2009 began with the worst two-month start in S&P 500 history, but by the end of the year a rally led largely by high-beta, low-quality stocks, helped the S&P 500 recover about half of its total bear market loss. While this run up was certainly encouraging, the S&P 500 is still over 28% shy of… more
With the economy in one of the worst downturns in history, state governments have begun to face the stark realities of the recession. Most states have seen unprecedented unemployment and unemployment claims draining the system. While the funding for these claims is supplemented by the federal government, the states have seen total revenues drop to an… more
It is no surprise that the economic recession has resulted in serious revenue shortfalls and driven state legislatures to consider tax increases to support their budgets. In order to close their budget deficits, many states opted to either pass new legislation that modifies existing tax law or implement new tax measures. For example, many of… more
The estate and gift tax law is generally a complex labyrinth, and with the arrival of the new year there is an added degree of uncertainty that makes it even more perplexing. Under the Economic Growth and Tax Relief Reconciliation Act of 2001 (EGTRRA), the federal estate and generation skipping transfer taxes were repealed for one… more
A company’s treatment of bonus accruals may create IRS audit exposure for accrual method taxpayers. Under IRC Sec. 446, bonuses must meet an “all events test” to be accrued at year-end. The all events test requires that the bonus obligation be a fixed legal obligation at year end and the amount of that bonus obligation be… more
