In a noteworthy change of events from recent years, this Summer saw the U.S. Senate approve and the President ratify four income tax treaty amendments (protocols): Luxembourg, Japan, Spain, and Switzerland. These protocols were negotiated several…

Background When an employee earns wages, both the employer and the employee are liable for a portion of Social Security taxes and Medicare taxes (collectively referred to as “FICA” taxes) on the compensation. Employees owe 6.2 percent for Social…

Article featured on Thompson Reuters' Taxnet Pro, August 2019. As we enter the height of the 2018 compliance season, many taxpayers are wrestling with the nuances of the Tax Cuts and Jobs Act for the first time. They are, in many cases, brought…

The sweeping national trend toward the relaxation of cannabis prohibition laws at the state level continues to gain momentum in 2019, with Illinois recently becoming the 11th state to legalize recreational usage. Over the past several months, even…

An extended version of this article has been featured by AltAssets, September 19, 2019, and can be viewed with a subscription here. Having been involved in infrastructure for over 20 years, it is hard to recall a time when there has been more…

On June 7, 2019, the U.S. Court of Appeals for the Ninth Circuit again reversed the 2015 decision of the Tax Court (Altera Corp v. Commissioner) following deliberation of a reconstituted panel. Background In our article, “U.S. Tax Alert: Big…

The U.S. Department of Labor (“DOL”) continues a regulatory agenda that puts the valuation of Employee Stock Ownership Plans (“ESOPs”) in the spotlight. As a result, ESOP fiduciaries need to be cognizant of the impact of the reduction in corporate…

In a Tax Court petition filed October 22, 2018, Shiloh (“Shiloh”) Industries Inc., a global supplier of automotive parts and a designer and engineer of precision tools, dies, welding, and assembly equipment, is disputing the Internal Revenue Service…

On Friday, June 14 (“Flag Day”), the Internal Revenue Service (“IRS”) and the Treasury Department issued several articles of guidance under the Tax Cuts and Jobs Act of 2017 (TCJA). This includes final, temporary, and proposed regulations (…

The Protecting Americans from Tax Hikes Act of 2015 (“PATH Act”) provided a tax exemption from gain or loss on certain dispositions of U.S. real property interests (“USRPIs”) for Qualified Foreign Pension Funds (“QFPFs”) under section 897(l) of the…

Key guidance for foreign partners holding interests in partnerships that are engaged in a U.S. trade or business (USTB) was released on May 7, 2019, in the form of proposed regulations under Internal Revenue Code Section 1446(f). Section 1446(f)…

The U.S. economy has picked up momentum in the last decade and has maintained a steady growth rate. As a result, the number of companies filing for bankruptcy has declined. Despite these more favorable economic conditions, some industries such as…

For anyone working in a partnership, making the leap from employee to partner is often a great career accomplishment. But from a tax standpoint, the achievement brings with it a number of new—and significant—tax considerations, particularly in…

The Internal Revenue Service (IRS) Advance Pricing and Mutual Agreement (APMA) program announced recently that it has developed a “functional cost diagnostic model” (FCDM), an Excel-based program, to facilitate its review of certain Advance Pricing…

As taxpayers near the end of income tax provision and tax return extension calculations, they may be thinking they have reached the end of the learning curve in terms of the impact of the Tax Cuts and Jobs Act (TCJA). While tax departments were busy…

On Monday, March 4th, the U.S. Treasury and IRS released proposed regulations under IRC section 250, a new section of the Code added by the Tax Cuts and Jobs Act of 2017 (TCJA). Section 250 generally provides domestic corporations with deductions…

“You can’t change the past.” We don’t know who owns the copyright to that saying. But most of us have probably infringed on that intangible property (IP) right numerous times, and a quick Google search will expose dozens of famous people for that…

Alvarez & Marsal's (A&M’s) Compensation and Benefits Practice is pleased to share the results of its 2019 Oil and Gas Exploration & Production (E&P) Incentive Compensation Report. Incentive compensation is an integral part…

On November 14, 2018, the IRS issued much-awaited proposed regulations relating to hardship distributions from 401(k) plans. The new guidance implements changes to the 401(k) plan hardship distribution provisions that were adopted as part of the Tax…

The 2017 Tax Cuts and Jobs Act which reduced the U.S. corporate federal income tax rate to 21 percent and created an incentive for companies to repatriate foreign earnings, also helped boost interest in domestic investment. The U.S. became a more…