Tax

  • January 20, 2017

    Among Trump's First Orders Is One To Ease ACA Regulations

    President Donald Trump got to work on his first day in office, signing executive orders including one that aims to “ease the economic burdens” of the Affordable Care Act in advance of its promised repeal, according to reports on Friday.

  • January 20, 2017

    Wyly Urges 2nd Circ. To Hear Arguments In $299M SEC Appeal

    Former Michaels Stores Inc. chair Sam Wyly and his late brother's estate urged a Second Circuit judge Friday to allow oral arguments in their appeal of the U.S. Securities and Exchange Commission's $299.3 million securities fraud victory over the pair, citing “significant legal questions.”

  • January 20, 2017

    Chancery Tosses Claims Over Alleged UPS Cigarette Scheme

    A Delaware Chancery judge late Thursday threw out derivative claims accusing United Parcel Service Inc. directors of faulty oversight that led to an alleged scheme to haul untaxed cigarettes, ruling the suing shareholders hadn’t shown it would have been futile to take the claims to the company’s board.

  • January 20, 2017

    Ill. High Court Strikes Down Chicago Tax On Car Rentals

    The Illinois Supreme Court told Chicago on Friday to stop collecting taxes on suburban businesses that may rent cars for use within city limits, saying that the way the city imposes the tax violates the home rule article of the state constitution.

  • January 20, 2017

    Split Pa. High Court Delays End To Local Casino Tax Shares

    Over a stern dissent from Justice David Wecht, the Pennsylvania Supreme Court on Friday agreed to give state lawmakers an extension on their efforts to craft a solution after a decision concluding that a two-tiered system for taxing casinos to fund host municipalities violated constitutional requirements for uniform taxation.

  • January 20, 2017

    Fla. Atty Cops To Avoiding Taxes On Stock From Clients

    A Florida accountant and attorney pled guilty Friday to tax evasion for hiding hundreds of thousands of dollars' worth of income from stocks received as compensation for legal and accounting work for two medical marijuana companies.

  • January 20, 2017

    Taxation With Representation: Cravath, Weil, Jones Day, Davis

    In this week's Taxation With Representation, British American Tobacco is taking over Reynolds American for $49 billion, Exxon Mobil says it will pay up to $6.6 billion for companies with drilling properties in the Permian Basin, and Eli Lilly is set to purchase a migraine treatment developer for roughly $960 million.

  • January 20, 2017

    Miss. Out-Of-State Use Tax Bill Moves Through Legislature

    A Mississippi bill that would require out-of-state sellers to collect and remit use taxes has been referred to the state’s Senate Finance Committee, a move that follows legislative efforts from several states to defy decades-old U.S. Supreme Court precedent that limits states’ ability to collect sales and use taxes from those sellers.

  • January 20, 2017

    GAO Says It Saved $63B For Gov't In 2016

    The U.S. Government Accountability Office on Wednesday said it had helped save the federal government more than $63 billion in fiscal 2016, pointing to efforts such as helping to stem improper Medicare payments, cut procurement costs, and streamline tax collection.

  • January 20, 2017

    Tribe Seeks Clarity On Order In Wash., County Tax Row

    The Tulalip Tribes on Thursday asked a Washington federal judge to clarify her order that largely ruled against the state of Washington and Snohomish County in a dispute over taxes on reservation lands, seeking confirmation that the order did not weigh the balance of federal, tribal and state interests.

  • January 20, 2017

    IRS Finalizes Dividend Payment Rules For Nonresident Aliens

    The Internal Revenue Service Thursday finalized regulations on tax withholdings on dividends paid to nonresident aliens and foreign corporations.

  • January 20, 2017

    Ex-NJ Atty Seeks Probation In Referral Kickback Case

    A former New Jersey attorney facing possible prison time for strategically banking kickbacks he received through a personal injury client referral scheme in order to avoid IRS detection urged a federal judge on Thursday to reject the government’s push for a lengthier term and stick to the original plea agreement.

  • January 20, 2017

    Trump Aims To Guard US Interests In Trade, Jobs

    Shortly after being sworn in Friday, President Donald J. Trump laid out a vision for his administration that he said would put “America first” through a regime of tax, international trade and immigration policy meant to increase job creation and protect U.S. interests.

  • January 19, 2017

    Rolling Back Regulation In The Age Of Trump

    The incoming president’s plans to rein in the power of federal agencies will lead to uncertainty for lawyers and their clients as pending investigations and rulemaking are stopped in their tracks.

  • January 19, 2017

    Most Influential Judges On Trump’s Supreme Court Short List

    A new look at the potential U.S. Supreme Court nominees’ rulings reveals a ranking of judicial influence with some surprises at the top — and at the bottom.

  • January 19, 2017

    The Lawyer Who Will Shape Trump’s Presidency

    Jones Day’s Donald McGahn is stepping into the role of White House counsel, a powerful but little-understood position that has a strong history of impacting the president’s authority.

  • January 19, 2017

    In The Polarized Era Of Trump, BigLaw Searches For Balance

    The alignment of law firms with or against the new administration in legal battles to come could open rifts among attorneys and clients. But the publicity earned for taking on a potentially unpopular case could ultimately be worth any public fallout.

  • January 19, 2017

    IRS Finalizes Fracking Service Income Tax Treatment Rules

    The Internal Revenue Service issued final regulations Thursday leaving largely intact its proposed rules on qualifying income from service providers to the oil and gas industry for master limited partnership treatment, which explicitly granted fracking services access to the favorable tax status.

  • January 19, 2017

    Verizon Unit Urges NJ Panel To Restore $271M Tax Deduction

    Counsel for MCI Communication Services Inc. urged a New Jersey state appellate panel Thursday to restore a roughly $271 million tax deduction, saying a lower court erred in requiring the business to pay tax on cancellation of debt income belonging to its parent company.

  • January 19, 2017

    Trump Treasury Secretary Pick Pushes For Tax Overhaul

    Major tax changes could soon be in the works under U.S. Department of the Treasury nominee Steven Mnuchin, who told a Senate panel on Thursday that President-elect Donald Trump’s tax plans would be aimed at a lower business tax rate, as well as restructuring the Internal Revenue Service and massive capital repatriation.

Expert Analysis

  • IRS Offers Clarity On Production Tax Credit Safe Harbors

    Michael Didriksen.jpg

    Last month the Internal Revenue Service issued a notice clarifying safe harbors for determining when construction of a facility has begun for which a taxpayer is eligible for the renewable electricity production tax credit or the investment tax credit. The notice permits some use of different safe harbors in alternate years, clarifies treatment of retrofitted facilities, and provides other guidance, say attorneys from Baker Botts LLP.

  • How Litigation Funding Is Bringing Champerty Back To Life

    John H. Beisner

    While some courts have declined to apply the common-law doctrine of champerty to invalidate third-party litigation funding agreements, two recent rulings by appellate courts in New York and Pennsylvania have brought renewed attention to champerty principles, casting doubts on the legality of certain forms of third-party litigation funding, say John Beisner and Jordan Schwartz of Skadden Arps Slate Meagher & Flom LLP.

  • A Federal Crackdown On Tax Zapper Software

    Matthew Lee

    Revenue suppression or “tax zapper” programs delete some or all of a restaurant’s cash transactions and then reconcile the books of the business, lowering the firm's tax bill. States have battled zappers for years, but the case of United States v. John Yin, filed last month in the Western District of Washington, shows federal authorities are now joining the fight, says Matthew Lee of Fox Rothschild LLP.

  • Attracting And Retaining The Millennial Lawyer

    Christopher Imperiale

    Instead of trying to change the new workforce to follow a law firm's existing processes and procedures, perhaps it's time for firms to start changing their processes and procedures to better accommodate the mentality of this next generation of lawyers, says Christopher Imperiale, a law firm adviser with Berdon LLP.

  • Art Market Tax Probes Make Domestic Freeports Appealing

    Desiree Moore

    As home to high art auction prices and hefty sales and use taxes, New York City has seen its share of art-related tax fraud. Now, as law enforcement scrutinizes tax compliance in the art world, collectors may wish to avoid New York sales taxes legally, by shipping their purchases to a domestic freeport, say Desiree Moore and Blaise Niosi of K&L Gates LLP.

  • It’s Time To Change The Law Firm Business Model

    Lucia Chiocchio

    Every year, statistics reveal very little change in the number of women and minorities in the ranks of partnership. So how do law firms change this painfully slow rate of progress? It takes more than adding a diversity policy or a women’s leadership program to the current law firm business model, says Lucia Chiocchio, co-chair of Cuddy & Feder LLP's telecommunications and land use, zoning & development groups.

  • Amended Rule 37(e): 1 Year Later

    Samantha Southall

    After a full year in effect, the amended Federal Rule of Civil Procedure 37(e) has been tested in a variety of district courts. A sampling of these decisions reveals that courts seem to be adhering closely to the amended rule and ordering adverse inference instructions only where there was intent to deprive another party of access to relevant information, say Carrie Amezcua and Samantha Southall of Buchanan Ingersoll & Rooney PC.

  • In Congress: More Confirmation Hearings

    Richard Hertling

    Democrats will have a difficult time actually defeating any of President-elect Trump's cabinet nominations because of a change they made to the Senate rules to end the filibuster for executive branch nominations. Their goal is not really to defeat the nominees but to draw stark differences early on in the new administration, say Richard Hertling and Kaitlyn McClure of Covington & Burling LLP.

  • Avoiding The Hidden Costs Of Bargain-Priced E-Discovery

    Michael Cousino

    Many organizations are interested in finding electronic discovery partners who offer tantalizingly low prices for electronic discovery services. However, unforeseen gaps, lax security practices, ignorance of global practices and delayed deliverables can all add up to a surprisingly large final cost, says Michael Cousino of Epiq Systems.

  • New Guidance On Safe Harbor For Information Return Errors

    Michael Chittenden

    On Jan. 4, 2017, the IRS released Notice 2017-09, providing guidance on the de minimis safe harbor for errors in amounts reported on information returns. The notice sheds significant light on the safe harbor, which was enacted by the PATH Act of 2015. But it raises compliance concerns for small payors and for payees receiving intermittent payments, says Michael Chittenden of Miller & Chevalier.