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Inflation Reduction Act
Proposed Treasury Regulations Bring the Public Notice Requirements into the 21st Century
Recently released proposed regulations (the “Proposed Regulations”) relating to the public notice and approval requirements for private activity bonds (the “Public Approval Requirement”) – sometimes referred to as the TEFRA approval – streamline the process and recognize the prevalence of...
Hurricane Harvey Relief for Employees
Following Hurricane Harvey and its resulting destruction, many employees are in need of financial assistance and/or early access to retirement funds. We will highlight how employers can make direct financial assistance payments to their affected employees on either a taxable...
FY 2018 Sequestration Reduction Percentage for Direct Pay Tax Credit Bonds Set at 6.6 Percent
According to an update released by The IRS Office of Tax Exempt Bonds, the sequester reduction percentage applied to the payments made to issuers of direct pay bonds in fiscal year 2018 will be 6.6 percent . This percentage will...
Can Foreign Partners Now Exit Partnerships Tax Free?
In Grecian Magnesite Mining v. Commissioner 1 (“ Grecian Magnesite ”) the Tax Court held that a non-U.S. partner's gain from the redemption of its partnership interest was neither U.S. source income nor income effectively connected with a U.S. trade...
The Final Countdown: New Issue Price Regulations Effective June 7th
The June 7 th effective date for the final Treasury Regulations relating to the establishment of “issue price” of tax-exempt obligations (the “New Regulations”) is drawing near. In fact, for obligations that are scheduled to price on or soon after...
Final Regulations on MLP Qualifying Income Released and Published Despite Trump Moratorium
On January 19, 2017, the Department of the Treasury and the Internal Revenue Service (IRS) issued final regulations ( Final Regulations ) regarding qualifying income under Internal Revenue Code (Code) section 7704(d)(1)(E). The Final Regulations were published on January 24...
New Partnership Tax Guidance on Disguised Sales and Liability Allocations
On October 5, 2016, the Treasury Department and Internal Revenue Service (“IRS”) published much-anticipated final (available here ), temporary (available here ) and new proposed (available here ) regulations providing guidance under Internal Revenue Code sections 707 and 752 on...
Sales Tax Exemption for Manufacturing Held Inapplicable for Oil and Gas Equipment, but Questions Remain
Southwest Royalties, Inc. v. Hegar , No. 14-0743 (Tex. June 17, 2016)(“ Southwest ”), addresses the applicability of a sales tax exemption for property sold for use in manufacturing in the context of oil and gas production. Although the taxpayer...
D.C. Circuit Overrules FERC on Partnership Pipeline’s Tax Recovery
In a July 1 decision with major rate implications for FERC-regulated oil and gas pipelines, the United States Court of Appeals for the District of Columbia Circuit (“D.C. Circuit” or the “Court”) sided with shippers in an appeal of a...
IRS Updates Guidance on the Beginning of Construction Rule for Renewable Energy Production Tax Credits
On May 5, 2016, the Internal Revenue Service ("IRS") released Notice 2016-31 (the "Notice"). The Notice updates previous IRS guidance on satisfying the "beginning of construction" requirement for renewable energy facilities to qualify for the renewable energy production tax credits...
IRS Issues Final Regulations Regarding Allocation of Bond Proceeds to Mixed-Use Projects; SLGS Window Reopens
On October 26, 2015, the IRS released final regulations (the “Final Regulations”) regarding allocation and accounting rules for purposes of the private activity bond restrictions applicable to tax-exempt bonds issued by state and local governments and, for certain purposes, other...
New Audit Rules May Impose Tax Liability on Partnerships
On November 2, 2015, President Obama signed into law the Bipartisan Budget Agreement of 2015 (the “Act”), which includes major changes to the partnership tax audit rules (the “New Audit Rules”). The Act repeals the current partnership audit rules as...
FY 2016 Sequestration Reduction Percentage for Direct Pay Tax Credit Bonds Set at 6.8 Percent
According to an update released by The IRS Office of Tax Exempt Bonds (TEB), the sequester reduction percentage applied to the payments made to issuers of direct pay bonds in FY 2016 will be 6.8 percent. This percentage will apply...
Proposed IRS Regulations Target Management Fee Waiver Arrangements
On July 22, 2015, the Treasury Department and the Internal Revenue Service (“IRS”) released proposed regulations (the “Proposed Regulations”) regarding disguised payments for services under Section 707(a)(2)(A) of the Internal Revenue Code of 1986, as amended (the “Code”). The Proposed...
IRS Releases New Proposed Issue Price Regulations
On June 23, 2015, the IRS released new proposed Treasury Regulations (the “2015 Proposed Regulations”) concerning the definition of “issue price” for purposes of arbitrage investment restrictions on tax-exempt bonds. The 2015 Proposed Regulations withdraw the portion of proposed Treasury...