Nicholas C. Mowbray

Counsel

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, the taxation of financial products, and renewable energy credits and incentives. He also frequently advocates for clients before the Internal Revenue Service as well as at the Treasury Department.

Nicholas’s multidisciplinary tax practice allows him to holistically counsel his clients and provide them with practical and comprehensive solutions that guide them throughout the lifecycle of their commercial transactions. In this regard, Nicholas regularly advises clients on how to mitigate tax risks, as well as enhance the tax efficiency of commercial transactions and operating structures. He regularly advises domestic and multinational companies, private equity clients, technology, renewable energy and non-renewable energy, agriculture, blockchain and manufacturing businesses on all facets of taxation, including technical and policy issues, transfer pricing, treaties, international tax issues (i.e., GILTI, FDII, BEAT and foreign tax credits), renewable energy credits passed under the Inflation Reduction Act and issues relating to financial products (i.e., character of income, timing of income and issues with respect to hedging). 

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

Federal Tax Planning
  • Advised a private equity fund on a cross-border funding agreement for the development and commercialization of a pharmaceutical product.

Environmental Tax Issues and Renewable Energy Credits

  • Advised several battery manufacturers on excise taxes that apply to taxable chemicals, which included submitting a comment letter to the IRS advocating for future guidance.
Transactional Tax Advice
  • Advised an investment fund on its disposals of deeply distressed debt instruments, including the proper tax accounting treatment and method.
Crypto and Blockchain Advice
  • Advised a blockchain company on how to structure the operations related to the development of its protocol and eventually issuance of its tokens.
Tax Controversy
  • Negotiated a favorable settlement at IRS appeals for a foreign-based manufacturing company where the IRS proposed transfer pricing adjustments to the company's intercompany debt.
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Experience

Federal Tax Planning
  • Advised a private equity fund on a cross-border funding agreement for the development and commercialization of a pharmaceutical product.
  • Designed and implemented a new non-U.S. structure for a blockchain company that originally incorporated in the U.S.
  • 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 U.S.
  • 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.

Environmental Tax Issues and Renewable Energy Credits

  • Advised several battery manufacturers on excise taxes that apply to taxable chemicals, which included submitting a comment letter to the IRS advocating for future guidance.
  • Advised a multinational chemical manufacturer based in the U.S. on how to revise their vendor agreements to account for exemptions to excise taxes that apply to taxable chemicals.
  • Advised a manufacturer of structural support systems on the recently enacted Advanced Manufacturing Credit and negotiated the provisions of their supplier and vendor agreements related to the Advanced Manufacturing Credit.
  • Advised a renewable energy project developer on modifications made to the Investment Tax Credit and the recently enacted provisions related to one-time transfers of the Investment Tax Credit.

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.
Crypto and Blockchain Advice
  • Advised a blockchain company on how to structure the operations related to the development of its protocol and eventually issuance of its tokens.
  • Resolved an IRS controversy related to the trading of cryptocurrencies.
  • Advised a U.S. based cryptocurrency trading firm on its relocation to Puerto Rico.
  • Advised a U.S. based high-frequency cryptocurrency trading firm on how to structure its operating model and trading operations.
  • Advised a U.S. business on matters related to creating and issuing non-fungible tokens as compensation to its employees.
Tax Controversy
  • Negotiated a favorable settlement at IRS appeals for a foreign-based manufacturing company where the IRS proposed transfer pricing adjustments to the company's 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.
  • Resolved an IRS controversy related to proposed transfer pricing adjustments to a non-U.S. based multinational's intercompany debt with its U.S. subsidiary.
  • Settled in Tax Court a controversy related to constructive receipt and when farmers are required to recognize income under their grain contracts.
  • 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

News

News

Press Releases

Publications

Alerts

Articles

Blog Posts

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
New Initiatives Launch in Staking, DeFi, DAOs; IRS Issues NFT Guidance; White House Report Criticizes Crypto; SEC and DOJ Crypto Enforcement Continues
By Lauren Bass, Christopher W. Lamb, Nicholas C. Mowbray, Keith R. Murphy, Robert A. Musiala Jr., Joanna F. Wasick
March 27, 2023
In this issue: • Staking Market Launches, ‘Defi Cover’ Data Published, DAO Buys Golf Course• IRS Issues Guidance on Non-Fungible Tokens• Economic Report of the President Criticizes Digital Assets• SEC Charges Crypto Entrepreneur and...
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Blockchain Monitor
IRS Issues Guidance on Non-Fungible Tokens – What It Says and Does Not Say
By Teresa Goody Guillén, Nicholas C. Mowbray, Robert A. Musiala Jr., Elizabeth Ann Smith
March 27, 2023
The Proposed Guidance and Implications The IRS and Treasury Department announced on March 21, 2023, that they intend to issue guidance providing that certain NFTs qualify as collectibles under Section 408(m) of the Code. The Notice is the...
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Blockchain Monitor
The Tax Man Isn't Leaving: The IRS Continues to Issue John Doe Summonses Relating to Virtual Currency Transactions
By Christina O. Gotsis, Nicholas C. Mowbray, Carlos F. Ortiz, Elizabeth Ann Smith, Kayley B. Sullivan
October 3, 2022
On Sept. 23, 2022, a U.S. District Court judge approved an IRS John Doe summons served on a New York-based bank seeking account records, including account opening documents and records of deposits, withdrawals, transfers and wires, of...
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Blockchain Monitor
The Tax Man Is Back: IRS Issues First John Doe Summons in 2022 to Major Crypto Platform, Seeking Treasure Trove of Information on Tax Noncompliance
By Christina O. Gotsis, Nicholas C. Mowbray, Carlos F. Ortiz, Kayley B. Sullivan
August 22, 2022
After going for more than a year without using one of its most powerful weapons, a John Doe summons, the Internal Revenue Service (IRS) has reverted to the use of this tool in its much-publicized efforts to investigate, find, and prosecute...
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Blockchain Monitor
Taxation of Non-Fungible Tokens
By Nicholas C. Mowbray
July 21, 2022
Part Four in our series discusses U.S. federal income tax issues relating to Non-Fungible Tokens (NFTs) and provides an overview of how NFTs may be treated for U.S. federal income tax purposes. IRS Guidance 1. Notice 2014-21At the time of...
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