Publicly traded companies can offer their employees access to purchase employer stock on a discounted basis, using an employee stock purchase plan that complies with I.R.C. § 423 . These plans are broad-based programs that, during an “offering period”...
NIL rights refer to the ability of student-athletes to earn compensation for the use of their name, image, and likeness. This includes activities such as endorsement deals and social media promotions, allowing student-athletes to monetize their personal brand....
A listed transaction is a transaction that is the same as or substantially similar to one of the types of transactions the IRS has determined to be a tax avoidance transaction and identified as such by notice, regulation, or other form of published guidance. It...
Liquidating distributions are the distributions through which a partnership or limited liability company (LLC) terminates a partner's or a member's interest in the entity. Like current distributions, liquidating distributions are generally tax-free—in...
A “G” reorganization is a specific category of I.R.C. § 368 reorganization intended to facilitate the restructuring or rehabilitation of a distressed corporation in a Title 11 bankruptcy case. A "G" reorganization requires the transfer...
When tax-exempt or non-U.S. taxpayers invest in U.S. businesses, unwanted and unintended U.S. tax obligations can follow without careful planning. Blocker corporations have become a common strategy employed by private equity (PE) funds, particularly in buyout transactions...
Private equity transactions refer to investments (and the sale or disposition of those investments) made by pooled investment vehicles (a private equity fund, venture fund, or other group of institutional investors) in the non-publicly traded securities issued...
With more than $4 trillion of tax increases scheduled to take effect at the end of 2025, given the sunsetting provisions of the Tax Cuts and Jobs Act (TCJA), 2025 will be the most consequential year for tax legislation since the 2017 enactment of the TCJA. Whatever...
IRS issued a reminder that employers who offer educational assistance programs can also use them to help pay for their employees’ student loan obligations through Dec. 31, 2025. These programs rely on I.R.C. Section 127 which permits up to $5,250 of qualifying...
For U.S. tax purposes, a company must comply with certain tax and transfer pricing considerations when structuring intercompany debt transactions. Considerations include application of the arm's length standards of Treas. Reg. § 1.482-2(a) , documentation...
For U.S. tax purposes, digital assets are considered property, not currency. A digital asset is stored electronically and can be bought, sold, owned, transferred, or traded. The tax definition of a digital asset is any digital representation of value recorded on...
Generally, the way an annuity is treated depends on the type of annuity and its inherent features and benefits. This practice note addresses the specifics of the treatment for fixed, variable, immediate, deferred, and hybrid annuities. Review how income taxation...
Flexible spending arrangements (aka flexible spending accounts or FSAs) operate under cafeteria plans that are established under IRC § 125 . A health FSA is the most popular FSA, allowing funds contributed by the employee and/or employer (often as flex credits...
A common way for states and localities to supply needed capital facilities, such as buildings, roads, and libraries, is to finance them. Instead of competing with nongovernmental borrowers, most choose to use a special governmental advantage, issuing bonds whose...
In Loper Bright and Relentless , the Supreme Court expressly overruled Chevron U.S.A. v. National Resources Defense Council, Inc. , which had required federal courts to defer to reasonable regulatory interpretations of ambiguous statutory provisions. Now, when...