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IRS SILO Settlement Initiative
On Aug. 6, 2008, the IRS announced settlement initiatives for more than 45 large corporate taxpayers that engaged in Lease-In/Lease-Out (“LILO”) or Sale-In/Lease-Out (“SILO”) transactions, which were designated as listed transactions in 2000 and 2005 respectively. About 45 corporate taxpayers received letters inviting participation in the settlement initiative. The resolution program represents the first time that LILO and SILO transactions have been the subject of a nationally coordinated taxpayer settlement initiative. The IRS is offering the initiatives, presumably based on the government-favorable decisions in BB&T Corp. v. United States, 523 F.3d 461 (4th Cir. 2008) and AWG Leasing Trust v. United States, 2008 U.S. Dist. LEXIS 42761 (N.D. Ohio May 28, 2008), in an effort to resolve the hundreds of LILO and SILO transactions currently being examined and litigated. The IRS has issued and posted to its Web site answers to questions raised by the original announcement: www.irs.gov/businesses/article/0,,id=186294,00.html. Originally given a 30-day window, taxpayers had until Oct. 5, 2008 to accept the offer.
As described in previous articles, in a LILO or SILO transaction, a U.S. taxpayer leases (LILO) or purchases (SILO) an asset from the asset owner by contributing an equity investment (typically around 20% of asset cost) and obtaining loans to finance the remainder of asset cost. The taxpayer then leases the asset back to the asset owner (as lessee) in exchange for rental payments. At the end of the lease period or earlier, the lessee generally has the right to purchase the asset for a fixed price early buyout option (“EBO”). In many transactions, the lessee economically defeases its rent and purchase option payment obligations by depositing the majority of the closing date asset sale proceeds with creditworthy banks or similar arrangements. That deposit is then pledged to the lessor as collateral to secure the lessee's payment obligations.
The Article 8 Opt In
The Article 8 opt-in election adds an additional layer of complexity to the already labyrinthine rules governing perfection of security interests under the UCC. A lender that is unaware of the nuances created by the opt in (may find its security interest vulnerable to being primed by another party that has taken steps to perfect in a superior manner under the circumstances.
Beach Boys Songs Written Decades Ago Triggered Current Quarrel With Lawyers
There's current litigation in the ongoing Beach Boys litigation saga. A lawsuit filed in 2019 against Nevada residents Mike Love and his wife Jacquelyne in the U.S. District Court for the District of Nevada that alleges inaccurate payment by the Loves under the retainer agreement and seeks $84.5 million in damages.
Major Differences In UK, U.S. Copyright Laws
This article highlights how copyright law in the United Kingdom differs from U.S. copyright law, and points out differences that may be crucial to entertainment and media businesses familiar with U.S law that are interested in operating in the United Kingdom or under UK law. The article also briefly addresses contrasts in UK and U.S. trademark law.
Strategy vs. Tactics: Two Sides of a Difficult Coin
With each successive large-scale cyber attack, it is slowly becoming clear that ransomware attacks are targeting the critical infrastructure of the most powerful country on the planet. Understanding the strategy, and tactics of our opponents, as well as the strategy and the tactics we implement as a response are vital to victory.
Transfer Tax Implications on Real Property Leases
The real property transfer tax does not apply to all leases, and understanding the tax rules of the applicable jurisdiction can allow parties to plan ahead to avoid unnecessary tax liability.