Category Archives: Federal Tax Advisory

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

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

Selling Contracts

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If you think about it, franchises aren’t just fast food restaurants and auto parts stores within a specified area. Our Federal Tax Group reveals how nearly any contract to buy or sell goods or services can lead to favorable capital-gains treatment. Defining “franchise” under Section 1253 Examples of franchise contracts How limiting is the “specified area” requirement? Read the full advisory here. [...]Read more

NOL Regulations Proposed

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Our Federal Tax Group covers the potential changes to recognizing built-in income in reaction to Treasury proposing new Section 382 regulations with a built-in feature that many will think is a bug. Using the Section 382 deduction limitation Using Section 338 for built-in gains Using the 1374 method for built-in losses Read the full advisory here. [...]Read more

Treasury’s Section 482 Regulation Losses

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Do what Treasury said, not what it says it meant. Earlier this month, our Federal Tax Group explains why the circuit court affirmed one Tax Court decision and reversed another in the name of consistency – and why it means regulation preambles are more important than ever. Affirming in Amazon, reversing in Altera Holding the IRS to literal terms of the regulation Similarity to the Supreme Court ruling on the census citizenship question Read the full advisory here. [...]Read more

Questioning Old Regulations

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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

Indian Tribe Taxes in the States

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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

A New Theory of Code Definitions

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“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