Posts tagged IRS.
On December 18, 2015, President Obama signed into law the Protecting Americans from Tax Hikes Act of 2015 (PATH Act) as part of the Consolidated Appropriations Act, 2016. The new PATH Act reforms the Foreign Investment in Real Property Tax Act of 1980 (FIRPTA). Changes to FIRPTA include increased withholding generally and a new residential withholding threshold. These and other PATH Act changes are predicted to encourage increased foreign investment in United States commercial real estate. FIRPTA is a tax law that requires foreign persons to pay United States income tax on gains ...
Posted in: FIRPTA
Tags: burr forman, Consolidated Appropriations Act, FIRPTA, Foreign Investment in Real Property Tax Act of 1980, IRS, PATH, Protecting Americans from Tax Hikes Act of 2015, securities litigation, Securities Litigation & Arbitration
FINRA issued its late-July Regulatory Notice 15-27 warning brokerage firms that inadvertent short positions or fail-to-delivers in municipal securities trading can create situations where the member-firm pays a customer substitute interest that is not tax-deductible. Firms need to ensure their supervisory and compliance systems, and just as importantly their customer communications, address those situations. Short sales of municipal securities (selling a borrowed position, and buying it in lower, later) are rare. But the IRS has held that the lender's receipt of interest ...
Posted in: FINRA
Tags: burr forman, compliance system, finra, IRS, municipal markets, municipal-securities, Regulatory Notice 15-27, Securities Litigation & Arbitration, supervisory system