McDermott Will & Emery
Subscribe to McDermott Will & Emery's PostsDebt-Equity Regulations – A Year in Review
By McDermott Will & Emery on Dec 29, 2016
Posted In IRS Guidance, Uncategorized
Section 385(a) provides that Treasury is authorized to issue regulations to determine whether an interest in a corporation is to be treated for purposes of the Code as stock or indebtedness. On April 4, 2016, Treasury and the Service issued proposed regulations (Proposed Regulations, found here) under section 385 that treat certain purported debt between...
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Graev v. Commissioner: Tax Court Divided on Penalty Procedural Rules
By Jeffrey M. Glassman and McDermott Will & Emery on Dec 12, 2016
Posted In Trial Courts, Uncategorized
In tax litigation, there are often (at least) two important categories of issues to consider: (1) substantive; and (2) procedural. A great deal of tax litigation will be focused on the substance of the Internal Revenue Service’s (IRS) adjustments (e.g., was a taxpayer entitled to a particular deduction?). But the procedural aspects should not be...
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CDFI Fund Announces $7 Billion Allocation of New Markets Tax Credits
By K. Christy Vouri-Misso and McDermott Will & Emery on Dec 9, 2016
Posted In Uncategorized
On November 17, 2016, the US Department of the Treasury’s Community Development Financial Institutions Fund (CDFI Fund) announced the largest single round award of New Market Tax Credit (NMTC) allocations since the program’s creation in 2001. One hundred twenty organizations, headquartered in 36 states, the District of Columbia and Puerto Rico, were awarded a total...
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Ethics in Tax Practice
By McDermott Will & Emery on Nov 21, 2016
Posted In Court Procedure Matters, Privilege and Non-Disclosure, Uncategorized
On November 17, 2016, John Woodruff and Laura Gavioli gave a presentation to the Houston Chapter of the Tax Executives Institute (TEI) regarding the contours of privilege and work-product protection for in-house tax practitioners. Joining them on the panel were Paul Broman of BP and Susan Musch of Sasol. The group addressed potential waiver concerns...
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IRS Identifies Certain 831(b) Captives As “Transactions Of Interest”
By Kristen E. Hazel and McDermott Will & Emery on Nov 11, 2016
Posted In IRS Guidance, Uncategorized
In Notice 2016-66, the Treasury Department and the Internal Revenue Service (IRS) identified a particular § 831(b) “micro-captive” transaction as a “transaction of interest” for purposes of § 1.6011-4(b)(6) of the Regulations and §§ 6111 and 6112 of the Internal Revenue Code. The notice also alerts persons involved in such transactions to certain responsibilities and...
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Final Section 385 Regulations May Pose Compliance Burdens and Raise Potential Challenges
By McDermott Will & Emery on Nov 3, 2016
Posted In IRS Guidance, Privilege and Non-Disclosure, Uncategorized
On November 2, 2016, we participated in a panel discussion at TEI’s Houston Global Tax Symposium regarding the effects of the newly-finalized section 385 regulations. Of interest from a controversy perspective, we discussed the potential compliance burdens and privilege concerns raised by the new documentation requirements in the rules, and the potential problems with the...
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IRS and Treasury Release Update to 2016-2017 Priority Guidance Plan
By K. Christy Vouri-Misso and McDermott Will & Emery on Nov 2, 2016
Posted In IRS Guidance, Settlements, Uncategorized
The US Department of the Treasury and Internal Revenue Service (IRS) issue Priority Guidance Plans each year to identify and prioritize the tax issues they believe should be addressed through regulations, revenue rulings, revenue procedures, notices and other published administrative guidance. On October 31, 2016, the IRS and Treasury released the first quarter update to...
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SALT Implications of Final Section 385 Debt-Equity Regulations
By McDermott Will & Emery on Oct 27, 2016
Posted In IRS Guidance, Uncategorized
The recently released regulations under Internal Revenue Code Section 385, addressing the circumstances under which related company debt will be classified as equity for federal income tax purposes, will have a significant impact on not only federal taxes but also on state and local taxes. For a more detailed discussion of these implications by our...
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IRS Updates Rules Regarding Appeals Conferences
By Kevin Spencer, Jean A. Pawlow, Bradford E. LaBonte, McDermott Will & Emery, Robin L. Greenhouse and McDermott Will & Emery on Sep 22, 2016
Posted In IRS Appeals, IRS Guidance, Settlements, Uncategorized
The Internal Revenue Service (IRS) has revised the Internal Revenue Manual (IRM) regarding Appeals Conferences. Below is a summary of material changes to IRM 8.6.1, effective October 1, 2016: The IRM was revised to reflect that most conferences in Appeals will be conducted by telephone. The revision also provides guidance for when in-person conferences are appropriate...
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Privileged Materials Provided Without Taxpayers’ Consent Should Not Waive Privilege
By McDermott Will & Emery and McDermott Will & Emery on Sep 16, 2016
Posted In IRS Audits, IRS Guidance, Privilege and Non-Disclosure, Uncategorized
In today’s tax environment and with the potential monetary awards to whistleblowers under Internal Revenue Code (Code) Section 7623, taxpayers are facing the increased possibility that their confidential and privileged materials may be provided to the Internal Revenue Service (IRS) without the taxpayer’s consent. This raises serious privilege and ethical issues related to the attorney-client,...
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