Federal
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March 23, 2023
DC Circuit Upholds Seal On Expat's IRS Tax Docs
The D.C. Circuit Court declined on Thursday to unseal the tax return information of an expatriated American attorney suing the Internal Revenue Service over its regulations carrying out the transition tax passed in the 2017 Tax Cuts and Jobs Act.
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March 23, 2023
Kan. Man's Estate Liable For $1.1M Tax Bill, US Says
A Kansas resident's estate owes more than $1.1 million in unpaid taxes, interest, penalties and fees, the U.S. said in a complaint filed Thursday in Kansas federal court that also named the dead man's grandson as a defendant.
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March 23, 2023
Court Trims Challenge To IRS Benefit Plan Disclosure Notice
An Arizona federal judge tossed part of a recruiting agency's lawsuit challenging IRS guidance requiring the disclosure of potentially abusive benefit plans Thursday, deeming some of the claims untimely and concluding that a court decision invalidating the guidance didn't do so nationwide.
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March 23, 2023
Tax Court Denies Calif. Biz's Expense Deductions
A California company can't take home office deductions, or deductions for car and truck expenses or depreciation, for 2013 and 2014, the U.S. Tax Court said Thursday.
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March 23, 2023
Extend Corp. AMT Safe Harbor Rules, Atty Groups Tell IRS
The Internal Revenue Service should extend initial rules for firms to exclude themselves from the new alternative minimum tax meant for large corporations with a book income of $1 billion to tax years beyond 2023, two attorney groups said.
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March 23, 2023
Damon Dash Must Deliver Tax Returns In $805K IP Case
Roc-A-Fella Records co-founder Damon Dash must deliver his tax returns to the film company and director trying to collect an $805,000 judgment against him for wrongly claiming he owned the copyright to their film, a New York federal court said.
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March 23, 2023
Couple Seeks $349K In Tax Refunds From US
The U.S. government owes a couple a refund of nearly $349,000 stemming from their taxes for 2014, 2017 and 2018, the couple told a Texas federal court.
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March 22, 2023
IRS' Plans For $80B Funding Boost Coming Soon, Yellen Says
A draft of the Internal Revenue Service's plan detailing how it will spend the nearly $80 billion funding boost it received under the Inflation Reduction Act should be made available in "a matter of weeks," U.S. Treasury Secretary Janet Yellen told a Senate panel Wednesday.
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March 22, 2023
Mayo Clinic Granted $1.6M In Interest On Tax Refund
The federal government must pay the Mayo Clinic nearly $1.6 million in interest on a recently awarded $11.5 million tax refund, a Minnesota federal court said Wednesday, rejecting the government's request to leave the interest amount unspecified to offset future debts.
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March 22, 2023
Texas Scrap Metal Dealer Hid $2.3M Of Biz's Income, US Says
The owner of a Texas scrap metal company hid more than $2.3 million of business income from the Internal Revenue Service by routing client payments to his personal bank account, the U.S. government alleged in federal court Wednesday.
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March 22, 2023
M&A Deals Shouldn't Trigger Stock Buyback Tax, Attys Say
Taxable and nontaxable mergers and acquisition deals between two unaffiliated companies should not be subject to the new excise tax on stock buybacks, the New York State Bar Association's Tax Section told Treasury in a report.
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March 22, 2023
9th Circ. Denies Self-Representing Atty $536K In Legal Fees
The Ninth Circuit rejected a request for $536,000 in legal fees from a former U.S. Department of Justice attorney who successfully defended himself against an erroneous tax bill, though the circuit said he may be able to ask the U.S. Tax Court for the refund.
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March 22, 2023
Wyo. Woman Failed To Report Taxable Income, Tax Court Says
A Wyoming woman had more than $58,000 in unreported taxable income for 2018 because her pay as a service director constituted taxable wages, the U.S. Tax Court said Wednesday.
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March 22, 2023
IRS Updates FAQs On Payment Card Transaction Form
The Internal Revenue Service updated frequently asked questions Wednesday regarding a form for reporting transactions involving payment cards and third-party payment networks.
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March 22, 2023
Russian Ex-Gas Exec Urges No Wealth Evidence At Tax Trial
A Florida federal court should exclude evidence of the wealth of a former chief financial officer of Russian gas company Novatek from his trial on multiple tax charges, he told the court, saying that class prejudice among the jurors could unfairly bias them against him.
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March 21, 2023
Trump Can't Delay Trial In NY AG's 'Simple' Fraud Case
A New York state court judge refused Tuesday to delay trial for former President Donald Trump and his businesses in the state attorney general's fraud suit, saying claims of lying on financial documents to procure real estate loans "are simple and straightforward."
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March 21, 2023
Tax Court Suspends Calif., Colo. Attys After State Discipline
The U.S. Tax Court suspended a California attorney for failing to report past disciplinary actions imposed by the state and suspended a Colorado attorney based on that state's actions against him.
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March 21, 2023
Tax Court Finalizes Practice And Procedure Amendments
The U.S. Tax Court adopted final amendments to its Rules of Practice and Procedure, according to a news release.
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March 21, 2023
Tax Court Denies Couple $37K In Deductions Dispute
A pastor and his wife, who moved for a time from Oklahoma to Florida for work, didn't provide adequate evidence to justify about $37,000 in disputed deductions on their 2014 taxes, the U.S. Tax Court said Tuesday.
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March 21, 2023
Couple Can't Deduct Basement Tenant's Costs, Tax Court Says
A Virginia couple cannot claim $23,000 in deductions for renting out a basement bedroom to a friend for 10 months because the couple's claimed expenses weren't clearly linked to the rental activity, the U.S. Tax Court said Tuesday.
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March 21, 2023
Couple Can't Exclude Settlement From Income, Tax Court Says
An $18,000 settlement received by a California couple cannot be excluded from their gross income, the U.S. Tax Court ruled Tuesday.
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March 21, 2023
IRS Goals Necessary To Evaluate Progress, TIGTA Says
The Internal Revenue Service should periodically review and update goals for the tax-exempt quality management system, the Treasury Inspector General for Tax Administration said in a report published Tuesday.
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March 21, 2023
IRS Plans To Float Guidance Treating NFTs As Collectibles
The Internal Revenue Service and U.S. Department of the Treasury are looking to issue guidance that would treat some nonfungible tokens as collectibles for tax purposes, which could subject NFTs to a higher capital gains tax rate, the agencies said Tuesday.
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March 21, 2023
Firms Urge Justices To Nix 6th Circ. OK Of IRS Summonses
The U.S. Supreme Court should reverse a Sixth Circuit decision permitting the IRS to go ahead with summonses for the banking records of two law firms and the wife of a man owing $2 million in taxes, the firms and the woman told the justices.
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March 21, 2023
9th Circ. Says Couple's Biz Losses Correctly Denied
The U.S. Tax Court correctly denied a California couple who sold cruises the business-loss deductions they claimed in 2017 and 2018 because they couldn't substantiate their expenses, the Ninth Circuit said Tuesday.

IRS Needs New Compliance Strategy, Former Chief Says
The Internal Revenue Service needs a targeted, systematic compliance strategy to best use the $45.6 billion in enforcement funding provided to the agency under legislation enacted in 2022, a former IRS commissioner said Thursday.

Floated Look-Through Tax Rules May Impact Existing REITs
Long-established U.S. real estate investment trusts may feel the effects of proposed U.S. Treasury Department regulations that would, in a manner of speaking, retroactively look through the corporate shareholders of REITs to determine whether their foreign investors qualify for certain tax exemptions.

Treasury Clarifies Eligibility For Chips Tax Credit
A new chip factory's human resources, legal, accounting, sales, distribution and noncybersecurity operations will not qualify for the investment tax credit meant to encourage the production of advanced semiconductor technology, the U.S. Department of the Treasury announced Tuesday.
Featured Stories
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Floated Look-Through Tax Rules May Impact Existing REITs
Long-established U.S. real estate investment trusts may feel the effects of proposed U.S. Treasury Department regulations that would, in a manner of speaking, retroactively look through the corporate shareholders of REITs to determine whether their foreign investors qualify for certain tax exemptions.
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The Tax Angle: Short List Of Must-Pass Measures In 2023
From a look at several must-pass legislative vehicles awaiting Congress this year to the growing list of possible tax bills looking to hitch a ride to the White House, here's a peek into a reporter's notebook on a few of the week's developing tax stories.
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New Easement Law Sidesteps Issue Of Inflated Appraisals
The IRS can now ban partnerships from claiming outsize charitable tax deductions for conservation easements under restrictions enacted in December, but the new law does not tackle the underlying overvaluation problem that has long plagued the agency in such transactions.
Expert Analysis
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5 Ways Taxpayers Can Spot Employee Retention Credit Scams
On Monday, the Internal Revenue Service added the employee retention credit to its list of prevalent tax scams because of ERC promoters seeking to take advantage of employers, but taxpayers who may qualify for the credit can protect themselves by recognizing certain red flags, say attorneys at Potomac Law and Stout Risius.
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Could The Supreme Court Legalize Marijuana Federally?
Amid slow legislative and executive movement on cannabis reform, it’s worth examining whether the U.S. Supreme Court could provide a pathway to federal cannabis legalization — a decision that would surely require strange bedfellows given the court’s current ideological makeup, say Whitt Steineker and Mason Kruse at Bradley Arant.
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Tax Pitfalls To Avoid In Employment Litigation Settlements
Downsizing companies should keep certain questions in mind when settling claims with departing employees to ensure they understand associated tax withholding and reporting obligations, and avoid costly interest and penalties down the road, says Matthew Meltzer at Flaster Greenberg.
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Key Considerations For Taxpayers Deducting Crypto Losses
While a recent Internal Revenue Service memorandum is helpful in providing insight into how the agency is considering guidance related to cryptocurrency, questions remain with respect to whether a taxpayer can claim a tax deduction for cryptocurrency losses, say attorneys at McDermott.
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Justices' MoneyGram Opinion Could Spur State Legislation
The U.S. Supreme Court’s recent decision that federal law governs the escheatment of over $250 million in unclaimed MoneyGram checks provides clarity for some issuers, but aspects of related common law remain uncertain and states may take the opportunity to pass multistate escheatment legislation, say attorneys at Alston & Bird.
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Justices Leave Questions Open On Dual-Purpose Atty Advice
The U.S. Supreme Court's recent dismissal of In re: Grand Jury on grounds that certiorari was improvidently granted leaves unresolved a circuit split over the proper test for deciding when attorney-client privilege protects a lawyer's advice that has multiple purposes, say Susan Combs and Richard Kiely at Holland & Hart.
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Employee Retention Tax Credit: Gray Areas And Red Flags
The subjective nature of the pandemic-prompted employee retention credit, coupled with a lack of Internal Revenue Service guidance, have created fertile ground for opportunists, so businesses seeking this tax benefit should be mindful of tax advisers who would involve them in fraudulent ERC claims, say attorneys at Holland & Knight.
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High Court Ax Of Atty-Client Privilege Case Deepens Split
The U.S. Supreme Court's recent dismissal of In re: Grand Jury as improvidently granted maintains a three-way circuit split on the application of attorney-client privilege to multipurpose communications, although the justices have at least shown a desire to address it, say Trey Bourn and Thomas DiStanislao at Butler Snow.
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Clean Energy Tax Credits' Wage, Apprentice Rules: Key Points
The Inflation Reduction Act's complicated prevailing wage and apprenticeship requirements for clean energy facility construction tax credits recently took effect — and the learning curve will be more difficult for taxpayers who are not already familiar with such programs, say attorneys at Shearman.
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Crypto Coverage After FTX Fall: Crime And Custody Coverage
Cryptocurrency firm FTX's recent implosion provides a case study for potential crypto exposure under traditional insurance policies, and suggests carriers should ask some basic underwriting questions, including whether a company engages in transactions involving cryptocurrencies or holds digital assets in custody, says Anjali Das at Wilson Elser.
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US-India Advance Pricing Resolutions Should Reassure Cos.
The United States' and India's tax authorities' recent resolution of a significant number of pending advance pricing agreements should reduce taxpayer uncertainty, reassure companies of the nations' good working relationship and improve India's investment environment, say Miller Williams and Caroline Setliffe at Eversheds Sutherland.
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Reimagining Benefits For A World Without Noncompetes
Though the Federal Trade Commission's recently proposed noncompete ban is still in its infancy, companies should begin considering whether they would need to retool their payment and benefits packages to comply, while still protecting their competitive edge, say Melissa Ostrower and Alec Nealon at Jackson Lewis.
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A Closer Look At Rep. Santos' Claims And Potential Charges
Skadden partner and former federal prosecutor Maria Cruz Melendez discusses Rep. George Santos' legal exposure following his alleged misrepresentations and the possible scope of investigations into his conduct — noting that if history is any indication, the congressman could face prison time if convicted.