The Trump bill eliminated the loss carryback rules, it did not eliminate the rules under the Mitigation Section.
Taxpayers who are forced to repay false profits may still reduce the income falsely reported in the prior years, if that provides a larger tax refund than the refund that would be available if the "clawed back" funds were only allowed to be deducted in the year of payment.This tax benefit cannot be overlooked.
Starting in 2018, it is critical to compare the amount of refunds on a Clawback of profits with the value of deducting the Clawback amount in the year it is paid back.
Richard S. Lehman, Esq.
Located in the Dorot & Bensimon P.L. Domestic & International Tax Law Office
2000 Glades Road, Suite 312
Boca Raton, FL. 33431
Phone: 561-368-1113
Skype: LehmanTaxLaw
Posts
