Anthony J. Balden
In early April, the Internal Revenue Service released Rev. Proc. 2011-29, 1
providing a safe-harbor election for success-based fee allocations
under Section 263(a) and its Regulations. This...
By Madeline M. Chiampou and Philip Tingle The U.S. Treasury Department recently provided clarifications to the
existing guidance relating to the cash grant in lieu of the investment
tax credit for renewable energy projects.
On April 13, 2011, the...
By Stephen P. Kranz and Lisbeth A. Freeman Would Thomas Jefferson approve of Congress imposing its will on state efforts to collect income tax from out-of-state companies? That was the question posed by Rep. Steve Cohen (D-TN) to two sponsors of the Business...
By Gale E. Chan , Madeline M. Chiampou , and Philip Tingle The IRS recently issued guidance clarifying when taxpayers are eligible
for 100 percent bonus depreciation. In addition, the guidance provides
procedures for electing 100 percent bonus depreciation...
Joan C. Arnold ,
Laura D. Warren , and
Paul D. Pellegrini
By June 30, 2011, every U.S. person who owns or controls a foreign
financial account must report those accounts to the IRS on form TD
90.22-1, (the FBAR form) if the value...
By William R. Pauls , Carol P. Tello , and Robert S. Chase
On April 14, 2011, the President signed into law H.R. 4, the Comprehensive 1099 Taxpayer Protection and Repayment of Exchange Subsidy Overpayments Act of 2011 (the Act), which repeals the expanded...
By Stephen P. Kranz , Diann L. Smith , and Charles C. Kearns On April 1 (fittingly), the District of Columbia's new Mayor, Vincent G. Gray, unveiled his proposed budget, B19-0203 "Fiscal Year 2012 Budget Support Act of 2011" (Budget Bill...
By Craig L. Rascoe , J. Conrad Garcia & Matthew C. Marshall
The U.S. Court of Appeals
for the Fourth Circuit held that purported capital contributions to
Virginia historic rehabilitation tax credit syndicates organized as
By William Pauls , Carol Tello , Michael Miles , Robb Chase , and David Cho
On April 8, 2011, Treasury and the IRS released Notice 2011-34 (the Notice), which revises and supplements Notice 2010-60, the first guidance under the Foreign Account Tax...
By James G. Isaac , Karen A. Simonsen & Todd A. Solomon The Treasury Department has issued final regulations concerning the FBAR filings. Some relief is provided for employee benefit plans and plan sponsors, but a blanket exemption is not provided...
Todd B. Reinstein
A common fact pattern for many start-up companies
is to issue multiple rounds of convertible preferred stock to venture
capitalists to develop new products until a stream of revenue can be
developed. This leaves these...
Anthony J. Balden
The Tax Relief, Unemployment Insurance Reauthorization and Job Creation Act of 2010, 1 signed
into law last December, temporarily increases bonus depreciation
deductions under Section 168...
By Robin L. Greenhouse , Chad D. Nardiello & Kevin Spencer The IRS, trying to capitalize on the Textron decision, is
engrossed in litigation with Wells Fargo over tax accrual workpapers in
the U.S. District Court for the District of Minnesota...
By: Sean M. King , Matthew C. Marshall & Jeffrey D. Chadwick
The IRS announced a voluntary disclosure initiative
for taxpayers with undisclosed foreign financial accounts. It applies to
both individuals and entities who make timely, accurate...
By Jeffrey M.
Maria P. Eberle , and Michael L. Colavito, Jr. On March 10, 2011, the Executive Committee of the Multistate Tax Commission (MTC) voted to submit to public hearings the model statute that would subject to corporate income tax...
By W. Mark Smith and Daniel M. Buchner In PLR 201104061 (November 4, 2010), the Internal Revenue Service ruled favorably on the payment of certain wrap fees by IRA owners with assets held outside the IRA. Previously, the Service had ruled that:
By Nancy S. Gerrie , Jeffrey M. Holdvogt & Brian J. Tiemann Employers with Puerto Rico employees should consider significant changes
to the requirements for qualified retirement plans made by a new Puerto
Rico tax code. Immediate action may be...
By William R. Pauls , Michael R. Miles , Reginald J. Clark , and Karl Zeswitz On March 3, 2011, the Internal Revenue Service and Treasury issued final Treasury regulations that amend Treasury Regulation § 1.1502-13 with respect to the treatment of...
By Jeffrey M. Serether and Jeffrey A. Friedman On March 2, 2011, a subcommittee of the Multistate Tax Commission (MTC) considered significant changes to its model financial institution apportionment rule. Background As reported in Sutherland's SALT...
Annette M. Ahlers
The Internal Revenue Service (IRS) recently issued rulings regarding the availability of tax losses after a bankruptcy, 1 the ability to take a loss under Sections 165(a) and 165(g), 2 and the characterization of a loss after...
By Carol P. Tello The Department of Treasury's Financial Crimes Enforcement Network (FinCEN) division recently issued final rules regarding the reporting of foreign bank and financial accounts (commonly known as FBAR filings). The final FBAR regulations...
Joan C. Arnold
Under current law, payors of U.S. source interest, services fees,
royalties, and dividends are obligated to withhold 30 percent tax
(unless exempt or reduced by treaties) pursuant to Section 1441 1
and report them on...
Todd B. Reinstein
A key revenue-raiser contained in the Energy Improvement and
Extension Act of 2008, was new Section 6045B that requires cost basis
reporting in corporate transactions. 1
Section 6045B is primarily aimed at securities...
By W. Mark Smith and Daniel M. Buchner In Rev. Rul. 2011-7 , to be published on March 7, 2011, the Internal Revenue Service elaborated the circumstances in which a §403(b) plan will be treated as terminated for tax purposes. The 2007 tax regulations...
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...