Author Archives: Edward Tanenbaum

Edward Tanenbaum
Edward Tanenbaum is co-chair of the firm’s Federal & International Tax Group and a member of the firm’s Global Resources & Strategies Committee. Mr. Tanenbaum’s practice consists primarily of planning and structuring tax efficient solutions for cross-border business transactions and investments by foreign multinational corporations and high-net-worth individuals.  Read More →

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

Federal Circuit Court of Appeals Weighs In on Willful FBAR Penalties

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Recently, a federal appellate court ruled in the ongoing battle between the IRS and taxpayers over the maximum penalty for willfully failing to file an FBAR to report offshore accounts as required under the Bank Secrecy Act. Our International Tax Group discusses: Federal Circuit rules in favor of the IRS, upholding higher statutory ceiling Lower courts have split on the issue What’s next? Read the full advisory here. [...]Read more

Down the Rabbit Hole: Guidance Addressing Downward Attribution After Repeal of Section 958(b)(4)

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The IRS released Proposed Regulations and a Revenue Procedure addressing the Tax Cuts and Jobs Act’s repeal of Section 958(b)(4). Our International Tax Group explores how this guidance affects numerous provisions of the Code. Downward attribution beyond Subpart F, GILTI, and Section 965 Silence on the portfolio interest exemption Safe harbors and eased reporting requirements Read the full advisory here. [...]Read more

Proposed Regulations Classifying Cloud Transactions and Digital Content Released

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As the computer transactions of the 21st century continue to evolve, our International Tax Group downloads Treasury and the IRS’s attempt at updating the tax implications to keep up. Refreshing the 1998 regulations Classifying cloud transactions Key concerns and looking ahead Read the full advisory here. [...]Read more

Old Law, New Tricks: Long-Awaited PFIC Guidance Proposed

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Our International Tax Group highlights new guidance on fundamental issues and points out a few sources of potential headache for taxpayers in response to the IRS and Treasury proposing the most significant regulations on passive foreign investment companies (PFICs) in nearly 30 years. Clarifications for the Income and Asset Tests Updates to the PFIC exceptions and look-through rules PFIC stock attribution Read the full advisory here. [...]Read more

Hold Up, Partner: Proposed Regulations Address Withholding on Foreign Partner Dispositions

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Newly proposed regulations expand withholding on foreign partners transferring interests in partnerships who do business in the United States. Our International Tax Group evaluates the tightening reins on exceptions. Notice 2018-29 and other prior Section 1446(f) guidance Modified withholding exceptions in the new regulations Activation of previously suspended PTP and secondary withholding Read the full advisory here. [...]Read more

Partnership Abuse of Entity Rule Invoked in Section 367(d) Outbound IP Transaction

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Our International Tax Group explores a recent, heavily redacted Chief Counsel Advice applying the partnership abuse of entity rule to a Section 367(d) outbound IP transaction. Outbound IP transfers and Section 367(d) The partnership abuse of entity rule Interaction between the partnership abuse of entity rule and Section 367(d) successor rules Read the full advisory here. [...]Read more

International Tax Regulations: The Road Ahead – Key Practitioner Concerns and Government Responses

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Our International Tax Group reflects on a few concerns that have cropped up in the wake of the Tax Cuts and Jobs Act and deciphers the government’s responses. Foreign-derived intangible income (FDII) Global intangible low-taxed income (GILTI) Base erosion and anti-abuse tax (BEAT) Read the full advisory here. [...]Read more

FDII or Not: Section 250 FDII and GILTI Deduction Regulations Proposed

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The IRS and Treasury’s proposed regulations on the Section 250 deduction for foreign-derived intangible income (FDII) and global intangible low-taxed income (GILTI) tackle several questions left unanswered by the 2017 tax law. Our International Tax Group highlights key takeaways from the complex, near-algebraic, proposed rules. Section 250 alphabet soup: FDII, GILTI, QBAI, DEI, FDDEI GILTI deduction allowed for Section 962 election taxpayers A few questionable answers for FDII issues Read the full advisory here.   [...]Read more

Finally! Final Regulations Published for Section 965 Transition Tax

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At long last, we have the first set of final regulations for the Tax Cuts and Jobs Act. Our International Tax Group celebrates with a look at how the Treasury and IRS have clarified Section 965 and why taxpayers may need to act quickly. The de minimis threshold Exceptions to the anti-abuse rules Transfer agreements and the basis adjustment election Read the full advisory here. [...]Read more