The Documents Matter: Watch the Documents! (Currently Unavailable)

Author: Jennifer Kowal

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: June 2020

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

• Doctrine of recession
• Backdating rules
• Differentiate between legal backdating and fraudulent backdating
• Tax doctrine of rescission applies and how to use it strategically
• Common situations that arise with regard to backdating and rescission

Learning Objectives

• Describe the doctrine of recession
• Recognize 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 correct statements regarding "As of" dating
• Identify the importance of the Moore vs. Commissioner case

Level
Intermediate

Instructional Method
Self-Study

NASBA Field of Study
Taxes (2 hours)

Program Prerequisites
A basic understanding of working with documents.

Advance Preparation
None