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Startup Tax Tips & Triage – Convertible Debt

Stephen Day Corporate Tax, Tax Planning, Tax Services, Tax Strategy

Investor: I’m in! But let’s do it with convertible debt. Startup CEO: But we get the money, right? Investor: Of course, this is just a way to manage risk and keep things flexible. Startup CEO: Cool! When do we get the money? VPTax: Not so fast. Although convertible debt is on occasion a preferred way to secure outside investment there …

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Tax Refunds Available for Cost Sharing Arrangements Containing Stock Base Compensation

Tom Phalen Corporate Tax, Tax Services, Tax Strategy, Taxing Times

U.S. taxpayers that reported Cost Sharing Arrangements (CSAs) on tax returns which contain stock based compensation under IRC Section 482 should consider filing amended tax returns for prior tax years. This recommendation is based upon a July 27, 2015 Tax Court case, Altera Corp. v. Commissioner, where the court held that the tax regulations requiring stock based compensation to be …