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December 20, 2023

UK issues a joint statement to combat tax evasion through the use of crypto-assets.

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In YA Global Investments, LP v. Commissioner, the Tax Court narrowly construes the scope of the securities trading safe harbor to find that a foreign investment fund engaged in a trade or business.

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The IRS has once again ruled that an “exchange trust” commonly used in the securitization of mortgage loans is a fixed investment trust, and that the certificates issued from the trust (including inverse floater pairs) qualify as stripped bonds or stripped coupons.

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In Estate of McKelvey v. Commissioner, the Tax Court treats extending the settlement dates of a set of variable prepaid forward contracts (“VPFCs”) as exchanges that terminated the underlying obligations under the first set of VPFCs, resulting in short-term capital gain.

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Earlier this month, the Supreme Court heard oral arguments on Moore v. United States, which is likely the next landmark tax case on the meaning of income under the Sixteenth Amendment. 

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