Latest Thinking

The Prepaid Royalty Aspect of Notice 2012-39

Weil Tax, Benefits & Executive Compensation partner Kim Blanchard authored the article “The Prepaid Royalty Aspect of Notice 2012-39,” published by BNA Tax Management International Journal. The article focuses on a largely overlooked aspect of the Notice: its conclusion that the cash transferred in a transaction governed by §367 should be subject to §367(d) and treated as a prepaid royalty. The author explains why §367(d) had no immediate application to the facts set forth in the Notice, and how the IRS could have challenged the taxpayer's position in a much simpler manner that is consistent with the statutory scheme.

Please click here to read the full article (may require registration/subscription).