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Veterinary Medicine - Chapter 4, Supporting Law/ Industry Organizations & Web Sites

Publication Date - April, 2005

NOTE: This guide is current through the publication date. Since changes may have occurred after the publication date that would affect the accuracy of this document, no guarantees are made concerning the technical accuracy after the publication date.


Table of Contents
Tax Code, Regulations and Official Guidance Search


Chapter 4, Supporting Law/ Industry Organizations & Web Sites

Introduction

This chapter is designed to provide the examiner with the ability to make use of the guide by referencing a particular code section in lieu of a topic as well as providing a list of industry web sites. Relevant code sections, treasury regulations, revenue rulings, revenue procedures, and court decisions cited within the guide are outlined below.

In addition, selected industry organizations and their web sites, as well as links to other items referenced in the guide, are provided.

Exhibit 4-1 - Cited Code Sections
Code Section Chapter Topic
IRC § 11(b) Section 1374 Built-in gains
IRC § 11(b)(1)&(2) 35% corporate tax rate
IRC § 11(b)(2) Personal Service Corporation (PSC)
IRC § 39 Tax on Built-in gains—IRC 1374
IRC § 162 Customer/Medical records
IRC § 163(d) Self-charged interest
IRC § 197 Customer records
IRC § 263 & 263A Handling Changes of Accounting Methods
IRC § 269A(a)&(a)(1) Reallocation of income
IRC § 274(a)(3) Entertainment, Travel, and Meals Club memberships
IRC § 274(d) Entertainment, Travel, and Meals
IRC § 274(n) Entertainment, Travel & Meals-50% limitation
IRC § 280A(c)(1)(A) Automobile Expense
IRC § 280H IRC §444 Election
IRC § 311(b) Bargain Purchase
IRC § 441 PSC
IRC § 441(i)(1)&(2) Calendar year is required & PSC
IRC § 444 How to request a change of tax year
IRC § 444 Conversion of a PSC to an LLC
IRC § 446 Relief from the Accrual Method
IRC § 446 Purchase of Veterinary supplies
IRC § 446 Lease versus purchase
IRC § 448 Selection of proper Accounting Methods
IRC § 448(a)(2)&(3) Ownership test
IRC § 448(d)(2) QPSC
IRC § 448(d)(2)(A) Function test
IRC § 448(d)(2)(B) & (4)(C) Ownership Test
IRC § 451 & § 461 Handling Changes of Accounting Method
IRC § 461(a) & (h) Accrual Method
IRC § 469(a)(2)(C) Passive income recharacterization (Personal Service Corp)
IRC § 469(c)(2) & (4) Self-rented Equipment
IRC § 469(c)(2) & (4) Relief from the Accrual Method
Code Section Chapter Topic
IRC § 469(e)(2) Passive losses are limited
IRC § 471 Cash Method
IRC § 471 Relief from the Accrual Method
IRC § 481(a) Compare purchases with gross receipts
IRC § 531 Accumulated Earnings Tax
IRC § 535(c)(2)(B) Accumulated Earnings Tax
IRC §1366(f)(2) Whipsaw issue
IRC § 1374 Whipsaw issue
IRC § 1402(a)(1) Self-rented equipment
IRC § 7872 Potential Imputed Interest
Exhibit 4-2 - Cited Regulations
Regulation Chapter Topic
Treas. Reg. § 1.162-3 Relief from the Accrual Method
Treas. Reg. § 1.162-3 Analyze Purchases
Treas. Reg. § 1.263(a)-4 Conversion of a PSC to an LLC
Treas. Reg. § 1.301-1(j) Bargain Purchases
Treas. Reg. § 442-1(b) Obtaining Automatic Approval
Treas. Reg. § 1.446-1(c)(1)(iv) Accounting Methods
Temp. Treas. Reg. § 1.448-1T(e)(4) & (5) Qualified Personal Service Corp.
Temp. Treas. Reg. § 1.448-1T(e)(4) Function Test
Temp. Treas. Reg. § 1.448-1T(e)(5) & (5)(vi) Ownership Test
Temp. Treas. Reg. § 1.448-1T(f)(1) & (2) Method of Accounting
Treas. Reg. §1.469-2(f)(6) Inspect the Veterinarians Form 1040
Treas. Reg. §1.469-2(f)(6) Self-rented real estate & equipment
Treas. Reg. § 1.469-7(a)(1)(i) &(c) Self-charged interest
Exhibit 4-3 - Cited Revenue Rulings and Revenue Procedures
Revenue Rulings and Revenue Procedures Chapter Topic
Rev. Proc. 2001-10 Relief from the Accrual Method exception
Rev. Proc. 2002-18 Handling Changes of Accounting Methods
Rev. Proc. 2002-28 Relief from the Accrual Method exception
Rev. Proc. 2002-38 Obtaining Automatic Approval
Rev. Proc. 2002-38 IRC § 444 Election
Rev. Proc. 2003-79 Change in Tax Year
Rev. Rul. 91-30 Personal Service Corporation
Rev. Rul. 99-7 Automobile Expenses
Rev. Rul. 55-540 Lease versus purchase
Exhibit 4-4 - Cited Court Cases
Court Case Chapter Topic
INDOPCO, Inc. v. Commissioner, 503 U.S. 79 (1992) Ordinary expenses
Lockhart Leasing Co. v. U.S., 446 F.2d 269 (10th Cir. 1971) Lease versus purchases
Mid-Del Therapeutic Center, Inc. v. Commissioner, T.C. Memo. 2000-130 Analyze Purchases
Osteopathic Medical Oncology and Hematology, P.C. v. Commissioner, 113 T.C. 376 (1999) Analyze Purchases
Stevenson v. Commissioner, T.C. Memo. 1989-357 Self-Rented Equipment
Veterinary Surgical Consultants, P.C. v. Commissioner, 117 T.C. 141 (2001) S Corporation Issue-Inadequate compensation
Wilkinson-Beane, Inc. v. Commissioner, 420 F.2d 352 (1st Cir. 1970) Is Merchandise an Element in the Taxpayer’s Business and Is It Income-Producing?
Wilkinson-Beane, Inc. v. Commissioner, T.C. Memo. 1969-70 Handling Changes of Accounting Method
Exhibit 4-5 - Selected Industry Organizations and Web Sites
Industry Web Site
Agricultural Research Service www.ars.usda.gov
American Animal Hospital Association www.healthypet.com
Association for Assessment and Accreditation of Laboratory Animal Care International   (AAALAC International) 
formerly the American Association for Accreditation of Laboratory Animal Care
www.aaalac.org
American Society for the Prevention of Cruelty to Animals www.aspca.org
American Veterinary Medical Association www.avma.org
Animal and Plant Health Inspection Service www.aphis.usda.gov
Association of American Veterinary Medical Colleges www.aavmc.org
Centers for Disease Control and Prevention www.cdc.gov
Environmental Protection Agency www.epa.gov
Food and Drug Administration www.fda.gov
Food Safety and Inspection Service www.fsis.usda.gov
National Animal Health Monitoring System www.aphis.usda.gov/animal_health/nahms
National Institutes of Health www.nih.gov
National Research Council www.nas.edu/nrc
National Science Foundation www.nsf.gov
National Veterinary Services Laboratories www.aphis.usda.gov/animal_health
North American Veterinary Technician Association www.navta.net
Technology Assessment, The Congress www.wws.princeton.edu/~ota
Pan American Health Organization www.paho.org
U. S. Public Health Service www.usphs.gov/profession/veterinarian/default.aspx
Exhibit 4-6 - Other Reference Web Links
Web Links Chapter Topic
IRM 4.10.3.6 , IRM 4.10.3.8 Balance Sheet Techniques
IRM 4.10.3.10, IRM 4.10.3.11 Expense Issues
IRM 4.10.3.5.6 Techniques- Reconciling books & records to tax return
Form 3115 & Instructions Handling Changes of Accounting Methods
Form 8582 Self-Rented Real Estate
Form 8716 Making the Election
Publication 535 Customer/Medical Records
Publication 538 IRC § 444 Election

 

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