Proposed Section 382 Regulations Raise International Tax Issues For Post-Acquisition Restructuring

The new regulations proposed in September under Section 382(h) regarding built-in-gain raise several international tax issues that companies planning for post-acquisition integration of loss corporations should be aware of. For a U.S. corporation that buys a U.S. target corporation with net operating losses (NOLs), and either IP or foreign subsidiaries that the acquirer wants to integrate into its tax structure, the new regulations present certain disadvantages. The proposed regulations’ interpretation of the built-in-gain rules of Section […]

By | October 24th, 2019 ||

Transitions From IBOR To Alternative Rates Avoid Tax Under Proposed Regulations

On October 8, 2019, the Treasury Department and IRS issued proposed regulations confirming that transitions from LIBOR and other interbank offered rates (IBORs) to alternative reference rates in debt instruments and derivatives will not be taxable events.  This guidance was eagerly anticipated because countless instruments will have to be amended to provide for new reference rates before IBORs are phased out as early as the end of 2021.  If these amendments were treated as significant modifications […]

By | October 23rd, 2019 ||

IRS Sets March 31, 2020 Deadline For 403(b) Plan Document Compliance

The United States Internal Revenue Service (the “IRS”) has released Revenue Procedure 2019-39, which sets forth a March 31, 2020 deadline by which tax-qualified 403(b) plans must have plan documents that fully comply with the 403(b) requirements. A 403(b) plan is a tax-qualified defined contribution retirement plan that is similar to a 401(k) plan, but that is sponsored by a public school district or a tax-exempt entity.

The March 31, 2020 deadline represents the end of the “remedial […]

By | October 20th, 2019 ||