Federal

Floated Look-Through Tax Rules May Impact Existing REITs

Natalie Olivo
Senior Tax Correspondent

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.

The Tax Angle: Short List Of Must-Pass Measures In 2023

Stephen K. Cooper
Editor-at-Large

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.

New Easement Law Sidesteps Issue Of Inflated Appraisals

Kat Lucero

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.