. 01:716.

Innocent spouse. 01:59.

IRS

audit plans. 01:717.

resolution programs. 01:60.

restructuring updates on LMSB, SBSE and Appeals. 01:484.

Loans to shareholders, market segment specialization program guidance. 01:484.

Nondischargeability of state taxes in bankruptcy. 01:64.

Offers in compromise. 01:272.

Reporting third-party payments. 01:276.

Tax Court, undesirable conduct, zero tolerance. 01:274.

Tax deposit rules. 01:81.

Third-party authorizations. 01:719.

Websites for tax practitioners. 01:201.

Withholding on aliens. 01:276.

Practice Management

Client privacy issues. 01:404.

Tax Court petition filing by nonattorneys. 01:624.

Tax malpractice. 01:854.

Procedure & Administration

Adequate disclosure. 01:210.

Burden-of-production requirement. 01:674.

Business disaster relief. 01:804.

Corporate tax shelters. 01:04, 148.

Deficiency interest-free periods. 01:459.

Disaster area, terrorist attacks, redefined. 01:804.

Disclosure authorization. 01:461.

Electronic

filing. 01:293, 804.

payee statements. 01:458.

Employment taxes assessed in SMLLC's name and EIN. 01:419.

Federal tax liens. 01:505.

Financial status audit techniques. 01:211.

Foreign-based income, frivolous filing position. 01:565.

Frivolous tax arguments. 01:644.

Growth of the Code (chart). 01:293.

"Homemade" income tax forms. 01:284.

Innocent spouse. 01:684, 796.

and domestic violence. 01:221.

IRS's Website. 01:220.

Medical resident FICA withholding. 01:22.

Offers in compromise. 01:272.

Payroll taxes, reasonable cause for nonpayment. 01:741.

Penalty reduction. 01:80.

Six-year SOL. 01:315.

Small-business threshold. 01:504.

Tax fraud. 01:572.

Terrorist-attack victims, disaster assistance. 01:732.

casualty loss quick refunds. 01:732.

IRS toll-free number. 01:733.

proposed relief legislation. 01:733.

Transferee liability on stock purchase. 01:214.

Undeliverable refunds. 01:05.

Unsigned joint return. 01:353.

Worker classification and employment taxes. 01:95.

Zeroed-out return. 01:796.

Real Estate

REITs. 01:532.

S Corporations

Back-to-back loans. 01:96, 604.

Charitable deduction. 01:170.

COD income. 01:148, 171.

Composite taxes. 01:316.

Conversion

LIFO reserves. 01:69.

suspended PALs. 01:70.

Current developments. 01:704, 774.

Debt guarantees. 01:74.

Economic-outlay doctrine. 01:604, 742.

Eligible shareholders, controlling number of. 01:860.

Payments to shareholders reclassified as wages. 01:819.

QSSTs. 01:644.

QSub guidance. 01:05.

Restricted stock. 01:534.

Self-charged management fees. 01:638.

Stock sale, computing stock and debt basis. 01:560.

Suspended

C PALs. 01:536.

losses on S stock disposition. 01:280.

Special Industries

Farmers' cooperative. 01:388.

Mortgage servicing rights. 01:600.

SSAP No. 10 and insurance companies. 01:23.

State & Local Taxes

Amnesty. 01:630.

California insurance company DRD. 01:389.

C&I programs. 01:98.

Corporate income tax developments. 01:178, 258.

Equipment-purchase tax credits. 01:675.

Escheat of unclaimed property. 01:464.

Illinois income tax. 01:318.

Internet

taxation issues. 01:98.

Tennessee nexus. 01:390.

LLC and LLP treatment. 01:406.

Massachusetts treatment of Sec. 338(h)(10) election. 01:744.

Michigan SBT. 01:539.

Mitigating startup investors' risk. 01:540.

Sourcing issues. 01:745.

Streamlined sales tax project. 01:360, 857.

Voluntary registration. 01:390.

Tax Education

AICPA core competencies. 01:132.

IRS Appeals process—case method and tax clinics. 01:558.

Model tax curriculum. 01:340.

Uniform CPA examination. 01:785.

Tax Policy

TEC initiatives. 01:130, 333, 556, 782.

Tax Technology

E-filing security. 01:293.

IRS Website. 01:220.

tax fraud. 01:572.