| Type | Title | Practice Area | Date |
|---|---|---|---|
| Law Alerts | Historic IRS Proposal Would Force Corporate Taxpayers to File Detailed "Road-Map" for Uncertain Tax Positions | Tax - Federal Income, State and Local, | 2010-01-29 |
| Author(s): David Strong, | |||
| Abstract: On January 26, 2010, IRS Commissioner Douglas Shulman announced a sweeping and unprecedented proposal that would require corporate taxpayers to disclose their “uncertain tax positions” on a new schedule that would be attached to their federal tax returns. The schedule would be required to accompany a corporate taxpayer’s Form 1120, and would require a concise description of any uncertain tax positions as well as information about their magnitude. The IRS is also evaluating whether to seek legislation that would impose a penalty for failure to file the schedule or to make adequate disclosure. The general background and intended scope of the IRS’ proposal is set forth in Announcement 2010-9, and the IRS is seeking comments on the proposal by March 29, 2010. View PDF. | |||
| Law Alerts | Recent Changes to Federal Net Operating Loss Carryback Provisions Create Potential Year-End Planning Opportunities for Taxpayers | Real Estate, Development, Land Use and Financing, Tax - Federal Income, State and Local, | 2009-11-16 |
| Author(s): Timothy Glasgow, David Strong, Adam Sher, | |||
| Abstract: On November 6, 2009, President Obama signed the Worker, Homeownership, and Business Assistance Act of 2009 (the “Act”). Among other things, the Act extends the period over which a net operating loss (“NOL”) may be carried back for tax years beginning in or ending in either 2008 or 2009. View PDF. | |||
| Law Alerts | IRS Makes Withholding Tax on Cross-Border Payments a Tier I Compliance Issue | Tax - Federal Income, State and Local, | 2009-06-08 |
| Author(s): Paul Smith, Travis Logghe, | |||
| Abstract: On May 26, 2009, the IRS amplified its initiative to enforce withholding tax obligations by designating withholding tax on cross-border payments as a Tier I compliance issue. This designation reflects a determination by the IRS’s Large and Mid-Size Business Division (the “LMSB”) that cross-border withholding issues should be given priority in directing relevant technical guidance to field personnel. Tier I issues are of high strategic importance to the LMSB and have a significant impact on one or more industries. Tier I issues can include areas involving a large number of taxpayers, significant dollar risk, and substantial compliance risk or visibility. According to IRS Commissioner Douglas Shulman: “The tier issue process will provide the needed organizational priority and coordination to ensure taxpayer compliance with the U.S. withholding tax provisions.” View PDF. | |||
| Law Alerts | IRS Offers a Temporary Reduced Penalty Structure for Voluntary Disclosure of Offshore Accounts | Tax - Federal Income, State and Local, Private Client Services, | 2009-05-20 |
| Author(s): Travis Logghe, | |||
| Abstract: “My goal has always been clear — to get those taxpayers hiding assets offshore back into the system.” - IRS Commissioner Douglas Shulman on the issue of offshore income. Commissioner Shulman’s goal not only echoes the long-standing position of the IRS, it has been pursued ambitiously in the IRS’s recent effort to crack down on U.S. taxpayers hiding assets overseas. Fortunately for taxpayers, the IRS has recently implemented new disclosure guidelines and a penalty structure intended to encourage taxpayers to voluntarily disclose U.S. assets held in offshore accounts. The program offers those who comply with the chance to avoid criminal prosecution and a barrage of significant penalties. View PDF. | |||
| Law Alerts | First Circuit Affirms Textron and Provides Some Guidance Regarding Protections for Tax Accrual Workpapers in Light of FIN 48 | Tax - Federal Income, State and Local, | 2009-02-09 |
| Author(s): | |||
| Abstract: Tax accrual workpapers provide substantiation for a taxpayer’s financial statement reserves. These documents are very sensitive because they identify a company’s own measure of issues on a tax return where the tax laws are unclear. It is typical for tax accrual workpapers to be prepared by a company’s own in-house tax counsel or accountants, and the issues on the return will be identified by their likelihood of success, if the IRS were to litigate the issue. Because tax accrual workpapers are so sensitive, the government’s pursuit of tax accrual workpapers has been a long-standing controversy between taxpayers and the IRS. View PDF. | |||
| Publications | HRO Leads ABA Tax Section’s Comments on Series Limited Liability Companies | Tax - Federal Income, State and Local, | 2009-01-05 |
| Author(s): | |||
| Abstract: In recent years various states and foreign jurisdictions have enacted statutes that permit the formation of business entities in which the assets are divided into “series” that have separate business or investment purposes, owners and management. Limited liability companies (“LLCs”) that permit series are one of the more popular forms of such business entities. The advantage of series is that they allow for segregation of liabilities without forming multiple LLCs – this results in cost savings. One of the impediments, however, to increased use of series LLCs is the lack of certainty in how series should be treated for tax purposes. HRO recently led the ABA Tax Section’s comments on that question. The ABA Tax Section’s comments were submitted to the Internal Revenue Service in response to IRS Notice 2008-19. Any questions concerning the ABA Tax Section’s comments may be directed to Tom Yearout at 303-866-0297. View PDF. | |||
| Law Alerts | IRS Touts a Significant Win in a Recent Son of Boss Tax Shelter Case | Tax - Federal Income, State and Local, | 2008-08-12 |
| Author(s): David Strong, | |||
| Abstract: On July 31, 2008, the United States Court of Federal Claims found Stobie Creek Investments LLC to be a Son of Boss tax shelter which was created to avoid tax on $204 million in capital gain realized on the sale of a family's business. The case represents a significant loss for those tracking the Son of Boss cases involving foreign exchange digital option transfers (FXDOTs) and for other types of tax disputes relating to investment strategies which are being challenged by the Service on economic substance grounds. View PDF. | |||
| Law Alerts | Colorado District Court Reaches Taxpayer-Favorable Result in Recent Tax Shelter Case | Tax - Federal Income, State and Local, | 2008-05-06 |
| Author(s): | |||
| Abstract: In Sala v. United States (decided April 22, 2008), Judge Lewis Babcock of the U.S. District Court for the District of Colorado upheld an individual taxpayer's claimed loss of over $60 million in connection with a series of complex transactions involving foreign currency option contracts. The case represents a notable defeat for the Internal Revenue Service ("IRS") in its current "Son of BOSS" litigation efforts being pursued nationwide. The case also creates a potentially favorable precedent within the Colorado District Court for future "Son of BOSS" (bond option sales strategy) cases and for other types of tax disputes relating to tax-advantaged transactions and investment strategies. Readers of this alert should feel free to contact one of the HRO tax partners listed in the margin to discuss the Sala case and its potential implications for tax litigation matters. View PDF. | |||
| Law Alerts | Foreign Bank Account Reports are Due June 30, 2008 - Severe IRS Penalties Will Apply for Failing to File an FBAR | Tax - Federal Income, State and Local, | 2008-05-05 |
| Author(s): | |||
| Abstract: The IRS has announced that it is actively pursuing taxpayers who fail to report their foreign bank accounts to the Service. A Foreign Bank Account Report (FBAR) must be filed annually by each person having an interest in, or a signature authority over, any financial account in a foreign country, if the aggregate value of these accounts exceeds $10,000 at any time during the calendar year. Congress has now increased the penalties for the non-willful failure to file the FBAR to a $10,000 minimum. For a willful violation of the FBAR reporting requirements, the penalty is now a fine equal to the greater of $100,000 or 50% of the amount of the transaction or of the balance of the account at the time of the offence. The attached HRO Alert discusses the rules which now apply to US taxpayers who are required to file annual FBARs to the IRS by June 30, 2008. The attached Alert was authored by G. Michelle Ferreira, a partner in HRO's tax department. View PDF. | |||
| Law Alerts | Tax Shelter Penalties and the Hippocratic Oath | Tax - Federal Income, State and Local, | 2008-03-04 |
| Author(s): | |||
| Abstract: Tax Shelter Penalties and the Hippocratic Oath: Your accountant or tax attorney may not be able to apply a Band-Aid and stop the IRS from bleeding you with increased penalties which apply to tax shelters. The attached HRO Alert outlines the significant penalties which will now apply to questionable tax positions taken on federal and state tax returns. Taxpayers can no longer assume that only tax and interest will apply to tax shelters. Increased IRS and state tax agencies' audits of tax shelters will cause your bank account to hemorrhage. View PDF. | |||
| Law Alerts | IRS Makes Some Tax-Free Deals Easier to Accomplish - September, 2005 | Tax - Federal Income, State and Local, | 2005-09-01 |
| Author(s): | |||
| Abstract: View PDF. | |||
| Law Alerts | 2004 Tax Legislation - November, 2004 | Tax - Federal Income, State and Local, | 2004-11-01 |
| Author(s): | |||
| Abstract: International Provisions * The Working Families Tax Relief Act of 2004 * The American Jobs Creation Act of 2004 View PDF. | |||