Editor: Mary Van Leuven, J.D., LL.M. The U.S. government imposes federal excise taxes that can affect a surprising variety of companies. These taxes include the foreign insurance excise tax, the Patient–Centered Outcomes Research Institute (PCORI) fee, and the relatively new stock repurchase excise tax. Compliance with these taxes can be
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Reporting & Filing Requirements
Treatment of digital assets transferred to employees
Sec. 83 governs the tax treatment of digital assets that employees receive in connection with their performance of services.
Tax implications in the automotive industry: The core of remanufacturing
Remanufactured “cores,” or used vehicle parts, are essential to the automotive industry but present distinct special tax and accounting considerations.
The funding rule under Sec. 4501(d) prop. regs.
Proposed regulations under Sec. 4501 apply the stock repurchase excise tax to a parent corporation that “funds by any means” a stock repurchase. But the proposed regulations lack clarity on the phrase’s interpretation.
FTR notification requirement for taxpayers under LB&I examination
A foreign tax redetermination may require taxpayers under Large Business and International Division examination to notify the IRS, which will redetermine the U.S. tax owed.
How Trump’s opposition to global tax deal may affect businesses
The Trump administration has rejected the OECD’s initiative to reform the taxation of multinational enterprises. Learn more about the executive action in this Q&A with an international tax expert.
Ensuring that shareholder debt is not reclassified as equity
Owners of C corporations can take steps to ensure that transfers to the corporation are treated as debt rather than equity.
Strategies for information return penalties and Form 945 assessments
Penalties for failure to file correct information returns and backup withholding can be waived, but timely and correct responses to IRS notices are essential.
New prop. regs. limit taxpayers’ foreign currency elections
The regulations would promote consistency with filing requirements for controlled foreign corporations and limit certain elections regarding foreign currency gains and losses.
Consolidated return filing for subsidiary in receivership
An IRS letter ruling confirmed that a subsidiary member of a consolidated group remains a part of the group and its consolidated return despite being in receivership under a court order that requires its eventual liquidation and dissolution.
Like-kind exchanges of real estate: Back to basics
This article discusses the requirements for gain deferral under Sec. 1031 and highlights frequently encountered issues.
FinCEN uses TV ad to tell businesses about BOI
The PSA uses a chat between friends in a coffee shop to educate small businesses about beneficial ownership information reporting, which 32.6 million businesses must file.
BOI requirements roll along despite concerns about too little outreach
FinCEN, which oversees beneficial ownership information reports, has received just 2.7 million of the 32.6 million reports that it expects. Through June, FinCEN said, it has reached more than 90,000 stakeholders.
IRS grants limited waiver for underpayment of estimated corporate AMT
In light of the continuing challenges taxpayers are facing with the corporate alternative minimum tax, the IRS granted a waiver of the addition to tax for failure to pay estimated corporate AMT “in the interest of sound tax administration.”
Draft form, instructions posted for corporate AMT
The IRS instructions say that all corporations must file Form 4626, unless they fall under one of four exclusions, to determine whether they are an applicable corporation, and, if so, to calculate the tax.
LB&I announces updates to 2024 CAP program
Changes to the IRS’s Large Business and International Division’s Compliance Assurance Process program include making the Bridge Plus phase mandatory.
Proposed regulations would update rules for consolidated returns
Proposed regulations for corporations that file U.S. federal consolidated income tax returns would update guidance under Sec. 1502 for statutory changes made over the last 50 years, modernize and clarify language, and facilitate taxpayer compliance.
IRS expands fast track for some corporate letter rulings
A pilot program is made permanent, offering resolution of certain letter ruling requests by corporations within 12 weeks.
Tax Court allows equitable tolling of deadline to review CDP hearing
Equitable tolling applies to the deadline for filing a request for a collection due process hearing.
FinCEN extends BOI reports deadline for certain companies
Treasury’s Financial Crimes Enforcement Network extended the deadline to file beneficial ownership information reports from 30 days to 90 days for companies created or registered in 2024.
employee benefits & pensions
Profits interests: The most tax-efficient equity grant to employees
By granting them a profits interest, entities taxed as partnerships can reward employees with equity. Mistakes, however, could cause challenges from taxing authorities.
