The Tax Cuts and Jobs Act (TCJA) created significant changes for both taxpayers and practitioners. One of the most disruptive and wide-ranging changes to taxpayers of TCJA was the repeal of Internal Revenue Code (IRC) Section 958(b)(4), effective as of January 1, 2018. Background A foreign corporation is treated as a controlled foreign corporation (CFC) […]

On April 3, 2023, the United States Tax Court ruled in Alon Farhy v. Commissioner, 160 T.C. No. 6 that the Internal Revenue Service (IRS) did not have authority to assess penalties under Internal Revenue Code (IRC) section 6038(b) against a taxpayer who willfully failed to file Form 5471, Information Return of US Persons With Respect […]

Loans to or from a foreign trust by US persons may be treated as either a contribution to the trust, or a distribution from the trust. Qualified Loan To avoid this treatment the loan must be a “Qualified Loan”.   To be a “Qualified Loan” the following requirements must be met: The obligation must be in […]

USTAXFS underpins the Corporate and Funds Tax Group exponential growth with key regional promotions  We are pleased to announce that USTAXFS has promoted two senior team members in both London and Geneva into Director positions. Inna Ganz in Geneva and Stacy Martin in London are now US Tax Directors within the fast-growing Corporate and Funds […]

Private Equity (PE) and Venture Capital (VC) funds often attract significant investment from US tax-exempt entities.  In doing so, these funds may need to avoid having Unrelated Business Taxable Income (UBTI).  This article will address some of the scenarios that can cause a fund to generate UBTI. US tax-exempt entities such as qualified pension funds, […]

On March 21, 2023, the Treasury Department and the Internal Revenue Service (the “IRS”) announced that they were requesting comments regarding upcoming guidance on US tax treatment of certain nonfungible tokens (“NFTs”) as collectibles under Internal Revenue Code (IRC) section 408(m). NFTs An NFT is a unique digital identifier that is used to certify ownership and […]

Written by Johana Regatuso and Harry Swift.  Chancellor Jeremy Hunt has now delivered his statement on UK tax and spending. Out of the past five Chancellors, he is only the second to hold the iconic red box outside No. 11 Downing Street. There has been very little in the press in the run-up to this […]