Tax Law Archives | Page 5 of 56

20Dec 2023 by Anthony Diosdi

What is an Initial Appearance/Arraignment in a Federal Criminal Tax Case?

Tax Law

By Anthony Diosdi When an individual is charged with most crimes, the focus of an investigation by law enforcement is typically directed to a limited historical event. Questions of where the defendant was on the night in question, what his or her relationship to the victim, whether he or she had any motive to commit the alleged crime can be pursued immediately by both the prosecution and the defense. Criminal tax cases are different. Most criminal investigations start with a defendant and seek a crime. The question is not whether the defendant did something wrong; it is whether the defendant did anything wrong. Any crime involving tax can result in criminal prosecution, whether it was committed yesterday or five years ago. As a result, criminal tax investigations can take years.If…

14Dec 2023 by Anthony Diosdi

San Francisco Tax Lawyers: Your Allies in Complex Tax Matters

Tax Law

In the intricate world of tax law, having a skilled San Francisco tax lawyer by your side is more than a convenience—it's a necessity. At Diosdi Ching & Liu, LLP, we specialize in providing comprehensive tax services, guiding our clients through the complexities of tax laws with expertise and precision. The Role of Expert Tax Lawyers in San Francisco The landscape of tax law is continually evolving, and San Francisco's economic diversity adds another layer of complexity. Whether you're dealing with individual tax planning, business tax concerns, or facing an IRS audit, the role of an experienced tax lawyer is indispensable. Learn more about our tax services. Addressing a Spectrum of Tax Needs At Diosdi Ching & Liu, LLP, our team of seasoned San Francisco tax lawyers is equipped to handle…

13Dec 2023 by Anthony Diosdi

The Application of the Anti-Conduit and Anti-Hybrid Regulations to Hybrid Entities and Hybrid Instruments

Tax Law

By Anthony Diosdi The Internal Revenue Service (“IRS”) has issued final regulations (T.D. 8611) relating to conduit financing arrangements under authority granted by Section 7701(l). These regulations were effective September 10, 1995. Under the anti-conduit regulations, the IRS may disregard the participation of a conduit entity and recharacterize separate financing transactions to which a conduit is a party as a direct financing between the ultimate provider and ultimate recipient of the financing. For such an intermediate entity to be a conduit: 1) there must be two or more “financing” transactions linked by the common “immediate entity” or group of related entities (i.e., “financing arrangement”), 2) the participation of the intermediate entity must have the effect of reducing U.S. tax, and 3) the participation of the intermediate entity must be pursuant…

13Dec 2023 by Anthony Diosdi

FIRPTA and the Benefits of a Section 897(i) Election

Tax Law

By Anthony Diosdi Foreign investors actively invest in U.S. real estate by speculating on land and developing homes, condominiums, shopping centers, and commercial buildings. Many foreign investors own recreational property in popular U.S. beach and ski destinations. Any foreign investor in U.S. real estate should consider the Foreign Investment in Real Property Tax Act of 1980 (“FIRPTA”) or the effects of Section 897 of the Internal Revenue Code. Section 897 was designed to counteract the use of the various techniques that had been developed to avoid income tax on the disposition of U.S. real property. Section 897 provides that gain or loss realized by nonresident aliens or foreign corporations on the disposition of U.S. real property. Section 897 provides that gain or loss realized by nonresident aliens or foreign corporations…

13Dec 2023 by Anthony Diosdi

Determining Taxable Gains from the Sale of CFC Stocks

Tax Law

By Anthony Diosdi Virtually all controlled foreign corporations (“CFCs”) generate earnings and profits that become previously taxed earnings and profits (“PTEP”). Special rules under Internal Revenue Code Section 959 apply in determining the ordering and taxation of distributions of a PTEP. The rules governing PTEP distributions also apply in determining the basis of CFC corporate stocks. This is because the PTEP regime requires upward and downward basis adjustment in CFC stock for gross income inclusions at the U.S. shareholder level attributable to such CFC. The purpose of the basis adjustments rules of the PTEP regime is to prevent the earnings of a CFC from being taxed at the time of an income inclusion and again when the CFC shareholder sells his or her shares.When a U.S. shareholder has a subpart…

01Dec 2023 by Anthony Diosdi

How to Determine the Withholding Tax on a Foreign Partner’s Partnership Interest

Tax Law

By Anthony Diosdi Foreign investors generally have the same goals of minimizing their income tax liabilities from their business investments, as do their U.S. counterparts, although their objective is complicated by the very fact that they are not U.S. persons. That is, foreign investors must be concerned not only with income taxes in the United States, but also income taxes in their home country. Further, the United States has a special income tax regime that is applicable to foreign persons. Specifically, if the foreign investor derives certain types of passive income, it is typically taxed at a flat 30 percent rate (without allowance for deductions), unless an applicable U.S. tax treaty reduces this statutory rate. In contrast, if the U.S. activities of the foreign investor rises to the level of…

22Nov 2023 by Anthony Diosdi

The Tax Consequences of Liquidating C Corporations

Tax Law

By Anthony DiosdiThe closing events of corporate lifetime invoke liquidation of the corporate enterprise. The Internal Revenue Code and regulations fail to provide a precise definition of the term liquidation. However, some guidance is provided by regulations providing that “[a] statute of liquidation exists when the corporation ceases to be a going concern and its activities are merely for the purpose of winding up its affairs, paying its debts, and distributing any remaining balance to its shareholders.” See Treas. Reg. Section 1.332-2(c). Thus, it is useful to think of liquidations as a process through which the corporation winds up its affairs and distributes remaining assets to its shareholders rather than a single event.A corporation may liquidate in one of two ways. After paying off creditors, it may distribute the assets…

22Nov 2023 by Anthony Diosdi

An Overview of the Federal Taxation of S Corporations

Tax Law

By Anthony DiosdiA U.S. corporation can be taxed as either a C or S corporation. C corporations are subject to a double tax regime meaning that there is a tax at the corporate level and a second tax when a dividend is paid to the shareholders. An S corporation is an alternative to the two-tier tax system applicable to C corporations. For federal tax purposes, with an S corporation, there is no corporate taxation. Instead, only the shareholders of an S corporation are subject to tax when there is a distribution from the corporation. Since S corporations are only subject to one layer of tax, S corporate shareholders tend to recognize less tax than C corporate shareholders. This article will discuss the basic rules governing the federal taxation of S…

16Nov 2023 by Anthony Diosdi

Navigating San Francisco’s Tax Landscape: Choosing the Right Tax Attorney

Tax Law

In the dynamic and often complex world of San Francisco's tax laws, having a skilled tax attorney is crucial. At Diosdi Ching & Liu, LLP, our expert team specializes in guiding individuals and businesses through the intricacies of tax law. When seeking a San Francisco tax law attorney, it’s essential to choose a professional who not only understands the law but also prioritizes your unique needs. Why Expertise in San Francisco Tax Law Matters San Francisco's tax regulations can be labyrinthine. Whether it's navigating state taxes, understanding federal tax obligations, or dealing with specific local tax laws, the expertise of a seasoned tax attorney is invaluable. Our attorneys at Diosdi Ching & Liu, LLP possess deep knowledge of these regulations and offer tailored strategies to manage your tax matters effectively. Services…

16Nov 2023 by Anthony Diosdi

A Brief Overview of Taxable Corporate Mergers and Acquisitions

Tax Law

By Anthony DiosdiCorporations sometimes purchase stock in other corporations to hold for investment or purchase assets from other corporations to hold for investment or to use for business operations.In common tax parlance, “corporate acquisition” generally refers to an acquisition of control by one corporation over another. One corporation may acquire control over another through two different transaction types. First, a simple asset acquisition from the target corporation itself offers the purchaser direct control over the selling corporation’s assets. Second, a stock acquisition from the target corporation’s shareholders provides the purchaser with indirect control over the selling corporation’s assets through its ownership of the target corporation’s stock.In a stock purchase, the purchasing corporation (P) acquires a controlling interest in the target corporation’s (T) stock from the target’s shareholder, thus becoming a…