The Sixth Circuit Court of Appeals reversed the decision, reasoning that fiduciaries can incur
penalties for negligence if they failed to hire an adviser but individuals are not similarly penalized.
The Tax Court rejected the successor argument but considered Square D's alternative claim: It considered whether a taxpayer must be legally obligated to make a payment before it can deduct the payment since it did not incur
Since it is common for individual taxpayers with large portfolios to use outside advisers and pay for their advice, the trust did not incur
a unique expense.
Caveats: An employer adopting a WBP and funding a trust to provide current and retiree medical benefits should be wary of plans that claim to offer deductions appearing to be considerably in excess of the actual costs an employer would incur
if the benefits were insured through a commercial insurance company.
FASB's proposal mandates that utilities recognize a liability for nuclear decommissioning obligations at the time they incur
those obligations--generally at the time of initial plant operation.
6) In addition, taxpayers may incur
a plethora of non-software related expenditures to address business issues arising from the year-2000 issue.
The holding in Woodward also applies to costs incurred by minority shareholders who incur
legal fees to appraise their minority stock interest.
The Company expects to incur
a non-operational charge in fiscal 2005 of approximately $0.
In reversing, the Sixth Circuit emphasized that individual investors are neither required to consult investment advisers, nor do they incur
penalties or potential liability if they act negligently for themselves.
Entities reasonably could argue that they will incur
R&D costs to generate potential new revenue streams (such as discoveries of new vaccines); management would rarely approve similar arguments for uncertain internal-use software projects unless it was sure it had the technology to develop the software.
GP Strategies had previously incurred approximately $1 million of expenses with respect to the litigation and will incur
In order to reduce future operating expenses and consolidate the number of physical locations following an acquisition, companies often incur
fees and charges to terminate leases or contractual commitments.
The Company had previously incurred approximately $1 million of expenses with respect to the litigation and will incur
Generally, an expense (for legal fees or otherwise) is "ordinary" if a business person would commonly incur
it under the particular circumstances.
Clients may incur
significant costs while trying to mitigate damages to their businesses.