Federal Tax ADVISORY: The Attractive C Corporation

Written by and

The Federal Tax Group explores factors in the revived interest in the C corporation, including the potential reduction in the corporate tax rate, reduced pressure to distribute earnings and cash flow savings.

This advisory is provided on the Alston & Bird website: http://www.alston.com/advisories/fed-tax-sept-2014/

Federal Tax ADVISORY: Two Supreme Court Tax Decisions

Written by

During the current term, the Supreme Court of the United States decided very few taxes cases. Two of those—United States v. Clarke and Ford Motor Co. v. United States—seem quite limited in scope, until you delve under the surface.ine

This advisory is provided on the Alston & Bird website: www.alston.com/advisories/Fed-Tax-august-2014/


State & Local Tax ADVISORY: Alston & Bird SALT Team Secures a Proportional Exemption for an Atlanta Charity

Written by
In an important decision with the potential to have long-lasting effects on Georgia property tax law, the Alston & Bird State & Local Tax (SALT) Team recently secured summary judgment for the Piedmont Park Conservancy (“the Conservancy”) in Fulton County Superior Court on the Conservancy’s claim that its charitable property is entitled to a “proportional” exemption from ad valorem tax. This advisory is provided on the Alston & Bird website: www.alston.com/advisories/SALT-piedmont-park-conservancy/ Read more [...]

International Tax ADVISORY: House and Senate Bills Aim to Tighten Anti-Inversion Rules

Written by and
Following the administration budget’s proposal for stricter anti-inversion legislation, Congressmen Chris Van Hollen and Sander Levin have introduced the Stop Corporate Expatriation and Invest in America’s Infrastructure Act (H.R. 4679) to stiffen the provisions of Section 7874. (Senator Carl Levin introduced a similar proposal, S. 2360, in the Senate.) The proposed legislation epitomizes the government’s anti-inversion frenzy, as more U.S. companies look for greener tax pastures overseas. This advisory is provided on the Alston & Bird website: www.alston.com/advisories/int-tax-july-2014/ Read more [...]

Federal Tax ADVISORY: Hook Stock Split Down

Written by and
LTR 201404002 Rev. Proc. 2014-3 provides that the IRS won’t issue rulings on “the treatment or effects of hook equity, including as a result of its issuance, ownership, or redemption.” It defines hook equity as “an ownership interest in a business entity (such as stock in a corporation) that is held by another business entity in which at least 50 percent of the interests (by vote or value) in such latter entity are held directly or indirectly by the former entity.” But a recent ruling involved hook stock and predated the no-rule. LTR 201404002 involved a surprising but somewhat common Read more [...]

International Tax ADVISORY: Taxpayer Settles for Less than 150 Percent FBAR Penalty after Jury Found Willful Failure to File

Written by and

This advisory discusses United States v. Zwerner, which raised important questions not only about the FBAR penalties at issue, including their constitutionality, but also about the IRS’ administration of the Offshore Voluntary Disclosure Program.

The advisory is provided in PDF on the Alston & Bird website: http://www.alston.com/advisories/june-intl-tax/

Federal Tax ADVISORY: Last Granite Trust Ruling LTR 201419011

Written by
This advisory discusses GraniteTrust Co. v. U.S., which ruled that a parent’s sale of more than 20 percent of the stock of a subsidiary to an unrelated person was a proper set up for a taxable liquidation of the subsidiary, and how even though the IRS announced it would no longer rule on Granite Trust -type liquidations, there are still several rulings in the pipeline—most recently, LTR 201419011. The advisory is provided on the Alston & Bird website: www.alston.com/advisories/fed-tax-june-2014 Read more [...]

REIT Real Property Regulation Proposed

Written by
Prop. Reg. section 1.856-10 will define real property that will satisfy the income and asset requirements for REITs. It will replace Reg. section 1.856-3(d). It claims to be a clarification of existing law and not a modification that would cause significant reclassifications for existing REITs, and that seems to be true. It embodies the positions stated in the much briefer current regulation, plus several revenue rulings and letter rulings issued over the years. The regulation aims to rationalize the process of identifying real property so that REITs can decide for themselves whether they own Read more [...]

Tax ADVISORY: Notice Announces FATCA Enforcement Relief for 2014 and 2015 and Regulatory Amendments to Ease Implementation

Written by
This advisory discusses the IRS’ release of Notice 2014-33, setting out additional guidance on the implementation of the Foreign Account Tax Compliance Act. The notice also announces several amendments to the FATCA regulations, which are intended to facilitate compliance. Additionally, the advisory explains the IRS’ announcement of modifications and clarifications to be made to the “Killer B” regulations under Section 367(b), which reflects the IRS’ belief that taxpayers have been misinterpreting, if not exploiting, the Killer B regulations in ways that are inconsistent with their policy. The Read more [...]