Also significant was the court's ruling that nonclient third-party investors who relied on the independent accountant's report were not precluded from
bringing art action against the firm.
The EITF reached a consensus that a manufacturer would not be precluded from
recognizing a sale at the time the product is transferred to the dealer if all of the following conditions exist:
1092(a)(1), a taxpayer with "offsetting positions" in "personal property" (i.e., a straddle) is precluded from
recognizing, within a tax year, any loss realized on one "leg" of a transaction, unless that loss exceeds the unrecognized gain in the opposing position in the same tax year.
In cases involving purely economic harm, as in this case, comparative fault principles were held not to apply, and the defendant accounting firm was precluded from
presenting evidence of the client's fault.
In the past, taxpayers may have been precluded from making an automatic change; the old procedure contained a restriction that an automatic change could not be made if the company had requested to change or had changed from the LIFO inventory method within the past six tax years.
In addition, the taxpayer may want assurance that it will not be precluded from making the intended automatic change for any reason, such as being contacted for examination by the IRS before it files the application.
97-24 provides that an employer is not precluded from
offering to employees (other than 5% owners), who attain age 70k after 1995 and have not retired, an option to defer commencement of benefit distributions under a qualified plan merely because the plan has not yet been amended to provide for this option.
However, because of limitations in the law firm's professional liability insurance policy, an attorney serving as a director of one of the firm's clients was precluded from
providing legal advice to such client.