In response to the Third Circuit's SIH Partners v. Commissioner ruling, our Federal Tax Group reflects on the decision and suggests taking a second look at old Treasury regulations that might not survive judicial scrutiny. The court worked hard to save Section 956 How much deference will a court give Treasury? For example: Section 951 Read the full advisory here. [...]Read more
In response to a Supreme Court decision on state taxation of an Indian tribe, our Federal Tax Group parses the meaning of what is actually being taxed and the broader implications for taxpayers. The Treaty of 1855 Two points of broader significance Identifying the right arguments Click here to read the full advisory. [...]Read more
“Manifestly incompatible?” A new IRS Chief Counsel Advice features a disturbing interpretation of Section 7701’s definitions. Our Federal Tax Group parses out what taxpayers should beware of—or what could possibly be used to their benefit. Applying the abuse of entity regulation Discriminating against taxpayers singled out Statutory construction that doesn’t otherwise provide Read the full advisory here. [...]Read more
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
What guidance has the “force and effect of law”? Our Federal Tax Group dives into an appeal of a court case involving Notice 2016-66, the Anti-Injunction Act, and a new Treasury policy statement that could upset the department’s applecart. A new transaction of interest: micro-captive transactions Policy Statement on the Tax Regulatory Process Eviscerating the premise of an argument Read the full advisory here. [...]Read more
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
Our Federal Tax Group considers ways to pass the inscrutable device prohibition in the Section 355 rules.
- An “out” from device
- How about a Morris Trust transaction?
- Where does the cash come in?
Read the full advisory here.
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
Our Federal Tax Group examines the signature difference brought about by tax reform’s opportunity zone regime. Comparison to empowerment zones and enterprise communities How the new regime is being used. How seriously will the rules be enforced? Read the full advisory here. Join us for our Weekly Client Update where our attorneys will walk through key elements of the new IRS regulation packages addressing corporate and international issues and state tax matters. Click here to learn more and register. We will be covering opportunity zones on February 5. [...]Read more