Discussion:Sec 444 Election - Required Payment Under Sec 7519
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Discussion Forum Index --> Advanced Tax Questions --> Sec 444 Election - Required Payment Under Sec 7519
Discussion Forum Index --> Tax Questions --> Sec 444 Election - Required Payment Under Sec 7519
| 26 October 2009 | |
| I have an S Corporation that wants to elect a fiscal year other than 12/31. They were a C corporation immediately prior to both the S and the fiscal year elections. Base income is defined as the taxable income of the C corporation in the prior year. The C corp is required to include the LIFO recapture amount in income for its last year. Does anyone know of an available adjustment that would permit reducing this income for the portion of the recapture that we are able to spread over 4 years? If so, do you have a citation or authority for your thoughts? Any response would be appreciated! | |
| 27 October 2009 | |
| Jmwcpa, I'm not sure that I'll be any help to you, but I'll at least give you a bump back up the list of questions. I don't think that the adjustment that you want is allowed. I researched the issue a couple of years ago. My client had a large sale of a portion of his business with very significant gain. There was nothing that allowed an adjustment for this one-time spike in income. The client's 7519 payment was HUGE. The client took some comfort that he would receive a refund the following year. I believe that the same will apply in your situation. | |
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