Features

The “Most Interesting Man in the World” of R&D Tax Credits
Using Dan’s technology tips to improve your process today

Remember the Dos Equis beer ads where a bearded, distinguished-looking older gentleman wrestled bears, had drinks with Castro, and climbed Everest with his mom on his back as the bombastic voiceover recounted his daring exploits? “Bear hugs are what he gives bears. He lives vicariously through himself. His mom has… Read more »

Apportionment: Normal Formulas Are Unfair and Can Be Challenged
Let’s acknowledge that companies’ advantages in the market arise partly from their human capital and use of assets—both tangible and intangible

For the 2022 tax year, of the forty-five states (plus the District of Columbia) that impose a corporate income tax, more than thirty require the use of a single sales factor normal apportionment formula; and, when we also consider states that put additional weight on the sales factor, that number… Read more »

GloBE Meets GILTI
What’s the status of implementation?

When the United States adopted the book minimum tax in July 2022 as part of the Inflation Reduction Act, it became clear that the country was not racing to implement Pillar Two issued by the Organisation for Economic Co-operation and Development in March 2022. But the enactment of the minimum… Read more »

TEI Roundtable No. 41: Tax Insurance: An Agent of Change
It’s on the front burner these days

The tax insurance market is rapidly evolving and its benefits are becoming more widespread, especially in the area of mergers and acquisitions. To find out more about what’s happening in this space, we convened a roundtable comprising four knowledgeable professionals who gave us the real skinny on tax insurance: Jordan… Read more »

TEI Roundtable No. 40 Foreign Tax Credit Regulations
Are you up-to-date?

For almost four decades, the foreign tax credit regulations have established a three-part net gain requirement for determining when a particular foreign levy is an income tax. Now, things have changed. We assembled a panel of knowledgeable tax practitioners in the space to discuss how these changes came about and… Read more »

The Presumption of Correctness
A pesky problem in state tax law

A common question tax directors ask when considering whether to litigate a state tax case is, What is the likelihood we will win? It’s an obvious question to ask, but an impossible one to answer. In our own experience, we have won cases we’d thought were stacked against us and… Read more »

Technical Corrections to the 2021 Final Foreign Tax Credit Regulations
Correcting the uncorrectable?

As readers are well aware, almost a year ago, on December 28, 2021, the Treasury Department issued final foreign tax credit regulations (hereafter the “final regulations”)1 finalizing the proposed regulations that Treasury had issued the prior year.2 On July 26, 2022, Treasury issued two sets of technical corrections to the… Read more »

Managing Corporate Foundation Risk
What role do in-house tax professionals play in advancing charitable objectives?

Causes worthy of support are plentiful, and new ones seem to appear daily. How a company responds to societal needs is more important than ever. More than 2,800 corporate foundations are estimated to exist in the United States.1 Many companies are moving away from traditional or responsive models of philanthropy… Read more »

Agents of Chaos: How Tax Leaders Are Adapting to Global Disruptions
Here are five ways tax groups can help senior leadership respond to uncertain times

This is not your parents’ inflation, but it will have wide-ranging implications for tax departments. Previous corporate playbooks for responding to external disruptions cannot begin to address the unique challenges posed by the current global economic decline following three consecutive shocks, ongoing trade wars, geopolitical unrest, and supply chain snarls.… Read more »

TEI Roundtable No. 39: DEMPE Functions and Their Impact on International Taxes
What should we make of a concept encompassing the development, enhancement, maintenance, protection, and exploitation of IP?

At TEI’s 72nd Midyear Conference in Washington, D.C., the Institute conducted a terrific session that focused on the DEMPE functions—development, enhancement, maintenance, protection, and exploitation of intellectual property—as laid out by the Organisation for Economic Co-operation and Development’s (OECD’s) Base Erosion and Profit Shifting (BEPS) Project and its impact on… Read more »