On December 22, 2017, US President Donald Trump signed HR 1, the tax bill formerly known as the Tax Cuts and Jobs Act, enacting fundamental changes to the US tax code. The changes affect all sectors of the economy and the wide-ranging implications span major issues including cross-border/international federal tax issues, inbound investments, pass-through entities, investment funds and their managers, state and local tax issues, executive compensation, and tax-exempt organizations, among others.
Our top-tier tax team—which includes former tax legislative counsel and international tax counsel at the US Treasury Department, legislation counsel for the US Congress’s Joint Committee on Taxation, and IRS Chief Counsel lawyers, including a former IRS chief counsel—assists clients in virtually all the major industries around the globe in understanding how these important changes will affect their businesses and how to navigate the changing tax law landscape.
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Please join Morgan Lewis for a series of webinars focusing on tax reform in the context of the following issues:
Earlier today the IRS issued new withholding tables for 2018, along with an explanatory news release and a frequently asked questions document.
Certain individuals who have only signature authority over foreign financial accounts now have until April 15, 2019 to file the Report of Foreign Bank and Financial Accounts.
Federal tax reform will have a significant and possibly unexpected impact on state taxes, including on individual deductions and, for corporations, reporting methods and limitations regarding net operating losses and interest expense.
New tax provisions have significant impact on structuring mergers and acquisitions.
It answers some questions but leaves many issues unresolved.
The tax bill formerly known as the Tax Cuts and Jobs Act (the Act) reduces tax rates for individuals, lowering the top marginal tax rate from 39.6% to 37%, effective January 1, 2018. Employers should make sure that the tax rates used for federal tax withholding on equity awards are reduced to correspond to the lower rates under the Act, in order to avoid adverse financial accounting consequences.
New provisions will have a significant impact on secondary sales of fund interests and partnership M&A transactions.
Tax-exempt bond financing, an anticipated impact to philanthropic donations, repeal of the individual mandate, and taxation of highly compensated executives are among the changes for 2018.
Adopting the Senate’s approach, tax reform legislation will not require governmental pension plans to be subject to unrelated business income tax, and tax-exempt entities subject to tax on unrelated business taxable income will need to segregate taxable income and loss for each unrelated trade or business activity.
Today, US President Donald Trump signed H.R. 1, enacting fundamental changes to the US tax law that affect all sectors of the economy, including nonprofits.
The Tax Cuts and Jobs Act (the Act) was passed by the House and Senate and is expected to be signed into law by President Trump soon.
We expect that the Tax Cuts and Jobs Act (the Act) will be signed into law by the end of this week. The Act would make significant changes to Section 162(m) of the Internal Revenue Code, all of which would be effective for taxable years beginning on and after January 1, 2018. These changes potentially affect all awards payable in and after 2018, unless the company takes action now.
Included in both the Senate and House tax reform bills is a reduction in the corporate tax rate from 35% to 20% (but, it appears the reconciled bill includes a corporate tax rate of 21%). The Senate plan cuts the corporate tax rate effective in 2019 and the House plan in 2018.
Law360 Quoted: Alexander Reid
The Recorder Quoted: Bart Bassett
Vox Quoted: Alex Reid
The Wall Street Journal Quoted: Mary B. “Handy” Hevener
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Route Fifty Quoted: Richard Zarin
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The Wall Street Journal Quoted: Bart Bassett
Bloomberg BNA Quoted: John Ryan