2009 Index 607 I
Citation Index
Internal Revenue Code (IRC)
§1 … 365§11 … 365§11(b)(2) … 371§24(d) … 527§25 … 144§25(a)(2) … 149§25(c)(1)(B) … 144§25(d)(1) … 149§25(e)(1)(A) … 145§25(i) … 149§25A(i) … 154, 420§25A(i)(1) … 154§25A(i)(2) … 154§25A(i)(3) … 150§25A(i)(4) … 154§25A(i)(7) … 157§28 … 277§30B … 528§32 … 526§32(c)(2) … 262§36 … 528§38 … 512§38(c)(1) … 214§38(c)(4) … 214§39(a)(1) … 214§41 … 512§45(a)(2) … 193§45(b)(2) … 193§45(d) … 193§48(a)(5)(C) … 193§48(d)(1) … 193§51 … 218§51(b)(3) … 229§51(c)(4) … 214§51(d)(13) … 214§51(d)(14)(B)(i) … 215§51(d)(14)(B)(ii) … 217§51(d)(2) … 215§51(d)(7)(B)(2) … 229§51(e)(1)(B) … 229§51(f)(1) … 229§51(h)(1)(A) … 229§51(i) … 218§51(j) … 233§51(k)(1) … 233§51(k)(2) … 218§52 … 233, 512
§52(a) … 243§52(b) … 243§52(b)(1) … 434§53 … 512§54AA … 443§55(b)(4) … 367§55(e) … 275§55(e)(1)(D) … 367§56(a)(1) … 266§56(b)(1) … 266§56(d)(1)(A) … 266§56(d)(2)(A) … 266§56(d)(3) … 266§56(g) … 275§58(a) … 266§61 … 535, 542, 544–545§61(a)(12) … 245, 294, 515§67 … 366, 555§67(a) … 200§68 … 137, 366§72 … 541§72(p)(2) … 333, 335§72(t) … 327, 555, 571–572, 574§72(t)(2)(A)(ii) … 350§72(t)(2)(A)(iv) … 571–572§72(t)(2)(E) … 571§72(t)(4)(A)(ii)(I) … 571§72(t)(4)(A)(ii)(II) … 571§83(b) … 161§85 … 555§86 … 540§102 … 515§103 … 443§104 … 540, 542§105 … 531§108 … 170, 172, 246, 277, 515,
567§108(a)(1)(A) … 245§108(a)(1)(B) … 245§108(a)(1)(C) … 245§108(a)(1)(D) … 245§108(a)(1)(E) … 245§108(b) … 245§108(b)(5) … 246§108(c) … 246§108(f) … 174, 245§108(i)(3)(B) … 430§111(a) … 38§121 … 118–119, 123, 562§121(a) … 122§121(b)(4) … 118
§121(b)(4)(C)(i) … 118, 123§121(b)(4)(C)(ii)(I) … 122§121(b)(4)(C)(ii)(II) … 122§121(b)(4)(C)(ii)(III) … 123§121(d)(6) … 122§121(d)(7) … 123§126 … 471§143(m) … 149§143(m)(4)(E) … 149§151(d)(2) … 42§151(d)(3)(B) … 112§151(d)(3)(E) … 112§151(d)(3)(F) … 112§152 … 41§152(b)(1) … 42§152(b)(3)(B) … 42§152(c) … 50§152(c)(3)(A) … 45§152(c)(4) … 53§152(d)(2)(A) … 218§152(e) … 531§152(f)(2)(B) … 45§152(f)(3) … 57§162 … 210, 366, 518, 524, 546,
562, 577, 579–580, 582§162(a)(1) … 392§162(a)(3) … 284§162(f) … 200§163 … 562§163(g) … 145§163(h)(2)(A) … 202§163(h)(3) … 562§163(h)(3)(A) … 562§164 … 562§165 … 135, 518, 521, 530§165(a) … 135, 198§165(b) … 135§165(c) … 135§165(c)(2) … 200§165(c)(3) … 138§165(e) … 138§165(h)(1) … 137§165(h)(2) … 137§167 … 286, 546§168 … 512§168(k) … 201, 490§168(k)(4) … 512§170 … 558–560§170(b)(1)(A)(ii) … 332§170(b)(1)(G) … 262§170(b)(2) … 367
CODE SECTIONS
2009 Workbook
Copyrighted by the Board of Trustees of the University of Illinois. This information was correct when originally published. It has not been updated for any subsequent law changes.
608 2009 Index
§170(b)(2)(B)(i)(II) … 367§170(d)(2) … 367§170(f)(8)(A) … 559§172 … 518, 521§172(b)(1)(B)(i) … 242§172(b)(1)(F)(ii)(I) … 243§172(b)(1)(F)(ii)(II) … 244§172(b)(1)(F)(ii)(III) … 244, 469§172(b)(1)(F)(iii) … 522§172(b)(1)(G) … 244, 469§172(b)(1)(H) … 140, 242–243,
433§172(b)(1)(H)(i) … 432§172(b)(1)(H)(iv) … 522§172(b)(3) … 469§172(d)(4) … 200, 268§172(d)(4)(C) … 522§172(d)(5) … 268§172(d)(7) … 268§172(h) … 268§172(i)(3) … 469§179 … 169, 517§179(b)(6) … 201§180 … 459, 472§195(b)(1) … 470§196 … 214§199 … 235, 268, 367, 479§199(c)(4) … 479§199(d)(3) … 480, 483§199(d)(3)(A)(ii) … 481§199(d)(3)(B) … 483§199(d)(3)(C) … 480§199(d)(3)(D) … 480§213 … 574§213(d)(1)(C) … 131§215 … 533§217 … 555§219 … 573§223(b)(7) … 125§223(b)(8)(A) … 127§223(d)(2)(A) … 131§223(d)(2)(B) … 130§223(d)(2)(C) … 130§223(d)(2)(C)(ii) … 130§262 … 579§263 … 210§263(a) … 170§263(a)(1) … 208§263(g) … 454§263A … 208§263A(e)(4) … 460, 469§266 … 166§267 … 279–280, 282–283, 289§267(a)(1) … 285§267(a)(2) … 282
§267(b) … 280, 282, 295, 304, 317§267(g) … 285§269 … 275§274 … 577, 580§274(d)(4) … 202§274(n) … 581§274(n)(3)(B) … 581§280(a)(1) … 209§280(a)(1)(E) … 209§280A … 284§280A(g) … 284§280C(a) … 229§280F(c) … 202§280F(d)(5) … 200§301 … 365§302(b) … 311§311(b) … 388§318 … 279, 281, 289§331 … 397§331(a) … 391§332 … 397§334(a) … 397§336 … 397§336(a) … 391§336(d)(1) … 397§336(d)(1)(A) … 282§336(d)(2) … 397§336(d)(2)(A) … 183§337 … 397§351 … 182, 381–382§351(b) … 374§357(c) … 379§368(c) … 381§381 … 275§382(n) … 275§401 … 555§401(a) … 333§401(a)(4) … 332§401(a)(9) … 346§401(a)(9)(C) … 349§401(a)(9)(H) … 117§401(a)(26) … 332§401(g) … 332§402(c)(11) … 360§402(e)(4)(A) … 362§403(b) … 332§404 … 531§408 … 555§408(a)(3) … 328§408(d)(3)(c)(ii) … 345§408(e)(2) … 328§408(m) … 328§408A(c)(3) … 114§408A(c)(5) … 115§408A(d)(1) … 115
§408A(d)(3)(A)(ii) … 115§408A(d)(3)(A)(iii) … 114–115,
319§408A(d)(3)(F) … 327§410(b) … 332§414(m) … 243§414(o) … 243§414(v)(6)(C) … 343§416 … 332§419(e) … 286§422 … 161§423(c) … 160§441(i)(1) … 365§448(a) … 367§448(b) … 367§448(c)(2) … 243, 367, 434§448(c)(3)(D) … 367§448(d)(2) … 371–372§451 … 468, 543§451(d) … 465–466, 468§453 … 287, 289§453(e)(5) … 288§453(e)(8) … 289§453(f)(2) … 289§457(e)(18) … 343§461 … 529, 531§465 … 367, 517§469 … 134, 367, 391, 517, 568–
569§469(c)(7)(B) … 134§469(c)(7)(B)(ii) … 134§469(c)(7)(C) … 133–134§469(g)(1)(B) … 283§469(h) … 213§475 … 517, 525§475(f) … 520§481 … 525§483 … 289–290§501(c)(3) … 174, 332§529 … 421§529(e)(3)(B)(ii) … 155§530 … 394§531 … 369§532(a) … 369§532(c) … 370§533(a) … 370§533(b) … 370§535 … 369§535(a) … 370§535(c) … 370§535(c)(2)(B) … 370§537(a)(2) … 370§537(b)(1) … 370§541 … 371§547 … 371
2009 Workbook
Copyrighted by the Board of Trustees of the University of Illinois. This information was correct when originally published. It has not been updated for any subsequent law changes.
2009 Index 609 I
§691 … 486§691(a)(2) … 347§691(c) … 362, 486, 488§704 … 433, 517§707(b) … 318§707(b)(1) … 295, 304§721(a) … 390§721(d) … 390§731 … 391§731(a) … 390§732(b) … 180§737 … 390§752(a) … 390§752(b) … 390§1001 … 391§1012 … 378, 490§1012(c) … 166§1012(d) … 166§1014 … 160, 487§1014(a)(1) … 175, 486§1017 … 171, 246§1031 … 168, 294, 563–564§1031(d) … 490§1031(f) … 565§1031(f)(2)(C) … 565§1031(f)(4) … 565§1041 … 285§1041(a) … 285§1041(c) … 285§1091 … 162§1092 … 454§1211 … 137, 367§1212 … 367§1212(b) … 253§1221 … 451, 517, 519–520, 558§1221(1) … 173§1221(a)(3)(B) … 558§1221(a)(7) … 453§1221(b)(2)(A) … 452§1222 … 558§1223(11) … 487§1231(b)(3)(A) … 487§1231(b)(3)(B) … 487§1239 … 282, 286, 390§1244 … 186§1245 … 169, 174§1250 … 174, 489§1255 … 471§1256 … 453–454§1256(b) … 453§1256(f)(5) … 453§1271(a) … 188§1274 … 289§1311 … 144§1341 … 137, 144
§1361 … 525, 566§1361(d)(3) … 387§1361(d)(4) … 387§1362 … 566§1362(d)(3) … 386§1366 … 433, 523, 525§1366(f)(2) … 384§1367(b)(3) … 186§1368(e)(3) … 386§1371(b) … 275§1374 … 383–384, 432, 525§1374(b)(2) … 384§1374(d)(2)(A)(ii) … 385§1374(d)(6) … 385§1374(d)(7) … 383§1375(a)(1) … 386§1382(b) … 480, 483§1382(c) … 480§1398 … 516§1401 … 535, 555, 577§1402 … 475, 535, 577§1402(a) … 457, 578§1402(a)(1) … 197, 474§1402(b) … 457, 578§1504(a) … 276, 305§1561 … 307§1563(a) … 233, 305§1563(d)(1)(B) … 305§1563(d)(2)(B) … 307§2001 … 539§2031 … 486§2032 … 488§2038 … 539§2511 … 539§2518 … 348, 360, 362§3121 … 537§3121(d) … 538§3306(b)(1) … 233§3402(s) … 206§3505 … 102§4974 … 346§6012(a)(2) … 368§6013 … 580§6015 … 547, 550§6015(f) … 548§6020 … 368, 574§6043(a)(1) … 388§6043(c) … 383§6050I … 557§6050I(a) … 557§6062 … 368§6072(b) … 368§6081(b) … 368§6110(k)(3) … 347§6164 … 271
§6221 … 567§6231 … 567§6320 … 535§6330 … 535§6401 … 512§6501 … 557§6501(a) … 38, 557§6501(e)(1)(A) … 199§6511 … 144§6601(b)(4) … 371§6651 … 574, 577§6654 … 574§6662 … 78, 540, 560, 577§6662(a) … 199, 545§6662(b)(1) … 78§6662(b)(2) … 78§6663(a) … 38§6672 … 98, 535–536§6672(a) … 98§6672(d) … 99§6673 … 545§6694(a) … 3§6694(b) … 3§6698(b)(1) … 413§6699(b) … 413§6701(a)(1) … 38§6701(b) … 38§6721 … 557§6722 … 557§6871 … 514§7206 … 575§7405 … 543§7422 … 559, 567§7426 … 556§7454 … 574§7491 … 574§7520 … 177§7525 … 105, 551§7525(a)(1) … 105§7602 … 551§7604 … 551§7701 … 535, 566§7701(a)(30) … 141§7872 … 291–292§7872(c) … 380§7872(c)(2) … 292, 380§7872(c)(3) … 293§7872(e) … 380§7872(f)(7) … 292
2009 Workbook
Copyrighted by the Board of Trustees of the University of Illinois. This information was correct when originally published. It has not been updated for any subsequent law changes.
610 2009 Index
Treasury Decisions
9167 … 5379436 … 1
Treasury Regulations
§1.11-1(b) … 366§1.14-5(a)(2) … 178§1.52-1 … 233§1.61-6(a) … 195§1.104-1(c) … 542§1.125-3(p) … 145§1.152-4 … 50§1.152-4(e)(5) … 49§1.162-12 … 209§1.162-6 … 209§1.162-7(b)(3) … 392, 524§1.165-1 (a) … 135§1.165-7 … 522§1.165-8(a)(2) … 138§1.165-8(c) … 522§1.165-8(d) … 138§1.166-2(c)(2) … 212§1.168-2(d)(3) … 173§1.170A-14(h)(3)(i) … 561§1.172-5(a)(2)(ii) … 262§1.199-1(d)(3)(i) … 482§1.199-3(e)(1) … 479§1.199-4(e) … 237§1.199-4(f) … 236§1.199-6 … 483§1.199-6(b) … 483§1.199-6(c) … 480§1.199-6(d) … 480§1.199-6(l) … 482–483§1.199-6(m) … 483§1.212-1(p) … 200§1.263A-1 … 208§1.263A-3(b) … 208§1.266-1(b)(1)(i) … 166§1.266-1(b)(1)(ii) … 167§1.267(c)-1(a)(4) … 280§1.274-6(T)(b) … 202§1.280F-7 … 203§1.351-1(a)(1) … 374, 381§1.351-1(a)(1)(ii) … 382§1.351-3 … 382§1.401(a)(4)-11(g) … 332§1.401(a)(9)-3, A-3(b) … 355§1.401(A)(9)-4 … 351§1.401(a)(9)-4 … 358§1.401(a)(9)-4, A-1 … 351§1.401(a)(9)-4, A-4(a) … 348, 352
§1.401(a)(9)-5 … 351§1.401(a)(9)-5, A-2 … 350§1.401(a)(9)-5, A-5(a)(1) … 356§1.401(a)(9)-5, A-5(c)(2) … 355§1.401(a)(9)-5,A-7(c)(3) … 359§1.401(a)(9)-8, A-2(a)(2) … 348,
362§1.401(a)(9)-8,A-2(a)(2) … 357,
362§1.401(a)(9)-9, A-2 … 349§1.401(a)(9)-9, A-3 … 349§1.401(a)9-4(A-4)(a) … 362§1.401(c)-2, A-13(a) … 362§1.402(a)(9)-5, A-5(a)(2) … 354§1.402(a)-1(b)(1)(i) … 362§1.403(b)-4(c)(3)(i) … 344§1.403(b)-4)(c)(3)(iv) … 344§1.408-8, A-5(a) … 355§1.408A-6,A-14(b) … 361§1.446-4 … 452§1.451 … 468§1.451(a) … 37§1.451-6 … 465–466§1.451-6(a)(1) … 465, 468§1.451-6(b)(2) … 467§1.461-1(a)(3) … 38§1.461-4(g)(3) … 529§1.461-5(b)(1) … 529§1.469-4(d)(5)(ii) … 568§1.469-7 … 294§1.533-1(a)(2) … 370§1.537-1(b)(1) … 370§1.537-2(b) … 370§1.537-2(c) … 370§1.704-1(d)(2) … 181§1.732-1(b) … 180§1.1012-1(e) … 165§1.1017-1 … 246§1.1221-2 … 451§1.1221-2(a) … 452§1.1221-2(f)(1) … 453§1.1221-2(f)(2)(ii) … 453§1.1221-2(f)(4) … 453§1.1221-2(g)(2)(ii) … 454§1.1221-2(g)(2)(iii) … 454§1.1239-1 … 286§1.1301-1 … 460§1.1301-1(d)(1) … 461§1.1301-1(d)(2) … 461§1.1301-1(e)(1)(i) … 460§1.1301-1(e)(1)(ii)(B) … 461§1.1301-1(e)(2)(i) … 461§1.1301-1(e)(ii) … 461§1.1362-2(c)(5)(ii)(B)(2) … 386§1.1366-3(a) … 392
§1.1366-4(b) … 384§1.1367(c)(2) … 189§1.1367-1(e) … 183, 186§1.1367-1(f) … 184–185§1.1367-2 … 188, 190§1.1368-1(f)(3) … 386§1.1368-1(f)(5) … 386§1.1374-10(b)(4) … 384§1.1374-4(d) … 526§1.1502-21 … 276§1.1502-36 … 277§1.6012-2(a) … 368§1.6012-2(a)(2) … 368, 389§1.6017-1(b) … 457§1.6043-1(b)(1) … 388§1.6050I-1(e) … 557§1.6060-1 … 2§1.6081-3 … 368§1.6107-1 … 2§1.6109-2 … 2§1.6662-3(b)(3) … 211§1.6662-4(g) … 211§1.6664 4(c)(1) … 7§1.6664-4(b)(1) … 7§1.6664-4(c)(1)(ii) … 7§1.6695-1(a) … 2§20.2031-1(b) … 486§31.3121(b)(10)-2(b) … 537§31.3121(b)(10)-
2(d)(3)(iii) … 537§31.6302-1(h)(2)(ii) … 369§301.6011-5 … 368§301.6231(a)(3)-1(a)(4) … 567§301.6721-1(c)(2) … 557§301.7216-1 (b)(4)(i) … 16§301.7216-3(a)(3) … 19§301.7701-15(a)(1) … 5§301.7701-2(c)(2) … 535§301.7701-2(c)(iv) … 369§301.7701-3(c)(1)(i) … 566§301.9100-2 … 165§301.9100-3 … 324
Temporary Treasury Regulations
§1.25-2T(d)(2) … 149§1.25-3T(d) … 144§1.448-1T(e)(5)(vii) … 372§1.469-2T(d)(6) … 182, 185§1.469-5T … 213§1.469-5T(a) … 570§1.469-5T(e)(3)(i) … 570§1.469-5T(e)(3)(ii) … 570§1.1041-1T(b)(Q-7) … 285§1.1041-1T(e) … 285
REGULATIONS
2009 Workbook
Copyrighted by the Board of Trustees of the University of Illinois. This information was correct when originally published. It has not been updated for any subsequent law changes.
2009 Index 611 I
Proposed Treasury Regulations
§1.263(a)-3(f)(3) … 210§1.1301-1(b) … 460
Acar v. Comm’r … 520Agarwal v. Comm’r … 133Allied-Signal, Inc. v. Comm’r … 200Atwood v. Comm’r … 542Balfour Land Company, L.P. v.
U.S. … 478Basalyk v. Comm’r … 208Bassing III v. U.S. … 567Benz v. Comm’r … 571Biedenharn Realty Co. v. U.S. … 519Bledsoe v. U.S. … 197Bot v. Comm’r … 535Bowlen and Bowlen v. U.S. … 99Bramlette Building Corp., Inc. v.
Comm’r … 395Brounstein v. U.S. … 100Bruzewicz and Prossnitz v.
U.S. … 559Burley v. Comm’r … 579C. Bean Lumber Transport, Inc. v.
U.S. … 493Carranza v. Comm’r … 540Cartier v. Comm’r … 208Chambers v. Comm’r … 541Chaney v. Comm’r … 207Colquitt v. Comm’r … 542Comm’r v. Banks … 540Comm’r v. Duberstein … 545Comm’r v. Flowers … 579Comm’r v. Groetzinger … 535Costa v. Comm’r … 208Dean v. Comm’r … 542Dean v. IRS … 267DeBoer v. Comm’r … 280Donald Palmer Co., Inc. v.
Comm’r … 394Drye v. U.S. … 556DT Floormasters, Inc. v. U.S. … 556Dunn & Clark, P.A. v. Comm’r … 394Electric & Neon, Inc. v.
Comm’r … 395Elliotts, Inc. … 395Elsayed v. Comm’r … 580Ernest Badaracco, Sr. et al. v.
Comm’r … 37–38Esser, P.C. v. U.S. … 395Estate of Barnett v. U.S. … 539Estate of Tompkins v. Comm’r … 486
Evers v. Comm’r … 574Fadeley v. Comm’r … 207Fasken v. Comm’r … 196Fletcher v. U.S. … 543Furey v. Comm’r … 517Gale W. Greenlee, Inc. v. U.S. … 395Gallenstein v. U.S. … 176Garnett v. Comm’r … 569Garrison v. Comm’r … 208Garza-Martinez v. Comm’r … 572Gephardt v. U.S. … 101Ghosn v. Comm’r … 394Gustafson’s Dairy, Inc. v.
Comm’r … 371Haber v. Comm’r … 395Haubrich v. Comm’r … 533Helvering v. Am. Dental Co. … 516Helvering v. Campbell … 163Hochstein v. U.S. … 101In re Broadus … 514In re Graves … 516Inja Land Com., Ltd. v.
Comm’r … 197Ioane v. Comm’r … 208Iske v. Comm’r … 196J.P. McWilliams v. Comm’r … 163Jackson v. Comm’r … 379Jacobs v. Comm’r … 395James v. U.S. … 199Jarret et al. v. Comm’r … 577Jeffrey B. Fleck Co. v. U.S. … 394Joly v. Comm’r … 394Jones v. Comm’r … 558Joseph M. Grey Public Accountant,
P.C. v. Comm’r … 394Joseph Radtke, S.C. v. U.S. … 395Judd v. First Federal Savings and
Loan Ass’n of Indianapolis … 556
Karp et al. v. Comm’r … 547Kerzner v. Comm’r … 523Kinnie v. U.S. … 99Kiva Dunes Conservation LLC, et al.
v. Comm’r … 560Krahenbuhl v. Comm’r … 395Kroll v. Comm’r … 580Langer v. Comm’r … 395Lessinger v. Comm’r … 379Littriello v. U.S. … 535Litwin v. U.S. … 190Logal v. U.S. … 536Maimon v. Comm’r … 538Maine v. U.S. Dept. of the
Interior … 551Martin Ice Cream Co. v.
Comm’r … 390
Martinez v. Comm’r … 544Mayo Foundation for Medical
Education and Research v. U.S. … 537
McNamee v. IRS … 535Medical Practice Solutions LLC et al.
v. Comm’r … 535Menard Inc. et al. v. Comm’r … 524Menard, Inc. v. Comm’r … 393Mitchell v. Comm’r … 580MMC Corp. et al. v. Comm’r … 525Nelson, et al. v. Comm’r … 466Newark Morning Ledger Co. v.
U.S. … 563Njenge and Rachel v. Comm’r … 562Nu-Look Design, Inc. v.
Comm’r … 394O’Gilvie v. U.S. … 542O’Meara v. Comm’r … 548Ocmulgee Fields, Inc. v.
Comm’r … 564Ordlock v. Comm’r … 547Oren v. Comm’r … 523Peracchi v. Comm’r … 379Pine Creek Farms, LTD v.
Comm’r … 455Place v. Comm’r … 284Plotinsky v. Comm’r … 515Prussner v. U.S. … 559Rainbow Tax Service, Inc. v.
Comm’r … 372Ray v. Comm’r … 474Rice v. Comm’r … 519Rodriguez v. Comm’r … 207Rowden v. Comm’r … 208Roytburd v. Comm’r … 545Santa Fe Pacific Gold Company and
Subsidiaries v. Comm’r … 208Security First National Bank of Los
Angeles … 163Seggerman Farms, Inc. v.
Comm’r … 380Senra v. Comm’r … 473, 568Senulis, Jr. v. Comm’r … 582Smith v. Comm’r … 379Spicer Accounting v. U.S. … 395Spitz v. U.S. … 200Starnes v. Comm’r … 573Steele v. Comm’r … 535Stephens v. Comm’r … 200Sunleaf v. Comm’r … 550Technalysis Corp. v. Comm’r … 370Teruya Bros., Ltd. & Subs. v.
Comm’r … 565Thompson v. U.S. … 570Tilley v. Comm’r … 574
COURT CASES
2009 Workbook
Copyrighted by the Board of Trustees of the University of Illinois. This information was correct when originally published. It has not been updated for any subsequent law changes.
612 2009 Index
Townsend … 395U. S. v. Diamond … 518U. S. v. Rineer and Washington … 536U.S. v. Boyle … 7U.S. v. Clarke … 575U.S. v. Scholl … 131U.S. v. Textron Inc., et al. … 551Underwood v. Comm’r … 523Velvet Horn, Inc. v. Comm’r … 284Veterinary Surgical Consultants, PC
v. Comm’r … 394Vines v. Comm’r … 518Waldman v. Comm’r … 200Ward v. Comm’r … 49Welter v. Comm’r … 455Woody v. Comm’r … 208Wuebker v. Comm’r … 474Yang v. Comm’r … 545
54-339 … 13256-264 … 16656-406 … 16358-66 … 58158-436 … 48659-121 … 19659-221 … 57859-259 … 38161-119 … 49261-185 … 19964-289 … 486–48765-80 … 38965-254 … 20068-291 … 19668-629 … 37869-297 … 36271-50 … 28071-86 … 39571-475 … 16672-112 … 13873-361 … 39574-44 … 39574-145 … 46674-175 … 26675-11 … 48875-330 … 37175-361 … 48777-17 … 13877-201 … 16377-414 … 19780-235 … 37882-83 … 39582-102 … 332
83-130 … 13186-57 … 26587-44 … 241, 27591-55 … 46893-86 … 58295-5 … 39199-7 … 2002003-127 … 4552004-59 … 5662004-71 … 2652004-72 … 2652004-74 … 2652006-26 … 3632009-9 … 137–138, 5212009-15 … 566
77-29 … 13277-37 … 38279-24 … 16699-17 … 5202003-61 … 5492006-22 … 4802008-14 … 2122008-35 … 16, 20–21, 232008-50 … 331, 334–3352008-54 … 4912008-59 … 3172008-65 … 5122008-66 … 1572008-72 … 2012009-11 … 82009-12 … 2062009-19 … 5222009-20 … 137, 5212009-24 … 201–2022009-26 … 242, 267
Chief Counsel Advice
200925041 … 531
IRS Fact Sheets
FS-2008-25 … 392
IRS Letter Rulings
7743007 … 4887805008 … 4888822064 … 4769405007 … 381
9637004 … 474200242044 … 355200317041 … 357200317043 … 357200317044 … 357200325002 … 475200438044 … 360200610026 … 358, 364200615032 … 355200621020 … 355200634068 … 361200644031 … 355200812024 … 54200834016 … 530200838011 … 480, 483200843015 … 480200843016 … 480200843023 … 480200849019 … 348, 364200852022 … 480
IRS News Releases
IR-2008-113 … 528IR-2009-17 … 109IR-2009-26 … 239IR-2009-41 … 86IR-2009-56 … 110IR-2009-69 … 528
IRS Notices
87-16 … 11589-55 … 465, 4682004-50 … 1252006-108 … 4752007-7 … 3602008-4 … 892008-5 … 582008-11 … 12008-12 … 12008-13 … 1, 82008-18 … 2102008-46 … 12008-51 … 1312008-52 … 1312008-59 … 127, 1312009-3 … 3312009-12 … 4242009-27 … 4352009-28 … 217, 4352009-40 … 1932009-47 … 4682009-53 … 4392009-69 … 215, 217
REVENUE RULINGS
REVENUE PROCEDURES
OTHER IRS RELEASES
2009 Workbook
Copyrighted by the Board of Trustees of the University of Illinois. This information was correct when originally published. It has not been updated for any subsequent law changes.
2009 Index 613 I
IRS Memorandum
AM2008-013 … 518
Technical Advice Memoranda
200602034 … 563200846021 … 531
Internal Legal Memoranda
200834019 … 529200911006 … 563200911007 … 562
IRS Publications
5, Your Appeal Rights and How To Prepare a Protest If You Don’t Agree … 12
15, (Circular E) Employer’s Tax Guide … 213
15-A, Employer’s Supplemental Tax Guide … 206
15-B, Employer’s Tax Guide to Fringe Benefits … 204
225, Farmer’s Tax Guide … 461463, Travel, Entertainment, Gift,
and Car Expenses … 203501, Exemptions, Standard
Deduction, and Filing Information … 41, 46–47, 53–54
504, Divorced and Separated Individuals … 53
523, Selling Your Home … 96, 149525, Taxable and Nontaxable
Income … 95529, Miscellaneous
Deductions … 95536, Net Operating Losses (NOLs)
for Individuals, Estates, and Trusts … 239, 244, 264, 267
537, Installment Sales … 287542, Corporations … 269, 271, 274544, Sales and Other Dispositions
of Assets … 135, 283, 295550, Investment Income and
Expenses … 455575, Pension and Annuity
Income … 96590, Individual Retirement
Arrangements … 96, 324–325, 344, 346, 349–350, 353–356, 361, 413
908, Bankruptcy Tax Guide … 97925, Passive Activity and At-Risk
Rules … 213936, Home Mortgage Interest
Deduction … 202950, Introduction to Estate and Gift
Taxes … 539969, Health Savings Accounts and
Other Tax-Favored Health Plans … 131
970, Tax Benefits for Education … 157
1546, Taxpayer Advocate Service – Your Voice at the IRS. … 97
3744, IRS Strategic Plan … 694128, Tax Impact of Job
Loss … 95–96, 5554134, Low Income Taxpayer Clinic
List … 984492, Information for Taxpayers
Affected by Hurricanes Katrina, Rita, and Wilma … 242
4492-A, Information for Taxpayers Affected by the May 4, 2007, Kansas Storms and Tornadoes … 242
4492-B, Information for Affected Taxpayers in the Midwestern Disaster Areas … 155, 242
4535, Identity Theft Prevention and Victim Assistance … 579
4681, Canceled Debts, Foreclosures, Repossessions, and Abandonments … 515
4693, Office of Professional Responsibility Who We Are; What We Do … 33
2009 Workbook
Copyrighted by the Board of Trustees of the University of Illinois. This information was correct when originally published. It has not been updated for any subsequent law changes.
614 2009 Index
IRS Forms
706, United States Estate (and Generation-Skipping Transfer) Tax Return … 38, 175, 488
709, United States Gift (and Generation-Skipping Transfer) Tax Return … 38
843, Claim for Refund and Request for Abatement … 87
911, Request For Taxpayer Advocate Service Assistance (And Application for Taxpayer Assistance Order) … 97
941, Employer’s QUARTERLY Federal Tax Return … 435
943, Employer’s ANNUAL Federal Tax Return for Agricultural Employees … 435
944, Employer’s ANNUAL Federal Tax Return … 435
966, Corporate Dissolution or Liquidation … 388
982, Reduction of Tax Attributes Due to Discharge of Indebtedness (and Section 1082 Basis Adjustment) … 170–171, 245
990, Return of Organization Exempt from Income Tax … 70
990-EZ, Short Form Return of Organization Exempt from Income Tax … 70
990-N, Electronic Notice (e-Postcard) for Tax-Exempt Organizations Not Required to File Form 990 or 990-EZ … 76
990-T, Exempt Organization Business Income Tax Return … 330
1040, U.S. Individual Income Tax Return … 248
1040-ES, Estimated Tax for Individuals … 111
1040X, Amended U.S. Individual Income Tax Return … 243
1041, U.S. Income Tax Return for Estates and Trusts … 243
1045, Application for Tentative Refund … 243, 254, 259, 523
1065, U.S. Return of Partnership Income … 181, 213
1098, Mortgage Interest Statement … 145
1098-C, Contribution of Motor Vehicles, Boats, and Airplanes … 78
1098-T, Tuition Statement … 150, 155
1099-B, Proceeds From Broker and Barter Exchange Transactions … 453
1099-C, Cancellation of Debt … 96, 170–171, 173, 515
1099-DIV, Dividends and Distributions … 159, 294
1099-G, Certain Government Payments … 92, 426
1099-INT, Interest Income … 6, 921099-MISC, Miscellaneous
Income … 921099-OID, Original Issue
Discount … 871099-PATR, Taxable Distributions
From Cooperatives … 4791099-SA, Distributions From an
HSA, Archer MSA, or Medicare Advantage MSA … 124
1120, Schedule O, Consent Plan and Apportionment Schedule for a Controlled Group … 307
1120-REIT, U.S. Income Tax Return for Real Estate Investment Trusts … 242
1120X, Amended U.S. Corporation Income Tax Return … 243, 269
1138, Extension of Time for Payment of Taxes by a Corporation Expecting a Net Operating Loss Carryback … 271
1139, Corporation Application for Tentative Refund … 243, 269, 271
2106, Employee Business Expenses … 190, 317
2120, Multiple Support Declaration … 64
2848, Power of Attorney and
Declaration of Representative … 11
3800, General Business Credit … 443
3949-A, Information Referral … 89
4684, Casualties and Thefts … 1434797, Sales of Business
Property … 135, 169, 194, 479, 520
4835, Farm Rental Income and Expenses … 477
4852, Substitute for Form W-2, Wage and Tax Statement, or Form 1099-R, Distributions From Pensions, Annuities, Retirement or Profit-Sharing Plans, IRAs, Insurance Contracts, etc. … 88, 96
5405, First-Time Homebuyer Credit … 423
5498-SA, HSA, Archer MSA, or Medicare Advantage MSA Information … 124
5695, Residential Energy Credits … 439
5884, Work Opportunity Credit … 229
6198, At-Risk Limitations … 1827004, Application for Automatic
Extension of Time to File Certain Business Income Tax, Information, and Other Returns … 368
8038-CP, Return for Credit Payments to Issuers of Qualified Bonds … 443
8275, Disclosure Statement … 3, 212
8275-R, Regulation Disclosure Statement … 3, 212
8283, Noncash Charitable Contributions … 6
8332, Release of Claim to Exemption for Child of Divorced or Separated Parents … 48
8396, Mortgage Interest Credit … 145
8554, Application for Renewal of Enrollment to Practice Before the Internal Revenue Service … 35
8582, Passive Activity Loss Limitations … 134
FORMS & SCHEDULES
2009 Workbook
Copyrighted by the Board of Trustees of the University of Illinois. This information was correct when originally published. It has not been updated for any subsequent law changes.
2009 Index 615 I
8594, Asset Acquisition Statement Under Section 1060 … 175, 489
8606, Nondeductible IRAs … 262, 321
8812, Additional Child Tax Credit … 417
8828, Recapture of Federal Mortgage Subsidy … 149
8835, Renewable Electricity, Refined Coal, and Indian Coal Production Credit … 193
8850, Pre-Screening Notice & Certification Request for Work Opportunity Credit … 214
8863, Education Credits … 151, 155
8880, Credit for Qualified Retirement Savings Contributions … 262
8889, Health Savings Accounts (HSAs) … 124
8903, Domestic Production Activities Deduction … 238, 482–483
8911, Alternative Fuel Vehicle Refueling Property Credit … 443
8912, Credit to Holders of Tax Credit Bonds … 443
8936, Qualified Plug-in Electric Drive Motor Vehicle Credit … 401, 442
T, Timber … 167TD F 90-22.1, Report of Foreign
Bank and Financial Accounts … 103
W-2G, Certain Gambling Winnings … 132
W-4P, Withholding Certificate for Pension or Annuity Payments … 415
IRS Schedules
990, Schedule A, Public Charity Status and Public Support … 75
990, Schedule B, Schedule of Contributors … 75
990, Schedule C, Political Campaign and Lobbying Activities … 74–75
990, Schedule D, Supplemental Financial Statements … 75
990, Schedule E, Schools … 75990, Schedule F, Statement of
Activities Outside the United States … 74–75
990, Schedule G, Supplemental Information Regarding Fundraising or Gaming Activities … 75
990, Schedule H, Hospitals … 74, 76
990, Schedule I, Grants and Other Assistance to Organizations, Governments and Individuals in the U.S. … 75
990, Schedule J, Compensation Information … 73, 75
990, Schedule K, Supplemental Information on Tax-Exempt Bonds … 74–76
990, Schedule L, Transactions with Interested Persons … 73, 75
990, Schedule M, Noncash Contributions … 74–75
990, Schedule N, Liquidation, Termination, Dissolution or Significant Disposition of Assets … 75
990, Schedule O, Supplemental Information to Form 990 … 75
990, Schedule P, Related Organizations and Unrelated Partnerships … 75
990, Schedule R, Related Organizations and Unrelated Partnerships … 74
1040, Schedule A, Itemized Deductions … 132
1040, Schedule B, Interest and Ordinary Dividends … 102
1040, Schedule C, Profit or Loss from Business … 203
1040, Schedule D, Capital Gains and Losses … 120, 160
1040, Schedule E, Supplemental Income and Loss … 92, 194, 477
1040, Schedule F, Profit or Loss from Farming … 194, 213
1040, Schedule J, Income Averaging for Farmers and Fishermen … 460
1040, Schedule L, Standard
Deduction for Certain Filers … 427
1040, Schedule SE, Self-Employment Tax … 213
1041, Schedule K-1, Beneficiary’s Share of Income, Deductions, Credits, etc. … 268
1065, K-1, Shareholder’s Share of Income, Deductions, Credits, etc. … 294
2009 Workbook
Copyrighted by the Board of Trustees of the University of Illinois. This information was correct when originally published. It has not been updated for any subsequent law changes.
616 2009 Index
Index
§501(c)(3) organizations. See Tax-exempt organizations
§529 plans … 421
Abandonmentdefined … 135
Abusive schemes. See Tax fraudAccountant-client privilege
limitations … 105tax advice … 105
Accounting methodchange
taxable built-in gain … 525Accumulated earnings tax … 369, 371Adopted child
citizenship or residency test … 42defined … 44qualifying relative … 57
AFR. See Applicable federal rateAge test
qualifying child … 45Alimony
deductibility … 533Alternative minimum tax. See AMTAlternative tax NOL. See ATNOLAmerican Jobs Creation Act of
2004 … 460American opportunity credit. See
CreditsAmerican Recovery and Reinvestment
Act of 2009 (ARRA) … 95, 150, 193, 242, 383, 414
AMTcorporate
adjustments … 275NOL … 275
corporation … 367exemption amounts … 429expiring provisions … 446income averaging impact … 461individual
adjustmentsNOL … 266
Applicable federal rate (AFR) … 290, 380
Appraisalstax fraud … 87
Archer Medical Savings Account (MSA)
qualifying child … 54ARRA. See American Recovery and
Reinvestment Act of 2009Asset allocation
farm sale … 489ATNOL … 266
compared to NOL … 266corporate … 275
Audits2008 statistics … 822009 issues … 80avoiding CP2000 Notice … 92correspondence … 78
CP2000 … 92CP2057 … 92
enforcement results … 89large and mid-size businesses … 85
Tier I issues … 85Tier II issues … 85Tier III issues … 86
penalty assessment process … 7Automated collection system … 553
Bank Secrecy Act (BSA) … 36Bankruptcy … 96–97
basis reduction … 172tax refund subject to
turnover … 516unpaid tax debt interest … 514
Basis … 159business property … 169
adjustments … 170business property converted to
personal … 169corporations … 169partnership … 170sole proprietorship … 169
C corporationdistributed property … 182
cancellation of debt … 170casualty loss effect … 167constructed property … 170corporate stock … 162debt forgiveness
order of reduction … 171depreciation recapture … 169farm machinery … 490
gifted property … 177life estate … 177
inherited property … 175alternate valuation date … 176community property
state … 176jointly-held property … 176
installment obligations … 175investment property … 159IRD property … 176irrevocable trusts … 180like-kind exchange … 168limited reduction
bankruptcy/insolvency … 172mutual fund … 163
average cost method … 164double-category averaging
method … 165FIFO method … 164single-category averaging
method … 164specific identification
method … 164partnership
inside … 181liquidation … 180ordering rules … 181outside … 181property … 180
personal property converted to business … 169
property contributed to C corporation … 182
real property … 166acquisition costs … 166
reductionsordering rules … 173
S corporation … 183election to reduce basis … 184loan repayment … 188loans … 186
ordering rules … 186stock … 183
ordering rules … 183stock … 159
average cost method … 166cost of acquiring … 159dividend reinvestment
plan … 166employee stock purchase
plan … 160employment related … 160
NUMBERS
A
B
2009 Workbook
Copyrighted by the Board of Trustees of the University of Illinois. This information was correct when originally published. It has not been updated for any subsequent law changes.
2009 Index 617 I
incentive stock option … 161nonqualified stock
option … 160restricted stock option … 161wash sale … 162
timber … 167trust property … 179unimproved real estate
carrying costs election … 166vacation home … 167vacation rental … 168
Beneficiaryestate
stock ownershiprelated party … 281
See also IRAtrust
stock ownershiprelated party … 281
Bonus depreciation. See DepreciationBoot
farm machinery exchange … 491Brother-sister controlled
group … 305, 307related party … 306
Build America bonds … 443Built-in gain … 383
installment sale … 384recapture period … 432S election … 384tax rate … 383
C corporation … 365built-in gain. See Built-in gaincalculating taxable income … 366conversion to LLC … 389
liquidation distribution … 391conversion to S
corporation … 383–384earnings and profits … 370
distributionincome tax liability … 387
liquidation … 397NOL … 268
adjustments … 268affiliated group … 276carrybacks … 269carryforwards … 274consolidated return … 276extending time to pay tax … 271ownership changes … 274S election … 275
penalty taxes … 369reasonable compensation … 391
court cases … 393factors used to determine … 392
S electionbuilt-in gain. See Built-in gain
taxes compared to individual … 367
Call optionhedging … 451
Cancellation of debtbasis … 170order for basis reduction … 171
Cancellation of debt income (CODI) … 294, 430
Capital gainsale of excess lots … 519
Capital gains2011 tax rates … 111
Capitalizationrequirements … 209
Carrying costs … 166Cash for Clunkers program … 444Casualty and theft loss
NOL … 243Censure. See Circular 230Charitable contribution
preservation easement … 559Charitable contributions
conservation easement … 560corporation limitation … 367expiring provisions … 446
Child tax credit. See CreditsChild. See DependentCircular 230 … 9, 26–27
due diligence … 36knowledge of client omission … 37sanctions … 33
aggravating factors … 34censure … 34disbarment … 34mitigating factors … 34reprimand … 34suspension … 34–35
Citizen or resident test. See DependentClient
screening checklist … 32CNOL
consolidated return … 276COBRA … 435–436Commodity futures contract
hedging … 451Compensation
reasonable … 391court cases … 393
Compliance activitiesFY 2008 … 554
Conduit trust … 351, 359, 364Conflict of interest
between advocate and witness … 27
between clients … 26between preparer and client … 27client notification letters … 28
related taxpayers … 28consent waiver … 27rules … 26types … 26
Consent letter. See Tax return information
Conservation reserve program. See CRP
Consolidated net operating loss. See CNOL
Consolidated tax return … 305Consumer Assistance to Recycle and
Save Program … 444Cooperatives
§199 effect … 479DPAD … 480
reporting to patrons … 483members
DPAD … 481per-unit retains payments in money
(PURPIM) … 480QPAI … 480wages … 480
Corporate equity reduction transactions
NOL … 268Corporation
§351 transfersbusiness purpose … 381filing requirements … 382recordkeeping … 382
built-in gain. See Built-in gaincapital gain/loss … 367charitable contributions … 367contributed property
basis … 182controlled groups … 305
tax bracket apportionment … 310
distributed propertybasis … 182
electronic filing requirement … 369
filing requirements … 368liquidation
basis … 183
C
2009 Workbook
Copyrighted by the Board of Trustees of the University of Illinois. This information was correct when originally published. It has not been updated for any subsequent law changes.
618 2009 Index
reporting requirements … 388shareholder's death … 398tax consequences … 396
method of accounting … 367related party relationships … 280shareholder loans … 380stock
§351 transfercontrol issues … 381
stock ownershiprelated party … 281
tax brackets … 365Cost-share payments … 471CP2000 Notice. See AuditsCP2057 Notice. See AuditsCredits
30% business energy … 193adoption … 429alternative fuel vehicle
refueling … 442American opportunity … 150, 420
computing … 154child … 417, 429child and dependent care … 53,
429child tax … 53D.C. first-time homebuyer … 429earned income … 53, 95, 110, 417,
526optional SE … 458
education … 150income limitations … 154
elderly and disabled … 429expiring provisions … 446first-time homebuyer … 421
allocation between unmarried taxpayers … 424
election to claim in 2008 … 423FHA-insured homes … 425fraud … 528income limitations … 423IRS response to fraud … 424recapture … 421
fuel … 88health coverage … 438higher-education … 429home mortgage interest … 429Hope … 150
Midwestern disaster area … 155, 421
lifetime learning … 150Midwestern disaster area … 421
making work pay … 110, 414mortgage interest … 144–145
nonbusiness energy property … 429
nonrefundable personal … 429plug-in electric vehicle … 429, 442
conversion … 442qualified lean-burn technology
vehicle … 528residential alternative
energy … 440residential energy property … 439
eligible costs … 439ineligible costs … 439
residential energy-efficient property … 429
saver's … 429small wind-energy property … 442wind energy production … 193work opportunity … 214, 434
applying for … 214calculation … 229controlled groups … 233election … 233ineligible individuals … 218successor employer … 233targeted groups … 215
Crop insurance. See Insurance payments
CRP … 474buying out a contract … 476–478payments
2008 Farm Bill … 475Wuebker … 474
Custodial parentexemption release … 48
examples … 50parents never married … 50revocation … 49
qualifying child … 48
Death of a taxpayerNOL … 266
Debtcancellation
basis … 170IRS publication update … 515
Debt forgiveness … 96Deductions
§179 … 170expenses … 431
accrued expensesrelated party … 282
charitable contributionforeign student … 43
foster child … 60charitable contributions … 558domestic production
activities … 234, 367activities not qualifying … 236allocating expenses … 236
simplified deduction method … 237
small business simplified overall method … 236
calculation … 238gross receipts … 236qualified activities … 235
home office … 200medical and dental services … 531mortgage interest … 562motor vehicle sales tax … 427
states with no sales tax … 429NOL. See NOLreasonable rental expense
related party … 284rebate offer … 529restitution … 530tuition … 150vehicle expenses … 200
Dependent … 41adopted child … 42, 44age test … 45birth or death of child … 44calculating support … 46children of divorced or separated
parents … 48citizenship or residency test … 42defined … 41dependent taxpayer test … 42disabled
defined … 46foreign students … 43foster child … 44full-time student … 45joint return test … 42
exception … 42kidnapped child … 44qualifying child. See Qualifying
childstillborn child … 44support test … 46
scholarship … 46Survivors’ and Dependents’
Educational Assistance payments … 46
U.S. citizen … 42U.S. national … 42U.S. resident alien … 42
D
2009 Workbook
Copyrighted by the Board of Trustees of the University of Illinois. This information was correct when originally published. It has not been updated for any subsequent law changes.
2009 Index 619 I
Dependent taxpayer test. See Dependent
Depreciable propertyrelated party
installment sale … 287sale or exchange
related party … 286Depreciation
§179 expensefarm machinery … 490
50% bonus … 431bonus … 170, 201, 512expiring provisions … 446recapture
farm machinery … 490vehicle expense … 200
Designated beneficiary. See IRADesignated communities
work opportunity credits … 216Disabled
qualifying child … 45qualifying relative
gross income test … 59work opportunity credits … 216
Disaster payments. See Federal disaster payments
Disaster recovery assistanceNOL … 242
Disbarment. See Circular 230Discharge of indebtedness
NOL … 245related party … 294
Disclosure. See Tax return informationDisclosures … 211Disconnected youth
work opportunity credits … 217Dividends received deduction
NOL … 268Divorce
NOL … 264property transfers
related party … 285qualifying child … 48release of dependency
exemption … 531Domestic production activities
deduction. See DeductionsDomestic production gross
receipts … 479
Easementscollection distribution line … 194conservation … 560
construction … 194perpetual … 194
basis allocation … 196taxation … 196
transmission … 194wind energy … 194
Economic Growth Tax Relief Reconciliation Act of 2001 (EGTRRA) … 366
Economic hardshipbankruptcy … 97closing own business … 96debt forgiveness … 96early withdrawal from IRA … 96employer's business fails … 96federal tax lien … 97foreclosure … 96income declines … 95insolvency … 97installment agreement
payments … 97IRS response
expedited levy releases … 94installment agreement payments
flexibility … 94offer in compromise (OIC)
options to avoid default … 94
real estate valuations … 94suspending collection
actions … 94What If FAQs … 95
job loss … 95job search … 95legal representation … 98loss on retirement accounts … 96selling home at loss … 96Taxpayer Advocate Service
(TAS) … 97unemployment
compensation … 95wage levy … 97
Economic recovery payment … 415Economic substance doctrine … 577Education
§529 plans … 421EFI. See Income averaging
elected farm incomee-File
modernization … 93EITC. See CreditsElections
§179 expensing … 431§754 … 182
excluding cost-sharing payments … 471
expense start-up costs … 470expensing fertilizer … 472farm NOL carryback period … 469grouping rental real estate
activities … 472husband and wife … 213mark-to-market … 520NOL carryback period … 432
amended return … 433Electronic federal tax payment system
(EFTPS) … 369Eligible small business
defined … 432NOL … 242, 432
partnership … 433S corporation … 433sole proprietorship … 433
Embezzlementdefined … 198tax consequences … 199See also Losses
Emergency Stabilization Act of 2008 (ESA) … 45
Employeecommon-law … 538
Employee Retirement Income Security Act of 1974 (ERISA) … 328
Employee stock purchase plan … 160Employment tax
closing own business … 96Trust Fund recovery penalty … 98
Energy Improvement and Extension Act of 2008 … 442
Energy Independence and Security Act of 2007 … 400
Engagement letteracceptance … 29proposal … 28rejection … 29termination … 30
Enrolled agent (EA)change of address
notification … 36renewal process … 35
Entitydisregarded
SE tax … 535ESB. See Eligible small businessESPP. See StockEstate
accrued crop rents … 488IRA designated beneficary … 364NOL … 267
E
2009 Workbook
Copyrighted by the Board of Trustees of the University of Illinois. This information was correct when originally published. It has not been updated for any subsequent law changes.
620 2009 Index
final return … 268how to use … 267
Pub. 950 … 539stock ownership
related party … 281unharvested crop … 485
alternate-valuation election … 488
Estate taxchanges for 2010 … 114
Estimated taxindividuals … 430
Exempt organization. See Tax-exempt organization
Exemption2011 phaseout limits … 112qualifying child … 41qualifying relative … 41
Expensesaccrued
related party … 282adequate disclosure … 211allocating
simplified deduction method … 237
small business simplified overall method … 236
business travel … 579–580capitalized … 208improvement vs. repair … 210job search … 95lodging
per diem … 317meals
per diem … 317not capitalized … 209ordinary and necessary
business … 207determining … 207
per diemrelated party … 317
routine maintenancesafe harbor … 210
vehicles. See VehiclesExpiring tax provisions … 446
Familyrelated party relationships … 280
Farm income averaging. See Income averaging
Farm machinerybasis … 490
boot … 490depreciation … 490depreciation recapture … 490sale versus trade … 490
SE impact … 491Farming
NOL … 244Federal disaster payments
crop damagedeferral election … 466multiple crops … 468reporting … 465
Federally-declared disaster lossNOL … 244
Felonswork opportunity credits … 215
Fertilizer … 472FIFO method
mutual fund basis … 164Filing requirements
corporation … 368personal service corporation
(PSC) … 372Filing status
head of household … 53Financial difficulties. See Economic
hardshipFirst-time homebuyer credit. See
CreditsFood stamps recipients
work opportunity credits … 216Food, Conservation, and Energy Act
of 2008 … 457Foreclosure … 96Foreign bank account … 102
accountant-client privilege … 104definitions
financial interest … 104foreign country … 104signature authority … 104
Foreign Bank and Financial Accounts Reports (FBAR) … 36
FAQs … 36Forgone interest
gift loans … 292Foster child
dependent … 44Fostering Connections to Success and
Increasing Adoptions Act of 2008 … 45
Fraudfirst-time homebuyer credit … 528
Fringe benefitsvehicles
personal use … 206
Gambling … 131deduction of losses … 518
General Explanations of the Administration’s Fiscal Year 2010 Revenue Proposals … 110–111, 113–114
GiftIRA … 361IRA to charity … 357Pub. 950 … 539
Giftsbasis … 177life estate … 177unreported … 38
GO ZoneNOL … 242work opportunity credits … 217
Government Accountability Office (GAO) … 1
Government paymentscost-share payments … 471CRP. See CRP
Grantorstock ownership
related party … 281Gross income … 544
damage awards … 540, 542deemed distribution from life
insurance … 542embezzled funds … 199erroneous refund … 544SE income … 545unemployment
compensation … 426Gross income test
disabled individual … 59qualifying relative … 58
HDHP. See High deductible health plan
Health coverage tax credit. See CreditsHealth reimbursement arrangement
(HRA)allowed expenses … 127
Health savings account (HSA) … 124, 176
allowed expenses … 130contribution limits … 125enrolled in Medicare … 125Q & A … 125
F
G
H
2009 Workbook
Copyrighted by the Board of Trustees of the University of Illinois. This information was correct when originally published. It has not been updated for any subsequent law changes.
2009 Index 621 I
qualifying child … 54reporting employer
contributions … 130Hedging … 451
defined … 452failure to identify
transaction … 454identification rule … 453mark-to-market rules … 454multiple entities … 455purpose … 451straddles … 454timing … 455transaction guide … 456
High deductible health plan (HDHP) … 124
High/low methodper diem … 317
High-income taxpayers … 109–110defined … 109itemized deduction
limitation … 113personal exemptions
phaseout … 112tax changes for 2011 … 111tax planning … 114
converting IRA … 115marriage penalty … 116qualified dividends … 116required minimum
distributions … 117states with no income tax … 116tax-exempt bonds … 116
Housing Assistance Tax Act of 2008 (HATA) … 118
HSA. See Health savings account
Identity theft … 86, 579Imputed interest
compensation-related loans … 293corporation-to-shareholder
loans … 293demand loan … 291related party … 289shareholder-to-corporation
loans … 293term loans … 291
Incentive stock option … 160–161Income averaging
AMT impact … 461capital gains … 461elected farm income
eligibility … 460
eligible farm incomedetermining taxable
income … 461eligible taxpayers … 460impact on taxation … 461kiddie tax … 465sale of property … 460
Income in respect of a decedent (IRD)basis … 176crop-share rents … 488IRA … 347unharvested crop … 486
basis issues … 486income issues … 486materially-participating
landlord … 486nonmaterially-participating
landlord … 487–488operating farmer … 486
Income limitationsdeductible IRA … 344earned income credit … 417education credits … 154first-time homebuyer credit … 423new vehicle sales tax
deduction … 427Roth IRA … 319, 345
Independent contractorstax-exempt organizations … 74
Individual retirement arrangement. See IRA
Individual taxpayer identification number … 527
Information. See Tax return information
Innocent spouse relief … 547–548, 550
Inside basis. See Basispartnership
Insolvency … 97, 515Installment agreement … 97Installment sale
imputed interestrelated party … 289
related party … 287resale … 287
See Sale of businessInsurance payments
crop damagedeferral election … 466multiple crops … 468reporting … 465
revenue-based … 468Internal Revenue Service
goals and objectives … 69
mission statement … 69strategic plan … 69
Investment propertybasis … 159
Involuntary conversionrelated party … 304
IRAcharity as beneficiary … 357, 364contribution limits … 344conversions
failed … 324income reported … 319pros and cons … 320qualified plan rollover to Roth
recharacterized to traditional … 323
reconversion from traditional to Roth … 324
Roth recharacterized to traditional … 321, 323
to Roth … 319traditional recharacterized to
Roth … 322deductible … 573designated beneficiary … 351, 412
cash-out rules … 352certain trusts … 351charities … 352conduit trust … 359defined … 351disclaimer … 362entities … 352estate … 352, 364individual … 363multiple individuals … 351nonspousal RMD rules … 356RMD after death … 351
multiple individuals … 356separate accounts rule … 357
see-through trust … 358surviving spouse … 355, 363trusts not qualifying … 352
early distribution penalty … 572early withdrawal … 96income in respect of a decedent
(IRD) … 347inherited
after-death distributions … 350stretch planning … 345titling after death … 361
qualified higher-education expenses … 571
real estate … 329advantages … 329disadvantages … 329
I
2009 Workbook
Copyrighted by the Board of Trustees of the University of Illinois. This information was correct when originally published. It has not been updated for any subsequent law changes.
622 2009 Index
distributions … 330unrelated business income tax
(UBIT) … 329recharacterization types … 321required minimum distribution
(RMD)2009 waiver … 412after death
default rules … 353rules … 348suriving spouse … 355
calculating … 350, 413decedent over 70½ … 354decedent under 70½ … 353failure to take … 346separate account rule … 351successor beneficiaries … 361year of death … 350
rolloversurviving spouse … 355
Rothafter death RMD rules … 361,
412AGI limit repealed … 319conversion
recharacterization … 321liquidating at a loss … 327liquidation penalty … 327tax fraud … 87traditional IRA
conversions … 114Roth conversions … 114self-directed … 328stretch planning … 345
cash-out rule … 362deferral versus lump-sum
distribution … 346disclaimer within 9
months … 362fixing designated beneficiaries
after death … 348nonspousal beneficiary … 360separate accounts … 362trusts … 357
substantially-equal periodic payments … 571
traditional … 319income limitations … 344liquidating at a loss … 325
trust as beneficiary … 363IRD.See Income in respect of a
decedentISO. See StockItemized deductions
limitations in 2011 … 113
losses from Ponzi scheme … 137ITIN See Individual taxpayer
identification number
Job loss … 95Joint and Last Survivor Table … 349Joint return
dependent … 42qualifying relative … 56
Joint return test. See DependentJoint venture
husband-wife … 212election … 213return filing … 213
qualifieddefined … 213
Land purchase. See Asset allocationLevies
wages … 97Life estate
basis of transferred property … 177valuation tables … 177
Lifetime learning credit. See CreditsLike-kind exchange … 563
boot … 168excess basis … 168exchanged basis … 168holding period … 304property basis … 168related party … 294, 564relinquished property … 168replacement property … 168
Loansbelow market
compensation relatedde minimis exception … 293
related party … 291compensation related … 291,
293corporation-
shareholder … 291, 293de minimus exception … 292gift … 291–292
corporation to shareholder … 294demand … 291imputed interest … 291shareholder to corporation … 293student
cancellation of debt … 515
term … 291Lodging
fair rental value … 62per diem … 317support test … 62
Long-term care insuranceusing HSA distribution … 130
Lossesallowed for individuals … 135business
deductibility … 198business abandonment … 134
definition … 135criminal fraud or
embezzlement … 137farm
SE income … 459individual
deduction limits … 137–138passive activity … 568–569Ponzi scheme … 521real estate professional … 133retirement accounts … 96, 325Roth IRA … 327sale of home … 96slot machine gambling … 131theft … 138
determining total amount … 139investor safe harbor rule … 141year of deduction … 138
Low Income Taxpayer Clinics (LITC) … 98
Machinery acquisition. See Farm machinery
Making work pay credit. See CreditsMarital status
NOL … 264Marketable security
related party … 289Mark-to-market rules … 453–454Marriage penalty
high-income taxpayers … 116Meals
per diem … 317Medical savings account
(MSA) … 176Member of household or relationship
test. See Qualifying relativeMethod of accounting
corporations … 367Midwestern disaster area
Hope credit … 155
J
L
M
2009 Workbook
Copyrighted by the Board of Trustees of the University of Illinois. This information was correct when originally published. It has not been updated for any subsequent law changes.
2009 Index 623 I
Modernized e-file Program (MeF) … 93
benefits … 93phased in … 93
Mortgagedebt relief … 400
Mortgage credit certificate … 144qualifications … 144
Mortgage Forgiveness Debt Relief Act of 2007 … 96
Mortgage interest … 562Multiple support agreements … 64Mutual fund
basis … 163
Net operating loss (NOL) … 38advantages of using Form
1040X … 254advantages of using Form
1045 … 254American Recovery and
Reinvestment Act of 2009 (ARRA) … 242
C corporationadjustments … 268affiliated groups … 276calculation … 268carrybacks … 269carryforwards … 274consolidated return … 276corporate equity reduction
transactions … 268dividends received
deduction … 268domestic production activities
deduction … 268extending time to pay tax … 271ownership changes … 274
calculation … 240individual … 247
carryback period … 469casualty and theft loss … 242–243change in corporate status … 275death of taxpayer … 266deductions
not allowed … 239default election … 240disadvantages of using Form
1040X … 255disadvantages of using Form
1045 … 254discharge of indebtedness … 245
divorce … 264community property
states … 265election to forgo carryback … 240–
241C corporation … 241
eligible small businesselection for longer
carryback … 243loss … 242
eligible small business carryback period … 432
estate … 267final year … 268
exceptions to 2-year carryback … 242
farm carryback election … 469farming … 242, 244federally-declared disaster
loss … 242, 244individual
applying to past returns … 255carrybacks … 254carryforwards … 263change in filing status … 265
marital status … 264pass-through entities … 267personal service corporation … 268qualified disaster loss … 242, 244qualified disaster recovery
assistance losses … 242qualified GO Zone losses … 242qualified recovery assistance
losses … 242questions to ask … 278real estate investment trusts
(REITs) … 242specified liability loss … 242, 245trust … 267
final year … 268New legislation
2009 RMD waiver … 4122-wheeled, 3-wheeled, and low-
speed plug-in electric vehicles … 442
AMT exemption amounts … 429build America bonds … 443built-in gains recapture
period … 432cancellation of indebtedness
deferral … 430COBRA continuation … 435economic recovery payment … 415education credits … 420
Energy Independence and Security Act of 2007 … 400
estimated tax payments … 430first-time homebuyer credit … 422health coverage tax credit … 438making work pay credit … 414new vehicle sales tax
deduction … 427NOL carryback period … 432partnership
failure-to-file penalty … 413plug-in electric vehicle conversion
credit … 442plug-in electric vehicle
credit … 442qualified higher-education
expenses … 421qualified small business stock gain
exclusion … 430residential energy property
credit … 439S corporation
failure-to-file penalty … 413small wind-energy property
credit … 442tax provisions expiration
dates … 446unemployment compensation
treatment … 426work opportunity tax credit … 434
NOL. See Net operating lossNoncustodial parent
dependency exemption … 531qualifying child … 48
Nonqualified stock option … 160Nonqualified use of principal
residence … 118
Office of Practitioner Enrollment (OPE) … 36
Office of Professional Responsibility (OPR) … 9–10, 33, 36
new director … 33sanctions. See Circular 230
Option contractcall … 451hedging … 451put … 451
Optional SE. See SEOriginal issue discount (OID)
related party … 289Outside basis. See Basis
N
O
2009 Workbook
Copyrighted by the Board of Trustees of the University of Illinois. This information was correct when originally published. It has not been updated for any subsequent law changes.
624 2009 Index
Parent-subsidiary controlled group … 305
Partnerstock ownership
related party … 281Partnership
failure-to-file penalty … 413inside basis … 181liquidation … 180NOL … 267outside basis … 181ownership inside
related party … 281property
basis … 180S election … 566stock ownership
related party … 281Passive activity
losses … 568–569Passive loss rules … 472
grouping activities … 473real estate professional
exception … 133Payroll
FICA taxes … 537Payroll tax
liability … 536single-member LLC … 369
Penalties … 1, 9–10accuracy-related … 540, 544–545,
578advising clients … 8appeals … 10assessment … 10client information disclosure … 14failure to
file … 38file correct information
returns … 9furnish copy of return … 9furnish preparer ID … 9provide a copy of return … 2report foreign bank and financial
accounts … 36retain returns … 9sign return … 9
failure to file … 575partnership … 413S corporation … 413
FAQs … 8information reporting … 557IRC §6662 … 78
statistics … 79IRC §6694 … 2, 5, 8
firms … 4IRC §6694(a) … 1, 3IRC §6694(b) … 1IRC §6695 … 9IRC §7216 … 1, 14negotiation of refund check … 9no due diligence for EIC … 9OPR investigation … 9other … 9preparer … 78
appeal process … 10assessment process … 7should have known … 3unreasonable position … 3
safe harbor … 6substance of transactions … 8substantial underpayment … 211substantial understatement … 78tax shelter … 3taxpayer … 78
failure-to-file … 7Trust Fund Recovery … 98
establishing willfuness … 101nonowner employees … 100responsible person … 98–99
unreasonable position … 2–3, 211Pension Protection Act of 2006 … 87,
360Per diem
high/low method … 317lodging … 317meals … 317related party … 317
Personal holding company tax … 369, 371
Personal residencerental
related party … 284Personal service corporation
NOL … 268Personal service corporation
(PSC) … 365, 371avoiding the classification … 372filing requirements … 372function test … 371
Per-unit retains payments in money … 480
Phishing … 86Plug-in electric vehicle credit. See
CreditsPonzi scheme
losses … 136, 521Power of attorney … 539
Preparers. See Tax return preparerPrincipal residence
nonqualified use … 118calculating taxable gains … 119defined … 118examples … 119exceptions … 121
extended duty … 122temporary absences … 123
sale of … 118excluded gains … 118
Prohibited transactionsqualified retirement plans … 328
Propertyexamples … 381
Property transfersrelated party … 285
divorce … 285PSC. See Personal service corporationPut option
hedging … 451
QPAI. See Qualified production activities income
QTIP trust … 363Qualified bonds … 443Qualified disaster loss
NOL … 244Qualified dividends
2011 tax rates … 111Qualified higher-education
expenses … 421Qualified joint venture. See Joint
ventureQualified production activities
income … 479Qualifying child … 41
adopted child … 44age requirement … 45age test … 45custodial parent … 48deductions
custodial parent … 53noncustodial parent … 53
dependent taxpayer test … 42disabled
defined … 46divorced or separated parents … 48foster child … 44full-time student … 45multiple taxpayers can claim
child … 52noncustodial parent … 48
P
Q
2009 Workbook
Copyrighted by the Board of Trustees of the University of Illinois. This information was correct when originally published. It has not been updated for any subsequent law changes.
2009 Index 625 I
rules … 53parent's filing status … 53relationship test … 43residency test … 44
death or birth … 44kidnapped child … 44stillborn child … 44temporary absence … 44
single parent examples … 64support test. See Support test
Qualifying relative … 41adopted child … 57citizenship or residency test … 55dependency tests … 54dependent taxpayer test … 42gross income test … 58
disabled individual … 59member of household or
relationship test … 56death or birth … 57joint return … 56temporary absence … 57
not qualifying child … 55parents not required to file
return … 55support test. See Support test
Real estatereporting rental activities … 546
Real estate IRA … 329distributions … 330
Real estate professionalpassive loss exception … 133
Real propertyinvestment … 166
Reasonable compensation … 524Recordkeeping
vehicle requirements … 200Related party … 279
accrued expenses … 282basis adjustment … 283below market loans … 291brother-sister controlled
group … 307controlled groups … 305defined … 279depreciable property
sale or exchange … 286discharge of indebtedness … 294imputed interest … 289installment sale … 287
resale … 287
involuntary conversion … 304like-kind exchange … 295, 564
holding period … 304marketable security … 289parent-subsidiary controlled
group … 305partnership
owned stock … 305passive activity disposition … 283per diem … 317personal residence rental … 284property transfers … 285reasonable rental expense … 284relationships … 280wash sale rules … 163
Relationship testqualifying child … 43
Reporting requirementstax preparers … 2
Reprimand. See Circular 230Required minimum distributions
2009 waiver … 117Residency test
qualifying child … 44divorced or separated
parents … 48Residential alternative energy credit.
See CreditsResidential energy property credit. See
CreditsRestricted stock option … 161Restructuring and Reform Act of 1998
(RRA 98) … 10, 105Retirement
expiring provisions … 446liquidating account at a loss … 325plans
401(k) common errors … 336contribution limits
401(k) … 342403(b) … 344403(b) catch-up
contributions … 344457 … 343457 catch-up
contributions … 343catch-up contribution … 342,
344defined benefit … 342defined contribution … 342IRA … 344Roth IRA … 345
correction programsaudit closing
agreement … 331, 335
self correction … 331–332voluntary correction … 331,
333demographic failure … 332employee plans compliance
resolution system … 331employer eligibility
failure … 332employer stock
distribution … 362investments rules … 328maintaining qualified
status … 331operational failure … 331plan document failure … 331prohibited transactions … 328qualification failures … 331rollovers as business startups
(ROBS) … 330SEP common errors … 339SIMPLE IRA common
errors … 340qualified plan
early withdrawal penalty … 574Roth IRA. See IRAself-directed IRA
prohibited transactions … 328Return preparers
tax fraud … 87Revenue Act of 1978 … 394Rollover. See IRARoth IRA. See IRA
S corporationbasis … 183BIG tax … 526built-in gain
alternatives to selling assets … 385
deemed dividend election … 386
like-kind exchange … 385liquidating assets … 385long-term lease … 385sale of corporate stock … 385
built-in gains tax … 432conversion from C corporation
retained earnings and profits … 386
death of shareholdereffect on S election … 387
failure-to-file penalty … 413
R
S
2009 Workbook
Copyrighted by the Board of Trustees of the University of Illinois. This information was correct when originally published. It has not been updated for any subsequent law changes.
626 2009 Index
liquidation … 397after C conversion … 387
loan basis … 186ordering rules … 186
loan repaymentbasis … 188
losses … 523NOL … 267
conversion to C … 275related party relationship … 280shareholder
election to reduce basis … 184Sale of a business
farmasset allocation … 489
installment sale … 175ordering rule … 175
related party … 282Sanctions. See Circular 230Scholarships
support test … 46School
defined … 46SE
earned income credit … 458net farm loss … 459optional farm method … 457optional nonfarm method … 457tax planning … 457
SE incomeCRP payments … 474sale v. trade
farm machinery … 491SE tax
state-sponsored childcare program … 535
See-through trust … 351, 358Self-directed IRA. See RetirementSelf-employment. See SESingle Life Expectancy Table … 356Single-member LLC … 369Small Business and Work Opportunity
Tax Act of 2007 (SBWOTA) … 1, 431
Social securityRoth IRA distributions … 320
Social security benefitsdisability … 458qualifying … 458support test … 60
Specified liability lossNOL … 245
Speculation … 451mark-to-market rules … 453
Start-up costs … 470
Statistics of Income BulletinSpring 2009 … 110Winter 2009 … 109
Stock50% voting power
related party … 307basis upon death … 398basis. See Basisconstructive ownership
related party … 281corporate
merger/acquisition … 162corporation owned
related party … 307employee stock purchase
plan … 160estate owned
related party … 305, 307family member owned
related party … 307incentive stock option … 160–161nonqualified stock option … 160options ownership
related party … 305, 307partnership owned
related party … 305, 307qualified small business
gain exclusion … 430restricted stock option … 160–161retirement plans
net unrealized appreciation … 362
S corporationbasis … 183
spouse ownedrelated party … 307
trust ownedrelated party … 305, 307
wash sale … 162Straddles … 454Stretch IRA. See IRAStudent loans
cancellation of debt … 515debt forgiveness … 174
Studentsco-op jobs … 46foreign
dependent … 43full-time qualifications … 45qualifying child … 45
Substantial authority … 507Chief Council Advice
(CCA) … 131evaluation of authorities … 507nature of analysis … 508
Supplemental social security recipients
work opportunity credits … 217Support test
Midwestern disaster area assistance … 64
person's own funds … 59qualifying child … 46
calculating support … 46child’s wages … 46scholarships … 46Survivors’ and Dependents’
Educational Assistance payments … 46
qualifying relative … 59advance payment to a home for
the aged … 61Armed Forces dependency
allotments … 60calculating support … 61childcare payments … 63exclusions … 64fair rental value … 62foster care payments … 60lodging provisions … 62medical insurance
premiums … 63multiple support
agreements … 64person lives in own home … 62person lives rent-free with
taxpayer … 62property provided … 63purchase of capital items … 63social security benefits … 60state-provided support … 60tax-exempt income … 60tax-exempt military quarters’
allowances … 60tuition payments and allowances
received … 63year of support … 59
Survivors’ and Dependents’ Educational Assistance payments
support test … 46
Tax adviceaccountant-client privilege … 105
limitations … 105Tax brackets
corporation … 365individual … 365
T
2009 Workbook
Copyrighted by the Board of Trustees of the University of Illinois. This information was correct when originally published. It has not been updated for any subsequent law changes.
2009 Index 627 I
Tax Extenders and AMT Relief Act of 2008 (TEARA) … 150, 155, 417, 421
Tax fraud2009 Dirty Dozen … 86disguised corporate
ownership … 88false request for abatement … 87filing false claim for refund … 87filing false returns … 576frivolous arguments … 87fuel tax credit … 88hiding income offshore … 86phishing … 86reporting to IRS … 89retirement plan arrangements … 87return preparer fraud … 87SE tax … 578tax-exempt organizations
abuse … 87trust misuse … 88zero wages … 88
Tax Gap … 78automated under-reporter
issues … 92Tax Increase Prevention and
Reconciliation Act of 2005 (TIPRA) … 114
Tax lien … 97Tax planning
farm … 459strategies … 457trading v. selling farm
machinery … 491high-income taxpayers … 109, 114
converting IRA … 115marital status … 116tax-exempt bonds … 116
SE tax … 457Tax preparers
determination … 4examples … 5information verification … 6nonsigning … 4requirements
copy of return or claim for refund … 2
reporting … 2willful and reckless conduct … 3
Tax rates2009 … 1112011 … 111capital gains … 111expiring provisions … 446qualified dividends … 111
Tax Reform Act of 1986 … 383Tax return information
consentchecklist … 25contents … 16copy to taxpayer … 20duration … 20electronic signature … 19Form 1040 series
requirements … 17–18format … 16multiple uses or
disclosures … 19sample letters … 21timing … 20
disclosure … 14errors
advising client … 38amended return … 37correcting … 38notifiying client … 37tax benefit rule … 38
Form 1040 series requirements … 18
permanent client files … 39permissible disclosures
with consent … 16without consent … 23
court order … 24legal advice … 24list of tax business … 24other tax preparers … 23payment of services … 24peer review … 24preparer's incapacity or
death … 25reporting a crime. … 25taxpayer's fiduciary … 24
use of … 14verification … 6
Tax returnsstatistics … 109–110
Tax scams. See Tax fraudTax shelter
disclosure requirements … 8penalties … 3
Tax-exempt organizationsexecutive compensation … 74Form 990. See IRS FormsForm 990-EZ. See IRS Formsindependent contractors … 74nonfiler initiatives
employment taxes … 78gaming … 78high dollar donations … 78
intermittent filers … 78substantial unrelated business
income … 78reporting
executive compensation … 73transactions with interested
persons … 73requirements for small
organizations … 76StayExempt.org workshops … 77tax fraud … 87
Taxpayer Advocate Service (TAS) … 97
Taxpayer identification number … 557
Tax-sheltered annuity … 344Temporary Assistance for Needy
Families … 215Travel expenses
temporary versus indefinite assignment … 582
unreimbursed … 579–580Treasury Inspector General for Tax
Administration (TIGTA) … 1Trust
basisirrevocable trust … 180revocable trust … 179
conduit … 351, 359, 364IRA beneficiary … 363IRA stretch planning … 357NOL … 267
final return … 268how to use … 267
QTIP … 363qualified subchapter S … 387related party relationship … 280revocable … 364see-through … 351, 358, 364stock ownership
related party … 281
U.S. citizendependent … 42
U.S. nationaldefined … 43dependent … 42
U.S. resident aliendependent … 42
Unemployment compensation … 95Uniform Lifetime Table … 349Unreasonable position. See Penalties
U
2009 Workbook
Copyrighted by the Board of Trustees of the University of Illinois. This information was correct when originally published. It has not been updated for any subsequent law changes.
628 2009 Index
Unrelated business income tax (UBIT)real estate IRA … 329
Vacation homebasis … 167
Vacation rentalbasis … 168
Vehiclesbusiness use
farmers … 202depreciation
deductibility … 200limits … 201
expenses … 200deductibility … 200types … 201
lease expense adjustment … 200lease inclusion amount … 202
personal use … 200annual lease value rule … 204cents-per-mile rule … 206employee … 204fringe benefits … 206
calculating withholding … 206
recordkeeping … 200business miles … 202
sales tax deduction … 427standard mileage rate … 201
Veteranswork opportunity credits … 215
Wash salerule … 162, 453stock … 162
Wind energy … 191
ARRA provisions … 193cash grant … 193easements … 194
collection distribution line … 194
construction … 194perpetual … 194transmission … 194
Wind turbine … 192Work opportunity tax credit. See
CreditsWorker, Retiree, and Employer
Recovery Act of 2008 … 360, 412
Working Families Tax Relief Act of 2004 … 41
Workpapersprotected work product … 551
WRERA. See Worker, Retiree, and Employer Recovery Act of 2008
V
W
2009 Workbook
Copyrighted by the Board of Trustees of the University of Illinois. This information was correct when originally published. It has not been updated for any subsequent law changes.