Lowell D. Yoder
Subscribe to Lowell D. Yoder's PostsLowell D. Yoder focuses his practice on cross-border mergers and acquisitions, global tax planning and international tax controversies, representing high-tech, pharmaceutical, e-commerce, financial, consumer and industrial companies. He advises on tax-efficient structuring of cross-border acquisitions, dispositions, financings, internal reorganizations and joint ventures, as well as tax-beneficial planning for intangible holding companies, global supply chains and multi-jurisdictional service arrangements. Lowell also represents clients before the Internal Revenue Service (IRS), handling audits and obtaining tax rulings. He works with an extensive network of lawyers worldwide, developing tax-favorable transactional and operational cross-border structures. Lowell is the global head of McDermott's Tax Practice. Read Lowell Yoder's full bio.
Whirlpool Update: New Filings and Distribution for Supreme Court Conference
By Lowell D. Yoder, David G. Noren, Elizabeth C. Lu and Jonathan D. Lockhart on Nov 4, 2022
Posted In Appellate Courts, Court Procedure Matters, Trial Courts
On November 2, 2022, the Supreme Court of the United States announced that the case of Whirlpool Financial Corp., et al., Petitioners v. Commissioner of Internal Revenue, No. 22-9, has been distributed for consideration at its upcoming conference on November 18, 2022. Meaning, we should have an answer in the next few weeks as to...
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IRS Releases Memorandum Regarding Advance Payments of Section 367(d) Inclusions
By Elizabeth C. Lu, Caroline H. Ngo, Michael J. Wilder and Lowell D. Yoder on Oct 19, 2022
Posted In IRS Guidance
On September 23, 2022, the Internal Revenue Service (IRS) released a memorandum (AM 2022-003) concluding that taxpayers cannot make advance payments of section 367(d) inclusions except in the limited situation in which the US transferor receives boot in connection with the initial transfer of intangible property (IP) to a foreign corporation. The memorandum is relevant...
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Code Sec. 367(a) and (d) After the TCJA
By Lowell D. Yoder on Jan 3, 2020
Posted In IRS Guidance, Uncategorized
Code Sec. 367(a) and (d) subject to taxation a transfer of tangible and intangible property by a U.S. person to a foreign corporation in an otherwise tax-free transaction. While for many years exceptions were provided for transfers of certain types of property, the Tax Cuts and Jobs Act (“TCJA”) amended Code Sec. 367, removing the...
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International Tax Journal: Code Sec. 956 Proposed Regs
By Lowell D. Yoder on Mar 8, 2019
Posted In IRS Guidance, Uncategorized
Code Sec. 951(a)(1)(B) requires a US shareholder of a controlled foreign corporation (CFC) to include in its gross income “the amount determined under section 956 with respect to such shareholder for such year….” This amount generally is the shareholder’s pro rata share of the average of the amounts of US property held by the CFC...
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Proposed Regulations under Section 956 Provide Benefits for Corporate Taxpayers
By Bradford E. LaBonte, Lowell D. Yoder and Timothy S. Shuman on Nov 20, 2018
Posted In IRS Guidance, Tax Reform, Uncategorized
On October 31, 2018, the Internal Revenue Service (IRS) and US Department of the Treasury (Treasury) released proposed regulations (REG-114540-18) (the Proposed Regulations) that would prevent, in many cases, income inclusions for corporate US shareholders of controlled foreign corporations (CFCs) under section 956. As a result, among other considerations, the Proposed Regulations could significantly expand...
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Bloomberg Tax: Prop. GILTI Regs: ‘Tested Income’
By Lowell D. Yoder on Nov 15, 2018
Posted In IRS Guidance, Tax Reform, Uncategorized
The Treasury and IRS recently issued proposed regulations under §951A.1 The regulations provide rules for determining the amount of the inclusion in a U.S. shareholder’s gross income of global intangible low-taxed income (GILTI). The GILTI inclusion amount is the aggregate of a U.S. shareholder’s pro rata shares of tested income less tested losses from each...
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Tax Reform Insight: US Tax Costs Significantly Reduced on Sale of CFC Stock
By Jonathan D. Lockhart, Lowell D. Yoder, Michael J. Wilder and Timothy S. Shuman on Sep 13, 2018
Posted In IRS Guidance, Tax Reform, Uncategorized
Following the 2017 Tax Act, the US tax costs to a corporate US shareholder that sells stock in a controlled foreign corporation (CFC) are significantly reduced. Beginning in 2018, the amount of gain will be generally less than in prior years and most or all such gain will frequently not be subject to any US...
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Tax Reform Insight: IRS Slams Door on Refunds/Credits for Taxpayers with Section 965 Transition Tax Liability
By David G. Noren, Lowell D. Yoder, Sandra P. McGill and McDermott Will & Emery on Aug 21, 2018
Posted In IRS Guidance, Tax Reform, Uncategorized
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 installment payments, any overpayments of 2017 tax liabilities cannot be used as credits for 2018 estimated tax payments or refunded, unless...
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Tax Reform Insight: Eligibility Requirements for Reduced Tax Rate on FDII for Royalties
By David G. Noren, Elizabeth Chao and Lowell D. Yoder on Jul 18, 2018
Posted In Tax Reform, Uncategorized
A domestic corporation’s royalty income derived in connection with business conducted outside the United States generally is eligible for the reduced 13.125 percent effective tax rate on foreign derived intangible income (FDII). To qualify, the licensee must be a foreign person, and the intangible property must be used outside the US for the ultimate benefit...
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Tax Reform Insight: New Foreign Tax Credit Rules May Warrant Restructuring Foreign Branches
By Damon M. Lyon, Evan Walters and Lowell D. Yoder on Jun 27, 2018
Posted In IRS Guidance, Tax Reform, Uncategorized
The 2017 Tax Act added a separate foreign tax credit limitation category, or basket, for income earned in a foreign branch. As a result, certain US groups may be limited in their ability to use foreign income taxes paid or accrued by a foreign branch as a credit against their US federal income tax liability....
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