 Author
Tax Policy Group, Deloitte Tax LLP
Senate Housing Stimulus Bill Stalls Due to Energy Spat; Post-Recess Action Expected – Plans to get a housing tax stimulus bill through the Senate before the Independence Day recess fell apart due to disagreements over a proposed energy tax extenders amendment. IRS Permits Rolling-Average Inventory Valuation – Departing from its long-held position, the IRS announced in Rev. Proc. 2008-43 that it generally will view a rolling-average method that is used to value inventories for financial accounting purposes as clearly reflecting income for federal income tax purposes. IRS Regs Target Nonrecognition Transactions Involving CFCs – The IRS issued temporary and proposed regulations aimed at shutting down certain nonrecognition transactions in which a controlled foreign corporation (CFC) acquires U.S. property without resulting in an income inclusion to the CFC’s U.S. shareholders. Proposed Regs Address Application of Accrual Rules to DB Plans Using ‘Greater Of’ Formulas – Making good on a pledge from earlier this year, the IRS released proposed regulations on applying the accrual requirements under section 411(b) (the "anti-backloading rules") to defined benefit plans that pay benefits based on the "greater of" two or more separate benefit formulas. IRS Issues Proposed Regulations on Tax Return Preparer Penalty – The IRS took the first step in its overhaul of the tax return preparer penalty regime by issuing proposed regulations under sections 6694 and 6695, and related provisions.
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