Daily Tax Update - October 3, 2014: Salix-Cosmo Merger Terminated Citing Potential Inversion Rules

Salix-Cosmo Merger Terminated Citing Potential Inversion Rules:  Salix Pharmaceuticals, Ltd. released a statement today announcing that its planned merger with Italian company Cosmo Pharmaceuticals S.p.A. has been terminated.  Salix will make a $25 million payment to Cosmo pursuant to the terms of the termination.  Salix President and CEO Carolyn Logan commented, “the changed political environment has created more uncertainty regarding the potential benefits we expected to achieve.”

IRS Updates Instructions to Forms 1099 for FATCA Compliance:  On September 29, 2014, the IRS released on its website a supplement to the 2014 general instructions for preparing forms in the 1099 series for FATCA compliance.  The supplemental instructions apply to participating foreign financial institutions that elect to fulfill their FATCA reporting obligations using Forms 1099.

The FATCA Supplement to the 2014 General Instructions for Certain Information Returns Reporting on Forms 1099 can be accessed here.