1996-2 CB 1], employment taxes on accrued
bonuses and vacation pay of an accrual method taxpayer are deductible in the year in which they are paid rather than the year the vacation/bonus pay is accrued
RMC argued the IRS had taken an inconsistent position since, in 1994, it had allowed the franchise to deduct the accrued
interest for the first eight months of that year when the 100% shareholder held the note, but it had not allowed RMC to deduct the accrued
interest for pre-1994 years.
In Stratmore, (14) the Third Circuit, in reversing the Tax Court and other circuit precedent, held that interest accrued
and paid after a corporate debtor's discharge in bankruptcy is deductible by the guarantor under Sec.
Further, most large taxpayers have a variety of accrued
liabilities that are deductible upon payment for tax.
1997), an additional liability be recognized when the unfunded obligation for retirees and employees eligible for benefits--the "minimum liability"--exceeds the accrued
liability on the balance sheet.
We reach this conclusion, because section 461(d) requires that, in the case of accrual basis taxpayer, to the extent any action of a taxing jurisdiction taken after December 31, 1960, accelerates the time for accruing a tax liability, then such taxes shall be treated as accruing at the time they would have accrued
but for such action of the taxing jurisdiction.
Second, leave policies should specify whether the employee will be permitted or required to substitute accrued
paid leave available under existing leave policies for unpaid leave under the FMLA.
original issue price plus accrued
, but unpaid, OID).
This decision clarifies that the deduction for federal income tax is based on the tax accrued
on the income a taxpayer reports under its accounting method.
The lender, who had received permission from the bankruptcy trustee to sell the house, sold it for $1,215,000 in January 1995--at which time the principal balance was $1,341,352, including $126,352 of accrued
but unpaid interest.
interest to the Redemption Date per Class A Certificate and the Class B Certificates will be redeemed in full by payment of $0.
163 allows taxpayers to deduct "all interest paid or accrued
within the taxable year of indebtedness.
The key issue was to identify the date a commission should be accrued
When an employee dies, the employer will often owe the employee for accrued
current wages, vacation accruals, bonuses earned, etc.
106, the present value fo postretirement benefits must be fully accrued
by the date the employee is fully eligible to receive benefits.