Jonathan D. Lockhart Jonathan D. Lockhart

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Jonathan Lockhart focuses his practice primarily on international tax planning and controversies. Jonathan helps clients structure international acquisitions and reorganizations in a tax-efficient manner, as well as with foreign earnings repatriation, foreign tax credit planning and intellectual property migration. Read Jonathan Lockhart's full bio.

Sacked in Tax Court! Procedural Missteps by the IRS Leave the Government’s Blindside Exposed


By and on May 23, 2019
Posted In Court Procedure Matters, IRS Appeals, Trial Courts, Uncategorized

In Kearse v. Commissioner, T.C. Memo 2019-53, the Tax Court held the Internal Revenue Service (IRS) abused its discretion as part of the taxpayer’s Collection Due Process hearing (CDP hearing) because the Appeals officer failed to properly verify that the assessment of the taxpayer’s unpaid 2010 liability was preceded by a duly mailed notice of...

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Proposed BEAT Regulations | Tax-Free Transactions May Give Rise to a Liability


By , and on Dec 20, 2018
Posted In IRS Guidance, Tax Reform, Uncategorized

On December 13, 2018, US Department of the Treasury and the Internal Revenue Service (IRS) released proposed regulations for the Base Erosion and Anti-Abuse Tax (the BEAT), which was added to the Code as part of the 2017 Tax Act. The proposed regulations provide helpful guidance on a range of important topics and generally go...

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


By , , and on Sep 13, 2018
Posted In IRS Guidance, Tax Reform, Uncategorized

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...

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The New Base Erosion Minimum Tax


By , and on Jan 19, 2018
Posted In Tax Reform, Uncategorized

The recently enacted 2017 tax reform act imposes a new “base erosion and anti-abuse tax” (BEAT) on large corporations. The BEAT operates as a limited-scope alternative minimum tax, applied by adding back to taxable income certain deductible payments made to related foreign persons. Although positioned as an anti-abuse rule, the BEAT presents challenges for a...

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Offshore Voluntary Disclosure Update


By , and on Aug 10, 2016
Posted In IRS Audits, IRS Guidance, Trial Courts, Uncategorized

The Internal Revenue Service (IRS) currently offers non-compliant US taxpayers several different relief programs in which to report foreign assets and/or income and become compliant with US rules related to the disclosure of foreign assets. One option is the Offshore Voluntary Disclosure Program (OVDP).  Another is the Streamlined Filing Compliance Procedures (SFCP).  SFCP is further...

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Update on Deference to IRS Positions


By , and on Apr 20, 2016
Posted In Court Procedure Matters, IRS Guidance, Trial Courts, Uncategorized

As we discussed here, and in our recent article in The Federal Lawyer, deference to Internal Revenue Service (IRS) pronouncement is an important issue for taxpayers and their advisors. Our prior writings dealt generally with the three levels of deference in tax cases and how they have been applied by the courts. A recent Tax...

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Release of “Panama Papers” May Encourage New Wave of OVDP Submissions


By , , and on Apr 8, 2016
Posted In IRS Audits, IRS Guidance, Uncategorized

On April 3, 2016, the International Consortium of Investigative Journalists (ICIJ) indicated that it acquired sensitive documents that belonged to the Panamanian law firm, Mossack Fonseca & Co., about the offshore holdings of some of the world’s most prominent and wealthy individuals.  The leak has received substantial mainstream media coverage due to the identity of...

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IRS Requires “Whole Story” from Taxpayers Seeking to Qualify under Streamlined Filing Compliance Procedures


By and on Apr 7, 2016
Posted In IRS Audits, IRS Guidance, Uncategorized

The Internal Revenue Service (IRS) recently modified the non-willfulness certification form that individual taxpayers must submit to enroll in the streamlined filing compliance procedures (SFCP).  One requirement under the SFCP is that that the taxpayer certify that his or her failure to disclose foreign assets was not due to willful conduct.  Before the recent change,...

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