Media Mentions
2012
“The Transfer Window”
Legal Week, February 6, 2012
Tom Scott was noted as new head of the Tax Practice in McDermott’s London office. Mr. Scott previously was a senior tax partner at KPMG and practiced at a Magic Circle firm. He is the office’s second new tax partner this year.
Tom Scott, International Tax, Tax
“Use of Accounting Firm’s Advice as Penalty Defense Waives Work Product Protection”
Federal Tax Weekly, February 2, 2012
Robin Greenhouse said that a recent Court of Federal Claims decision ordering disclosure of work papers on an alleged tax shelter showed that “work product protection is waived by putting the tax advisor’s advice at issue for penalty protection.” She cautioned that taxpayers “should think carefully and strategically about whether and when – during the audit, appeals or litigation – to put the tax advisor at issue.”
Robin L. Greenhouse, International Tax, Tax
“Andrea Kramer: Promoting Gender Equality”
Chicago Lawyer, February 1, 2012
Andrea Kramer was profiled for her significant efforts to promote gender equality in the legal profession. Since joining McDermott as a partner, Ms. Kramer helped establish the Firm’s Diversity Committee and McDermott University mentoring program as well as the Women’s Leadership & Mentoring Alliance, and chairs the Chicago Foundation for Women. “I believe that women can help themselves, and I think men have a lot to learn as well about what they can do to do a better job of understanding the communication differences,” she stated. Jeffrey Stone called Ms. Kramer “a thought leader and innovator” in gender equality issues, while Carolyn Gleason said of Ms. Kramer, “I’ve been inspired as I’ve watched her.”
Carolyn B. Gleason, Andrea S. Kramer, Jeffrey E. Stone, International Tax, International Trade, Tax, White-Collar & Securities Defense
“The Churn: Lateral Moves and Promotions in the AmLaw 200”
The AmLaw Daily, January 31, 2012
Dwight Mersereau was noted for joining McDermott as a Washington office tax law partner representing corporate clients in tax policy, planning and controversies. Formerly with another large Washington firm, Mr. Messereau has also worked at the Internal Revenue Service.
Dwight N. Mersereau, International Tax, Tax
“Professional Recognition: Dwight Mersereau”
Washington Business Journal, January 30, 2012
Dwight Mersereau joined McDermott’s Washington office as a partner in the U.S. and International Tax Practice. A prominent Washington tax practitioner who is often consulted on complex tax accounting issues by policy makers, Mr. Mersereau has represented individuals, associations and client coalitions before Congress, the U.S. Treasury, and the IRS.
Dwight N. Mersereau, International Tax, Tax
“Work Product Privilege Waived for Penalty Defense Documents, Court Holds”
Tax Notes Today, January 24, 2012
Robin Greenhouse said a Court of Federal Claims decision that a taxpayer waived work product privilege for tax reserve workpapers by claiming reliance on independent audit advice to avoid penalties “highlights the harsh consequences that can result when the financial auditor is also the taxpayer’s tax adviser.” Ms. Greenhouse added, however, that “in allowing the parties to reach agreement over the characterization of documents as privileged without causing waiver of any applicable privilege, the court offers a potentially effective process for future privilege litigation.”
Robin L. Greenhouse, International Tax, Tax
“Breaking Up is Hard: Euro Divergence Tax Consequences”
Tax Notes Today, January 23, 2012
Robert Dilworth warned that, if countries pull out of the Euro and revert back to their local currency, for tax purposes “there’s a greater possibility of much more variability in estimating the currency value in a divergence scenario” because “there’s no guarantee” of fixed exchange rates with local currency. “This isn’t an issue you can plan around,” Mr. Dilworth cautioned, because the result will hinge on “U.S. tax deeming conventions that were designed for occurrences in a more orderly world.”
Robert H. Dilworth, International Tax, Tax
“Judge Rejects $13.6 Million Deduction for Trust Formed to Pay Tax Liability”
Bloomberg BNA Daily Tax Report, January 20, 2012
Bobby Burchfield, Elizabeth Erickson, Jean Pawlow, Justin Holmes and Kevin Spencer were noted as co-counsel in litigation over a corporation’s claimed interest expense deduction for a trust formed to make payments on a subsidiary’s contested tax liability.
Bobby R. Burchfield, Elizabeth Erickson, Justin M. Holmes, Jean A. Pawlow, Kevin Spencer, International Tax, Tax, Trial
“Pushing Aside Sound and Fury on Click-Through Nexus Laws”
Sales & Use Tax Monitor, January 15, 2012
Arthur Rosen asserted that the issue of whether online retailers should be subject to state sales tax is “being driven by [in-state] retailers who believe they are being discriminated against, and by state governments who want more revenue.” Mr. Rosen noted that because advertising from out-of-state does not establish a sales tax nexus while personal selling does, e-commerce firms with websites need to verify “if what they are doing is advertising or really face-to-face sales on behalf of a retailer.”
Arthur R. Rosen, State & Local Tax, Tax
2011
“Cloud Computing Emerges as Tax Conundrum as States Seek to Squeeze ‘New Paradigm’ into Old Ways of Thinking”
BNA Daily Tax Report, December 29, 2011
Arthur Rosen said that even though use of cloud computing services “is really a throwback to an old idea” of computer time-sharing with third parties, cloud computing vendors are so uncertain about the tax status of their services that they are charging their customers state sales tax – which some customers may refuse to pay, or may seek refunds on from the state. Mr. Rosen noted that New York has been among the more aggressive states in taxing pre-written software as tangible personal property, but he contended that the state has little legal or factual basis for its position.
Arthur R. Rosen, State & Local Tax, Tax
“Treasury, IRS Officials Preview Coming International Guidance”
Tax Notes Today, December 19, 2011
David Noren speaking at the annual IRS-GWU international tax conference, said that one of the most interesting aspects of recent IRS guidance on the subpart F foreign base company sales income rules was the statement in the preamble that the IRS and Treasury continue to study additional foreign base company sales income issues and may issue future guidance on when a branch should be treated as a separate corporation under the branch rule and the scope of, and relationship between, the foreign base company sales and foreign base company services rules.
David G. Noren, International Tax, Tax
“IRS Takes Hard Line on Interest-First Ordering Rules in Debt-for-Equity Regs”
Tax Notes Today, December 14, 2011
Blake Rubin, at a December BNA Tax Management luncheon in Washington, questioned the IRS authors of recently issued debt-for-equity regulations regarding the tax treatment of whether the creditor could take a loss on certain elements in such exchanges.
Blake D. Rubin, International Tax, Tax
“Ways and Means May Look at Subpart F in Territorial System, Committee Aide Says”
BNA Daily Tax Report, December 9, 2011
David Noren was noted as co-leader on a panel hosted by the D.C. Bar Section of Taxation’s International Tax Committee, which discussed specific changes that might be required under a proposal before the House Ways & Means Committee to move the U.S. toward a territorial tax system.
David G. Noren, International Tax, Tax
“Moves and Appointments”
Tax Notes Today, December 8, 2011
Madeline Chiampou, Nathaniel Dorfman, Caroline Hong Ngo, Lindsay LaCava and Timothy Shuman were noted as the Tax Practice associates named to McDermott’s partnership effective January 1, 2012.
Madeline M. Chiampou, Nathaniel J. Dorfman, Lindsay M. LaCava, Caroline Hong Ngo, Timothy S. Shuman, International Tax, State & Local Tax, Tax
“Taxwriters, Panelists Agree on Need to Reform Taxation of Financial Products”
Tax Notes Today, December 7, 2011
Andrea Kramer told a joint Congressional panel considering tax overhaul for financial products that “from an administrative and policy standpoint, … it would be very, very difficult to impose a mark-to-market system” for valuation of privately traded securities and similar products. She suggested instead that avoiding abuse and encouraging economic development can be better accomplished by “putting more transactions into the hedging and risk management bucket.”
Andrea S. Kramer, International Tax, Tax
“Congress Considers Tax Reform of Financial Products”
Accounting Today, December 7, 2011
Andrea Kramer asserted at a joint Congressional hearing that, although there is much focus on how derivative financial products may have “inappropriate or illegitimate uses to game the tax system,” derivatives are in fact “economically valuable financial products and are principally used for legitimate risk management and hedging purposes.”
Andrea S. Kramer, International Tax, Tax
“Tax Derivatives Gets Capitol Hill Airing”
Wall Street Journal, December 6, 2011
Andrea Kramer told a joint Congressional committee considering changes for taxing financial products that “whatever changes are made, there will be new opportunities” for tax avoidance, adding her view that “eighteen months would be the outer limit” before such avoidance strategies appeared.
Andrea S. Kramer, International Tax, Tax
“Strategies to Minimize Taxes Under Senate Scrutiny”
Investment News, December 6, 2011
Andrea Kramer advised a joint Senate-House hearing that, even if Congress imposed tighter tax rules for derivative financial products, it could take no more than 18 months for the creation of new products that skirt the goal of the rules. “Wherever there is an opportunity then there is going to be planning” to create such products, Ms. Kramer said.
Andrea S. Kramer, International Tax, Tax
“U.S. Studies Derivatives That ‘Game’ Tax Rules”
Bloomberg News, December 6, 2011
Andrea Kramer said at a joint Congressional hearing on curbing financial product tax abuse that using a mark-to-market asset valuation system to “actually accomplish the reforms we’re talking about” would pose administrative and policy difficulties for assets that aren’t publicly traded or for which the value can’t be easily determined.
Andrea S. Kramer, International Tax, Tax
“The Best of 2011”
State Tax Notes, December 5, 2011
Arthur Rosen was named by this authoritative publication as “one of the top 10 individuals who influenced tax policy and practice” and “one of the top 10 tax lawyers” for 2011.
Arthur R. Rosen, State & Local Tax, Tax
“Why is the Supreme Court Reluctant to Take Up a State Tax Appeal?”
Tax Incentives Alert, December 01, 2011
Arthur Rosen was quoted about why the Supreme Court is often loath to hear a tax dispute. “I think that what you see is an unwillingness by the Supreme Court to deal with cases that it feels should be resolved by Congress. You look at Quill, and the court said Congress should deal with it because it is a Commerce Clause case revolving interstate commerce and Congress should regulate that. Most of the cases that are denied are dormant Commerce Clause cases.”
Arthur R. Rosen, State & Local Tax, Tax
“Washington’s Best Lawyers”
Washingtonian, December 2011
Included in this assessment of “Washington’s very best legal talent” were McDermott DC office partners Margaret Warner (insurance litigation), Stephen Becker and Joel Freed (both intellectual property) and Blake Rubin (tax).
Stephen A. Becker PC, Joel M. Freed, Blake D. Rubin, Margaret H. Warner, Insurance, Intellectual Property, IP Litigation, Patent Prosecution, Tax
“Lawyers Giving Back: Bundles of Love”
ABA Journal, December 2011
Menna Eltaki, Latonia Keith, Carol Harrington and Elise Beyer were pictured creating “Bare Necessities Bundles” of clothing, diapers and personal care items for women and children at a local Chicago women’s treatment center, as part of the inaugural “Together for a Cause” event co-sponsored by McDermott and LexisNexis.
Carol A. Harrington, Latonia Haney Keith, Elise J. McGee, International Tax, Private Client, Pro Bono & Community Service, Tax
“Hearing on Financial Products Taxation Announced”
BNA Daily Tax Report, December 1, 2011
Andrea Kramer was noted as one of the witnesses slated for a December 6 joint hearing of the Senate Finance and House Ways & Means Committees to consider tax reform and taxation of financial products.
Andrea S. Kramer, International Tax, Tax
“Power Circuit: Morgan Lewis Loses One Partner, Gains Another”
Washingtonian, November 30, 2011
Christopher May, Rita Weeks, David Crump, Alison Levin Nadel, Nathaniel Dorfman, Caroline Hong Ngo, Timothy Shuman, Amy Hooper Kearbey, Joanna Kerpen were cited as the Firm’s ten new Washington, D.C. partners effective January 1, 2012. The article also said that the Firm welcomed a new partner from Morgan Lewis & Bockius, Karol Lyn Newman who has joined the Energy Advisory practice.
David O. Crump, Nathaniel J. Dorfman, Amy Hooper Kearbey, Joanna C. Kerpen, Christopher L. May, Alison Levin Nadel, Karol Lyn Newman, Caroline Hong Ngo, Timothy S. Shuman, Rita Weeks, Employee Benefits, Energy Advisory, Health, Intellectual Property, International Tax, IP Litigation, Patent Prosecution, Tax
“Movers & Shakers: Nov. 29, 2011”
Deal Pipeline, November 29, 2011
The 29 lawyers named new partners in McDermott for 2012 were listed. They come from 10 different practice areas and groups, with Tax, Employee Benefits and Trial having the most representatives.
“Feds, State Move Cautiously on Internet Sales Tax Plans”
Boston Business Journal, November 25, 2011
Arthur Rosen defined the primary issue for making Internet retailers pay state and local sales tax as, “Can a state require a seller with no physical presence in a state to collect and remit sales tax on sales made to customers in that state.” Mr. Rosen noted that controversy over taxing out-of-state retailers dates at least to the 1930s, when mail-order catalogues were the concern.
Arthur R. Rosen, State & Local Tax, Tax
“U.S. Chamber Raises Concerns on Republican Overseas Tax Plan”
Bloomberg News, November 22, 2011
David Noren testified at a congressional hearing about a proposal to move toward a territorial tax system used by most other countries, in which overseas corporate earnings are exempt from domestic taxation. He said that there is a danger that the proposal tries too much to protect the domestic tax base. “The one thing that could push us outside of international norms would be if we got too aggressive in pushing base erosion and interfering with common business models,” Mr. Noren said.
David G. Noren, International Tax, Tax
“Treasury Issues Regs Targeting Misinterpretation of All-Cash D Rules”
Tax Notes Today, November 21, 2011
Michael Wilder presented nearly two years ago at a BNA Tax Management luncheon an interpretation of all-cash D reorganization rules that some tax practitioners suggest is now at least partially contained in a set of temporary and proposed regulations issued by the Treasury Department to clarify the issue.
Michael J. Wilder, International Tax, Tax
“Territorial Draft’s Deemed Repatriation is Best Available Choice, Experts Testify”
Tax Notes Today, November 18, 2011
David Noren supported a provision for eight-year repatriation of U.S. corporations’ offshore profits as part of a bill to institute a territorial system of international taxation, saying it gives companies time to deal with possible liquidity issues when repatriating money invested overseas.
David G. Noren, International Tax, Tax
“Complex Out-from-Under Transaction ‘Particularly Obnoxious,’ IRS Official Says”
BNA Daily Tax Report, November 18, 2011
Lowell Yoder was noted as one of several speakers from major law firms at a November 16 Practising Law Institute conference on complex cross-border taxation issues.
Lowell D. Yoder, International Tax, Tax
“Tax Attorneys Praise Camp Territorial Plan at Hearing but Seek Changes to Subpart F”
BNA Daily Tax Report, November 18, 2011
David Noren observed that the success of congressional efforts to move the U.S. toward a territorial tax system with domestic tax exemption for offshore corporate earnings “will depend critically on the resolution of key design issues raised by exempting foreign subsidiary dividends.” Depending on how this and other issues are addressed, he added, a territorial tax system “could increase, decrease or have a roughly neutral effect on the overall U.S. tax burden on U.S.-based multinationals.”
David G. Noren, International Tax, Tax
“Supreme Court Finds State Tax Cases as Appetizing as Rhubarb, But Why?”
State Income Tax Monitor, November 15, 2011
Arthur Rosen attributed the US Supreme Court’s reluctance at considering state and local tax cases to “an unwillingness by the Supreme Court to deal with cases that if feels should be resolved by Congress,” particularly those related to the Commerce Clause. However, Mr. Rosen stated that he believes “the court needs to be more active. There are three branches of government and they overlap.”
Arthur R. Rosen, State & Local Tax, Tax
“FTC Splitter Guidance to Target Even Nonabusive Planning”
Tax Notes Today, November 15, 2011
Lowell Yoder noted, in connection with a discussion of proposed foreign tax credit rules at the annual Federal Tax Conference sponsored by the University of Chicago Law School, that in 2008 U.S. corporations claimed $100 billion worth of the credits.
Lowell D. Yoder, International Tax, Tax
“Tax Break Package Ballooning, with Business Interests Trying to Lead the Legislation”
Chicago Tribune, November 6, 2011
Fred Ackerson assessed current attempts in the Illinois legislature to expand the focus of a business tax cut bill by saying that in such efforts “public policy usually comes in No. 3” behind state revenue needs and business tax relief desires. “In terms of a coherent policy that shapes it all so it makes sense, that happens maybe once every other generation,” he added.
Fred M. Ackerson, State & Local Tax, Tax
“U.S. Captive Tax Issues”
Captive Review, November 2011
Thomas Jones spoke extensively about the tax liability potentially faced by captive insurers and risk retention groups under the Dodd-Frank Act. Noting that the most important tax issue for captive owners is risk distribution regarding risk pooling, Mr. Jones explained: “Some of the issues you see in some pools are of size, not all pools were created equal. Some may stretch limits of the imagination with the types of risk [covered].” When assessing risk, he continued, “the IRS see[s] captives as a source of government revenue … particularly in regard to disallowing deductions for premiums.”
Thomas M. Jones PC, International Tax, Tax
“Practitioners Troubled by ‘Schizophrenic’ Memo Involving Worthless Partnership”
Tax Notes Today, October 26, 2011
Michael Wilder spoke at an ABA Section on Taxation meeting regarding distortions caused by an IRS memorandum on the tax consequences of an insolvent foreign corporation’s reclassification as a partnership, suggesting that if the IRS or Treasury Department consider similar situations in the future “they might consider the model that the consolidated return rules would have for this transaction to eliminate the distortions.”
Michael J. Wilder, International Tax, Tax
“Letter Ruling May Indicate Changes Elective Beyond Spinoffs”
Tax Notes Today, October 25, 2011
Michael Wilder was noted as questioning the IRS associate chief counsel (corporate) at an ABA Section of Taxation meeting regarding a new ruling on Section 355 spinoffs. The IRS counsel expressed tentative agreement with Mr. Wilder’s question on whether taxpayers could use the new ruling to avoid Section 304 when extracting profits from an acquiring corporation.
Michael J. Wilder, International Tax, Tax
“Status of BAT Bill Unclear as Congress Considers State Revenue Impact”
State Tax Today, October 19, 2011
Arthur Rosen said a Congressional Budget Office estimate of a $2 billion cost to the states from a bill to establish a national standard for state business activity tax nexus based on physical presence “should not create any impediment at all” to passing the bill because the figure “represents a miniscule percentage of the taxes collected by the states.” Mr. Rosen noted the benefits to business of a single standard, saying, “The concept of exporting tax to those who are not part of a government’s constituency or local society is politically attractive but just wrong.”
Arthur R. Rosen, State & Local Tax, Tax
“’Ugly Betty’ Star at CFW Luncheon”
Windy City Times, October 12, 2011
Andrea Kramer, who is Chair of the Chicago Foundation for Women (CFW), was noted as being the event co-chair for the CFW’s 26th Annual Luncheon on October 3.
Andrea S. Kramer, International Tax, Tax
“Amazon Invites California Affiliates to Return”
TaxAnalysts/State Tax Today, October 6, 2011
Arthur Rosen, commenting on California’s one-year suspension of enforcing state tax nexus requirements against business affiliates of Amazon.com, said that such “click-through nexus provisions are very, very weak because in almost every factual situation they don’t meet the Scripto/Tyler Pipe requirement” that a business affiliate be “significantly associated” with a remote seller’s ability to establish and maintain a state sales market.
Arthur R. Rosen, State & Local Tax, Tax
“U.S. Practitioners Examine Draft Language Implementing Obama Proposal on Subpart F”
BNA Daily Tax Report, October 5, 2011
Steven Hannes, commenting on the Administration’s Subpart F proposal to tax excess income from transfers of intangibles to low-tax jurisdictions, said that it is unclear what constitutes “use” of an intangible under the proposal. “Just because you used a patent, is 100 percent of gross income from the sale of property within the scope of the proposal?” he asked. “The way the statute seems to work is that once there is an intangible and the excess intangible income is exceeded, the excess is Subpart F income whether or not it is solely attributable to the intangible.”
Steven P. Hannes, International Tax, Tax
“Industry Insider: Tom Jones and LJ Fallon”
Cayman Financial Review, Fourth Quarter 2011
Thomas Jones predicted that the clinical integration encouraged by the health reform law will make healthcare providers “much larger, with more services and more risks, although to achieve better care at a lower price they will have to be integrated risks. The conventional wisdom is that this will stimulate captive [insurer] growth” in the Caymans and other regions. Mr. Jones called the captive insurance industry “not directly, substantially affected by financial turmoil,” adding: “The captive industry is resilient. Captive start-ups are just as robust today as they’ve ever been.”
Thomas M. Jones PC, International Tax, Tax
"McDermott Advises Munich Re and Methorios Capital S.p.A. on Key Matters"
TopLegal Magazine, September 27, 2011
McDermott Italy is cited in relation to our work in assisting Munich Re and Methorios Capital S.p.A. on a corporate, antitrust and tax matter. Partners Filippo Mazza, Mario Martinelli and Veronica Pinotti are mentioned.
Mario Martinelli, Filippo Mazza, Veronica Pinotti, Antitrust & Competition, Corporate, International Tax, Italy, Tax
“McDermott Wins Asylum for Woman in Trafficking Case”
Chicago Daily Law Bulletin, September 21, 2011
Brett Johnson said that a McDermott pro bono team won asylum for a sex trafficking victim from Democratic Republic of Congo by “present[ing] the case as one of persecution” because “the odds of her being sex trafficked again were very high.” On the team with Mr. Johnson were Brett Bachtell, Mennatallah Eltaki, Katherine Schon and Sandra McGill (who as a French speaker did most of the communication with the client). Pro Bono Counsel Latonia Haney Keith said the team’s success “speaks a lot to the quality of work and dedication” the firm has in asylum cases.
Brett E. Bachtell, Brett R. Johnson, Latonia Haney Keith, Sandra P. McGill, Katherine M. Schon, Employee Benefits, Intellectual Property, Pro Bono & Community Service, Tax
“Thank You, State Tax Notes”
State Tax Notes, September 5, 2011
Arthur Rosen, a regular contributor to this highly influential publication, was listed among several other tax practitioners who were called “the most influential people in the business right now.”
Arthur R. Rosen, State & Local Tax, Tax
“ConocoPhillips Joins Marathon in Surge of Tax-Free Spinoffs”
Bloomberg Government, August 31, 2011
Michael Wilder, who reviewed proposed corporate spinoffs while serving with the Internal Revenue Service, said that the favorable tax treatment of such transactions is balanced by the risk of not getting a favorable IRS ruling and an unqualified opinion from tax advisers – which could lead to a much higher tax rate. “You’re betting the whole company if you trip up on a spin,” he observed.
“Practice Spotlight: Nick Lum”
Thomson Reuters Business Law Currents, August 30, 2011
Nicholas Lum discussed in this interview how his Silicon Valley practice has spurred him to be a technology innovator. “I spend a lot of time with entrepreneurs,” he said, “and their contagious creativity has caused me to think about my life – including the way I practice law – with a critical and creative eye … [to] work faster and smarter.” Mr. Lum invented a software application called “BeeLine” that uses color gradients to help people read online text up to 30% faster. As he asked, “With so many things to read – news, emails, blogs, briefs, memos, textbooks – who wouldn’t want to read faster?”
“Jennifer H. Alexander Appointment”
TaxAnalysts, August 26, 2011
Blake Rubin speculated that the appointment of tax practitioner Jennifer Alexander as senior counsel (partnerships) in the Treasury’s Office of Tax Legislative Counsel could mean the withdrawal of proposed loss disallowance regulations for partnerships, since they were “one of her pet peeves in practice.” Mr. Rubin called Ms. Alexander “a terrifically talented and energetic practitioner.”
“Governors Urge Congress to Oppose BAT Nexus Legislation”
State Tax Today, August 5, 2011
Arthur Rosen, saying it “has clearly been the responsibility of Congress” to regulate state taxation in interstate commerce, rejected as “clearly not true” a charge by state governors that a new federal tax bill usurps state taxing authority on businesses within their borders. “A simple reading of the bill shows that it explicitly provides states with full authority to combat” any business attempts at state tax evasion, Mr. Rosen asserted. He added that small businesses support the bill’s tax standardization effort as eliminating “an undue burden to have to worry about paying business activity tax to all these jurisdictions where [they] may have customers.”
“Facing the ‘Dark Side’ of Captives Regulation”
Risk and Insurance Online, August 1, 2011
Thomas Jones noted that state laws allowing life insurers to form offshore securitization captives, where the insurers can keep specified reserves and then sell debt interests in the facility, are not in high demand because they don’t bear risk. However, Mr. Jones added, they are an important capital-tapping tool for some insurers.
“Government to Decide on Addressing LLC Conversion Ruling This Year”
Tax Notes Today, July 27, 2011
John Lutz was one of two principal authors of a New York State Bar Association Tax Section report that provided guidance recommendations for anticipated new Treasury Department rules on the tax consequences of terminating a limited liability company’s partnership status.
“New FAQs on Schedule UTP Offer Necessary Clarifications, Practitioners Say”
Tax Analysts, July, 20 2011
Robin Greenhouse said that “corporate taxpayers will be pleased with the additional guidance” recently provided by the IRS for making uncertain tax provision (UTP) disclosures. She singled out one particular “welcome departure” from previous UTP filing instructions, which now “extends the NOL/credit carry forward transition rule … to post-transition periods,” rather than requiring repeated disclosures.
“Papering Over the Clearing of Derivatives”
Money Management Executive, July 18, 2011
Andrea Kramer reminded fund managers that the central clearing of derivatives trades required by the Dodd-Frank Act will mean they must make such documentation decisions as “what type of category of firm they fit under, which contracts they will centrally clear and what new contracts they will enter into with executing parties and clearing brokers.” To do this, she added, “Some fund managers and dealers would prefer to negotiate additional clauses to their futures agreements while some would like to add to their ISDA agreements.”
“LB&I Directive Limits Strict Liability Penalties Under Economic Substance Doctrine”
Tax Notes Today, July 18, 2011
Michael Wilder praised a new IRS directive that clarifies how and when examiners can apply the economic substance tax doctrine to assess taxes on transactions. “The IRS shouldn’t willy-nilly throw economic substance at everything. I applaud the IRS” for making the clarification,” he asserted. Mr. Wilder noted the benefits to business of the clarification: “The idea that you can face economic substance penalties if somehow a judge saw it differently from how you did is very scary and discouraged a lot of transactions, which I don’t think was the intent” of tax law.
“CFTC Whistleblower Rule Draws Scrutiny”
MarketWatch, July 15, 2011
Andrea Kramer pointed out that the Commodity Futures Trading Commission may not have enough funding to pursue whistleblower tips on commodity trades and swaps, as now authorized by the Dodd-Frank Act. Moreover, she added, there is confusion about “what are the swaps in the first place? Answers to questions like that will tell the market participants whether they are in Dodd-Frank [whistleblower provisions] or not.”
“Open Letter to Mayor Emmanuel on Maternity Leave”
Huffington Post, July 14, 2011
Andrea Kramer predicted that the city of Chicago’s plan to institute paid maternity leave for city employees “will open doors for women, ensuring that raising health families and building successful careers are no longer so hard to reconcile.” Ms. Kramer made the statement in her role as board chair of the Chicago Foundation for Women.
“Regulators May Not Have Authority to Delay Dodd-Frank, Warn Lawyers”
Risk Magazine, July 8, 2011
Andrea Kramer asserted that, although some say a CFTC and SEC extension to implement Dodd-Frank Act provisions may allow traders to argue that an unfavorable swaps deal should be canceled as illegal, “I really don’t see anything in the proposed extension that gives participants legal grounds to back out of otherwise binding contracts.” She added that she “can’t see courts saying contracts would be unenforceable” because of the extension.
“House Judiciary Committee Passes BAT Nexus Bill”
State Tax Today, July 8, 2011
Arthur Rosen praised legislation approved by the House Judiciary Committee that would establish a national standard for the kind of state physical presence that online retailers must have for required state sales tax collection. Expressing optimism about the bill’s chances in the full House and the Senate, Mr. Rosen said of the Committee’s action: “It shows that there is clear bipartisan support … and that the time has come for the bill to become law.”
“Connecticut Tax Commissioner: Click-Through Nexus Doesn’t Burden Amazon”
State Tax Today, July 1, 2011
Arthur Rosen criticized a Connecticut ruling that a website hyperlink to an in-state company required a remote online retailer to collect state sales tax, saying that the in-state activity should be “significantly associated” with the retailer’s market presence. Citing U.S. Supreme Court rulings on the issue, Mr. Rosen asserted, “The Constitution is not a loophole.” He did not think the Court would take another similar case, saying Congress was best positioned to address the remote sales tax collection issue.
“McDermott Lawyer Will Lead Foundation”
Chicago Daily Law Bulletin, June 30, 2011
Andrea Kramer commented on her selection as Chair of the Chicago Foundation for Women. “I care very much about gender diversity, about diversity in the [legal] profession," said Ms. Kramer. "I want to see more women advance in leadership and philanthropy, especially women from diverse backgrounds." Heading the Foundation (which she called “the leading funder of nonprofit programs that support women and girls in the Chicago area”) is one of Ms. Kramer’s many community leadership activities. “It energizes me, giving something back … I get back more than I give out.”
“States Vie for Their Share of Equity Comp”
CFO.com, June 17, 2011
Arthur Rosen noted that, even though “everybody is saying” states are doing more to tax equity compensation awards given to executives, in actual practice, “while states are being a little tougher, it’s not at a whole new level.” Mr. Rosen said that the number of executives who move to states with low or no income tax in order to cash in equity awards is “increasing slightly,” but added that more states are using independent contractors to collect tax from persons who make such moves. For companies granting awards, Mr. Rosen concluded, “the problem with complying with the laws is the administrative burden.”
“Someone Might Sue N.Y. to Collect More Taxes from Your Company”
State Income Tax Monitor, June 15, 2011
Matthew Boch, Catherine Battin, and Jane May were cited here as authors of an earlier article about how New York State has become the first to authorize qui tam whistleblower claims regarding tax matters. This summary noted that the authors had called the concept of circumventing the normal audit/appeal process “unsettling,” particularly if other states follow suit.
Catherine A. Battin, Matthew Boch, Jane Wells May, State & Local Tax, Tax
“CFTC Delays Implementation of Some Derivatives Rules”
The Deal Pipeline, June 14, 2011
Andrea Kramer said that a decision by the CFTC to resolve questions about the timing of new swaps regulations means that swaps users “are not going to be held to a ‘read our minds’ standard” by the regulatory agencies. Ms. Kramer added regarding the regulators that “the world is going to continue to spin until they get it right. They are not going to chase after” swaps dealers and recipients until the rulemaking process is complete.
“As Regulators Tinker with New Rules for Derivatives, a Deadline Looms”
Compliance Week, June 14, 2011
Andrea Kramer spoke extensively about the uncertainties facing derivatives traders as regulators try to formulate rules mandated by the Dodd-Frank Act. She said that many of her clients “are struggling with … trying to figure out how to get the contracts in place for doing cleared swaps, because once the new rules are put in place many contracts are going to need to be cleared on an exchange.” But, she added about exchange rules and margin requirements, “None of those have been set yet.”
“CME Group Relocation Threat May Veil Push for Reformulation of State Tax Burden”
Chicago Tribune, June 12, 2011
Jane Wells May said of a temporary increase in the Illinois corporate income tax, which reportedly has led CME Group to seek a change in the income tax formula for financial trading: “These rules really come down to: What income can Illinois tax?”
Jane Wells May, State & Local Tax, Tax
“$1.23 Billion Golf Buy”
Legal Bisnow, June 6, 2011
Thomas Conaghan called getting the deal signed for the Fila Korea/Mirae Asset Private Equity purchase of the Titleist and Footjoy golf equipment lines a “three month sprint” during which he was “lucky if I got six hours” of sleep a night given the 13-hour US-Korea time difference. Mr. Conaghan said the deal was more than a business transaction, it was front page news in Korea. The article noted that Joel Grosberg managed the transaction’s US and foreign antitrust approvals, Daphne Trotter led the environmental review of the global manufacturing facilities involved, James Riedy led the international tax structuring team, and more than 40 McDermott timekeepers were involved overall.
Thomas P. Conaghan, Joel R. Grosberg, James A. Riedy PC, Daphne W. Trotter, Antitrust & Competition, Corporate, OSHA, MSHA & Catastrophe Response, Tax
“McDermott Will & Emery Opens in Paris”
International Tax Review, June 1, 2011
Hervé Bidaud is noted as a member of McDermott’s new Paris office. Mr. Bidaud has extensive experience in international taxation, from the set-up of companies to mergers and acquisitions, restructuring and transfer pricing.
“Implementation of Dodd-Frank – Preparing for the Changes Ahead”
Thomson Reuters Business Law Currents, May 26, 2011
Andrea Kramer, whose bylined article reflects her keynote address to a major traded derivatives operations conference, wrote that the more than 240 rulemakings mandated by the Dodd-Frank Act pose “a clear danger sign that we have asked too much of our regulators too soon.” As the SEC and CFTC implement these provisions, Ms. Kramer wrote, “the issue must be in ‘getting it right,’ not in getting it done by ‘such and such a date.’ … If our regulators are rushed, the likelihood of making our markets better goes down and the inevitability of really screwing them up goes up.”
“FTF Panel: Start Preparing Now for OTC Clearing”
Financial Technologies Forum, May 25, 2011
Andrea Kramer told a conference on exchange traded derivatives that for the Dodd-Frank Act to require the SEC and CFTC to develop a regulatory framework for OTC derivatives trading in a year amounted to saying, “Do for the OTC derivatives markets what the equities markets took 70 years to do. That’s clearly the most outrageous irony of Dodd-Frank. It gives new meaning to the word hubris.” Calling deadlines already missed “a danger signal,” Ms. Kramer urged market participants to comment as the rulemaking process continues. “You have to assume that Dodd-Frank will not take care of itself. We need to be part of the process,” she said.
“Running the Numbers, Negotiating Are Key to Handling 704(c) Allocations, Official Says”
BNA Daily Tax Report, May 12, 2011
Andrea Macintosh Whiteway was noted as a speaker at the Practicing Law Institute conference on tax planning that focused on allocating gains and losses from contributed property under Section 704(c). She examined the so-called “Section 754 trap” regarding partnership property.
Andrea Macintosh Whiteway, Tax
“Law Firm Opens in Paris”
Financial News, May 2, 2011
McDermott’s new Paris office was cited as an expansion of the Firm’s “international platform,” with new partners Jacques Buhart, Thibaud Forbin, Hervé Bidaud and Jilali Maazouz noted.
Hervé Bidaud, Jacques Buhart, Thibaud Forbin, Jilali Maazouz, Corporate, Employee Benefits, Tax
“McDermott to Open Paris Office”
American Lawyer, April 26, 2011
Peter Sacripanti said that the opening of the Firm’s Paris office (its seventh in Europe) has been “a strategic target for over a decade,” made possible by finding “the right partners to fit our platform and culture.” Jacques Buhart, who joins McDermott as head of the new office and who expects the majority “if not all” of his major clients to follow him, said that the office’s 12-lawyer team “has a track record of achieving growth at each of our former firms, and we are nurturing the same ambition at McDermott.”
Jacques Buhart, Peter John Sacripanti, Antitrust & Competition, Corporate, Employee Benefits, Tax
“McDermott Will & Emery Hires Tax Partner for Paris Office”
International Tax Review, April 26, 2011
Hervé Bidaud, a “leading tax lawyer” with more than 30 years of international taxation experience, was noted as one of the partners joining McDermott’s new Paris office.
“McDermott Will & Emery Opens in Paris”
Lawyer Monthly (UK), April 26, 2011
Jacques Buhart, head of the new Paris office, said that the new lawyers are “all delighted to join McDermott,” praising the Firm’s “strong capabilities” and “overarching platform for each of us to service French and international clients in their … operations and litigations.” Mr. Buhart added that the new office team consists of “former colleagues who share the same vision … [that] will help us quickly become one of the major players in the Paris market.”
Jacques Buhart, Antitrust & Competition, Corporate, Employee Benefits, Tax
“McDermott Builds Paris Base around Herbies Hire”
The Lawyer (UK), April 25, 2011
Hugh Nineham, head of McDermott’s European practice, called the Firm’s announcement of a new Paris office “an exciting moment for us.” He noted that the office, to be headed by former Herbert Smith partner Jacques Buhart, means, “Now we can say to [clients], ‘Call us in Paris,’ and that will open a number of doors for us.”
Jacques Buhart, Hugh Nineham, Antitrust & Competition, Corporate, Employee Benefits, Tax
“Who’s In, Who’s Out”
Deal Pipeline, April 25, 2011
Jacques Buhart (corporate and competition law), Thibaud Forbin (mergers and acquisitions), Hervé Bidaud (tax) and Jilali Maazouz (labor and employment) were all noted for their extensive experience and diverse backgrounds before joining McDermott as partners in the new Paris office.
Hervé Bidaud, Jacques Buhart, Thibaud Forbin, Jilali Maazouz, Antitrust & Competition, Corporate, Employee Benefits, Mergers & Acquisitions, Tax
“Practice Spotlight: Andrea S. Kramer”
Thomson Reuters “Business Law Currents,” April 19, 2011
Andrea Kramer outlined post-Dodd-Frank Act trends in the derivatives markets. She singled out “the different clearing systems that are currently being debated with the regulators [which] could give us very different tax results. [T]he tax trends we are seeing now are basically following the ways in which the markets are moving and how they are being regulated. That will shape how the tax rules ultimately apply.” In this and other areas, the “CFTC is moving faster than the speed of sound with proposed regulations and rules, while the SEC is moving with much more caution.” Ms. Kramer noted that most affected by Dodd-Frank will be transactions “that are customized, highly structured and that have a special business purpose.”
Andrea S. Kramer, Derivatives, Structured Finance and Financial Products, Energy Advisory, Tax
“Varying Methods Among States Complicate Sales and Use Tax Application in E-Commerce”
Washington Internet Daily, April 15, 2011
Arthur Rosen asserted that, in claiming that software purchasers are buying a license and applying tax to the purchasers’ location, “New York is trying to turn a non-taxable service into tangible personal property. New York is saying because you press ‘enter,’ you’re having an effect on the software located on the service provider’s computer.” Mr. Rosen added his belief that “the state’s position is wrong,” and said he may challenge it in New York County Supreme Court.
“Owner of Disregarded Entity is ‘Taxpayer’ Under Proposed Indebtedness Regulations”
BNA Daily Tax Report, April 13, 2011
Andrea Whiteway said that a new IRS regulation on the tax treatment of disregarded entity ownership structures "merely states what most believed the rule" – specifically "if the entity is not a taxpayer for other tax purposes, it is not a taxpayer for purposes of these rules." Whether the entity is a single-owner LLC, grantor trust or Subchapter S subsidiary, according to Ms. Whiteway, it is barred from "availing itself of certain exclusions from cancellation of indebtedness income." She added that this creates "a very difficult position where the entity can be in bankruptcy while the owner is not."
Andrea Macintosh Whiteway, Tax
“Consider Whether IRS ADR Avoids Delays with Credits; Fast-Track Program Fits Well”
Tax Incentives Alert, April 2011
Elizabeth Erickson asserted that she “can’t think of a reason not to” use alternative dispute resolution to speed up an IRS audit of federal tax credit claims, calling the fast-track option “perfect” and “a great idea” for disputes over research credits. “The downside is that you are not going to take as aggressive a position on the issue as you might want to,” she added. “But overall I’d say that it is going to benefit you to pursue an ADR.”
“Passion for Problem Solving”
Tax Diversity, March 10, 2010
Kristen Hazel was profiled for her two decades of tax law practice in which she has had “the best of both worlds” working both within McDermott and with the in-house tax departments of her corporate clients. Such a strong business emphasis has given her an entrepreneurial focus. “In the environment where I have been practicing,” Ms. Hazel said, “it is truly your capabilities that are assessed and if you have the capacity to do the work that is required, that is what is going to help you progress.” She advised young lawyers to develop a passion for their own careers, saying: “You should wake up in the morning and think, ‘This is my challenge for the day. And I’m excited about it.’”
“What Do Corporate Tax Managers Want?”
Tax Analysts, March 3, 2011
Steven Hannes urged corporate tax managers not to view transfer price reporting as a mere tax compliance exercise, warning specifically about making inadvertent admissions of interest through the use of transfer pricing studies. He noted that all transfer pricing documentation created for tax compliance will be given to and read by the IRS, which will take special note if such adjectives as “valuable” appear. These documents are “really like a tax return,” Mr. Hannes cautioned.
“Tax Court's ‘Canal' Ruling Has Implications For Debt-Financed Distributions, Penalties”
BNA Daily Tax Report, March 3, 2011
Andrea Whiteway termed “troubling” the U.S. Tax Court's Canal Corp. v. Commissioner decision that disallowed a Big 4 accounting firm’s opinion on whether a transaction was taxable, adding that the court’s decision not to take into account the intercompany obligation that was a central part of the transaction was unsettling. “The opinion doesn't analyze why you can ignore an intercompany obligation,” Ms. Whiteway said. “Are we now to worry that all contractual undertakings between parent and subsidiary will not be respected by the courts?” She said Tax Code Section 752 disregarded entity regulations support respecting such arrangements.
Andrea Macintosh Whiteway, Tax
“Tax Court's ‘Canal' Ruling Has Implications For Debt-Financed Distributions, Penalties”
BNA Daily Tax Report, March 3, 2011
Jon Finkelstein, commenting on the U.S. Tax Court's Canal Corp. v. Commissioner decision that a leveraged partnership transaction was taxable under the partnership disguised sale rules, noted that under the rules debt-financed distributions to a partner are taken into account only to the extent that considerations involved are greater than that partner's allocable share of the liability.
A key question, he said, is that if the transferee partner bears the economic risk for the liability
that is the source of the distribution, that distribution will not exceed the partner's allocable share of the liability and will not be taken into account under the Tax Code.
“Practitioners Struggle with Canal Decision's Impact on Reasonable Cause”
TaxAnalysts, March 3, 2011
Andrea Whiteway had multiple criticisms of the U.S. Tax Court’s Canal decision that a leveraged partnership transaction was a disguised sale. She called the court’s finding that one of the partners was too thinly capitalized “the most troubling aspect of the decision on the merits,” and added that although the court was critical that the transaction indemnity covered only the loan's principal, Section 752 regulations contain a similar example – “and there's no suggestion in the example that a guarantee of principal but not interest is somehow not a real guarantee.”
Andrea Macintosh Whiteway, Tax
“Practitioners Struggle with Canal Decision's Impact on Reasonable Cause”
TaxAnalysts, March 3, 2011
Jon Finkelstein objected to several aspects of the U.S. Tax Court’s Canal decision that a leveraged partnership transaction was a disguised sale. The court disregarded an indemnity note in the transaction, but Mr. Finkelstein called the note “a legal obligation between the two entities” that would have led one of them to “have a lawsuit on its hands” if the note was disregarded. He also rejected the court’s reliance on the antiabuse rule to reject the transaction, saying, “You really need to take into account the constructive liquidation test when analyzing even the application of the antiabuse rule.”
"Legal advisor of Rogers Corporation"
Juve Rechtsmarkt, March 2011
McDermott Will and Emery was mentioned as legal advisor of Rogers Corporation in the acquisition of Curamik Electronics GmbH, a manufacturer of power electronic substrate products headquartered in Germany for €116 million. The McDermott team was led by Konstantin Günther and Robert Manger.
Thomas Ammermann, Peter Bauschatz, Paul Melot de Beauregard, Michael L. Boykins, David A. Cifrino PC, Konstantin Günther, Corporate, Corporate - Germany, Finance & Banking, Germany, IP, Media & Tech - Germany, M&A - Germany, Mergers & Acquisitions, Securities, Tax, Tax - Germany
“IRS to Release Guidance on Non-Compensatory Options, COD Deferral, Series LLCs”
TaxAnalysts, March 1, 2011
Andrea Whiteway addressed temporary 2010 IRS partnership tax rules on deferred cancellation of debt (COD) income. The rules provide for elective deferral under Section 108(i) of COD income realized from reacquisition of an applicable debt instrument during 2009, allowing recognition of deferred COD income over five years beginning in 2014. Ms. Whiteway said that despite safe harbor provisions, the rules left open whether activities involving the rental of real estate or undeveloped land constitute a trade or business. She advised taxpayers to rely on case law to make a determination, adding that although it was surprising that Section 108(i) was not extended beyond 2010, most trade associations had little interest in an extension.
Andrea Macintosh Whiteway, Tax
“Tax Treatment of New Series LLCs Uncertain Under IRS Proposed Rules”
BNA Daily Tax Report, March 1, 2011
Andrea Whiteway described as “impractical” the U.S. Tax Court's suggestion in a recent case that tax practitioners go beyond a “should level opinion” issued by a major accounting firm to decide how to proceed on transactions. The court fined a company that relied on the accounting firm’s opinion, for which it paid a flat fee. “The engagement letter doesn't say the flat fee is contingent on the delivery of a should level opinion, but in the decision [the court] brings them together and suggests that the fee was only going to be paid in the event of the opinion being issued,” Ms. Whiteway said, adding that there was much “loose language” in how the Tax Court applied the facts.
Andrea Macintosh Whiteway, Tax
“Mini-Book Review: Energy and Environmental Project Finance Law and Taxation”
EBA Update, Winter 2011
Andrea Kramer is noted as co-editor and chapter co-author of this highly praised 948-page treatise. “Tax law is made not only understandable, but interesting,” the reviewer stated, citing this example from one of Ms. Kramer’s chapters: “Financial product tax rules … enacted in direct response to perceived taxpayer abuses … create ‘traps for the unwary’ because such tax provisions are often drafted broadly, sweeping in legitimate transactions.”
Andrea S. Kramer, Energy Advisory, Financial Products, Trading & Derivatives, Tax
“Practitioners Say Canal Decision is Wrong but Won’t Be Appealed”
Tax Analysts, January 27, 2011
Blake Rubin believes the U.S. Tax Court in its Canal decision did not pay close attention to the facts or the law, but because the case likely won’t be appealed companies should change the leveraged partnership transactions that it centered on. He suggested that transaction indemnities come from a parent company rather than a subsidiary, saying “it would have been good to have some sort of keepwell obligation or a guarantee by the ultimate parent of the subsidiary.” Mr. Rubin also proposed that economic exposure not be limited to an amount less than the total potential amount on the indemnity.
“Sales Tax – Declaratory Relief”
New Jersey Law Journal, January 24, 2011
Peter Faber and Leah Robinson were identified as plaintiff’s counsel in their successful Tax Court effort to secure declaratory relief on behalf of their client, an employer that had received notice from the Director, Division of Taxation, that the company would be subject to sales tax based on its business activities as described in documents received in prior settled litigation.
Peter L. Faber, Leah Robinson, State & Local Tax, Tax
2010
“Movers”
The National Law Journal, December 13, 2010
Anthony Upshaw’s joining McDermott as a trial partner in the Miami office – focusing on class action, mass and toxic tort, and product liability defense – was noted in this news roundup.
Anthony N. Upshaw, Class Action, Mass & Toxic Torts, Product Liability, Tax
"German experts in corporation tax and fiscal law"
Wirtschaftswoche, November, 20, 2010
Dirk Pohl comments on the antcipated remission of conversion taxes. Wirtschaftswoche lists the best German experts in corporation tax and fiscal law, among them McDermott Will & Emery is represented by Dirk Pohl.
“Location, Location”
Financial Advisor Magazine, November 2010
Peter Faber illustrated how a determination by taxing authorities on an individual’s permanent home (domicile) can have a major impact on tax liability. “There are cases where people have spent more than half their time in Florida, but nevertheless have been found to be domiciled in New York,” Mr. Faber noted. “Since Florida doesn’t have an income tax, the taxpayer can take a significant hit.”
Peter L. Faber, Tax, Tax Controversy, Tax Exemption
“Community Leader K. Sujata Named Chicago Foundation for Women President”
CFW.org, October 27, 2010
Andrea Kramer, who chaired the Foundation’s Search Committee, said that the candidate chosen “has the drive to lead our fundraising efforts and the depth of experience to help direct those funds where they're needed most to help grantees improve the lives of women and girls in our communities.”
Andrea S. Kramer, Energy Advisory, Tax
Robin Greenhouse was cited extensively by Tax Analysts (October 7) in a story on whether corporations can refuse to disclose questionable tax positions on the new Schedule UTP by claiming that disclosure seeks protected work product. She said that while some corporations may be willing to take that risky position because the IRS has not yet set a penalty for failing to file Schedule UTP, they will not be able to maintain it based on the recent Deloitte work product case. “I don’t think Deloitte went that far” as to offer work product protection, Ms. Greenhouse said. She noted that IRS rules call for concise UTP descriptions of the “potential downside” of tax positions taken, and added that companies should work with outside counsel “as to how they write up those few brief sentences and whether or not any of them are actually going to claim privilege on any of this.”
Robin L. Greenhouse, Tax, Tax Controversy
Elizabeth Erickson, Robin Greenhouse, Jean Pawlow and Kevin Spencer were cited by International Tax Review (October 2010) as successfully representing Capital One in U.S. Tax Court litigation against the Internal Revenue Service. As a result of this September 21 victory, the IRS Chief Counsel Office announced on September 27 that it will no longer challenge the classification and reporting of credit card interchange fees as original issue discount (OID), a form of interest. The article noted that all four lawyers are partners in McDermott’s Washington, DC office.
Elizabeth Erickson, Robin L. Greenhouse, Jean A. Pawlow, Kevin Spencer, Tax
“IRS Finalizes Uncertain Tax Disclosures, With Concessions”
Compliance Week, October 1, 2010
Robin Greenhouse was quoted regarding final Internal Revenue Service rules for Schedule UTP, which allows companies to list and rank their tax return issues that may draw IRS questions. Ms. Greenhouse called the final rules “a significant relaxation of what was proposed. There are still some corporations that would rather not see the schedule implemented, but this was certainly a major move in the right direction for corporate taxpayers.”
Robin L. Greenhouse, Tax, Tax Controversy
Andrea Macintosh Whiteway addressed for BNA Daily Tax Report (September 29) the recent Canal Corp. v. Commissioner tax case. The case involved a joint venture entity that received a loan which one of the venture partners guaranteed and the other partner, which got proceeds from the loan, indemnified. The tax code Section 752 anti-abuse rules applied to the transaction, Ms. Whiteway said, because the disguised sale rules exclude certain debt-financed distributions to a partner in determining whether partners received money or other considerations. She added that, while the IRS generally recognizes an indemnity agreement, in this instance it disregarded the agreement under the anti-abuse rule for allocation of partnership debt.
Andrea Macintosh Whiteway, Tax
On September 23 BNA Transfer Pricing Report quoted Steven Hannes on the topic of whether the new procedures for the arbitration clause in the U.S. - Canada Income Tax Treaty should make arbitration available to resolve disputes between the IRS and the Canadian tax authorities about a taxpayer's proposed transfer pricing principles for future years. He commented that it is important that arbitration should apply to U.S.A. - Canada disputes about pricing principles that arise when a taxpayer proposes entering into an advance pricing agreement with the tax authorities of both countries for future years.
On September 23 BNA Transfer Pricing Report published an article regarding two of the 45 comment letters recently submitted to the OECD on the subject of the proposed scope of their new project addressing the transfer pricing of intangibles. One of the two letters covered in the article is the comment letter submitted to the OECD by McDermott Will & Emery on behalf of the Transfer Pricing Discussion Group. The letter was prepared by members of the Group and Steven Hannes, who represents the Group.
“Top Earners Lose Cost of BMW If Bush Tax Cuts Expire”
Bloomberg News, September 10, 2010
Daniel Zucker was cited in a story about the tax concerns if the Bush Administration tax cuts for wealthy individuals are allowed to expire. Citing the potential for higher capital gains taxes, Mr. Zucker suggested that those persons thinking about selling an appreciated asset like a business or real estate should try to complete the sale this year.
“Exclusive: UK Dispute System Ripe for Change"
TPWeek.com, 10 September 2010
Peter Nias was mentioned as one of the participants at the TPWeek roundtable event where tax disputes specialists discuss alternative dispute resolution (ADR) and whether there is a place for a formal mediation process in the UK.
Peter M.W. Nias, London, Tax, Tax - London
Robin Greenhouse was quoted by Tax Analysts (September 9) concerning proposed IRS regulations to implement uncertain tax position (UTP) reporting. She said the proposal is “not a surprise but the document doesn’t tell us very much,” adding that the IRS position is that “whatever the UTP form sets out, taxpayers will have to comply with.” Ms. Greenhouse noted that some UTP proposals rest on doubtful authority. She cited as an example a proposal to force taxpayers to make a hypothetical tax computation based on privileged information, which McDermott had called into question in a comment letter issued before the proposed new regulations. “Our comments are still valid,” she said of the letter.
"Changes in the German legislation"
Financial Times Deutschland, August 25, 2010
Dirk Pohl is quoted in an article dealing with changes in the German legislation. He emphasises the increasingly limited leeway of the legislator regarding the retroactive taxation.
Dirk Pohl, Germany, Tax, Tax - Germany
David Noren spoke to Tax Analysts on August 19 about a newly passed federal bill for state fiscal relief that also makes substantial changes in the Foreign Tax Credit and other international tax provisions. The changes supersede earlier rule proposals, and Mr. Noren noted that "whereas it would have been difficult for an unwary taxpayer to stumble into the proposed regulations, the new statutory provision could apply to a range of everyday transactions in the absence of clarifying guidance" from the Treasury Department. He added that, because of the new law, Congress may have to consider other unpopular moves to increase revenue in a tax extenders bill expected this fall. "There really are no uncontroversial international revenue raisers," Mr. Noren stated. "In terms of getting the extenders bill through, Congress would lose the business community’s support if the bill has significant revenue raisers for transfer pricing and subpart F."
Jon Finkelstein, Blake Rubin and Andrea Whiteway were quoted by CCH in its Federal Tax Weekly (August 12) regarding a Tax Court decision applying the disguised sale rules to a leveraged partnership transaction. The Tax Court concluded that the asset transfer from the subsidiary to the LLC was a disguised sale under Code Sec. 707(a)(b) (B). Mr. Rubin, Ms. Whiteway and Mr. Finkelstein told CCH in a statement, "The Court appropriately resisted the temptation to invoke the partnership anti-abuse rule, economic substance and other similar common law principles, and instead analyzed the transaction on its technical merits under the applicable regulations." The lawyers commented that the court's opinion was wrong concluding, "The opinion never even addresses whether there was substantial authority for the taxpayer's position."
Jon Finkelstein, Blake D. Rubin, Andrea Macintosh Whiteway, Tax
Blake Rubin, Andrea Whiteway and Jon Finkelstein were jointly quoted by Tax Analysts (August 9) as saying “the taxpayer should definitely appeal” the Tax Court’s application of the Section 6662(b)(2) accuracy-related penalty in Canal Corp. v. Commissioner. Mr. Rubin added that the court should have first determined whether the transaction in the case was a tax shelter, but instead “just went directly to the [Section] 6662 reasonable cause good-faith exception.” In their joint commentary the three lawyers did support the court’s imposition of the Section 722 rule in the case. “The transaction before the court was structured in a way that left it susceptible to attack under the Section 722 antiabuse rule,” they stated.
Jon Finkelstein, Blake D. Rubin, Andrea Macintosh Whiteway, Tax
Blake Rubin and Andrea Whiteway were quoted by CCH in its Federal Tax Weekly (June 17) and Tax Shelter Alert (July 2010) regarding new IRS Section 704 (c) regulations governing whether allocations of built-in gain or loss on property contributed to a partnership (direct and indirect) were abusive. The two lawyers said that “the change to apply a look-through rule taking into account indirect partners makes perfect sense,” but added that incorporating the anti-abuse rule from Section 1.701-2 was unnecessary “piling on.” Mr. Rubin noted separately that it was not surprising that the new rules did not clearly illustrate abusive allocations. “The IRS likes its anti-abuse rules as broad and as poorly delineated as possible,” he noted.
Blake D. Rubin, Andrea Macintosh Whiteway, Tax
Philip Levine was featured in a July/August 2010 International Tax Review story on the health reform bill’s codification of the economic substance doctrine that courts have used to determine and invalidate a business taxpayer’s economic motives for making tax-abusive transactions. Although noting that “having multiple layers of anti-abuse rules serves only to create an incoherent tax system,” Mr. Levine was skeptical of the new provisions. “The enactment of a vaguely worded statute with strict liability penalties presents significant dangers to the tax system,” he asserted. Mr. Levine’s concern is that IRS agents “will be emboldened by the codification of economic substance to aggressively assert economic substance … as a bargaining chip,” meaning “transactions that historically have been permissible may become subject to challenge.”
Robin Greenhouse was quoted by HealthLeaders Media (July 13) concerning the complex steps that academic medical centers must follow to secure reimbursement of FICA taxes for medical residents, paid under protest to the IRS for more than a decade. The centers must provide the IRS with a consent form signed by every resident dating back to 1995. “These are residents who may no longer be affiliated with these academic medical centers. So identifying their last known addresses takes work,” Ms. Greenhouse declared. She added, “This is an area where hospitals need to be careful. The IRS will look at the reasonableness of their efforts. They don’t have to be perfect but they have to have acted reasonably.”
"Top 25 Tax & Trust Solicitors"
Spear’s Wealth Management, 1 July 2010
Martyn Gowar was ranked among the Top Five of the Top 25 Tax & Trust Solicitors in London.
Martyn Gowar, International Private Client, London, Private Client, Tax, Tax - London
Robin Greenhouse was quoted by TaxAnalysts on June 29 concerning the D.C. Circuit Court’s ruling in US v. Deloitte that the government could not compel an accounting firm to disclose a taxpayer’s workpapers containing attorney work product because the documents were privileged and no waiver occurred. “This is a significant decision on work product,” she stated, because the court held “that a dual purpose document, which includes material developed in anticipation of litigation, can be incorporated into a document during a financial audit without ceasing to be work product.” Ms. Greenhouse added, “This is the first court of appeals to decide the waiver issue,” since the en banc panel in the earlier Textron workpapers case “did not reach the issue.”
Damon Lyon commented to TaxAnalysts on June 21 regarding a proposal in Congress to curb foreign tax credit “hopscotching,” which occurs when a U.S. corporate taxpayer accesses high-tax earnings and profits that are trapped below a low-tax controlled foreign corporation. Mr. Lyon noted that the proposed legislation would disallow “splitter structures” in such an arrangement, thereby suspending recognition of foreign tax credits by the high-tax entity in such a situation, until the taxes match up again with earnings. He added that this change would represent a significant shift from proposed regulations issued in 2006.
Michael Wilder was profiled in the New York Times on June 13 for having won the title of U.S. Chess Champion in 1988, the year before he entered law school. Mr. Wilder, a grandmaster, now focuses on corporate tax matters with McDermott, and said he has not played in a chess tournament game in more than 15 years. “I just didn’t have the energy or the motivation to keep my skills fresh [because] I never gave serious consideration to being a professional chess player,” he stated. He added that his desire to “play chess for a while and then do something else” was also motivated by the need to support his family. “I thought there are other things that I might find interesting that might be a more stable career,” Mr. Wilder said.
Michael J. Wilder, International Tax, Tax
Robin Greenhouse commented for CCH Federal Tax Weekly (number 22) on the U.S. Supreme Court’s decision to let stand the First Circuit’s controversial Textron ruling that a taxpayer may not claim work product privilege protection against an IRS request for tax accrual workpapers. Ms. Greenhouse predicted that “this issue will be the subject of protracted litigation throughout the federal courts” which “will not be limited to tax cases.” She expects more private litigants to make discovery requests for litigation reserve workpapers, and “would not be surprised” if the federal government “attempts to expand the use of the government deliberative process privilege in lieu of or in addition to its routine claims of work product.”
Robin L. Greenhouse, Tax, Tax Cases, Tax Controversy
Robin Greenhouse was quoted in Taxanalysts (May 25) regarding the Supreme Courts’s denial of certiorari to reconsider the First Circuit’s Textron rejection of work product privilege for tax accrual workpapers. “Given the clear conflict in the circuits on this question, I am surprised that the Supreme Court denied Textron’s cert. petition,” she said. Ms. Greenhouse added that she expects the issue to be raised “in both nontax and tax cases” following the denial.
Robin L. Greenhouse, Tax, Tax Cases, Tax Controversy
Peter Faber was quoted in an April 18 New York Times story about how states are increasingly raising cash through “sin taxes” on alcohol, gambling and adult services. “The honest way to raise more revenue would be to raise income tax rates,” Mr. Faber said. “But it is more politically attractive to tax these kinds of things. No one can get mad at you for taxing people who drink too much.”
Peter L. Faber, State & Local Tax, Tax
David Ivill was cited in an April 5 Crain’s New York Business story about how New York hospitals and their residents may get back nearly $1 billion in FICA taxes that they paid prior to April 1, 2005. Because of successful litigation that McDermott pursued against the IRS on behalf of hospitals seeking refunds of the FICA payments, the agency agreed to the pre-2005 refunds on March 2.
Steven Hannes was quoted by BNA Tax Management Transfer Pricing Report (March 25) concerning the Ninth Circuit’s decision that reversed its original ruling and found for the taxpayer in holding that a company did not have to share stock option costs with its Irish affiliate. The reversal was based on conflict between the “arm’s length” standard and the cost sharing regulation in force at the time of the first ruling. Mr. Hannes said that new IRS cost sharing rules for stock options – or other provisions that require charging those costs in a cost-plus or other pricing context – might also conflict with the arm’s length standard and “in time might, in relevant part, not be followed by a court.”
Arthur Rosen was quoted by The New York Times on March 22, in a story about how some states are aggressively collecting income taxes from persons (from athletes and entertainers to sales reps) who are employed elsewhere but do a small amount of work in that state. Noting that the more aggressive states may force other states to follow suit, Mr. Rosen stated: “If everybody goes after everybody, nobody wins. … In this interstate war of ‘you tax my rich guy and I tax your rich guy,’ it’s just a wash, a preposterous flurry of tax returns.”
Arthur R. Rosen, State & Local Tax, Tax
Robert Feldgarden critiqued for International Tax Review (March 17) the U.S. Tax Court’s ruling in Container Corp. v. Commissioner, which held that guaranty fees should be sourced to the guarantor’s location for tax purposes. Mr. Feldgarden “didn’t think it was a very well-reasoned decision” because guaranty fees are analogous to income from insurance contracts, which is taxable in the location of liability. “A guaranty fee looks more like insurance,” he stated. “I think this should have been considered from a source perspective, and it wasn’t.” Mr. Feldgarden added that countries in Latin America, the Middle East and Africa, which don’t have tax treaties with the United States, “will like this case because it says the U.S. can’t tax this income. They will find that beneficial.”
Robert Feldgarden PC, International Tax, Tax
Robin Greenhouse commented in a March 1 Tax Analysts story about a District of Columbia federal court panel’s questioning of the Internal Revenue Service in a case involving the scope of work product protection that applies to work papers created by an independent auditor. Ms. Greenhouse, who attended the hearing, said the panel was highly skeptical of the IRS contention that an attorney’s litigation strategy loses its work product protection if communicated to the auditor. “With respect to this issue, based on the court’s questions and demeanor, I would expect the court to hold that the work product protection applies to an auditor’s recording of the attorney’s analysis,” she said, “but that the case should be remanded for an in camera review … to determine if redaction is appropriate under this holding.”
Andrea Kramer’s recent ABA Section on Taxation presentation about pending changes for regulation of derivatives transactions was summarized in the February 1 issue of Tax Notes. Ms. Kramer noted that most financial, energy and electrical derivatives are now excluded from CFTC regulation. Legislation passed by the House of Representatives late in 2009 continued to exclude from regulation and exchange clearance those transactions that are intended to be physically settled. But Ms. Kramer said it is unclear whether this exclusion will cover electricity contracts for which physical delivery does not occur.
Andrea S. Kramer, Energy Advisory, Tax
Phillip Levine, Stephen Wells, Matthew White and Timothy Shuman from McDermott’s Washington, D.C. office, and Kristen Hazel and Barry Quirke from the Firm’s Chicago office, were noted in the January 28 issue of New York Law Journal as handling the tax matters in Tyco International Ltd.’s $2 billion deal to purchase Brink’s Home Security Holdings Inc. Brink’s, which operates as Broadview Security, is Tyco’s top competitor in residential and commercial security systems.
Kristen E. Hazel, Philip J. Levine, Barry J. Quirke, Timothy S. Shuman, Stephen E. Wells, Matthew K. White, Tax
2009
Art Rosen was featured in State Tax Notes (October 19) focusing on current state tax trends. A key issue for Mr. Rosen is "working to encourage Congress to pass BATSA." The BATSA would create a bright-line test to determine when an out-of-state business must pay taxes to a state jurisdiction. "There's considerable logic for congressional support of the legislation," said Mr. Rosen. "Income taxes are supposed to be imposed where a company earns its income - where its capital and labor are located. Income is earned where a company has property and payroll. It makes no sense to try to attribute income to other states simply because you have sales there." The issue impacts everything from e-commerce to international sales, and although there is a strong case for greater tax treatment uniformity. Mr. Rosen noted that "states balk when they have to make significant changes to achieve real uniformity."Arthur R. Rosen, State & Local Tax, Tax
Robin Greenhouse was quoted by Compliance Week on September 15 concerning the First Circuit’s ruling in U.S. v. Textron, which reduced work product protection for documents in tax litigation. Ms. Greenhouse noted that other Circuit Courts have generally afforded tax accrual work papers more protection, but companies generating them should still take protections. “Companies need to look at how they prepare their tax accrual work papers to satisfy the FIN 48 requirement,” she stated. “They obviously need to meet the requirement, but not put more in those papers than is required.”
Arthur Rosen was quoted by Sales & Use Tax Monitor on September 15 concerning possible state efforts to apply sales tax to legal service bills. He noted that if details can be worked out on who the billing attorney is and where the service was provided, “then the tax is administrable. Whether it is a good idea or not is really another question.” From the government’s standpoint, Mr. Rosen added, “If you’re looking to tax every service and expand the [tax] base, then I don’t see why you wouldn’t tax legal services … If all services should be taxed, then attorney services should be, too. We’re not all that special.”
Arthur R. Rosen, State & Local Tax, Tax
Blake Rubin commented for Law360 (August 24) on the Tribune Company’s transfer of the Chicago Cubs to a partnership owned 95% by a family of financial entrepreneurs. Mr. Rubin represented Tribune Co. in what he called “a very challenging transaction, which involved implementing an intricate, highly leveraged structure through a bid process in a difficult credit market and navigating it through Major League Baseball’s debt service restrictions.” He added that Tribune helped complete the deal by being “extremely creative, resourceful and persistent.”
Andrea Macintosh Whiteway was quoted in BNA Daily Tax Report on August 18 concerning the inclusion of a partial election option in new IRS guidance for making the tax code Section 108(i) election to defer the recognition of cancellation of indebtedness income. Ms. Whiteway said the guidance makes Section 108(i) “more workable and appealing” for partnerships, adding that the new guidance enables partners to, in effect, make an individual election even though the partnership will administer it.
Andrea Macintosh Whiteway, Tax
Robin Greenhouse commented for Tax Analysts (August 14) on the First Circuit's en banc U.S. v. Textron ruling, which reversed an earlier panel decision and held 3-2 that tax accrual workpapers are not subject to work product protection. She said the majority's new work product rule "is directly in conflict with the Second Circuit's decision in Adlman and is even more restrictive than the Fifth Circuit's 'primary motivating purpose' standard." She noted that the dissent would support a petition for certiorari by Textron: "There are significant nontax ramifications from this decision, and all litigators and general counsel should be concerned. This decision opens the door for one part in litigation to discover an opposing party's litigation reserve fund." She made similar points for Bloomberg.com, where she observed that the ruling was "a very results-oriented decision. The court wanted to find that this was not privileged."
"Nomination as European Court of Justice Firm"
International Tax Review, August 2009
McDermott Will & Emery was nominated as European of Justice (ECJ) Firm of the year by the International Tax Review.
Peter Faber was quoted in an August 5 broadcast report on NPR Marketplace concerning the efforts of creditors, particularly New York City, to secure settlements in the Lehman Brothers bankruptcy. New York’s effort to collect unpaid corporate and rent taxes from the bankrupt company has been time-consuming, but Mr. Faber stated that it is not unusual for audits assessing what creditors are owed to take many years. He added that the amount of time needed for the audits does not imply any wrongdoing by Lehman Brothers. “The tax laws are very complicated and companies and tax administrators very often disagree about what they mean,” Mr. Faber explained. “And very often those disagreements end up in court.”
Andrea Macintosh Whiteway was quoted in the August 3 Tax Analysts concerning the recent Court of Federal Claims ruling in Murfam Farms v. U.S. that reg. section 1.752-6 is invalid. Tax practitioners say the ruling may not significantly damage the IRS fight against abusive tax shelters because the government’s position that the kind of partnership in Murfam Farms has not yet been tested by the courts under the economic substance doctrine. Ms. Whiteway agrees with this assessment, advising taxpayers to “query whether you need the reg to prevent abuse given this doctrine.” She added that “taxpayers in the son-of-BOSS [tax shelter] transactions need to prevail on economic substance in any event, with or without application of this regulation.”
Andrea Macintosh Whiteway, Tax
Thomas Jones was quoted by Modern Healthcare in an August 3 story about an Arizona-based health system that is one of the first not-for-profit hospital operators to win U.S. Department of Labor approval for reinsuring employee benefits through a captive insurance company. Such expanded use of captives has been allowed in limited circumstances since 2000, but has not been widely adopted. “This is cutting edge,” Mr. Jones said of the system’s program, “This is not garden variety.”
Thomas M. Jones PC, Captive Insurance and Reinsurance, Nonprofit Organizations, Tax
Andrea Kramer was quoted in a WomenLegal Magazine (June – August 2009) story that presented comments by participants in the publication’s 2009 forum discussion among gender diversity thought leaders. Ms. Kramer, chair of McDermott’s Gender Diversity Committee, urged women lawyers to be more forceful in communicating what they have achieved with their firms. She noted that as a Compensation Committee member, “I read several thousand self-evaluations. But it didn’t take me long to notice a pattern. After reading a handful of self-evaluations, I saw that too many women were reticent to claim credit for their accomplishments. Most men weren’t.”
Joseph Selby and Robin Greenhouse were quoted in a June 18 Tax Analysts story on Valero Energy v. U.S., a Seventh Circuit case that broadly constructed the tax shelter promotion exception to the section 7525 federal tax practitioner privilege, upholding the government right to documents that Valero claimed were privileged. Mr. Selby took exception to the ruling, saying that “the word ‘promotion’ when used in connection with ‘tax shelter’ is a term of art that comports with Valero’s definition.” The Court explained why its ruling differed from the district court in a similar case, U.S. v. Textron, but ignored the fact that it also was contrary to a Tax Court ruling in Countryside Ltd. Partnership v. Commissioner, which Ms. Greenhouse felt was because “it would have been more difficult to distinguish Countryside.”
Robin Greenhouse commented in Tax Analysts (June 19) regarding a U.S. district court’s use of the Regions Financial Corp. v. U.S. to hold that a taxpayer’s claim of work product privilege was not waived by disclosing documents to an accounting firm. “The Regions decision continues to have legs with respect to analysis of waiver of work product,” Ms. Greenhouse said, but she added that in another case “the DOJ does not seem to have the same policy” of restraint toward work product production. “It is unclear whether this is the result of a new DOJ policy,” she stated, “or the unusual circumstances of a particular case.”
Robin L. Greenhouse, Tax, Tax Cases
Robin Greenhouse discussed for Tax Analysts on June 9 the U.S. Tax Court’s ruling in Countryside Limited Partnership v. Commissioner. The Court held that a taxpayer’s meeting minutes did not have to be disclosed to the IRS because the government failed to show that a tax exception applied, and Ms. Greenhouse noted that the ruling could affect the Seventh Circuit appeal of a contrary district court ruling in Valero Energy Corp. v. U.S. “Based on the legislative history,” she stated, “the [tax] court rejected the broad definition of [tax shelter] promotion applied by the district court in Valero, which defined promoter as one who organizes or assists in organizing a tax shelter.” She added, “I expect that the taxpayer will act promptly to send a letter to the Seventh Circuit reporting on this favorable Tax Court decision.”
Robin L. Greenhouse, Tax, Tax Cases
Joseph Selby commented for Tax Analysts on June 3 concerning the First Circuit's rehearing of U.S. v. Textron and the issue of whether tax accrual workpapers are protected under the work product doctrine. Mr. Selby believes that the full court will affirm a panel's earlier holding that the workpapers are protected. "I'm anticipating a 3-2 decision either way," he said, "but I am optimistic that the en banc court will agree" that a tax adviser's assessment of the likelihood that a taxpayer will prevail on a legal issue reasonably expected to be disputed by the IRS is the type of "core work product that should be protected by the work product doctrine."
Robin Greenhouse was interviewed in the June 1, 2009, Tax Analysts Tax Notes concerning key tax law issues. Ms. Greenhouse stated that the
Robin L. Greenhouse, Tax, Tax Cases, Tax Controversy
Fred Ackerson was quoted by State Income Tax Monitor on May 31 concerning various state tax provisions that make companies add back to taxable income any deductions taken for royalties and interest to affiliates. Mr. Ackerson predicted that states will embrace the logic of recent court decisions holding that challenges to addbacks must prove that they result in a disproportionate appointment of income." "You've got two standards that are at loggerheads for the interpretation of the unreasonable vs. reasonable addback," he said, and warned companies not to pay any tax that they may later challenge as an unreasonable addback. "It's always harder to ask for it back through an amended return," he noted.
Fred M. Ackerson, State & Local Tax, Tax
Keith Staats was quoted on May 31 by State Income Tax Monitor on so-far unsuccessful attempts to roll back Cook County's 10.25 percent sales tax. If a rollback does happen, he noted, "it's going to change all the sales tax returns and rate schedules for the state." Right now, Mr. Staats added, "taxpayers registered there are just having to wait and see what happens."
Peter Faber was quoted in a May 30 New York Times article about companies that establish shell entities in Delaware to take advantage of that state's low taxation. He noted that in some cases a single clerk in a Delaware office may tend to dozens of shell companies. "I've seen a lot of companies with solid structures, and more with not," Mr. Faber said of the Delaware entities.
Peter L. Faber, State & Local Tax, Tax
Arthur Rosen was quoted in Sales and Use Tax Monitor on May 15 regarding possible New York State taxation of software downloaded from the Internet. Although such software used to be tax-exempt, Mr. Rosen said, "The state is now saying that downloading software that you use [and] that's connected to a server somewhere else is the same thing as getting a license … [and getting] a copy of the software. I don't believe that's the right way to look at it," he added.
Thomas Jones was also quoted in Business Insurance on May 11 that the Obama plans to curb offshore tax breaks contain "nothing specific . . . that would seem to impact offshore captives in any particular manner." Mr. Jones explained that for 20-plus years IRS rules have blocked U.S. tax deferral by offshore captive insurers. "Tax deferral and tax avoidance in captives don't mix," he stated. "Almost never do captives enjoy tax avoidance or tax deferral by going offshore."
Thomas M. Jones PC, International Tax, Tax
Thomas Jones addressed in a May 11 Business Insurance story the implications for the property/casualty insurance industry of the Obama Administration's plan to curb the deferral of taxes on profits earned offshore. Mr. Jones noted that for property/casualty insurers "there is deferral available for certain situations," as when a U.S. insurance subsidiary in another country that underwrites risk in that country can defer taxes on the income. "A substantial erosion of deferral could be a negative factor," he stated, adding, "at this point it's too difficult to quantify until we see how this all plays out."
Thomas M. Jones PC, International Tax, Tax
James Riedy noted on May 5 in CFO.com that President Obama's proposal to tighten the expense-deferral rule in the taxation of U.S. corporate foreign income would be the first such effort since one made by President Kennedy. Mr. Reidy said that many details on the proposal have yet to be released, including what kind of expenses will be included in the deferral proposal, which can be anything from interest on loans and real estate taxes to CEO salaries and travel expenses. He also said that it is "grossly misleading" for the administration to call the passive income rule a loophole, especially since it was originally set up during the Clinton Administration.
James A. Riedy PC, International Tax, Tax
Peter Faber told CFO.com on May 1 that states will likely increase their tax enforcement efforts on businesses in order to raise revenue. "We're seeing an intensification of audit activity for corporations, which is where I think the states feel the big money is," he declared.
Peter L. Faber, State & Local Tax, Tax
Arthur Rosen told Sales and Use Tax Monitor on April 30 that it is not a new phenomenon for governmental entities to make "temporary" tax increases permanent. "It's always been that way. The 1913 federal excise tax on phones was passed to fund the war and was never repealed," he explained. "It's much more common than not for temporary taxes not to be repealed."
Arthur R. Rosen, State & Local Tax, Tax
Mark Opper spoke to Financial Crisis Advisor (April 13) about the impact that the American Recovery and Reinvestment Act (ARRA) will have on bank acquisitions. Prior to the ARRA's passage, acquiring banks could rely on IRS Notice 2008-83 to use a target bank's pre-existing built-in losses to shelter the acquirer's income. However, Congress repealed the Notice in the ARRA, meaning that it is not relevant for any deal agreed to or announced after January 16, 2009. Mr. Opper noted that acquisitions with a "written binding contract" entered on or before that date or a "written agreement" made public by that date can still get the tax benefits and savings provided by Notice 2008-83.
, Tax
Michael Wilder was cited in the March 23 Washington Post for being named a partner in the Firm's Tax Department. Mr. Wilder is a former lawyer with the Office of Chief Counsel of the Internal Revenue Service.
Arthur Rosen is quoted on March 15 in the State Income Tax Advisor concerning the difference between ethical and legal behavior in corporate tax matters. "Many times people equate ethics with organizational requirements and whether what they will do would cause bad press for the company," Mr. Rosen observes. He adds that while such a perspective is not wrong, "You shouldn't think about getting away with something. You should do what's right, no matter the monetary amount at issue. You should deal with government the same way you deal with society."
McDermott Will & Emery's March 3 webinar titled "The Stimulus Package and What It Means to You" was mentioned on March 4 by Taxanalysts. The webinar covered hot tax topics in the stimulus bill and how they affect business. Key topics included, spending and tax credits for energy efficiency and renewable energy; health IT incentives and infrastructure, HIPPA amendments and comparative effectiveness studies; and procurement and appropriations.
Art Rosen was quoted on February 28 by Sales & Use Tax Monitor regarding ethical guidelines in corporate tax. Many associations, such as the Institute for Professionals in Taxation/Atlanta, require ethics training each year. However, many tax practitioners are not required to followed any ethical guidelines. Mr. Rosen said, "Many times, people equate ethics with organizational requirements and whether what they will do would cause bad press for the company….I'm not saying that's wrong, but I look at it differently." He continued, "You shouldn’t think about getting away with something. You should do what's right, no matter the monetary amount of the issue. You should deal with the government the same way you deal with society."
Philip Tingle is quoted in a February 27 Forbes.com story about the economic stimulus package's new federal tax incentives to make "green" energy home improvements. Specifically citing the removal of the dollar caps on the 30 percent tax credit available for these improvements, Mr. Tingle says that, "If you're predisposed to going green, this is a benefit worth capturing."
Philip Tingle, Energy Tax, Tax
Robin Greenhouse was quoted in the January 23 issue of the Daily Tax Reporter in an article about how the First Circuit on January 21 held that tax accrual workpapers are protected by the work product privilege even if the documents are required by financial reporting rules, but it remanded the case to the district court for a determination of whether Textron might have waived the privilege in its case through disclosure to its outside auditor. "If there had been some indication or reference to the taxpawyers tax accrual workpapers in the auditor's workpapers, the auditor would claim privilege," said Ms. Greenhouse. "That is exactly what happened in the Regions Financial [Corp. & Subsidiaries v. United States] case," she added.
Robin L. Greenhouse, Tax, Tax Controversy
Robin Greenhouse was quoted in the January 23 issue of The National Law Journal and on January 26 on Law.com's In-House Counsel on how Textron Inc. can withhold some documents related to tax shelters from the IRS. For taxpayers, the ruling by the 1st U.S. Circuit Court of Appeals in U.S. v. Textron, No. 07-2631, is a "significant victory," said Ms. Greenhouse.
Robin L. Greenhouse, Tax, Tax Controversy
Robin Greenhouse was quoted in the January 22 issue of Bloomberg on how Textron Inc. can withhold some documents related to tax shelters from the IRS. "It's a big decision," Ms. Greenhouse said. "It doesn't end the case," she added.
Robin L. Greenhouse, Tax, Tax Controversy
Robin Greenhouse was quoted in the January 22 issue of Tax Notes in an article about how the First Circuit on January 21 held that tax accrual workpapers are protected by the work product privilege even if the documents are required by financial reporting rules, but it remanded the case to the district court for a determination of whether Textron might have waived the privilege in its case through disclosure to its outside auditor. "While the auditor's workpapers may generally be subject to disclosure, to the extent they contain or reflect Textron's work product, the auditor would likely redact that privileged material and claim work product," said Ms. Greenhouse.
Robin L. Greenhouse, Tax, Tax Controversy
Blake Rubin was quoted in the January 21 issue of Tax Notes in an article about how practitioners were pleasantly surprised to find that Treasury on January 16 withdrew the highly criticized proposed regs on the treatment of disguised sales of partnership interests between partners under section 707(a)(2)(B). "The regulations were deeply flawed and possibly invalid. The Service did the right thing in withdrawing them," Mr. Rubin said. "I was a little surprised that they were withdrawn. The official word was that they would be re-proposed. Candidly, I thought that they would just linger in their proposed form indefinitely," he added.
Blake D. Rubin, Pass-Throughs, Tax
Art Rosen was quoted in the January 15 issue of Sales & Use Tax Monitor about the potentially higher taxes in New York on items such as non-diet soft drinks. As for Gov. David A. Paterson's request to tax digital downloads of media such as books and music, "we went through this with Streamlined over the past four years," said Mr. Rosen. "The business community was able to convince the SSTP powers-that-be that each digital product needed to be examined individually. We hope to do the same in New York," he added.
Arthur R. Rosen, State & Local Tax, Tax
Blake Rubin was quoted in the January 8 issue of Tax Notes in an article about how section 1001 lacks a definition of recourse or nonrecourse debt, so such a classification can be based on state law, according to practitioners at a January 7 District of Columbia Bar luncheon on classification of partnership liabilities. "That was the thinking that we had all signed onto until we read this case," said Mr. Rubin, referring to Great Plains Gasification Associates et al. v. Commissioner, T.C. Memo. 2006-276, No. 10578-01 (Dec. 27, 2006).
Blake D. Rubin, State & Local Tax, Tax
2008
Robin Greenhouse was quoted in the December 24 issue of Tax Notes about Regions Financial Corp. and the IRS coming to a settlement regarding the company's tax liabilities from 1999 through 2006. Because tax years at issue in the case are covered by the agreement, "I think a reasonable assumption is that it settles all issues that were raised for those years. And that would include the issues that were the subject of the tax accrual workpapers," Ms. Greenhouse said. "If the tax year is resolved, then we would expect the case -- the appeal -- to be moot. But the decision below would not be vacated," she added.
Robin L. Greenhouse, Tax, Tax Controversy
Marty Pugh was mentioned in the December 15 issue of The Washington Post and on LexisNexis Tax Law’s website on December 21 for joining McDermott as counsel in the Tax Department based in its Washington, D.C. office.
Link to Marty, Tax, Energy Tax
Martha Groves Pugh, Energy Tax, Tax
Marty Pugh was mentioned in the December 8 issue of The Legal Times for joining McDermott as counsel in the Tax Department based in its Washington, D.C. office.
Phil Tingle was mentioned in the November 24 issue of Forbes magazine about how the new law, enacted by Congress on October 3, contains tax breaks for millionaires on everything from home windmills and corn stoves to plug-in hybrid cars and deluxe bicycles. "People just fall into it. They wake up and have a credit," said Mr. Tingle.
Roy Crawford was quoted in the November issue of Tax Incentives Alert about the suspension of the deduction for NOL carryforwards in California. "It's a real incentive for a lot of businesses," noted Mr. Crawford. "There are so many start-ups out here that count on that credit as 'adventure money,'" he added.
Roy E. Crawford, State & Local Tax, Tax
Andie Kramer was quoted in the November 24 issue of Business Week about how fund-of-funds managers are being forced to dump assets, putting further pressure on the hedge funds and the markets generally, since so many depended on borrowed money. The funds of funds were layering leverage upon leverage. They owned hedge funds already loaded up with debt, roughly $6 for each $1 of capital. When credit seized up, the process began to reverse. "Once things start to deliever, everything contracts," Ms. Kramer said.
Andrea S. Kramer, Hedge Funds, Markets Restructuring, Tax
Art Rosen was quoted in the November 15 issue of the Sales & Use Tax Monitor about two counties on Long Island, N.Y., facing combined government shortfalls exceeding $50 million (with declining sales tax collections being a major culprit). Some officials think sales tax increases could be in the offing. "I wouldn't be surprised," said Mr. Rosen. "People are concerned that jurisdictions are overestimating their revenues because spending is down."
Arthur R. Rosen, State & Local Tax, Tax
Blake Rubin was quoted on November 6 in Federal Tax Weekly about how the proposed regs under Code Sec. 108(e)(8) would apply the nonrecognition rule of Code Sec. 721 to the creditor's exchange of debt for a partnership interest. Mr. Rubin commented "the position taken in these regs that, from the lender's perspective, Section 721 applies, will be very controversial. The effect is to disallow a loss to the lender. When the lender ultimately recognizes its loss on sale of the partnership interest or liquidation of the partnership, its loss will be capital." He continued, "Ironically, the parties would be in the identical economic position but the lender would recognize an immediate loss if the partnership repaid part of the loan, the lender cancelled the balance and recognized a loss, and the lender then recontributed the funds to the partnership in exchange for a partnership interest."
Blake D. Rubin, Real Estate - Tax, Tax
"Cross-Border-Leasing"
Börsen-Zeitung, November 5, 2008
Interview with Dirk Pohl concerning the risks for communities from Cross-Border-Leasing.
Dirk Pohl, Germany, Tax, Tax - Germany
"Indemnification of US-investors"
Wirtschaftswoche, October 27, 2008
Dirk Pohl is quoted in this article regarding claims for indemnification of US-investors as a possible consequence of the financial crisis.
Dirk Pohl, Germany, Tax, Tax - Germany
Andrea Whiteway was mentioned in the October 13 issue of Legal Times for being named a fellow of the American College of Tax Counsel.
Andrea Macintosh Whiteway, Tax
Elizabeth Lewis was quoted in the September issue of Chicago Lawyer on the balancing act of affording law school. "If you are sure that law is something that you want to do, and you know it's something you will enjoy doing, then my best advice is to just pursue it and pursue whatever area of law you enjoy most," Ms. Lewis said. "Enjoying what you do is very important."
Andrea Kramer was quoted September 26 on guardian.co.uk about how U.S. regulators are looking into credit derivatives as they investigate market manipulation, and some lawyers believe the government is looking at whether traders have used the products to help push banks closer to insolvency. "You can affect investors' perception of the company, and affect the company's credit-worthiness," Ms. Kramer said.
Andrea S. Kramer, Financial Products, Trading & Derivatives, Tax
Art Rosen was quoted in the August 31 issue of Sales & Use Tax Monitor about a new law requiring that online retailers collect sales tax on purchases made by state residents if they have any affiliates - including Web affiliates - with physical presence in New York. "I think that you'll find that the Assembly in New York is much more pro-revenue than the Senate was," said Mr. Rosen.
Arthur R. Rosen, State & Local Tax, Tax
Roy Crawford was quoted in the August 15 issue of State Income Tax Monitor about how a court threw out California authorities' seemingly convoluted argument for disallowing an insurance company's deductions for management fees. Mercury General Corp. was reimbursed by two insurance subsidiaries for providing certain management services. The Franchise Tax Board balked at allowing a deduction for expenses under a "but-for" test. "That test says that if a parent has an expense and somehow expects that the subsidiary will pay a dividend, part of the expense will be disallowed because they'll get a dividend someday," said Mr. Crawford.
Roy E. Crawford, State & Local Tax, Tax
Robin Greenhouse was quoted in the August 11 issue of Tax Analysts on the recent district court ruling that requires a company to release to the government documents it claimed were subject to nondisclosure by the tax practitioner privilege. "I've been concerned about the scope of the tax practitioner privilege for some time and in particular the legal implications of a ruling in a summons enforcement case that the transaction at issue is a tax shelter for purposes of the tax shelter exception under section 7525," Ms. Greenhouse said.
Robin L. Greenhouse, Tax, Tax Controversy
Robin Greenhouse was mentioned in the August 7 issue of the Daily Tax Report for being part of the team representing Wal-Mart Stores, Inc. The North Carolina Court of Appeals ordered in camera review of tax documents related to consulting services Ernst & Young provided to assist Wal-Mart Stores, Inc. in implementing tax shelters to see if any of the materials is protected from a DOR summons.
Robin L. Greenhouse, Tax, Tax Controversy
Robin Greenhouse was quoted in the July 28 issue of The National Law Journal on how the attorney work-product fight is now taking shape in the federal courts, most recently in the Textron and Regions cases. Ms. Greenhouse commented that the work-product controversy may be "something of a perfect storm," triggered by post-Enron demands for greater financial disclosures.
Robin L. Greenhouse, Tax, Tax Controversy
Bill Goldman was quoted in the July 14 edition of The Daily Record on Dang Chien Thang's, a native of Vietnam, first visit to the United States earlier this month. "His participation has been invaluable," said Goldman, a Global Community Service Foundation board member who, as chairman of the program committee, works closely with Thang.
William L. Goldman, Tax, Tax Controversy
Bob Dilworth was mentioned in the June 25 Congressional Documents and Publications, the June 26 issues of FNS Daybook and The Frontrunner, and the June 27 issues of US Fed News andWebCPA about being a witness at the Senate Finance Committee's hearing conducted "to examine the foundation of international tax reform, focusing on worldwide, territorial, and related corporate tax issues," according to a committee notice published in the Congressional Record.
Robert H. Dilworth, International Tax, Tax
Blake Rubin was quoted in the May 22 issue of Federal Tax Weekly in an article regarding how final regs apply substantial economic effect rules to indirect partners. Mr. Rubin commented that the final regs contain minor "tweaks" to the regs proposed in 2005 and that the existing regs "already [involve] burden."
Blake D. Rubin, Tax, Tax Controversy
Blake Rubin was quoted in the May 22 issue of Federal Tax Weekly in an article regarding proposed partnership allocation regs. Blake commented that the proposed regs further strengthen the anti-abuse rules. "The look-through concept certainly make sense," Mr. Rubin said.
Blake D. Rubin, Tax, Tax Controversy
Robin Greenhouse was quoted in the May 22 issue of CCH Federal Tax Weekly on Regions Financial Corp. et al. v. United States. Ms. Greenhouse explained that both Regions and Textron (a much-heralded IRS loss on privilege that is now on appeal in the First Circuit) found that it would be unfair for the government to obtain these documents. "It's not helping the IRS develop the facts or develop issues. It's really just telling the IRS--This is how the taxpayer values the case." Ms. Greenhouse further pointed out that the government would be just as adamant about protecting its own work product documents as well.
Robin L. Greenhouse, Tax, Tax Controversy
Robin Greenhouse was quoted in the May 15 issue of CCH Federal Tax Weekly on Regions Financial Corp. et al. v. United States. Ms. Greenhouse pointed put that, while application of the work product doctrine in Textron and Regions was the same, the facts were slightly different in what the IRS was seeking from the taxpayer. Ms. Greenhouse stated, "In Textron, they were looking more at the actual workpapers themselves...items indicating the percentage of likelihood of success...this is looking at the actual tax opinion that was prepared ... Regions is really looking at the opinion; Textron is looking at: Now what do they do based on their legal opinions?"
Robin L. Greenhouse, Tax, Tax Controversy
Art Rosen was quoted in the May 15 issue of Sales & Use Tax Monitor in an article regarding the complexity of sales tax compliance in the state of New York. "The rules are so arcane," Mr. Rosen said. "It makes it so difficult. In New York, a Twix bar is taxable if it's on the shelf with candy and exempt if it's on the shelf with cookies. Little marshmallows are used for cooking and therefore exempt, but big marshmallows are considered candy and therefore taxable," he added.
Arthur R. Rosen, State & Local Tax, Tax
Art Rosen was quoted in the May 15 issue of Sales & Use Tax Monitor in an article regarding the case of Amazon.com Inc./Seattle vs. the New York Supreme Court and its potentially huge implications for companies making sales into states where they lack a physical presence. "So far, no state has enacted anything close to what this does in New York," Mr. Rosen said. "There are several states that will impose nexus on a company that has a brick-and-mortar affiliate in a state, but that's as far as it goes," he added.
Arthur R. Rosen, State & Local Tax, Tax
Tax partners Blake Rubin and Andrea Macintosh Whiteway and corporate partner Brooks Gruemmer were mentioned in The AmLaw Daily (May 13) regarding their representation of Firm client, the Tribune Company, in a partnership transaction with Cablevision Systems Corporation involving Tribune's Newsday Media Group. Cablevision Systems Corporation purchased Newsday from the Tribune Company for $650 million. Corporate partner Samuel Wales and corporate associates Daniel Fuchs, Kathleen Edwards and Christopher Lin were also mentioned for their assistance representing the Tribune Company.
Brooks B. Gruemmer, Christopher Lin, Blake D. Rubin, Samuel W. Wales, Andrea Macintosh Whiteway, Tax
Robin Greenhouse was quoted in the May 13 issue of Tax Notes on Regions Financial Corp. et al. v. United States. Ms. Greenhouse said the opinion was important, "Because it provides work product protection for a tax opinion that is prepared to evaluate the litigation risk of a particular transaction, even if it is understood at the time of preparation that such opinion will likely be disclosed to the independent auditor."
Robin L. Greenhouse, Tax, Tax Controversy
Blake Rubin and Andrea Whiteway were mentioned in the May 5 issue of Legal Times about how their hiring highly contributed to the inclusion of the Firm's Washington, D.C., office in the "2008 D.C. 20" rankings.
Blake D. Rubin, Andrea Macintosh Whiteway, Real Estate - Tax, Tax
Tom Jones was mentioned in the April issue of Chicago Lawyer for receiving the Captive Insurance Companies Association's 2008 Distinguished Service Award.
Thomas M. Jones PC, Captive Insurance and Reinsurance, Tax
Tom Jones was mentioned in the May issue of The Risk Retention Reporter and the April issue of American Agent & Broker for receiving the Captive Insurance Companies Association's 2008 Distinguished Service Award.
Thomas M. Jones PC, Captive Insurance and Reinsurance, Tax
Tom Jones was quoted in the April issue of Rough Notes about how the IRS reversed its proposal concerning the taxation of captives. "The consolidated tax return area of the IRS has a huge amount of authority to promulgate regulations," Mr. Jones said. "Congress has given the Consolidated Returns Group the authority to write 'legislative regulations' as contrasted with 'interruptive regulations' that other code areas are limited to," he added.
Thomas M. Jones PC, Captive Insurance and Reinsurance, Tax
Jean Pawlow was mentioned in the April 10 issue of Tax Management Transfer Pricing Report for her presentation at the TEI 58th Midyear Conference. Ms. Pawlow said taxpayer comments about Tier 1 audits have made the process sound like buying a car in that the audit team seems to want to help but must periodically consult "someone in the back" who has decision-making power. Ms. Pawlow also said the teams, "Seem to keep telling us we have to go to Appeals."
Jean A. Pawlow, Tax, Tax Controversy
Jean Pawlow was mentioned in the April 8 issue of TaxAnalysts for her presentation at the TEI 58th Midyear Conference. Among other questions, Ms. Pawlow asked fellow panelist Patricia Chaback, industry director for LMSB's communications, technology and media division in Oakland, Calif., if it is appropriate for Appeals to be involved in the Industry Management Team (IMT). Chaback replied that even though an Appeals representative may be present on the team, Appeals maintains the "utmost level of independence" throughout the issue process and is subject to the ex parte rules.
Jean A. Pawlow, Tax, Tax Controversy
Tom Jones was quoted in the March 2008 issue of Vermont Business Magazine about how the IRS withdrew the proposed regulation that would have prevented captive insurance companies based in the Unites States from claiming tax deductions for money set aside to cover future claims and losses. Under the existing tax code, Mr. Jones said, "We do have a level playing field." The proposed IRS regulation, "Will have the possibility of tilting the field," he said, toward the offshore domiciles.
Thomas M. Jones PC, Captive Insurance and Reinsurance, Tax
Tom Jones was mentioned in the March 27 issue of Risk & Insurance for receiving the Captive Insurance Companies Association's 2008 Distinguished Service Award.
Thomas M. Jones PC, Captive Insurance and Reinsurance, Tax
Tom Jones was quoted in the March 17 issue of Business Insurance about how the IRS reaffirmed its long-held position that excise taxes on insurance and reinsurance purchased from foreign insurers and reinsurers apply each time a risk is ceded, but also has offered an amnesty period to encourage compliance. "How will the information flow work, particularly if a U.S. risk is sliced and diced in co-mingled excess-of-loss treaties...lots of administrative problems," said Mr. Jones.
Thomas M. Jones PC, Captive Insurance and Reinsurance, Tax
Art Rosen was quoted in the March 15 issue of State Income Tax Monitor about how a guilty plea and an agreement to pay restitution over tax fraud will not always pull you off the state's hook. "A lot of people get blindsided by this," said Mr. Rosen. "Unless the taxation department signs off on the plea agreement, they are not prevented from seeking past due tax, penalties and interest. The attorney general can offer a deal, but the tax department doesn't have to honor it."
Arthur R. Rosen, State & Local Tax, Tax
Art Rosen was quoted in the March 15 issue of Sales & Use Tax Monitor about how company tax pros should not be surprised when an auditor turns to an alternative methodology or when a tax appeals panel upholds that back-up approach. "It's been going on pretty regularly over the last 15 years," said Mr. Rosen.
Arthur R. Rosen, State & Local Tax, Tax
Tom Jones was mentioned in the March 14 issue of Chicago Daily Law Bulletin for going to the University of Illinois in Champaign to address the students in the class called "Law 794: International Business Organizations: The Cayman Islands."
Thomas M. Jones PC, Captive Insurance and Reinsurance, Tax
Art Rosen was quoted in the February 29 issue of Sales & Use Tax Monitor about how the New York Taxation Division has undertaken some creative approaches to calculate a business' taxable sales, when that taxpayer lacks the proper records to satisfy the auditor. "The state can pick any method that they want to on an audit, when there are insufficient records," pointed out Mr. Rosen. "The taxpayer usually can't prove the method was unreasonable if the records are not there."
Arthur R. Rosen, State & Local Tax, Tax
Tom Jones was quoted in the February 25 issue of the National Underwriter about how the IRS dropped its proposed captive tax proposal. Mr. Jones responded that the news is "gratifying -- a once-in-a-career event, maybe." He added that "apparently, they took the [industry's] comments seriously."
Thomas M. Jones PC, Captive Insurance and Reinsurance, Tax
Tom Jones was quoted in the February 25 issue of Business Insurance about how the captive insurance industry is savoring a huge victory in last week's Internal Revenue Service decision to withdraw a proposed rule that would have stripped hundreds of captives of a key tax advantage, but other regulatory threats remain. "It really was a three-pronged approach," said Mr. Jones.
Thomas M. Jones PC, Captive Insurance and Reinsurance, Tax
Tom Jones was mentioned in the February 22 issue of Chicago Daily Law Bulletin for receiving the Captive Insurance Companies Association's 2008 Distinguished Service Award.
Thomas M. Jones PC, Captive Insurance and Reinsurance, Tax
Art Rosen was quoted in the February 5 issue of State Income Tax Monitor about how the U.S. Supreme Court won't hear arguments from two affiliated limousine companies and their owner who say New York authorities persecuted them with a sales and use tax assessment. "You need to be able to prove that there was malicious intent," said Mr. Rosen. "There are people in the department of taxation that do tend to probably act in that way, but it's difficult to prove," he added.
Arthur R. Rosen, State & Local Tax, Tax
Robin Greenhouse was referenced in the January issue of The Tax Adviser about FIN 48 compliance. "Effective tax rate reconciliation workpapers, whether created by the taxpayer or the auditor, are part of the tax accrual workpapers" and are thus subject to restraint, Ms. Greenhouse was cited.
Robin L. Greenhouse, Tax, Tax Controversy
Tom Jones was quoted in the January 16 issue of Business Insurance about how the IRS has provided examples of situations in which employers can and cannot take tax deductions for premiums paid in cell captive insurance arrangements. "Cells are attractive to businesses that don't want to go through the time and expense of setting up a captive insurer," said Mr. Jones.
Thomas M. Jones PC, Captive Insurance and Reinsurance, Tax
Greg Palmer was quoted in the January 14 issue of Crain's Chicago Business about how the Chicago Sun-Times may be faced with a tax bill for as much as $530 million. "Most companies faced with large tax liabilities file a protest, which typically triggers years of wrangling with the IRS appeals division," Mr. Palmer said. "It's likely to be a matter of years before this is resolved, given the magnitude of the proposed adjustments," he added.
Gregory G. Palmer, Tax, Tax Controversy
Michael Fayhee and John Tamisiea were quoted in the January 2008 issue of the Chicago Lawyer regarding their representation of The Genlyte Group, Inc. in its definitive merger agreement with Phillips Holding USA.
Michael R. Fayhee, John P. Tamisiea, Corporate, Tax
Art Rosen was quoted in the January 1 issue of Financial Services Law360 regarding the Department of Revenue of Kentucky et al. v. George W. Davis et al. "It might be seen as a real undue burden on the states if it were to apply retroactively," Mr. Rosen said. "If that were to happen, Congress would probably take action immediately to address it in some way. Either way, Congress would have the ability to address the municipal bond taxation issue. But Congress can decide not to get involved at all, thus allowing the Supreme Court's ruling to stand," he added.
2007
The Washingtonian released its fifth list of "Big Guns" in the December 2007 issue. The Washingtonian selects "Big Guns" based on peer recommendations and follow-up interviews. The following McDermott lawyers were named "Big Guns": Bobby R. Burchfield, Joel M. Freed and Blake D. Rubin.
Bobby R. Burchfield, Joel M. Freed, Blake D. Rubin, Intellectual Property, Tax, Trial
Art Rosen was quoted in the December 15 issue of Sales & Use Tax Monitor about how businesses are well advised not to rely too heavily on their postage meters as acceptable proof of timely delivery in tax disputes. "That's why I always send letters for that by registered mail," said Mr. Rosen. "Otherwise, it comes down to credibility. You need a rule like this, or people would flout the statutes of limitations law," he added.
John Lutz was quoted in the December 10 issue of The Bond Buyer about how the turbulence blowing global financial markets askew has not slowed the creation of tender-option bond trusts, according to new data compiled from the major credit rating agencies. "You're certainly going to see residual owners react to the availability of liquidity by moving trusts from one program to another," Mr. Lutz said.
John T. Lutz, Finance & Banking, Tax
Tom Jones was quoted in the November 19 issue of Business Insurance on how Bermuda's regulatory regime is driving innovative insurance ideas. Unlike the crazy-quilt of state regulation that prevails in the United States, the Bermuda regime has always emphasized efficiency and sought to accommodate the needs of sophisticated policyholders, while also supervising insurer licensing and solvency, those familiar with the domicile say. "In the United States, Vermont has been particularly responsive to captive owners, amending captive laws to allow reciprocals, not-for-profit companies and other variations on the captive form," Mr. Jones said.
Blake Rubin was quoted in the November 9 issue of Tax Analysts about how the Treasury and IRS officials at a November 7 District of Columbia Bar Taxation Section program said they are continuing to analyze the complex theories behind contributions of property to partnerships and develop a grounded approach in the accompanying tax rules. "An implied result of the approach taken by the government is a construct of lawyers," said Mr. Rubin. "There remain(s) a lack of guidance for secondary and tertiary issues under section 704(c)(1)(A)," he added.
Tom Jones was mentioned in the October 22 issue of National Underwriter for chairing the task force reviewing the proposed IRS regulations and developing recommendations to the CICA board for an industry response.
Tom Jones was quoted in the October 15 issue of Business Insurance about how the captive insurance industry is gearing up to fight proposed Internal Revenue Service rules that would strip a key tax break now enjoyed by hundreds of captives. "Through the proposed rules, the IRS is attempting to override judicial decisions as well as its own prior rulings," said Mr. Jones.
Art Rosen was quoted in the October 15 issue of Sales & Use Tax Monitor on how some states continue to give their auditors considerable wiggle room in deciding when an observation test is justified during a sales and use tax audit. "We've seen a lot of them over the last 10 years," said Mr. Rosen.
Peter Faber was quoted in the October 10 issue of the New York Sun about how Congress is backing off legislation to raise taxes that would hit the New York's private equity industry, but now London has announced plans to do just that. "Anything that arguably makes London a less attractive place to do private equity deals or anything else benefits New York because we are in direct competition," Mr. Faber said.
Blake Rubin, Andrea Whiteway and Jon Finkelstein were mentioned in the October 1 issue of International Tax Review for joining McDermott’s Tax Department in Washington, D.C.
Jon Finkelstein, Blake D. Rubin, Andrea Macintosh Whiteway, Tax
Lydia Kelley was quoted in the September 28 issue of the Boston Business Journal about how more law school graduates are accepting jobs in other industries rather than joining law firms. "We do see biotechs and investment banks looking at law students, but you also have law students looking," said Ms. Kelley. "You've got a generation of law students who want to look at all their options, whereas as recently as a few years ago many students would be looking primarily at law firms," she added.
Art Rosen was quoted in the September 15 edition of Sales & Use Tax Monitor regarding a New York-based manufacturer being held liable for a sales and use tax audit assessment based on available records. Upon a New York state audit, the manufacturer claimed necessary documents could not be produced once they had been turned over to the Bankruptcy Court. The Tax Appeals Division upheld an audit methodology based on the best records available. "This situation comes up all the time," commented Mr. Rosen. "Clients tell us they can't get access to the records because they're tied up in court. I think it's unfair to hold a company to a certain level of proof when they can't prove something because they don't have access to the documents," he said.
Arthur R. Rosen, Tax, Tax Controversy
Blake Rubin, Andrea Whiteway and Jon Finkelstein were mentioned in the September 5 issue of The Washington Business Journal for joining McDermott’s Tax Department in Washington, D.C.
Jon Finkelstein, Blake D. Rubin, Andrea Macintosh Whiteway, Tax
Blake Rubin, Andrea Whiteway and Jon Finkelstein were mentioned in the September 4 issue of The Wall Street Journal and the September 3 issue of The Washington Post for joining McDermott’s Tax Department in Washington, D.C.
Jon Finkelstein, Blake D. Rubin, Andrea Macintosh Whiteway, Tax
Blake Rubin, Andrea Whiteway and Jon Finkelstein were mentioned in the September 2 issue of the Tax Grotto for joining McDermott’s Tax Department in Washington, D.C.
Jon Finkelstein, Blake D. Rubin, Andrea Macintosh Whiteway, Tax
Dirk Pohl was quoted in the August issue of Juve Rechtsmarkt regarding the announcement of the new partner Peter Bauschatz.
Art Rosen was quoted in the August 31 edition of Sales & Use Tax Monitor regarding a recent ruling by the Tax Appeals Division in New York that refused to make an employee liable for a company’s unpaid sales taxes. "Just because you sign documents and have that authority doesn’t mean you’ve got the authority to be a responsible party," stated Mr. Rosen.
Arthur R. Rosen, Tax, Tax Controversy
Robin Greenhouse was quoted in an August 31 article published by Tax Analysts regarding the district court decision in United States v. Textron. The district court refused to enforce an IRS summons for the tax accrual workpapers of Textron Inc. and its subsidiaries, finding that the workpapers are protected by the work product privilege and that Textron didn’t waive that privilege by disclosing the documents to Ernst & Young, its independent auditor. Ms. Greenhouse said Textron was correctly decided and a significant win for taxpayers. “The long and the short of it is an issue of fairness. The court may have been influenced by fairness. That’s what really shows up on the last two pages of the opinion,” stated Ms. Greenhouse.
Robin L. Greenhouse, Tax, Tax Controversy
Lydia Kelley was quoted in the August 27 issue of The National Law Journal about how law firms continue to experiment with technology and new summer associate program models to enhance recruitment. According to Ms. Kelley McDermott hones its message and selling points through firmwide interview training for all lawyers. "It's making sure our attorneys understand the importance of being aware of the headline case in D.C. or the pro bono award in the Silicon Valley," Ms. Kelley said.
Blake Rubin, Andrea Whiteway and Jon Finkelstein were mentioned in the August 23 issue of Legal Times and the August 24 edition of The Daily Deal for joining McDermott’s Tax Department in Washington, D.C.
Jon Finkelstein, Blake D. Rubin, Andrea Macintosh Whiteway, Tax
Art Rosen was quoted in the August 15 edition of Sales & Use Tax Monitor on how New York state's fraud penalty against a corporation for uncollected sales tax was voided, and then the penalty against the individual responsible officer was. "This one's pretty clear. It says if there's a conciliation notice saying the company is not guilty of fraud, then the fraud charges are removed vis-à-vis the responsible person," Mr. Rosen said.
Arthur R. Rosen, State & Local Tax, Tax
Uwe Goetker, Norbert Schulte, Rick Mitchell, Dirk Pohl and Volker Teigelkotter were mentioned in the July 11 issue of Börsenzeitung regarding the representation of Dr. Alfred Schefenacker, owner of the Schefenacker Group, in connection with the Group's comprehensive financial and operational restructuring.
Uwe Goetker, Richard Mitchell, Dirk Pohl, Norbert Schulte, Volker Teigelkötter, Corporate, Employee Benefits, Germany, London, Tax
Tom Jones was mentioned in the June 14 issue of National Underwriter Online News Service about speaking at the online seminar presented by Chicago-based insurance broker Aon Corporation titled “Evaluating and Developing an Effective Captive Strategy.”
Thomas M. Jones PC, Captive Insurance and Reinsurance, Health Care Industry Captive Insurance, Tax
Andrea S. Kramer was featured in the June 2007 issue of Lawdragon magazine in the "Top 500 Leading Dealmakers" ranking. Lawdragon creates its guides to the best lawyers in the United States through a unique combination of online balloting and independent research.
Andrea Kramer was mentioned in the June issue of the Chicago Lawyer for receiving the first Founders Award from The Women's Treatment Center.
Art Rosen was quoted in the May 31 issue of State Income Tax Monitor on whether a company’s monetary judgment in a lawsuit should be taxable as business income. "If it's a normal lawsuit it's probably not going to be taxable. But if it's greenmail or a major copyright infringement, it would probably qualify as income.” Mr. Rosen said.
Arthur R. Rosen, Tax, Tax Controversy
Art Rosen was quoted in the May 31 issue of Sales & Use Tax Monitor about how auditors will switch their methods when they suspect that a business may have fudged their taxable sales figure in hopes of retaining more funds. "An auditor frequently uses a purchase mark-up methodology to assess tax when a company's sales don't jibe with the owner's books and records," said Mr. Rosen.
Arthur R. Rosen, Tax, Tax Controversy
Tom Jones was mentioned in the May 30 issue of National Underwriters about speaking at the CIC-DC’s “Solving Health Care Liability Risks Through Alternative Risk Transfer” session on June 5.
Peter Faber was quoted in the May 29 issue of Dow Jones Newswires about several steps to guard against being doubly taxed if you live in one state but spend a lot of time relaxing in another. "There are an awful lot of people who play games with this, who have a winter place in Florida and spend only four months down there," said Mr. Faber.
Peter L. Faber, Tax, Tax Controversy, Tax Exemption
Andrea Kramer was named among in The National Law Journal 50 Most Influential Women Lawyers in America published on May 28.
Andrea S. Kramer, Derivatives, Structured Finance and Financial Products, Tax
Peter Faber was quoted on May 22 on The Wall Street Journal Online about the challenge by a Kentucky couple to a Kentucky state law that exempts interest on bonds issued within Kentucky while taxing interest on most non-Kentucky municipal bonds. Most states that have a state income tax, such as New York and California, have similar laws. "This is an issue of great national importance that involves many investors in state and local bonds," said Mr. Faber.
Peter L. Faber, State & Local Tax, Tax, Tax Controversy, Tax Exempt Bonds
Fred Ackerson was mentioned in the May 14 edition of the Crain’s Chicago Business about recently joining McDermott’s Tax Department in Chicago.
Fred M. Ackerson, State & Local Tax, Tax
Fred Ackerson was mentioned in the May 8 edition of the Daily Deal/The Deal and the May 10 edition of the Chicago Daily Law Bulletin about recently joining McDermott’s Tax Department in Chicago.
Fred M. Ackerson, State & Local Tax, Tax
Lydia R.B. Kelley was quoted in the May issue of the Chicago Lawyer in an article about how to best recruit and keep talented new associates. "Candidates must possess the skills to attract work and clients outside of the firm and have the ability to seek projects and experience within the firm," Ms. Kelley said.
Lydia R.B. Kelley, Tax, Tax - Acquisitions & Restructurings
Art Rosen was quoted in the April 30 issue of Sales & Use Tax Monitor about the tangible version of a product is exempt from sales tax while the electronic version is taxable. "I read that opinion and thought, 'Whoa, you don't see that every day,'" Mr. Rosen said.
Arthur R. Rosen, State & Local Tax, Tax, Tax Controversy
Art Rosen was quoted in the April 15 issue of Sales & Use Tax Monitor about how the Taxation and Finance Department ruled that an out-of-state seller of service contracts established sufficient nexus in New York to have to register and collect sales and use tax. "New York, like California, has been a physical presence state when it comes to determining nexus," Mr. Rosen said.
Arthur R. Rosen, State & Local Tax, Tax
Jean Pawlow and Elizabeth Erickson were mentioned April 6 in the Blog of the Legal Times for joining McDermott’s tax practice.
Elizabeth Erickson, Jean A. Pawlow, Tax, Tax Controversy
Peter Faber was quoted in the March 27 edition of The New York Times in an article about the New York governor's office closing "loopholes" that corporations use to reduce their tax bills in order to balance the state budget, although many business leaders say there are no loopholes to close.
Peter L. Faber, State & Local Tax, Tax
Peter Faber was quoted in the March 27 edition of The New York Times article about the New York governor’s office closing "loopholes" that corporations use to reduce their tax bills in order to balance the state budget. However, many business leaders say there are no loopholes to close. "All the way back to 1945, New York has held out its refusal to adopt a unitary tax system as an inducement to headquarters companies to locate here," Mr. Faber said. With this change, he added, "you could have a company with an out-of-state subsidiary that has no operations in New York but sells to New York customers, and that company could be dragged into a New York tax return."
Tom Jones was quoted in the March 12 issue of Business Insurance in an article detailing the recent legislative activity on captive insurance laws around the globe. "Most of the domiciles are tweaking their statues, rather than changing them," Mr. Jones said.
Thomas M. Jones PC, Insurance, Insurance Companies and Products Tax, Tax
Robert H. Dilworth was mentioned in The Wall Street Journal on February 28 for joining McDermott as a partner in the Tax Department in the Washington, D.C. office.
Ralph DeJong was quoted in the February 26 issue of BNA, Inc. Daily Tax Report in an article regarding the IRS's 2006 Form 990. "What it leaves open is the very cumbersome and intrusive process of determining from directors and independent contractors who they may be related to, what business interests they may have outside the organizations they serve on, when they or their family members may be related through trusts, partnerships, or business corporations, and the extent of those relationships," Mr. DeJong said.
Ralph E. DeJong, Employee Benefits, Tax
Art Rosen was quoted in the February 15 and February 28 issues of State Income Tax Monitor on the $1 billion in business and personal tax cuts including in New York mayor Michael Bloomberg's preliminary city budget. "Even with the increase, the per-partner deduction is out of touch with reality," Mr. Rosen said. "There should be something related to compensation levels rather than just a small flat amount for the deduction."
Arthur R. Rosen, State & Local Tax, Tax
Keith Staats was quoted in the February 15 issue of Sales & Use Tax Monitor in an article concerning the compliance and legal difficulties of the tax holiday proposals of Chicago mayoral candidate Dorothy Brown. The holidays would apply only to certain areas and certain businesses resulting in complicated enforcement and questionable constitutionality. "You can't implement a sales tax holiday without enabling legislation," Mr. Staats said.
Michael Peregrine was quoted in the February 6 issue of TaxAnalysts in an article discussing a list that was prepared by the IRS of preliminary guidelines designed to help charity boards improve their oversight of charities. "Charity boards should take a good look at the guidelines. I wouldn't just blow these off as insignificant or as breaking no new ground. The guidelines make a couple of important points," Mr. Peregrine said.
Michael W. Peregrine, Health, Tax, Tax Exemption
Tom Jones was quoted in the February 4 issue of the Hartford Courant in an article on the expansion of "captive" insurance companies in Connecticut. "Captives are not a 'tax dodge,' but if they meet certain IRS qualifications, they can take a tax deduction on the money the put into reserves for claims," Mr. Jones said.
Thomas M. Jones PC, Insurance, Insurance Companies and Products Tax, Tax
Art Rosen was mentioned in the February issue of the Metropolitan Corporate Counsel as one of the overall planning chairs for the upcoming New York State Bar Association’s Eleventh Annual New York State and City Tax Institute.
Arthur R. Rosen, State & Local Tax, Tax
Art Rosen was quoted in the February issue of Managing Accounts Payable for a speech he recently gave at NYU, where he stated that the atmosphere of the new Congress was more friendly to the passage of the Streamlined Sales Tax.
Arthur R. Rosen, State & Local Tax, Tax
Art Rosen was quoted in the January 31 issue of the Sales & Use Tax Monitor and in the February issue of Tax Incentives Alert in an article about sales tax exemptions on property capital improvements in New York. “New York has always been very mechanical in the way they apply the capital improvement part of the sales tax law. They look at the letter of the law rather than the merits of an individual case,” Mr. Rosen said.
Arthur R. Rosen, State & Local Tax, Tax
Art Rosen was mentioned in a January 30 press release from The Global Knowledge Congress as a panelist in their upcoming "48 Fin: Practical Recommendations" teleconference to be held on March 8. The teleconference features a panel of experts aimed at clarifying the recently implemented 48 FIN tax regulations and providing recommendations for the organizations affected.
Mario Martinelli, Andrea Tempestini and Carlo Paolella were mentioned in the January 20 issue of Italia Oggi as new tax partners in our Rome office.
Mario Martinelli, Carlo Maria Paolella, Andrea Tempestini, Italy, Tax, Tax - Italy
Peter Nias was listed on The Times Law Panel of 100 lawyers published on January 16. The Law Panel is set to boost the legal coverage in the paper and serve as a sounding board for issues and the centerpiece of The Times' online law section.
Peter M.W. Nias, London, Tax, Tax - London
Art Rosen was quoted in the January 15 issue of Sales & Use Tax Monitor citing the MTC 95-1 bulletin as the interpretation used by New York tax authorities to apply sales tax to vendors using in-state, third-party repair services for service contracts purchased online.
Arthur R. Rosen, State & Local Tax, Tax
Carlo Paolella, Mario Martinelli and Andrea Tempestini were mentioned in the January 5 issue of Il Mondo in regard to their move to McDermott from Trivoli & Associates.
Mario Martinelli, Carlo Maria Paolella, Andrea Tempestini, Italy, Tax, Tax - Italy
Carlo Paolella, Mario Martinelli and Andrea Tempestini were mentioned in the January 4 issue of Economy in regard to their move to McDermott from Trivoli & Associates.
Mario Martinelli, Carlo Maria Paolella, Andrea Tempestini, Italy, Tax, Tax - Italy
Thomas Giegerich, Mario Martinelli, Andrea Tempestini and Carlo Paolella were mentioned in the January 1 issue of The National Law Journal for joining McDermott's Tax Department.
Thomas W. Giegerich, Mario Martinelli, Carlo Maria Paolella, Andrea Tempestini, International Tax, Italy, Tax
Jean Pawlow and Elizabeth Erickson were mentioned the January 1 issue of International Tax Review and the January 9 issue of The Deal for joining McDermott as partners in the Tax Department based in its Washington, D.C. office.
Elizabeth Erickson, Jean A. Pawlow, Tax
2006
Carlo Paolella, Mario Martinelli and Andrea Tempestini were mentioned in the December 18 issues of Daily Deal and The Lawyer about joining McDermott's Italian tax practice.
Thomas Giegerich was mentioned in the December 15 issue of The New York Times for joining McDermott as a partner in the New York office and the head of the office's federal tax practice.
Art Rosen was quoted in the November 30 issue of State Income Tax Monitor on West Virginia Supreme Court of Appeals' decision to uphold economic nexus on MBNA America Bank's marketing. According to Mr. Rosen, the decision underscores "the definite need for federal legislation like H.R. 1956," which would order a physical presence nexus standard for state business activity taxes.
Arthur R. Rosen, State & Local Tax, Tax
Art Rosen was quoted in the November 15 issue of Sales & Use Tax Monitor in an article on the appointment of Barbara G. Billet as acting commissioner of the New York Taxation and Finance Department following the resignation last month of Andrew S. Eristoff. "One of the things I've learned in many years in the business is that the attitude of the person at the top of the agency will trickle down to the line people eventually," Mr. Rosen said.
Arthur R. Rosen, State & Local Tax, Tax
David Noren was quoted in the November 1 issue of Euromoney Institutional Investor in an article concerning the need for corporate tax reform and the snails' pace at which it had progressed. "There doesn't seem to be a huge push to get anything done quickly…It's hard to be too optimistic about tax reform. I don't think anyone thinks the whole process is dead but it certainly hasn't got anywhere in the past year," Mr. Noren said.
On October 25 on AccountingWEB.com, an article on the patenting of tax strategies references the article, "Whose Tax Law Is It?" by Paul Devinsky published in the October 16 issue of Legal Times. The article references the author's statement that tax patents could lead to unequal treatment under the tax code, becoming "government issued barbed wire" for some taxpayers.
Paul Devinsky, Intellectual Property, Tax
On Friday, October 20, the front page of The New York Times business section included an article on the patenting of tax strategies with a significant reference to the article, "Whose Tax Law Is It?" by Paul Devinsky published in the October 16 issue of Legal Times. This article also appeared in the International Herald Tribune on October 19 and the Kansas City Star on October 25.
Paul Devinsky, Intellectual Property, Tax
Art Rosen was quoted in the October 15 issues of State Income Tax Monitor and Sales & Use Tax Monitor in an article about a company official who tried to avoid liability for unpaid sales tax. In reference to the official's claim that the signatures on tax returns weren't his, Mr. Rosen said, "I'm surprised the state didn't try to get this guy for lying to them on top of what he owed. They must be getting soft or something."
Arthur R. Rosen, State & Local Tax, Tax
Joseph Rubinelli was quoted in the Fall 2006 issue of Wealth in an article about the challenges faced by estate planners as Congress continues to debate revisions to the federal estate tax. Mr. Rubinelli said, "Your plan needs to take into account your real beneficial priorities, so tax law changes don't leave a lopsided estate plan."
Joseph O. Rubinelli Jr., Private Client, Tax
Peter Nias was quoted in the October 1 issue of International Tax Review on the negative impact of the British tax authority’s anti-arbitrage initiative on the certainty of advice he can give business clients.
Peter M.W. Nias, International Tax, London, Tax, Tax - London
Peter Faber was mentioned in the September 5 issue of Tax Analysts about State Tax Notes publishing its 15th anniversary issue. Mr. Faber's essay on changes in tax practice over the last 15 years will appear in the issue.
Peter L. Faber, State & Local Tax, Tax
Carol Harrington was quoted in the September 4 issue of Fortune magazine about the U.S. Patent and Trademark Office granting patents to people who claim to have invented novel ways of avoiding taxes. "If you can patent an interpretation of the tax law, why not patent anyone's legal advice?" Ms. Harrington said.
Carol A. Harrington, Private Client, Tax
Art Rosen was quoted in the August 31 issue of Sales & Use Tax Monitor in an article detailing the pitfalls companies face in distributing promotional materials in different tax jurisdictions, where local laws may or may not levy sales or use taxes on the materials. Mr. Rosen noted that such a company would need to keep detailed records in case of an audit, and considering the difficulty involved they would have to make a decision. "Either you do want to do it on your own or make an arrangement with the company that's delivering the materials for you to keep track of where you are sending the items for tax purposes," Mr. Rosen said.
Arthur R. Rosen, State & Local Tax, Tax
Robin Greenhouse was quoted in the August 28 issue of Tax Notes about the Sixth Court reversing a district court order that compelled a company to provide documents to the IRS, remanding the case to the district court to grant the company's motion to quash the IRS summons because the documents sought are protected by work product privilege. "The Roxworthy opinion is important because it means another circuit has joined the majority view that work product protects documents prepared 'because of' anticipation of litigation," Ms. Greenhouse said.
Domingo Such was quoted in the July 20 issue of The Wall Street Journal about the tax implications for money sent overseas. "There should be no U.S. gift or income tax consequences if money is sent directly from a foreign person to a U.S. bank account," said Mr. Such.
Domingo P. Such III, Private Client, Tax
Tom Jones was mentioned in the July 2006 edition of ABI/INFORM and Rough Notes about his suggestion leading to one of the International Center for Captive Insurance Education's newest initiatives. Mr. Jones' suggestion involved establishing an advisory counsel made up of various captive regulators.
Thomas M. Jones PC, Captive Insurance and Reinsurance, Insurance, Tax
Art Rosen was quoted in the June 30 issue of State Income Tax Monitor about rolling stock having a decent chance once they get beyond administrative appeals and into court. "I'd say it's about 50-50" odds, he said
Arthur R. Rosen, State & Local Tax, Tax
Susan Nash was quoted in the June 28 issue of Forbes.com in an article about the U.S. Internal Revenue Service proposing comprehensive, long-delayed rules for claiming dependent care tax breaks that will mean more savings for some working parents and less for others. "Employers are going to want to communicate the changes to employees, and employees need to pay attention so they put the right amount of money aside," warned Ms. Nash.
Susan M. Nash, Employee Benefits, Tax
Philip McCarty was quoted in the June 15 issue of Technology News about how experts say the combination of a recent law with a new interpretation of U.S. tax code pertaining to inter-company payments may have a significant impact on technology companies by cutting off their ability to use the research and development tax credit. Mr. McCarty said the issue could have a big impact on tech companies. "The effect of it will be for a lot of companies that pay back dividends in 2005 to reduce or eliminate the credit for the next four years," he said. "The IRS is wrong on the issue and ignoring the statute."
Andrea Kramer was quoted in the June 2006 issue of Global Finance about how the corporate use of derivatives is becoming increasingly commonplace, but while they are easier than ever to use, the risks still remain. Credit derivatives are currently favored because they provide a hedge in case one of your close business partners falls on bad times. "If your biggest client is IBM, and you're afraid IBM is going to slip on a banana peel, you might get coverage based on IBM's creditworthiness," Ms. Kramer said.
Andrea S. Kramer, Financial Products, Trading & Derivatives, Structured Finance and Derivatives, Tax
Fred Chilton, Peter Faber, Jerry Kaplan, Peter Nias, Arndt Raupach, James Riedy, Art Rosen and Lowell Yoder were recommended in the Cross-border Tax on Corporate Transactions: PLC Which Lawyer Handbook published by Practical Law Company. McDermott was highly recommended.
Frederick Chilton, Peter L. Faber, Jared Kaplan, Peter M.W. Nias, Arndt Raupach, James A. Riedy PC, Arthur R. Rosen, Lowell D. Yoder, Germany, International, International Tax, London, Tax, Tax - Germany, Tax - London
Peter Faber was quoted in the May 31 issue of Technology News in regarding New York's new stance on the rule affecting telecommuters. When an employee lives in another state and is assigned to the employer's New York office, the days the person works at home won't be counted as New York days if the home office is a "bona fide employer office." Thus, these employees owe New York taxes only on their income from work actually done in the New York office. "The changes open the door for more genuine telecommuters to qualify," Mr. Faber said.
Peter Faber was quoted in the May 31 issue of The Wall Street Journal regarding New York's new stance on the rule affecting telecommuters. When an employee lives in another state and is assigned to the employer's New York office, the days the person works at home won't be counted as New York days if the home office is a "bona fide employer office." Thus, these employees owe New York taxes only on their income from work actually done in the New York office. "The changes open the door for more genuine telecommuters to qualify," Mr. Faber said.
Art Rosen was quoted in the May 31 issue of State Income Tax Monitor and the June 15 issue of Sales & Use Tax Monitor in an article about RICO claims. "the bottom line is that it appears that RICO, proposed as a tool to force a company to collect tax by another taxpayer, is not allowable," he said.
Arthur R. Rosen, State & Local Tax, Tax
Art Rosen was quoted in the May 15 issue of Sales & Use Tax Monitor in an article about the Streamlined Sales Tax Project. "It seems to me that the problems with enacting the laws in states like Tennessee, Ohio, Texas and Utah regarding origin-based sourcing will [effectively] keep them out of the process for the foreseeable future," he said.
Arthur R. Rosen, State & Local Tax, Tax
Jean Pawlow was quoted in the May 11 issue of Tax Notes Today in an article about how the Third Circuit ruled that the telephone excise tax does not apply to long distance services for which the charges do not vary by distance and time, becoming the fifth federal appeals court to invalidate the excise tax on those services. "Many taxpayers are anticipating that the Treasury will take action to resolve the many outstanding claims," Ms. Pawlow said.
Jean A. Pawlow, Tax, Tax - Telecom
David Noren was mentioned in the May 1 issue of the Legal Times and the April 1 issue of International Tax Review regarding his move from the Joint Committee on Taxation to McDermott.
David G. Noren, International Tax, Tax
David Noren was mentioned in the April 3 issue of the Washington Post regarding his move from the Joint Committee on Taxation to McDermott.
David Noren is listed in the March 31 issue ofThe Daily Deal regarding his move from the Joint Committee on Taxation to McDermott.
Steven Hannes was mentioned in the March 27 issues of Legal Times about being elected president of the USA Branch of the International Fiscal Association (IFA) and chair of its executive committee.
Steven P. Hannes, International Tax, Tax
David Fuller was quoted in the March 2006 issue of Corporate Counsel in an article about how businesses will have to more often publicly report when CEOs use the corporate jet for personal trips if the U.S. Securities and Exchange Commission adopts new rules on executive compensation. "Personal use of corporate jets has tripled over the past decade," according to a survey of proxy statements conducted last year by Mr. Fuller. "The rise can be partly attributed to 9/11," he said.
, Aircraft Acquisition and Operation, Tax
Arndt Raupach and Dirk Pohl were mentioned in the March 2006 issue of Juve Rechtsmarkt as renowned tax lawyers which came to McDermott.
Dirk Pohl, Arndt Raupach, Germany, Tax, Tax - Germany
Dirk Pohl was quoted by Dow Jones on February 23 in an article about how the European Court of Justice ruled illegal a German law that taxes branches of foreign companies at a higher rate than that of subsidiaries incorporated in Germany. Mr. Pohl said the ruling opens the way for other companies to demand considerable tax refunds. However, the ruling will have no impact on the future taxation of foreign companies in Germany. "The German government put into effect a tax rate of 25% for both branches and subsidiaries in 2000," Mr. Pohl said. "The only relevant point now are tax refund claims for the time before the legislation changed," he said.
Dirk Pohl, Germany, Tax, Tax - Germany
Dirk Pohl was quoted in the February 23 issue of Dow Jones News Service in an article about receiving a favorable decision for CLT-UFA from the European Court of Justice, which ruled Germany violated European Union law.
Dirk Pohl, Germany, Tax, Tax - Germany
David Fuller was quoted in the February 20 issue of National Law Journal in an article about how businesses will have to more often publicly report when CEOs use the corporate jet for personal trips if the U.S. Securities and Exchange Commission adopts new rules on executive compensation. Personal use of corporate jets has tripled over the past decade, according to a survey of proxy statements conducted last year by Mr. Fuller.
, Aircraft Acquisition and Operation, Tax
Art Rosen was quoted in the February 15 issue of Sales Income Tax Monitor in an article about the U.S. Supreme Court decision to take up a case in which one steel company is trying to use the federal racketeer influenced and corrupt organizations (RICO) law to sue a competitor over its alleged failure to collect New York state sales tax. Mr. Rosen said it's not unheard of for states to use criminal statutes in corporate tax cases.
Arndt Raupach and Dirk Pohl were mentioned in the January 19 issue of Juve Online as renowned tax lawyers which came to McDermott.
Dirk Pohl, Arndt Raupach, Germany, Tax, Tax - Germany
Art Rosen was quoted in the January 15 issue of Sales & Use Tax Monitor in an article about how a sales tax overpayment can be credited against a previous underpayment-provided the company meets specific conditions. "If you send in a check and you tell the state how to apply it, they have to apply it that way," Mr. Rosen said. "If you don’t specify how the payment is applied, the state can do what it wants with it," he added.
Arthur R. Rosen, State & Local Tax, Tax
McDermott's tax practice was ranked fifth out of 100 firms in terms of size in Tax Business' January/February 2006 issue as well as named us one of the top six firms who are "putting tax first" and in the top five with "expertise in tax."
Tax, Tax - Germany, Tax - London
Dirk Pohl was quoted in the January 2006 issue of Capital regarding the Marks & Spencer decision of the European tax court.
Dirk Pohl, Germany, Tax, Tax - Germany
Gero Burwitz was mentioned in the January 2006 issue of International Tax Review concerning new partners of McDermott.
Gero Burwitz, Germany, Tax, Tax - Germany
Dirk Pohl commented in the January/February issue of Tax Business in an article on whether tax should be an ethical issue as it is encouraged by outside clients as well as from "good corporate citizen" clauses written into company charters.
Dirk Pohl, Germany, Tax, Tax - Germany
2005
Art Rosen was quoted in the December 15 issue of Sales & Use Tax Monitor about the U.S. Supreme Court settling whether one corporate taxpayer can sue a competitor under racketeering laws to start collecting sales tax. Mr. Rosen said it is not unheard of for states to use criminal statutes in corporate tax cases.
Volker Teigelkötter was quoted in the December 15 issue of Handelsblatt regarding changing tax law for compensations.
Volker Teigelkötter, Employee Benefits, Employment - Germany, Germany, Tax, Tax - Germany
Jean Pawlow was quoted the December 13 issue of Tax Notes Today in an article about the difficulties the IRS faced in attempting to continue enforcement of the telephone excise taxes after multiple defeats in court. Now that the Sixth Circuit has also ruled against the IRS, most agree that "it is time for reasonable administrative guidance to be issued directing the IRS and carriers on how to apply the tax," said Ms. Pawlow.
Jean A. Pawlow, Tax, Tax - Telecom
Volker Teigelkötter was quoted in the December 8 issue of Wirtschaftswoche regarding changing tax law for compensations.
Volker Teigelkötter, Employee Benefits, Employment - Germany, Executive Compensation, Germany, Tax, Tax - Germany
Letters, written by Peter Faber and Alan Schwartz, to the Department of Treasury and the IRS, expressing concerns with proposed regulations on the treatment of intercompany transactions among members of consolidated groups in order to calculate the domestic production activities deduction under section 199, were published in the November 29 issue of Tax Notes Today.
Peter L. Faber, Alan J. Schwartz, Tax
Art Rosen was quoted in the October 31 issue of State Income Tax Monitor in an article about the legal fees and value of precedent involved when making a decision on taking a tax case to court. "Insofar as any court case can be considered 'typical,' about $100,000 in outside legal fees is a decent ballpark figure for a tax dispute of $1 million, " said Mr. Rosen.
Arthur R. Rosen, State & Local Tax, Tax
Dirk Pohl was quoted in the 27 October issue of Capital in an article about founders of new businesses and how new judgments of the Finance Court bring hope to concerned companies.
Dirk Pohl, Germany, Tax, Tax - Germany
Art Rosen was quoted in the September 15 issue of State Income Tax Monitor in an article about MCI will need to pay $315 million-plus in back state income taxes to 14 states and the District of Columbia when it operated as WorldCom. Many more states are expected to come after MCI. "I have never seen the 'management foresight' concept put forth before by a major taxpayer. I think you can expect states to be hyper-vigilant about this in the future," Mr. Rosen said.
Arthur R. Rosen, State & Local Tax, Tax
Michael Peregrine was quoted in the September 14 issue of Tax Notes Today regarding the IRS's released proposed regulations that seek to explain the circumstances under which the IRS will both impose intermediate sanctions and revoke tax-exempt status when excess benefit transactions involving exempt organizations occur. Mr. Peregrine said the proposed regulations will "raise the stakes" on the substance of an exempt organization's intermediate sanctions review process. He pointed out that now, for the first time, an exempt organization can be liable for excess benefit transactions by losing exemption; until now only the transaction participants were penalized. "That will back up general counsel who advise their clients to closely scrutinize potential excess benefit transactions," he predicted.
Michael W. Peregrine, Health, Tax, Tax Exemption
Tom Jones was quoted in the September 13 issue of Bestwire in an article about how the IRS has moved to a position of loosening its tax treatment of captive insurers, "The IRS has given up a lot of ground on captive tax issues," Mr. Jones has said.
Thomas M. Jones PC, Captive Insurance and Reinsurance, Insurance, Tax
Michael Peregrine was quoted in the September 12 issue of BNA's Health Care Daily Report in regard to the IRS's September 8 proposed intermediate sanctions regulations that define when excess benefit transactions may place a nonprofit organization's exemption at risk. Mr. Peregrine said the proposed rules state "in clear terms that, if individuals associated with an organization engage in excess benefit transactions, the organization's exempt status will be at risk in appropriate circumstances."
Michael W. Peregrine, Health, Tax, Tax Exemption
Peter Nias was quoted in the September issue of Tax Business in relation to concerns in the UK over what is meant by Her Majesty's Revenue and Custom's criterion of "gaining a tax advantage" and to what extent tax minimization is a "proper commercial purpose" as this year's deadline for declaring suspect transaction draws closer.
Peter M.W. Nias, London, Tax, Tax - London
Dirk Pohl and Arndt Raupach were mentioned in the September issue of Juve Rechtsmarkt in an article reporting on various lawyers moving from one firm to another; Arndt and Dirk were mentioned for their move to McDermott last year.
Dirk Pohl, Arndt Raupach, Germany, Tax, Tax - Germany
Tom Jones was featured in a news brief in the August 29 issue of the Chicago Daily Law Bulletin on being chosen by the Vermont Captive Insurance Association as the recipient of its 2005 Industry Service Award.
Thomas M. Jones PC, Captive Insurance and Reinsurance, Insurance, Tax
Peter Faber and Art Rosen were listed in "The New York Area's Best Lawyers" guide, published in the August 1-8 issue of New York Magazine .
Peter L. Faber, Arthur R. Rosen, Tax
McDermott was recommended in Legal 500 European Edition 2005 for the practice area of tax: "McDermott Will & Emery Rechtsanwälte LLP's tax practice is making dramatic progress under Ralf Eckert, but the lateral hire of the vastly experienced Arndt Raupach along with three lawyers from Raupach & Wollert-Elmendorff Rechtsanwaltsgesellschaft mbH in the summer of 2004 adds real gravitas to the group. [...] The firm provides regular counsel to both notable corporate and high-profile individuals."
Arndt Raupach, Germany, Tax, Tax - Germany
Tom Jones was quoted in the August 2005 issue of Captive & ART Review in an article about the hot legal issues likely to affect captives on both sides of the Atlantic. The U.S. Treasury's recent public opposition to the extension of the Terrorism Risk Insurance Act (TRIA) in its current form has those risk managers and captive owners, who thought the deal was as good as sold, in a slight disarray. However, Mr. Jones thinks few captives will rest on that decision. "Few captives are totally exclusive to writing TRIA, because the government issued informal guidance saying they wouldn't allow gaming of the system. Only a handful of captives would disappear if TRIA isn't extended," Mr. Jones said.
Thomas M. Jones PC, Captive Insurance and Reinsurance, Insurance, Tax
David Fuller was quoted in the article "IRS Focus on Executive Benefits Raises Governance Concerns" in the July 20 newsletter, Dow Jones Corporate Governance regarding powerful executives using corporate jets for personal reasons.
Peter Faber was mentioned in the July 17 issue of The Wall Street Journal - Sunday in a tax Q&A column in regard to filing of an appeal to the U.S. Supreme Court on behalf of Tennessee man, a Firm client, who had to pay New York taxes on all of his income even though he spent only about 25 percent of his working days in New York. Mr.Faber mentioned he knows of other similar cases.
Peter L. Faber, State & Local Tax, Tax
Tom Jones was quoted in the July 14 issue of BestWire about the IRS ruling further clarifying tax treatment for captives. Mr. Jones said while the IRS ruling found that each of the four hypothetical arrangements had sufficient risk transfer for insurance states, in three of the four, "risk distribution" was lacking for federal tax purposes.
Thomas M. Jones PC, Captive Insurance and Reinsurance, Insurance, Tax
Peter Faber was quoted in the July 13 issue of The Wall Street Journal in a business brief about his filing of an appeal to the U.S. Supreme Court from the New York's Court of Appeals' ruling that a Tennessee man, a Firm client, had to pay New York taxes on all of his income from a New York employer – even though he spent only about 25 percent of his working days in New York.
Peter L. Faber, State & Local Tax, Tax
McDermott was recommended in Der Syndikus - Jahrbuch 2005 - for their tax practice: "Under direction of Ralf Eckert the tax practice of McDermott Will & Emery Rechtsanwälte Steuerberater LLP advanced very well. With the lateral hire of Arndt Raupach and three colleagues of Raupach & Wollert-Elmendorff Rechtsanwaltsgesellschaft mbH in the summer of 2004 the team got extra know-how. McDermott advises very well-known companies as well as important private clients."
Arndt Raupach, Germany, Private Client, Tax, Tax - Germany
David Fuller was quoted in the June 28 issue of the Financial Times in a column about business owners and executives using corporate jets for personal travel.
, Aircraft Acquisition and Operation, Tax
Tom Jones was quoted in the June 27 issue of Business Insurance in an article about how the IRS is asking for public comment on whether a wide variety of captive insurance funding and design arrangements are, in fact, insurance and thus entitled to favorable tax treatment. "The IRS is trying to understand captive industry innovations before they make a definitive announcement. This is a good turn of events," Mr. Jones said.
Thomas M. Jones PC, Captive Insurance and Reinsurance, Insurance, Tax
Tom Jones was quoted in the June 23 issue of BestWire about the IRS ruling hinting at outreach on thorny insurance issues. Mr. Jones said that "in practically, there are almost no entities" to which the ruling would seem to apply, either among offshore or domestic captives.
Thomas M. Jones PC, Captive Insurance and Reinsurance, Insurance, Tax
Michael Peregrine was quoted in Modern Healthcare on June 20, in the article "Economists Onboard." Regarding the possibility of the Senate Finance Committee passing new guidelines for not-for-profit businesses, Peregrine said "A lot of boards are going to have even more of an incentive to appoint people who bring a certain level of expertise. But the boards of larger, more sophisticated healthcare organizations are already looking to broaden their perspective. These billion-dollar-a-year organizations are looking to raise the bar, and they're well-served by having in their midst someone with broad experience." Even though the toughest new federal accounting rules don't yet apply to not-for-profit hospitals, the message remains clear: "The spin-off from Sarbanes-Oxley is to seek people with specific expertise, especially in the areas of healthcare financing," Peregrine said.
Michael W. Peregrine, Health, Tax, Tax Exemption
David Fuller was quoted by Bloomberg on June 7 regarding executives' personal use of corporate jets and a new rule by the IRS that limits deductions for all costs of flying company jets when used even partially for personal reasons.
, Aircraft Acquisition and Operation, Tax
Domingo Such was quoted in the Spring 2005 edition of Stages, in an article about how the current sunset provisions in tax laws may affect your financial plans and suggestions on how to be prepared. One suggestion is to be realistic about federal estate-tax changes. "In 2011, the applicable exclusion amount will go back down to $1 million and the top tax rate will rise to 55%," noted Mr. Such. He and other experts expect these rules to change again, although there are no guarantees.
Domingo P. Such III, Private Client, Tax
Peter Faber was quoted in the June 1 issue of International Tax Review about the IRS and Treasury Department issuing revisions to the standards for the written tax advice that were released at the end of 2004. "The rules won't affect the substance of the advice we give but they will affect the amount of paperwork we have to do and, frankly, the cost to the client," Mr. Faber said.
Peter L. Faber, International Tax, Tax
Tom Jones was quoted in the May 2005 issue of Captive & ART Review regarding his 20 years of working with the tax, legal and regulatory aspects of captive insurance companies. "Much to my surprise, I think there is a tremendous interest in captive taxation. I believe there is a healthy interest in learning what is permissible and what may not be," Mr. Jones said.
Thomas M. Jones PC, Captive Insurance and Reinsurance, Insurance, Tax
Peter Nias was quoted in the May 2005 issue of the International Tax Review in an article that discusses a protracted legal wrangle between Marks & Spencer retailers and the UK government for cross-border group relief within the EU. The M&S case is leading the way on this issue, but there are more than 60 other companies making similar claims. "There needs to be some dialogue. The UK may be an island and drive on the left, but it is still part of the EU. The government should anticipate the judgment going against them and work out how best to become compliant and remain competitive at the same time," Mr. Nias said.
Peter M.W. Nias, London, Tax, Tax - London
Peter Faber was quoted in the May 2005 issue of International Tax Review in an article regarding the IRS and Treasury Department's issuance of the recent revisions to the standards for written tax advice that were release at the end of last year. "The rules won't affect the substance of the advice we give but they will affect the amount of paperwork we have to do and frankly the cost to the client," Mr. Faber said.
Peter L. Faber, International Tax, Tax
Art Rosen was quoted in the April 27 issue of the National Journal's Technology Daily about how tax experts predict that 2005 will be a big year for federal legislation to influence state and local tax issues. According to Mr. Rosen, legislation also will soon be introduced that would stipulate that no state or locality could impose a direct tax unless a business has a physical presence in that locality for at least three weeks.
Michael Peregrine was quoted in the April 14 issue of Health Law Reporter in an article regarding the April 5 Senate Finance Committee hearing to discuss changes addressing compensation issues and business operations of nonprofit health care organizations to improve transparency. Mr. Peregrine said, "In particular, the larger health systems ought to take very close note of Commissioner Everson's comments on the similarity of the nonprofit and for-profit models among health care systems." Leadership can expect to be both "perplexed and chagrined by the several proposals to eliminate the rebuttable presumption of reasonableness under the IRS' intermediate sanctions rules," Mr. Peregrine added.
Michael W. Peregrine, Health, Tax, Tax Exemption
Peter Faber was mentioned in the April 6 issue of the Wall Street Journal. The article discusses a recent ruling by New York's Court of Appeals that a computer specialist from Nashville, Tennessee has to pay New York taxes on 100 percent of his income from a New York employer – even though he spent only about 25 percent of his time in New York and the other 75 percent in Tennessee. The decision will be appealed to the U.S. Supreme Court. Mr. Faber commented, "If this decision stands up, there will be virtually no limit on the ability of states to tax nonresident telecommuters."
Peter L. Faber, State & Local Tax, Tax
Arndt Raupach was mentioned in the Who's Who Legal, The International Who's Who of Business Lawyers, as one of the leading lawyers for Corporate Tax.
Arndt Raupach, Germany, Tax, Tax - Germany
Michael Kelleher was quoted in the April issue of CFO Magazine in an article on how simplifications of the U.S. tax code may increase taxes for businesses.
Prof. Arndt Raupach and Dirk Pohl were highly ranked as leading tax lawyers in Germany in the March 21 issue of Focus magazine. As stated in the article, "Only recently the Munich office of McDermott Will & Emery recruited the well-known tax experts Raupach and Pohl from their old firm. Besides lucrative client relations, image also matters. Change of law firms by a top lawyer is perceived in the legal market like a top soccer player signing a contract with a new team in the national soccer league."
Dirk Pohl, Arndt Raupach, Germany, Tax, Tax - Germany
Thomas Donohoe was quoted in the March 21 issue of the Chicago Sun-Times, noted as the attorney representing the Illinois Chamber of Commerce in its lawsuit against the state of Illinois challenging the Industrial Commission Operation Fund Surcharge.
Thomas H. Donohoe, State & Local Tax, Tax
Michael Peregrine was quoted in the February 17 issue of Health Law Reporter in an article regarding the most recent chapter of an ongoing compliance review of Minnesota's nonprofit health care organizations by Attorney General Mike Hatch. Although the report reflects only one Attorney General's interpretation of the law, Mr. Peregrine stated that "it may have broader significance, outside Minnesota, than one might think at first glance… With respect to charity care, nonprofit hospitals are well advised to set aside concerns about the strength of his legal interpretations and his jurisdictional basis, and to focus more on the ‘big picture' projected by his compliance reviews."
Michael W. Peregrine, Health, Tax, Tax Exemption
Art Rosen was quoted in the February 15, issue of Sales & Use Tax Monitor about how an Internet provider was taxed on purchases of phone line access. What makes this case interesting, he said, is that these same issues—"what is the extent of Internet access, what should be taxable and what should not be"-have been debated by Congress.
Arthur R. Rosen, Tax, Tax - Telecom
Art Rosen was quoted in the February 7 issue of The Bond Buyer about the reintroduction of the business-activity tax bill. "There simply is not basis for any contention" that the bill would cause significant state revenue losses," Mr. Rosen said.
Arthur R. Rosen, State & Local Tax, Tax
McDermott Will & Emery was mentioned on February 4 in a PR Newswire entitled Free Income Tax and Student Ad Preparation Available to Low-Income Working Families as a supporter in the Tax Assistance Program through financial assistance and volunteerism.
Pro Bono & Community Service, Tax
McDermott Will & Emery's Tax Practice was ranked fifth out of 100 in terms of size with our tax lawyers representing 19% of the total number of lawyers in the firm. Published by Tax Business in its January/February 2005 issue, the survey also ranks our tax practice among the top five in firms who are "putting tax first," and in the top 10 as "expertise in tax."
Employee Benefits, International, Private Client, Tax
Michael Peregrine was quoted in the January 31 issue of the National Law Journal in regard to nonprofit organizations choosing to implement some of the Sarbanes-Oxley provisions. Mr. Peregrine commented that the efforts by nonprofit corporations to effect these reforms within their own governance structure is a "validation that people think Sarbanes-Oxley principles make good sense. But it is also a sign that [GCs] want to keep their organizations out of trouble."
Michael W. Peregrine, Corporate Responsibility and Governance, Health, Tax, Tax Exemption
Jean Pawlow was quoted in the January 24 issue of Tax Notes in an article concerning litigation over the continued collection of telephone taxes based on outdated law. Ms. Pawlow said that focusing on the common carrier clause insection 4253(f)—a provision that exempts from the phone tax information providers ranging from phone and telegraph companies to radio stations—could allow everyone from the airline industry to distributors to pursue their own phone tax refunds.
Jean A. Pawlow, Tax, Tax - Telecom
Michael Peregrine was quoted in the January 6 issue of Health Law Reporter in an article regarding a review by the IRS of executive compensation arrangements utilized by tax-exempt organizations to reward their top officers. Although no cases have surfaced yet, lawyers representing nonprofit health care organizations will be watching this area closely in 2005. Mr. Peregrine stated, "I think these high-profile cases will jolt some health care organizations which heretofore thought that their own executive compensation processes were meeting IRS standards."
Michael W. Peregrine, Health, Tax, Tax Exemption
Peter Faber was quoted in the January 3 issue of the New York Law Journal in an article regarding a case that bears critical importance to the future of telecommuting in the state of New York. Even though Thomas Huckaby of Tennessee spends little time in New York and virtually does no work in New York, the state of New York claims it can tax 100 percent of his income since his employer is based in Queens. "Mr. Huckaby's case presents the plight of a nonresident telecommuter. Telecommuting did not exist when the regulation at issue first appeared on the scene, but it is widespread now," Mr. Faber argued in his brief.
Peter L. Faber, State & Local Tax, Tax
2004
David Fuller was quoted in the December 27 issue of Business Week in regard to the IRS' recent decision that gift certificates given to employees to purchase the traditional holiday turkey are a cash equivalent and are now taxable to employees. As a result, many companies have begun to tax the employees or decided not to issue the gift certificates this holiday season.
Andrew Liazos was quoted in the December 6 issue of Tax Notes in regard to whether the American Jobs Creation Act of 2004 is too broad and may go too far. "Instead what we got is a statute that puts all sorts of artificial limitations on what can be done, and in addition to somewhat targeting what was perceived to be abusive, such as haircut provisions and the like, it raises questions about compensation packages that were always considered appropriate and well within the meaning of existing tax rules," commented Mr. Liazos.
Andrew C. Liazos, Employee Benefits, Executive Compensation, Tax
Tom Donohoe was mentioned as counsel for the Illinois Chamber of Commerce in the December 1 issue of theChicago Sun-Times. McDermott Will & Emery represented the Chamber in a lawsuit it filed against Illinois officials challenging the constitutionality of a surcharge on worker's compensation insurance premiums included in a package of increased business fees that the Chamber believed unfairly burdened business in order to balance the state’s budget. Circuit Court Judge Patrick E. McGann ruled that a State of Illinois surcharge imposed last year on Illinois employers was improper.
Andrew Liazos was quoted in the November 29 issue of Fortune in regard to year-end tax planning and the recent tax legislation impacting nonqualified deferred compensation plans. Mr. Liazos recommended that executives take the time now to understand how this legislation will impact their rights under these plans in connection with making year-end deferral elections.
Andrew C. Liazos, Executive Compensation, Tax
James Riedy was quoted in the November 2004 issue of Trade & Forfeiting Review in an article regarding the new corporate-tax bill and its containment of significant international tax reform provisions. The bill does away with the tax benefits for exporters, Mr. Riedy explains. "But what Congress has replaced these benefits with is a general tax reduction applicable to all manufacturing activities whether that product is exported or consumed in the United States."
James A. Riedy PC, Government Strategies, Tax
Andrew Liazos was quoted in the October 12 issue of the Washington Post in regard to a corporate tax bill passed by the U.S. Congress that will impact executive compensation. Mr. Liazos commented that executive compensation is under scrutiny in Congress, as well as the SEC, and that this tax bill would place new restrictions on executives' ability both to defer and to accelerate the payment of retirement benefits on a tax-advantaged basis.
Andrew C. Liazos, Employee Benefits, Executive Compensation, Non-Qualified Deferred Compensation, Tax
Andrew Liazos and David Fuller were quoted in the September 2004 issue of Financial Executive International in regard to the IRS beginning to address "significant non-compliance by public companies with the tax law requirements applicable to executive compensation." "The agency has been developing audit guidelines for its examiners, but has not released a timetable for publication," commented Mr. Liazos. "We'd all love to see IRS guidelines, but they don't have any requirement to release them to the public, though they would release them to the agents for audits," Mr. Fuller said.
Andrew C. Liazos, Employee Benefits, Executive Compensation, Non-Qualified Deferred Compensation, Tax
Peter Faber was quoted in the August 26 issue of BNA's Daily Tax Report in an article regarding how recent regulations issued by the IRS describe methods for determining loss, including the basis disconformity method. The IRS will also accept other methods for determining loss, such as the tracing approach. "There are many ways of skinning the loss of disallowance cat and I think this is one of them," commented Mr. Faber. "It's clear that IRS and Treasury are looking at different approaches and recognizing that an approach that addresses legitimate concerns with respect to one company may not legitimate concerns with respect to another company."
Bernadette Broccolo was quoted in BNA's Daily Tax Report on August 11 regarding the new IRS enforcement effort to stop abuses by groups that award excessive compensation and benefits to officers and insiders. Ms. Broccolo said she will advise her clients that they should be doing internal reviews of compensation to look at things like rebuttable presumption procedures and how they are reporting compensation on Form 990. She noted that organizations should make sure there is ample comparability data and that the body that decides compensation is independent.
Bernadette M. Broccolo, Health, Tax, Tax Exemption
Peter Faber was quoted in the New York Sun on August 4 regarding the proposal that would require states to tax the income of nonresidents based on the physical location of the employee during work hours, not the address of the employer. Mr. Faber explained that "as applied to telecommuters the current rules are just awful. Federal legislation is what happens when state tax departments adopt positions that people regard as unfair."
Peter L. Faber, State & Local Tax, Tax
Robin Greenhouse was quoted in the July 19 issue of Tax Analysts in an article regarding IRS agents asking for attorneys' opinions associated with reportable transactions. She explained that with tax lawyers in the middle of the various forces pressing for opinions, they need to tell clients to "push back" on workpaper requests.
Art Rosen was quoted in the Sunday, July 18 issue of the Los Angeles Times in regard to taxing out-of-state athletes as a result of the so called "jock taxes" on nonresidents. Mr. Rosen commented that virtually every state with an income tax system has the right to tax the income of visiting out-of-towners, but that nonresident tax laws are often vague and it is tough to figure out when a diligent taxpayer should be filing a return in another state. While there does not appear to be hope for the hapless athlete, Mr. Rosen commented that federal legislation (HR 3220) would address the problem of how much time in a state is sufficient to subject a business to tax in that state. HR 3220 would implement a 21-day rule under which a business could only be subjected to tax in a state if it had tangible property or employees in the state for more than 21 days.
Arthur R. Rosen, State & Local Tax, Tax
Arndt Raupach was quoted in the July issue of International Tax Review in an article covering the trend in Germany for tax professionals to move to law firms as a result of Sarbanes-Oxley. Mr. Raupach, who recently joined McDermott from Deloitte along with Dirk Pohl and Rüdiger Von Groll, agreed, "Sarbanes-Oxley is a problem for our clients in several jurisdictions. I think the German legislation will move in the same direction in the future."
Bernadette Broccolo illustrated how the IRS Revenue ruling 2004-51 adds to existing guidelines for joint ventures between exempt and for-profit entities in the May 7 edition of BNA Daily Tax Reporter. She noted that "it complements Rev. Rul. 98-15 by setting forth facts and circumstances the IRS will consider in deciding how to characterize an ancillary joint venture with shared control."
Bernadette M. Broccolo, Health, Tax, Tax Exemption
Peter Faber was quoted in the May 3 edition of the New York Law Journal in an article regarding a ruling that a Tennessee resident, who telecommutes to his New York employer must pay income tax on 100 percent of his earnings even though he only spends a quarter of his time there. Under the convenience of the employer test, out-of-state employees of in-state employers are allowed to allocate income between their home and working states, but only if they work out of New York due to the employer's necessity. Mr. Faber argued that the test contradicts Tax Law §631, which allows New York to tax nonresidents only on income resulting from work "carried on" in this state.
Peter L. Faber, State & Local Tax, Tax
Andrea Kramer was quoted in the May 2004 issue of Fidelity magazine in an article regarding who can benefit from the federal income tax rate of 15 percent for qualified dividends. She explained that "the logic behind all this is that there can only be one recipient of a qualified dividend." She further noted that "in the case of a short sale lending transaction, the recipient of the qualified dividend is the party that actually purchases the stock from the short seller. The purchaser is the only taxpayer who can qualify for the 15 percent tax rate."
Peter Faber was quoted in the April 30 weekend edition of The New York Sun in an article regarding a lawsuit challenging New York's income tax on telecommuters from other states. McDermott is representing a computer programmer, Thomas Huckaby, from Tennessee who lost in a lower appellate court and plans to take his case to the Court of Appeals. In November, the Court of Appeals rejected a similar case from a Manhattan law school professor, who worked part-time from his home in Connecticut. Mr. Faber said the case failed because the court focused on the fact that professor's real job was in New York. "...In Huckaby's case, in contrast, his real job is working in Tennessee...He's a computer programmer, so he could do that anywhere," commented Mr. Faber.
Peter L. Faber, State & Local Tax, Tax
Michael Peregrine was quoted in The New York Times on March 21 regarding enhanced accountability and greater responsibility for nonprofit boards. Michael commented on Eliot Spitzer's (New York's attorney general) proposed package of bills to increase the accountability of nonprofit groups. "When his (Spitzer) efforts didn't go anywhere, I think some charities decided it was just a fad," commented Mr. Peregrine. "But the confluence of high-profile, notorious developments among charities is giving these attorneys general and congressmen the ammunition they need to push these measures through."
Michael W. Peregrine, Health, Tax, Tax Exemption
David Herpe was quoted in the March 15 issue of Forbes regarding recently implemented estate tax rules under the 2001 federal tax legislation, and recent state legislative changes, which can cost individuals millions in estate taxes depending on the state in which they reside at death. The article mentions that Mr. Herpe advised a client that if he died in 2004 his $50 million estate could owe $7.5 million in tax to Illinois, on top of the $21 million it would have to fork over to the feds. But if he changed his legal residency to Florida, where he owned a condominium, his heirs would pay only federal tax.
David A. Herpe, Private Client, Tax
David Fuller was quoted in "Personal use of corporate jets flies on IRS radar," published in the Chicago Tribune on January 25. The article discusses the personal use of corporate jets by executives, including those of Hollinger International. David provided extensive tax background to the article's discussion regarding the valuation and income inclusion of the personal use of corporate jets by executives, including the IRS' increased scrutiny of such use as part of its executive compensation audit initiative. Referencing the IRS' increased scrutiny of the personal use of corporate jets, David commented, "We are already seeing it. We just finished an audit where the corporate jet was a big issue." Commenting on the role of corporate security and aircraft valuation issues, David warned that "It's a dangerous gamble" to fail to follow the IRS special valuation rules for security-related travel.
, Aircraft Acquisition and Operation, Executive Compensation, Tax
David Fuller was quoted on the front page of The Washington Post business section on January 20 in an article reporting on tax breaks for company aircraft. Mentioning MWE's recent seminar on owning and operating private aircraft for business owners, Mr. Fuller stated that considerable tax advantages are available for such aircraft. Although noting limitations exist, David explained that an S corporation shareholder who uses a plane for travel that produced $5,000 in personal taxable income might receive $100,000 in deductions as his or her share of the plane's cost, for a net deduction of $95,000. "It's a great benefit," commented Mr. Fuller
, Aircraft Acquisition and Operation, Executive Compensation, Private Client, Tax
Steven Hannes was quoted in the January 15 Daily Tax Report on the IRS’s proposed Section 482 transfer pricing regulations. In particular, McDermott among five other organizations voiced their complaints to the IRS that the proposed rules place too much emphasis on residual profit method. The final rules, Mr. Hannes said, “should take a more appropriate approach, consistent with [Organization for Economic Cooperation and Development] principles, with respect to the very limited circumstances in which the [residual profit split] is likely to be the most reliable method.
Steven P. Hannes, Tax, Transfer Pricing
Steven Hannes was quoted in Tax Notes on January 12 on the proposed simplified cost-based method (SCBM), which if incorporated into final transfer pricing services regulations will replace the current cost safe harbor. Mr. Hannes commented that the SCBM should be substantially revised to “unqualifiedly allow cost-only, without any benchmarking, for as wide a group of services, including for example administrative and logistics coordination services, as is possible.” He continued by suggesting that the revised regulations preclude some R&D services from being entitled to cost-only compensation and that the IRS promulgate safe harbor ranges of results for categories of services where cost-only is inappropriate. Mr. Hannes’ comments were also included in Tax Notes Today on January 7.
Steven P. Hannes, Tax, Transfer Pricing
2003
David Fuller and Andrew Liazos were quoted on the IRS executive compensation compliance initiative in the Los Angeles Times on December 30. Mr. Fuller noted that “the audits are active [and that] the IRS is asking corporate tax directors to give them the personal returns of their executives, officers and directors.” Mr. Liazos advised that companies take the time now to evaluate their level of audit readiness. Mr. Liazos, who was also quoted on this topic in the January issue of CFO Magazine, further noted that now is "the time to inventory exactly what you have and identify what your exposure is."
Andrew C. Liazos, Executive Compensation, Tax
On December 18, 2003, Tax Notes Today reported that Steven Hannes criticized the proposed transfer pricing regulations and provided the IRS a detailed list of suggestions and comments for possible improvements.
Steven P. Hannes, Tax, Transfer Pricing
David Fuller was quoted in an Associated Press wire story on this subject commenting that although he first became aware of this audit effort in April he has seen it expand from its initial focus on fringe benefits and deferred compensation arrangements to several other types of compensation arrangements, “This beast is growing.” He continued by saying that an internal corporate compliance audit can protect companies from some aspects of an IRS audit but that will not protect executives whose personal returns are also being examined as part of this audit initiative. The wire story was printed in a number of newspapers around the country, including the Chicago Tribune, the Miami Herald and the San Francisco Chronicle.
Corporate Responsibility and Governance, Executive Compensation, Tax
David Fuller was quoted in Business Week on December 12 in an article reporting on the IRS's audit initiative on compensation paid to corporate officers, executives and board members. The IRS recently said it intends to make executive pay part of every future corporate audit. “They are clearly sending a signal that they are no longer a kinder, gentler IRS. I don't see this blowing over,” Mr. Fuller commented.
Corporate Responsibility and Governance, Executive Compensation, Tax
David Fuller was profiled in the November 28 issue of the Washington Business Journal. The two page spread, “Journal Profile: Paving the Way,” focused on Mr. Fuller’s efforts to start a project to help parents understand tax advantages and reduce the costs associated with adoptions. The article discussed how David's interest in this project was a result of going through the adoption process himself.
, Executive Compensation, Pro Bono & Community Service, Tax
Peter Faber was quoted in Forbes magazine on July 7 in an article comparing the advantages and disadvantages of C corporations, S corporations and LLCs in the light of new tax laws. Mr. Faber commented that when starting a new business the entity of choice is typically an LLC due to increased flexibility and tax advantages, including creating the ability to have different classes of ownership interests with different profit draws.
Nancy Gerrie and Tom Jones were quoted in CFO Magazine on May 6 regarding the escalating costs of benefits and the use of captives to reinsure benefits. The big lure of using a captive to underwrite employee benefit risk is a decrease in taxes. Mr. Jones explained that for a company to qualify for a federal tax deduction on the premiums it pays to its captives, however, the captives must do as much as 50% of their business in risks unrelated to the parent company. Ms. Gerrie commented on the Department of Labor's (DOL) decision to fast-track procedures allowing employers to reinsure benefits through captives. "Usually it takes more than a year for the DOL to rule on an individual exemption," Ms. Gerrie commented, but that timeframe should be substantially reduced under the fast-track procedures.
Nancy S. Gerrie, Thomas M. Jones PC, Captive Insurance and Reinsurance, Employee Benefits, Tax
Comments by David R. Fuller were included in the article, "Fare Media Could Include Debit Cards" in the May 2003 edition of Employer's Guide to Fringe Benefit Rules. Mr. Fuller and Ms. Cook predict that debit card programs for transit use will change many employers' Qualified Transportation Fringe Benefit programs.
Thomas Jones was quoted in the March 24 issue of Business Insurance regarding the decrease of IRS scrutiny on captive deals. Mr. Jones commented that the IRS is now more likely to examine captives individually and they are more willing to issue a private-letter ruling on whether a captive is engaged in insurance. "….the IRS has changed its posture, and it is possible to go in for a private-letter ruling on the insurance transaction for an entity such as a captive. It is remains to be seen how often this will be used because it is relatively new."
Thomas M. Jones PC, Captive Insurance and Reinsurance, Insurance, Tax
Thomas Jones was quoted in the March 10 issue of Business Insurance regarding the increased activity of captives. "….the record pace of captive activity in 2002 will continue at least through the end of 2003," predicted Mr. Jones.
Thomas M. Jones PC, Captive Insurance and Reinsurance, Insurance, Tax
Peter Nias was quoted in the Financial Times on February 17 in regard to a recent ruling of the European Court of Justice (ECJ) which found discriminatory and unlawful the thin capitalization rules in the German tax code that could at best give UK businesses a timely cash boost or worse increase bureaucracy and taxes. Mr. Nias commented that the ECJ decision could potentially have a similar impact in the UK (and in all EU countries) and if the UK thin capitalization rules are held to be discriminatory and unlawful it could result in UK subsidiaries of multinational companies financed by an EU affiliate looking to the Inland Revenue for redress if part of their interest expense was disallowed or an amount of loss carried forward was reduced.
Peter M.W. Nias, International Tax, London, Tax, Tax - London
David Fuller and Jerry E. Holmes were mentioned in the article "Controversy Persists Over 1-Percent Threshold" in the February 2003 edition of Employer's Guide to Fringe Benefit Rules. They speculate that the implementation of national debit card programs may require employers to "convert their cash reimbursement programs to these debit card transit passes" nationwide.
David Fuller and Jerry Holmes were mentioned in the closing article "Active Year Foreseen in Employee Benefits" in the January 2003 current developments, Complying with IRS Employee Benefits Rules. The article was based on a recent audio conference conducted by David, Janine and Jerry on fringe benefit hot topics.
2002
Peter Faber was quoted in the December 4 issue of The Wall Street Journal in an article addressing the SEC's proposed rules that could ban accounting firms from selling tax strategies to their auditing clients. These proposed rules are part of amendments to auditor-independence standards to reduce conflicts. Mr. Faber commented that the rules, if finalized, could prohibit accounting firms from doing tax planning for audit clients.
Peter L. Faber, Corporate Responsibility and Governance, Tax
Michael Fayhee was quoted in the November 24 issue of The Chicago Tribune in regard to the increase of tax attorneys who are leaving accounting firms to join law firms. "Three years ago, we were hearing lots of stories of well-known tax lawyers relocating from law firms to accounting firms for very large compensation packages. We are not hearing those stories today," commented Mr. Fayhee. He also commented that McDermott Will & Emery has hired four tax attorneys from accounting firms over the past 18 months.
Frederick Chilton was ranked fourth among U.S. West Coast tax lawyers in the October issue of the International Tax Review.
Arthur Rosen was mentioned in the August 9 issue of Kiplinger Business Forecasts regarding the proposed Streamlined Sales Tax Project, which goal is to bring to order over 7500 state and local sales taxes. Mr. Rosen commented that the project could justify applying other taxes to businesses headquartered outside their respective state borders.
Arthur R. Rosen, State & Local Tax, Tax
Art Rosen was quoted in the July 18 issue of The New York Times regarding a bill, which recently passed that would let companies avoid state and local taxes. Those companies supporting the bill, currently represented by a McDermott Will & Emery team led by Mr. Rosen, say that with this bill the obligation to pay state and local taxes will merely be shifted to benefit those places where companies use state and local services. Mr. Rosen commented that, "There need be not one penny less of state tax revenue collected."
Arthur R. Rosen, State & Local Tax, Tax
Art Rosen was quoted in, "Setback in State Sales-Tax Plan Hurts Push for Levies on Web Sales," published in the July 15 issue of The Wall Street Journal. The effort to simplify state sales tax, which was to be a precursor to convincing Congress to allow states to tax internet transactions, hit a setback when retailers and state officials could not come to agreement on a uniform tax code. Mr. Rosen commented that whatever they do come up with needs to be a "harmonization among the states." Currently, Mr. Rosen said, the states are considering a "subjective, mushy standard" that won't win the backing of the business community.
Arthur R. Rosen, e-Business, State & Local Tax, Tax
Dan Zucker was quoted in the July 2002 issue of CFO Magazine regarding contingent convertible bonds. Mr. Zucker expressed his surprise that the IRS gave these hybrid securities its unconditional blessing. Formerly, the tax code only allowed companies to deduct the state interest rate of a convertible bond.
Tom Jones was extensively quoted in the July issue of CFO Magazine regarding issues surrounding how foreign income is taxed. Time and time again finance executives are having to defend international tax strategies aimed at maximizing value against patriotism. Mr. Jones, noting the current "disparity between what is right for the country and what is right for your company," commented that Congress, "should strive to achieve a tax system that aligns patriotism with good business sense."
Thomas M. Jones PC, International Tax, Tax
David R. Fuller was quoted in the June 26 issue of Tax Notes Today regarding the Treasury Department's decision to indefinitely impose a moratorium on the employment taxation of stock options. Mr. Fuller observed that the Treasury and the IRS have taken a practical approach to this decades-old dispute and that he supported the postponement commenting that, "Employers and their stock administration departments are breathing a collective sign of relief."
Charles Levin was quoted in the June 24 issue of Crain's Chicago Business in regard to the increased sense of awareness that bankers have gained in terms of accounting issues and off-balance-sheet activities. "...Some off-balance-sheet stuff is going on... There is little motivation among private companies to show income that isn't there, but one (reason) is to make bankers happy," commented Mr. Levin. He also commented that banks should make sure their corporate customers in heavily regulated industries such as energy and defense are following government compliance procedures.
Charles E. Levin, Accounting Methods, Tax
Art Rosen was quoted in the ABA Journal eReport on June 21 in regard to New Jersey's recent tax levy that demanded tax payments from more than 11,000 lawyers on any income from working in New Jersey pro hac vice during the past six years. Mr. Rosen said the levy raises quite a few questions, including the difference between making a physical appearance or simply signing paperwork filed in the state, among others.
Arthur R. Rosen, State & Local Tax, Tax
David R. Fuller appeared at the Treasury regulation hearing on the payroll tax treatment of statutory stock options. The May 14 issue of Tax Notes Today, published an article in advance of that hearing in which Mr. Fuller was quoted extensively. "The IRS guidance has a broad and chilling effect on statutory stock options," observed Mr. Fuller, who has written on the subject, and was involved in the related Sun Microsystems litigation while at the IRS. Mr. Fuller has strenuously defended employer and employee rights to rely on the IRS' longstanding favorable treatment of the plans. Mr. Fuller also commented that there is a "significant administrative burden of tracking, withholding, depositing, and reporting on the exercises" and that the guidance "clearly does not go far enough to alleviating that burden."
Peter Nias was quoted in the May 6 issue of the New York Law Journal and the May 10 issue of Corporate Counsel in regard to Europe’s lack of a unified tax system. According to Mr. Nias, a piecemeal approach will eventually succeed, "There’s momentum building. One day, multinational corporations will wake up and say: ‘So, really we’re now all harmonized.’ One day we’ll just realize it’s happened."
Peter M.W. Nias, International Tax, London, Tax, Tax - London
The international expansion of McDermott’s tax practice was covered in an article published in the April issue of International Tax Review. The arrival of Jonathan Invinson in the London office, and the new Silicon Valley tax group including Fred Chilton, John Ryan, Paul Dau and James Garahan were all mentioned.
David Fuller was mentioned in the March 27 and March 28 issues of the Daily Tax Report, regarding their official comment letter to the proposed Treasury guidance on the payroll tax treatment of statutory stock options, including their concerns that the imposition of such taxes would cause significant economic and administrative burdens for employers and employees. Mr. Fuller and recommended that the Treasury Department continue to exempt employee exercises of statutory stock options or disqualifying dispositions of the acquired stock from payroll taxes until such time as Congress enacts legislation authorizing this tax treatment.
Tom Jones was quoted in the March 2002 issue of Risk & Insurance regarding the use of captives to fund long-term disability. Mr. Jones commented that these captives are not common because it can take a company months, possibly years to research and analyze the costs and benefits of such a captive, even before filing it with the U.S. Department of Labor.
Thomas M. Jones PC, Insurance, Insurance Companies and Products Tax, Tax
Jean Pawlow was quoted in the March 1 issue of CFO Magazine in an article about how the IRS had taken a predatory stance against tax shelters, but several court decisions have altered the rules of the chase. "It's halftime, and too soon to tell if the advantage has shifted to the taxpayer," Ms. Pawlow said.
Jean A. Pawlow, Insurance Companies and Products Tax, Tax
Arthur Rosen was interviewed by emarketer.com regarding HR 2526, a proposed bill that states a business must have substantial physical presence in a state, or nexus, in order for the state to impose business activity taxes.
Arthur R. Rosen, State & Local Tax, Tax, Tax - e-Business
Tom Borders was quoted in the February 1 issue of International Tax Review on some of McDermott’s recent victories against the IRS regarding corporate tax shelters.
Thomas C. Borders PC, International Tax, Tax, Tax Controversy
Arthur Rosen was mentioned in The Internet Magazine on January 16 in regard to participating in the FMN Online discussion regarding the new development and implications of the Internet Tax Freedom Act extension.
Arthur R. Rosen, Tax, Tax - e-Business
2001
Tom Jones was quoted in the November 29 issue of Insurance Day regarding the captive insurance environment in Bermuda.
Thomas M. Jones PC, Insurance, Insurance Companies and Products Tax, Tax
David R. Fuller was quoted in the November 14 issue of The Wall Street Journal. Mr. Fuller commented on the IRS' proposed regulations that would impose Social Security and Medicare taxes and unemployment taxes on the exercise of certain statutory stock options. The proposed regulations impose additional tax and administrative burdens on both employers and employees. "The IRS issues a turkey--just in time for Thanksgiving," states Mr. Fuller.
David R. Fuller was quoted in the November 14 issue of The San Jose Mercury News regarding the IRS' proposed new rules to subject certain stock option plans to payroll taxes. The IRS' proposed rules require companies to withhold payroll taxes when workers buy stock through employee stock-purchase and incentive stock-option plans. But Mr. Fuller commented about the effect of these proposed rules, citing the example of one client with more than 75,000 workers that has shelved its plans to implement an ESPP while the tax issues are debated on Capitol Hill.
Tom Jones was quoted in an article published in the November 12 issue of Business Insurance regarding Bermuda’s insurance market, and the probability that the IAC is going to continue as the market develops.
Thomas M. Jones PC, Insurance, Insurance Companies and Products Tax, Tax
Peter Faber commented on the inherent fun of tax issues in the November 7 issue of The Wall Street Journal.
McDermott Will & Emery was ranked #1 by legal recruiters as having the most prestigious Health Law Practice and Employee Benefits and ERISA Practice (in a three-way tie). The Firm's Tax Practice was ranked #2 (in a three-way tie). The survey was part of the annual associates survey published in the October issue of American Lawyer.
Employee Benefits, Employee Benefits Litigation, Health, Tax
Lowell Yoder is the editor-in-chief of the new CCH Journal of Taxation of Global Transactions. The premiere issue, Fall 2001, includes an article co-authored by Mr. Yoder, which analyzes the export incentive that will replace foreign sales corporations. James Riedy, who will be a regular columnist for the Journal, addressed the concerns of international section 338 elections in his opening piece.
Lowell D. Yoder, International Tax, Tax
Lowell Yoder was quoted in the July-August 2001 issue of International Tax Review regarding lawyers’ relations with accountants. Mr. Yoder commented that lawyers are not in direct competition with accounting firms, but rather accountants handle the implementation while lawyers serve as trusted advisors.
Lowell D. Yoder, International Tax, Tax
Tom Jones was quoted in the June 25 issue of Business Insurance in response to a recent appeals court victory for United Parcel Service of America, Inc. Mr. Jones said the decision, which ruled a UPS package reinsurance program had legitimate business purpose and that reducing UPS’s taxes was an acceptable aim of the plan, lifted a cloud of doubt for tax lawyers and captive owners regarding tax planning and structuring.
Thomas M. Jones PC, Insurance, Tax
Peter Faber was quoted in the June 22 issue of The New York Times in regard to two recent court decisions that rejected the IRS's efforts to limit tax shelters. Mr. Faber said that the decisions indicate that transactions with legitimate business purposes will be upheld even if they are motivated in part by tax considerations.
Thomas Borders was quoted on the front page of the June 20 Wall Street Journal. Included in the Tax Report Column, Mr. Borders commented on the IRS loss in its long running battle on corporate tax shelters. The IRS was defeated by firm client, Alliant Energy, in IES Industries Inc. and Subsidiaries v. United States of America.
Thomas C. Borders PC, Tax, Tax Controversy
Tom Jones was quoted in the June 11 issue of Business Insurance in regard to the IRS’s decision to drop its long-standing position that premiums paid to captives are not deductible under the "economic family."
Thomas M. Jones PC, Insurance, Insurance Companies and Products Tax, Tax
Peter Faber was quoted on the front page of the Wednesday, June 6 edition of the Wall Street Journal. He commented on a recent Tax Court case victory for the IRS that called for the capitalization of business expenses. Mr. Faber called the decision "wrong" noting that the appeals courts have been "more sympathetic to taxpayers on this issue than the Tax Court."
Peter L. Faber, Tax, Tax Controversy
Andrea Kramer’s comments from an IRS Public Hearing on Proposed Regulations was published in Tax Notes Today on May 23. Ms. Kramer said that the proposed hedging regulations, which were the focus of the hearing, fail to follow the direction of Congress to broaden the standard for qualifying hedging transactions, and recommended to the IRS & Treasury Panel to replace the concept of risk reduction with the standard of risk management. She also proposed a "rule of application" to address risk management transactions entered into by dealers in commodities.
Andrea S. Kramer, Financial Products, Trading & Derivatives, Tax
Peter Nias was mentioned in the May 17 issue of Taxation in an article written by colleague Malcolm Gunnftii, regarding forward contracts with the revenue for lump sum tax payments in respect of future remittances. Mr. Gunnftii credited Peter as "one of the early architects of the agreements."
Peter Faber was interviewed on CNNfn on April 6. Mr. Faber spoke about current tax and legal issues including possible individual tax cuts.
Peter Faber was quoted in the April 2 issue of Business Week in regard to New York state's practice of taxing non-residents on all of their income, including income earned outside the state. Mr. Faber argued that the practice is unfair citing a case he is working on where he has petitioned the state commissioner of taxation and finance to reconsider the issue.
Peter L. Faber, State & Local Tax, Tax
Daniel Zucker was quoted in the April 2001 issue of Inc. Magazine in response to the failure of the Tax Relief Extension Act of 1999.
Tom Jones was quoted in the April 2001 issue of CFO Magazine. Mr. Jones warned readers of the "uncharted waters" of rent-a-captive taxation, citing the lack of case law and IRS pronouncements on the subject.
Thomas M. Jones PC, Insurance, Insurance Companies and Products Tax, Tax
David R. Fuller, in an extensive interview with the editor of Corporate Counsel Weekly, discussed the many ramifications of the IRS plans to subject statutory options to employment taxes. The question and answer format in the March 21 issue discussed various issues, including the history of the IRS position, the types of stock options impacted, the legal and practical effect of the proposed IRS position, and changes corporations should consider in their stock administration programs.
Stephen Wells was quoted in the March 2 issue of The Wall Street Journal in regard to the controversy surrounding AT&T board member and Liberty Chairman John Malone. With the forthcoming AT&T-Liberty spin-off transaction it is possible that Mr. Malone could find it necessary to step down from his position as an AT&T Board Member in order for AT&T to secure an IRS ruling for the spinoff.
Andrea Kramer was quoted in the lead paragraph of the March 2001 issue of Inc. Magazine in an article entitled, "Follow the Big Guys: The Sagging Euro Got You Down? Or Are You Profiting From It? It May be Time to Try Your Hand at Currency Hedging."
Andrea S. Kramer, Financial Products, Trading & Derivatives, Tax
Jean Pawlow was quoted in the January 1 issue of CFO Magazine in an article about how the IRS investigators zero in on at least 50 highly leveraged, corporate-owned life insurance tax shelters. "The Camelot case will cause taxpayers to stop and think what their likelihood of success is [if the IRS comes calling], and whether they can distinguish this case from their own," Ms. Pawlow said.
Jean A. Pawlow, Insurance Companies and Products Tax, Tax
2000
Jean Pawlow was quoted in the October 23 issue of CFO Magazine in an article about IRS investigators zeroing in on highly leveraged, corporate-owned life insurance deals. "I think it's fair to say that this case will cause taxpayers to stop and think what their likelihood of success is [if the IRS comes calling], and whether they can distinguish this case from their own, " Ms. Pawlow said.
