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Authors

Rose L. Bailey

Abstract

When framing adequate tax advice to protect oneself from preparer penalties under sometimes ambiguous or unsettled tax law, or when trying to affect your best appellate argument or direct a strategic audit litigation path, there can be no doubt of the importance of considering judicial precedent developments in all of these paths. To that end, under the discretion of this Author, a selection of relevant administrative regulations and rulings as well as judicial authority rendered in 2009 through spring 2010 are contained in this Article to cover significant income taxation developments impacting certain closely-held entities. Closely-held entities are considered, for purposes of this Article, "flowthrough" entities regulated under two important subchapters of the Internal Revenue Code: (i) Subchapter K governing income taxation of partnerships; and (ii) Subchapter S governing income taxation of C corporations electing to be taxed as S corporations. The selected authority for emphasis is not intended to be a fully comprehensive review but rather a selection of those developments deemed most important for the tax practitioner advisor.

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