What’s Your Source? Proposed Regulations on Sourcing Inventory Sales

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Is your inventory sales income U.S. or foreign source? Well, it depends. In case you missed it, our International Tax Group explores the various sourcing rules the IRS has proposed to sort out possible inconsistencies and overlaps caused by the Tax Cuts and Jobs Act. Place of production now determines source for sales of produced inventory Coordinating Section 863(b) and Section 865 for sales through an office The overlap of Section 865(e)(2) and Section 864(c)(4)(B)(iii) for certain “nonresidents” Read the full advisory here. [...]Read more

Downward Stock Attribution for CFC Purposes

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Missing piece to CARES? Our Federal Tax Group excavates this missing piece and investigates how it would have restored what was repealed by the Tax Cuts and Jobs Act. Restoration of Section 958(b)(4) New Section 951B A newly minted controlled foreign corporation (CFC) regime Ready full advisory here. [...]Read more

Alston & Bird Forms COVID-19 Coronavirus Task Force

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In case you missed it, Alston & Bird has formed a working group to advise clients on the business and legal implications of the COVID-19 coronavirus. Spanning several Alston & Bird practices – including health care, corporate governance, capital markets and securities, labor and employment, litigation, tax, and environmental – the Coronavirus Task Force can give insight and guidance to clients facing immediate questions and challenges about planning for or responding to the threat posed by the virus. You can view out insights and events here, including the chance to register for [...]Read more

Political Action Committees

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As election year gets into full swing, we are reminded that it isn’t just the Federal Election Commission political action committees (PACs) need to worry about. Our Federal Tax Group examines the tax pitfalls for tax-exempt organizations and one worrisome IRS ruling in particular. The layers of PAC regulation The most important tax variable A surprising IRS ruling against a hospital charity Click here to read the full advisory. [...]Read more

From Obscurity to Spotlight: The Section 962 Election

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In case you missed it's release right before the President's Day holiday weekend, our International Tax Group addressed an election under Section 962 available to individual U.S. shareholders of certain foreign corporations to be taxed as a C corporation, which before tax reform was a rarely utilized and often forgotten tool that has recently been thrust into the spotlight due to its potential benefits. The rise in popularity of the Section 962 election Smith v. Commissioner, an unfavorable ruling for U.S. shareholders receiving distributions of foreign earnings subject to a Section 962 [...]Read more

Taxpayer Win on Retroactivity: An Important Step for New York Tax Law

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Earlier this week, our State & Local Tax Team examined the New York Appellate Division’s rejection of the state’s attempt to retroactively unwind already-claimed taxed credits after a New York court invalidates the state’s retroactive application of tax legislation as violating the Due Process Clause. Applying New York’s three-factor standard to determine whether a retroactive tax law is constitutional Comparing a taxpayer-friendly outcome to a taxpayer defeat It all comes down to how and why Read the full advisory here. [...]Read more

Bonus Depreciation

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Our Federal Tax Group points out that for every upside, there’s a downside, even for bonus depreciation. We consider unexpected avenues to explore under proposed regulations. Investment bankers aren’t impressed The bird-in-the-hand benefit The proposed regulation’s main topic of interest Read the full advisory here. [...]Read more

The BEAT (Still) Goes On – New Final and Proposed BEAT Regulations

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Earlier this week, our International Tax Group analyzed some of the most interesting and significant provisions of the new Treasury and IRS regulations for the base erosion and anti-abuse tax. Clarifications about base erosion payments Clarifications about aggregate groups Election to waive deductions Read the full advisory here. [...]Read more

Foreign Books and Records

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Our Federal Tax Group explores how a foreign person’s books can become relevant for U.S. tax purposes even when it has no contact with the U.S. tax system. For example, a Section 351 exchange When the basis in U.S. stock isn’t irrelevant Preparing for the day of relevance Read the full advisory here. [...]Read more

Federal Tax Update to IRAs Will (Further) Impact State Escheat Requirements

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Last week, our Unclaimed Property Group examined the recently enacted SECURE Act and the significant changes the new law makes to the treatment of IRAs for state escheatment purposes. Lengthens required minimum distribution age from 70.5 to 72 Repeals maximum age for traditional IRA contributions Latest federal tax development to impact the unclaimed property treatment of IRAs Read the full advisory here. [...]Read more