For our weekly SoCal IP Institute meeting on Monday, July 15th, 2019, we will discuss the following case.
Spireas v. Commissioner of Internal Revenue, (3d Cir. 2018)
Spireas earned $40 million in royalties from licensed technology from 2007-2008. Royalties paid under a license agreement are generally taxed as ordinary income at 35 percent. Spireas claimed capital gains treatment (15 percent) under 26 U.S.C. 1235(a), and thus paid much less in taxes for the royalties it received. The IRS notified Spireas it owed $5.8 million in deficiency for the two tax years. The Tax Court and Third Circuit agreed with the IRS.
We will also discuss an article related to the tax implications of R&D Tax Credits and Payroll (article here).
All are invited to join us on Monday July 15th, 2019, at noon in our Westlake Village office. This activity is approved for 1 hour of MCLE credit. If you will be joining us, please RSVP to Anneliese Lomonaco by 9 am Monday morning.