Financial Products & Services

The tax professionals in our Financial Products & Services practice are dedicated to serving businesses and individuals who rely on financial products and operate within the financial services sector. With decades of experience in financial products, our advisors help clients in multiple industries manage risk, overcome compliance challenges and understand the tax implications of retirement plans, investment portfolios, money market accounts, annuities and other financial products.

Within the financial services industry, our professionals also advise banks, broker-dealers, asset managers, funds and institutions on strategic tax planning and compliance for both domestic and international business activities. Our Financial Services practice is highly skilled in the areas of withholding examinations, qualified intermediary audits, tax form updates, and deductions, allocations and apportionments under the IRC and the Authorized OECD Approach, as well as the nuances of section 475 for mark-to-market items.

Whether you issue, purchase or invest in financial products, Marks Paneth has the expertise and resources available to help you navigate the industry’s unique tax and compliance rules, which do not always conform to standard accounting principles. Our partners include seasoned veterans from the National Office of Chief Counsel of the IRS, FDIC and national investment and research firms.


Financial Products Taxation

  • Debt vs. Equity
  • Interest recognition
  • Original issue discount and repurchase premiums
  • Market discount
  • Beneficial ownership
  • Wash sales
  • Constructive sales
  • Debt modification, as well as other instruments
  • Securities Lending and repurchase Agreements
  • Dividend Equivalents and section 871(m), 305(c)
  • Dividend Received Deductions
  • Option contracts
  • Forward contracts, including futures
  • Municipal and tax-exempt bonds
  • Portfolio Interest
  • Credit Default Swaps
  • Distressed, Bad debt and worthless securities deductions
  • Due diligence for Private Equity Financials
  • IRS Controversy matters
  • Notional Principal Contracts and swaps
  • Structured financing and structured notes
  • Exchange traded securities
  • Securitization
  • Insurance and annuities
  • Hedging and risk management
  • Straddles, mixed straddles and mixed straddle accounts
  • Cash-pooling and treasury functions
  • US sourced FDAP determinations
  • Hybrid instruments
  • Bullet instruments
  • Royalty acceleration instruments
  • Mezzanine debt structures
  • REMICS, REITS and other Regulated Investment Companies

Learn more about our specialized tax services for financial institutions and other members of the Financial Services industry. 


Mark R. Baran
Julio M. Jimenez