In their opinion, the expenditures did not meet the requirement because individuals commonly incur
Amounts would be taxable if, under the arrangement, the employee can be paid those amounts regardless Of whether they incur
This change also could result in the violation by some utilities of their debt covenants, causing them to incur
additional costs to renegotiate or refinance that debt.
In order to prevent hostile takeovers, corporations often will incur
expenses to redeem shares of their stock.
SOP 98-1 says an entity should expense costs it incurs
during the preliminary project stage of software development as incurred.
It is not critical to inquire whether a taxpayer really had to incur
a particular expense, such as paying an employee's or agent's legal fees, if incurring such an expense was "appropriate or helpful.
In TAM 9541005, the IRS ignored the fact that the company's liability to incur
the costs derived from its ownership of the land prior to the contribution to the county.
Also, due to the effective date, taxpayers that incur
organization or start-up costs in 2004 may need to make two elections--one under the old law and one under the AJCA.
Even though the partnership agreement allowed the general partner to incur
such expenses, the Tax Court observed the partners were not notified of the payments.
Otherwise, the government may incur
substantial costs in studying and implementing changes-- in a veritable vacuum--only to find that the new system is unworkable.