Collaboration agreements, especially in the life sciences, sometimes unexpectedly transcend state boundaries, with consequences for companies’ apportionment and sales factor revenue sourcing.
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TOPICS
C Corporation Income Taxation
Transferring accounts receivable and liabilities to a new corporation
Assumptions of receivables are usually straightforward, but debt transfers can in some instances be disallowed or even be considered abusive.
Navigating the QSBS rules in pass-through structures
The rules for qualified small business stock become more complex when it is held through a pass-through entity or when the corporation operates through one or more partnerships. This article discusses QSBS eligibility rules, planning opportunities, and areas of uncertainty.
Sec. 338(h)(10) elections in business acquisitions
A Sec. 338(h)(10) election can allow parties to a business acquisition to treat a statutory stock purchase as a deemed asset sale for income tax purposes, potentially benefiting both the buyer and the seller. This article discusses the election’s mechanics, eligibility rules, and tax consequences, as well as practical deal considerations.
Avoiding triggering foreign investment ECI with a US office
A recent IRS letter ruling and Tax Court case illustrate, respectively, successful and unsuccessful positions regarding foreign investments in the United States as effectively connected income.
Why record quality matters more than ever in unclaimed property audits
State authorities are increasingly scrutinizing companies’ escheats information regarding sourcing, dormancy tracking, and owners.
M&A termination fees under Sec. 1234A: Developments since 2016
Capital gains vs. ordinary income treatment hinges on the nature of the underlying contractual rights or obligations and the underlying property.
Check-the-box effects for foreign owners
A check-the-box election may either eliminate or impose U.S. tax and compliance burdens for foreign owners.
Using a divisive D reorganization to shift ownership by creating a new S corporation
A Type D tax-deferred spinoff or split-off followed by an S election may be available if the reorganization meets the requirements of Sec. 355 and Sec. 368(a)(1)(D), including a valid corporate business purpose.
Tax Court addresses disallowance of DRD and FTC
Tax Court disallows part of a taxpayer’s Sec. 245A dividends-received deduction and holds post–Sec. 965(c) amount must be included in formula to determine Sec. 245A(d)(1) foreign tax credit disallowance.
Seventh Circuit vacates Hyatt loyalty program decision
Seventh Circuit reverses and remands Tax Court decision regarding hotel loyalty program income.
Transfer pricing treatment of acquired intangibles
After a cross-border merger or acquisition, related affiliates often integrate and use the acquired intangibles, such as new products or innovative features. To help executives manage the resulting transfer pricing risk, this article examines the treatment of acquired intangibles in post-acquisition related-party transactions.
Planning for domestication transactions
Foreign companies can realize benefits from establishing domicile in the United States if they observe structural and special rules and considerations.
Planning for new charitable contribution limits
Thresholds and ceilings for individual and corporate deductions under the law known as the One Big Beautiful Bill Act may indicate a need for donation timing and other strategies.
Determining when a debt instrument has zero basis
Taxpayers issuing related-party loans should assess the consequences if those debt instruments are determined to have a zero basis.
The new CFC tax landscape after OBBBA
H.R. 1, P.L. 119-21, known as the One Big Beautiful Bill Act, introduced significant changes to the controlled foreign corporation rules that affect U.S. taxpayers with foreign corporate interests. Two key amendments introduced under Section 70353 of the OBBBA are particularly noteworthy.
R&D credits and the computer rental rules time forgot
Although computing has transformed radically in the past 45 years, the computer rental rules of Sec. 41 and regulations continue to reflect technology as it existed 1980s.
The historic shift in transfer pricing penalty enforcement
Once rarely imposed, transfer pricing penalties are now a routine feature of IRS examinations, making the quality of transfer pricing documentation more important than ever.
The end of deferral: Calculating QOZ gain recognition on Dec. 31, 2026
A critical milestone in the qualified opportunity zone program looms, and understanding how to calculate the required deferred gain recognition is essential.
VAT challenges in AI product development
Artificial intelligence may incrementally become a product’s component until it crosses a threshold into being a digital service subject to value-added tax.
PRACTICE MANAGEMENT
2026 tax software survey
CPAs rate their return preparation software’s performance during this year’s tax season.
