On August 1, the IRS issued its first set of proposed regulations under the Tax Cuts and Jobs Act of 2017 (TCJA). These regulations interpret and apply the Sec. 965 transition tax, which levies a one-time tax on deferred earnings of U.S.-owned…

The so-called Tax Cuts and Jobs Act (TCJA), enacted in December 2017, made major changes in the tax treatment of both domestic and foreign corporations. The TCJA did not make any changes directly to Section 382, which provides limitations on the use…

Last July, foreign investors rejoiced at the Tax Court’s ruling in Grecian Magnesite Mining, Industrial & Shipping Co. SA v. Commissioner, which held that gains or losses on sales of partnership interests should be treated as gains or losses on…

Statutorily mandated reporting between global financial institutions and their local governments regarding individual financial account information is at an all-time high and unlikely to diminish any time soon. The possibility that a foreign bank…

1980’s movie lore can be instructive. The high point in classic ‘80’s movies is often a house party grown to enormous proportions, at the height of which the authorities arrive to break it up. The Quill physical presence rule will likely be…

Update: On June 21, 2018, the U.S. Supreme Court issued an opinion (South Dakota v. Wayfair Inc., et al, 585 U.S. (2018)) holding that a physical presence in a state is no longer necessary for a state to require an out-of-state retailer to collect…

Numerous states offer a research and development (“R&D”) tax credit. Companies can, therefore, claim credits for the same expenditures in different jurisdictions. Similar to enterprise zone credits and job training credits, the purpose behind…

Introduction On December 22, 2017, the United States Congress enacted Public Law 115-97, known as the “Tax Cuts and Jobs Act” (“TCJA”), which has been noted as the largest overhaul to the U.S. Internal Revenue Code (“IRC”) since 1986. As a result…

Introduction As companies are currently preparing for second quarter releases, estimated tax payments and cash tax planning, we are feverishly modeling the impact of Global Intangible Low-Taxed Income (GILTI), revealing several glitches and…

Cost of Services are Out, Services Cost Method is In For companies in the services industry, the Base Erosion and Anti-Abuse Tax (“BEAT”) may feel like a dominating force that’s impossible to overcome. Even though the BEAT applies broadly to large…

Companies with known underpaid taxes can accrue a significant amount of delinquent interest and penalties if the unpaid tax amount is substantial and has been increasing over a long period of time. Therefore, when a company becomes aware that a…

With all the changes associated with the Tax Cuts and Jobs Act of 2017, one pleasant constant for taxpayers is the IRC 41 Credit for Increasing Research Activities, popularly known as the R&D Tax Credit. While taxpayers can continue to rely upon…

As April 17 quickly approaches, the stakes are higher than ever as many companies face head-on the new transition tax on unrepatriated foreign earnings, or, as we have affectionately come to know it as, the toll charge. The IRS recently affirmed in…

In the first edition of our ongoing series on tax reform’s most memorable acronym, GILTI, we discussed how expense allocation under IRC Sec. 861 could leave many unsuspecting taxpayers exposed to incremental tax on their foreign earnings. Despite…

We are nearly two months into the new tax regime, and we in the tax community are still wrapping our heads around the complex and far-reaching new provisions. The Republicans’ goal of a simplified, territorial system was clearly lost on the drafters…

Alvarez & Marsal’s Compensation and Benefits Practice recently released its 2018 study on compensation practices in the oil and gas oilfield services (OFS) industry. Our study analyzed the total value of CEO and CFO compensation packages, annual…

Amid the flurry of tax reform activity that’s consuming taxpayers and their advisors, it may be easy to miss some new reporting obligations beginning in 2018 that were not part of the tax reform legislation. This article focuses on a particularly…

Alvarez & Marsal’s Compensation and Benefits Practice recently released its 2018 study on compensation practices in the oil and gas exploration and production (E&P) industry. Our study analyzes the total value of CEO and CFO compensation…

With the new tax bill now official, companies making acquisitions that are asset purchases (or treated as asset acquisitions for tax purposes) will want to pay close attention to the agreed-upon purchase price allocation. Given the ability to…

During its January 10, 2018 board meeting, the Financial Accounting Standards Board (FASB) discussed the application of tax reform as it relates to ASC 740, Accounting for Income Taxes. Included in the discussion were items such as tax effects…