Put on the Gloves, Speak Bluntly, and Devise a Plan to Emerge from Chaos The author shares the trials and tribulations involving a troubled company that was on the verge of closing and managed to recover. In this engagement, he took the lead, coordinated and assigned roles within the company, negotiated with the IRS Revenue Officer, had difficult conversations with bank (a potential deal breaker), and was compensated. Introduction Saving a business creates one of the greatest highs you can have in accounting. Getting the Client I received a referral for a client in another state requiring a plane trip.…
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Procedures and Bankruptcy Code Changes for CPAs and Consultants A business or individual facing financial distress can utilize three types of federal bankruptcies to attempt to resolve their financial difficulties. This article provides an overview of the differences and when each would be used. Keep in mind that bankruptcy is a legal proceeding and must be handled by an attorney. However, business and financial advisors need to have a good understanding of the process, when a bankruptcy is necessary, and which type is most applicable. Advisors need to be able to take a dispassionate view and assist in advising a…
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Determining Whether Debt is Recourse or Nonrecourse When a partnership has a debt that is forgiven, its characterization as recourse or nonrecourse can make a big difference in its tax treatment, including being eligible to be excluded under Sec. 108, as this article explains. Mark Cook, partner with SingerLewak LLP, discusses how Sec. 752 should be interpreted under CCA 201525010. To read the full article in The Tax Adviser, click: Chief Counsel Advice Tackles Sec. 752’s Impact on Partnership COD Income.