Tax Notes

Having advised on crypto comp plans since the dawn of (crypto) time—2017 to be exact—my experience of working through these knotty issues inspired me to write this article for Tax Notes. Carol Wang and I started drafting this article a couple of years back until we finally kept to a deadline! In this piece, among other topics, we tackle one of the thorniest issues startup crypto projects face: the tax treatment of contracts for future tokens. If you’re tired of losing sleep over cryptic tax rules, check out the link below. #crypto #cryptocomp #tokencomp

Two officials tasked with overseeing the IRS’s massive infusion of funding from the Inflation Reduction Act have departed the agency. IRS Chief Transformation and Strategy Officer David Padrino and Chief IRA Implementation Officer Jonathan Warsh resigned from their posts as of March 7, according to a person familiar with the moves. Padrino and Warsh both joined the IRS in 2023 shortly after the confirmation of then-Commissioner Daniel Werfel, who President Biden picked to lead the agency’s transformation efforts using nearly $80 billion in special funding from the IRA — an amount that has since been clawed back by $20.2 billion, with another $20.2 billion currently frozen under the government funding bill. The departures call into question the future of the IRS’s strategic operating plan, which Padrino’s office was tasked with overseeing. Read the full story ?? (Photo by Pgiam from Getty Images Signature)

Financial markets and industries across the United States have been rattled by the current administration's back-and-forth on #tariffs. In my article that was published in Tax Notes a few weeks back, I examine the history of tariffs and how multinational companies can utilize transfer pricing to mitigate tariff impacts. Please contact my Pierce Atwood LLP #tax colleagues and me on how transfer pricing and effective tax planning can help mitigate tariff impacts.

In the third of a three-part series, Damien Martin and Tony Nitti of EY discuss their top tax cases from 2024, focusing on two C corp cases: Ju et al v. United States and Stead v. Commissioner. And in case you missed parts one and two... ?? ?? Part 1, Partnerships: https://lnkd.in/eB3zGhjq ?? Part 2, S Corporations: https://lnkd.in/esSXThwM

What do you do when you become concerned that a client might be contemplating going beyond lawful tax planning, might have already done so, or might have triggered IRS criminal scrutiny? In my most recent?Tax Notes?article (link in the comments), former head of IRS-CI Jim Lee and I discuss four recent tax cases that turned criminal and the potential lessons tax practitioners can learn. For those who cannot access it, I will make the full article available soon.

In this week's issue of Tax Notes State, Eric J. Coffill and Megan Long explore California Gov. Gavin Newsom's proposal to use single-sales-factor apportionment for taxing banks, an approach they conclude would favor in-state financial institutions. Read on for more: <https://lnkd.in/ebpFGXx2> Further insights from and thanks to: Bob Rojas and Mike Pusey, for discussing how taxpayers affected by the recent LA wildfires should plan for tax and relief aspects of the disaster; Rachael High Chamberlain, for reviewing the controversy surrounding Kentucky's gold bullion sales tax exemption; and Billy Hamilton, for examining efforts to move away from historic reliance on the steel industry in Gary, Indiana.

The United States’ opposition to global minimum tax rules will put the EU economy at a disadvantage, so the EU should temporarily shelve its pillar 2 directive, the Federation of German Industries (BDI) said. In a March 7 position paper, the BDI expressed concern about the United States’ recent withdrawal from the OECD’s global tax deal through President Trump’s January 20 memorandum. The memorandum directed administration officials to investigate whether other countries are complying with tax treaties they have with the United States and whether other countries enforce extraterritorial taxes that discriminate against U.S. companies. The paper also pointed to a separate memorandum from January 20 that refers to IRC section 891. Section 891 would double tax rates for citizens and corporations of foreign countries that have discriminatory or extraterritorial taxes. Another concerning development is the reintroduction of proposed legislation from Republican lawmakers that would hit back at the pillar 2 undertaxed profits rule and digital services taxes, according to the paper. Read the full story from Stephanie Soong. ?? (Photo by princigalli from Getty Images)

The MEPs have a lot of ideas to present to the Commission to feed into its draft proposal for the next EU budget, which is planned for this summer. https://lnkd.in/eweqvkS4

Don’t miss the next installment of Taxing Issues, "Navigating Reconciliation: The Future of Tax Policy," on March 19 from 2 to 3 p.m. ET. With Tax Analysts President and CEO?Cara Griffith moderating, our panelists –?Erica York, Christopher Towner, and Patrick Driessen – will examine the reconciliation process and what it will mean for tax policy. Register today to save your spot: https://lnkd.in/eQsRH-5k #TaxReform2025 #TaxCutsAndJobsAct #TaxLegislation #TCJA

The outgoing head of HM Revenue & Customs confirmed to a U.K. parliamentary committee that it has 251 #wealthy taxpayers under criminal investigation. My 2nd of 2 reports for Tax Notes on the recent Public Accounts Committee hearing. #HMRC #UK #tax #HNWI