Software-as-a-Service (SaaS)1 is no longer an emerging technology segment. It’s big and getting bigger – and here to stay. The technology research and advisory firm IDC predicts that spending on private cloud services will grow from $9 billion in 2013 to $24 billion in 20162 – and public IT cloud services spending will grow from $47 billion in 2013 to $107 billion in 2017.3

This edition of Tax Advisor Weekly is a follow-up to an article previously posted, “Entity Simplification: Not So Simple (But Likely Beneficial).”

As we noted, research that is reimbursed by your customers can qualify if, pursuant to the contract, you are economically at risk and you retain substantial rights in the research conducted.

Merger and acquisition cycles are fueled by many forces, not least among them being the strategies promoted by activist investors and investment banking advisors. Once in favor, conglomerates dotted the industrial landscape. However, within the past several years, the scale, adjacent market synergies and potential integration benefits of an aggregation strategy have been counter-balanced by arguments for better management focus and clearer market / equity analyst communications.

One of the few recent taxpayer-favorable decisions could have a significant impact on more than just homebuilders in similar situations.

Executive compensation continues to be a hot topic for politicians, shareholders, shareholder advisory firms and the media. A major point of contention for these groups revolves around benefits provided to executives in connection with a change in control, commonly called "golden parachutes."

The increased focus of the UK Tax Administration (HMRC) on transfer pricing has led to a noticeable increase in the number of businesses seeking the certainty of transfer pricing arrangements through an Advance Pricing Agreement (APA) or an Advanced Thin Capitalisation Agreement (ATCA).

Generally, the sale or exchange of an interest in a partnership is treated as the sale or exchange of a capital asset, and therefore resulting gains and losses are capital (IRC Section 741). This is fine if you recognize gains, but not so great for the losses. What if the loss on the disposition of a partnership interest could be ordinary? Would you have a different feeling about triggering the loss?

It remains hard to say whether the IRS will challenge your transaction by asserting the economic substance doctrine, because the IRS said in December it won’t be issuing anticipated further guidance or an angel list.

The Internal Revenue Service recently published draft proposed guidance on the competent authority process in the form of Notice 2013-78.

2014 will be the year to be a multinational enterprise in the UK. Corporation tax rates are on the decline to the lowest within the G8, and general economic growth has returned.

The Information Document Request (IDR) process that we have all followed in a typical IRS audit in the past has recently undergone some substantial changes that will require an evaluation of your current process for dealing with such requests and managing the overall audit process.

A common refrain heard through the course of one’s life is that you should always look out for your own best interests, because no one else will.

The release of the much anticipated final “repair” regulations (Treasury Decision 9636) in September probably stands as the most significant federal tax development of 2013. At over 200 pages in length, the regulations cover a gamut of capitalization questions that are expected to affect nearly every taxpayer.