Twelve Months Ended December 2004

AICPA TAX DIVISIONS S CORPORATION TAXATION TECHNICAL RESOURCE PANEL

• Renewed Focus on S Corp. Officer Compensation. 04:280.

AICPA TAX DIVISIONS S CORPORATION TAXATION TECHNICAL RESOURCE PANELS QUALIFIED SUBCHAPTER S SUBSIDIARY (QSUB) PRACTICE GUIDE TASK FORCE

• QSub Checklist. 04:24.

ALTIERI, MARK P.

• A Fringe Benefit Primer for the Closely Held C Corporation. (Part I). 04:624. (Part II). 04:686.

BELCHER, DENNIS I.

• Reform or Repeal the Transfer Tax System? 04:620.

BOUCHER, KAREN J.

• State & Local Taxes: Current Corporate Income Tax Developments. (Part I). 04:156. (Part II). 04:230.

BURTON, HUGHLENE A.

• Partners & Partnerships: Current Developments. 04:100.

• S Corporations: Current Developments. (Part I). 04:636. (Part II). 04:702.

CAPASSAKIS, EVELYN M.

• Divorce Issues and Business Succession Planning. 04:744.

CHUI, YIDAN

• Corporations & Shareholders: Significant Recent Developments. 04:42.

COOK, ELLEN D.

• IRS Further Clarifies Innocent Spouse Equitable Relief. 04:145.

DAHER, DOMINIC L.

• Class Actions and the Attorneys Fees Conundrum. 04:428.

DILLEY, STEVEN

• Tax Planning for the Sale of a Principal Residence. (Part I). 04:30. (Part II). 04:90.

ELLENTUCK, ALBERT B.

• For the Case Study, see the cover of each issue.

EVERETT, JOHN O.

• Tax Planning after AMT Reform. 04:214.

EYBERG, TERRY

• FLP Planning after Strangi, Kimbell and Thompson. 04:750.

FINK, PHILIP R.

• Planning Liquidation of Investments in Retirement. 04:164.

FRISKE, KARYN BYBEE

• The Marriage Penalty after the JGTRRA. 04:284.

GARDNER, JOHN C.

• An Analysis of SSTS Interpretation No. 1-2. (Part I). 04:422. (Part II). 04:496.

GAUMNITZ, BRUCE R.

• The Intricacies of Special-Use Valuation. 04:434.

GAUMNITZ, CAROL B.

• The Intricacies of Special-Use Valuation. 04:434.

GODFREY, HOWARD

• The Phaseout of the Federal State Death Tax Credit. (Part I). 04:96. (Part II). 04:148.

GOODMAN, STEVEN S.

• IRS Further Clarifies Innocent Spouse Equitable Relief. 04:145.

HANSON, RANDALL K.

• Taxation of Damages from Securities Lawsuits. 04:224.

IANNONE, PAUL N.

• Post-JGTRRA Dividend Planning. 04:358.

KARLINSKY, STEWART

• S Corporations: Current Developments. (Part I). 04:636. (Part II). 04:702.

• Tax Planning after AMT Reform. 04:214.

KELLEY, CLAUDIA L.

• Repayments of Business Debt after Business Ceases. 04:566.

LAFFIE, LESLI S.

• For News Notes, see the cover of each issue.

LARKINS, ERNEST R.

• Estimating Marginal Tax Rates When Entering Foreign Markets. (Part I). 04:560. (Part II). 04:630.

LAU, PAUL C.

• A Guide to Foreign Corporation E&P. (Part I). 04:290. (Part II). 04:371.

LUNA, LEANN

• Taxation of Damages from Securities Lawsuits. 04:224.

LUTZ, JAMES

• Employee Benefits & Pensions: Current Developments. (Part I). 04:694. (Part II). 04:756.

MAY, BRUCE E.

• An Analysis of SSTS Interpretation No. 1-2. (Part I). 04:422. (Part II). 04:496.

NORMAN, JOHN M.

• Repayments of Business Debt after Business Ceases. 04:566.

ODRISCOLL, DAVID

• For Tax Trends, see the cover of each issue.

ONEIL, CHERIE

• Tax Planning after AMT Reform. 04:214.

PANNESE, DANNY A.

• Post-JGTRRA Dividend Planning. 04:358.

PONDA, SHONA

• State & Local Taxes: Current Corporate Income Tax Developments. (Part I). 04:156. (Part II). 04:230.

PULLIAM, DARLENE

• The Marriage Penalty after the JGTRRA. 04:284.

RAASCH, BARBARA J.

• FLP Planning after Strangi, Kimbell and Thompson. 04:750.

REINSCH, ROGER

• An Analysis of SSTS Interpretation No. 1-2. (Part I). 04:422. (Part II). 04:496.

SATCHIT, VINU

• FLP Administration Issues. 04:352.

• Trusts, Investment Advisory Fees and the 2% Floor. 04:87.

SAWYERS, ROBY B.

• Reform or Repeal the Transfer Tax System? 04:620.

SCHELL, WAYNE M.

• Proposed Regs. Shed Light on Income Forecast Method. 04:510.

SCHNEIDER, MARK A.

• Corporations & Shareholders: Significant Recent Developments. 04:42.

SMITH, JAMES K.

• Taxation of Damages from Securities Lawsuits. 04:224.

SOLTIS, SANDRA

• A Guide to Foreign Corporation E&P. (Part I). 04:290. (Part II). 04:371.

STEWART, DAVE N.

• Temp. Regs. Limit  Duplicative Stock Losses. 04:36.

SUNDERMAN, TERI L.

• GRAT Planning with S Corp. Stock. 04:502.

SWIFT, KENT

• Limits on Individuals Charitable Deductions. (Part I). 04:296. (Part II). 04:366.

THOMPSON, STEVEN C.

• Temp. Regs. Limit  Duplicative Stock Losses. 04:36.

WALKER, DEBORAH

• Employee Benefits & Pensions: Current Developments. (Part I). 04:694. (Part II). 04:756.

WESTORT, PETER J.

• QTP Contributions by Nonindividuals. 04:683.

WHITLOCK, BRIAN T.

• Significant Recent Developments in Estate Planning. 04:554.

WOOD, ROBERT W.

• Class Actions and the Attorneys Fees Conundrum. 04:428.

ZUPANC, THOMAS

• The Intricacies of Special-Use Valuation. 04:434.

D.C. Currents

PURCELL, THOMAS J., III

• TEC Initiatives. February 04:106.

• TEC Initiatives. May 04:304.

• TEC Initiatives. August 04:515.

• TEC Initiatives. November 04:710.

On the Bookshelf

FINK, PHILIP R.

• March 04:175.

• June 04:388.

• September 04:582.

• December 04:774.

Personal Financial Planning

DIAMOND, IRVING F.

• Extracting Value from Closely Held Corporations. 04:239.

DOYLE, ROBERT K.

• Post-JGTRRA Investment Management Strategies. 04:49.

GRANT, RANDI K.

• Planning for Education Costs. 04:643.

SCHULMAN, MICHAEL DAVID

• Private Annuities as an Aid to Medicaid Eligibility. 04:441.

State & Local Taxes

PETERSON, DANIEL F.

• June 04:380.

• September 04:576.

• December 04:770.

AMITAY, SHARLENE

• California Taxpayer Disclosure Requirements. 04:576.

MCGOWAN, JEFFREY M.

• State Tax Residency Issues. 04:770.

NAKAMURA, KAREN

• State Tax Amnesty Programs: The Advantages and Disadvantages. 04:380.

SALMON, SCOTT

• California Taxpayer Disclosure Requirements. 04:576.

Tax Clinic

BAKALE, ANTHONY S.

• August 04:470.

BECK, ALLEN M.

• October 04:598.

GARAY, MARK

• March 04:131.

GOTTSCHALK, STEFAN

• February 04:71.

KAUTTER, DAVID J.

• January 04:9.

KELLY, TERENCE

• May 04:262.

KOPPEL, MICHAEL D.

• December 04:730.

LERMAN, JERRY L.

• April 04:194.

MADDEN, DAVID

• June 04:330.

OCONNELL, FRANK J., JR.

• September 04:534.

REILLY, KEVIN F.

• November 04:666.

SMITH, ANNETTE B.

• July 04:406.

Tax Education

NELLEN, ANNETTE

• February 04:108.

• May 04:307.

• August 04:518.

• November 04:712.

CHAMBERS, VALRIE

• Training Students to Be Accounting Cops. 04:518.

DENNIS-ESCOFFIER, SHIRLEY

• Current Status of the Tax Curriculum in Accounting Programs. 04:712.

KERN, BETH B.

• Current Status of the Tax Curriculum in Accounting Programs. 04:712.

SCHMIDT, DENNIS

• Useful Websites and Internet Assignments. 04:108.

SWINGEN, JUDYTH A.

• How Does the Tax Sections Strategic Plan Effect Tax Education? 04:307.

Tax Practice & Procedures

ELY, MARK H.

• January 04:52.

• April 04:243.

• July 04:444.

• October 04:646.

BAUMAN, CHRISTINE C.

• ITINsExceptions and Questions. 04:446.

• The Downsized EITC Certification Pilot Program. 04:448.

BUSCHEL, STEPHEN R.

• IRS Initiatives to Decrease Audit Cycle TimesGood Ideas that Need More Work. 04:646.

DAVIS, CONRAD

• Circular 230 and Conflicts of Interest. 04:53.

DOUGHERTY, JAMES

• IRS Announces a Breakthrough Plan. 04:243.

• Joint Audit Planning Process. 04:52.

• New IRS Compliance Initiatives. 04:444.

FIEDELMAN, RONALD S.

• IRS SBSE Priorities: 2004 and Beyond. 04:649.

GILL, KIMBERLY

• Some Contested Liability Trusts Now Listed Transactions. 04:246.

HUMMEL, RONA

• IRS Announces a Breakthrough Plan. 04:243.

• Joint Audit Planning Process. 04:52.

• New IRS Compliance Initiatives. 04:444.

MICHNAY, RUTH ANN

• Office of Taxpayer Burden Reduction. 04:445.

OLMSTEAD, TRENTON S.

• ITIN Application Changes. 04:244.

PARKER, KENNETH M.

• SOL on Individuals Refund Claims. 04:650.

TAYLOR, FRANK

• Procedures for Obtaining Return Copies and Information. 04:245.

TURNER, TOM

• SOL on Individuals Refund Claims. 04:650.

VAN DEVEER, MARK A.

• IRS Guidance on Federal Tax Liens on Entireties Property after Craft. 04:54.

Tax Practice Management

HOLUB, STEVEN F. and T. CHRIS MUIRHEAD

• March 04:172.

• June 04:376.

• September 04:571.

• December 04:766.

GROOMS, W.M.

• Tax Planning for Dividends and Capital Gains. 04:172.

HOLUB, STEVEN F.

• Ethics in Tax Practice. 04:376.

MILLER, MICHAEL R.

• Effects of the SOA on the Accounting Profession. 04:571.

MUIRHEAD, T. CHRIS

• Ethics in Tax Practice. 04:376.

ROSENBERG, SUSAN J.

• E-Filing State Tax Returns. 04:766.

Subject Index

Accounting Methods & Periods

Advance payments. 04:470, 598.

Automatic change, intangibles. 04:261, 330.

Depreciable life, change in. 04:194.

Short tax years, partners and S shareholders. 04:9.

Bankruptcy & Insolvency

Assessment SOLs, effect of bankruptcy. 04:114.

Bankruptcy and OICs. 04:328.

NOLs. 04:523.

Pensions. 04:779.

Charitable Contributions

Conservation easements. 04:603.

Deferred giving techniques. 04:602.

Documentation. 04:176.

Limits on individuals deductions. 04:176, 366.

Consolidated Returns

Attribute reduction. 04:10.

Duplicative stock losses. 04:36.

Intercompany

     interest for tax-exempt investing. 04:534.

     loss disallowance. 04:406.

Corporations & Shareholders

AE tax. 04:584.

AMT planning and reform. 04:214.

Business purpose. 04:193.

Conversion to LLC. 04:666.

Debt instruments and reorganizations. 04:532.

Dividends, post-JGTRRA planning. 04:358.

Fringe benefits of closely held corporations. 04:624, 686.

Liquidation-reincorporation. 04:56.

Nondividend distributions, reporting. 04:776.

Recent developments. 04:42.

Redemptions. 04:310.

Sec. 351, boot and encumbered assets. 04:536.

Sec. 355

     business purpose. 04:262.

     expansion. 04:196.

Schedule M-3. 04:597.

Shareholder acquisition costs. 04:11.

Small business stock, tax planning. 04:667.

Credits Against Tax

Disabled access credit. 04:261.

R&D credit

     documentation regs. 04:331.

     gross receipts. 04:407.

Targeted jobs credit. 04:719.

Depreciation

Income forecast method. 04:510.

Racehorse ownership. 04:72.

R&E credit, gross receipts. 04:407.

Real estate, cost-segregation studies. 04:195.

Secs. 1031 and 1033 property. 04:333.

Trucks and vans (nonpersonal). 04:730.

Employee Benefits & Pensions

Administrative expense allocation. 04:337.

Cafeteria plans. 04:607.

Current developments. 04:694, 756.

Distributions and unrealized appreciation. 04:473.

DOL correction and compliance programs. 04:263.

ERISA, plan participant. 04:313.

ESOPs. 04:271.

Executive compensation. 04:131, 265.

HSAs

     ERISA. 04:392.

     FSA and HRA participants. 04:455.

QTPs, nonindividual contributions. 04:683.

Retirement plan loans. 04:197.

Rollover contributions. 04:251.

Sec. 404(c) plan. 04:665.

Sec. 1042 gain deferral. 04:269.

SESOPs. 04:253.

Estates, Trusts & Gifts

Administrative expense, interest on bequest. 04:393.

Basis for surviving spouse, pre-1977 property. 04:732.

Bona fide sales. 04:670.

Crummy powers. 04:198.

Estate

     administration tips. 04:608.

     planning with pensions. 04:731.

FLPs

     administration issues. 04:352.

     discounting. 04:74.

     planning. 04:750.

Gift adjustment clauses. 04:74.

GRATs

     S corporation stock.  04:502.

     zeroed out. 04:474.

GST

     deemed allocations, election out. 04:674.

     IDGT. 04:671.

     missed allocations. 04:597.

     predeceased parent rule. 04:734.

IRAs

     rollovers. 04:58.

     subdivided trusts. 04:115.

Recent developments. 04:554.

Repeal or reform of transfer tax system. 04:620.

Special use valuation. 04:434.

State death tax credit phaseout. 04:96, 148.

Trusts

    divorce and estate planning. 04:329.

investment advisory fees and 2% floor. 04:87.

UGMA. 04:405.

Excise Taxes

Treaty-based exemption. 04:132.

Exempt Organizations

Audit issues. 04:610.

Commerciality doctrine. 04:77.

Endowment investment income. 04:272.

EO issues. 04:6.

Excess benefit transaction. 04:410.

Form 990. 04:200.

Joint ventures with for-profit entities. 04:133.

Net investment income. 04:202.

Expenses

Business

     below-market financing. 04:12.

     capitalize vs. expense

acquisitive and capital transactions. 04:339.

aircraft maintenance costs. 04:77.

environmental remediation. 04:252, 274.

intangibles, final regs. 04:203.

private jets. 04:204.

Sec. 179. 04:611.

separate and distinct asset test. 04:411.

Interest, see Interest Income & Expense.

M&IE, use of statistical sampling. 04:539.

Termination, settlement and redemption payments. 04:341.

Transportation, metropolitan area. 04:665.

Travel allowance. 04:458.

Foreign Income & Taxpayers

Check-the-box

     final regs. 04:135.

     FPHC taint. 04:475.

E&P. 04:290, 371.

Entering foreign markets. 04:560.

Estimating marginal rates. 04:630.

Export tax benefits. 04:542.

Japan treaty. 04:533.

JGTRRA, dividend rate eligibility. 04:14.

Partnerships and NRA estate planning. 04:675.

PFICs. 04:342.

QSF regs. 04:82.

Reporting interests in foreign accounts. 04:136.

Totalization agreements. 04:544.

U.K. tax treaty. 04:139.

Withholding

     foreign partners. 04:14.

     nonresident aliens. 04:136.

Gains & Losses

At-risk regulations, disqualifying interests. 04:676.

BIGs, Sec. 382. 04:16.

Casualty losses. 04:116.

Disposition of property in satisfaction of debt. 04:612.

Like-kind exchange, avoiding gain recognition. 04:451.

Notional principal contract regs. 04:414.

Real estate development. 04:734.

Sec. 1271(a). 04:415.

Theft losses, declining stock value. 04:394.

Gross Income

Class action attorneys fees. 04:59, 428.

Contingent fees. 04:128, 181, 479, 729.

Debt reduction on employee stock options. 04:345.

REIT investments. 04:275.

Individuals

Alimony

     property settlement payment. 04:118.

     tax indemnity payments. 04:83.

     unallocated support payments. 04:524.

Damages from securities lawsuits. 04:224.

Dependency exemption for noncustodial parents. 04:129, 206.

Divorce

     business succession planning. 04:744.

     transfers to NQSOs. 04:468.

HSAs. 04:68.

JGTRRA planning

     HSAs. 04:68.

     marriage penalty. 04:284.

Inflation adjustments. 04:7.

Innocent spouse. 04:145, 182, 655.

Investing in tax efficient funds. 04:716.

IRAs

     NOLs. 04:481.

     60-day rollover. 04:484.

Personal residence, Sec. 121 exclusion. 04:30.

Reimbursements for OTC drugs. 04:18.

Retirement

     community medical fees. 04:735.

     planning. 04:164, 729.

Same-sex marriages. 04:738, 742.

Tax Freedom Day. 04:533.

Interest Income & Expense

Bad debt. 04:587.

Cessation of business, payment of debt. 04:566.

Earnings-stripping. 04:545.

Education loan interest. 04:614.

OID, private annuity. 04:184.

Legislation

American Jobs Creation Act. 04:750.

Economic Growth and Tax Relief Reconciliation Act of 2001. 04:96,148, 284, 484, 554, 620, 674, 756.

Jobs and Growth Tax Relief Reconciliation Act of 2003. 04:14, 21, 49, 68, 284, 358, 515, 611.

Sarbanes-Oxley Act of 2002. 04:571.

Working Families Tax Relief Act of 2004. 04:728.

LLCs & LLPs

Holding period, of interests in. 04:679.

Self-employment tax. 04:206, 404, 616.

Series LLCs. 04:416.

Partners & Partnerships

Assessments. 04:679.

Assumption of partners liability. 04:140.

At-risk limits on real estate activity. 04:112.

Current developments. 04:100.

Deficiency assessment. 04:260.

Division, planning. 04:390.

Like-kind exchanges. 04:209.

Minimum gain. 04:653.

Partnership installment obligations. 04:6.

Partnership interests

     converting to corporation. 04:545.

     formless conversions. 04:468.

Penalties

     individual returns. 04:485.

     late-filing relief. 04:489.

Sec. 704(c). 04:210, 546.

SE exemption for retirement payments. 04:185, 488.

SOL on nonpartnership items. 04:122.

Passive Activities

Self-rental. 04:780.

Pensions

See Employee Benefits & Pensions.

Personal Financial Planning

AICPA Eldercare services. 04:404.

Closely held corporations. 04:239.

Education expense planning. 04:643.

JGTRRA investment strategies. 04:49.

Private annuities and Medicaid.  04:441.

Practice & Procedures

Auditing

     IRS breakthrough plan. 04:243.

     planning. 04:52.

Circular 230, conflicts of interest. 04:53.

EITC pilot program. 04:448.

Ethics. 04:376.

IRS

     compliance initiatives. 04:444.

     IDRs. 04:646.

     SBSE priorities. 04:649.

ITINs. 04:244.

Office of taxpayer burden reduction.
04:445.

Returns, obtaining copies. 04:246.

SSTS Interpretation No. 1-2. 04:422, 496.

Tax Court, enhanced attorneys fees award. 04:316.

Tax liens, entireties property. 04:54.

Tax shelters, contested liability trusts.
04:246.

TEC initiatives. 04:304, 515, 710.

Practice Management

E-filing state tax returns. 04:766.

Elderly clients. 04:469.

Ethics. 04:376.

Planning dividends and capital gains.  04:172.

SOA and the accounting profession.  04:571.

Procedure & Administration

Adequate disclosure guidelines. 04:61.

Disregarded entities and tax liabilities. 04:329.

Electronic

     Federal tax payment system. 04:128.               

     filing. 04:69.

FICA

     student exception. 04:320.

     teachers severance pay. 04:781.

Information reporting

     employment tax discrepancies. 04:664.

     JGTRRA capital gain changes. 04:21.

     payments in lieu of dividends. 04:20.

ITIN program revisions. 04:69, 244.

Payroll taxes on household employees. 04:84.

Preparer signature options. 04:596.

Refunds

     interest. 04:418.

     SOL. 04:650.

Responsible persons. 04:490, 588, 617.

Small business compliance tools. 04:405.

Tax preparer regulation comments. 04:532.

W-2, HSA reporting. 04:128.

Withholding on payments incident to divorce. 04:656.

S Corporations

All-events test. 04:22.

Basis computation. 04:276.

Compensation. 04:280.

Controlled group elections and Sec. 179. 04:739.

Current developments. 04:636, 702.

ESOPs. 04:253, 493.

Excess net passive income. 04:739.

PALs, loss deductibility. 04:520.

QSub

     BIG. 04:681.

     checklist. 04:24.

S stock

     redemption rights. 04:85.

  structuring payments to shareholders. 04:248.

Special Industries

Captive insurance arrangements. 04:419.

State & Local Taxes

Amnesty. 04:380.

California

     disclosure rules. 04:576.

     franchise tax accrual. 04:420.

Corporate income tax developments. 04:156, 230.

Illinois wheel of unity doctrine. 04:278.

Louisiana nexus issues. 04:348.

Massachusetts same-sex marriages. 04:742.

New York

     apportionment issues. 04:349.

     royalty deductions. 04:350.

Professional athletes and entertainers.
04:85.

Residency issues. 04:770.

Tax Education

AICPA Tax Section Strategic Plan. 04:307.

Curriculum. 04:712.

Internet assignments and research. 04:108.

Student training. 04:518