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Expert Argues In Favor of U.S. Corporate Tax

While the U.S. maintains the highest corporate tax rate at 35 percent, a paper published earlier this month by University of Southern California law professor Edward Kleinbard, suggests many companies use a system of elaborate tax loopholes to avoid paying anywhere near that amount. Kleinbard’s work gained national recognition after […]

Legislation

Mortgage Relief Settlement Could Defray Tax Liability

As part of a recent settlement between Bank of America and the U.S. Department of Justice, almost seven billion dollars will be available to provide relief for homeowners struggling with “underwater” mortgages. Forgiveness of substantial mortgage debt could however lead to large tax bills in April just as these homeowners […]

Audits

Democrats Follow Through With Inversion Threat

Senate Democrats moved to discourage the use of inversion by outlining a proposal that would restrict the practice of earnings stripping, where U.S. companies borrow money from overseas parents and deduct the interest expense on U.S. taxes. The plan, outlined by Sen. Chuck Schumer (D., N.Y.), makes it clear that […]

Legislation

Inversion deals come with capital gains tax headaches

Lately, we have been following the corporate maneuvers designed to reduce U.S. corporate tax burdens. Unlike the recent Kinder Morgan move that will only affect some investors, inversion deals will bring broader unwelcome tax surprises for legacy investors. Medtronic’s acquisition of Covidien provides an example of how an inversion deal […]

Tax Controversy 

Obama Seeks to Discourage Inversions

The Obama administration is exploring a variety of options in the tax code in an attempt to discourage companies from reincorporating overseas for tax purposes otherwise known as ‘inversion’. Each possible weapon the administration is considering has its own pros and cons, with no decision having been made thus far. […]

Legislation