Tax Law and International Tax Law

H. David Rosenbloom contributes an essay examining United States income tax treaties as part of a commemorative publication honoring Kees van Raad's nearly five decades of teaching international tax law. The essay explores the defense and significance of U.S. tax treaty policy within the broader context of international taxation.

Courts continue to shape the boundaries of state corporate income taxation, particularly in disputes involving P.L. 86-272 – which restricts states’ authority to impose income tax on certain interstate sellers – receipts sourcing, and the classification of business income.

The Pennsylvania Department of Revenue (DOR) recently revised Corporation Tax Bulletin 2019-03, limiting its application to tax years beginning before January 1, 2025. The change creates uncertainty for corporate taxpayers that previously relied on Pennsylvania’s federal consolidated-group approach to avoid a separate state-specific Section 163(j) limitation.

Recent circuit court rulings from the Second and Fifth Circuits have reshaped the interpretation of the "limited partner" exception for self-employment tax purposes, moving away from purely legal-status definitions toward examining partners' actual roles in managing partnership businesses.

Jones Day provides insights on legal and business matters through their subscription-based communications platform. The page offers access to ESG-focused content and outlines important disclaimers regarding the use of information from their website and email communications.

The One Big Beautiful Bill Act transforms the qualified opportunity zone program by removing its 2026 expiration date and introducing enhanced incentives for long-term investments. Investors now face critical decisions about timing their 2026 gains, navigating new zone designations, and structuring funds to maximize tax benefits including a potential 30% basis increase for rural investments.

Texas Comptroller Don Huffines has issued a second executive order aimed at reducing sales and use tax burdens on healthcare technology, specifically targeting electronic health record systems, electronic medical record systems, and patient portals. The order directs amendments to existing tax rules that were written before modern healthcare technology existed, potentially offering significant relief to healthcare providers and technology vendors.

Jones Day provides insights on legal and business matters through their subscription-based communications platform. The page offers access to ESG-focused content and outlines important disclaimers regarding the use of information from their website and email communications.

The IRS and Treasury Department have issued proposed regulations addressing the allocation of deductions to foreign-source income under Section 951A, while recent Tax Court decisions clarify critical issues surrounding the Section 245A dividends-received deduction, consolidated return consents, and penalty assessment procedures. These developments carry significant implications for multinational corporations navigating foreign tax credit limitations and domestic loss calculations.

A New York Court of Claims judge has ordered substantial revisions to how New York City administers its Pied-à-Terre tax surcharge, canceling previously issued notices and shifting the burden of proof to the Department of Finance. The ruling requires individualized determinations before notices can be sent and eliminates the controversial exemption application process that had confused thousands of property owners. While the decision doesn't strike down the PAT law itself, it fundamentally restructures

While those upward bracket shifts may provide meaningful tax savings on higher-value properties, Washington’s Real Estate Excise Tax (“REET”) structure remains one of the most closely watched elements of transactional planning for commercial and residential property owners and developers. Because Washington applies a tiered, progressive REET rate system for real estate sales, alongside strict rules governing the transfer of controlling interests in entities that own real property, even minor statutory adjustments can drastically alter the economics of a transaction if deal timing or contract mechanics are mishandled.

A New York court has temporarily halted the implementation of New York City's pied-à-terre tax, ruling that the city's notices to homeowners were arbitrary and violated due process rights. The judge ordered the city to restart the entire rollout process while separate lawsuits challenge the tax's legality itself. Despite the stay, property owners who received notices are advised to continue filing for exemptions pending further court guidance.