Tax Benefit Rule, Claim of Right Doctrine, Mitigation, & Section 1341 (Currently Unavailable)

Author: Jennifer Kowal

CPE Credit:  2 hours for CPAs
2 hours Federal Tax Related for EAs and OTRPs
2 hours Federal Tax Law for CTEC

It is common knowledge that tax returns are filed and taxes are paid on an annual basis. Generally, subsequently occurring events do not permit a taxpayer to go back and amend an earlier return. Rules relating to statutes of limitation and return amendment may result in double taxation or a double benefit. Procedural rules such as the tax benefit rule, the claim of right doctrine, the mitigation rules, and I.R.C. section 1341 attempt to address these problems. This on-demand course will provide detailed training on these rules and doctrines, illustrated with case studies.

This course covers situations in which tax benefit rule requires taxpayer to include items in income and when a taxpayer must include income received under a claim of right, even if retention of the money is uncertain. It also covers the scope of the mitigation provisions, including when they may preclude a taxpayer from receiving a tax benefit in a year open under the statute of limitations, as well as the operation of section 1341, and when it allows a tax credit based on a deduction related to income included in a prior year.

Publication Date: May 2018

Designed For
Tax practitioners at all levels who provide advice and return preparation involving tax timing issues.

Topics Covered

  • Tax Benefit Rule
  • Claim of Right Doctrine
  • Mitigation Rules
  • Proper application of Section 1341

Learning Objectives

  • Describe situations in which tax benefit rule requires taxpayer to include items in income
  • Identify when a taxpayer must include income received under a claim of right, even if retention of the money is uncertain.
  • Explain when the mitigation provisions may preclude a taxpayer from receiving a tax benefit in a year open under the statute of limitations
  • Recognize when section 1341 may allow a tax credit based on a deduction related to income included in a prior year
  • Differentiate IRC sections and how they apply
  • Identify what must be present for the claim of right doctrine to apply
  • Identify Section 1341 requirements
  • Recognize how the tax benefit rules apply
  • Differentiate statements with respect to the tax benefit doctrine

Level
Intermediate

Instructional Method
Self-Study

NASBA Field of Study
Taxes (2 hours)

Program Prerequisites
Basic understanding of tax benefit rules.

Advance Preparation
None

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