Learn the core principles of CODI, its tax implications, and unique considerations for corporations, partnerships, and S corporations in distress.
Understanding the tax implications of financial distress is a critical yet complex aspect of advising corporations, partnerships, and S corporations. This live webinar offers a high-level overview of this challenging area, focusing on key topics like debt forgiveness, bankruptcy and insolvency exclusions, and the impact of tax attribute reduction.
While this session won’t delve into every technical detail, it will provide a clear summary of the foundational principles, equipping attendees with the knowledge to navigate these issues more confidently. Ideal for legal, tax, and financial professionals, this webinar provides a unique opportunity to gain practical insights, ask questions in real time, and walk away with a solid starting point for addressing these intricate tax challenges.
Learning Objectives
- You will be able to discuss the tax challenges for financially distressed entities.
- You will be able to define CODI and its general tax implications.
- You will be able to explain unique considerations for partnerships.
- You will be able to identify key tax issues for S Corporations.
Agenda
Introduction and Overview
Cancellation of Debt Income (CODI): Core Principles
- What Is CODI?
- Considerations
- Exclusions Under IRC §108
- Impact on Tax Attributes
Corporations in Financial Distress
- CODI Treatment for Corporations
- Tax Implications of Asset Sales
- Liquidation Considerations
- Section 382 Limitations
Partnerships: Unique Considerations
- Pass-Through Nature of CODI
- Debt and Basis Adjustments
- Loss Allocations
S Corporations: Key Tax Issues
- Pass-Through CODI Treatment
- Debt Basis and Forgiveness
- Distributions During Liquidation
Shared Considerations Across Entity Types
- Tax Attribute Reductions
- Tax Planning Strategies
- Compliance Obligations
Practical Applications and Real-World Examples
Closing Remarks and Resources
Speakers
Steven A. Leahy,
Law Office of Steven A. Leahy, PC- Tax Attorney and the host of the popular radio show, The IRS Radio Hour, heard in the Chicago area each Sunday evening at 5:00 pm on AM 560 The Answer
- Hosts a daily podcast, Monday – Thursday, Today’s Tax Talk, and is a frequent guest on Chicago area radio and television shows including WGN Radio, WLS Radio, WLS Channel 7, and WFLD Channel 32
- Author of the book “Deal With Your IRS Problems Today”
- Helps business professionals overcome their tax problems FOREVER
- Founder of Opem Tax Advocates; fully licensed to practice law in the United States Supreme Court, United States Tax Court, State of Illinois, State of Tennessee, Northern District of Illinois, Central District of Illinois, and Middle District of Tennessee
- Has extensive knowledge and experience in the laws of IRS Collections, United States Bankruptcy Code, and Illinois Foreclosure Law
- Has conducted continuing legal education classes on IRS collections and bankruptcy laws to attorneys throughout the United States
- Graduate, cum laude, John Marshall Law School; LL.M. degree, with honors, John Marshall Law School; graduated with a degree in business administration, finance, Loyola University in Chicago
Who Should Attend
This live webinar is designed for accountants, tax managers, CFOs, controllers, business managers and owners, presidents, vice presidents, CEOs, financial analysts, risk managers, operations managers, bookkeepers, auditors, consultants, and attorneys.
