I thought the package was solid and some subtle confidence on reit convert. If it happens there
will be a catch up divvy I just do not believe that they would spend hundreds of millions on
convert if they did not have assurance from the best tax lawyers on the planet
Did anyone ask if IRM would still pursue a REIT conversion without a PLR? I doubt they'd really comment, but it would be very telling if they said they weren't ruling it out. If I was the CFO of that company, I'd go ahead and make the conversion, pay out $300M a year in cash dividends and $100M in stock dividends (save $100M each year just in case for corporate taxes). It would be at least 3 years before this got to tax court. If you lost, you could try to "undo" the depreciation changes in 2014 and you would have restricted cash just in case.
I don't think management wants to do anything to irk the IRS committee. They seem to have handled the process the right way despite how frustrating it's been. At least we're seeing a bit of a move here backed by some volume. That's two days in a row. I would love to break out of this range, but it's very unlikely until there is some news.
I know for a fact that Deloitte's D.C. IRS practice is representing IRM. They aren't slouches. They were key to getting the prison REITs converted last year.
IRM getting a successful conversion all depends on the political whims of the IRS General Counsel. If someone there or in Treasury feels slighted or feels that IRM is "escaping taxes" they'll make up their own reasons to deny a PLR. It's no different than a federal court system that is all based on either a liberal (activist) or conservative (restraint) judge.