While Tax Practitioners Struggle with Muddy Guidance on Economic Substance, BNA Experts Provide Answers

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Sep 28, 2010, 05:30 ET

ARLINGTON, Va., Sept. 28 /PRNewswire-USNewswire/ -- A new IRS Code Section 7701(o) is now in place that codifies the economic substance doctrine (or "ESD"), and imposes a strict liability penalty of up to 40% for transactions lacking economic substance.  Yet increasing numbers of practitioners are spending more time evaluating their advice to clients because guidance is either lacking or unclear.

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A new September 29 webinar from BNA Tax Accounting, Codification of the Economic Substance Doctrine: Issues, Uncertainties, and Application, led by a team of tax experts from Ernst & Young, focuses on the key transactional issues presented by Section 7701(o) and how they may be evaluated and resolved, including a discussion of common transactions raising potential ESD application issues that the speakers have encountered in practice.

"This issue is of significant concern for tax advisers to corporate America, particularly in light of the 40% penalty," says BNA senior tax analyst and Managing Editor Allen Calhoun. "Not only have Treasury and the IRS offered little guidance on the interpretation and application of this new section, but how much of the case law still applies?"

In 60-90 minutes, this webinar will review Section 7701(o) (and related penalty provisions) and the relevant legislative history and discuss the application of Section 7701(o) to specific transactions.

Attendees will:

  • Understand how the ESD as codified
  • More effectively identify transactions to which Section 7701(o) may or may not be relevant, and determine its application to transactions to which it is relevant
  • Effectively evaluate the existence of any risk posed by Section 7701 to a transaction undergoing consideration

About the Speakers

Gary Vogel is part of the National Tax Department/Transaction Advisory Services practice, based in Washington, D.C. He focuses on corporate tax matters arising in domestic and cross-border transactions

Marjorie Rollinson is the National Director of International Tax Services Technical Services in Washington, D.C. Margie provides international tax planning for US multinational corporations, including foreign tax credits, controlled foreign corporations, and mergers and acquisitions.

David Garlock is a principal in the National Tax Department/Transaction Advisory Services practice, based in Washington, D.C. He focuses on financial products and instruments.

Kevin Richards is part of the National Tax Department/Joint Venture and Partnership Tax Services  practice, based in Houston, Texas. Kevin provides domestic and cross-border planning for partnerships and other joint venture arrangements, with a primary focus on real estate and oil and gas transactions.

Codification of the Economic Substance Doctrine: Issues, Uncertainties, and Application takes place September 29, 2010, from 12:30 – 2:00 pm, ET). Register for this webinar and obtain further information about CLE and CPE credits, go to http://www.bnatax.com/economic-substance-doctrine/?open&cmpid=tmtxpr2010 or call 1-800-372-1033, menu Option 6, then Option 1. The fee is $249 for BNA subscribers, $299 for nonsubscribers.

To receive automatic, email notification of upcoming BNA webinars that may be of interest to you, go to: http://www.bna.com/emailsignup.htm

About BNA Tax & Accounting Webinars

BNA Tax & Accounting is the foremost source of tax and accounting research, news, practice tools, and guidance for tax attorneys, CPAs, corporate tax managers, estate planners, and financial accountants.  Designed for today's busy practitioners, our webinars offer the same expertise and relevance that are the hallmark of all BNA Tax & Accounting resources. In just 60-90 minutes, practitioners gain in-depth knowledge on a current tax or accounting topic from experts in that area — and benefit from practical applications that can be put to work immediately. Conference attendees have the opportunity to ask the speakers questions, and may be eligible to earn CLE or CPE credits — all from the convenience of their own office or conference room.

SOURCE BNA