Category Archives: International Tax Advisory

The BEAT (Still) Goes On – New Final and Proposed BEAT Regulations

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Earlier this week, our International Tax Group analyzed some of the most interesting and significant provisions of the new Treasury and IRS regulations for the base erosion and anti-abuse tax. Clarifications about base erosion payments Clarifications about aggregate groups Election to waive deductions 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

Is the IRS “HODLing” Out on Us? IRS Issues Additional Cryptocurrency Guidance Addressing Hard Forks, Soft Forks, and Airdrops

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The IRS provided some much-needed guidance on protocol changes to blockchain. Our International Tax Group breaks it down.

  • What the forking wallet?
  • Two scenarios for hard forks
  • What about airdrops?

Read the full advisory here.

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

Altera Redux – The Ninth Circuit Once Again Holds in Favor of the IRS

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Last week, our International Tax Group examines the Ninth Circuit repeating itself in reversing a unanimous Tax Court holding on the validity of the Treasury's regulations under Section 482. We examine the reconstituted  panel's significant decisions, which in many ways follow the first panel's conclusions. Altera v. Commissioner, Parts 1, 2, and now, 3 What is the meaning of “commensurate with income”? What does this case say about previous standards under Chevron? 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

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