McDermott Will & Emery
Subscribe to McDermott Will & Emery's PostsGiving Back – Providing Pro Bono Tax Assistance
By Kevin Spencer, McDermott Will & Emery and McDermott Will & Emery on Feb 23, 2017
Posted In Trial Courts, Uncategorized
Here at McDermott, we value giving back to the community through pro bono efforts. In particular, we provide substantial assistance in pro bono tax cases to low-income individuals through our relationships with low-income taxpayer clinics throughout the country. Over the years, we have settled dozens of cases for low-income taxpayers in docketed tax cases and...
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Battat v. Commissioner: A Primer on the History of the US Tax Court
By McDermott Will & Emery and Jeffrey M. Glassman on Feb 9, 2017
Posted In Court Procedure Matters, Trial Courts, Uncategorized
In Battat v. Commissioner, the US Tax Court recently affirmed its own constitutionality, in releasing an opinion relating to the President’s authority to remove Tax Court Judges. The taxpayer filed a motion asking the court to disqualify all Tax Court Judges and to declare unconstitutional IRC Section 7443(f), which provides circumstances by which the President...
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Circuit Courts Agree Timely Filing Requirement for a Tax Court Petition is Jurisdictional
By McDermott Will & Emery and McDermott Will & Emery on Jan 23, 2017
Posted In Appellate Courts, Court Procedure Matters, IRS Guidance, Trial Courts, Uncategorized
Arguably the most important aspect of litigating a case in the Tax Court or in a refund forum is the timely filing of the petition or complaint. Absent timely filing, the court may not have jurisdiction and the case could be dismissed without the court ever reaching the substantive issues. On January 13, 2017, the...
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The Evolving World of Global Tax Planning
By McDermott Will & Emery on Jan 18, 2017
Posted In Transfer Pricing Resource, Uncategorized
In October 2015, final recommendations on Base Erosion and Profits Shifting (BEPS) were released, setting in motion epochal changes that will impact the global effective tax rate (ETR) of multinational enterprises (MNE) in the coming years. Country-by-Country Reporting (CbCR) is the first, almost globally adopted output of the BEPS process currently facing MNEs. It raises...
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Globalism vs. Populism in the International Tax World
By McDermott Will & Emery on Jan 17, 2017
Posted In Transfer Pricing Resource, Uncategorized
Adoption of the base erosion and profit shifting (BEPS) action items in specific countries can be expected to alter traditional multi-national enterprises (MNE) tax strategy processes. In this regard, it is appropriate to note that tax authorities and the Organization for Economic Co-operation and Development (OECD) often seem to overlook, or conveniently ignore, that MNE...
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IRS Practice Unit Advises Examiners to Use Aggregate Approach in Valuing Outbound Transfers
By McDermott Will & Emery and Kristina Novak on Jan 12, 2017
Posted In IRS Guidance, Uncategorized
On January 4, 2017, the Internal Revenue Service (IRS) released a new “International Practice Unit” (IPU) on the value of intangibles in IRC Section 367(d) transactions in conjunction with cost sharing arrangements (CSA). See IPU here. The IPU notes that transferring highly valuable intangibles offshore has become a routine tax strategy for reducing a company’s...
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Transfer Pricing Developments – A Year in Review
By McDermott Will & Emery on Dec 28, 2016
Posted In Transfer Pricing Resource, Uncategorized
Transfer pricing, the allocation of income or loss between members of a controlled group, (TP) continues to be the critical taxation issue in the cross-border world (international, federal or state), whether in planning, controversy or other purposes. Why is this case? Because the tax consequences of each entity begins with its income or loss posture.
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BEPS Multilateral Agreement
By McDermott Will & Emery on Dec 6, 2016
Posted In Transfer Pricing Resource, Uncategorized
The most recent element of the ongoing global dispute resolution process is the late November 2016 release of the so-called multilateral instrument (MLI), a cornerstone of the base erosion and profit shifting (BEPS) project. It is an ambitious effort of the Organization for Economic Cooperation and Development (OECD) to impose its will on as many...
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Transfer Pricing Compensating Adjustments: Another IRS Loss
By McDermott Will & Emery on Dec 5, 2016
Posted In IRS Guidance, Transfer Pricing Resource, Uncategorized
Following the resolution of a transfer pricing adjustment, there are inevitable compensating adjustment issues to be addressed. Revenue Procedure 99-32 provides the guidelines. A frequent issue concerns whether the “account” that can be elected constitutes “related-party indebtedness” for other purposes of the Internal Revenue Code. One issue has related to the long-since expired provisions of Section...
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IRS Changes Course on Characterization of Termination Fees
By McDermott Will & Emery and Roger J. Jones on Dec 5, 2016
Posted In IRS Guidance, Uncategorized
Termination fee clauses are commonly incorporated in merger agreements to compensate a party for time and expenses incurred in the event that the deal is not consummated. Where the merger is terminated by one party, the clause generally requires either the target to pay the acquirer a termination fee (if the target terminates), or the...
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