Code Section Description Page
IRC § 38 investment tax credit 2-27
IRC § 41 Systematic scheme to obtain losses
and credits that are not allowable
3-9
IRC § 51 and 51A Work Opportunity Credits or the
Welfare to Work Credit
2-26
IRC §61 Gross income consists of all income,
from all sources, such as compensation for services, business income, interest, rents, dividends and gains from the sale of property. Only items specifically exempt may be excluded. Gross income is the starting point in
determining tax liability and is broadly defined.
3-97
IRC § 74(a) Except as otherwise provided in this
section or in section 117 (relating to scholarships), gross income includes amounts received as prizes and awards.
3-97
IRC § 102(c) In regards to employee gifts, subsection
(a) shall not exclude from gross income any amount transferred by or for an employer to, or for the benefit of, an employee.
3-97
IRC §162 specifically focuses on the issue of
trade or business expenses
2-25, 3-44
IRC § 168 Specifically includes as 15-year
property “any IRC section 1250 property which is a retail motor fuels outlet (whether or not food or other convenience items are sold at the outlet).”
3-23, 3-41
IRC § 168 (k) Bonus Depreciation 2-26, 3-41
IRC § 170 Charitable contribution 2-25
IRC § 170(b) Charitable contribution basis 2-24
IRC § 170(e) (3) Charitable contribution-Special Rules 2-25
IRC § 179 MACRS personal property election 2-26, 3-20
IRC § 183 In the case of an activity engaged in by
an individual or an S corporation, if such activity is not engaged in for profit, no deduction attributable to such activity shall be allowed under this
chapter except as provided in this section.
IRC § 183(d) If the gross income derived from an
activity for 3 or more of the taxable years in the period of 5 consecutive taxable years which ends with the taxable year exceeds the deductions attributable to such activity (determined without regard to whether or not such activity is engaged in for profit), then, unless the Secretary establishes to the contrary, such activity shall be
presumed for purposes of this chapter for such taxable year to be an activity engaged in for profit. In the case of an activity which consists in major part of the breeding, training, showing, or racing of horses, the preceding sentence shall be applied by
substituting “2” for “3” and “7” for “5”.
3-97
IRC § 183(e)(4) TIME FOR ASSESSING DEFICIENCY
ATTRIBUTABLE TO ACTIVITY.--If a taxpayer makes an election under paragraph (1) with respect to an activity, the statutory period for the assessment of any deficiency attributable to such activity shall not expire before the expiration of 2 years after the date prescribed by law (determined without extensions) for filing the return of tax under chapter 1 for the last taxable year in the period of 5 taxable years (or 7 taxable years) to which the election relates. Such deficiency may be assessed
notwithstanding the provisions of any law or rule of law which would
otherwise prevent such an assessment.
3-97
IRC § 195(b), Start-up expenditures may, at the
election of the taxpayer, is treated as deferred expenses.
IRC § 197 Depreciation of intangibles such as
Goodwill, etc.
3-30, 3-87
IRC § 262 addresses the disallowance of
personal, living and family expenses
IRC § 263 & 263A Uniform Capitalization Rules 2-22
IRC § 274(d) Expense Issues-Entertainment, Travel,
and meals
IRC § 267 Losses by a related company disallowed
3-74
IRC § 301 (c) Sale of Accounts Receivable 2-17
IRC § 311(b) Sale of Accounts Receivable 2-17
IRC § 280A(c)(1)(A) Expense Issues-Automobile
IRC §441 period for computation of taxable
income
2-25
IRC §441 (f) Fiscal year – period election 2-25
IRC §446 Accounting Methods-Examiner
authority to change
3-34, 3-38
IRC §448 Accounting Methods: limit on use of
cash method
3-55
IRC §451-5 Deferral of Income rules 2-15
IRC §453A Deferral gross profit 2-16
IRC §453(b)(2)(A) and (B) Disallow the use of installment method on any dealer disposition and
disposition of personal property that would have to be included in inventory if the property were on hand at the close of the taxable year.
3-55
IRC §461 Rule(s) for Year of Deduction
IRC §471 inventories must conform as nearly as
may be to the best accounting practice in the trade or business and must clearly reflect income
2-17, 3-38, 3-72
IRC §475 auto dealers to elect section 475 to
mark receivables to market value
3-90
IRC §481(a) Adjustment to amounts paid or incurred 3-34, 3-90, 4-21
IRC §482 3-77
IRC §483(f) 3-80, 3-83
IRC §530 Employment Tax 2-28
IRC §1001(b) The amount realized from the sale is
the cash plus the fair market value of any other property received.
3-83
IRC §1245 Depreciation - shorter cost recovery
period
2-26, 3-41
IRC §1250 Depreciation – recovery periods 2-26
IRC § 1253 Amounts paid or incurred on account of
a transfer, sale, or other disposition of a franchise must be capitalized and amortized over the useful life of the franchise, trademark or trade name
2-24
IRC § 1401 Imposes taxes upon the self-
employment income of every individual.
3-97
IRC § 1402(a) and (b) Define “self-employment income” as the
gross income derived by an individual from any trade or business carried on by the individual with certain exceptions and exclusions.
3-97
FICA Taxes of the employee for tips reported.
IRC § 4161(a) imposes a tax on the sale of articles of
sport fishing equipment
2-27
IRC § 4161 (b) Imposes a tax on bows, certain bow
parts and accessories, certain quivers, and certain arrow components.
2-27
IRC § 4162 Enumerates the tax on the sale of
articles of sport fishing equipment
2-27
IRC § 6110(k)(3) All events test 2-13
IRC § 7602(c) Requires that we give taxpayers
reasonable notice in advance of all contacts with third parties made regarding the determination or collection of their tax liabilities.
3-29
IRC § 7609(a) Give notice of this third-party summons
to the taxpayer and all other persons identified in the summons.
3-29
IRC § 7491(b) Use of Surveys and Statistics 3-30
Regulation Chapter Topic
Page
Treas. Reg. 1.61-2(a) Wages, salaries, commissions paid
salesmen, compensation for services on the basis of a percentage of profits,
commission on insurance premiums, tips, bonuses (including Christmas bonuses), termination or severance pay, rewards, jury fees, marriage fees and other contributions received by a clergyman for services, pay of
persons in the military or naval forces of the United States, retired pay of employees, pensions, and retirement allowances are income to the
recipients unless excluded by law.
3-97
Treas. Reg.1.132-5(o) Defines who is a full-time
salesperson, and what qualified automobile demonstration use is.
3-73
Treas. Reg. 1.162-3 Accounting for Materials & Supplies 3-9
Treas. Reg. §1.170A-4A Charitable Contributions-Special rules 2-25
Treas. Reg. §1.182.9. Election to postpone determination
with respect to the presumption
described in section 183(d) Election to postpone determination with respect to the presumption described in section 183(d)
Treas. Reg. §1.183-2. Activity not engaged in for profit defined
3-97 Treas. Reg. §1.263A-1. and Treas.
Reg. §1.263A-3
Uniform Capitalization Rules 2-22
Treas. Reg. §1.267 (f)-1(f) 3-74
Treas. Reg. 1.446 Accounting Methods 3-52, 3-72
Treas. Reg. § 1.451-5(c ) (3) Any payment received pursuant to a
certificate is substantial advance payment
2-15
Treas. Reg. § 1.471-1 Consignments of merchandise to
others to sell are not sales since the title of merchandise remains with the consignor
2-15
Treas. Reg. § 1.471-8 Authorizes the use of the retail
method of estimating the cost of inventories.
2-20
Treas. Reg. § 1.472-8(e) (3) Authorizes the inventory price index
valuation method.
2-22
Treas. Reg. 31.3508-1(a) For Federal income and employment
tax purposes, an individual who performs services after December 31, 1982, as a direct seller shall not be treated as an employee with respect to such services, and the service- recipient shall not be treated as an employee with respect to such services.
3-97
Treas. Reg. 31.3508-1(c) The term “direct seller” means any
person if such person is engaged in the trade or business of selling (or soliciting the sale of) consumer products to any buyer on a buy-sell or deposit-commission basis for resale by the buyer or any other person in the home or in some other place that does not constitute a permanent retail establishment, or is engaged in the trade or business of selling (or soliciting the sale of) consumer
products in the home or in some other place that does not constitute a permanent retail establishment.