News & Analysis as of

Tax Allocation Agreements

Goodwin

German Federal Fiscal Court Confirms Tax Treatment of Carry Income as Disproportionate Profit Allocation

Goodwin on

The German carry taxation regime pursuant to Section 18, paragraph 1, number 4 in the German Income Tax Act (referred to hereafter as “Section 18”) provides for a beneficial tax treatment of carry income of German resident...more

Holland & Knight LLP

IRS Rules 3 Utilities Cannot Reduce NOL Carryforwards for Tax Allocation Payments

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Following the initial public release of private letter ruling (PLR) 20242002 as part of a state rate proceeding, on June 28, 2024, the IRS publicly released that ruling, as well as two companion rulings obtained by other...more

Holland & Knight LLP

IRS Rules Utility's NOL Carryforward Cannot Be Reduced by Tax Allocation Payments

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The IRS recently issued private letter ruling (PLR) 107770-22 that involved a normalization issue of first impression, namely, whether payments received by a utility pursuant to an intercompany tax allocation agreement (TAA)...more

Troutman Pepper

Rolling Over and Section 704(c); What's the Big Deal? — Part 1: The Basics

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When entering into a partnership agreement where one partner is contributing cash and another partner is contributing appreciated property, inevitably, a tax advisor is going to ask, which Section 704(c) allocation method...more

Nutter McClennen & Fish LLP

Nutter Bank Report: April 2021

CFPB Takes Steps to Avoid a Possible Wave of Home Mortgage Loan Foreclosures - The CFPB has issued guidance to mortgage servicers, including banks that service mortgage loans for third-party noteholders, that the CFPB...more

Holland & Knight LLP

Contract Allocations and Judicial Doctrines

Holland & Knight LLP on

In Cotto-Vázquez v. United States, CIV. NO.: 16-2807 (SCC) (D.P.R. March 11, 2021), Miguel Ángel Cotto-Vázquez (Cotto),1 the former four-time Puerto Rican boxing champion, became involved in another fight. This time he faced...more

Bricker Graydon LLP

Lame duck results in energy-efficiency deductions for public buildings and airport development districts

Bricker Graydon LLP on

New legislation enacted during the recent lame duck session of the General Assembly may alter the allocation of the federal income tax deduction granted for the design and installation of energy-efficient commercial building...more

Kramer Levin Naftalis & Frankel LLP

In Decision With Important Tax and Bankruptcy Implications, Supreme Court Rejects Application of So-Called 'Bob Richards Rule'

In its recent decision in Rodriguez v. Federal Deposit Insurance Corp., No. 18–1269 (Sup. Ct. Feb. 25, 2020), the Supreme Court held that federal courts may not apply the federal common law “Bob Richards Rule” to determine...more

A&O Shearman

The Supreme Court’s Rejection of the Bob Richards Rule Creates Uncertainty Regarding the Entitlement of Members of a Consolidated...

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On February 25, 2020, the United States Supreme Court in Rodriguez v. Federal Deposit Insurance Corporation struck down a judicial federal common law rule—known as the Bob Richards rule—that is used by courts to allocate tax...more

Kelley Drye & Warren LLP

U.S. Supreme Court Rules Against Use of Bob Richards Rule to Determine Ownership of Tax Refund Within Consolidated Group:...

On February 25, 2020, in Rodriguez v. Federal Deposit Insurance Corporation, No. 18-1269 (U.S. 2020), the U.S. Supreme Court effectively ruled that the so-called “Bob Richards rule” should not be used to determine which...more

King & Spalding

Still The Least Dangerous Branch: Supreme Court Unanimously Rules That Federal Common Law Does Not Govern Corporate Tax Refund...

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On February 25, 2020, the United States Supreme Court issued a unanimous opinion vacating a decision by the U.S. Court of Appeals for the Tenth Circuit applying federal common law to determine the allocation of a corporate...more

McDermott Will & Emery

Supreme Court Tackles Tax-Related Cases

McDermott Will & Emery on

The United States Supreme Court has picked up the pace this week, already issuing eight regular opinions and four opinions relating to orders as of today. We discuss the tax-related items here. In Rodriguez v. FDIC, the...more

Faegre Drinker Biddle & Reath LLP

Supreme Court Decides Rodriguez v. Federal Deposit Insurance Corporation

On February 25, 2020, the Supreme Court decided Rodriguez v. Federal Deposit Insurance Corporation, No. 18-1269, overruling a federal common law rule that was used in some circumstances to determine how to distribute the tax...more

BCLP

Death of the Bob Richards Rule? Supreme Court Limits Federal Common Law (Rodrigues v. Fed. Deposit Ins. Corp.)

BCLP on

When can a Federal Court employ a federal common law rule to make its decision in the case? Justice Gorsuch answer this in Rodriguez v. Fed. Deposit Ins. Corp., U.S., No. 18-1269, 2/25/20. The answer...less often than you...more

Bowditch & Dewey

Current Issues for Higher Education Real Estate Lawyers

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Campus Real Estate, Property Management, Tax Credits The 15th Annual Higher Education Real Estate Lawyers conference was held in San Francisco, where attendees listened to and learned from both in-house and outside counsel at...more

Troutman Pepper

Update on Transaction Costs - 'Origin of the Claim' Analysis Will Decide Tax Allocations - Tax Update Volume 2017, Issue 3

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While the Internal Revenue Service (IRS) has continued to issue guidance addressing the ability to deduct transaction costs, the doctrine of "Origin of the Claim" (OOC) developed over 50-plus years of case law is still the...more

Orrick, Herrington & Sutcliffe LLP

California Debt Limit Allocation Committee Releases Proposed Regulations

This client alert discusses some of the more significant changes that could affect issuers and borrowers in connection with awards of volume cap if the proposed regulations were adopted in their current form. The...more

Skadden, Arps, Slate, Meagher & Flom LLP

New Regulations Dramatically Alter Partnership 'Disguised Sales' and Allocation of Partnership Liabilities

On October 4, 2016, the Internal Revenue Service and the Treasury Department issued a sweeping package of proposed, temporary and final regulations under the Internal Revenue Code that, among other things, significantly...more

Carlton Fields

Surplus Lines Clearinghouse Provides Instructions Following The Dissolution Of The Non-Admitted Insurance Multistate Agreement...

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In a Special Focus article posted on May 2, 2016, we addressed the uncertain future of the multi-state allocation of non-admitted premium tax revenue. The Non-admitted and Reinsurance Reform Act (NRRA) provides for individual...more

Morgan Lewis

DC Circuit Ruling Threatens to Topple FERC Tax Allowance Policy

Morgan Lewis on

Court rules that FERC policy permitting a tax allowance for pass-through entities may unjustifiably permit “double-recovery” of tax expense. On July 1, the US Court of Appeals for the District of Columbia Circuit issued...more

Cozen O'Connor

DC Circuit Decision Likely to Reignite FERC Debate Over Tax Allowance for Pass-through Entities

Cozen O'Connor on

The recent decision by the U.S. Court of Appeals for the District of Columbia Circuit in United Airlines Inc., et al., v. Federal Energy Regulatory, Case No. 11-1479, July 1, 2016 (United Airlines) will likely reignite a...more

Bracewell LLP

Delaware Chancery Court Dismisses Challenge to MLP Drop Down Transaction

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The Delaware Chancery Court recently dismissed a challenge to a transaction in which a master limited partnership (the "MLP") repurchased an interest in a crude oil pipeline in 2015 previously sold to its general partner (the...more

Carlton Fields

What Is The Future Of The Multi-State Allocation Of Nonadmitted Premium Tax Revenue?

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In the portion of the Dodd-Frank Act known as the Nonadmitted and Reinsurance Reform Act, Congress established a public policy and stated its desire that “each State adopt nationwide uniform requirements, forms, and...more

Goulston & Storrs PC

Temporary Regulations Address Allocation of Creditable Foreign Tax Expense

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The IRS published temporary and proposed regulations on allocations of creditable foreign tax expenditures (CFTEs).  The regulations make various technical changes to the existing regulatory safe harbor for allocating CFTEs. ...more

Lowndes

Status Update on Targeted Allocation Regulations

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I’m at the ABA Tax conference this week and one of this morning’s first panels included a discussion of hot topics in partnerships. Curtis Wilson, IRS Associate Chief Counsel in Passthroughs and Special Industries,...more

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