Business Tax Provisions -
About-Face on Deductibility of PPP Expenses. The CAA overrules the IRS’s previous guidance denying the deductibility of expenses relating to forgiven PPP loans....more
2/3/2021
/ CARES Act ,
Consolidated Appropriations Act (CAA) ,
Coronavirus/COVID-19 ,
Families First Coronavirus Response Act (FFCRA) ,
Federal Loans ,
Financial Stimulus ,
Infectious Diseases ,
New Legislation ,
Paycheck Protection Program (PPP) ,
SBA Lending Programs ,
Tax Credits ,
Tax Deductions ,
Tax Planning
On December 13, 2018, the Internal Revenue Service issued proposed regulations that eliminate certain types of withholding under Sections 1471-1474 of the tax code, which are commonly referred to as FATCA. ...more
On October 19, 2018, the Internal Revenue Service (the “IRS”) and the Treasury Department issued proposed regulations relating to the new Opportunity Zone program....more
10/30/2018
/ Capital Gains ,
Community Development ,
Economic Development ,
Investment Funds ,
Investment Opportunities ,
IRS ,
Low Income Housing ,
New Market Tax Credits ,
Opportunity Zones ,
Proposed Regulation ,
Public Finance ,
Real Estate Development ,
Real Estate Market ,
Safe Harbors ,
State and Local Government ,
Tax Cuts and Jobs Act ,
Tax Deferral ,
Tax Incentives ,
Tax Reform ,
U.S. Treasury
On December 20, 2017, the Senate and House of Representatives passed H.R. 1, known as the “Tax Cuts and Jobs Act” (“Tax Reform Bill”). President Trump is expected to sign the Tax Reform Bill by early January. The Tax Reform...more
12/21/2017
/ Business Taxes ,
Carried Interest ,
Corporate Taxes ,
Income Taxes ,
Insurance Industry ,
International Tax Issues ,
Legislative Agendas ,
Like Kind Exchanges ,
Net Operating Losses ,
Pending Legislation ,
Tax Deductions ,
Tax Rates ,
Tax Reform ,
Trump Administration
On December 20, 2017, the Senate and House of Representatives passed H.R. 1, known as the “Tax Cuts and Jobs Act” (“Tax Reform Bill”). President Trump is expected to sign the Tax Reform Bill by early January. The Tax Reform...more
12/21/2017
/ 501(c)(3) ,
Charitable Donations ,
Charitable Organizations ,
Compensation & Benefits ,
Educational Institutions ,
Estate Tax ,
Excise Tax ,
Executive Compensation ,
Legislative Agendas ,
Nonprofits ,
Pending Legislation ,
Tax Exempt Entities ,
Tax Exemptions ,
Tax Reform ,
Tax-Exempt Bonds ,
Trump Administration ,
UBIT
On December 2, 2017, the Senate passed a tax reform bill that differs in some key aspects from the tax reform bill the House approved on November 16, 2017. A House and Senate conference committee will begin work to resolve...more
12/13/2017
/ BEPS ,
Carried Interest Tax Rates ,
Corporate Taxes ,
Income Taxes ,
Insurance Industry ,
International Tax Issues ,
Legislative Agendas ,
Like Kind Exchanges ,
Net Operating Losses ,
Popular ,
Proposed Legislation ,
Tax Deductions ,
Tax Rates ,
Tax Reform ,
Trump Administration
On November 14, 2017, Senate Finance Committee Chairman, Orrin Hatch (R-Utah), released his modified tax reform plan (“Senate Bill”), which adopts some of the House Bill proposals (as amended) (“House Bill”), but also...more
11/20/2017
/ Carried Interest ,
Corporate Taxes ,
EBITDA ,
Excise Tax ,
Insurance Industry ,
International Tax Issues ,
Legislative Agendas ,
Like Kind Exchanges ,
Net Operating Losses ,
Partnership Interests ,
Proposed Legislation ,
Tax Deductions ,
Tax Rates ,
Tax Reform ,
Trump Administration
On November 2, 2017, Republicans in the U.S. House of Representatives unveiled their tax reform bill (the “Bill”), entitled the “Tax Cuts and Jobs Act.” The Bill proposes significant changes to the current U.S. federal income...more
11/15/2017
/ 501(c)(3) ,
Charitable Donations ,
Compensation & Benefits ,
Estate Tax ,
Excise Tax ,
Executive Compensation ,
Income Taxes ,
Legislative Agendas ,
Museums ,
Net Investment Income ,
Proposed Legislation ,
Tax Deductions ,
Tax Exempt Entities ,
Tax Exemptions ,
Tax Rates ,
Tax Reform ,
Tax-Exempt Bonds ,
Trump Administration ,
UBIT
On November 2, 2017, Republicans in the House of Representatives released their long-anticipated tax reform bill (the “Bill”). The Bill, which is entitled the “Tax Cuts and Jobs Act,” includes significant changes to the...more
11/9/2017
/ Collateralized Loan Obligations ,
Corporate Taxes ,
Income Taxes ,
Internal Revenue Code (IRC) ,
Investment Funds ,
Investment Management ,
Legislative Agendas ,
Legitimate Business Interest ,
Pass-Through Entities ,
Securitization Vehicles ,
Tax Code ,
Tax Deductions ,
Tax Exempt Entities ,
Tax Exemptions ,
Tax Rates ,
Tax Reform ,
Trump Administration ,
UBTI
On November 2, 2017, Republicans in the House of Representatives released their long-anticipated tax reform bill (the “Bill”) which includes significant changes to the current U.S. federal income tax regime for businesses and...more
11/6/2017
/ Business Taxes ,
Corporate Counsel ,
Corporate Taxes ,
Excise Tax ,
Insurance Industry ,
International Tax Issues ,
Like Kind Exchanges ,
Net Operating Losses ,
Partnerships ,
Related Parties ,
S-Corporation ,
Tax Deductions ,
Tax Rates ,
Tax Reform ,
Trump Administration
On October 13, 2016, Treasury and the IRS issued new final and temporary “anti-inversion” regulations under section 385 of the Internal Revenue Code that could treat certain purchasers of notes issued by securitizations as...more
10/25/2016
/ Anti-Inversion Regulations ,
Asset-Backed Securities ,
Capital Markets ,
Collateralized Loan Obligations ,
Disregarded Entities ,
Grantor Trusts ,
IRS ,
Partnerships ,
Securitization ,
Stocks ,
Student Loans ,
Tax Rates ,
Transfer Restrictions ,
U.S. Treasury ,
Withholding Tax
On October 13, 2016, Treasury and the IRS issued important new final and temporary regulations (the “Regulations”) under section 385 of the Internal Revenue Code addressing the treatment of intercompany debt for U.S. federal...more
10/25/2016
/ Asset Stripping ,
CDIs ,
Collateralized Loan Obligations ,
Convertible Debt ,
Debt Instruments ,
Debt-Equity ,
Exemptions ,
Expanded Group Instruments (EGIs) ,
Foreign Issuers ,
Interest Payments ,
Internal Revenue Code (IRC) ,
Inversion ,
IRS ,
Multinationals ,
Required Documentation ,
Stocks ,
Tax Rates ,
Transfer Restrictions ,
U.S. Treasury
Proposed regulations issued on July 14, 2016 generally would prevent tax-free spinoffs involving companies with less than 5% active business assets and spinoffs where one company holds a substantial amount of nonbusiness...more
On May 10, 2016, the Treasury Department issued proposed regulations that, if approved, will require business entities formed in the United States that are owned by a single foreign person to obtain an employer identification...more
5/19/2016
/ Beneficial Owner ,
Business Entities ,
Employer Identification Number (EIN) ,
FinCEN ,
Foreign Ownership ,
IRS ,
Money Laundering ,
Mossack Fonseca ,
Offshore Funds ,
Panama Papers ,
Recordkeeping Requirements ,
Reporting Requirements ,
Tax Evasion ,
Tax Haven
On March 28, 2016, the U.S. District Court for the District of Massachusetts held that two private equity funds within Sun Capital were jointly and severally liable under the Employee Retirement Income Security Act of 1974,...more
On April 4, 2016, Treasury released new rules making it more difficult for some U.S. companies to invert (“Serial Inversion Regulations”), Proposed Regulations limiting the effectiveness of “earnings stripping” techniques...more
A bill recently introduced in the New York State Assembly would impose additional tax on carried interest. The taxation of carried interest has been widely discussed over the last decade, with a number of bills introduced...more
On November 19, 2015, Treasury issued Notice 2015-79 (the “Notice”), which announces Treasury’s intent to issue regulations reducing the tax benefits available to inverted groups and making it more difficult for some U.S....more
In a statement that would mark a stark change in approach, an IRS official recently indicated that the IRS may begin requiring that companies seeking to effect tax-free spinoffs conduct active businesses that represent a...more
5/28/2015
/ Acquisitions ,
Alibaba ,
Business Development ,
Corporate Counsel ,
E-Commerce ,
IRS ,
Mergers ,
Popular ,
REIT ,
Small Business ,
Spinoffs ,
Yahoo!
New final regulations(the “Final Regulations”) have been issued clarifying and altering the “qualified performance-based compensation” exception and the transitional “reliance period” exception for newly public companies to...more
On September 22, 2014, the Treasury Department announced its intent to issue new regulations that will reduce the tax benefits available after an inversion and may make it more difficult for some U.S. companies to invert (the...more
On June 25, 2014, Ireland’s Taoiseach (Prime Minister) Enda Kenny and Minister for Finance Michael Noonan, among others, met with Cadwalader Chairman-elect and Corporate Group Co-Chair James C. Woolery in Dublin regarding...more
On May 20, 2014, Sen. Carl Levin (D-MI) introduced the Stop Corporate Inversions Act of 2014 (the “Levin Bill”), which proposes significantly more stringent limits on the ability of U.S. companies to relocate outside the U.S....more
In what may be the first of a series of steps, the government took decisive action today to ensure that shareholders of US companies inverting by merger must pay tax on the transfer of their US company shares if they hold a...more
Corporate inversions have constituted an active and successful part of the M&A market in 2013 and early 2014, as acquirors have typically traded up on the date of announcement. However, there is now a new urgency for U.S....more