Sections of IRC Code Flashcards Preview

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Flashcards in Sections of IRC Code Deck (21):
1

Deferred Compensation

404

2

S Corp wants to use a fiscal year. There are 2.

444
1378(a)

3

What will terminate an S Corps status

1362(d)(3)

4

Where are UNICAP rules

263

5

Return preparers must:
Keep a copy of the return or a list of names of returns prepared
Keep a list of the name of the preparer who prepared the return

eturn preparers must:
Keep a copy of the return or a list of names of returns prepared
Keep a list of the name of the preparer who prepared the return
Make the copy of the returns or the lists available for the inspection of the commissioner upon request

6

Tax return preparers are required to maintain a complete copy of the return for 3 years after the return period

or

Maintain a list of ID numbers, names and tax years for whom the return are prepared and to keep the list for three years.

7

Capitalization of Interest

UNICAP rules title 26
Subtitle A - Income Taxes
Subchapter 1 - Normal Taxes and Surcharges
Subchapter B - Computation of Taxable Income
Part IX - Items Not Deductible
Section 263(a) - Capitalization and inclusion in inventory costs of certain expenses

8

Items not deductible:

Examples

Subtitle A: Income TAxes
Chapter 1: Normal Income Taxes and Surcharges
Subchapter B: Computation of Taxable Income
Part IX Items not deductible

UNICAP capitalizaton rules
Personal expenses
Expenses relating to tax exempt income
Related party transactions
Organizations formed to evade income tax (personal service corps)

9

Order: Title - S- C - S - P -S
TSC SPS
TCP
(remember Title - then sub - Chapter - then sub - Part - then section)

Title
Sub-Title
Chapter
Sub-Chapter
Part
Section

10

Subtitle A is -
Chaper 1 is -
Subchapter A -
Subchapter B -

Subtitle A = income taxes, most parts, don't confuse with subtitle with Chapter A and B
Chapter 1 - normal income taxes

Subchapter A - determination of tax liability, here are the filing status', tables, corporate rates, tax credits, it's computation of tax stuff, but rates applied and credits, not deductions, stupid, personal exemptions are in B

Subchapter B - Computation of Taxable Income - included, excluded, deductions (including standard), itemized, special deductions for corporations  

11

Where are the tax credits?

TCP title, subtitle, chapter, subchapter, part
Chapter 1, Subchapters most important, think subchapter S
Subchapter A: Determination of Tax Liability

12

Accounting Periods and Methods

T-C-P. Title-Subtitle-Chapter -Subchapter
Numbers, then letters
Title 26 -Subtitle A - Chapter 1 - Subchapters

Subchapter E - Accounting Periods and Methods
A: Tax Liability (computation, tax tables)
B: Taxable Income (exemptions, deductions)
C: Corporations
D: Deferred Income
E: Accounting Periods and Methods
F: Exempt Organizations
G: Corps used to Avoid TAx (Accumulated E and P, Personal Holding Companies)
J: Estates, Trusts
K: Partnerships
O: DISPOSITION OF PROPERTY
P: Captial Gains and Losses

13

Where are personal holding companies.

T-C-P, number, letter, number
Subchapter G - Corporations Used to Avoid Tax on Shareholders
Think G for greedy

14

Capital Gains and Losses?
Gain or Loss on Disposition of Property?
Partnerships?

Subchapter P - cap gains and losses
Subchapter O - disposition of Property
Subchapter K - Partnerships

15

What is subchapter E

Accounting periods and Methods

16

You want to know how to compute your taxable income?

Subchapter B - is it deductible or does it have to be capitalized.

17

ANYTHING THAT IS EXCLUDED FROM GROSS INCOME

SUTITLE A INCOME TAXES
CHAPTER 1 NORMAL TAXES AND SURCHARGES
SUBCHAPTER B COMPUTATION OF TAXABLE INCOME
PART III ITEMS SPECIFICALLY EXCLUDED FROM GROSS INCOME

18

PROPERTY TRANSFERS DIVORCE FOR EXAMPLE
NONTAXABLE EXCHANGES, ALL THAT

SUBCHAPTER 0 GAIN OR LOSS ON DISPOSITIONS OF PROPERTY

19

FORMATION OF CORPORATION TRANSFER OF PROPERTY

SUBCHAPTER C CORPORATE DISTRIBUTIONS AND ADJUSTMENTS
351

20

Estimated Tax

Obvious: In subtitle F Administration
Chapter 68 additions to the tax amount, assessments and penalties

Subtitle A Additions to the Tax
Part 1 general provisions
166x failure by corporations to pay estimated tax

21

organizational costs of PARTNERSHIPS
organizational costs of C Corps
start up costs

SUBCHAPTER K - PARTNER AND PARTNERSHIPS 709 or 6
Treatment of Organizational Costs
failed to notice it said partnership

SUBCHAPTER B - Computation of TAxable Income
Notice how it says nothing about corporations
268 B deals specifically with organizational costs of corporations

Start Up - SCHAPTER B - 195 just says taxpayer