Wednesday, May 13, 2009

Treasury Releases General Explanations FY 2010 Revenue Proposals

On May 11, 2009, the U.S. Treasury Department announced the release of the General Explanations of the Obama Administration's Fiscal Year Revenue Proposals (the "Greenbook") to provide details of plans to, among other things, close "unfair corporate loopholes" in the tax system, including closing the "check-the-box" loophole, ending tax preferences for international investments, and closing domestic tax loopholes and increasing domestic compliance. The Greenbook describes in greater detail how the Administration plans to tax carried interest as ordinary income (pg. 23), reform the business entity classification rules for foreign entities (pg. 28), prevent the avoidance of dividend withholding taxes (pg. 37), and require ordinary tax treatment for certain dealers of equity options and commodities (p. 110). The full text of the Greenbook is available here.