A Texas administrative law judge (ALJ) recently allowed a transportation company to exclude its fuel surcharge reimbursements from gross receipts when computing its Revised Texas Franchise Tax (RTFT) liability.1 Because the taxpayer properly excluded the reimbursements on its amended federal return, it was allowed to exclude the reimbursements from its gross receipts on its corresponding amended RTFT return.
Background
The taxpayer, a company that transported freight on a contract basis, charged and collected from its customers […]

Are distressed debt investors required to treat their speculative investment gains as ordinary interest income under the market discount rules, while continuing to treat their investment losses as capital losses? Or can they rely on the common law “doubtful collectibility doctrine” to stop accruing market discount as interest income, notwithstanding an IRS memorandum that seems to reject this approach? The recent economic downturn underscores the need for clear, consistent rules that do not artificially […]