• May 18, 2018

    IRS Found To Exceed Cap On Penalty For Offshore Reporting

    The Internal Revenue Service went beyond the cap on civil penalties it can assess for undisclosed offshore bank accounts, a Texas federal judge has ruled, rejecting the agency’s argument that regulations limiting the amount are implicitly invalid.

  • May 18, 2018

    Tax Canon May Ensue If Justices Take $199M Deduction Case

    A Third Circuit ruling on appeal to the U.S. Supreme Court that prevented an electricity supplier from claiming a double deduction on a consolidated tax return has some practitioners worried that, if accepted, the justices could solidify a stand-alone tax doctrine previously used only as a method of statutory interpretation.

  • May 18, 2018

    Taxation With Representation: Gibson, Freshfields, Wachtell

    In this week’s Taxation with Representation, gas pipeline operator Williams swallowed up its master limited partnership Williams Partners for $10.5 billion, Enbridge acquired several of its sponsored vehicles for $8.9 billion, EQT merged its hearing aid business with Widex A/S for $8.3 billion and Zoetis snapped up Abaxis for $2 billion.

  • May 18, 2018

    Limit Use Of TCJA Anti-Avoidance Rule, US Chamber Asks IRS

    The U.S. Chamber of Commerce asked the Internal Revenue Service to limit applying the anti-avoidance rule to only U.S. shareholders of certain foreign corporations that have benefited from a net decrease in tax liability from transactions, in correspondence sent Friday.

  • May 18, 2018

    Williams, Enbridge Deals Signal FERC-Driven MLP Purge

    Williams Cos. and Enbridge Inc. are exiting the master limited partnership business following the Federal Energy Regulatory Commission's revocation of a key tax benefit, and experts say they won't be the only pipeline companies to ditch the MLP model for a traditional corporate structure due to FERC's policy shift.

  • May 18, 2018

    PE Firms Lean On Lawyers As They Weigh C Corp. Conversion

    As major private equity firms consider converting from a partnership to a corporation to take advantage of new U.S. tax laws, here are some factors attorneys must be prepared to discuss with their PE clients about when a conversion might make sense and what risk comes with a change in corporate tax status.

  • May 18, 2018

    Mass. Pension Plans Part Of $2.1B Tax Fraud, Denmark Says

    The agency tasked with collecting taxes in Denmark filed three suits in Massachusetts federal court on Friday claiming Bay State-based pension plans were part of a massive multinational fraud scheme to dupe the Danish government out of $2.1 billion in reimbursed taxes.

  • May 18, 2018

    Corp. Tax Rate Should Climb To 25%, House Democrat Says

    If Democrats win a majority in the U.S. House of Representatives this November, the Ways and Means Committee should promote legislation that would raise the corporate tax rate to 25 percent, a Democratic member of the committee told Law360 on Friday.

  • May 18, 2018

    Gov't Gets Quick Win In Executor's $3.8M Estate Tax Row

    A California federal judge has granted summary judgment against an estate to deny a $3.8 million estate tax refund, ruling its decedent retained control over assets placed in a trust to fund her annuity.

  • May 18, 2018

    Brownfield Redevelopment Evolving As Savvy Grows

    Building on contaminated properties known as brownfields can be an attractive option for developers savvy enough to maximize tax and liability benefits that can accompany such projects and dodge potential stumbling blocks that could lead to unanticipated environmental and community concerns.

  • May 17, 2018

    Plans For $4B Miami Mega-Mall Advance With Key Approvals

    Plans for the massive American Dream Miami entertainment-retail complex passed key mileposts Thursday as the Miami-Dade County Commission approved land use and zoning applications and a development agreement needed for the $4 billion project to move forward.

  • May 17, 2018

    Kraft Unit Must Pay Tax On $934M Interest, NJ Panel Says

    A Kraft Foods Inc. subsidiary was not entitled to deduct from its taxable income over two years about $934 million in interest payments it made to its Chicago-based parent company, a New Jersey state appeals court said Thursday in upholding a decision in favor of state tax regulators.

  • May 17, 2018

    Rail Co. Seeks Rehearing Of Modified 11th Circ. Ruling

    CSX Transportation Inc. has petitioned the Eleventh Circuit to hold a rehearing to clarify its April 26 order to a district court for the relief it must give the freight carrier in its diesel fuel tax dispute with Alabama.

  • May 17, 2018

    Seattle Approves Head-Tax Bill Blasted By Amazon, Starbucks

    Seattle's Democratic Mayor Jenny Durkan said she signed a bill imposing an annual $275-per-employee tax on companies making more than $20 million a year despite strong opposition from hometown corporate giants Amazon and Starbucks.

  • May 17, 2018

    Equipment Seller Tells 5th Circ. $26M Tax Wrongly Calculated

    A Texas farm equipment seller who has been found to owe the IRS $26 million told the Fifth Circuit that the judgment from a lower court was incorrect and based on erroneous calculations made by the agency.

  • May 17, 2018

    A Chat With Perkins Practice Management Chief Toby Brown

    In this monthly series, legal recruiting experts at Major Lindsey & Africa interview management from top law firms about navigating an increasingly competitive business environment. Here we feature Toby Brown, chief practice management officer at Perkins Coie LLP.

  • May 17, 2018

    Tax Changes Spur Series Of Pipeline Asset Restructurings

    Gas pipeline operators Williams, Enbridge and Cheniere all separately unveiled plans Thursday to adjust their corporate structures following the Federal Energy Regulatory Commission’s recent change to the tax treatment of master limited partnerships.

  • May 16, 2018

    Calif. Federal Court Tosses Negligence Claim Against Intuit

    A California federal court dismissed claims of negligence and aiding and abetting fraud asserted by two plaintiffs in a proposed class action against Intuit Inc., the maker of TurboTax software, saying Tuesday that the alleged injuries were not reasonably foreseeable.

  • May 16, 2018

    High Court Payroll Row Raises Other Employee Tax Concerns

    The latest tax dispute to hit the U.S. Supreme Court dockets may be narrowly limited to the rail industry, but the possibility of an IRS regulation being struck down could open a can of worms on what kinds of employee compensation can be taxed.

  • May 16, 2018

    Senate Subcommittee Chair Wants IRS Overhaul Before Break

    The slew of bills passed by the U.S. House of Representatives that would overhaul operations at the Internal Revenue Service should be prioritized and passed before the August recess, the chairman of the Senate Finance Taxation and IRS Oversight Subcommittee told Law360 on Wednesday.

Expert Analysis

  • Out-Of-State Companies Beware Mass. 'Manufacturer' Tag

    Philip Olsen

    As a result of recent cases, non-Massachusetts corporations, which may outsource certain operations and not consider themselves engaged in manufacturing in their home state, could nevertheless be found to be manufacturers in Massachusetts, say Philip Olsen and Michael Penza of Morrison & Foerster LLP.

  • 5 Questions You Should Ask About Your Global Equity Awards

    William Woolston

    U.S. companies venturing into the world of global equity compensation confront a complex, cross-border web of rules and regulations. Victoria Ha and William Woolston of Covington & Burling LLP highlight five critical questions that can help U.S. companies navigate common legal pitfalls, with a focus on some of the most rapidly evolving areas of law.

  • Calif. Taxpayers Shouldn't Be Penalized For Gillette Elections

    Shail Shah

    Taxpayers that made the Gillette election on their California returns should file protests to contest any penalties assessed by the Franchise Tax Board, say attorneys at Reed Smith LLP.

  • Reducing Retirement Saving Barriers For Gig Workers

    Brett Owens

    Workers in the gig economy are currently not entitled to enjoy a traditional employer-based retirement plan because such plans are subject to stringent rules and only permitted to cover employees, not independent contractors. However, Congress is attempting to address this issue via the recently reintroduced Retirement Enhancement and Savings Act, says Brett Owens of Fisher Phillips.

  • Back To The Future: The Insurance Industry And Tax Reform

    Kristan Rizzolo

    During the past century, Congress has overhauled insurance-specific provisions of the Internal Revenue Code, flipping the tax treatment of key provisions several times. By passing the TCJA, Congress has made significant changes once again, say Kristan Rizzolo and Susan Seabrook of Eversheds Sutherland LLP.

  • Tax Law Shake-Ups In Swiss Wealth Management

    Marnin Michaels

    There have been a number of notable developments in the past 12 months that are relevant to the wealth management industry in Switzerland. Attorneys at Baker McKenzie discuss the common reporting standard and Swiss corporate tax reform, among other issues.

  • Opinion

    Why Won't Judicial Nominees Affirm Brown V. Board Of Ed?

    Franita Tolson

    On May 17, 1954, the U.S. Supreme Court decided Brown v. Board of Education, recognizing a moral and legal truth that should be beyond question in American society. The refusal by some of President Donald Trump's judicial nominees to say whether they believe the case was decided correctly is indicative of the narrow-minded elitism they would bring to the bench, says professor Franita Tolson of the University of Southern California's Gould School of Law.

  • The Lawyers' Guide To Cloud Computing

    Daniel Garrie

    In deciding whether cloud computing is right for the organization or firm, an attorney must consider cloud computing’s significant impact on the electronic discovery process, say Daniel Garrie, managing partner at Law & Forensics LLC, and David Cass, chief information security officer at IBM Cloud.

  • Opinion

    'Hoping' Employers Will Stimulate Economy Is Not Enough

    James Edward Maule

    Lawmakers hoped corporations would use the money from tax incentives in last year's overhaul to create jobs, raise pay and take other steps to grow the U.S. economy, without requiring that they do so. Change would be more likely if the law were crafted so corporations receive tax breaks only to the extent that such promises are fulfilled, says James Edward Maule, professor at Villanova University's Charles Widger School of Law.

  • A Clearer Forecast On Cloud Computing Tax In Illinois

    Samantha Breslow

    Determining whether computer software is taxable is no easy task, especially in light of the changing technological landscape. However, in several nonbinding letters, the Illinois Department of Revenue has recently provided clarification on several key issues, including the taxability of cloud computing, says Samantha Breslow of Horwood Marcus & Berk Chtd.