Grant Solomon

• Killer Bs Get Stung – IRS Issues Proposed Rules Aimed at Triangular Reorganizations and Inbound Non-recognition Transactions Blog Post — Tax Blog — By Devon Bodoh, Greg Featherman and Grant Solomon — October 16, 2023
  On October 5, 2023, the Treasury Department and the Internal Revenue Service issued long awaited proposed regulations under Section 367(b) of the Internal Revenue Code providing guidance on the use of property to acquire parent stock or securities in connection with certain cross border triangular reorganizations, colloquially referred to as ‘Killer B’ transactions. ...
• IP Phone Home – IRS Issues New Proposed Rules on the Repatriation of Intangible Property Blog Post — Tax Blog — By Devon Bodoh, Greg Featherman, Graham Magill and Grant Solomon — May 04, 2023
  Section 367(d) of the Internal Revenue Code (the “Code”) provides rules for outbound transfers of intangible property (e.g., intellectual property) by a U.S. person (a “U.S. transferor”) to a foreign corporation. Under these rules, when a U.S. transferor transfers intangible property to a foreign corporation in an otherwise tax-free exchange under Sections[1] 351 or 361, the U.S. transferor is treated as having sold the intangible property in exchange for annual royalty payments (an “annual inclusion”) over the useful life of the intangible property (or a lump sum payment in the case of a disposition of the intangible property following the initial outbound transfer). The U.S. transferor treats the annual inclusion and lump sum as ordinary income and royalties for purposes of determining source and the foreign tax credit limitation category. Final regulations under Section 367(d) were published on December 16, 2016 (the “367 Regulations”). ...
• Corporate Tax 2023 — USA: Law & Practice and USA: Trends & Developments Publication — Chambers Global Practice Guides — By Devon Bodoh, Joseph M. Pari, Greg Featherman, Alex P Dobyan and Grant Solomon — PDF — April 14, 2023
• State of the Union: President Biden Calls for Increase to the Excise Tax Blog Post — Tax Blog — By Devon Bodoh and Grant Solomon — February 08, 2023
  The Inflation Reduction Act of 2022 imposes a one percent excise tax (the “Excise Tax”) on the repurchase of corporate stock under Section 4501 of the Internal Revenue Code (“Section 4501” and the “Code”, respectively) by a publicly traded U.S. corporation (a “covered corporation”) beginning after December 31, 2022. Much welcome guidance was released on December 27, 2022 in Notice 2023-2 (the “Notice”), which provides taxpayers with interim guidance until proposed regulations are issued. For purposes of the Excise Tax, the term covered corporation means any domestic corporation whose stock is traded on an established securities market (within the meaning of Section 7704(b)(1)). A covered corporation also includes any corporation that becomes a surrogate foreign corporation under Section 7874(a)(2)(B) after September 20, 2021. A repurchase of corporate stock by a covered corporation, to which the Excise Tax applies, generally includes (i) redemptions within the meaning of Section 317(b) and (ii) transactions determined by the Secretary of the Treasury or her delegate to be economically similar to a 317(b) redemption. The liability for any Excise Tax may be offset by stock issuances in the same taxable year or other exceptions detailed in the Notice. ...
• Notice 2023-2: Proposed Guidance on the Stock Buyback Excise Tax Blog Post — Tax Blog — By Devon Bodoh, Madeline Joerg and Grant Solomon — December 29, 2022

  The Inflation Reduction Act of 2022 imposes a one percent excise tax (the “Excise Tax”) on the repurchase of corporate stock under Section 4501 of the Internal Revenue Code (“Section 4501” and the “Code”, respectively[1]) by a publicly traded U.S. corporation (a “covered corporation”) beginning after December 31, 2022. For purposes of the Excise Tax,

  The post Notice 2023-2: Proposed Guidance on the Stock Buyback Excise Tax appeared first on Weil Tax BLOG.

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