Tax Planning for Domestic & Foreign Partnerships, LLCs, Joint Ventures & Other
Strategic Alliances 2010
Chicago, University of Gleacher Center, May 12-14, 2010
New York City, NYC-PLI, May 25-27, 2010
San Francisco, SF-PLI, June 16-18, 2010
Why You Should Attend
Throughout the 1990s and early 2000s, the takeover dominated the world of corporate
finance. It no longer stands alone and may even be in the doldrums for now. Rather, the
defining deal for 2010 and beyond may well be the alliance, the joint venture, the
partnership. Few days go by when the Wall Street Journal doesn’t contain an announcement
involving a joint venture or strategic alliance among companies either in formation or breakup.
This three-day seminar will trace the partnership tax rules from the birth of the partnership
through its operating life, with emphasis on tax issues and planning strategies and
opportunities; and then, since for one reason or another such ventures frequently unwind
either before or after satisfying their purpose, will focus on exit strategies and tax planning
possibilities in unwinding.
Foreign Partnerships, LLCs,
Some of the sessions on the first day are intended to serve as a review of basics. In addition,
there will be panels on partnership and LLC compensatory interests and on noncompensatory partnership options, convertibles, recapitalizations and similar interests; there
will be a panel on state taxation; there will be sessions on disguised sales and guaranteed
payments; there will be a session on partnership mergers and divisions; there will be a
session on energy credit partnerships; there will be a new panel on advanced Section 752
issues; there will be an entire morning on economic substance, anti-abuse rules and recent
cases and proposed legislation including a panel on disputing and litigating partnership tax
cases, and there will be a two-hour session on the entire area of partnership workouts and
debt structurings.
Special attention will also be given to planning under recently finalized sets of regulations
and proposed regulations and to changes wrought by recent legislation and legislative
proposals. Speakers from Treasury and the IRS will be joining a number of the more
advanced panels in order to discuss cutting-edge issues. Finally, the entire afternoon of the
third day will be committed to international joint venture tax planning including the use of
hybrids and, therefore, is intended to be quite advanced.
What You Will Learn & Special Features
• The benefits and detriments of choosing the partnership form
• Avoiding the partnership form for certain strategic alliances
• Effects of the “check-the-box” regulations
• Planning for joint ventures of operating businesses
• Special partnership tax accounting rules
• Inside and outside partnership basis rules
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
Determinations of partner distributive shares and the effect of liabilities
Planning under Section 704(c)
Luncheon session on partnership and LLC compensatory interests including
options, featuring a government panelist
Regulations on non-compensatory partnership options and convertibles
Transactions between the partnership and partners, including exit strategies
Disguised sales
Guaranteed payments
Dispositions of partnership interests
Nonliquidating and liquidating partnership distributions
Partnership terminations under the final regulations
Section 754 election planning and special basis adjustments, including effects of
2004 Jobs Act amendments
Partnership mergers and divisions under the final regulations
State taxation of partnerships, LLCs and their owners
Structuring issues for private equity funds
Energy tax credit partnerships
Advanced Section 752 issues
Extended session on partnership workouts and debt restructurings
The effects of the final partnership anti-abuse regulations on planning
Update on the economic substance doctrine, recent tax shelter cases and
legislation, preparer penalties, ethical considerations
Dispute and litigation strategies in partnership tax cases
Interesting partnership transactions of the past year luncheon session
Panel of inside tax counsel on forming and operating a joint venture
Session featuring IRS and Treasury representatives on the government
perspective on key partnership issues
International joint venture issues and planning – outbound and inbound,
including government panelists
International “check-the-box” planning, including government panelists
Effects of recent or proposed tax legislation
Pending regulatory proposals
The faculty will consist of both inside and outside tax counsel with special expertise in the
transactional aspects of structuring partnerships, joint ventures and other strategic alliances,
both domestic and foreign.
For some of the more advanced topics, the faculty will be joined by panelists from IRS and
Treasury. Many of the faculty have significant teaching experience and will adopt an
approach designed to enable attendees to progress rapidly from an elementary understanding
of the rules to the cutting-edge of the most complex of current transactional issues.
+
Special Bonuses for All Attendees!
Attendees will receive a complimentary copy of the 2010 edition of The Partnership Tax
Practice Series on a fully searchable CD-ROM, shipped directly to you in the Fall of 2010
(NOTE: Approximately 34 out of 325 chapters will not be included on the CD-ROM).
PLEASE NOTE: The program fee does not include hardcopies of the 2010 edition of
The Partnership Tax Practice Series. Attendees will receive a complimentary copy of the
2010 edition of The Partnership Tax Practice Series on a fully searchable CD-ROM,
shipped directly to you in the Fall of 2010 (Approximately 34 out of 325 chapters will not be
included on the CD-ROM). Attendees will also receive a complimentary Conference Book
containing speaker outlines and PowerPoint slides for reference at the program.
Faculty
Co-Chairs:
Louis S. Freeman
Skadden, Arps, Slate, Meagher & Flom LLP
Chicago
Clifford M. Warren
Tax Director
Kohlberg Kravis Roberts & Co.
New York City
(New York City)
Henry A. Orphys
Director, U.S. Tax & Trade
Intel Corporation
Santa Carla, California
(Chicago & San Francisco)
Department of Treasury
Jeffrey Van Hove
Deputy Tax Legislative Counsel
(Regulatory Affairs)
Department of the Treasury
Washington, D.C.
Robert J. Crnkovich
Senior Counsel
(Tax Policy)
Department of the Treasury
Washington, D.C.
Helen H. Morrison
Deputy Benefits Tax Counsel
Department of the Treasury
Washington, D.C.
Internal Revenue Service
Curtis G. Wilson
Associate Chief Counsel
(Passthroughs & Special Industries)
Internal Revenue Service
Washington, D.C.
Steven A. Musher
Associate Chief Counsel
International
Internal Revenue Service
Washington, D.C.
(San Francisco)
Michael A. DiFronzo
Deputy Associate Chief Counsel
(International)
Internal Revenue Service
Washington, D.C.
(New York City)
Joy C. Spies
Tax Attorney Advisor
(Passthroughs & Special Industries)
Internal Revenue Service
Washington, D.C.
(Chicago)
Christopher T. Kelley
Special Counsel to the Associate Chief Counsel
(Passthroughs & Special Industries)
Internal Revenue Service
Washington, D.C.
Jackie S. Levinson
Special Counsel to the Associate Chief Counsel
(International)
Internal Revenue Service
Washington, D.C.
(Chicago)
Dianna Miosi
Special Counsel to the Associate Chief Counsel
(Passthroughs & Special Industries)
Internal Revenue Service
Washington, D.C.
(New York City & San Francisco)
Corporate Tax Management:
Avi Abergel
Managing Director, Finance Group
Head of Global Tax Planning
Blackstone, Inc.
New York City
(New York City)
Wendy E. Aitken
Tax Director, Pass Thru Entities
The Fremont Group
(San Francisco)
Kenneth F. Barkoff
Senior Vice President and Director of Taxation
AllianceBernstein L.P.
New York City
(New York City)
David K. Burton
Managing Director & Senior Tax Counsel
GE Energy Financial Services
Stamford, Connecticut
(New York City)
Linda A. Klang
Senior Vice President
Lehman Brothers Holdings Inc.
Jersey City, New Jersey
(New York City & San Francisco)
David C. Link
Senior Tax Counsel
Cargill, Incorporated
Minneapolis
(Chicago)
Scott Naatjes
Vice President, Global Tax and Customs
Cargill, Incorporated
Wayzata, Minnesota
(San Francisco)
Daniel J. Widawsky
Managing Director
Citadel Investment Group, L.L.C.
Chicago
(Chicago)
Outside Counsel:
Jennifer H. Alexander
Deloitte Tax LLP
Washington, D.C.
(San Francisco)
Joan C. Arnold
Pepper Hamilton LLP
Philadelphia
(San Francisco)
Sheldon I. Banoff
Katten Muchin Rosenman LLP
Chicago
(Chicago & New York City)
Andrew N. Berg
Debevoise & Plimpton LLP
New York City
(New York City)
John A. Biek
Neal, Gerber Eisenberg LLP
Chicago
(Chicago)
Kimberly S. Blanchard
Weil, Gotshal & Manges LLP
New York City
(New York City)
Joseph M. Calianno
Grant Thornton LLP
Washington, D.C.
(Chicago)
Linda E. Carlisle
White & Case LLP
Washington, D.C.
Paul D. Carman
Chapman & Cutler LLP
Chicago
(Chicago)
Terence Floyd Cuff
Loeb & Loeb LLP
Los Angeles
(San Francisco)
Jasper L. Cummings, Jr.
Alston & Bird LLP
Raleigh, North Carolina
(Chicago)
Jeffrey G. Davis
Mayer Brown LLP
Washington, D.C.
Michael J. Desmond
Bingham McCutchen LLP
Washington, D.C.
(Chicago)
Julie A. Divola
Pillsbury Winthrop Shaw Pittman LLP
San Francisco
(San Francisco)
Daniel A. Dumezich
Mayer Brown LLP
Chicago
(Chicago)
Miriam L. Fisher
Morgan, Lewis & Bockius LLP
Washington, D.C.
(Chicago)
Michael G. Frankel
Ernst & Young LLP
Miami
(San Francisco)
Steven G. Frost
Chapman & Cutler LLP
Chicago
(Chicago)
James P. Fuller
Fenwick & West LLP
Mountain View
(New York City & San Francisco)
Phillip Gall
Deloitte Tax LLP
New York City
(New York City)
Gregory W. Gallagher
Kirkland & Ellis LLP
Chicago
(San Francisco)
Todd D. Golub
Baker & McKenzie LLP
Chicago
(Chicago)
Armando Gomez
Skadden, Arps, Slate, Meagher & Flom LLP
Washington, D.C.
(San Francisco)
Adam M. Handler
PricewaterhouseCoopers LLP
Los Angeles
(San Francisco)
Hal Hicks
Skadden, Arps, Slate, Meagher & Flom LLP
Washington, D.C.
(Chicago & San Francisco)
Michael Hirschfeld
Dechert LLP
New York City
(New York City)
Barksdale Hortenstine
Ernst & Young LLP
Houston
(San Francisco)
Gary R. Huffman
Bingham McCutchen LLP
Washington, D.C.
(Chicago & New York City)
Barbara T. Kaplan
Greenberg Traurig, LLP
New York City
(New York City)
Donald L. Korb
Sullivan & Cromwell LLP
Washington, D.C.
(New York City)
Paul F. Kugler
KPMG LLP
Washington, D.C.
(San Francisco)
Carolyn Joy Lee
Jones Day
New York City
(New York City & San Francisco)
David F. Levy
Skadden, Arps, Slate, Meagher & Flom LLP
Chicago
(Chicago & San Francisco)
Richard M. Lipton
Baker & McKenzie LLP
Chicago
(San Francisco)
Karen Lohnes
PricewaterhouseCoopers LLP
Washington, D.C.
(San Francisco)
James M. Lowy
Ernst & Young LLP
San Francisco
(San Francisco)
Todd F. Maynes
Kirkland & Ellis LLP
Chicago
(Chicago)
William S. McKee
Bingham McCutchen LLP
Washington, D.C.
(New York City)
William F. Nelson
Bingham McCutchen LLP
Washington, D.C.
(New York City)
William P. O'Shea
Deloitte Tax LLP
Washington, D.C.
(San Francisco)
Pamela F. Olson
Skadden, Arps, Slate, Meagher & Flom LLP
Washington, D.C.
(Chicago)
Paul W. Oosterhuis
Skadden, Arps, Slate, Meagher & Flom LLP
Washington, D.C.
(New York City)
Stephen L. Owen
DLA Piper LLP (US)
Washington, D.C. and Baltimore
(Chicago)
Martin D. Pollack
Weil, Gotshal & Manges LLP
New York City
(New York City)
Sanford C. Presant
Greenberg Traurig, LLP
Santa Monica
(New York City)
Loretta R. Richard
Ropes & Gray LLP
Boston
(San Francisco)
Donald E. Rocap
Kirkland & Ellis LLP
Chicago
(New York City)
Stephen D. Rose
Munger, Tolles & Olson LLP
Los Angeles
(Chicago & San Francisco)
Stuart L. Rosow
Proskauer Rose LLP
New York City
Blake D. Rubin
McDermott Will & Emery LLP
Washington, D.C.
(Chicago & San Francisco)
Bahar A. Schippel
Snell & Willmer L.L.P.
Phoenix
(Chicago)
David H. Schnabel
Debevoise & Plimpton LLP
New York City
(Chicago & San Francisco)
Sean Shimamoto
Skadden, Arps, Slate, Meagher & Flom LLP
Washington, D.C.
(Chicago & San Francisco)
Dean S. Shulman
Skadden, Arps, Slate, Meagher & Flom, LLP
New York City
(Chicago)
Mark J. Silverman
Steptoe & Johnson LLP
Washington, D.C.
(New York City & San Francisco)
Bryan C. Skarlatos
Kostelanetz & Fink LLP
New York City
(New York City)
Eric B. Sloan
Deloitte Tax LLP
New York City
(Chicago & New York City)
Eric Solomon
Ernst & Young LLP
Washington, D.C.
(New York City)
James B. Sowell
KPMG LLP
Washington, D.C.
(New York City)
Lewis R. Steinberg
Managing Director
Global Head Strategic Solutions Group
UBS Securities LLC
New York City
Steven M. Surdell
Ernst & Young LLP
Chicago
(Chicago)
Linda Z. Swartz
Cadwalader, Wickersham & Taft LLP
New York City
(New York City)
Willard B. Taylor
Sullivan & Cromwell LLP
New York City
(New York City)
Carol P. Tello
Sutherland Asbill & Brennan LLP
Washington, D.C.
(Chicago)
Keith E. Villmow
Kirkland & Ellis LLP
Chicago
(Chicago)
Anna Voortman
Ernst & Young LLP
Chicago
(San Francisco)
William P. Wasserman
Consultant to Ernst & Young LLP
Los Angeles
(New York City & San Francisco)
R. David Wheat
Thompson & Knight LLP
Dallas
(San Francisco)
Andrea Macintosh Whiteway
McDermott Will & Emery LLP
Washington, D.C.
(Chicago and New York City)
B. John Williams, Jr.
Skadden, Arps, Slate, Meagher & Flom LLP
Washington, D.C.
(San Francisco)
Fred T. Witt
Deloitte Tax LLP
Phoenix
(Chicago)
Diana L. Wollman
Sullivan & Cromwell LLP
New York City
(New York City)
Philip B. Wright
Bryan Cave LLP
St. Louis
(Chicago & San Francisco)
Program Attorney: Stacey L. Greenblatt
Program Schedule
Day One: 9:00 a.m. – 6:00 p.m.
Morning Session: 9:00 a.m. – 12:15 p.m.
9:00 Partnership Basis Issues Including Allocating Liabilities Among Partners
Relevance of basis in partnership interest; equality of inside and outside basis; Sections 705
and 752; partnership interest distinguished from partner’s capital account; effects of
contributions; effects of liabilities; effects of Peracchi; effects of income and loss; effects of
distributions; ordering and timing rules; allocation schemes for recourse and nonrecourse
liabilities; bottom-dollar guarantees; capital account deficit restoration obligations; capital
contribution obligations; final regulations for DRE’s; contingent liabilities and ”Son of
Boss“ regulations; recent Notices.
CHI: Stephen L. Owen
NYC: William F. Nelson
SF: Michael G. Frankel
10:00 Networking Break
10:15 Drafting Partnership Agreements for Substantial Economic Effect
Section 704(b); basic principles and relationship with Section 752; regulatory standards for
allocations; substantial economic effect; deficit restoration obligations and other recourse
assumptions; capital account maintenance; revaluations and book-ups; nonrecourse
deductions and minimum gain attributable to nonrecourse liabilities; minimum gain
chargebacks; partner nonrecourse debt; alternative test for economic effect; economic
equivalence test; substantiality and related persons; PIP; ”targeted“ versus ”layercake“
allocations; at risk and deficit restoration agreement; regulations on ”non-tax basis
liabilities“; tiered partnerships; joint ventures with tax-exempt investors; Series LLCs;
planning strategies.
CHI: Todd D. Golub, David H. Schnabel
NYC: Sanford C. Presant
SF: Karen Lohnes, David H. Schnabel
11:30 Non-Compensatory Partnership Options, Convertibles, Recapitalizations and
Similar Transactions
Taxability of issuance, exercise and lapse of noncompensatory partnership options;
definition of option, including options, warrants and conversion features of debt or preferred
equity instruments; Section 704(b) and Section 704(c) consequences; basis issues;
distinguishing compensatory from noncompensatory transactions; Section 708 and Section
752 impacts; proposed and final (hopefully) regulations; planning opportunities and
strategies.
CHI: Gary R. Huffman, Joy C. Spies [Tax Attorney Advisor (Passthroughs & Special
Industries), Internal Revenue Service]
NYC: Gary R. Huffman, Dianna Miosi [Special Counsel to the Associate Chief Counsel
(Passthroughs & Special Industries), Internal Revenue Service]
SF: David H. Schnabel, Dianna Miosi [Special Counsel to the Associate Chief Counsel
(Passthroughs & Special Industries), Internal Revenue Service]
12:15 “Picnic Lunch” Program: Partnership and LLC Compensatory Interests
Including Options
Capital interests; profits interests; restricted versus unrestricted, Section 83(b) election;
options; warrants; equity appreciation rights; consequences to all parties; gray areas; recent
IRS releases; proposed regulations dealing with service partners; new focus on earned
interests and possible “carried interest” legislation; effects of recent statutory amendments,
proposed, temporary and new final regulations; Sections 409A and 457A.
CHI: Sheldon I. Banoff, Bahar A. Schippel, Helen H. Morrison [Deputy Benefits Tax
Counsel, Department of the Treasury], Robert J. Crnkovich [Senior Counsel (Tax Policy),
Department of the Treasury]
NYC: Sheldon I. Banoff, Linda Z. Swartz, Helen H. Morrison [Deputy Benefits Tax
Counsel, Department of the Treasury], Robert J. Crnkovich [Senior Counsel (Tax Policy),
Department of the Treasury]
SF: Julie A. Divola, Paul F. Kugler, Helen H. Morrison [Deputy Benefits Tax Counsel,
Department of the Treasury], Robert J. Crnkovich [Senior Counsel (Tax Policy),
Department of the Treasury]
Afternoon Session: 2:30 p.m. – 6:00 p.m.
2:30 Implications of Section 704(c) for Negotiating a Partnership Agreement
Book/tax disparities; statutory framework; mechanics of Section 704(c) and reverse Section
704(c) allocations; final and proposed regulations; the traditional method; ceiling limitation
principles; traditional method with curative allocations; remedial allocation method; other
reasonable allocation methods; anti-abuse principles; Section 704(c) in tiered structures and
in mergers and divisions; Notice 2009-70; remedials and related parties; planning concepts.
CHI: Steven G. Frost, Andrea Macintosh Whiteway
NYC: Andrew N. Berg, Andrea Macintosh Whiteway
SF: Terence Floyd Cuff, Barksdale Hortenstine, Robert J. Crnkovich [Senior Counsel
(Tax Policy), Department of the Treasury]
3:45 Networking Break
4:00 Formation of Partnerships Including Joint Ventures of Operating Businesses
Treatment as partnership versus other arrangements; contributions of property, rights to use
property and services; planning for transfers of intangibles under Section 197 in light of the
final regulations, start-up costs, and deductibility of liabilities; contingent liabilities and
trade or business exception to regulations; introduction to taxable transfers; partnership
accounting methods, periods and issues; planning strategies.
CHI: Keith E. Villmow
NYC: Donald E. Rocap
SF: Gregory W. Gallagher
5:00 Practical Problems and Challenges in Forming and Operating a Joint Venture: A
Panel of Inside Tax Counsel
CHI: Henry A. Orphys, Robert M. Gordon, David C. Link, Daniel J. Widawsky
NY: Clifford M. Warren, Avi Abergel, Kenneth F. Barkoff, Linda A. Klang
SF: Henry A. Orphys, Wendy E. Aitken, Linda A. Klang, Scott Naatjes
6:00 Adjourn
Day Two: 9:00 a.m. – 6:00 p.m.
Morning Session: 9:00 a.m. – 12:00 p.m.
9:00 Transactions Between Partner and Partnership – Sections 707, 704(c)(1)(B) and
737
Planning examples; statutory framework; payments to a partner other than in capacity as a
partner; disguised sales; exit strategy planning techniques; theory of Section 707(a)(2)
regulations; nonsimultaneous transfers; mixing bowl transactions; entrepreneurial risk
situations; Times Mirror/Chandler I and II; leveraged partnerships; Arco/Arch Coal;
Tribune/Newsday/Comcast and others; In Re: G-I Holdings, Inc., et al. (the GAF case);
contributions of encumbered property; withdrawal of proposed Regulations on disguised
sales of partnership interests; Section 737; combined impact of Section 737, Section
704(c)(1)(B), the disguised sale regulations, and the Section 1.701-2 anti-abuse rules; recent
IRS Notices, FSAs and CCAs.
CHI, NYC & SF: Louis S. Freeman
10:00 Guaranteed Payments
Distinguished from other payments; effect on distributive shares; treatment as “interest”;
cross-border effects; Rev. Rul. 2007-40; deduction versus capitalization; distinguishing
preferred returns; reasonableness; accrued but unpaid; retroactive approval; planning ideas.
CHI & NYC: Eric B. Sloan, Lewis R. Steinberg
SF: Jennifer H. Alexander, Lewis R. Steinberg
10:45 Networking Break
11:00 Sale, Exchange or Other Disposition of Partnership Interests; Partnership
Distributions; Partnership Termination
Sections 741 and 751; unrealized receivables; inventory items; effect of liabilities; current
distributions; distributions in complete liquidation of partner interest; post-distribution
consequences to distributee; distributions involving partnership ordinary income property;
partnership terminations and consequences; the final Section 708 termination regulations
including planning strategies; planning to avoid termination.
CHI & SF: Stephen D. Rose
NYC: Michael Hirschfeld
12:00 “Picnic Lunch” Program: Interesting Partnership Transactions of the Past Year
CHI: Linda E. Carlisle, Paul D. Carman, Philip B. Wright
NYC: Linda E. Carlisle, Phillip Gall, Diana L. Wollman
SF: Linda E. Carlisle, R. David Wheat, Philip B. Wright
Afternoon Session: 2:00 p.m. – 6:00 p.m.
2:00 Adjustments to the Basis of Partnership Assets (Sections 734, 743 and 754)
Including Effects of 2004 Jobs Act Amendments
Transfer of partnership interest; distribution of partnership assets; distribution to transfereepartner; effect of Section 1060; effect of Section 197 and the final regulations; planning
opportunities and techniques involving making or not making the Section 754 election; final
regulations under Section 755; effects of 2004 Jobs Act amendments including mandatory
adjustments for built-in losses.
CHI: Stuart L. Rosow, Dean S. Shulman
NYC & SF: Stuart L. Rosow, William P. Wasserman
3:00 Networking Break
3:15 Partnership Mergers and Divisions
Final regulations; forms of partnership mergers; Assets-Over Form; Assets-Up Form;
Interest-Over Form; effects under Section 752; buyout of a partner; merger or division as
part of a larger transaction; forms of divisions; consequences under Sections 704(c)(1)(B)
and 737.
CHI & SF: Blake D. Rubin
NYC: William S. McKee
4:00 Hot Topics in Partnership Taxation: The Government Perspective
Recent and pending developments in partnership taxation featuring present and recently
“retired” Treasury and IRS representatives.
CHI: Curtis G. Wilson [Associate Chief Counsel (Passthroughs & Special Industries),
Internal Revenue Service],Jeffrey Van Hove [Deputy Tax Legislative Counsel (Regulatory
Affairs), Department of the Treasury], Robert J. Crnkovich [Senior Counsel (Tax Policy),
Department of the Treasury], Steven G. Frost
NYC: Curtis G. Wilson [Associate Chief Counsel (Passthroughs & Special Industries),
Internal Revenue Service], Jeffrey Van Hove [Deputy Tax Legislative Counsel (Regulatory
Affairs), Department of the Treasury], Robert J. Crnkovich [Senior Counsel (Tax Policy),
Department of the Treasury], James B. Sowell
SF: Curtis G. Wilson [Associate Chief Counsel (Passthroughs & Special Industries),
Internal Revenue Service], Jeffrey Van Hove [Deputy Tax Legislative Counsel (Regulatory
Affairs), Department of the Treasury], Robert J. Crnkovich [Senior Counsel (Tax Policy),
Department of the Treasury], William P. O’Shea
5:00 Tax Credit Partnerships: Energy Credit Deals
Section 45 production tax credit (PTC) for wind, biomass, geothermal and other renewable
resources; Section 48 investment tax credit (ITC) for solar; election to claim ITC instead of
PTC; Treasury grants in lieu of tax credits; partnership “flip” structures; partnership
allocation issues for PTCs and ITCs, including minimum allocations; treatment of
depreciation; pre-tax profit requirement; unrelated person requirement; restrictions on puts
and calls, including fixed price purchase options; passive loss rules; Washington update.
CHI & SF: Jeffrey G. Davis, Sean Shimamoto, Christopher T. Kelley [Special Counsel to
the Associate Chief Counsel (Passthroughs & Special Industries), Internal Revenue Service]
NYC: David K. Burton, Jeffrey G. Davis, Christopher T. Kelley [Special Counsel to the
Associate Chief Counsel (Passthroughs & Special Industries), Internal Revenue Service]
6:00 Adjourn
Day Three: 8:30 a.m. – 5:00 p.m.
Morning Session: 8:30 a.m. – 12:00 p.m.
8:30 Economic Substance – Understanding the Limits; Anticipated Effects of
Codification; Partnership, Anti-Abuse Rules, Tax Shelters, Recent Tax Shelter Cases,
Ethical Considerations – Distinguishing Good Tax Planning from Aggressive Tax
Advice and Criminal Tax Evasion
The impact on partnership and other transactions of recent case law, 2004 Jobs Act
amendments, and administrative developments relating to economic substance and tax
shelters; infiltration of the pending codification of the economic substance doctrine; the
application of various regulatory anti-abuse rules; new regulations on tax preparer
standards; developing interpretations of the attorney-client privilege and work product
doctrine; Circular 230.
CHI: Jasper L. Cummings, Jr., Michael J. Desmond, Pamela F. Olson, Jeffrey Van Hove
[Deputy Tax Legislative Counsel (Regulatory Affairs), Department of the Treasury]
NYC: Mark J. Silverman, Bryan C. Skarlatos, Eric Solomon, Jeffrey Van Hove [Deputy
Tax Legislative Counsel (Regulatory Affairs), Department of the Treasury]
SF: Armando Gomez, Richard M. Lipton, Mark J. Silverman, Jeffrey Van Hove [Deputy
Tax Legislative Counsel (Regulatory Affairs), Department of the Treasury]
10:00 Hot Audit/Controversy Issues, Dispute and Litigation Strategies – Partnership
Tax Cases
Effects of TEFRA; how to handle an IRS controversy; alternative ways to settle; possibility
of fresh look from Appeals; IRS key issues for partnerships; litigating a partnership dispute.
CHI: Daniel A. Dumezich, Miriam L. Fisher
NYC: Barbara T. Kaplan, Donald L. Korb
SF: Loretta R. Richard, B. John Williams, Jr.
10:45 Networking Break
NEW SESSION:
11:00 Advanced Section 752: What’s a Tax Planner to Do?
Building on the introduction to Section 752 (on Day One) and exploring the complexities
arising from the Section 752 regulations and the perils and opportunities they create; recent
transactions and cases in which the Section 752 regulations feature prominently.
CHI & NYC: Eric B. Sloan, Lewis R. Steinberg
SF: Jennifer H. Alexander, Lewis R. Steinberg
12:00 “Picnic Lunch” Program: The Troubled Partnership – Workouts and Debt
Restructurings
Distressed partnerships and the effect of debt modifications, debt workouts, and partnership
bankruptcy proceedings on partners and creditors. Debt modification and amount and timing
of cancellation of indebtedness (COD) income; differences between discharge/workouts of
recourse and non-recourse indebtedness; effect of COD income recognized by a disregarded
entity; allocation of COD income; strategies to mitigate the effects of COD income; partial
relief from COD income as provided in the 2009 Stimulus legislation (the application of
these rules to partnerships raises many difficult questions); passive activity and at-risk
implications; Rev. Proc. 2009-37; partner-level deductions for worthlessness and
abandonment; timing of losses for lenders.
CHI: David F. Levy, Todd F. Maynes, Fred T. Witt, Jeffrey Van Hove [Deputy Tax
Legislative Counsel (Regulatory Affairs), Department of the Treasury]
NYC: Andrew N. Berg, Martin D. Pollack, James B. Sowell, Jeffrey Van Hove [Deputy
Tax Legislative Counsel (Regulatory Affairs), Department of the Treasury]
SF: Adam M. Handler, David F. Levy, James M. Lowy, Jeffrey Van Hove [Deputy Tax
Legislative Counsel (Regulatory Affairs), Department of the Treasury]
Afternoon Session: 2:00 p.m. – 5:00 p.m.
2:00 State Taxation of Partnerships, Limited Liability Companies and Their Owners
SALT diversions from classic pass-through treatment; partnership-level taxes; entry-level
fees; withholding and estimated tax obligations; composite filings; non-income taxes;
partners’ tax status – individuals, trusts, corporations; allocation/apportionment; special
allocations of state-specific income; SALT and investment activities; managers’ income;
current events.
CHI: John A. Biek
NYC & SF: Linda A. Klang, Carolyn Joy Lee
2:45 International Joint Venture Issues – Outbound and Inbound General Joint
Venture Tax Issues
General review of benefits/detriments in using U.S. or foreign tax partnership vs. corporate
structure in outbound/inbound joint ventures; formation, operation and termination of joint
venture; foreign tax credit; tax treaty and Subpart F and withholding tax issues; problems
with intangible property and multi-country joint ventures, including Section 894(c), final
regulations under Section 894, foreign partnership reporting rules; effects of 2004 Jobs Act
amendments.
“Check-the-Box” Planning
Current planning techniques and issues under “Check-the- Box” regulations, including
collateral consequences (e.g. branch accounting for foreign currency under Section 987,
U.S. withholding tax regulations, conversion issues and Rev. Ruls. 99-5 and 99-6, and
impact on treaty entitlements); harmonization of foreign tax planning with these rules;
planning opportunities with hybrids, check and sell issues.
CHI: Joseph M. Calianno, Hal Hicks, Steven M. Surdell, Carol P. Tello, Jackie S.
Levinson [Special Counsel to the Associate Chief Counsel (International), Internal Revenue
Service]
NYC: Kimberly S. Blanchard, James P. Fuller, Paul W. Oosterhuis, Willard B. Taylor,
Michael A. DiFronzo [Deputy Associate Chief Counsel (International), Internal Revenue
Service]
SF: Joan C. Arnold, James P. Fuller, Hal Hicks, Anna Voortman, Steven A. Musher
[Associate Chief Counsel (International), Internal Revenue Service]
3:45 Networking Break
4:00 International Joint Venture Issues – Outbound and Inbound General Joint
Venture Tax Issues (continued)
“Check-the-Box” Planning (continued)
5:00 Adjourn