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Deals At Risk: Textron Opens Door to IRS Discovery of 'Tax Accrual Workpapers'
A “silo” might be a farm building, but in the equipment leasing industry it means a “sale-in, lease-out” transaction. While considered fairly routine in most quarters, in recent years the Internal Revenue Service has flagged such deals as potentially abusive tax shelters. SILOs underlie a confrontation between a taxpayer and the IRS in the new First Circuit case of United States v. Textron Inc., __ F.3d __ (1st Cir. Aug. 13, 2009) (available on the First Circuit's Web site). But that decision was not just about the legality or taxing of such leases. Rather, it has grave consequences on a far more sweeping issue: the inability of taxpayers to shield from disclosure so-called “tax accrual workpapers,” documents typically prepared by in-house tax attorneys that set out in detail sensitive areas of tax liability.
The Textron Facts
Textron, a well-known aerospace and defense conglomerate, calculates its tax liability for the dual purposes of preparing audited financial statements, and its tax return. This gives rise to the commonplace necessity for “tax accrual workpapers.” Tax accrual workpapers are typically spreadsheets that support a corporation's calculation of its tax liabilities, and routinely include an assessment of whether a particular tax deduction will pass muster if challenged by the IRS. Such frank appraisals by in-house and outside tax counsel represent the soft underbelly of corporate accounting, because they give the tax collector a well-marked road to potential tax underpayments.
Yachts, Jets, Horses & Hooch: Specialized Commercial Leasing Models
Defining commercial real estate asset class is essentially a property explaining how it identifies — not necessarily what its original intention was or what others think it ought to be. This article discusses, from a general issue-spot and contextual analysis perspective, how lawyers ought to think about specialized leasing formats and the regulatory backdrops that may inform what the documentation needs to contain for compliance purposes.
Hyperlinked Documents: The Latest e-Discovery Challenge
As courts and discovery experts debate whether hyperlinked content should be treated the same as traditional attachments, legal practitioners are grappling with the technical and legal complexities of collecting, analyzing and reviewing these documents in real-world cases.
Identifying Your Practice's Differentiator
How to Convey Your Merits In a Way That Earns Trust, Clients and Distinctions Just as no two individuals have the exact same face, no two lawyers practice in their respective fields or serve clients in the exact same way. Think of this as a "Unique Value Proposition." Internal consideration about what you uniquely bring to your clients, colleagues, firm and industry can provide untold benefits for your law practice.
Risks and Ad Fraud Protection In Digital Advertising
The ever-evolving digital marketing landscape, coupled with the industry-wide adoption of programmatic advertising, poses a significant threat to the effectiveness and integrity of digital advertising campaigns. This article explores various risks to digital advertising from pixel stuffing and ad stacking to domain spoofing and bots. It will also explore what should be done to ensure ad fraud protection and improve effectiveness.
Turning Business Development Plans Into Reality
This article offers practical insights and best practices to navigate the path from roadmap to rainmaking, ensuring your business development efforts are not just sporadic bursts of activity, but an integrated part of your daily success.