Bloomberg Tax

Latest Tax Journals

How Partnerships Can Cash in on Energy Credit Transfers

Many have described the Inflation Reduction Act of 2022 (the “IRA”) as a game-changer for the renewable energy industry and its efforts to reduce carbon emissions and combat climate change. It is true that the IRA introduced a new sweeping set of tax credits and other incentives, or in some cases updates and revisions to existing incentives, that can make renewable energy the most cost-effective choice for businesses and property owners. However, those tax incentives need to be packaged the right way so that developers and other stakeholders in the renewable energy industry can effectively monetize the benefits.

If You Buy Pension Risk Transfers, Don’t Buy a Pig in a Poke

Congress, last year, directed the Department of Labor’s Employee Benefits Security Administration (the “Department”) to review its position on fiduciary responsibilities connected to pension risk transfers under the SECURE 2.0 Act—Division T of the Consolidated Appropriations Act, 2023—at Section 321. Last month, the Department issued a “Consultation Paper on Interpretive Bulletin 95-1” as part of its discussions with the ERISA Advisory Council (and the public) regarding those responsibilities. According to the Department, last year, pension risk transfer purchases reached an all-time high with nearly $52 billion in transactions, owing to recent market conditions favorably impacting the affordability of de-risking activities in terms of both plan funding and transaction cost, as well as rising interest rates that have made annuity purchase transactions less expensive.

How US Employers Provide Health Plans to Puerto Rico Employees

US companies operating in Puerto Rico generally can offer their local employees the same health care benefits they offer their US employees but need to consider differences in the tax rules and be aware of tax savings opportunities, says Carlos Gonzalez of

ERISA Allows Plan Fiduciaries to Pursue More Than Just Money

The Wagner Law Group’s Michael Schloss, who spent more than 30 years at DOL enforcing ERISA, reflects on retirement policies that except ERISA’s primary fiduciary requirements for tax-subsidized plan assets while promoting employee stock ownership as well as environmental and social goals, and barring investments in firms tied to U.S. adversaries.

CRAT Tax Scheme on Appreciated Property Sales Brings Big Losses

A tax elimination “strategy” widely promoting the use of a charitable remainder annuity trust (CRAT) to fully escape federal income tax on the sale of appreciated property and to fund tax-free annuity payments to noncharitable beneficiaries of the CRAT has not lived up to the promises of its promoters, and instead has brought heavy legal and monetary loss to involved parties. Indeed, courts have leveled decisions against participating taxpayers and ordered that their names be disclosed to the IRS, and the Justice Department has shut down and penalized the promoters. According to the government, at least 70 CRATs have been used in this scheme, resulting in an estimated $40 million of taxable income going unreported and at least $8 million in tax revenue being lost. The IRS has these abusive arrangements on its radar screen and is conducting audits. Taxpayers should avoid the scheme at all costs.