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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

Introduction
Exhibit 4-1 - Cited Code Sections
Exhibit 4-2 - Cited Regulations
Exhibit 4-3 - Cited Revenue Rulings and Revenue Procedures
Exhibit 4-4 - Cited Court Cases
Exhibit 4-5 - Selected Industry Organizations and Web Sites
Exhibit 4-6 - Other Cited Web Sites

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.

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**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

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**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

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**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

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**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 (10^th 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 (1^st 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

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**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

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**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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Page Last Reviewed or Updated: 2012-12-13