Fuller Tax Blog Blog

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Should Dividends Received Deduction Amounts be Included on Schedule M-1/M-3?

Those preparing corporate income tax returns may sometimes wonder whether a C corporation that claims the dividends received deduction needs to enter the amount of the dividends received deduction on either the C corporation’s Form 1120 Schedule M-1 (on page 5 of the Form 1120) or on the Form 1120 Schedule M-3 (if the C corporation uses the M-3 instead)....

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IRS Eliminates the Appeals Arbitration Program

The IRS today announced via Revenue Procedure 2015-44 that the Appeals arbitration program established under Revenue Procedure 2006-44 and originally piloted under Announcement 2000-4 will be eliminated. In the Revenue Procedure announcement, the IRS indicated that “during the fourteen-year period in which arbitration was available, only two cases were settled using arbitration.” Thus, because the purpose of the program “has...

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Are S-Corp Distributions Required to be Proportionate for all Shareholders?

Small business owners often wonder whether it’s acceptable to make disproportionate distributions to a shareholder of an S Corporation. The following example paints a picture of a situation where business owners may consider this possibility: Tom and Jeff own an S Corporation called TJ Engineering as equal shareholders (i.e. each shareholder owns 50% of the stock of the S Corporation)....

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Q4 2015 IRS Interest Rates Remain the Same

The Internal Revenue Service announced Friday that interest rates for the fourth quarter of 2015 (beginning October 1, 2015) would remain the same through the end of the year, thus keeping the rates at: Individuals and Trusts: 3.0% for overpayments and underpayments Corporations: 2.0% for overpayments (5.0% for “large corporate underpayments”) and 3.0% for underpayments of corporations, and 0.5% for...