Mr. Birnkrant’s practice focuses on transfer pricing matters and U.S. federal income taxation of domestic and cross-border business transactions.
Mr. Birnkrant advises multinationals on structuring cross-border transactions and operations to minimize the associated tax burden. Examples include planning for acquisitions and dispositions of U.S. and foreign business operations; structuring the financing, development and ownership of intellectual property; and reorganizing cross-border business operations. He also advises on all aspects of transfer pricing, and the OECD has invited him to participate in its Transfer Pricing Experts consultations.
Mr. Birnkrant also represents taxpayers in disputes with the IRS, including in IRS examinations, appeals and competent authority proceedings. He has represented taxpayers in proceedings that resulted in the IRS withdrawing adjustments that were proposed for Tier 1 issues and withdrawing adjustments that would have resulted in substantial compliance penalties. In addition, he has helped multinationals secure innovative APAs that satisfy both their business objectives and the requirements of the relevant tax authorities.
- Secured the first bilateral advance pricing agreement to cover all of the imports of a U.S. subsidiary of a major Japanese multinational; in addition to specifying the methodology for examining the pricing in the subsequent years, it resolved contentious disputes for six prior open years.
- Represented a U.S. multinational in securing unilateral advance pricing agreements that provided transfer pricing certainty for transactions with its Irish manufacturing subsidiary and European distribution subsidiaries.
- Represented a variety of multinationals based both inside and outside of the United States in securing bilateral advance pricing agreements for transaction flows between the U.S. taxpayer and its affiliates in other countries, including Japan, Germany, Mexico and Canada.
- Persuaded an IRS appeals officer to withdraw the entire $240 million adjustment that the IRS exam team proposed with respect to proprietary technology made available pursuant to the implementation of a cost-sharing agreement between United States and European affiliates.
- Persuaded an IRS appeals officer to withdraw all of the $31 million of adjustments that the IRS examination team had proposed for the U.S. subsidiary of a large Japanese multinational and the accompanying transfer pricing penalty that IRS management had approved.
- Planned the tax-efficient restructuring of U.S. operations and the transfer of the U.S. assets of a Japanese multinational to enable those operations and assets to be included in a newly formed joint-venture corporation that is managed and controlled outside the United States.
"The Service's Approach to Transfer Pricing Takes a Drubbing from the Tax Court in VERITAS," Journal of Taxation, April 2010.
"Cost Sharing Temporary Regulations Bring Changes," Journal of Taxation, May 2009.
"Fixing the Black Box: The OECD Proposal to Amend the Model Treaty to Improve the Mutual Agreement Procedure," Tax Management International Journal, December 8, 2006.
December 8, 2006
"The IRS Issues Proposed Cost Sharing Regulations," Corporate Business Taxation Monthly, January 2006.
- Chair of the Tax Treaty Subcommittee of the Taxation Committee of the United States Council for International Business
- Member of the Board of Advisors of the Journal of International Taxation
- Member of the Thomson West Tax Advisory Board
- Member of the Washington International Tax Study Group
- Fellow of the American College of Tax Counsel