Lowell D. Yoder

Lowell D. Yoder focuses his practice on cross-border mergers and acquisitions, global tax planning and international tax controversies, representing high-tech, pharmaceutical, e-commerce, financial, consumer and industrial companies. He advises on tax-efficient structuring of cross-border acquisitions, dispositions, financings, internal reorganizations and joint ventures, as well as tax-beneficial planning for intangible holding companies, global supply chains and multi-jurisdictional service arrangements. Lowell also represents clients before the Internal Revenue Service (IRS), handling audits and obtaining tax rulings. He works with an extensive network of lawyers worldwide, developing tax-favorable transactional and operational cross-border structures. Lowell is the global head of McDermott's Tax Practice. Read Lowell Yoder's full bio.

Firm/Organization: McDermott Will & Emery

Blogs: Tax Controversy 360

Latest Articles

Tax Controversy 360

Code Sec. 367(a) and (d) After the TCJA

By Lowell D. Yoder

January 3, 2020

Code Sec. 367(a) and (d) subject to taxation a transfer of tangible and intangible property by a U.S. person to a foreign corporation in an otherwise tax-free transaction. While for many years exceptions were provided for transfers of certain types of property, the Tax Cuts and Jobs Act (“TCJA”) amended Code Sec. 367, removing the exceptions and broadening the definition of intangible property. Specifically, Code Sec. 367(a)(1) provides generally that gain realized on the transfer…

Tax Controversy 360

International Tax Journal: Code Sec. 956 Proposed Regs

By Lowell D. Yoder

March 8, 2019

Code Sec. 951(a)(1)(B) requires a US shareholder of a controlled foreign corporation (CFC) to include in its gross income “the amount determined under section 956 with respect to such shareholder for such year….” This amount generally is the shareholder’s pro rata share of the average of the amounts of US property held by the CFC as of the close of each quarter. The amount of the inclusion is reduced by the amount of the CFC’s…

Tax Controversy 360

Proposed Regulations under Section 956 Provide Benefits for Corporate Taxpayers

By Lowell D. Yoder, Timothy S. Shuman & Bradford E. LaBonte

November 20, 2018

On October 31, 2018, the Internal Revenue Service (IRS) and US Department of the Treasury (Treasury) released proposed regulations (REG-114540-18) (the Proposed Regulations) that would prevent, in many cases, income inclusions for corporate US shareholders of controlled foreign corporations (CFCs) under section 956. As a result, among other considerations, the Proposed Regulations could significantly expand the ability of corporate US affiliates to benefit from credit support of CFCs. Read the full article. …

Tax Controversy 360

Bloomberg Tax: Prop. GILTI Regs: ‘Tested Income’

By Lowell D. Yoder

November 15, 2018

The Treasury and IRS recently issued proposed regulations under §951A.1 The regulations provide rules for determining the amount of the inclusion in a U.S. shareholder’s gross income of global intangible low-taxed income (GILTI). The GILTI inclusion amount is the aggregate of a U.S. shareholder’s pro rata shares of tested income less tested losses from each directly and indirectly owned controlled foreign corporation (CFC), less 10% of its aggregate pro rata shares of qualified business asset…

Tax Controversy 360

Tax Reform Insight: US Tax Costs Significantly Reduced on Sale of CFC Stock

By Lowell D. Yoder, Timothy S. Shuman, Michael J. Wilder & Jonathan D. Lockhart

September 13, 2018

Following the 2017 Tax Act, the US tax costs to a corporate US shareholder that sells stock in a controlled foreign corporation (CFC) are significantly reduced. Beginning in 2018, the amount of gain will be generally less than in prior years and most or all such gain will frequently not be subject to any US federal income taxation. The amount of gain recognized in a sale of course is the difference between the amount realized…

Tax Controversy 360

Tax Reform Insight: IRS Slams Door on Refunds/Credits for Taxpayers with Section 965 Transition Tax Liability

By Andrew R. Roberson, Sandra P. McGill, David G. Noren & Lowell D. Yoder

August 21, 2018

The Internal Revenue Service (IRS) has issued PMTA 2018-016, reaffirming its position that for taxpayers making an election under Internal Revenue Code (Code) Section 965(h) to pay the transition tax over eight years through installment payments, any overpayments of 2017 tax liabilities cannot be used as credits for 2018 estimated tax payments or refunded, unless and until the overpayment amount exceeds the full eight years of installment payments. The IRS’s position has affected many…

Tax Controversy 360

Tax Reform Insight: Eligibility Requirements for Reduced Tax Rate on FDII for Royalties

By David G. Noren, Lowell D. Yoder & Elizabeth Chao

July 18, 2018

A domestic corporation’s royalty income derived in connection with business conducted outside the United States generally is eligible for the reduced 13.125 percent effective tax rate on foreign derived intangible income (FDII). To qualify, the licensee must be a foreign person, and the intangible property must be used outside the US for the ultimate benefit of an unrelated foreign person. For example, the lower rate generally should be available for royalties from licensing intangible property…

Tax Controversy 360

Tax Reform Insight: New Foreign Tax Credit Rules May Warrant Restructuring Foreign Branches

By Damon M. Lyon, Lowell D. Yoder, Susan E. O’Banion & Evan Walters

June 27, 2018

The 2017 Tax Act added a separate foreign tax credit limitation category, or basket, for income earned in a foreign branch. As a result, certain US groups may be limited in their ability to use foreign income taxes paid or accrued by a foreign branch as a credit against their US federal income tax liability. This new limitation can present a problem for a taxpayer with losses in some foreign branches and income in other…

Tax Controversy 360

Tax Reform Insight: IRS Doubles Down on Retention of 2017 Overpayments to Satisfy Future Section 965 Installment Payments

By Andrew R. Roberson, David G. Noren, Sandra P. McGill & Lowell D. Yoder

June 19, 2018

We previously discussed the Internal Revenue Service’s (IRS) surprising position that for taxpayers making an election under Internal Revenue Code (Code) Section 965(h) to pay the transition tax over 8 years through installment payments, any overpayments of 2017 tax liabilities cannot be used as credits for 2018 estimated tax payments or refunded, unless and until the overpayment amount exceeds the full 8 years of installment payments. The IRS’s position has affected many taxpayers, and practitioners…

Tax Controversy 360

IRS Holding 2017 Overpayments to Satisfy Future Section 965 Liabilities

By Lowell D. Yoder, Sandra P. McGill, David G. Noren & Andrew R. Roberson

May 9, 2018

In a surprising development, the Internal Revenue Service (IRS) has announced that if a taxpayer’s 2017 payments, including estimated tax payments, exceed its 2017 net income tax liability described under Internal Revenue Code (Code) Section 965(h)(6)(A)(ii) (its net income tax determined without regard to Code Section 965) and the first annual installment (due in 2018) pursuant to an election under Code Section 965(h), the taxpayer may not receive a refund or credit of any portion…

Lowell D. Yoder

Code Sec. 367(a) and (d) After the TCJA

International Tax Journal: Code Sec. 956 Proposed Regs

Proposed Regulations under Section 956 Provide Benefits for Corporate Taxpayers

Bloomberg Tax: Prop. GILTI Regs: ‘Tested Income’

Tax Reform Insight: US Tax Costs Significantly Reduced on Sale of CFC Stock

Tax Reform Insight: IRS Slams Door on Refunds/Credits for Taxpayers with Section 965 Transition Tax Liability

Tax Reform Insight: Eligibility Requirements for Reduced Tax Rate on FDII for Royalties

Tax Reform Insight: New Foreign Tax Credit Rules May Warrant Restructuring Foreign Branches

Tax Reform Insight: IRS Doubles Down on Retention of 2017 Overpayments to Satisfy Future Section 965 Installment Payments

IRS Holding 2017 Overpayments to Satisfy Future Section 965 Liabilities

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