Tax News
Bringing you the latest tax and accounting updatesIRS – Tax Tips
- Summary of the Biden Administration’s Fiscal Year 2025 Green Book Tax Proposalsby Jean Bertrand, Martin T. Hamilton, Colleen Hart, David S. Miller, Amanda H. Nussbaum, Stuart Rosow, Seth Safra, Rita N. Halabi, Alexis Rosett, Seo Kyung (Rosa) Kim and Maggie Livingstone on March 27, 2024 at 3:56 pm
On March 11, 2024, the Biden Administration released the Fiscal Year 2025 Budget, and the “General Explanations of the Administration’s Fiscal Year 2025 Revenue Proposals,” which is commonly referred to as the “Green Book.” The Green Book summarizes the Administration’s tax proposals contained in the Budget. The Green Book is not proposed legislation, and each of...
- Change to non-domicile tax regime forms part of UK Spring Budget 2024by Emma C. McDonnell, Robert E. Gaut, Catherine Sear and Stephen Pevsner on March 8, 2024 at 10:21 am
As part of the UK’s Spring Budget 2024, the Chancellor of the Exchequer, Jeremy Hunt, has announced the abolition of the remittance basis for income tax and capital gains tax for non-UK domiciled, UK resident individuals (the “Non-Dom Regime”) with effect from 6 April 2025. It is proposed that it is replaced with a new...
- Recent Updates from the IRS and Treasury on the Superfund Chemical Taxby Robert A. Friedman, Amanda H. Nussbaum, Aliza Cinamon, Thomas Multari and Rita N. Halabi on February 23, 2024 at 2:55 pm
I. Executive Summary On February 15, 2024, the IRS and Treasury issued a supplemental notice to a prior notice from December 2022, to correct a petition requesting that the Superfund Chemical Tax apply to polyphenylene sulfide. While the supplemental notice is narrow in scope, the IRS and Treasury have requested public comments by April 15,...
- Tax Relief for American Families and Workers Act of 2024by David S. Miller, Richard M. Corn, Jo Habenicht, Kathleen R Semanski, Martin T. Hamilton and Amanda H. Nussbaum on January 26, 2024 at 4:09 pm
On January 17, 2024, Senate Finance Committee Chairman Ron Wyden (D-Ore.) and House Ways and Means Committee Chairman Jason Smith (R-Mo.) released a bill, the “Tax Relief for American Families and Workers Act of 2024” (“TRAFA” or the “bill”). All of the provisions in the bill are taxpayer favorable, except those that apply to the...
- HMRC updates guidance on UK tax status of non-UK entities and US LLCs post Ansonby Stephen Pevsner, Robert E. Gaut and Jagmaan S. Bakshi on January 3, 2024 at 10:44 am
On 6 December, HMRC updated the section in its International Manual discussing the UK tax characterisation of overseas entities, and of Delaware (and other US) limited liability companies (LLCs) in particular (in INTM180000 and INTM180050). This part of the International Manual sets out HMRC’s views on whether certain foreign entities are “opaque” or “transparent” for...
- Tax Court holds that an offshore fund is engaged in a U.S. trade or businessby Martin T. Hamilton, David S. Miller, Amanda H. Nussbaum, Dan Paulos, Stuart Rosow, Seo Kyung (Rosa) Kim, Maggie Livingstone, Tyler J. Moser, Benjamin Swiszcz, Gaochuan Xie and Gregory Zeien on January 2, 2024 at 8:07 pm
On November 15, 2023, the U.S. Tax Court held in YA Global Investments v. Commissioner[1] that a non-U.S. private equity fund (YA Global) with a U.S. asset manager that bought equity and convertible debt of U.S. portfolio companies was engaged in the conduct of a trade or business within the United States for U.S. federal...
- CTA – The Large Operating Company Exemption – Not Everybody Can Be A “Big BOI”by Martine Seiden Agatston, Richard M. Corn, Martin T. Hamilton, Amanda H. Nussbaum and Stuart Rosow on December 29, 2023 at 12:29 am
In 2021, the Corporate Transparency Act was enacted into U.S. federal law as part of a multinational effort to rein in the use of entities to mask illegal activity, including proposed rules (effective January 1, 2024) requiring certain types of entities to file a report identifying the entity’s beneficial owners as well as the natural...
- Tax Court Holds That Active Limited Partners of State Law Limited Partnerships May Be Subject to Self-Employment Taxby Jean Bertrand, Scott S. Jones, Mary B. Kuusisto, Arnold P. May, David S. Miller, Jeremy Naylor, Amanda H. Nussbaum, Janicelynn Asamoto Park, Dan Paulos, Stuart Rosow and Rita N. Halabi on December 8, 2023 at 4:27 pm
Introduction Section 1402(a)(13) of the Internal Revenue Code provides that the distributive share of “limited partners, as such” from a partnership is not subject to self-employment tax.[1] Managers of private equity and hedge funds are routinely structured as limited partnerships to exclude management and incentive fees from self-employment taxes. On November 28, 2023, the Tax...
- BlueCrest – the Upper Tribunal considers the salaried member rulesby Stephen Pevsner, David M. Ward and Jagmaan S. Bakshi on September 22, 2023 at 9:40 am
The Upper Tribunal (UT) has upheld the decision of the First‑tier Tribunal (FTT) regarding the application of the UK’s salaried member rules (the Rules) to certain members of BlueCrest Capital Management (UK) LLP (BlueCrest), an asset manager engaged in the provision of hedge fund management services. We previously reported on the FTT decision in June...
- Senate Finance Committee Requests Public Comments on Digital Asset Taxationby Martin T. Hamilton, David S. Miller, Amanda H. Nussbaum and Rita N. Halabi on August 30, 2023 at 3:48 pm
On July 11, 2023, the Senate Finance Committee released an open letter to the Digital Asset Community asking a variety of questions in connection with possible future legislation. Public comments must be emailed to the Senate Finance Committee staff at [email protected] by September 8, 2023. The questions are related to the following nine general areas....
- Recent Updates from the IRS and Treasury on the Superfund Chemical Taxby Robert A. Friedman, Amanda H. Nussbaum, Aliza Cinamon, Thomas Multari and Rita N. Halabi on February 23, 2024 at 2:55 pm
I. Executive Summary On February 15, 2024, the IRS and Treasury issued a supplemental notice to a prior notice from December 2022, to correct a petition requesting that the Superfund Chemical Tax apply to polyphenylene sulfide. While the supplemental notice is narrow in scope, the IRS and Treasury have requested public comments by April 15,...
- Tax Court holds that an offshore fund is engaged in a U.S. trade or businessby Martin T. Hamilton, David S. Miller, Amanda H. Nussbaum, Dan Paulos, Stuart Rosow, Seo Kyung (Rosa) Kim, Maggie Livingstone, Tyler J. Moser, Benjamin Swiszcz, Gaochuan Xie and Gregory Zeien on January 2, 2024 at 8:07 pm
On November 15, 2023, the U.S. Tax Court held in YA Global Investments v. Commissioner[1] that a non-U.S. private equity fund (YA Global) with a U.S. asset manager that bought equity and convertible debt of U.S. portfolio companies was engaged in the conduct of a trade or business within the United States for U.S. federal...
- Tax Court Holds That Active Limited Partners of State Law Limited Partnerships May Be Subject to Self-Employment Taxby Jean Bertrand, Scott S. Jones, Mary B. Kuusisto, Arnold P. May, David S. Miller, Jeremy Naylor, Amanda H. Nussbaum, Janicelynn Asamoto Park, Dan Paulos, Stuart Rosow and Rita N. Halabi on December 8, 2023 at 4:27 pm
Introduction Section 1402(a)(13) of the Internal Revenue Code provides that the distributive share of “limited partners, as such” from a partnership is not subject to self-employment tax.[1] Managers of private equity and hedge funds are routinely structured as limited partnerships to exclude management and incentive fees from self-employment taxes. On November 28, 2023, the Tax...
- Senate Finance Committee Requests Public Comments on Digital Asset Taxationby Martin T. Hamilton, David S. Miller, Amanda H. Nussbaum and Rita N. Halabi on August 30, 2023 at 3:48 pm
On July 11, 2023, the Senate Finance Committee released an open letter to the Digital Asset Community asking a variety of questions in connection with possible future legislation. Public comments must be emailed to the Senate Finance Committee staff at [email protected] by September 8, 2023. The questions are related to the following nine general areas....
- New Proposed Regulations Would Impact the Determination of Domestically Controlled REIT and Structures for Sovereign Wealth Funds’ US Real Estate Investmentsby Muhyung (Aaron) Lee, Amanda H. Nussbaum, David S. Miller, Richard M. Corn, Jeremy Naylor and Carrie Slaton on January 13, 2023 at 7:57 pm
On December 28, 2022, the Internal Revenue Service (the “IRS”) and the Treasury Department released proposed regulations (the “Proposed Regulations”) under sections 892 and 897 of the Internal Revenue Code (the “Code”).[1] If finalized as proposed, the Proposed Regulations would prevent a non-U.S. person from investing through a wholly-owned U.S. corporation in order to cause...
A Primer On Education Tax Credits
When preparing for college, students and parents can easily list the costs like tuition, fees, supplies and room and board. But do you spend enough time considering the tax benefits associated with a college education? Lucky for you there are a number of education tax...