c corporation benefits

• Tax Benefits of Converting a C Corporation with Undervalued Assets

As a result of the recent economic downturn, many businesses have sustained significant declines in the value of their assets, particularly those holding real estate or certain intangible assets. The future of these businesses, while promising over the long term, may be dependent on attracting additional capital or financing. In cases where the business is taxed as a C corporation, it may be beneficial to convert the corporation to an entity taxed as a partnership. Such a conversion can provide significant tax benefits to current owners by triggering a tax loss with respect to their interests. Care must be taken as to the form of the conversion, because the tax consequences can differ significantly. Thus, before undertaking a statutory conversion, it is advisable to make sure that its t...

• CPA Journal, The
• Vol. 80 Nbr. 4, April 2010

• John Maclachlan; James Brown; Stephen K. Manley; Alaina Spurlock; Bernd Stahr; Michael Zainotz, on Behalf of Themselves and all Others Similarly Situated, Plaintiffs-Appellants, v. Exxonmobil Corporation (Successor By Merger To Mobil Corporation), as Trustee Administrator and Fiduciary of Retirement, Savings, Severance, Separation, Insurance, and Other Miscellaneous Employee Benefit/Welfare Plans of Mobil Corporation; Thomas C. Harrison, as Assistant Administrator Benefits of Exxonmobil Corporation, Retirement, Savings, Severance, Separation, Insurance, and Other Miscellaneous Benefit Plans of Exxonmobil Corporation; Retirement Plan, Also Known as Mobil Retirement Plan; Comprehensive Medical Plan, Also Known as Mobil Medical Plan; Dental Assistance Provisions, Also Known as Mobil Dental Plan; Dependent Group Life Insurance Plan, Also Known as Mobil Group Life Insurance Plan; Disability Income Plan; Employee Stock Ownership Plan, Also Known as Mobil Stock Plan; Employee Savings Plan, Also Known as Mobil Sa..., 350 F.3d 472 (5th Cir. 2003)

Tony P. Rosenstein (argued), Baker Botts, Houston, TX, for ExxonMobil Corp. Robert Beattie McNeal, Monica Levine Lacks, Frilot, Partridge, Kohnke & C...

• Federal Circuits

• Vickie D. Lefebre, Administratrix, Estate of Don C. Lefebre, Appellee, v. Westinghouse Electric Corp. Management Disability Benefits Plan; Westinghouse Electric Corporation and Equitable Life Assurance Society of the United States, a New York Corporation, Appellants, and Metropolitan Life Insurance Company, a New York Corporation, Defendant. Vickie D. Lefebre, Administratrix, Estate of Don C. Lefebre, Appellant, v. Westinghouse Electric Corp., Management Disability Benefits Plan; Westinghouse Electric Corporation; Metropolitan Life Insurance Company, a New York Corporation and the Equitable Life Assurance Society of the United States, a New York Corporation, Appellees., 747 F.2d 197 (4th Cir. 1984)

Werner Weinstock (Joseph G. Williams, New York City; Barrett W. Freedlander, Niles, Barton & Wilmer, Baltimore, Md., on brief), for appellants. John ...

• Federal Circuits

• S corporation reform on the move.

The laws governing the formation and operation of S corporations should be reformed to allow such entities greater access to financing and to promote economic opportunities. Currently, S corporations are restricted to 35 shareholders, the types of shareholders are limited and shareholders cannot participate in many types of benefit plans. The proposed reforms would expand the allowable number of shareholders and would treat shareholders like C corporation shareholders for benefits purposes. Allowing pension plans and other institutional investors to be shareholders would improve access to finance.

• Journal of Accountancy
• Vol. 180 Nbr. 2, August 1995

• 62 Fair Empl.Prac.Cas. (Bna) 119, 61 Empl. Prac. Dec. P 42,280, 16 Employee Benefits Cas. 2677 John C. Stetson, Plaintiff-Appellant, v. Nynex Service Company and Nynex Corporation, Defendants-Appellees., 995 F.2d 355 (2nd Cir. 1993)

David L. Sohn, Huntington, NY, for plaintiff-appellant. Stuart H. Bompey, New York City (Jill L. Rosenberg, Orrick, Herrington & Sutcliffe, New York ...

• Federal Circuits

• General Administrative Regulations; Mutual Consent Cancellation; Food Security Act of 1985, Implementation; Denial of Benefits; and Ineligibility for Programs Under the Federal Crop Insurance Act

The Federal Crop Insurance Corporation (FCIC) proposes to amend the General Administrative Regulations to revise Subpart U-- Ineligibility for Programs under the Federal Crop Insurance Act to eliminate redundancies, improve clarity, remove or update obsolete references, and add references to other provisions regarding ineligibility for Federal crop insurance. In addition, FCIC proposes to remove Subpart C--General Administrative Regulations; Mutual Consent Cancellation and Subpart F--Food Security Act of 1985, Implementation; Denial of Benefits. The changes will apply for the 2013 and succeeding crop years.

• Federal Register Nbr. 76 FR 75799, December 05, 2011
• Proposed rules
• Federal Crop Insurance Corporation

• Is S Corp or C Corp the Better Route?

We are forming a new corporation and I'm finding I have decisions to make. What are the advantages of conducting my business as an S corporation instead of a C corporation? There are benefits to both options, but the S corporation stands out for a number of reasons.

• The Record, Bergen County, NJ
• July 14, 2007

• Do Nonprofit Hospitals Provide Community Benefit? A Critique of the Standards for Proving Deservedness of Federal Tax Exemptions

Many qualified nonprofit hospitals have received great financial benefits from tax exemption. A 1990 report by the GAO showed that 57% of the nonprofit hospitals provided less charitable care than the value of the tax exemption they received. This conflicts with the rationale for tax exemptions: that the benefits nonprofit hospitals provide to society outweigh the benefits that the government would receive from taxing the organizations. The debate over deservedness has recently reignited, and nonprofit hospitals have been under great scrutiny for the tax exemptions they receive. The Senate Finance Committee's staff, keenly aware of the ineffectiveness of the community benefit standard, has proposed reforms in this area. The IRS, also aware of the need for improvement in the reporting re...

• Journal of Corporation Law
• Vol. 34 Nbr. 2, January 2009

• Case study: providing fringe benefits to S corporation employees.

In a C CORPORATION, EMPLOYEE FRINGE BENefits generally are deductible at the corporate level, and the employee excludes the value from income. In an S...

• The Tax Adviser
• Vol. 42 Nbr. 12, December 2011

• 22 Employee Benefits Cas. 2105, Pens. Plan Guide (Cch) P 23,950I Albert C. Mcnab, Et Al., Plaintiffs-Appellants, v. General Motors Corporation, Defendant-Appellee., 162 F.3d 959 (7th Cir. 1998)

Raymond J. Hafsten, Jr. (argued), Indianapolis, IN, for Plaintiffs-Appellants. David M. Davis (argued), Hardy, Lewis, Pollard & Page, Birmingham, MI,...

• Federal Circuits