CCH TAX NEWS HEADLINES - OCTOBER 4, 2O11

CCH TAX NEWS HEADLINES - OCTOBER 4, 2O11 _Settlement Proceeds Predicated on Lost Profits and Punitive Damages Were Ordinary Income to Partnership; Agreement Allocation Not Determinative; Accuracy-Related Penalty Imposed (Healthpoint, Ltd., TCM)_

Posted on _10/04/2011_ nd-punitive-damages-were-ordinary-income-to-partnership-agreement-allocation-not-determinative-accuracy-related-penalty-imposed-healthpoint-ltd-tc/) by _CCH_ The proceeds received by a partnership in the settlement of claims against a competitor that were determined to be lost or disgorged profits and punitive damages were taxable as ordinary income. The partnership, a specialty pharmaceutical company, filed two suits ? _Continue reading ?_ Posted in _Federal Tax Headlines_ | _Leave a comment_ _Appeals Officer Did Not Abuse Discretion in Rejecting Offer-in-Compromise; Expert Evidence Considered on Review (Kerit Mechanical Associates, Inc., TC)_ Posted on _10/04/2011_ by _CCH_ An IRS Appeals officer did not abuse her discretion in rejecting a contractor?s offer-in-compromise in regard to employment taxes. The officer took into account all of the contractor?s financial information, including recent net income, recent additional accounts receivable, and a ? _Continue reading ?_ Posted in _Federal Tax Headlines_ | _Leave a comment_ STATE TAX HEADLINES _District of Columbia ~ Tobacco, Sales and Use Taxes: Reminder Issued Regarding New Sales and Use Tax and Cigarette Surtax Rates, New Filing Period_ Posted on _10/04/2011_ by _CCH_ The District of Columbia reminds taxpayers of sales and use tax rate changes and cigarette surtax rate changes that are effective October 1, 2011, as well as the new 2011 annual sales and use tax filing period. The tax ? _Continue reading ?_ Posted in _State Tax Headlines_ | _Leave a comment_ _California ~ Sales and Use Tax: Implementation of New Requirement for Certain Out-of-State Retailers to Collect Tax Postponed_ Posted on _10/04/2011_ by _CCH_ The California State Board of Equalization (BOE) reminds taxpayers that on September 23, 2011, Governor Edmund G. Brown, Jr., signed Assembly Bill 155 (A.B. 155), which retroactively repealed the provisions of A.B. 28×1 for California sales and use tax nexus ? _Continue reading ?_ Posted in _State Tax Headlines_ | _Leave a comment_ _All States ~ Multiple Taxes: U.S. Supreme Court Acts on State Tax Petitions as New Term Begins_ Posted on _10/04/2011_ by _CCH_ The U.S. Supreme Court took action on three state tax petitions as its new term began on October 3. Review Denied The Court denied review in the following state tax-related matters. Florida: Nonresident owners of Florida property had ? _Continue reading ?_ Posted in _State Tax Headlines_ | _Leave a comment_