Tax News
Bringing you the latest tax and accounting updatesIRS – Tax Tips
- 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 Real Propertyby Richard M. Corn, Robert A. Friedman, Martin T. Hamilton, David S. Miller, Amanda H. Nussbaum, Stuart Rosow and Rita N. Halabi on May 11, 2022 at 2:00 pm
On March 28, 2022, the Biden Administration proposed changes to the taxation of real property. Restrict Deferral of Gain for Like-Kind Exchanges under Section 1031 The Biden Administration has proposed to limit the gain that can be deferred under a like-kind exchange of real estate under section 1031 to $500,000/year for individual taxpayers (or $1 million/year...… 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
- The Biden Administration Proposes Changes to the U.S. International Tax Rulesby David S. Miller, Amanda H. Nussbaum, Stuart Rosow, Martin T. Hamilton and Rita N. Halabi on April 22, 2022 at 5:07 pm
Introduction and Summary On March 28, 2022, the Biden Administration proposed changes to the U.S. international tax rules. In short, the Biden Administration proposed to: Enact a 15% minimum “undertaxed profits rule” (a “UTPR”) to replace the “Base Erosion Anti-Abuse Tax” (“BEAT”), and a 15% “qualified domestic minimum top-up tax” (a “QDMTT”). These proposals are...… Continue Reading
- The Biden Administration Proposes Mark-to-Market Minimum Tax on Individuals With More than $100 Million in Assetsby David S. Miller, Amanda H. Nussbaum and Stuart Rosow on April 12, 2022 at 1:09 pm
Summary and Background. On March 28, 2022, the Biden Administration proposed a 20% minimum tax on individuals who have more than $100 million in assets. The minimum tax would be based on all economic income (which the proposal refers to as “total income”), including unrealized gain. The tax would be effective for taxable years beginning...… 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
- Senator Manchin Announces That He Will Not Support the Build Back Better Act – Where Things Stand Nowby David S. Miller, Muhyung (Aaron) Lee, Amanda H. Nussbaum, Arnold P. May, Dan Paulos and Martin T. Hamilton on December 20, 2021 at 1:56 am
Today, December 19, 2021, Senator Joe Manchin (D., W.Va.) said that he opposes the Build Back Better Act, which effectively prevents its passage. While there are no immediate prospects for the Build Back Better Act to become law, future tax acts tend to draw upon earlier proposals. With a view to future tax proposals, this...… Continue Reading
- New Guidance Allows Publicly-Offered REITs and RICs to Issue up to 90% of Qualifying Dividends in the REIT or RIC’s Own Stock Through June 2022by Martine Seiden Agatston, Martin T. Hamilton, Talia Jaffe and David S. Miller on December 14, 2021 at 7:34 pm
On November 30, 2021, the IRS issued Revenue Procedure 2021-53, which temporarily allows publicly offered RICs and REITs to make distributions that are treated as dividends of up to 90% stock and the remainder in cash. Revenue Procedure 2020-19 closely follows the format of similar guidance issued during the 2008 financial crisis and in 2020,...… Continue Reading
- A step closer to agreement on taxation of the digital worldby David M. Ward, Stephen Pevsner and Martin T. Hamilton on October 22, 2021 at 5:03 pm
On 8 October 2021, the OECD released a further statement in relation to the BEPS 2.0 proposals, aimed at addressing taxation of the modern digital economy. This is the latest development in the attempts to more equally share the tax revenue relating to digital services that have led to some jurisdictions, including the UK, introducing...… Continue Reading
- 130 countries join the OECD’s framework for international tax reformby Robert E. Gaut and David M. Ward on July 5, 2021 at 8:35 am
Significant progress has been made in the efforts of the OECD to reach international consensus on the BEPS 2.0 proposals. Broadly, the proposals are aimed at addressing challenges relating to taxation of the modern digital economy. The 139 country OECD Inclusive Framework meeting concluded on 1 July 2021, with 130 countries and jurisdictions, representing in...… 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
- New Guidance Allows Publicly-Offered REITs and RICs to Issue up to 90% of Qualifying Dividends in the REIT or RIC’s Own Stock Through June 2022by Martine Seiden Agatston, Martin T. Hamilton, Talia Jaffe and David S. Miller on December 14, 2021 at 7:34 pm
On November 30, 2021, the IRS issued Revenue Procedure 2021-53, which temporarily allows publicly offered RICs and REITs to make distributions that are treated as dividends of up to 90% stock and the remainder in cash. Revenue Procedure 2020-19 closely follows the format of similar guidance issued during the 2008 financial crisis and in 2020,...… Continue Reading
- The Made in America Tax Plan: The Biden Administration Outlines its Tax Reform Proposalsby David S. Miller, Muhyung (Aaron) Lee, Martin T. Hamilton, Amanda H. Nussbaum and Tony Meyer, Jr. on April 5, 2021 at 10:31 pm
On March 31, 2021, the White House released a factsheet describing the “American Jobs Plan”, a $2.3 trillion proposal for infrastructure spending that also contains certain significant tax credits, and the “Made in America Tax Plan”, a tax proposal that would generate revenue to pay for the American Jobs Plan spending. The White House estimates...… 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...