Nicholas C. Mowbray

Associate

Washington, D.C.
T +1.202.861.1704
F +1.202.861.1783

Overview

Nicholas Mowbray focuses his practice on U.S. federal income tax matters, with an emphasis on international tax and the taxation of financial products. Nicholas regularly advises clients on ways to enhance the tax efficiency of commercial transactions and operating structures, including outbound investments by U.S. multinationals, inbound investments by non-U.S. multinationals, the structuring of cross-border financings, internal restructurings and reorganizations, and acquisitions. Nicholas also regularly advises his clients on controversy matters involving the recognition of income, transfer pricing and the international tax provisions of the Tax Cuts and Jobs Act of 2017. His work across industries includes advising clients in the areas of asset management, insurance, oil and gas, automobile manufacturers, life sciences and consumer products.

Nicholas is the co-author of the leading treatise Financial Products: Taxation, Regulation and Design. Prior to joining the firm, he spent more than six years in public accounting, working in both Chicago and London.

Select Experience

International Tax Planning
  • Advised a U.S. aerospace company with respect to IP licensing and how to structure licensing agreements with a foreign licensee to achieve a foreign-derived intangible income deduction.
Transactional Tax Advice
  • Advised an investment fund on its disposals of deeply distressed debt instruments, including the proper tax accounting treatment and method.
Tax Controversy
  • Represented a foreign-based manufacturing company in connection with IRS proposed transfer pricing adjustments with respect to certain intercompany debt.
More »

Experience

International Tax Planning
  • Advised a U.S. aerospace company with respect to IP licensing and how to structure licensing agreements with a foreign licensee to achieve a foreign-derived intangible income deduction.
  • Advised a foreign-based manufacturer on the disposal of its U.S. real property interests, including issues arising under the Foreign Investment in Real Property Tax Act.
  • Advised a digital platform company on its cross-border structure in connection with its launch of its U.S. platform, including addressing permanent establishment and U.S. trade or business considerations and transfer pricing issues.
  • Advised a U.S. multinational on how to structure a cross border oil and gas venture, including addressing U.S. trade or business and effectively connected income issues, U.S. agency principles, subpart F issues, and title passage.
  • Advised an investment fund on its move to Puerto Rico, establishing Puerto Rican residency, and navigating the applicable income sourcing rules
  • Created and implemented protocols for traders of a non-U.S. hedge fund with respect to publicly traded partnerships and derivatives written over U.S. equities.
  • Designed and implemented structures for a non-U.S. alternative lending fund with respect to lending and aircraft leasing in the United States.
  • Advised U.S. multinational on restructuring considerations with respect to GILTI.
  • Advised U.S. multinational on functions and services qualifying for FDII.
  • Designed and implemented the transfer of IP by a U.S. multinational to a foreign subsidiary.

Transactional Tax Advice

  • Advised an investment fund on its disposals of deeply distressed debt instruments, including the proper tax accounting treatment and method.
  • Created tax-efficient investment strategy for a non-U.S. investor investing in a U.S. broker-dealer.
  • Created restructuring and entity simplification plan for a U.S. multinational with respect to its non-U.S. holdings in China, Mexico and the Netherlands.
  • Advised U.S. multinational on how to integrate a non-U.S. acquired business into its operating model and how to restructure its acquisition indebtedness.
Tax Controversy
  • Represented a foreign-based manufacturing company in connection with IRS proposed transfer pricing adjustments with respect to its intercompany debt.
  • Represented a U.S. multinational corporation in connection with an IRS controversy related to what constitutes a cash equivalent asset under Section 965.
  • Resolved an IRS controversy related to a U.S. multinational’s acquisition and stock issuance costs.
  • Advised and represented individuals filing for the IRS’s Voluntary Disclosure Program.

Recognitions and Memberships

Recognitions

  • The Legal 500 United States
    • Recommended in U.S. Taxes - Contentious 
  • Kids in Need of Defense (KIND): Pro Bono Attorney of the Month (Sept. 2020)
  • “Financial Products: Taxation, Regulation and Design” (Wolters Kluwer): Co-author

Memberships

  • American Bar Association: Tax Section

Pro Bono

  • Successfully represented a non-citizen child before USCIS and the Immigration Court, obtaining Special Immigrant Juvenile Status.

Admissions

  • U.S. Tax Court
  • U.S. District Court, Northern District of Illinois
  • Illinois
  • District of Columbia

Education

  • LL.M., Taxation, Northwestern University School of Law, 2014, with honors
  • J.D., Chicago-Kent College of Law, Illinois Institute of Technology, 2010; Student Bar Association, Vice President
  • B.A., University of Michigan, 2006

Languages

  • Spanish

Blog

In The Blogs

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Blockchain Monitor
Crypto, CBDC and Blockchain Supply Chain Initiatives Announced; More SEC and FinCEN Enforcement; Crypto Tax Amendment Fails; DeFi Hacked for $600M
By Teresa Goody Guillén, Nicholas C. Mowbray, Robert A. Musiala Jr., Veronica Reynolds, Kayley B. Sullivan, Joanna F. Wasick
August 13, 2021
In this issue: • Crypto Firms Pursue Bank Charters, Traditional Financial Firms Integrate Crypto • CBDC and Blockchain Remittance Initiatives Launch Across Foreign Markets • Blockchain Supply Chain Initiatives Launch Across Various...
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Blockchain Monitor
Cryptocurrency Payment Products and NFT Initiatives Launch, SEC Chairman Addresses Crypto, Pending Legislation Includes New Crypto Tax Reporting Rules
By Nicholas C. Mowbray, Robert A. Musiala Jr., Veronica Reynolds, Joanna F. Wasick
August 6, 2021
In this issue: • New Crypto Products Launch in Payment Cards, Gold and Sandwiches • More NFTs Launch in Sports, Fashion, Gaming and Charity Auctions • SEC Chairman, Kentucky and UK Address Various Aspects of Crypto Industry • Proposed...
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Blockchain Monitor
DOJ and IRS May Soon Begin Enforcement Actions Against Virtual Currency Tax Fraudsters
By John J. Carney, Nicholas C. Mowbray, Robert A. Musiala Jr., Jeffrey H. Paravano, Andrew M. Serrao
October 22, 2020
In the past several years, the use and prevalence of virtual currency have increased exponentially. The proliferation of digital assets has changed the way goods and services are exchanged and has allowed for faster and cheaper...
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