LexisNexis® Legal Newsroom
Robert Jennings and Elizabeth Taishoff Sweigart of Verse Consulting, LLC, on economic substance, transactional planning, documentation, tax benefits and best practices to optimize tax benefits

On this edition, Robert Jennings and Elizabeth Taishoff Sweigart discuss the Economic Substance Doctrine and corporate tax positions related to affiliate transactions. They examine these principles in the context of Schering-Plough v. U.S., and analyze essential elements of economic substance and non...

Economic Substance and the Foreign Tax Credit Generator Regs

In July 2008, Treasury issued Temp. Reg. Section 1.901-2T(e)(5)(iii) designed to shut down what has become known as the "foreign tax credit generator" transaction. In March 2010, Congress finally granted Treasury its wish and codified the "economic substance" doctrine. ... ...

Rufus Rhoades on the foreign tax credit generator, offsetting temporary regulations issued by the Department of Treasury, and the codification of the "economic substance doctrine"

On this edition, Rufus Rhoades, co-author of Rhoades & Langer, U.S. International Taxation and Tax Treaties, published by LexisNexis Matthew Bender, outlines the purpose and practical impact of the foreign tax credit generator and codification of the "economic substance doctrine." Examining...

Rufus Rhoades on the foreign tax credit generator, offsetting temporary regulations issued by the Department of Treasury, and the codification of the "economic substance doctrine"

On this edition, Rufus Rhoades, co-author of Rhoades & Langer, U.S. International Taxation and Tax Treaties, published by LexisNexis Matthew Bender, outlines the purpose and practical impact of the foreign tax credit generator and codification of the "economic substance doctrine." Examining...

Codification of Economic Substance and the New Strict Liability Penalty

The recently passed 2010 Revenue Reconciliation Act contains new tax law provisions that "codify" the economic substance doctrine and impose new penalties on transactions without economic substance. Importantly, the new penalty has no reasonable cause exception. The penalty is 20 percent...

Robert Jennings and Elizabeth Sweigart of Verse Consulting, LLC, on the Recent Codification of the Economic Substance Doctrine

On this edition, Robert Jennings and Elizabeth Sweigart discuss codification of the economic substance doctrine included in the Health Care and Education Reconciliation Act of 2010. Mr. Jennings and Ms. Sweigart analyze objective signposts introduced by the legislation to qualify transactional economic...

Economic Substance Codification and Multinational Cross-Border Transactions

U.S. multinationals need to focus on the codification of the Economic Substance Doctrine in the recently enacted Health Care and Education Reconciliation Act of 2010, P.L. 111-152 (H.R. 4872) ... U.S. multinationals with contemplated or pending transactions [need] to act quickly to put in place a practical...

Review of Changes in Securities Transactions Taxation

Recent efforts to stimulate the bond market and the overall economy have changed rules affecting cancellation of indebtedness, high yield obligations, and qualified small business stock. This comprehensive article provides a review of changes in securities transactions taxation that have resulted largely...

Review of Changes in Securities Transactions Taxation

Recent efforts to stimulate the bond market and the overall economy have changed rules affecting cancellation of indebtedness, high yield obligations, and qualified small business stock. This comprehensive article provides a review of changes in securities transactions taxation that have resulted largely...

Morrison & Foerster LLP on the Health Reform Law, the Economic Substance Doctrine and Estate Planning

The Health Reform Act of 2010 enacted IRC § 7701(o), entitled "Clarification of economic substance doctrine." This doctrine can be seen in the estate planning field, being a part of various types of transactions. Examples include: when business entities are created and valuation discounts...

Caplin & Drysdale: LB&I Commissioner Provides Guidance to Examiners and Managers on the Codified Economic Substance Doctrine and Related Penalties

By Mark D. Allison , Christopher S. Rizek and Charles M. Ruchelman Waiting for Guidance As most tax practitioners are aware, the Health Care and Education Reconciliation Act of 2010 added new section 7701(o) of the Internal Revenue Code (the "Code"). This provision codified the judicial doctrine...

Tax Considerations for Taxpayers Applying the Economic Substance Doctrine

The Background In 2010, Congress codified the economic substance doctrine, but left numerous unanswered questions for taxpayers on how to apply the doctrine. Along with codifying the economic substance doctrine, Congress also enacted strict liability penalties [ IRC § 6662(b)(6) (20 percent strict...

Economic Substance Uncertainty in Civil Cases

In past entries on this blog, I have expressed concern about deploying the economic substance doctrine in criminal cases. Here is yet another reason for concern. In American International Group v. United States (SDNY 1:09-cv-01871), in a civil tax case, the IRS has raised economic substance to defeat...