As part of a massive overhaul of the regulations governing our country’s financial system, Congress passed the Dodd-Frank Wall Street Reform and Consumer Protection Act (“Dodd-Frank”) in July 2010. Included in this regulation was an enhancement to the U.S. Securities & Exchange Commission (“SEC”) Whistleblower Program with the hopes that through providing financial incentives (awards), individuals would be willing to provide tips to the SEC and other regulators regarding fraud. Based on the activity of the Program and the awards provided, it appears that the Program has assisted the regulators in its attempt to protect the investors by prosecuting fraudsters.
The IRS has recently issued a ruling confirming that offshore funds can, in certain circumstances, defer incentive fees payable to U.S. asset managers. Revenue Ruling 2014-18, released by the IRS on June 10, 2014, (the “Ruling”) opens a deferred compensation pathway that has been closed since 2008. Moreover, the ruling […]
Bitcoin, the virtual currency that tech savvy consumers can use to purchase anything from the latest music on iTunes to a Lamborghini off a showroom floor, has been around since 2009 but just recently hit the radar of U.S. regulators. Recently, the IRS issued Notice 2014-21, which provides clarification on […]
A few months back I wrote about the Nelson case, a Tax Court case dealing with a U.S. individual who claimed she was a “trader” for federal income tax purposes [http://withumonwallstreet.com/2013/12/04/another-investor-in-trader-clothing/]. In that piece I suggested that the trader / investor analysis being utilized by the modern-day Tax Court had […]
Every broker or dealer (“BD”) is required to maintain a specified level of net working capital, as defined in Securities Exchange Act Rule 15c3-1. The dollar threshold is the greater of the regulatory minimum, which ranges from $5,000 to $1.5 million, or a specified percentage (generally 6-2/3) of the BD’s […]
There is one common requirement faced by every type of broker-dealer (“BD”), the concept of Regulatory Net Capital; however, depending upon the type of business the BD engages in, the thresholds could vary significantly. This article will provide an overview of some of the common types of BD and the […]
A recent Bloomberg article reported that the offshore cash hoard of U.S. multinational companies had risen by $206 billion last year as the companies continued to avoid U.S. taxation (see article here http://www.bloomberg.com/news/2014-03-12/cash-abroad-rises-206-billion-as-apple-to-ibm-avoid-tax.html). Personally, I find it amazing that the popular press and its American readership see prudent corporate tax […]