The severe economic downturn is resulting in record levels of vacant retail space, and many of these vacant stores will be absorbed by other retailers. Yet regardless of the amount of anticipated renovation, electrical, heating, ventilation and air conditioning (HVAC) systems will need inspecting and possibly repair or replacement. In an article in Corporate Business Taxation Monthly, Charles Goulding, Jacob Goldman, and Taylor Goulding discuss tax savings under Code Sec. 179D resulting from retail store renovations that yield energy savings.

With federal, state and local governments facing revenue shortfalls, auditors will likely be out in force. In an article in the Journal of State Taxation, Don Fuga and Tom Concitis provide valuable insights into the audit process and suggest best practices in preparing for an audit. They also discuss the value of automating certain processes that will assist a company in both tax preparation and responding to an audit.

During previous economic downturns, certain financial institutions that had extended bridge loans reportedly experienced substantial losses related to the inability to refinance such temporary loans with more permanent sources of financing as the values of the underlying businesses declined. As credit conditions have deteriorated globally, references to the phenomenon of “hung bridges” have resurfaced. In an article in the Journal of Taxation of Financial Products, Charles Morgan describes the tax issues commonly confronted by the parties considering bridge loan financing, the underlying tax policy issues, and approaches for Treasury to consider in addressing these issues.

IRS Commissioner Douglas Shulman recently revealed that the IRS is currently focusing on multinational corporations and wealthy individuals with offshore accounts to ensure that they are not sidestepping their U.S. tax obligations. Shulman identified three areas of particular interest: (1) transfer pricing, (2) hybrid structures, and (3) withholding taxes. An article in Executive’s Tax & Management Report details how the IRS will conduct its audits by seeking information from foreign financial institutions, the use of informants, and pursuing “John Doe summonses.”