Section 385

Treasury Would Overhaul 2016 Regulatory Guidance

October 16, 2017 By Edward Tanenbaum and Heather Ripley

With tax reform on the horizon, Treasury takes aim at three sets of regulations with clear cross-border implications. Our International Tax Group explains the department’s recommendations to scrap much of Section 385 and overhaul Sections 367 and 987. Revoking the Section 385 documentation rules Expanding the active business exception to foreign goodwill under Section 367 Deferring transition rules under Section 987 to 2019 Read the full advisory here. [...]Read more

Federal Tax ADVISORY: Partial Worthlessness

August 1, 2017 By Jasper L. (Jack) Cummings, Jr.

Don’t overlook claiming a deduction for partial worthlessness. Our Federal Tax Group provides a refresher on this useful tool.

Cross-border or brother-sister debt
A hard pill to swallow
Ordinary loss

Read the full advisory here.

Federal Tax ADVISORY: Stock Acquisition Checklist

November 1, 2016 By Edward Tanenbaum

Treasury’s finalized debt/equity regulations under Section 385 run a daunting 517 pages. Our Federal Tax Group supplies a checklist for the transition period to full application of the new regulations.

Click here to read the full advisory.

International Tax Advisory: Treasury Issues Final & Temporary Section 385 Regulations

October 17, 2016 By Edward Tanenbaum and Heather Ripley

Our International Tax Group explores the final debt-equity regulations under Section 385, highlighting significant modifications to the rules proposed last April. While the regulations remain controversial, the final version brings a number of taxpayer-friendly changes, including a reduction in scope and general delay in application.

Alston & Bird’s full International Tax advisory can be found here: www.alston.com/advisories/section-385-regulations

International Tax Advisory: Tax Court Flexes Its Debt-Equity Muscle on “Unrelated” Parties

August 15, 2016 By Edward Tanenbaum and Heather Ripley

A recent Tax Court case shows the government’s willingness and ability to attack financing arrangements that do not reflect arm’s-length debt standards, even without the forthcoming Section 385 regulations. Our International Tax Group analyzes that case and reviews the IRS’s decision to stop treating some FATCA intergovernmental agreements as “in effect.”