August 27, 2012

For additional information, please contact: Grady M. Bolding 415-773-5716 Colman J. Burke 415-773-5608 Peter J. Connors 212-506-5120 Stephen J. Jackson +33 1 5353 8111 Anne-Sophie Kerfant +33 1 5353 7500 Steven C. Malvey (415) 773-5647 Alessandro Mainardi +39 02 4541 3800 John Narducci 212-506-5105 Jutta Schneider +49 69 7158 8-320 Nick Thornton +44 20 7862 4612 Eric C. Wall (415) 773-5974 George G. Wolf 415-773-5988  James M. Larkin 212-506-5256 Stephen C. Lessard 212-506-5137

IRS Issues Guidance on Outbound Transfers of Intangible Property in Asset Reorganizations

In Notice 2012-39 (the “Notice”), the IRS issued guidance announcing its intention to issue regulations with respect to certain transfers of intangible property by a U.S. corporation to a foreign corporation in a reorganization described in section 361 of the Internal Revenue Code (the “Code”), citing significant policy concerns involving certain intellectual property transfers that permit U.S. persons to repatriate earnings without U.S. income taxation. The IRS’ position in the Notice will impact repatriation planning strategies.

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