On July 28, 2020, the Treasury Department and the IRS issued final and proposed regulations (the “Final Regulations” and “New Proposed Regulations”) under Section 163(j) of the Internal Revenue Code (the “Code”). The Final Regulations and New Proposed Regulations amend prior proposed regulations issued on November 26, 2018 (the “Prior Proposed Regulations”). Section 163(j) of
Transition Tax Campaign’s Focus on E&P Concerns Practitioners
In a recent Tax Notes article, tax partner and tax controversy group co-founder Kat Gregor provides commentary on the IRS Large Business and International Division’s transition tax compliance campaign, also commonly referred to as the Section 965 campaign, which is causing some taxpayer headaches when it comes to the audit review of earnings and profits
Final BEAT Regulations Contain Promise and Pitfalls for Taxpayers
On September 3, the Department of the Treasury issued final regulations regarding the base erosion and anti-abuse tax (“BEAT”) imposed on certain large corporate taxpayers with respect to certain payments made to foreign related parties.[1] The final regulations provide guidance on a number of areas, an important section of the regulations pertains to the
Podcast: Disputing Tax: What is a Corporation? Charleston Area Medical Center and the New Carried Interest Regulations
In this episode of Ropes & Gray’s podcast series Disputing Tax, Franziska Hertel, an associate in the tax practice, is joined by Kat Gregor, a tax partner and tax controversy group co-founder, and Brittany Cvetanovich, counsel in the tax practice, to discuss a recent Federal Circuit case, Charleston Area Medical Center, Inc. v. United
When Down the Hall Becomes Across State Lines—Part 2
Many people relocated to a different state as Covid-19 pandemic restrictions intensified. That relocation may have lasted much longer than was anticipated and may have resulted in an unintended establishment of residency in another state. In Part 2 of a two-part series published in Bloomberg Tax, R&G attorneys explore common fact patterns and the
When Down the Hall Becomes Across State Lines—Part 1
Many people relocated to a different state as Covid-19 pandemic restrictions intensified. That relocation may have lasted much longer than was anticipated and may have resulted in an unintended establishment of residency in another state. In Part 1 of a two-part series published in Bloomberg Tax, R&G attorneys explore several northeastern states’ tax residency
Trending Video: OECD’s Digital Tax Proposal
Kat Gregor, tax partner and co-founder of the firm’s tax controversy group, discusses the OECD’s digital tax proposal as well as actions being taken by several countries to pass digital services taxes of their own.
Please click here to watch the video and view the transcript.
Proposed Regulations Restrict Role of IRS Contractors in Audits and Summons Interviews
On August 6, 2020, the IRS issued proposed regulations (REG-132434-17) limiting the role of contractors hired to assist the IRS in audits, including during summons interviews. The proposed regulations implement Section 7602(f), enacted by the Taxpayer First Act (P.L. 116-25), which became effective on July 1, 2019. They withdraw and replace proposed regulations
IRS Has Begun Examining Stock-Based Compensation Cost-Sharing Arrangements
After the Supreme Court declined to review the Ninth Circuit’s decision in Altera Corporation v. Commissioner, 926 F.3d 1061 (9th Cir. 2019) (cert denied — S. Ct. — (June 22, 2020)), the IRS has confirmed that it is examining taxpayers that did not include stock-based compensation costs as intangible development costs under Treasury
IRS to Begin Enforcing Section 965 Transition Tax in October
The IRS has announced that it will begin enforcing Section 965’s repatriation tax in October 2020. Section 965 and its regulations require United States shareholders to pay a one-time transition tax on untaxed foreign earnings of certain foreign corporations as if these earnings had been repatriated to the United States. Cash holdings are taxed at