IRS Issues New Cryptocurrency Guidance

Posted in Blockchain, cryptocurrency, IRS

On Oct. 9, 2019, the Internal Revenue Service (IRS) released revenue ruling (Rev. Rul. 2019-24) and a Frequently Asked Questions (FAQs) document, which provide additional guidance on the tax treatment and reporting obligations for transactions involving virtual currency (also known as cryptocurrency). This guidance supplements the original guidance that was issued in 2014 in the form of a notice (Notice 2014-21), which provides a baseline rule that cryptocurrency is property for federal income tax purposes.

Rev. Rul. 2019-24 addresses questions related to the tax treatment of hard forks. The revenue ruling describes a hard fork as a protocol change that results in a permanent split of a new distributive ledger from a legacy or existing distributed ledger, resulting in the creation of a new cryptocurrency on the new distributed ledger in addition to the legacy cryptocurrency on the legacy distributed ledger.  Continue Reading

Greenberg Traurig Sponsors 2019 Samsung Gives Charity Gala

Posted in Event, Firm News, Uncategorized

Greenberg Traurig recently sponsored the 2019 Samsung Gives Charity Gala in New York City. With hundreds of guests in attendance, including musicians, athletes, and celebrities, this program is dedicated to celebrating worthy causes, furthering community impact, and honoring organizations and the people who work so hard every single day to make the world a better place.

Greenberg Traurig’s Senator Tim Hutchinson, Martha Schoonover, Mike Mason, Kristen Ng, John Scalia, Barbara Kaplan and Laura Reiff

 

 

 

 

 

 

 

 

 

 

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IRS Offers Settlements to Some Micro-Captive Insurance Taxpayers

Posted in GT Alert, Insurance, Internal Revenue Code, IRS, tax audits

On Sept. 16, 2019, the IRS announced it is offering settlements to certain taxpayers with open audits of micro-captive insurance transactions. The IRS has targeted these micro-captive insurance transactions since 2014, and they were designated as transactions of interest in 2016.1 Although micro-captive insurance transactions have gained popularity among closely held entities, the IRS has challenged such transactions as abusive, stating that they “are inconsistent with arm’s length transactions and sound business practices.”2

Following several IRS victories in the U.S. Tax Court, the IRS decided to offer settlements to taxpayers currently under examination and mailed settlement letters to up to 200 such taxpayers. This action was not unexpected given the IRS’s three recent victories, described below, and the rash of docketed cases in the Tax Court on this issue. A settlement initiative such as this one represents an effort to deal with the volume of cases. The initiative will resolve more cases without litigation and will produce finality for those accepting the fixed settlement terms.

Click here to read the full GT Alert, “IRS Offers Settlements to Some Micro-Captive Insurance Taxpayers,” by Barbara T. Kaplan and Josh Prywes.

Applicable Federal Rates and Code Section 7520 Rate for October 2019 – Downward Trend Accelerates

Posted in Applicable Federal Rates (AFRs), Internal Revenue Code, IRS

The Internal Revenue Service (IRS) publishes monthly the applicable federal rates (AFRs) under Internal Revenue Code (Code) Section 1274(d) and the Code Section 7520 rate (7520 rate) for the month following the month in which the Revenue Ruling is published in a Revenue Ruling that is released around the 18th day of the immediately preceding month. Advance knowledge of the AFRs and 7520 rate for the following month provides a window of opportunity for the immediate or delayed implementation of income, gift, and estate-tax planning techniques in response to upward or downward trends. Effective implementation and management of interest-sensitive estate planning techniques involves numerous other factors in addition to the relevant AFR or the 7520 rate, including a client’s particular personal and financial circumstances, and should be undertaken only with the advice of competent tax counsel and financial advisors.

The IRS has issued Revenue Ruling 2019-23, which provides the AFRs and 7520 rate for October 2019. Revenue Ruling 2019-23 will appear in Internal Revenue Bulletin 2019-41 dated Oct. 7, 2019. The downward trend that began in January 2019 continues, with all AFRs and the 7520 rate at or below 1.86% for October 2019. Continue Reading

Retailers Not Eligible for 100% Leasehold Improvement Write-Off Due to Legislative Glitch

Posted in Government, GT Alert, Internal Revenue Code, Real Estate, real estate tax, State Tax, Tax Cuts and Jobs Act

The 2017 Tax Cuts and Jobs Act provided a 100% first year write-off for many types of capital expenditures. Congressional tax writers intended this benefit to be available for leasehold improvements, which would be a boon to retail and restaurant businesses and their landlords. Unfortunately, in the rush to get the tax bill pushed through, there was a legislative drafting error that caused leasehold improvements to be left out of the definition of expenditures eligible for this tax benefit. Worse yet, leasehold improvements were given a longer write-off period (39 years) than under the prior law (15 years).

Click here for the full GT Alert, “Retailers Not Eligible for 100% Leasehold Improvement Write-Off Due to Legislative Glitch.”

Applicable Federal Rates and Code Section 7520 Rate for September 2019 – Downward Trend Continues

Posted in Applicable Federal Rates (AFRs), Internal Revenue Code, IRS

The Internal Revenue Service (IRS) publishes monthly the applicable federal rates (AFRs) under Internal Revenue Code (Code) Section 1274(d) and the Code Section 7520 rate (7520 rate) for the month following the month in which the Revenue Ruling is published in a Revenue Ruling that is released around the 18th day of the immediately preceding month. Advance knowledge of the AFRs and 7520 rate for the following month provides a window of opportunity for the immediate or delayed implementation of income, gift, and estate-tax planning techniques in response to upward or downward trends. Effective implementation and management of interest-sensitive estate planning techniques involves numerous other factors in addition to the relevant AFR or the 7520 rate, including a client’s particular personal and financial circumstances, and should be undertaken only with the advice of competent tax counsel and financial advisors. Continue Reading

IRS Aims to Catch Up to Tech Advancements

Posted in Cloud Transactions, Income Tax, Internal Revenue Code, IRS

Recently proposed IRS regulations would significantly affect tax on income from international cloud transactions and electronic transfers of digital content. Accordingly, CFOs should review the structure of agreements involving such transactions and transfers.

Issued on Aug. 9, the proposed regulations represent an attempt by the IRS to catch up with technological advancements, two decades after it issued regulations addressing the U.S. federal income tax treatment of cross-border transfers of computer programs.

Click here to read the full article, “IRS Aims to Catch Up to Tech Advancements,” written by Greenberg Traurig Tax attorneys Erez I. Tucner and Pallav Raghuvanshi, published on CFO.com.

In the Zone: GT Qualified Opportunity Zone News – July and August 2019

Posted in Congress, Government, Income Tax, Internal Revenue Code, IRS, Opportunity Zones, qualified opportunity funds, qualified opportunity zones, Real Estate, real estate tax, Uncategorized

Welcome to In the Zone: GT Qualified Opportunity Zone News. Our monthly digest of the latest federal and state developments in Qualified Opportunity Zones and Qualified Opportunity Funds and related Greenberg Traurig news and events will keep stakeholders apprised of the most pressing issues in this burgeoning space.

President Trump’s Tweets Show Continued Strong Support for Opportunity Zones

President Trump tweets support for opportunity zones, August 18, 2019 Continue Reading

IRS Clarifies U.S. Tax Treatment of Cross-Border Cloud and Other Online Transactions in Proposed Regulations

Posted in Cloud Transactions, GT Alert, Internal Revenue Code, IRS, Tax Planning

On Aug. 9, 2019, the IRS issued proposed regulations (Proposed Regulations) addressing the U.S. federal income tax treatment of cross-border cloud transactions. The Proposed Regulations will not become effective until final rules are adopted.

By way of background, the last time the IRS meaningfully addressed the taxation of cross-border digital content transfers was in October 1998 (1998 Regulations), which applied to software transfers.

Technological developments over the last twenty years – specifically the advent of cloud computing and streaming content – rendered the 1998 Regulations outdated. The IRS stated that the purpose of the Proposed Regulations is to bring IRS regulations current with such technological advancements. Continue Reading

29 GT New York Attorneys Listed in 2020 Edition of Best Lawyers in America, Including Barbara Kaplan as Lawyer of the Year

Posted in awards, Firm News

The New York office of global law firm Greenberg Traurig, LLP has 29 attorneys listed in the 2020 edition of Best Lawyers in America. Additionally, Tax Practice Co-Chair Barbara Kaplan was named “Lawyer of the Year” for Litigation and Controversy in Tax.  To read full press release, click here.

Greenberg Traurig's Barbara Kaplan Lawyer of the Year Litigation and Controversy In Tax - Best Lawyer in America 202

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