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Tax News
Archive - June 2014
W-8BEN-E Instructions are Released – Tax Policy Meets Reality
W-8BEN-E Instructions are Released – Tax Policy Meets Reality
In my last post regarding W-8BEN-E, I observed that some foreign businesses were in a predicament because withholding agents started asking for the form but there were no instructions. I asked "for how long" will this continue and the IRS answered - until June 24th.  Aside any jokes that the IRS is actually taking queue from my blog posts, as practitioners had hoped, the IRS released instructions before the July 1st FATCA deadline. As a lawyer, I don’t do much reporting and I would not comment on the intricacies of the form. However, I have a few practical observations.  I...
June 26, 2014 read more
CCA 201423019 – a Bona Fide Section 475(f) Election Nightmare
CCA 201423019 – a Bona Fide Section 475(f) Election Nightmare
This CCA was released by the IRS a few days ago. Two things caught my eye here. First it dealt with agency issues, something that any offshore trader or lender fund ought to be interested in, and two, it dealt with what appears to be a belated 475(f) election. The facts are not overly elaborate.  What seems to be a domestic Holdco taxpayer had X% interest in a lending business conducted through Partnership X.  Partnership X engaged in originating and purchasing mortgage loans on the open market and also participated in mortgage backed securitization activities. The securities were...
June 11, 2014 read more
W-8BEN-E in No-Man Land Until….When?
W-8BEN-E in No-Man Land Until….When?
On this blog I’ve voiced my skepticism about FATCA, both as a policy rationale and as a logistical undertaking. Recently I started observing the effects of something I can only describe as a blunder on part of the U.S. taxing authorities. So, W-8BEN-E is out for a few months now. Many people waited eagerly for the form to be released.  What happened, however, is that there are no instructions! Well, that apparently does not prevent some withholding agents from sending out the form to foreign businesses. I would describe this as overzealousness that is not necessarily valid or logical....
June 04, 2014 read more