Corporate & Securities

The California Court of Appeal held on July 24, 2012 that California may not eliminate multistate taxpayers’ use of an equal-weighted apportionment formula for calculating income tax liability. Other jurisdictions may agree. However, on August 9, 2012 the California Court of Appeal stated that it...

California-based investment advisers to private funds, whether exempt or registered at either the state or federal level, must file at least portions of Form ADV. All such filings are required to be made electronically through the Investment Advisor Registration Depository (www.iard.com). Investment advisers who plan...

Summary:California has overcharged multistate businesses on income tax bills for years, the California Court of Appeal, Fourth District, held on July 24, 2012. Multistate businesses that have paid California income taxes between tax years 2007 and today should contact Royse Law Firm, PC, to...

In June 2012 the IRS issued REG-134042-07, containing proposed regulations that would clarify the basis of indebtedness of S corporations to their shareholders. The proposed regulations would allow some taxpayers to take greater deductions on the losses of debt-financed S corporations.Background:When a shareholder loans money...

Internal Revenue Code (I.R.C.) Section 7874 regulates corporate and partnership inversions. An “inversion” occurs when an entity elevates a subsidiary in a low-tax jurisdiction (e.g., Bermuda) to a parent position, inverting the previous affiliation and becoming a subsidiary of the foreign-headquartered entity. By relocating one’s...

In 2010, the U.S. government enacted the Foreign Account Tax Compliance Act (FATCA), containing provisions that would require, starting in 2013, foreign financial institutions (FFIs) to provide to the IRS the personal information of any United States persons holding accounts at that FFI. See https://rroyselaw.com/blog1/2012/01/12/third-offshore-voluntary-disclosure-program-announced-by-irs/.The...

Under Section 6045B of the Internal Revenue Code of 1986, as amended (the "Code") many corporations are required to file a new return (Form 8937) with the IRS in connection with non-dividend distributions and other corporate actions affecting stock basis. More specifically, starting in 2011,...

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