1. What are the top challenges facing tax return preparers this tax season?
The recent expansion of the NOL five-year carryback election no longer affects only small businesses. Small-business preparers that made a 2008 election can make an additional election for 2009. Another challenge is the Section 108(i) deferral election, in which an eligible business must choose between deferring debt-discharge income and excluding it altogether while reducing tax attributes by a corresponding amount. Finally, there is the checklist which must be continually updated to include all of the new and extended credits and deductions, particularly the energy credits, bonus depreciation, first-time homebuyer credit, and disaster relief.
2. What are you doing to help them prepare?
BNA Tax and Accounting Portfolio Series Portfolio 539 and Tax Practice Series Chapter 2410 cover NOLs and provide detailed explanations of the Section 172(b)(1)(H) election before and after the 2009 Workers, Homeownership, and Business Assistance Act. Portfolio 541, Tax Aspects of Restructuring Financially Troubled Businesses and Tax Practice Series Chapter 1040: Discharge of Indebtedness with client letter explain Sec. 108(i). Also available is our 2009 Year-End Tax Planning Client Letter and the Disaster Relief Chart in Portfolio 597, Tax Incentives for Economically Distressed Areas.
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