The secret of getting ahead is getting started. The secret of getting started is breaking your complex overwhelming tasks into small manageable tasks, and then starting on the first one.

Mark Twain

What’s New at IIC

IIC, Inc. Analyzes New Cost Sharing Regulations 

IIC Inc. has analyzed the IRS’s temporary regulations relating to cost sharing arrangements (§ 1.482-7T).  Effective January 5, 2009, these temporary regulations build upon the proposed regulations from 2005 and contain a number of methodological, terminological and administrative changes from the previous cost sharing regulations which have been in place since 1995.  IIC, Inc. has developed a brief presentation providing further analysis of the new temporary cost sharing regulations. Read more

Estimating Damages from Loss of Business

IIC, Inc., recently estimated the damages resulting from a loss of business stemming from an alleged breach of contract between two firms in the equipment leasing industry.  The alleged breach of contract was between an equipment leasing company and a company that served as one of its sources of funding.    Read more

IIC, Inc. Consulted on Policy regarding Opening the Strategic Petroleum Reserve

Peter K. Ashton, President of IIC, Inc., has been providing economic and policy analysis in the ongoing debate as to whether opening the Strategic Petroleum Reserve (SPR) would help mitigate escalating oil and gasoline prices.  Mr. Ashton indicated that the impact of opening the SPR would be extremely limited at best, and more likely than not, would have no impact on prices due to the fact that market fundamentals of short term supply and demand are not driving the current escalation in prices. Read more

OECD Revises Transfer Pricing Guidelines

This past summer the OECD completed revisions to its transfer pricing guidelines and in particular Chapters I-III covering methods and comparability as well as the new Chapter IX on transfer pricing and business restructurings. Changes relating to methods include reliance on the “most appropriate method” as the basis for selecting an arm’s-length approach which is similar but slightly different in concept to the U.S.’s “best method.”  Read more

Pitching Corporate Tax Reform to Business

In a recent speech before the U.S. Chamber of Commerce, President Obama discussed a key responsibility of government:  breaking down barriers that limit the successfulness of U.S. businesses.  One area the President focused on was alleviating a “burdensome corporate tax code with one of the highest rates in the world.” Read more

What’s New is Old News: Speculators Driving Up the Price of Gasoline – AGAIN

Gasoline prices are about to hit $3 per gallon nationwide again – the first time since October 2008.  Typically, gasoline prices decline during the fall months after the peak driving season has ended, yet this fall, gasoline prices have risen over $0.30 per gallon or 11 percent.  At the same time crude oil prices have risen by even more (by 18 percent) and are at two year highs suggesting that additional gasoline price increases are impending.  So what is the cause?  Read more

Coal to Liquids (Alternative Fuel)

IIC, Inc. recently completed an analysis of the impact of oil price volatility on the financial viability of investment in coal to liquids technology. IIC, Inc. collected information about coal to liquids plant investments and normalized certain assumptions in the financial models so that they could be evaluated on a comparative basis. This information was used to develop a range of crude oil prices for which a coal to liquids investment would yield the required rate of return. Read more

Testimony on Just and Reasonable Rates for Pipelines

IIC, Inc. recently provided expert testimony regarding just and reasonable rates for a major refined products pipeline system in California.  Peter K. Ashton, cofounder and principal of IIC, Inc., provided testimony on the cost of service and achieved return earned by the pipeline owner, demonstrating that the rates being charged were not just and reasonable and furthermore, that the pipeline’s request for rate increases could not be justified.  Read more

Oil Pipeline Rate Regulation

IIC, Inc. recently assisted one of its clients settle several outstanding claims relating to rates charged on various interstate petroleum pipelines. IIC, Inc. developed a comprehensive cost of service model indicating that the rates charged by the pipeline company unjust and unreasonable. Read more

Analysis of the New §1.482 Services Regulations
The Internal Revenue Service revised services regulations that provide new transfer pricing methods for controlled service transactions and include a revised cost safe harbor called the Services Cost Method (SCM). This brief presentation provides a helpful overview to the changes in the regulations for tax planners and examiners. Read more

Federal Minimum Wage Increase
IIC’s research is looking at whether increases in the minimum wage requirement and changes in health care coverage have had a disproportional impact on small business owners. Read more