The Documents Matter: Watch the Documents!

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

What happens if a client sold his stock last year prior to a drop in stock rates this year? Can you help undo the transaction? How about a client who transferred valuable intellectual property to an offshore subsidiary, mistakenly thinking it would save taxes? What if a client tells you that he made a gift of stock in his company to his child last year, but they never got around to documenting anything? In the meantime, the value of the stock has likely increased. Can he sign the documents making the gift showing last year’s date? The tax law principles of backdating and rescission affect a taxpayer’s ability to “undo” a transaction and to execute the documents recording a tax event. This course explains these doctrines, illustrating their application with many practical examples.

Publication Date: December 2017

Designed For
Tax practitioners at all levels who prepare returns or advise clients on tax consequences of real estate transactions, gifts, formation, and transactions involving business entities.

Topics Covered

  • Describe the doctrine of recession
  • Backdating rules
  • Legal backdating and fraudulent backdating
  • Tax doctrine of recession applies
  • Common situations that arise with regard to backdating and rescission

Learning Objectives

  • Describe the doctrine of rescission
  • Recognize definition of backdating rules
  • Differentiate between legal backdating and fraudulent backdating
  • Recognize when the tax doctrine of rescission applies and how to use it strategically
  • Identify common situations that arise with regard to backdating and rescission
  • Describe types of backdating
  • Differentiate memorialization of terms versus fabrication
  • Describe "as of" dating


Instructional Method

NASBA Field of Study
Taxes (2 hours)

Program Prerequisites
A basic understanding of working with documents.

Advance Preparation

Registration Options
Regular Fee $55

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