By Marc Simonetti , Andrew Appleby and Fabio Leonardi On July 28, 2011, the New Jersey Supreme Court denied a taxpayer's claim that New Jersey's Throwout Rule (which excludes certain sales from the denominator of the sales apportionment factor...
IN THIS ISSUE: PA Budget: No State Tax Increases for
2011-12 l June Collections: +8.3% l
Tax Tips: Local Tax Exemptions for Manufacturing l Pennsylvania
Property Tax Task Forces Created l An Introduction To Sales and Use Taxation...
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"...
By Gale E. Chan , Jon Finkelstein and Patrick J. McCurry The U.S. Court of Appeals for the D.C. Circuit recently reversed two
U.S. Tax Court decisions and held that an overstatement of basis
constitutes an omission from gross income that is subject...
Distribution of Liabilities from a Grantor Trust Likely Causes the Grantor to Recognize Gain
T. Zaragoza, Esq. and Sonja
K. Johnson, Esq.
A so-called "grantor trust" is a trust that is disregarded
for income tax purposes...
By William Pauls , Robb Chase , David Cho , Amish Shah , and Dwaune Dupree On July 21, 2011, the Internal Revenue Service (IRS) and Treasury issued temporary regulations (T.D. 9538) that modify Treas. Reg. § 1.1001-4 and generally provide that an...
Laura D. Warren
On July 14, 2011 the IRS and Treasury issued Notice 2011-53, which
(i) describes a timeline for the implementation of the information
reporting and withholding requirements provided in the recently enacted
By Lisa B. Petkun
On June 8, 2011 the IRS revoked the tax-exempt status of more than
275,000 organizations. The revocations were a result of the Pension
Protection Act of 2006 (PPA), which requires the IRS to...
Lance S. Jacobs
Howard County Circuit Court Rules that Out-of-State Tax Credit Mechanism Violates the Constitution
A recent ruling by the Howard County Circuit Court, on an appeal from
the Maryland Tax Court, offers the possibility of...
Annette M. Ahlers
Under Section 382(l)(3)(A)(iv) of the Code, options are treated as
exercised for purposes of determining whether or not a loss corporation
undergoes an ownership change under Section 382, if such exercise would
By Carol Tello , Michael Miles ,
Pauls , Robb
Chase and Dwaune
Dupree On July 14, 2011, Treasury and the Internal Revenue Service (IRS) released Notice 2011-53 (the Notice), which provides transition rules for implementation of the Foreign...
By Gale E. Chan , Madeline M. Chiampou , Martha Groves Pugh and Philip Tingle The U.S. Department of Treasury issued guidance to assist taxpayers with
preparing Section 1603 grant applications by outlining the Treasury
processes used to evaluate cost...
July 11, 2011
On July 7, 2011, the IRS announced the suspension of enforcement activity focused on the gift tax implications of gifts to section 501(c)(4) organizations. The July 7 announcement comes in the wake of disclosure of five audits in progress...
By William R. Pomierski The IRS defended its decision not to designate independent system
operators as qualified board or exchange (QBE) principally on the
grounds that, as a matter of law, it is not required to designate any exchanges as QBEs under...
By Patrick D. Ryan , Karen A. Simonsen & Todd A. Solomon The Financial Crimes Enforcement Network and the
Internal Revenue Service recently issued three notices, FinCEN Notices
2011-1 and 2011-2 and IRS Notice 2011-54, granting an extension of...
By Carol P. Tello and Robert S. Chase In the past week, two extensions for filing a Report of Foreign Bank and Financial Account (FBAR) were announced by the IRS and FinCEN for certain persons that are required to file FBARs solely as a result of their...
Todd B. Reinstein
Paul D. Pellegrini
On April 20, 2011, the IRS issued proposed regulations under Treas.
Reg. §1.267(f)-1(c) (the Proposed Regulations), which will become
effective after they are adopted as final regulations...
Lance S. Jacobs
and Callie Perkins
Recently introduced legislation aims to simplify global income tax
reporting by establishing a national standard for filing and withholding
income taxes for nonresident workers. Currently 43 states...
June 14, 2011, Caplin & Drysdale
News reports suggesting that the IRS has opened federal gift tax examinations of five donors to section 501(c)(4) nonprofit organizations have generated considerable concern over the past few weeks. In a letter...
Caplin & Drysdale, Chartered - International Tax Alert
Recent Developments Relating to FBARs and Offshore Voluntary Disclosure Program
By Lucy S. Lee and Scott D. Michel
Last week was a busy week for the IRS. The IRS has made several important...
Joan C. Arnold
In our May 17, 2011 Tax Update ,
"Significant Changes to FBAR Filing for Employees of Public Companies
Applicable to 2010 Filings," we discussed the revised rules for the
filing of TD Form 90-22.1, on which a U...
By Henry Christensen III , Christiana Lazo , M. Read Moore & J. Andrew P. Stone The final FBAR regulations, effective on March 28, 2011, help to clarify
the filing obligations of limited liability companies, trust
beneficiaries and those holding...
By W. Mark Smith and Joanna G. Myers In PLR 201120011 (Feb. 11, 2011), the Internal Revenue Service (Service) ruled that nonqualified annuity payouts that automatically increase by a fixed percentage are not within the "substantially equal periodic...
By Joan C. Arnold
By June 30, 2011, every U.S. person who owns or has signatory authority over a foreign financial account must report those accounts to the IRS on form TD 90.22-1, (the FBAR form) if the value of the accounts totaled more than $10...
Laura D. Warren
The Tax Court recently published Renkemeyer , 1
a case noteworthy for its relatively usual facts and its interpretation
of what constitutes a limited partner entitled to the exception...