Federal
NOL Carrybacks Under the CARES Act
Why it’s important to accelerate or otherwise maximize losses in 2020
Due to the disruptions and economic shutdowns caused by COVID-19, many corporate taxpayers will have net operating losses (NOLs) in 2020. The Coronavirus Aid, Relief, and Economic Security (CARES) Act offers these taxpayers the opportunity to turn 2020 NOLs into cash refunds. The CARES Act revived the NOL carryback that… Read more »
Understanding the Built-in Gain and Loss Rules of Section 382—and Possible Significant Changes on the Horizon
Unprecedented NOLs have accompanied unprecedented times
As we all welcome the new year, companies look forward to the future and hope to leave 2020 to the history books. Because of the lingering economic effects of COVID-19 and the expansion by the Tax Cuts and Jobs Act (TCJA) of the application of the Section 168(k) first-year bonus… Read more »
Carrybacks, Carryovers, Statutes of Limitations, Audits, and Joint Committee on Taxation Review—Practical and Procedural Aspects of Tax Attribute Planning
Questions abound concerning the impact of the CARES legislation
The COVID-19 pandemic has had wide-ranging effects. The Coronavirus Aid, Relief, and Economic Security (CARES) Act legislation, signed into law on March 27 in response to COVID-19, has reshaped the tax landscape as we know it. Gone, for example, are the restrictions imposed on carrying back certain tax attributes, including… Read more »
Addressing Proposed Section 382 Regulations in Current M&A Transactions
These revisions will impact deal terms and valuation
In September 2019, the Internal Revenue Service (IRS) and the Treasury Department issued proposed Section 382 regulations that, when finalized, would significantly reduce the value of net operating losses (NOLs) following Section 382 ownership changes, including those that occur in connection with mergers and acquisitions.1 In particular, the proposed regulations… Read more »
Intersection of National Security With M&A: The Committee on Foreign Investment in the United States
Why does the United States have laws that regulate M&A activity from a national security perspective, and why are those laws now getting more attention?
Once a sleepy, shadowy backwater of the federal government, the Committee on Foreign Investment in the United States (CFIUS)—the U.S. government’s principal mechanism for screening foreign investment to assess and address its potential impact on U.S. national security—has hit the big time. In the last eighteen months, Congress passed sweeping… Read more »
Funds With Benefits: Investing in Qualified Opportunity Zones
Are you up to date on the two sets of IRS-proposed rules on QOZs?
The Tax Cuts and Jobs Act1 created qualified opportunity zones (QOZs) to spur economic development throughout the United States by providing tax benefits to investors who make qualifying investments in these zones. Thousands of population census tracts have been designated as QOZs. Under the QOZ program, taxpayers who timely roll… Read more »
Expect More Civil Tax Penalties—So, Now What?
How to prepare for and defend against the more frequent penalties
Imagine a street with a twenty-five-mile-per-hour speed limit, but everyone knows the police don’t patrol the street. Would you go twenty-five miles per hour? In a voluntary tax system, the Internal Revenue Service enforces the Internal Revenue Code (IRC, or the Code) with the threat of the civil tax penalty.… Read more »
Responses to Federal Tax Reform in Key States
Keeping pace with developing federal rules has challenged even the most sophisticated corporate tax departments
A tsunami of change has roiled the normally calm waters of state conformity to the Internal Revenue Code (IRC) as a result of federal tax reform. Passed in December 2017, shortly before state legislatures went into session in 2018, the Tax Cuts and Jobs Act of 2017 (PL 115-97), hereafter… Read more »
Part V: Section 965 Transition Tax
Yes, some issues are likely to persist for years after you’ve paid the tax
The Tax Cuts and Jobs Act (TCJA) added Section 965 to the Internal Revenue Code to tax earnings held offshore by controlled foreign corporations (CFCs) going back to 1987. In general, this transition tax is the price that U.S. persons who have accumulated earnings in CFCs must pay for the… Read more »
The Tax Cuts and Jobs Act: Introduction
It’s complex, sometimes unclear, but undeniably important
In 2017, the Tax Cuts and Jobs Act was signed into law—the most extensive tax reform legislation enacted in more than three decades. The measure is having a dramatic impact on both individuals and corporations. The statute’s laundry list of provisions significantly affect corporate taxpayers, according to the Tax Foundation,… Read more »
Intangible Asset Valuation for Tax Purposes Under Fair Market Value and Arm’s-Length Standards Business transactions such as mergers, acquisitions, and business reorganizations often…
The New Corporate Alternative Minimum Tax: Five Not-So-Obvious Rule Applications to Consider Editor’s note: This article was written in mid-December 2022. It…
How Remote Workforce Programs Trigger Myriad Tax Problems—Part One Editor’s note: Given the complexity of this topic, this will…
Embracing ESG: Four Ways Tax Departments Can Add Value Environmental, social, and governance (ESG) considerations command a continually growing…
In Memoriam: Eric Lee Johnson The TEI community recently lost an amazing tax professional and…
How Remote Workforce Programs Trigger Myriad Tax Problems—Part Two The coronavirus pandemic created an explosion in remote workforce programs,…