Overview
Several McDermott attorneys spoke at the American Bar Association’s Section of Taxation 2025 May Tax Meeting in Washington, DC, on May 8 – 10, 2025. Session topics included:
So Long, Farewell: U.S. Tax Issues for Expatriates
May 9 | 8:30 – 10:15 AM
Speaker: Sebastian Orozco Segrera
This panel addressed the U.S. tax rules applicable to individuals who renounce U.S. citizenship or relinquish long-term resident status, including the regimes of Sections 877 and 877A, recent developments such as the final regulations under Section 2801, as well as legislative proposals addressing overseas citizens.
Employee Benefits ESOP Subcommittee
May 9 | 12: 15 – 1:15 PM
Speakers: Allison Wilkerson and Myriem Bennani
This session discussed the implications of the Cunningham v. Cornell University case, which was recently decided by the U.S. Supreme Court to resolve a circuit split, and its changes to the pleading standard for ERISA claims of alleged prohibited transactions. In addition, the session discussed recent litigation challenging “segregation of accounts” from company stock to cash on termination of employment and the investment of non-stock assets within the ESOP as well as the DOL’s pursuit of “common interest” agreements with certain plaintiff counsel firms related to ESOP litigation. Finally, the panel discussed some unique ways to handle annual repurchase obligations utilizing an administrative loan (a PTE 80-26 loan) to allow for strategic planning of annual distributions and benefit levels.
