Brass Tax

Cadwalader Speaks With Law360 About New IRS Spinoff Guidance

Tax Group chair Linda Swartz spoke with Law360 about recent IRS guidance limiting the types of corporate spinoffs that would qualify for tax-free status.

Among other insights, Linda noted that the guidance and the agency’s accompanying notice represent a “sea change,” with the notice’s “aggressive limiting tone” applying to a breadth of issues.

“In my experience, it is not typical to have a tax avoidance purpose for many of the actions the IRS is worried about," she said. Linda also expressed concern that complying with the standards that the government may promulgate in future proposed regulations "will make spinoffs very difficult to accomplish with an IRS ruling, even when they're permitted under the statute and case law."

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Everything You Need to Know About Energy Tax Credit Sales

Now that most of the key guidance has been finalized, here’s the CliffsNotes with everything you need to know about energy tax credit sales.

What then are the key considerations for company directors following a wave of tax cases regarding the anti-avoidance provisions in the UK loan relationships regime?

On May 23, 2024, the Joint Chiefs of Global Tax Enforcement (the “J5”) published an advisory note for financial institutions, identifying red flags associated with crypto-related illicit activities.

The UK’s First-tier Tribunal recently held that an Option Agreement that granted a revocable option was not the granting of an “option” for UK capital gains tax purposes.

In issuing Notice 2024-44, the IRS has once again extended the phase-in of Section 871(m) withholding guidance for certain transactions, leading to uncertainty for market participants.

In response to YA Global Investments, LP v. Commissioner (discussed here), the New York State Bar Association Tax Section has urged the government to provide clear guidance for partnerships filing protective returns to start the statute of limitations on Section 1446 withholding tax.

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