Author Archives: Stefanie Kavanagh

Stefanie Kavanagh
Stefanie Kavanagh is an associate in the Federal & International Tax Group. She focuses her practice on tax planning and structuring for domestic and international business entities as well as matters relating to real estate investment trusts.  Read More →

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

▪ Written by , and
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

Finally! Final Regulations Published for Section 965 Transition Tax

▪ Written by , and
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

Back to School: FBAR Penalties and a Lesson in Statutory Construction

▪ Written by and
There is a disconnect between the statute and the regulation that impose penalties for violating FBAR filing requirements. Our International Tax Group covers the bases of the three court cases that have the IRS batting just 1 for 3. The 2004 statute can impose a penalty greater than $100,000 The regulation, which wasn’t updated, limits penalties to $100,000 Two courts favor the regulation; one the statute Read the full advisory here.   [...]Read more

Omnibus Spending Bill Makes Long-Awaited Technical Corrections to Several PATH Act Provisions

▪ Written by and
While the omnibus spending bill didn’t do much to clarify the Tax Cuts and Jobs Act, it did make some corrections to other tax laws. Our International Tax Group discusses some of those corrections for qualified foreign pension funds and the Foreign Investment in Real Property Tax Act of 1980 (FIRPTA). Requirements for qualified foreign pension funds Changes for problematic requirements Corrections to the PATH Act Read the full advisory here.  [...]Read more

Inexplicably, Section 956 Survives Tax Reform Intact

▪ Written by , and
How did a section of the Internal Revenue Code destined for repeal by both the House and Senate versions of the Tax Cuts and Jobs Act survive the final Act? Our International Tax Group examines the future application of Section 956 in the wake of the new tax regime. Section 956’s 50-plus-year history The House and Senate versions Scope of application Read the full advisory here. [...]Read more

International Tax ADVISORY: Big Tax Court Win for Eaton in Canceled APA Case

▪ Written by and
The IRS abused its discretion when it canceled two advance pricing agreements. Our International Tax Group covers Eaton’s victory in the Tax Court and how it allays concerns about how worthwhile an APA can be. Public and judicial scrutiny Standard of review Where do we go from here? Read the full advisory here. [...]Read more

Federal & International Tax ADVISORY: Big Tax Court Win for Foreign Investors in U.S. Partnerships

▪ Written by , , and
Our Federal & International Tax Group examines the long-awaited decision in Grecian Magnesite Mining, Industrial & Shipping Co., SA v. Commissioner. While a win for foreign investors in U.S. partnerships, it may not be the final word. Repudiates decades-long position of IRS May have a real impact on U.S. foreign investment May not be the last word on the subject Read the full advisory here. [...]Read more

International Tax ADVISORY: Impact of the Multilateral Instrument of U.S. Taxpayers

▪ Written by and
Nearly 70 countries have signed the OECD’s multilateral instrument – but the U.S. isn’t one of them. Our International Tax Group takes stock of how the MLI will prevent base erosion and profit shifting (BEPS) and what it all means for U.S. companies. What is the multilateral instrument? Why didn’t the U.S. sign it? How will it impact U.S. multinationals? Read the complete advisory here. [...]Read more

International Tax ADVISORY: Tax Court Déjà Vu – IRS Tried, and Failed, to Overturn Veritas

▪ Written by and
Unsurprisingly, the IRS got the same result by trying the same thing. Our International Tax Group analyzes the agency's latest effort to use a discounted cash flow analysis to audit a cost-sharing agreement. The difference between #255 million and $3.6 billion Using the comparable uncontrolled transaction method Applying the 2011 cost-sharing regulations Read the full advisory by clicking here. [...]Read more

Killing the Killer B: The Treasury and IRS Issue a Sixth Set of Rules on Killer B Transactions

▪ Written by and

The Treasury looks to slay Killer B transactions with its newest rules. Our International Tax Group follows the trail of glitches in the regulation.

Read the full advisory here.