Thursday, April 26, 2012
8:00 a.m.
Continental Breakfast
8:30 a.m. – 10:30 a.m.
Recent Federal Income Tax Developments
Martin J. McMahon, Jr., Stephen C. O'Connell Professor of Law, Fredric G. Levin College of Law, University of Florida and Ira B. Shepard, Professor of Law (Emeritus), University of Houston Law Center
This session will provide an examination of the legislation, court opinions, and regulations and rulings of the past year.
10:30 a.m. – 10:40 a.m.
Break
10:40 a.m. – 11:40 p.m.
The New Medicare Tax on Net Investment Income: Considerations for S Corporation Shareholders, LLC Members and Limited Partners
C. Wells Hall, III, Mayer Brown, LLP
The 2010 Health Care Act increases the Medicare portion of the self-employment tax to 3.8% and subjects
investment income, for the first time in the history of Social Security, to the
Medicare tax. The new Medicare tax provisions are effective for tax years
beginning after December 31, 2012. A partner, an LLC member, or an S corporation
shareholder will be exposed to the new 3.8% Medicare tax on net investment
income attributable to his or her share of the operating income of the
partnership, LLC or S corporation, as the case may be, if the activity
generating the income is "passive" under Section 469 with respect to the
taxpayer. The implication of choice of entity and planning opportunities in the
current environment will be analyzed through hypothetical fact patterns.
11:45 p.m. – 12:45 p.m.
Using Losses in a Partnership
Ana Cristina Arumi, Hogan Lovells US, LLP
In order for a loss generated at the
entity level to give rise to a deduction on a partner's return, a host
of conditions must be satisfied: the
allocation of the loss to the partner must be respected under §
704(b); the partner must possess
sufficient basis under § 704(d); the partner must possess a
sufficient amount at risk under § 465,
and the loss must not be suspended under the § 469 passive
activity rules. The presentation will
address these limitations and other provisions that apply in the
loss context, including the character
of a distributive share of loss as well as losses triggered by
abandonment
or worthlessness.
12:45 p.m. – 1:45 p.m.
Lunch (provided)
1:45 p.m. – 2:45 p.m.
Taxation of Non-U.S Nationals Moving to the United States
Jeffrey R. Wills, Deloitte, LLP
This session focuses on the various nuances of inpatriate taxation. The speaker will discuss the tax complications and planning opportunities that Non-U.S. Nationals can face in their year of arrival to the U.S. and year of departure. We will also explore tax considerations for individuals on short-term assignments to the United States of less than a year as well as some of the new documentation requirements facing the individuals such as Form 8938 (Statement of Specified Foreign Financial Assets).
2:50 p.m. – 3:50 p.m.
Current Valuation Issues
John W. Porter, Baker Botts, LLP
A discussion of current transfer tax issues involving the valuation of interests in closely-held entities, including family LLPs and LLCs. The discussion will include an analysis of current IRS positions, defenses to those positions, recent case law, and tips to help prepare for or avoid a dispute with the IRS regarding these entities.The discussion will also cover privilege issues and the working relationship between experts and attorneys.
3:50 p.m. – 4:00 p.m.
Break
4:00 p.m. – 6:00 p.m.
Practical Ethics in Tax Practice*
Deborah L. Hildebran-Bachofen, Manning Fulton & Skinner, PA and Maria M. Lynch, Lynch & Eatman, LLP
This session will focus on hypothetical situations involving professional ethics with a special emphasis on recent changes to Circular 230.
*The School of Law is greatly appreciative of the Judge Marshall T. Spears, Sr. Lecture, which was established in 1981 by E.F. Spears to support professional Continuing Legal Education.
Friday, April 27, 2012
8:00 a.m.
Continental Breakfast
8:30 a.m. – 9:30 a.m.
Contingent Purchase Price, Contingent Liabilities and Indemnities in Acquisitions
Robert H. Wellen, Ivins, Phillips & Barker
Acquisitions have loose ends. There may be contingent purchase price like an earn-out or escrow. In addition, unliquidated costs and claims like environmental remediation, deferred compensation or tax deficiencies must be provided for. The buyer may take on the obligation to pay these items, or the seller may continue to be responsible, directly or through indemnities. In this session, we will discuss the tax implications of these loose ends.
9:35 a.m. – 10:50 a.m.
Transfer Tax Reform: Is Repeal in Our Future?**
Sanford J. Schlesinger, Schlesinger Gannon & Lazetera LLP
The speaker will discuss how the estate tax, gift tax and generation-skipping transfer tax aspects of the Tax Relief, Unemployment Insurance Reauthorization and Job Creation Act of 2010 affects estate planning and the administration of estates, and the prospects for further Federal transfer tax legislation. The speaker will also discuss recent IRS developments and case law developments regarding the various aspects of estates and trusts.
10:50 a.m. – 11:00 a.m.
Break
11:00 a.m. – 12:00 p.m.
Recourse or Non-Recouse, That is the Question
Jon Finkelstein, McDermott Will & Emery LLP
The complexity of modern financing techniques in partnerships and disregarded entities complicates the analysis of whether indebtedness is recourse or nonrecourse for a variety of tax purposes, including debt allocations, loss allocations and cancellation of indebtedness. Are there any answers to these fundamental questions?
12:00 p.m. – 1:00 p.m.
Lunch (provided)
1:00 p.m. – 2:00 p.m.
Civil and Criminal Tax Enforcement: What Can We Expect From the IRS in 2012
Niles A. Elber, Caplin & Drysdale and Scott D. Michel, Caplin & Drysdale
A panel of defense attorneys will review current IRS enforcement priorities in 2012 including the latest on voluntary disclosures and the government's war against undisclosed offshore accounts. Additionally, the panel will discuss tactics for dealing with eggshell audits, trust fund cases, and other challenging tax-related representations.
2:05 p.m. – 3:05 p.m.
North Carolina State Tax Reform
Sabra J. Faires, Bailey & Dixon, LLP
This session will examine tax reform and related issues in North Carolina.
3:05 p.m. – 3:15 p.m.
Break
3:15 p.m. – 4:15 p.m.
Forced Combination of Separate Entity Tax Returns in North Carolina
Charles B. Neely, Jr., William Mullen
In recent years, the most hotly controversial area of North Carolina taxation of multistate corporations has involved the aggressive use by the Department of Revenue of its forced combination remedy. The Department's use of forced combination has provoked taxpayer challenges to the Department's authority to make assessments based on forced combination and a multi-year legislative effort to reform the law, which has left North Carolina with different statutory schemes for combination depending upon the year subject to audit. In response to those legal challenges and legislative initiatives, the Department has issued a directive outlining standards for forced combination and other adjustments to corporate returns. This session will review this area of the law and its implications for multistate corporations.
**The School of Law is greatly appreciative of the Marvin K. and Florence T. Blount Lecture, which was established in 1973 by Marvin (J.D., 1916) and Florence Blount to promote greater professional and public awareness of estate planning and tax issues.