Recently, in Revenue Ruling 2020-8, the Internal Revenue Service (IRS) announced that it was suspending Revenue Ruling 71-533, which had addressed the interaction of two Internal Revenue Code (IRC) provisions regarding...more
On April 14, 2020, the Internal Revenue Service (IRS) issued informal guidance in the form of frequently asked questions (the “FAQs”), urging taxpayers to strengthen their transfer pricing documentation required under...more
Rev. Proc. 2020-23 eases restrictions on partnerships’ ability to file amended tax returns and issue amended Schedules K-1 in order for their partners to avail themselves of the retroactive tax relief provided by the CARES...more
In a recent order in the The Cannon Corp. v. Commissioner, No. 12466-16, the US Tax Court (Tax Court) held that a redacted email from a revenue agent’s supervisor to the agent regarding a notice of deficiency was not...more
Recently, the US Federal District Court for the Southern District of Iowa in Meredith Corp. v. United States, No. 4:17-cv-00385 (S.D. Iowa Mar. 20, 2020), held that a magazine publisher was entitled to refund of federal...more
The Federal government has recently taken a series of actions concerning the novel coronavirus disease (COVID-19). We discuss the tax implications of these decisions...more
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
2/27/2020
/ Administrative Procedure Act ,
Affiliated-Business Arrangements ,
Appeals ,
Bob Richards Rule ,
Consolidated Tax Returns ,
Federal Common Law ,
Federal v State Law Application ,
Internal Revenue Code (IRC) ,
IRS ,
Jurisdiction ,
Kisor v Wilkie ,
Lack of Authority ,
Parent Corporation ,
Petition for Writ of Certiorari ,
Remand ,
Rodriguez v Federal Deposit Insurance Corp. ,
SCOTUS ,
State Law Claims ,
Tax Allocation Agreements ,
Tax Reform ,
Tax Refunds ,
Unconstitutional Condition ,
Vacated
On November 6, 2019, President Trump announced his intent to nominate Ms. Alina Ionescu Marshall and Mr. Christian N. Weiler to serve as Judges on the United States Tax Court (Tax Court). Mr. Travis Greaves was previously...more
On November 4, 2019, the Internal Revenue Service (IRS) announced a new Large Business and International (LB&I) compliance campaign regarding Section’s 965 transition tax under the Tax Cuts and Jobs Act (TCJA). This is one of...more
11/7/2019
/ Anti-Abuse Rule ,
Foreign Corporations ,
Foreign Earned Income ,
Internal Revenue Code (IRC) ,
International Tax Issues ,
IRS ,
Large Business & International Division (LB&I) ,
Multinationals ,
New Guidance ,
Tax Cuts and Jobs Act ,
Tax Reform ,
Transition Tax
On September 28, 2019, the Treasury Inspector General for Tax Administration (TIGTA) issued a report titled Initial Compliance Results Warrant a More Data-Driven Approach to Campaign Issue Selection.
As the name of the...more
On July 19, 2019, the Internal Revenue Service (IRS) Large Business & International (LB&I) division announced the approval of six new campaigns. As in the past, the IRS stated that “LB&I’s goal is to improve return selection,...more
7/23/2019
/ Deferred Compensation ,
Income Taxes ,
Internal Revenue Code (IRC) ,
IRS ,
Large Business & International Division (LB&I) ,
OVDP ,
S-Corporation ,
Section 457A ,
Tax Credits ,
Tax Planning ,
Tax Returns
In Kearse v. Commissioner, T.C. Memo 2019-53, the Tax Court held the Internal Revenue Service (IRS) abused its discretion as part of the taxpayer’s Collection Due Process hearing (CDP hearing) because the Appeals officer...more
A recent case decided by the US Tax Court reminds us that when you litigate a case in Tax Court, what happened during the Internal Revenue Service (IRS) examination and Appeals bears very little relevance (if any) once you...more
4/26/2019
/ Administrative Procedure ,
Burden of Production ,
Deficiency Notices ,
Internal Revenue Code (IRC) ,
IRS ,
Redeterminations ,
Statutory Violations ,
Tax Court ,
Tax Liability ,
Tax Litigation ,
Taxpayers' Bill of Rights
When you do not pay your taxes, the Internal Revenue Service (IRS) has the power to file a “lien” on your property under Internal Revenue Code section 6321. The lien attaches “upon all property and rights to property, whether...more
4/23/2019
/ Appeals ,
Capital Investments ,
Debtors ,
Encumbrances ,
Heirs ,
Income Taxes ,
Internal Revenue Code (IRC) ,
IRS ,
Liens ,
Notice Requirements ,
Tax Debt ,
Tax Liability
Most tax professionals are aware of the common-law “mailbox rule,” which provides that proof of proper mailing creates a rebuttable presumption that the document was physically delivered to the addressee. Internal Revenue...more
The Internal Revenue Service (IRS) Large Business and International (LB&I) Division continues to churn out new audit “campaigns.” For our prior coverage... The most recent set of campaigns were announced on April 16, 2019,...more
4/18/2019
/ Arms Length Transactions ,
Audits ,
Base Erosion Tax ,
Corporate Taxes ,
Foreign Corporations ,
Foreign Entities ,
Foreign Subsidiaries ,
Internal Revenue Code (IRC) ,
IRS ,
Large Business & International Division (LB&I) ,
Offshore Banks ,
Offshore Funds ,
Transfer Pricing
Borenstein v. Commissioner is an interesting opinion involving the intersection of canons of statutory construction and jurisdiction. Recently, the US Court of Appeals for the Second Circuit reversed the US Tax Court’s...more
4/16/2019
/ Appeals ,
Deficiency Notices ,
Income Taxes ,
Internal Revenue Code (IRC) ,
Jurisdiction ,
Overpayment ,
Reversal ,
Statutory Interpretation ,
Tax Court ,
Tax Litigation ,
Tax Reform ,
Tax Refunds ,
Tax Returns
On March 5, 2019, the US Department of Treasury (Treasury) issued a policy statement on the tax regulatory process. We previously wrote an article for Law360 on the policy statement... In our article, we noted the disclaimer...more
In a previously unannounced development, the U.S. Department of the Treasury issued a policy statement on the tax regulatory process on March 5, 2019, announcing significant changes related to regulations and subregulatory...more
The Internal Revenue Service (IRS) had broad examination authority to determine the correct amount of tax owed by taxpayers. In addition to seeking information directly from a taxpayer, the IRS is also authorized to seek...more
Recently proposed legislation would provide taxpayers who made an election under Internal Revenue Code (Code) Section 965(h) to pay the transition tax over eight years through installment payments the ability to claim a...more
The Internal Revenue Service (IRS) has issued PMTA 2018-016, reaffirming its position that for taxpayers making an election under Internal Revenue Code (Code) Section 965(h) to pay the transition tax over eight years through...more
We previously discussed the Internal Revenue Service’s (IRS) surprising position that for taxpayers making an election under Internal Revenue Code (Code) Section 965(h) to pay the transition tax over 8 years through...more
In a highly-anticipated Technical Advice Memorandum (TAM) dated March 23, 2017 and released on July 21, 2017, the Internal Revenue Service (IRS) ruled that two taxpayers who had invested in a Limited Liability Company that...more
In Albemarle Corp. v. United States, No. 2015-5015 (Fed. Cir. Aug. 13, 2015), the United States Court of Appeals for the Federal Circuit disallowed claims for refund related to foreign taxes paid by Albemarle Corporation...more
9/9/2015
/ Ambiguous ,
Belgium ,
Debentures ,
Filing Deadlines ,
Foreign Tax ,
Foreign Tax Credits ,
Internal Revenue Code (IRC) ,
IRS ,
Limitation Periods ,
Tax Liability ,
Tax Litigation ,
Tax Refunds