By Jonathan Prokup The Third Circuit yesterday issued a harshly worded rebuke to the taxpayer in Merck v. United States, No. 10-2775 (Jun. 20, 2011), affirming the District Court’s decision that the taxpayer’s swap-and-assign transaction was really a disguised loan that gave rise to Subpart F income. (See TaxProfBlog for a link to the opinion.)
Archive for the ‘Corporate’ category
FBAR Penalties: The IRS Lays Down The Law On Quiet Disclosures
May 23, 2011By Jonathan Prokup As part of its current Offshore Voluntary Disclosure Initiative (“OVDI”), the IRS is strongly encouraging taxpayers against making so-called “quiet” disclosures, in which taxpayers file amended tax returns, pay the applicable taxes and interest, and hope that the IRS doesn’t identify them for further investigation. These disclosures are described as quiet because [...]
Transfer Pricing and How to Handle the “Double-Edged Sword”
February 28, 2011By David L. Bernard TaxBlawg’s Guest Commentator, David L. Bernard, is the former Vice President of Taxes for Kimberly-Clark Corporation, a past president of the Tax Executives Institute, and a periodic contributor to TaxBlawg. Transfer pricing among affiliated companies is the classic “double-edged sword”. When carefully designed, transfer pricing practices can cut a company’s effective [...]
Treasury Finalizes New Debt Modification Regulations
January 10, 2011By Jonathan Prokup On Friday, the Treasury Department issued final regulations under Code section 1001 relating to the modification of debt instruments. In relevant part, the regulation provides that, following the modification of a debt instrument, the classification of the modified instrument as debt or equity for federal income tax purposes does not take into [...]
New Section 6045B: Reporting Not Required For Corporate Subsidiaries
January 6, 2011By Jonathan Prokup From time to time, we receive questions from readers about current topics on their minds. One of our readers wrote earlier this week to ask about an article from Monday’s Tax Notes – 2011 Brings New Return Obligation for Corporate Actions Affecting Basis, by Amy Elliott. The article discussed the newly effective [...]
Tax Talk Around The Web
December 6, 2010By Jonathan Prokup Business Spectator: Stalled R&D legislation stunts innovation (Australia). As we discussed previously, temporary legislation makes for lousy tax policy, a problem that Australia seems to be experiencing right now. Forbes – Business in the Beltway: Taxes? Hold ‘Em!. It seems that the pending deal on individual taxes will include a one-year extension [...]
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