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The Proposed Regulations issued in November, 2024 are 342 pages in length and present an uphill climb for tax counsel and tax advisors of US persons investing in stock of foreign corporations. The tracking rules require each CFC and its US shareholders to maintain, on an annual basis, ten accounts that cover previously included income, crediting of foreign income taxes, tracking increases to stock basis for PTEP and decreasing PTEP for distributions of PTEP against stock basis. That is just the… Read More

TCJA 2017 International Tax Law Reforms: Making the U.S. More Competitive in a Global Economy The international tax law changes enacted into law by the TCJA 2017 reflected the adoption of a territorial based system for income taxation of U.S. companies, including U.S. subsidiaries of foreign corporations. Read More

Section 461(l) is just bad tax policy. While deductions granted are a matter of legislative grace by act of Congress, in reality Section 461(l) can, as a matter of economic reality, impose income tax on “gross receipts” for a taxpayer actively engaged in business which generate an operating loss in excess of the threshold amount for which the taxpayer is otherwise not subject to any other limitation that Congress did not previously prescribe. Read More

From: ALI-The Practical Tax Lawyer (Winter 2017) The Bipartisan Budget Act of 2015 made fundamental changes to how the IRS will conduct audits of partnerships. This article by Jerald David August discusses the partnership audit rules prior to and as a result of TEFRA, drafting for three regimes involving IRS audits of partnerships, the partnership “pushout” election, election out of the Budget Act partnership audit rules, procedural issues/judicial review, the need for guidance in the form o… Read More

House GOP Bill, H.R. 1 and Chairman’s mark amendments of November 9, 2017 On November 2, 2017, the Republican GOP released a comprehensive tax reform plan which introduced a set of individual and corporate tax reforms that have received much attention and criticism from both sides of the aisle. Summaries of the proposed legislation were described in this forum in “House Republicans Release Tax Reform Plan: Ways And Means Committee Chair Brady Suggests Flex Rate Package” posted on Novem… Read More

Perrigo Company and Subsidiaries (“Perrigo”) on August 15, 2017, filed a tax refund suit against the United States in the United States District Court for the Western District of Michigan, Southern Division, No. 1:17-cv-00737. [1] Perrigo alleged it overpaid Federal income taxes, penalties and interest, for its 52-53 week tax years ending in the last week in June for the years 2009 through 2012 by over $163 million. Read More

As recently set forth in a post to K&F, LLP Business and International Tax Developments, in Executive Order 13789, President Trump directed the Treasury Department to undertake a detailed review of certain tax regulations projects that were either in proposed or final form on or after January 1, 2016 that imposed financial burdens on U.S. taxpayers, overly complicate the Federal tax laws, or exceed the statutory authority of the IRS in issuing regulations and report back to the President on… Read More

Shortly after President Trump took the oath of office as President, on April 21, 2017, President Trump issued Executive Order 13789, a directive intended to reduce tax regulatory burdens on the IRS and Treasury.[1] The order instructed the Secretary of the Treasury to review all “significant tax regulations” issued on or after January 1, 2016 by the predecessor administration, and submit two reports, followed promptly by taking concrete action to alleviate the burdens of regulations that mee… Read More