SubChapter M Tax: IRS Notice 2010-49 - request for comments on modification of regs under 382 for treatment of non-5% shareholders

SubChapter M Tax: IRS Notice 2010-49 - request for comments on modification of regs under 382 for treatment of non-5% shareholders:

"REQUEST FOR COMMENTS: MODIFICATION TO THE REGULATIONS UNDER � 382 REGARDING THE TREATMENT OF SHAREHOLDERS WHO ARE NOT 5-PERCENT SHAREHOLDERS

Notice 2010-49

This notice invites public comments relating to possible modifications to the regulations under � 382 of the Internal Revenue Code regarding the treatment of shareholders who are not 5-percent shareholders (Small Shareholders)."

SubChapter M Tax: irs notice 2010-50 - guideance under 382 for measuring ownership shifts

SubChapter M Tax: irs notice 2010-50 - guideance under 382 for measuring ownership shifts:

"Part III - Administrative, Procedural, and Miscellaneous

SECTION 382(l)(3)(C)

Notice 2010-50

This notice provides guidance under � 382 of the Internal Revenue Code for measuring owner shifts of loss corporations that have more than one class of stock outstanding, and, in particular, regarding the effect of fluctuations in the value of one
class of stock relative to another class of stock (fluctuations in value). It provides interim guidance to the effect that the Internal Revenue Service (IRS) will accept certain methodologies for taking into account or not taking into account fluctuations in value, and identifies one methodology that the IRS views as inconsistent with � 382(l)(3)(C). It also requests comments to assist in the development of future guidance. Any terms and definitions used in this notice have the same meaning as they do in � 382 and the �382 regulations unless otherwise provided in this notice."

Taxation of Business Development Companies: IRS Notice 2010-33 -frivolous positions under 6702(c)

Taxation of Business Development Companies: IRS Notice 2010-33 -frivolous positions under 6702(c):

"Part III – Administrative, Procedural, and Miscellaneous

Frivolous Positions – This notice lists positions identified as frivolous for purposes of section 6702(c) of the Code. Notice 2008-14, 2008-4 I.R.B. 310, modified and superseded.

Notice 2010-33"

SubChapter M Tax: From Deloitte's State Tax Matters

SubChapter M Tax: From Deloitte's State Tax Matters: "Multistate Tax Alerts:
Colorado reportable and listed transaction disclosure – July 1 deadline approaching
On April 2, 2009, Colorado adopted House Bill 09-1093, which requires taxpayers to disclose participation in “reportable” and “listed transactions.” Taxpayers subject to these disclosure provisions include corporations, individuals, estates, trusts, partnerships, S corporations, and other entities required to file an income tax return under Col. Rev. Stat. � 39-22-601. The new law also requires “material advisors” to disclose reportable and listed transactions and maintain a list of persons advised with respect to such transactions. Significant taxpayer and material advisor penalties are imposed for failure to comply with these requirements."

SubChapter M Tax: From Deloitte's State Tax Matters

SubChapter M Tax: From Deloitte's State Tax Matters: "ncome/Franchise:
Connecticut: New law requires defined “captive REITs” to add back federal dividends paid deduction
H.B. 5494, signed by gov. 6/7/10. Effective July 1, 2010, and applicable to income years commencing on or after January 1, 2010, new law requires the addition of the federal dividends paid deduction by a defined captive real estate investment trust (REIT). Specifically, the new law requires captive REITs that file state corporation business tax returns to add back to their federal taxable income the amount of dividends deductible under Internal Revenue Code Sec. 857(b)(2) in determining their state net income."

SubChapter K Tax: From Deloitte's State Tax Matters

SubChapter K Tax: From Deloitte's State Tax Matters: "Income/Franchise:
Delaware: New law requires nonresident withholding on gains from real estate
H.B. 349, signed by gov. 6/11/20. Effective for tax periods commencing after December 31, 2010, new law requires nonresident persons (corporations, individuals, or pass-through entities) that sell real estate owned in Delaware to declare and pay their estimate of the associated corporate/individual income tax due on the gain recognized from the sale before the new deed is recorded."

Deloitte LLP | Final Rule Changes to Investment Adviser Custody Rule, Rule 206(4)-2

Deloitte LLP | Final Rule Changes to Investment Adviser Custody Rule, Rule 206(4)-2: "Final Rule Changes to Investment Adviser Custody Rule, Rule 206(4)-2
Navigating the road ahead


On December 30, 2009, the Securities and Exchange Commission (SEC) finalized the amendments to the custody requirements of Rule 206(4)-2 (the “Rule”), under the Investment Advisers Act of 1940. The Rule is effective March 12, 2010."

ICI - SEC Staff Responds to Questions About Money Market Fund Reform

ICI - SEC Staff Responds to Questions About Money Market Fund Reform: "RE: SEC STAFF RESPONDS TO QUESTIONS ABOUT MONEY MARKET FUND REFORM



The Staff of the SEC’s Division of Investment Management has prepared responses to questions related to Rule 2a-7, and other rules applicable to money market funds in light of the amendments recently approved by the SEC. [1] The questions and answers cover the following areas: compliance dates and implementation; liquidity; stress testing; quality; and website posting. The staff has indicated that it expects to update the document from time to time to include responses to additional questions."

ICI - Institute Submits Additional Comments on Proposed Cost Basis Reporting Requirements

ICI - Institute Submits Additional Comments on Proposed Cost Basis Reporting Requirements: "RE: INSTITUTE SUBMITS ADDITIONAL COMMENTS ON PROPOSED COST BASIS REPORTING REQUIREMENTS



The Institute has submitted additional comments (attached) to the Internal Revenue Service (the “IRS”) and the Treasury Department on the proposed regulations on cost basis reporting. [1] Specifically, the Institute urges the IRS and Treasury Department to adopt workable default rules for gifted and inherited shares."

ICI - SEC Staff Responds to Questions About Money Market Fund Reform

ICI - SEC Staff Responds to Questions About Money Market Fund Reform: "RE: SEC STAFF RESPONDS TO QUESTIONS ABOUT MONEY MARKET FUND REFORM



The Staff of the SEC’s Division of Investment Management has prepared responses to questions related to Rule 2a-7, and other rules applicable to money market funds in light of the amendments recently approved by the SEC. [1] The questions and answers cover the following areas: compliance dates and implementation; liquidity; stress testing; quality; and website posting. The staff has indicated that it expects to update the document from time to time to include responses to additional questions."

From Deloitte's Tax News & Views

Tax News & Views

Regs forthcoming on domestic partnerships used to block subpart F income, IRS says

The Internal Revenue Service on May 14 announced in Notice 2010-41 that it will issue regulations classifying certain domestic partnerships as foreign for purposes of determining which U.S. shareholder must include in its gross income a pro rata share of a controlled foreign corporation’s (CFC’s) subpart F income. The regulations will apply to the taxable years of domestic partnerships ending after May 13, 2010.

ICI - ICI Submits Comments to the IRS on Stripping Transactions for Qualified Tax Credit Bonds

ICI - ICI Submits Comments to the IRS on Stripping Transactions for Qualified Tax Credit Bonds: "RE: ICI SUBMITS COMMENTS TO THE IRS ON STRIPPING TRANSACTIONS FOR QUALIFIED TAX CREDIT BONDS



The Institute has submitted the attached letter to the Internal Revenue Service (the “IRS”) and the Treasury Department commenting on interim guidance (Notice 2010-28) recently released by the government regarding stripping transactions for qualified tax credit bonds. [1] Specifically, the Institute recommends that the IRS and Treasury Department expand the list of persons with whom a taxpayer may hold a stripped credit coupon, so that a regulated investment company (a “RIC”) clearly is allowed the tax credit when it holds a stripped credit coupon in an account with a custodian. The Institute also recommends that the IRS simplify the information reporting requirements for tax credit bonds and stripped credit coupons with respect to RICs and their shareholders."

IRS Announcement 2010-30 - Draft Schedule and Instructions for Uncertain Tax Positions Proposal

IRS Announcement 2010-30 - Draft Schedule and Instructions for Uncertain Tax Positions Proposal

Part IV - Items of General Interest

Draft Schedule and Instructions for Uncertain Tax Positions Proposal Announcement 2010-30

In Announcement 2010-9, 2010-7 I.R.B. 408, and Announcement 2010-17, 2010-13 I.R.B. 515, the Internal Revenue Service announced it is developing a schedule requiring certain taxpayers to report uncertain tax positions on their tax returns. The Service is now releasing the draft schedule, Schedule UTP, accompanied by draft instructions that provide a further explanation of the Service’s proposal. The Service invites public comment on the draft schedule and instructions. The schedule and instructions will be finalized after the Service has received and considered all of the comments regarding the overall proposal and the draft schedule and instructions.

The draft schedule and instructions provide that, beginning with the 2010 tax year, the following taxpayers with both uncertain tax positions and assets equal to or exceeding $10 million will be required to file Schedule UTP if they or a related party issued audited financial statements:

􀂚 Corporations who are required to file a Form 1120, U.S. Corporation Income Tax Return;

􀂚 Insurance companies who are required to file a Form 1120 L, U.S. Life Insurance Company Income Tax Return or Form 1120 PC, U.S. Property and Casualty Insurance Company Income Tax Return; and

􀂚 Foreign corporations who are required to file Form 1120 F, U.S. Income Tax Return of a Foreign Corporation.

The draft schedule and instructions also provide that, for 2010 tax years, the Service will not require a Schedule UTP from Form 1120 series filers other than those identified above (such as real estate investment trusts or regulated investment companies), pass-through entities, or tax-exempt organizations. The Service will determine the timing of the requirement to file Schedule UTP for these entities after comments have been received and considered.

The Service is reviewing the extent to which the proposed Schedule UTP duplicates other reporting requirements, such as Form 8275, Disclosure Statement; Form 8275-R, Regulation Disclosure Statement; Form 8886, Reportable Transaction Disclosure Statement; and the Schedule M-3, Net Income (Loss) Reconciliation for Corporations With Total Assets of $10 Million or More. The draft instructions provide that a taxpayer will be treated as having filed a Form 8275 or Form 8275-R for tax positions that are properly reported on Schedule UTP. The Service is considering other circumstances under which a tax position reported on Schedule UTP need not be separately reported elsewhere on the tax return or another disclosure statement.