The Court of Appeal has confirmed in HMRC v M R Currell Ltd that, prior to the introduction of the disguised remuneration rules, a genuine and repayable loan made via an employee benefit trust (EBT) is not taxable as employment
Tax Talks
The Proskauer Tax Blog
Tax Talks, published by Proskauer Rose LLP, focuses on developments and analysis in tax law and policy. The blog covers topics such as the economic substance doctrine, like-kind exchanges under Section 1031, domicile and residency issues for tax purposes, and regulatory changes affecting real estate investment trusts (REITs). It addresses judicial decisions, IRS guidance, and proposed regulations impacting tax compliance, planning, and litigation. The content is relevant to practitioners and clients navigating complex federal and state tax rules, including corporate, partnership, and individual tax matters.
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Burlington in the Court of Appeal: New Guidance on Purpose Tests and Access to Treaty Benefits
The Court of Appeal has confirmed in Burlington Loan Management DAC v HMRC that “obtaining the benefit of” a tax treaty is not the same as “taking advantage of” it. The treaty anti-abuse rule will only apply where the taxpayer seeks to…
Update: Federal Rulings Ease COVID‑Era Interest, Penalty and Filing Burdens
Update: The National Taxpayer Advocate has published a blog post urging taxpayers to evaluate whether they have claims for refund based on the recent Abdo and Kwong decisions. Importantly, the Taxpayer Advocate suggests that the argument for penalty and interest…
Tax Court Rejects Due Process Challenge to BBA Audit Regime in Jones Bluff
On March 19, 2026, in Jones Bluff, LLC v. Commissioner, 166 T.C. No. 6 (2026), the Tax Court held that a partnership could not assert due process claims to invalidate an IRS adjustment on behalf of its partners under the…
HMRC proposes expanded reporting for close company shareholder transactions
Many of our clients and readers will be familiar with the “loan to participator” rules. These rules apply to loans made by close companies, which in general terms are companies which are controlled by five or fewer participators (or by…
When a Misdirected Partnership Notice isn’t Fatal under the BBA: Mammoth Cave Property
Although many of the procedural rules for auditing partnerships at the federal level have changed under the Bipartisan Budget Act of 2015 (the “BBA”), some principles—like the effect of actual notice—remain the same. Under the BBA, the IRS proposes partnership-level…
Federal Rulings Ease COVID‑Era Interest, Penalty and Filing Burdens
Relief from underpayment interest, failure-to-file penalties, and failure-to-pay penalties—as well as relief from IRS filing deadlines that arose during the COVID-19 pandemic—may be possible under two recent federal cases from the US Tax Court and the US Court of Federal…
Recent Federal Privilege Ruling Related to AI Tools Has Implications for Routine Tax Advisor Arrangements
On February 10, 2026, Judge Jed Rakoff of the Southern District of New York ruled in United States v. Heppner that documents generated through a consumer version of Anthropic’s Claude AI were not protected by the attorney-client privilege or the…
Fifth Circuit in Sirius Solutions Reverses Tax Court and Exempts Limited Partners from Self-Employment Tax
On January 16, 2026, in Sirius Solutions, L.L.L.P. v. Commissioner,[1] No. 24-60240 (5th Cir. Jan. 16, 2026), the U.S. Court of Appeals for the Fifth Circuit reversed the Tax Court and held that, for self-employment tax purposes, a “limited…
Share Buyback Qualified for Capital Treatment Where Undertaken for Genuine Trade Benefit
In Boulting v HMRC, the First-tier Tribunal (FTT) delivered a welcome decision for taxpayers on the tax treatment of a company purchase of its own shares.
The general rule is that when a UK-resident company purchases its own shares from…