Larry's Tax Law

It is hard to believe it, but 2019 is coming to an end. We have had a truly interesting year in the world of tax law, the primary impetus of which was the aftermath of the Tax Cuts and Jobs Act (“TCJA”).  During the past 12 months, we have explored several aspects of the TCJA as well as other interesting developments in tax law, including:

• • Opportunity Zone Funds – Part I—Overview of the Law
  • Opportunity Zone Funds – Part II—Due Diligence Required
  • Opportunity Zone Funds – Part III—Lots of Questions But Few Answers
  • Opportunity Zone Funds – Part IV—The Second Round of Proposed Regulations
  • Oregon’s New Corporate Activity Tax
  • Now You See It – Now You Don’t. Like Magic, the City of Portland Disallows Depreciation Deductions Otherwise Allowable as a Result of Code Section 754
  • Referendum to Repeal Oregon Corporate Activity Tax Has Wind Taken Out of Its Sails – The New Tax May Be Here to Stay
  • The Oregon Department of Revenue Plans to Publish Much Needed Guidance on the Newly Enacted Corporate Activity Tax
  • IRS Cleaning House at the Office of Professional Responsibility
  • Be Aware – The CAT Is on the Prowl – the Oregon Department of Revenue’s Town Hall Meetings Begin Tonight
  • School is Back in Session and the CAT is Among the Most Popular Courses
  • The CAT Continues to Be on the Prowl – the Oregon Department of Revenue’s Town Hall Meetings Roadshow Made It to Portland
  • The CAT Has Gone Telephonic
  • Hold the Phone, but Not Your Questions – Recent Oregon CAT Updates
  • The IRS Continues Taking Measures to Enhance Security – the EIN Application Process Changed Earlier This Year
  • Continue to Keep Your Eyes Peeled and Your Ears Tuned-In for CAT Developments—They Are Rolling In

The NYU 78th Institute on Federal Taxation (IFT) takes place in New York City on October 20-25, 2019, and in San Francisco on November 10-15, 2019.  This year, I will be presenting a new White Paper entitled “The Road Between Subchapter C and Subchapter S – It May Be a Well-Traveled Two-Way Thoroughfare, but It Isn’t Free of Potholes and Obstacles.”  We will explore the obstacles and complexities that may impede travel on this two-way road, including the built-in-gains tax, LIFO recapture, excessive passive income, unreasonable compensation, personal holding company status, excessive accumulated earnings, and re-election hindrances and restrictions.

Joining me to co-present this expansive topic is my esteemed colleague Wells Hall of Nelson Mullins Riley & Scarborough LLP.

Garvey Schubert Barer, PC and Foster Pepper PLLC have combined to create a mission-driven firm and to expand reach and services. Foster Garvey PC, created by the combination of these two legacy Pacific Northwest law firms, officially launches today, October 1, 2019.

I previously announced that the owners of Garvey Schubert Barer and Foster Pepper voted overwhelmingly to combine forces. Since then, both firms have been working closely to advance the shared goal of ensuring clients have access to a greater breadth and depth of service offerings, creating a one-stop shop for clients while continuing to preserve the relationships, culture and first-rate service clients have come to expect. 

Please join me later this month in New York City for NYU’s Tax Conferences in July. I will be speaking at the program’s Advanced Subchapter S Conference on July 25-26, 2019.

I will be presenting my new White Paper entitled “The Road Between Subchapter C and Subchapter S – It May Be a Well-Traveled Two-Way Thoroughfare, but It Isn’t Free of Potholes and Obstacles.” We will explore the complexities that may impede travel on this two-way road, including the built-in-gains tax, LIFO recapture, excessive passive income, unreasonable compensation, personal holding company status, excessive accumulated earnings, and re-election hindrances and restrictions.

I want to share some exciting news with you.

Our firm, over the years, has explored mergers with other law firms, both medium and large.  We never completed a merger, however, due in most part to cultural differences.  Our firm is not and probably never will be “big law.”  Instead, as you know, we partner/collaborate with our clients in a manner to bring about the best results for clients, give back to our community in a big and meaningful way, and create an environment for our attorneys and staff that is as nonhierarchical as possible.  “Big law” is generally not consistent with that approach to practicing law and, as a consequence, we have stayed the course alone for over 50 years.

Things are changing!  For the past eight months, I have been on a GSB committee exploring a merger with another Pacific Northwest law firm.  This time, we found a great firm to partner with, a law firm with consistent values and culture, and great attorneys and staff.  The firm is Foster Pepper, PLLC.

It is hard to believe it, but 2018 is close to an end. We have had a truly interesting year in the world of tax law, the primary impetus of which was the passage of the Tax Cuts and Jobs Act (“TCJA”) late last year.  

During the past twelve months, we have explored several aspects of the TCJA as well as other interesting developments in tax law, including:

The NYU 77th Institute on Federal Taxation (IFT) is taking place in New York City on October 21-26, 2018, and in San Diego on November 11-16, 2018.  This year, I will be presenting my latest White Paper, Subchapter S After The Tax Cuts And Jobs Act – The Good, The Bad And The Ugly.  My presentation will include a discussion about the direct changes made by the TCJA to Subchapter S as well as the impact on Subchapter S by other provisions of the TCJA, including creation of a single corporate tax rate under Section 11, creation of the Section 199A deduction, elimination of personal property exchanges under Section 1031, and elimination of the corporate alternative minimum tax. I will also discuss the ongoing benefits of Subchapter S and new traps that exist for the unwary.

The IFT is one of the country's leading tax conferences, geared specifically for CPAs and attorneys who regularly are involved in federal tax matters.  The speakers on our panel, Taxation of Closely Held Businesses, include some of the most preeminent tax attorneys in the United States, including Jerry August, Terry Cuff, Wells Hall, Stephen Looney, Ronald Levitt, Stephen Kuntz, Mark Peltz, and Bobby Philpott.  I am proud to be a part of IFT.

This will be my eighth year as an IFT presenter, and I am again speaking as part of the Closely Held Business panel on October 25 (NYC) and November 15 (San Diego).  As in previous years, the IFT will cover a wide range of fascinating topics, including tax controversy, executive compensation and employee benefits, international taxation, corporate taxation, real estate taxation, partnership taxation, taxation of closely-held businesses, trusts and estates, and ethics.  The IFT is especially important this year given the recent passage of the TCJA and the many new tax provisions that were added to the Code, including Section 199A.   

I hope you will join us this year for what will be a terrific tax institute.  Looking forward to seeing you in either New York or San Diego!

View the complete agenda and register at the NYU 77th IFT website.

It is hard to believe it, but 2017 is close to an end.  We have had a truly interesting year in the world of tax law.  Attempts to eliminate the Affordable Care Act and the enactment of the Tax Cuts and Jobs Act in late December are highlights of this past year.  In early January, I plan to provide readers with a multi-part series on the new tax law.

During the past 12 months, we have explored several topics, including:

The NYU 76th Institute on Federal Taxation (IFT) is taking place in New York City on October 22-27, 2017, and in San Francisco on November 12-17, 2017.  This year, I will be presenting my latest White Paper, The Built-in Gains Tax Revisited.  My presentation will include a discussion about the history of the tax; application and impact of the tax; ways to avoid or potentially minimize the tax; the complexities of Code Section 1374 and the regulations promulgated thereunder; valuation issues; planning opportunities; traps that exist for the unwary; relevant cases and rulings; and practical tax practitioner guidance.

The IFT is one of the country's leading tax conferences, geared specifically for CPAs and attorneys who regularly are involved in federal tax matters.  The speakers on our panel include some of the most preeminent tax attorneys in the United States, including Jerry August, Terry Cuff, Wells Hall, Karen Hawkins, Stephen Looney, Stephen Kuntz, Mark Peltz and Bobby Philpott.  I am proud to be a part of IFT.

This will be my fifth year as an IFT presenter, and I am speaking as part of the Closely Held Business panel on October 26 (NYC) and November 16 (San Francisco).  As in previous years, the IFT will cover a wide range of fascinating topics, including tax controversy, executive compensation and employee benefits, international taxation, corporate taxation, real estate taxation, partnership taxation, taxation of closely-held businesses, trusts and estates, and ethics.

I hope you will join us this year for what will be a terrific tax institute.  Looking forward to seeing you in either New York or San Francisco!

View the complete agenda and register at the NYU 76th IFT website.

Please join me on June 29, 2017 in Portland, Oregon, for what will be a dynamic presentation on the new partnership audit rules by Jerald August.  Jerry is a Partner in the preeminent New York City-based boutique tax firm Kostelanetz & Fink, LLP.  He has served as a chair of NYU's Institute on Federal Taxation for a number of years and specializes in federal and state income taxation, including taxation of pass-thru entities and tax controversy.  Jerry is not only one of the brightest tax lawyers you will ever meet, he is an outstanding speaker.  We are very fortunate to have him present at the Portland Tax Forum on this important topic.  We all need to learn about the new partnership audit rules – they come into play on January 1, 2018.