On March 19, 2013, the Department of Treasury and IRS issued final regulations under Section 367(a)(5) concerning transfers of property by a domestic corporation to a foreign corporation in an exchange described in Section 361. The regulations replace proposed regulations issued in 2008 and, in large part, adopt the proposed regulations. In response to taxpayer comments, certain modifications were made to clarify the application of Section 367(a)(5). However, other proposed amendments intended to clarify and streamline the regulations were not adopted, leaving a few traps for the unwary. A few of the taxpayer friendly and not-so-friendly updates are discussed here.

Emboldened by their fellow states, the latest trend for states attempting to generate more tax revenue seems to be new legislative proposals adding affiliate and click-through nexus rules.

The IRS recently issued finalized Treasury Regulation 1.761-3 on the tax treatment of noncompensatory options issued by partnerships in circumstances unrelated to the performance of services.

With forecasts of $60 to $80 billion in issuances for 2013, collateralized loan obligation (CLO) managers will focus on new issuances and attracting new investors. To accomplish this, existing and prospective CLO collateral managers need to think about their transition plan from the closing of the CLO to the oversight phase. Doing so will ensure enough bandwidth to monitor closed deals while supporting new issuances, all of which provide reassurance to investors.

Generally, partnerships whose interests are traded on an established exchange (or are readily tradable on a secondary market), known as publicly traded partnerships, are not entitled to the favorable pass-through treatment afforded to other non-publicly traded partnerships.

With the 2012 U.S. election in the rear-view mirror and the global economy sputtering along with modest projections for growth, now is a good time to dust off your foreign tax credit (FTC) calculations and get "back to basics" for 2013 and beyond.

Business restructurings achieve economic benefits through a broad array of strategies. Cost savings and operational improvements are often key drivers. The primary mechanisms used to achieve the company's goals involve the redeployment of functions, assets or risks. Therefore, a restructuring exercise may offer significant tax planning opportunities through transfer pricing.