Sonia K. Kothari
Senior Counsel
Sonia K. Kothari is a senior counsel in the Taxation Practice of Foley & Lardner LLP. Sonia is based in the firm’s Washington, D.C. office. Sonia’s practice focuses the U.S. federal tax aspects of a wide range of business transactions.
- Tax planning for sponsors and investors in domestic and cross-border private investment funds, including venture capital funds, digital assets funds, opportunity zone and other real property funds, credit funds, continuation funds, and hedge funds.
- Mergers, acquisitions, divestitures, reorganizations, restructurings, recapitalizations, debt and equity financings, and strategic investments for public and private companies.
- Structuring for inbound and outbound investments, including the application of tax treaties, anti-deferral regimes, withholding tax, choice of entity, and information reporting.
- Real estate transactions, including 1031 like-kind exchanges, tenancy-in-common agreements and joint venture agreements.
Prior to joining Foley, Sonia served as an attorney in the Passthroughs and Special Industries division at the IRS Office of Chief Counsel in Washington, D.C. She is a principal author of the final regulations under Internal Revenue Code Sections 1400Z-2 (opportunity zones) and 1061 (carried interest).
Sonia previously was a tax associate at international law firms in New York, where she advised clients on the U.S. federal income tax treatment of a variety of domestic and cross-border business transactions.
Publications and Presentations
- Co-author, “Considerations for Forming Private Credit Funds,” Copyright 2024 Bloomberg Industry Group, Inc (July 2024)
- Author, Foley Innovative Technology Insights, “IRS Issues Guidance on Reporting for Digital Assets Transactions” (July 1, 2024).
- Author, Foley Innovative Technology Insights, “Bipartisan Proposal Would Not Tax Staking Rewards Until Time of Sale” (May 6, 2024).
- Co-author, Global Digital Asset & Cryptocurrency Association Comments to Department of the Treasury and Internal Revenue Service on proposed regulations on Gross Proceeds and Basis Reporting by Brokers and Determination of Amount Realized and Basis for Digital Asset Transactions (November 13, 2023).
- Co-author, Foley Blogs, “Opportunity Zones: Should Your Startup Make One Its Home?” (August 21, 2023).
- Co-author, Foley Innovative Technology Insights, “IRS Issues Notice on Treatment of NFTs as Collectibles” (March 24, 2023).
- Presenter, “Emerging Federal and State Tax Issues for Virtual Assets,” National Association of State Bar Tax Sections 43rd Annual Conference (November 12, 2022).
- Co-author, “Tax Considerations for Transactions of Non-Fungible Tokens,” 175 Tax Notes 729 (May 3, 2022).
- Co-author, Foley Newsletters, “Build Back Better Tax Proposals: Considerations for Private Investment Funds & Sponsors” (October 4, 2021).
Foley Represents ARCHIMED in Acquisition of Irrimax Corporation
Foley & Lardner LLP recently represented global private equity health care specialist ARCHIMED in its acquisition of Irrimax Corporation, including its holding company, Innovation Technologies, for an undisclosed sum.
Foley Represents MOGAS Industries in Sale to Flowserve
Foley & Lardner LLP served as legal advisor to MOGAS Industries, a privately held, Houston-based provider of mission-critical severe service valves and associated aftermarket services, in its sale to Flowserve Corporation.
Considerations for Forming Private Credit Funds
Formation of a private credit fund originating loans in the US leads US fund sponsors to design a fund that can accommodate investors’ tax and regulatory requirements.
IRS Issues Guidance on Reporting for Digital Assets Transactions
These new regulations provide clarity for brokers taking possession of digital assets being sold by customers and for transactions where digital assets are used to purchase real estate.
Bipartisan Proposal Would Not Tax Staking Rewards Until Time of Sale
The Providing Tax Clarity for Digital Assets Act would eliminate the mismatch in timing between acquisition of the reward and the receipt by a taxpayer of cash with which to pay the tax on the reward.
Foley Represents Data and AI Consultancy Startup Indicium in $40M Funding Round
Foley & Lardner LLP recently represented Indicium in its $40 million investment from Columbia Capital to accelerate growth in the United States. Originally founded in Brazil, Indicium offers a range of solutions to help large enterprises organize and use their data to scale AI.