Publications
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09.12.2023IRS Issues Proposed Regulations Relating to Digital Asset TransactionsUpdatesThe U.S. Department of the Treasury and the Internal Revenue Service recently released proposed regulations (REG-122793-19) pertaining to information reporting and backup withholding, as well as basis and amount realized determinations for certain transactions involving digital assets.
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12.24.2020Summary of Certain Business Tax Provisions in the Consolidated Appropriations Act, 2021UpdatesAfter much political gridlock, Congress passed an omnibus government-spending bill (Appropriations Act), which includes another COVID-19 relief package.
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08.05.2020IRS Publishes Proposed Regulations Applicable to Three-Year Carried Interest Holding Period RequirementUpdatesOn Friday, July 31, 2020, the Internal Revenue Service (IRS) issued proposed regulations under Section 1061 of the Internal Revenue Code.
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03.25.2020Summary of Tax Provision of the Families First Coronavirus Response Act and Certain Tax Filing ChangesUpdatesIn response to the ongoing coronavirus (COVID-19) pandemic, the U.S. Congress, the Executive Branch, and the Internal Revenue Service have taken several actions intended to provide immediate relief to taxpayers, including by postponing federal income tax return and tax payment deadlines, providing businesses with tax credits to the extent that such businesses are subject to new paid sick and paid family and medical leave requirements, and declaring COVID-19 a national emergency.
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03.07.2018New Three-Year Hold Requirement for Carried Interests, Updated Notice for S CorpsUpdatesThe 2017 Tax Cuts and Jobs Act, signed by President Trump last month, significantly affects the ability of the managers of investment funds to receive long-term capital gains with respect to their carried interest.
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01.09.2018Impact of Tax Reform on Some Private Company Equity Awards: Limited Income Tax Deferral Opportunities for EmployeesUpdatesThe recent tax reform bill, commonly referred to as the Tax Cuts and Jobs Act of 2017 (the Act), was signed into law on December 22, 2017. The Act includes a new income tax deferral regime for certain employee stock options and restricted stock units (RSUs) granted by eligible private corporations under broad-based programs that are exercised or settled after December 31, 2017.
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12.26.2017Tax Cuts and Jobs Act of 2017: Year-End Planning for BusinessesUpdatesCertain aspects of the tax reform bill signed by President Trump last Friday create significant year-end planning opportunities for businesses that are able to act quickly.
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12.29.2015Capital Gains Tax Exclusion for Certain New Investments in Small Businesses Made PermanentUpdates
President Obama signed into law the Protecting Americans from Tax Hikes Act of 2015 (the PATH Act) on December 18, 2015. Among other provisions, the PATH Act provides that the 100 percent exclusion from gross income of certain capital gains from sales of qualified small business stock will apply to all investments made after September 27, 2010, including investments made in 2015 that were not eligible for the exclusion prior to the passage of the PATH Act.
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10.08.2015Don’t Burst My Bubble! IRS Provides Clarity for F ReorganizationsArticles
Law360
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10.05.2015Don’t Burst My Bubble! IRS Provides Clarity for F ReorganizationsUpdatesRecently, the Internal Revenue Service issued final regulations addressing reorganizations, commonly referred to as “F reorganizations,” under Section 368(a)(1)(F) of the Internal Revenue Code (the Code).
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04.02.2014A Close Look At The IRS' Bitcoin GuidanceArticles
Law360
In this Law360 article, Perkins Coie attorneys discuss the recent notice issued by the IRS on how it will apply U.S. tax principles to transactions involving virtual currency. The U.S. Government Accountability Office had previously issued a report on virtual economies and currencies, calling for additional IRS guidance on the basic tax reporting requirements applicable to virtual currencies. -
01.14.2013Investment Window for Capital Gains Tax Exclusion for Certain New Investments in Small Businesses Extended to December 31, 2013UpdatesOn January 2, 2013, President Obama signed into law the American Taxpayer Relief Act of 2012 (the Act). Among other provisions, the Act provides that the 100% exclusion from gross income of certain capital gains from sales of qualified small business stock will apply to investments made after September 27, 2010 and before January 1, 2014, including investments made in 2012 that were not eligible for the exclusion prior to the passage of the Act.
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03.23.2012Tax Redemption and Attribution Rules: A Trap for Unwary Family-Owned BusinessesArticles
Seattle Business Magazine
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10.05.2010New Legislation Eliminates Capital Gains Tax for Certain New Investments in Small Businesses Made Before January 1, 2011UpdatesOn September 27, 2010, President Obama signed into law the Creating Small Business Jobs Act of 2010 (the “Act”). Among other provisions, the Act excludes from gross income for regular income and alternative minimum tax purposes 100% of the capital gains (subject to a per issuer limitation described below) of non-corporate taxpayers from investments in qualified small business stock made after September 27, 2010 and before January 1, 2011. For investments in qualified small business stock made after December 31, 2010, only 50% of the capital gains generally will be excluded from gross income.
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03.25.2010IRS Provides New Safe Harbor for Section 1031 Exchanges Using Qualified IntermediariesUpdatesThe IRS recently issued Revenue Procedure 2010-14, which provides long-awaited guidance for taxpayers whose deferred like-kind exchange of relinquished property would be non-taxable under Section 1031 of the Internal Revenue Code but for the failure of the qualified intermediary ("QI") to acquire and transfer identified replacement property due to the QI's insolvency proceedings.
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03.23.2010SGIGs Will Be Treated as Nonshareholder ContributionsUpdatesUntil recently, the taxability of Smart Grid Investment Grants (SGIGs) was an undecided issue. Effective March 10, 2010, the Internal Revenue Service (IRS) has announced that these grants will be treated as nonshareholder contributions to the capital of grant recipients and thus not included in their taxable gross income.
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12.30.2009New Requirements No Longer "Option"-al! February 1, 2010 Deadline and Final Regulations on Return and Information Statement Requirements for ISOs and ESPPsUpdatesThe Internal Revenue Service recently issued new final regulations addressing the return and information statement requirements applicable to exercises of incentive stock options, or ISOs, and transfers of shares purchased under an employee stock purchase plan, or ESPP. The IRS has waived the requirements under the new regulations for ISO exercises and transfers of ESPP shares that occur during 2009.
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12.02.2009End-of-the-Year Actions May Be Needed for Compliance With Code Sections 162(m) and 409AUpdatesPublic companies should take steps to determine whether any amendments may be required to new and outstanding compensatory arrangements in light of Section 162(m) of the Internal Revenue Code and certain transition relief under Revenue Ruling 2008-13.
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03.02.2009Economic Stimulus Bill Provides First-Time Homebuyers With Expanded Tax CreditUpdatesThe American Recovery and Reinvestment Act of 2009, commonly referred to as the Stimulus Bill, was signed into law on February 17, 2009 and contains an expanded tax credit for first-time homebuyers who make qualifying purchases prior to December 1, 2009.
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02.23.2009Economic Stimulus Bill Provides Energy Tax Incentives and Relaxes Tax Rules for BusinessesUpdatesThe American Recovery and Reinvestment Act of 2009, commonly referred to as the Stimulus Bill, signed into law on February 17, 2009, contains renewable energy tax incentives, defers realization of certain cancellation of debt income, suspends certain restrictions on the deductibility of original issue discount, and limits S corporation built-in gain recognition.
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03.21.2008IRS Clarifies New Adverse Position on Section 162(m) Performance-Based Compensation Exception and Provides Transition ReliefUpdatesThe IRS recently issued Revenue Ruling 2008-13, which clarifies the IRS's new position with
respect to the applicability of the performance-based compensation exception for purposes of Section 162(m) of the Internal Revenue Code and grants transition relief to provide public companies an opportunity to review outstanding compensation plans, agreements and other arrangements in light of the IRS's new position. -
07.23.2007IRS Confirms Tax Consequences of New Vesting Restrictions on Fully Vested StockUpdates
The IRS recently issued Revenue Ruling 2007-49, which provides guidance on the tax consequences of certain transactions involving new vesting restrictions on fully vested stock. This update provides a brief background on Section 83 of the Internal Revenue Code, summarizes the key highlights from the revenue ruling and offers practical tips.
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06.07.2007IRS Narrows Definition of "Covered Employees" for Purposes of the $1 Million Limitation on Deducting Executive CompensationUpdates
This week the IRS issued guidance on identifying "covered employees" for purposes of Section 162(m) of the Internal Revenue Code in response to the SEC's recent amendments to its executive compensation disclosure rules. This Update summarizes the key highlights from this IRS guidance.
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12.04.2006Financial Reporting Reminder for 2007: Accounting for Uncertain Income Tax Positions Under FIN 48UpdatesPublic companies, and other companies that need audited financial statements, must begin accounting for uncertain income tax positions under a new rule: Financial Accounting Standards Board Interpretation No. 48, which was released in July, and is effective for fiscal years beginning after December 15, 2006. Most reporting companies will implement the new rule for their first quarter 2007 financial statements.
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12.28.2005Valuing Private Company Stock for Compensation Purposes - Practical GuidanceUpdatesInternal Revenue Code Section 409A, along with recent changes in financial accounting rules, has significantly increased the focus of private companies on accurately valuing their common stock for purposes of granting options and other equity incentive awards. Section 409A has upped the ante by imposing severe tax consequences on individuals for certain stock-based compensation that does not comply with the new deferred compensation tax rules, including stock options granted with an exercise price that is less than the fair market value of the company's common stock on the grant date.
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10.25.2004Congress Restores Deductibility of State and Local Sales and Use TaxesUpdatesOn October 22, 2004, President Bush signed into law the American Jobs Creation Act of 2004 (the "Act"). The Act partially restores the federal income tax deduction for state and local sales and use taxes that was eliminated by Congress in 1986.
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10.22.2004President Bush Signs Bill Providing Tax Relief to U.S. Manufacturers and Temporary Tax Incentive to Reinvest Foreign Earnings in the United StatesUpdatesToday, President Bush signed the American Jobs Creation Act of 2004 (H.R. 4520) into law. The $145 billion corporate tax package contains a range of international tax reforms, corporate tax breaks and tax incentives that are intended to make United States manufacturing, service and high-technology businesses and workers more competitive and productive both in the United States and abroad.
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09.17.2004Keeping Your Options Open: Highlights From the IRS Final Regulations on Incentive Stock Options and Practical GuidanceUpdatesIn August 2004, the Internal Revenue Service issued final regulations relating to incentive stock options (ISOs). Although the final regulations are similar to the proposed ISO regulations published last year, the final regulations contain important guidance and changes relating to a number of issues affecting ISOs.
Blog
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New Legislation Imposes Excise Taxes on Stock Repurchases: 9 Things to Know
A few days ago, President Biden signed the Inflation Reduction Act of 2022 into law – and there’s a number of items to unpack in it. This blog tackles nine things to know about the new excise tax equal to 1% of the fair market value of any stock repurchased by certain (generally domestic) corporations... -
IRS Clarifies Tax Treatment of Bitcoin and Other Convertible Currencies
The IRS issued Notice 2014-21 yesterday, which describes how the IRS will apply U.S. tax principles to transactions involving virtual currency. The GAO had previously issued a report on virtual economies and currencies, calling for additional IRS guidance on the basic tax reporting requirements applicable to virtual currencies. The major decision reflected in the guidance...