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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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08.07.2023IRS Concludes That Staking Rewards Are Included in Gross IncomeUpdatesThe Internal Revenue Service issued Revenue Ruling 2023-14 on July 31, 2023, providing clarity on its position regarding the tax treatment of crypto staking rewards for cash-method taxpayers.
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01.19.2021Final Regulations Issued Regarding Section 45Q Tax Credits Carbon Oxide SequestrationUpdatesThe Regulations contain important clarifications regarding the taxpayers eligible to claim Section 45Q tax credits.
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12.24.2020Another Round of PPP Loans Approved by Congress, With Yet Additional Changes to the ProgramUpdatesThe U.S. Senate and House of Representatives, on December 21, 2020, approved H.R. 133, referred to as the “Consolidated Appropriations Act, 2021.”
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12.2020IRS Enforcement Aimed at High-Net-Worth TaxpayersArticlesAs high-net-worth taxpayers learn of recent Internal Revenue Service pronouncements, they’re rightfully asking their trusted advisors, “Could the IRS Wealth Squad be coming for me?”
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09.04.2020Summary of Notice 2020-65: Deferral of Employee’s Portion of Social Security TaxesUpdatesIn response to the ongoing coronavirus (COVID-19) pandemic, the U.S. Congress, the executive branch, and the Internal Revenue Service (IRS) have taken several actions intended to provide immediate relief to taxpayers.
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08.12.2020How to Prepare High-Net-Worth Clients for IRS Wealth Squad AuditsArticlesAt a recent conference, top officials with the Internal Revenue Service announced a renewed audit focus on high-net-worth (HNW) individuals and their related entities going forward.
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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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06.16.2020Proposed Regulations Increase Incentives for Carbon Capture TechnologyUpdatesThe Internal Revenue Service on May 28, 2020, introduced proposed regulations detailing how companies can qualify for carbon capture tax credits under Section 45Q of the Internal Revenue Code.
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04.13.2020IRS Announces Delay of Certain Periods for 1031 TransactionsUpdatesIn response to the ongoing coronavirus pandemic (COVID-19), the Internal Revenue Service (the IRS) has taken additional actions intended to provide immediate relief to taxpayers.
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03.31.2020Summary of Tax Provisions of the CARES ActUpdatesIn response to the ongoing coronavirus (COVID-19) pandemic, U.S. Congress, the executive branch, and the Internal Revenue Service (IRS) have taken several actions intended to provide immediate relief to taxpayers.
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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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04.26.2018Deductibility of Trust Expenses Under the Tax Cuts and Jobs ActArticles
Trusts & Estates
The Tax Cuts and Job Act of 2017 (the Act), was signed into law on Dec. 22, 2017, bringing a myriad of changes to the Internal Revenue Code and sparking a substantial amount of commentary and analysis. While much attention has been centered on the consequences of the Act for individual and business taxpayers, relatively little focus has been given to the impact of the Act on trust and estates. -
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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02.09.2018Private Company Tax Planning Opportunities for 2018UpdatesThe Tax Cuts and Jobs Act of 2017 and the recent taxpayer victory in the U.S. Tax Court’s Lender Management, LLC decision have created important planning opportunities for both our closely held and family-controlled entities in 2018.
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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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01.04.2017India Amends Capital Gains Tax Treaty With SingaporeUpdatesThe Government of India amended its double taxation avoidance agreement (DTAA) with Singapore on December 30, 2016.
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02.2015Virtual Currency Exchange Accounts, Hosted Wallet Services, and Vault Services Located Abroad May Trigger FBAR Filing RequirementsArticlesAs the title suggests, there remains an open question as to whether virtual currency accounts, hosted wallet services and vault services located abroad may trigger FBAR filing requirements.
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01.2015Dealing with Virtual Currency? Taxation, Reporting FBARs, and FATCA WorriesArticlesYou or your client decide to jump into the exciting but volatile world of Bitcoin and virtual currencies. What are some of the most important tax-related implications of dealing in virtual currency, and what are the hidden reporting requirements associated with such transactions?
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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. -
12.12.2012New Rules Will Be “Taxing” on Medical Device ManufacturersUpdatesThe U.S. Department of the Treasury and the Internal Revenue Service (IRS) recently issued much-anticipated final regulations under Section 4191 of the Internal Revenue Code (Code), which imposes a 2.3% tax on sales of any “taxable medical device” by a manufacturer, producer or importer (collectively referred to as “manufacturers”). The IRS simultaneously issued Notice 2012-77, providing interim guidance to manufacturers while it continues to study certain issues that are not addressed by the final regulations.
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07.29.2011The 2011 Offshore Voluntary Disclosure Initiative Offers Taxpayers a Way to Substantially Reduce Potential PenaltiesUpdatesThe 2011 Offshore Voluntary Disclosure Initiative, which ends August 31, 2011 offers taxpayers who either maintain undisclosed foreign bank accounts or use foreign entities to conceal offshore investments a way to substantially reduce their potential penalties as opposed to those who do not come forward.
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12.22.2010Investment Window for Capital Gains Tax Exclusion for Certain New Investments in Small Businesses Extended to December 31, 2011UpdatesOn December 17, 2010, President Obama signed into law the Tax Relief, Unemployment Insurance Reauthorization and Job Creation Act of 2010 (the “Act”). Among other provisions, the Act extends for one additional year the exclusion from gross income of 100% of future capital gains of non-corporate taxpayers from certain investments in qualified small business stock.
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12.20.2010President Obama Signs Legislation Extending Tax CutsUpdates
The Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 ("2010 Tax Relief Act"), signed into law on December 17, 2010, provides individual and business tax relief that includes a two-year extension of capital gains and dividend income rate reductions, a two-year extension of individual income tax rate reductions and certain other individual and business tax relief. Additionally, the legislation increases the estate and gift tax exemption level to $5 million and reduces the tax rate to 35 percent through 2012.
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09.29.2010IRS Releases Final Schedule and Instructions for Reporting Uncertain Tax PositionsUpdatesOn September 24, 2010, the IRS released final Schedule UTP and its corresponding instructions that require certain corporations with audited financial statements to report uncertain tax positions. Earlier this month, on September 9, 2010, a notice of proposed rulemaking was issued setting forth a proposed regulation that specifically authorizes the IRS to require the filing of Schedule UTP.
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08.18.2010New Legislation Adopts Additional Limitations on the Use of Foreign Tax CreditsUpdatesOn August 10, 2010, President Obama signed into law the Education Jobs and Medicaid Assistance Act of 2010 (the “Act”).
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04.02.2010Cash Grants and Tax Credits Now Available for Certain Biotech/Biopharma R&D ExpensesUpdatesBiotech and biopharma companies now have an opportunity to recover up to 50% of their qualified investments in qualifying therapeutic discovery projects as a cash grant or tax credit.
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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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08.25.2009First Circuit Denies Work Product Protection to Tax Accrual WorkpapersUpdatesA recent full court First Circuit decision held that the taxpayer's tax accrual workpapers are not protected under the work product privilege and must therefore be released to the Internal Revenue Service.
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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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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.
Virtual Currency Report
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SEC Approves 11 Spot Bitcoin Exchange-Traded Products
On January 10, the Securities and Exchange Commission gave the green light to 11 issuers that applied for bitcoin exchange-traded funds (ETFs). After a false announcement and a course change due to the ruling in Grayscale Investments, LLC v. SEC, the SEC approved spot Bitcoin ETFs for ARK 21Shares, Invesco Galaxy, VanEck, WisdomTree*, Fidelity, Valkyrie,... Continue Reading…
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BarnBridge and its founders Tyler Ward and Troy Murray allegedly sold unregistered SMART Yield bonds, which the SEC considers crypto asset securities. Respondents also were charged with violations stemming from operating BarnBridge’s SMART Yield pools as unregistered investment companies. BarnBridge agreed to disgorge $1,457,000 from the sale and Ward and Murray agreed to civil penalties... Continue Reading…
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NYDFS Proposes Updates to Guidance for Listing and Delisting Digital Assets
What Happened? The New York Department of Financial Services (NYDFS or Department) released proposed updates to its guidance on the self-certification process for listing and delisting digital assets. It also announced significant changes to the Department’s “Greenlist” of vetted digital assets. This industry development affects companies that have received permission to engage in virtual currency... Continue Reading…
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The Federal Reserve’s Novel Activities Supervision Program: What Banks and Nonbanks Need to Know
Financial technology firms and certain banks and bank holding companies can expect to face increased scrutiny as the Board of Governors of the Federal Reserve System takes another step to stem risks related to crypto-assets, use of blockchain technology, and complex fintech partnerships with nonbanks to deliver financial services to customers. Through its newly announced... Continue Reading…
