Our Federal Tax Group explores how Treasury’s proposed regulations could have the global intangible low-taxed income (GILTI) regime operating in a way you might not expect.
Category Archives: Federal Tax Advisory
Antique Weapons
▪ Written by Jasper L. (Jack) Cummings, Jr.
Some antique weapons are still dangerous; Section 269 could be one of them. Our Federal Tax Group explains why taxpayers facing Section 269 on audit should treat it seriously and what it reveals about the IRS’s hand.
The three-part test
Old, convoluted court opinions
Is it as useful as the economic substance doctrine?
Read the full advisory here. [...]Read more
Cash Deals Abound
▪ Written by Jasper L. (Jack) Cummings, Jr.
Cash is king in this year’s M&A deals. Our Federal Tax Group investigates the tax implications behind these all-cash deals and what dangers may lie ahead.
Few stocks are held by taxable persons
First-step mergers
A tax reform revenue raiser that hasn’t raised revenue
Read the full advisory here. [...]Read more
Certain Banks Qualify for the 20% Pass-Through Deduction
▪ Written by Alston & Bird Federal & International Tax GroupOur Federal Tax Group highlights Section 199A and the IRS’s new proposed regulations that allow pass-through businesses to deduct up to 20% of their qualified business income.
- Certain banks qualify for the deduction
- LLCs, partnerships, and S corporations can benefit
- Only productive businesses can take advantage
- Anti-abuse rules are built in
Read full advisory here.
The Interest Deduction Limitation
▪ Written by Jasper L. (Jack) Cummings, Jr.
Our Federal Tax Group explains why Section 163(j)’s small business exception is useful, but may not be quite the exemption taxpayers think it should be.
“Small business” is a difficult definition
Thwarted by the aggregation rule
Can you apply the real estate exemption?
Read the full advisory here. [...]Read more
Guarantees, Debts, and Equity
▪ Written by Jasper L. (Jack) Cummings, Jr.Our Federal Tax Group reviews the potential pitfalls of seeking deductions for parent guarantees revealed by a recent district court decision.
- The district court’s finding
- The parent bails out its subsidiary
- Lessons learned
Read the full advisory here.
Section 338 and the Tax Act
▪ Written by Trey FlytheOur Federal Tax Group reviews the basic rules of Section 338 sales under the Tax Cuts and Jobs Act.
- Domestic sales
- Stock sales
- Foreign sales
Read the full advisory here.
Regulation Confusion
▪ Written by Jasper L. (Jack) Cummings, Jr.
The Office of Management and Budget may throw a wrench into how IRS and Treasury regulations are treated. Our Federal Tax Group outlines why slowing down the regulation process may be the least of taxpayers’ worries.
Will the OMB discard traditional distinctions?
Legislative vs. interpretive regulations
What does it mean for tax reform?
Read the full advisory here. [...]Read more
Foreign-Derived Intangible Income
▪ Written by Jasper L. (Jack) Cummings, Jr.
It’s probably the next-best part of the Tax Cuts and Jobs Act for multinationals. Our Federal Tax Group investigates the foreign-derived intangible income regime and how you can use it.
What is an export?
Getting the CFC involved
Selling a service
Read the full advisory here. [...]Read more
Foreign Tax Credits’ Demise
▪ Written by Jasper L. (Jack) Cummings, Jr.Our Federal Tax Group delves into whether foreign withholding taxes are creditable under the Tax Cuts and Jobs Act.
- Now? Or never?
- One example
- Stacking the deck
Read the full advisory here.