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.
Tax Reform Insight: IRS Doubles Down on Retention of 2017 Overpayments to Satisfy Future Section 965 Installment Payments
By David G. Noren, Lowell D. Yoder, Sandra P. McGill and McDermott Will & Emery on Jun 19, 2018
Posted In IRS Guidance, Tax Reform, Uncategorized
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 installment payments, any overpayments of 2017 tax liabilities cannot be used as credits for 2018 estimated tax payments or refunded, unless and until the overpayment...
Continue Reading
IRS Holding 2017 Overpayments to Satisfy Future Section 965 Liabilities
By David G. Noren, Lowell D. Yoder and Sandra P. McGill on May 9, 2018
Posted In IRS Guidance, Uncategorized
In a surprising development, the Internal Revenue Service (IRS) has announced that if a taxpayer’s 2017 payments, including estimated tax payments, exceed its 2017 net income tax liability described under Internal Revenue Code (Code) Section 965(h)(6)(A)(ii) (its net income tax determined without regard to Code Section 965) and the first annual installment (due in 2018)...
Continue Reading
Expansion of Subpart F under the Tax Reform Act
By David G. Noren, Elizabeth Chao and Lowell D. Yoder on Feb 8, 2018
Posted In Tax Reform, Uncategorized
Under Subpart F, certain types of income and investments of earnings of a foreign corporation controlled by US shareholders (controlled foreign corporation, or CFC) are deemed distributed to the US shareholders and subject to current taxation. The recent tax reform legislation (Public Law No. 115-97) increased the amount of CFC income currently taxable to US shareholders,...
Continue Reading
The New Base Erosion Minimum Tax
By David G. Noren, Jonathan D. Lockhart and Lowell D. Yoder on Jan 19, 2018
Posted In Tax Reform, Uncategorized
The recently enacted 2017 tax reform act imposes a new “base erosion and anti-abuse tax” (BEAT) on large corporations. The BEAT operates as a limited-scope alternative minimum tax, applied by adding back to taxable income certain deductible payments made to related foreign persons. Although positioned as an anti-abuse rule, the BEAT presents challenges for a...
Continue Reading
IRS Releases Several Transfer Pricing Directives
By Lowell D. Yoder and McDermott Will & Emery on Jan 17, 2018
Posted In IRS Audits, IRS Guidance, Transfer Pricing Resource, Uncategorized
The Internal Revenue Service (IRS) Large Business and International (LB&I) Division recently released several directives (LB&I Directives) geared toward transfer pricing. LB&I acknowledges that significant LB&I resources are devoted to transfer pricing issues, and such issues make up a substantial portion of the LB&I inventory. It appears that these directives are aimed at ensuring that...
Continue Reading
Tax Reform Conference Committee Reaches Agreement
By McDermott Will & Emery, David G. Noren, Lowell D. Yoder, Sandra P. McGill and Timothy S. Shuman on Dec 18, 2017
Posted In IRS Guidance, Tax Reform, Uncategorized
A House-Senate conference committee has reached agreement on a compromise version of the Tax Cuts and Jobs Act, which includes substantial changes to the corporate and international business taxation rules. The stage now appears to be set for final passage and enactment of the legislation before the end of 2017. Continue Reading.
Continue Reading
The IRS Has Never Won a Subpart F Sales or Services Case
By Lowell D. Yoder on Nov 22, 2017
Posted In Appellate Courts, IRS Appeals, Trial Courts, Uncategorized
The IRS has never won a single litigated case arguing for foreign base company sales income (and has never litigated a foreign base company services income case). Courts have consistently rejected the government’s arguments to expansively apply the definition of Subpart F sales income in order to carry out asserted congressional intent. While the courts...
Continue Reading
Statutes of Limitation in the International Tax Context
By Elizabeth Chao and Lowell D. Yoder on Oct 19, 2017
Posted In IRS Audits, IRS Guidance, Trial Courts, Uncategorized
As most taxpayers know, under Internal Revenue Code (Code) Section 6501(a), the Internal Revenue Service (IRS) generally has three years after a tax return is filed to assess any additional tax. However, Code Section 6501 provides several exceptions to this rule, including but not limited to the following. False or fraudulent returns with the intent...
Continue Reading
Final Code Sec. 367(a) and (d) Regulations
By Lowell D. Yoder on Mar 7, 2017
Posted In IRS Guidance, Tax Refunds, Uncategorized
“The IRS and Treasury recently issued final regulations under Code Sec. 367(a)and (d) that make a monumental change in how those provisions have applied since they were enacted over 30 years ago. For the first time, the regulations subject to taxation the otherwise tax free transfer of foreign goodwill and going concern value by a...
Continue Reading
Final §385 Regulations Apply to CFC Loans to Domestic Corporations
By Lowell D. Yoder on Mar 3, 2017
Posted In IRS Guidance, Tax Refunds, Uncategorized
The Treasury and IRS recently issued final regulations under §385 that reclassify certain indebtedness as equity. While the final regulations have limited application to U.S.-based multinationals, they do apply to obligations of domestic corporations to related controlled foreign corporations (‘‘CFCs’’). It is critical to avoid such debt being reclassified as stock under the regulations because...
Continue Reading
