Federal
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September 25, 2026
IRS Can't Redo Transactions For Music Production Co.
The Internal Revenue Service's recharacterization of transactions between a music production company and its owners makes no economic sense, the U.S. Tax Court said Friday, rejecting the agency's argument that $6 million of loans to a pass-through entity was actually a dividend to the owners.
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September 25, 2026
US To Appeal Calif. Wind Farm's $49.4M In Cash Grants
The federal government will appeal the U.S. Court of Federal Claims' July approval of $49.4 million in additional renewable energy cash grants to the country's second-largest wind farm, which has been embroiled in a decade-old dispute over the funds, according to a filing Friday.
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September 25, 2026
Judge Moves Sen. Scott's Tax Info Leak Case To DC Court
A Florida federal court transferred U.S. Sen. Rick Scott's suit against a former employee of federal contractor Booz Allen Hamilton Inc. for leaking his personal tax returns to D.C. federal court Friday, saying the employee's conduct didn't happen in Florida.
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September 25, 2026
Security Deficiencies Persist At IRS Sites, Watchdog Says
Some Internal Revenue Service employees continued to access the agency's facilities despite being on administrative leave, the Treasury Inspector General for Tax Administration said in a report released Friday evaluating security and authentication procedures at IRS sites.
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September 25, 2026
IRS Can't Nix Refund From Unauthorized Return
The Internal Revenue Service isn't entitled to recover a refund related to a fuel tax credit claimed on a return that a tax preparer filed for an Indiana man without his authorization, the U.S. Tax Court said in a bench opinion released Friday.
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September 25, 2026
Charity Founder Can't Withdraw Fraud, Tax Evasion Plea
A New York federal judge denied a charity founder's request to withdraw his guilty plea to wire fraud and tax evasion involving his organization, finding he failed to establish sufficient grounds to argue his innocence.
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September 25, 2026
Tax Court Upholds Couple's Fire Loss Deduction Penalty
An Indiana couple's misunderstanding of how to claim insurance payments they received after their home was damaged in a fire doesn't preclude them from being hit with an underreporting penalty, the U.S. Tax Court ruled Friday.
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September 25, 2026
Gov't Loses Up To $304B To Tax Fraud Annually, GAO Says
About $116 billion to $304 billion of the federal government's revenue is lost to tax fraud annually, the U.S. Government Accountability Office reported Friday, recommending that the Internal Revenue Service develop an agencywide antifraud strategy.
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September 25, 2026
IRS Compliance Takes Up $387B Worth Of Time, Group Says
Americans are estimated to spend almost 6.9 billion hours complying with Internal Revenue Service filing and reporting requirements in 2026, representing roughly $387 billion in potential lost productivity to the U.S. economy, the Tax Foundation said in a report released Friday.
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September 25, 2026
Taxation With Representation: Kirkland, Latham, McDermott
In this week's Taxation With Representation, Royal Caribbean invests billions in a joint venture with Sandals, Telix Pharmaceuticals buys ITM Isotope Technologies Munich, and Priority Technology makes a go-private deal with an investor group helmed by the company's chair and CEO.
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September 25, 2026
Duane Morris To Settle Employee's Tax Withholding Claim
Duane Morris LLP has agreed to private mediation to settle a proposed class action by an employee who alleged that the firm failed to withhold taxes for workers who were misclassified as partners, according to a notice.
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September 25, 2026
Weekly Internal Revenue Bulletin
The Internal Revenue Service's weekly bulletin, released Friday, consisted of just one item, proposed rules that would clarify the 2025 federal budget bill's reduction to the range of expenses that companies must allocate to overseas affiliates when calculating foreign tax credits.
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September 24, 2026
DC Circ. Questions Panhandle's Claim To Excess Tax Funds
A D.C. Circuit judge questioned whether Panhandle Eastern Pipe Line should be allowed to pocket excess sums collected under its income tax allowance from prior years that were placed in a separate account for accumulated deferred income taxes.
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September 24, 2026
Tax Court Tosses Challenge Of Charitable Deductions Denial
The U.S. Tax Court dismissed an Illinois woman's bid to challenge the Internal Revenue Service's denial of her claimed charitable contribution deductions and the imposition of penalties, saying Thursday it lacks jurisdiction in the case because she failed to timely file a petition.
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September 24, 2026
Senate Panel Advances IRS Chief Counsel, Tax Court Picks
President Donald Trump's picks for Internal Revenue Service chief counsel and a U.S. Tax Court judgeship were approved by the Senate Finance Committee on Thursday, clearing the path for a full Senate vote.
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September 24, 2026
Tax Court OKs $1.3M Excise Fee Tied To Man's Charity Loan
The U.S. Tax Court affirmed the $1.3 million excise tax the Internal Revenue Service imposed against a businessman Thursday, finding that the Tennessee charity he oversees had improperly loaned $590,000 without interest to his real estate investment firm.
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September 24, 2026
IRS Extends Grace Period For Int'l Money Transfer Tax Errors
The Internal Revenue Service extended relief from penalties for U.S. financial institutions that handle overseas money transfers and that must accurately deposit excise taxes as required under the budget reconciliation bill enacted in 2025, the agency announced Thursday.
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September 24, 2026
IRS Updates Per-Diem Deduction Rates For Business Travel
Per-diem rates used to compute business travel expense tax deductions will be $329 for travel to high-cost areas and $230 for travel to low-cost ones starting in October, the Internal Revenue Service said Thursday.
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September 24, 2026
IRS Finalizes Increase In Estate Tax Closing Letter Fee
The Internal Revenue Service finalized a $76 fee for taxpayers to request a letter that confirms the agency has received and finished examining an estate tax return, increasing the fee from $56, according to a final rule released Thursday.
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September 23, 2026
Goldstein Not Leaving Prison Any Time Soon, 4th Circ. Rules
The Fourth Circuit balked late Wednesday at freeing Tom Goldstein from prison as he fights felony convictions, and it rejected fast-track review of the renowned appellate advocate's trial, indicating he'll likely spend substantial time behind bars even if his appeal succeeds.
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September 23, 2026
Overseas Income Regs May Cause M&A Headaches
Regulations proposed by the U.S. Treasury Department would provide clean breaks for companies that sell more than 50% of their foreign affiliates, but transactions that fall below this threshold could still expose corporations to post-closing tax risks and deal friction.
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September 23, 2026
Fla. Couple Did Not Properly Back Deductions, Tax Court Says
A Florida couple failed to properly substantiate reported tax deductions, including claims to property damage from a 2018 hurricane, items donated to charities and travel expenses, the U.S. Tax Court said Wednesday, ruling the taxpayers had underreported their income.
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September 23, 2026
Home Health Co. Asks Tax Court To Invalidate IRS Levy
An in-home health company is not liable for nearly $236,000 in civil penalties imposed by the Internal Revenue Service, it told the U.S. Tax Court, urging it to determine that the agency's proposed levy action should not have been sustained.
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September 23, 2026
Aventis Denies Owning Assets In $40M Tax Fight At 3rd Circ.
The U.S. Tax Court contradicted its own findings by deciding that pharmaceutical company Aventis controlled assets in an investment vehicle with a French affiliate, couldn't deduct related payments and was liable for nearly $40 million in income taxes, the company told the Third Circuit.
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September 23, 2026
Judge Dismisses Son's Bid To Recoup Parents' Tax Payments
A Tennessee federal judge dismissed a son's bid for a refund of federal income taxes for his dead parents' estates, finding he failed to establish that his father sufficiently participated in an amusement equipment manufacturing business to claim associated losses.
Expert Analysis
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What A Court Doc Audit Reveals About Erroneous Filings
My audit of 1,522 court documents from last month found that over 95% contained at least one verifiable error, with fewer than 1% showing clear indicators of artificial intelligence use — highlighting above all else that lawyers may want to focus most on strengthening their review processes, says Elliott Ash at ETH Zurich.
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Mich. Banking Brief: All The Notable Legal Updates In Q1
Michigan's financial services sector saw several significant developments in 2026's first quarter, including the state Department of Insurance and Financial Services' issuance of a bulletin on the use of artificial intelligence and the Michigan House's introduction of a bill based on the Model Money Transmission Modernization Act, say attorneys at Dykema.
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Navigating The Perks Of Qualified Opportunity Zones 2.0
The second iteration of the qualified opportunity zone program, effective Jan. 1, 2027, will introduce new tax incentives for rural real estate development, but these benefits can only be realized if proper governance is a priority, including clear documentation and securities law compliance, says Coni Rathbone at VF Law.
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Getting The Most Out Of Learning And Development Programs
Excerpt from Practical Guidance
Junior associates can better develop the legal, business and interpersonal skills they need for long-term success by approaching their firms’ learning and development programs armed with five tips for getting the most out of these resources, says Lauren Hakala at Reed Smith.
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AI Presents A Make-Or-Break Moment For Outside Counsel
The rapid adoption of artificial intelligence by corporate legal departments is forcing a long-overdue reset of the relationship between inside and outside counsel, and introducing a significant opportunity to shed frustrating inefficiencies and strengthen collaboration for firms willing to embrace the shift, says Intel Chief Legal Officer April Miller Boise.
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8 Tariff Refund Questions For Restructuring Professionals
For restructuring and turnaround professionals, seeking refunds following the U.S. Supreme Court's recent decision invalidating tariffs imposed under the International Emergency Economic Powers Act raises several questions about how to capture legitimate recoveries while protecting an enterprise from the consequences of its own history, says Jonny Frank and Laura Greenman at StoneTurn, and Andrew Popescu at Province.
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5 Tips For Navigating Your Firm's All-Attorney Summit
Excerpt from Practical Guidance
Law firm retreats should be approached strategically, as they present valuable opportunities to advance both the firm's objectives and attorneys' professional development through meaningful participation, building and strengthening internal relationships, and proactive follow-up, says James Argionis at Cozen O’Connor.
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How Bankrupt Cos. Can Seek Refunds For Illegal Tariffs
In light of the U.S. Supreme Court's recent decision striking down President Donald Trump's International Emergency Economic Powers Act tariffs as illegal, some companies may have strong prospects for recovering refunds from the government, and trustees in bankruptcy may have a significant role to play in seeking such recovery, say attorneys at Stinson.
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Legal And Industry Impacts Of America's Maritime Action Plan
America's Maritime Action Plan, unveiled by the White House last month, introduces changes to trade investigations, a new maritime trust fund and more — adding regulatory and compliance obligations for companies and counsel, but also new avenues for client engagement in project finance, contract negotiation and dispute resolution, say attorneys at Holland & Knight.
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4 Ways To Help CBP Curb Shell Co. Import Schemes
Shifting to a proactive rather than reactive enforcement posture in addressing shell companies set up to skirt tariffs requires equipping U.S. Customs and Border Protection with enhanced investigative authorities, better intelligence support, and mechanisms to identify and hold accountable the ultimate illicit actors, say attorneys at Kelley Drye.
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7 Steps For Gov't Contractors In Post-IEEPA Tariff Landscape
In response to U.S. Supreme Court's recent decision to strike down tariffs issued by the Trump administration under the International Emergency Economic Powers Act, there are several actions federal contractors should take to preserve their place in any refund waterfall, and to manage audit, overpayment and False Claims Act risk, say attorneys at Holland & Knight.
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The Benefits Of Choosing A Niche Practice In The AI Age
As artificial intelligence becomes increasingly accessible, lawyers with a niche practice may stand out as clients seek specialized judgment that automation cannot replicate, but it is important to choose a niche that is durable, engaging and a good personal fit, says Daniel Borneman at Lowenstein Sandler.
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Section 122 Tariffs Show Shift In Strategy, Not Trade Policy
By imposing temporary tariffs under Section 122 of the Trade Act as a stopgap measure while it pivots to less transitory statutory authorities, the Trump administration sent a clear message that the U.S. Supreme Court’s decision in Learning Resources v. Trump, invalidating duties imposed under the International Emergency Economic Powers Act, will not precipitate a change in policy direction, say attorneys at Snell & Wilmer.