Tax News
Bringing you the latest tax and accounting updatesIRS – Tax Tips
- Tax Court Provides Helpful Guidance on Requirements for Tax-Free Profits Interestsby David S. Miller, Amanda H. Nussbaum, Stuart Rosow, Robert A. Friedman and Rita N. Halabi on May 26, 2023 at 3:52 pm
Introduction On May 3, 2023, the United States Tax Court held in ES NPA Holding, LLC v. Commissioner, T.C. Memo. 2023-55, that the taxpayer’s receipt of interests in a partnership in exchange for services rendered to the sole owner of the business before it became a partnership was for the benefit of the future partnership...… Continue Reading
- Proposed Regulations Issued for Repatriations of Intangible Property under Section 367(d)by Richard M. Corn, Martin T. Hamilton, Amanda H. Nussbaum and Tyler J. Moser on May 22, 2023 at 2:54 pm
On May 2, 2023, the Department of the Treasury and Internal Revenue Service (“IRS”) issued proposed Treasury Regulations (REG-124064-19) that would, in certain cases, terminate the application of Section 367(d)[1] when intangible property is repatriated back to the United States. The proposed Regulations represent a taxpayer-favorable position for taxpayers that have considered repatriating intangible property...… Continue Reading
- Recent Legislative Proposals and IRS Guidance on the Taxation of Digital Assetsby Martin T. Hamilton, David S. Miller, Amanda H. Nussbaum, Rita N. Halabi and Kathleen R Semanski on May 2, 2023 at 2:54 pm
This blog post summarizes recent federal bills that have been introduced (but not yet passed), proposals by the Biden Administration, and guidance issued by the Internal Revenue Service with respect to the taxation of digital assets. Summary of the Guidance: The Responsible Financial Innovation Act (the “RFIA”) introduced in Congress by Senators Cynthia Lummis (R-WY)...… Continue Reading
- Proskauer Tax Talks: Green Book 2024by David S. Miller, Amanda H. Nussbaum, Martin T. Hamilton, Jean Bertrand, Rita N. Halabi, Martine Seiden Agatston, Tyler J. Moser and Alliyah J. Brown on April 24, 2023 at 6:41 pm
On March 9, 2023, the Biden Administration released the Fiscal Year 2024 Budget, and the “General Explanations of the Administration’s Fiscal Year 2024 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...… Continue Reading
- Upcoming changes to the company share options plan regimeby Stephen Pevsner, Robert E. Gaut, Richard Miller and Emma C. McDonnell on March 15, 2023 at 1:57 pm
Company share option plans (CSOP) and enterprise management incentives (EMI) are two statutory share option regimes that can be used to incentivise employees in a tax-efficient way. Broadly, where the relevant qualifying criteria have been met, both the CSOP and EMI schemes allow employees to acquire shares in their employer (or its group) for less...… Continue Reading
- IRS and Treasury Provide Guidance on the Excise Tax on Repurchases of Corporate Stock under Section 4501by Robert A. Friedman, Malcolm Hochenberg, David S. Miller, Amanda H. Nussbaum and Jo Habenicht on February 1, 2023 at 10:26 pm
On December 27, 2022, the Internal Revenue Service (“IRS”) and the U.S. Department of the Treasury (the “Treasury”) released Notice 2023-2 (the “Notice”), which provides guidance regarding the application of the 1% excise tax on corporate stock buybacks under recently enacted section 4501 (the “Tax”).[1] Taxpayers may rely on the Notice until proposed regulations are...… Continue Reading
- 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...… Continue Reading
- U.S. District Court Finds Mayo Clinic Qualifies as an “Educational Organization”; Awards $11.5M UBTI Refundby Richard M. Corn, Amanda H. Nussbaum, David S. Miller, Stuart Rosow and Carrie Slaton on January 3, 2023 at 10:11 pm
Tax-exempt organizations, while not generally subject to tax, are subject to tax on their “unrelated business taxable income” (“UBTI”). One category of UBTI is debt-financed income; that is, a tax-exempt organization that borrows money directly or through a partnership and uses that money to make an investment is generally subject to tax on a portion...… Continue Reading
- Massive U-Turn on Mini Budgetby Richard Miller, Emma C. McDonnell and Robert E. Gaut on October 18, 2022 at 9:07 am
As has been widely reported, a number of the Mini Budget proposals (summarised in our recent Tax Blog) have been scrapped. The new Chancellor of the Exchequer Jeremy Hunt announced these measures claiming that they are estimated to raise £32 billion in taxes every year. More tax rises and spending cuts are expected to be...… Continue Reading
- UK Mini Budget 2022by Richard Miller, Emma C. McDonnell and Robert E. Gaut on September 23, 2022 at 4:50 pm
UK Mini Budget 2022 The Chancellor today unveiled the UK’s 2022 Growth Plan which has been described as being “the biggest package of tax cuts in generations”. We have summarised here the tax changes that we think will be of interest to our client base. UK corporation tax: the main corporation tax rate that was...… Continue Reading
- 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...… Continue Reading
- U.S. District Court Finds Mayo Clinic Qualifies as an “Educational Organization”; Awards $11.5M UBTI Refundby Richard M. Corn, Amanda H. Nussbaum, David S. Miller, Stuart Rosow and Carrie Slaton on January 3, 2023 at 10:11 pm
Tax-exempt organizations, while not generally subject to tax, are subject to tax on their “unrelated business taxable income” (“UBTI”). One category of UBTI is debt-financed income; that is, a tax-exempt organization that borrows money directly or through a partnership and uses that money to make an investment is generally subject to tax on a portion...… Continue Reading
- A New(ish) Chemical Excise Tax Effective July 2022by Amanda H. Nussbaum, Aliza Cinamon, T.J. Ruane and Thomas Multari on May 13, 2022 at 3:18 pm
After a more than 26 year hiatus, on July 1, 2022, the Superfund chemical excise tax (the “Superfund Chemical Tax”) will again become effective. This excise tax, reinstated by the passage of the Infrastructure Investment and Jobs Act,[1] is imposed on manufacturers, producers, and importers of certain chemicals and chemical substances. As discussed below, the...… Continue Reading
- The Biden Administration Proposes Changes to the Taxation of Cryptocurrency Transactionsby Robert A. Friedman, Martin T. Hamilton, David S. Miller, Amanda H. Nussbaum, Stuart Rosow and Rita N. Halabi on May 5, 2022 at 2:30 pm
On March 28, 2022, the Biden Administration proposed certain very limited changes to the taxation of cryptocurrency transactions. The proposals do not change the current treatment of cryptocurrency as property for federal income tax purposes, and do not address any of the fundamental tax issues that cryptocurrency raise. I. Apply Securities Loan Rules to Digital...… Continue Reading
- Proposed Regulations Regarding the Aggregate Treatment for Pass-Through Owners of PFIC Stockby Dan Paulos, Amanda H. Nussbaum and Martin T. Hamilton on January 25, 2022 at 7:23 pm
On January 25, 2022, the Internal Revenue Service (the “IRS”) and the Department of the Treasury (“Treasury”) released regulations (the “Final Regulations”) finalizing provisions in prior proposed regulations which generally would treat domestic partnerships as aggregates of their partners (rather than as entities) for purposes of determining income inclusions under the Subpart F provisions applicable...… Continue Reading
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...