Federal
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May 03, 2023
Sysco Challenges IRS' Denial Of $115M In Foreign Tax Credits
Sysco Corp. has challenged the IRS' decision to deny it nearly $115 million in foreign tax credits on offshore income it brought home under the 2017 federal tax overhaul's transition tax, telling the U.S. Tax Court that the agency exceeded its authority.
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May 03, 2023
Divided Full 6th Circ. Won't Rehear ARPA Tax Suit
The Sixth Circuit declined Wednesday to rehear a panel's holding that the federal government can't enforce a provision barring Tennessee from using federal coronavirus relief funds to offset revenue reductions such as tax cuts.
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May 03, 2023
Ex-College Owner Seeks $35M Tax Refund After Merger Fight
The former owner of several for-profit colleges is entitled to a $34.7 million tax refund stemming from a post-merger settlement he reached with the schools' buyer over claims that the institutions deceived students and the government, he said in a suit filed in California federal court.
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May 03, 2023
Eaton Says IRS Wrongly Lowered Dividend Income By $193M
The Internal Revenue Service improperly reduced the dividend income of a U.S. subsidiary of multinational power company Eaton by nearly $193 million in 2010, the company said in a U.S. Tax Court petition.
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May 03, 2023
11th Circ. Won't Wipe Trump Pardonee's Tax Evasion Record
A Florida real estate investor pardoned by former President Donald Trump after he pled guilty to a tax crime can't get his criminal record wiped, as the Eleventh Circuit ruled Wednesday that a lower court lacked the authority to hear his expungement request.
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May 03, 2023
Partnership Didn't Understate 2011 Income, Tax Court Says
A Missouri partnership did not underreport its income for the 2011 tax year, the U.S. Tax Court found Wednesday, concluding that the partnership can exclude interests in a company that it indirectly received under Internal Revenue Service guidance.
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May 03, 2023
Court Urged To Hold Couple Liable For $1M In FBAR Penalties
Enough proof exists of a couple's recklessness for a federal judge to find they owe nearly $1 million in penalties for willfully failing to report their foreign bank account, the U.S. government said in New York federal court Wednesday.
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May 03, 2023
Carbon Taxes Don't Replace Green Policy, Report Says
Carbon taxes don't dependably deliver on the argument that they can replace a complex environmental regulatory ecosystem, as such taxes implemented worldwide thus far haven't usually gone hand in hand with substantial environmental regulation repeals, the conservative-leaning Tax Foundation said in a report.
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May 03, 2023
Mich. Anesthesiologist Owes $930K In FBAR Penalties
A Michigan anesthesiologist owes $930,000 in penalties for his willful failure to file reports of his foreign bank accounts, a federal court said in an order granting the government's request for summary judgment.
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May 02, 2023
Bondholders Can't Sue Argentina Over $35M Default
A trio of bondholders cannot sue Argentina to recover more than $35 million owed after the country defaulted since they had placed their bonds in trust with an entity that opted not to pursue the debt, the Second Circuit ruled on Tuesday.
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May 02, 2023
Tax Court Adds Unreported Interest, Dividend To Man's Income
A Washington man's unreported interest and dividend income for 2018 are taxable, the U.S. Tax Court ruled Tuesday.
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May 02, 2023
Mich. Woman Must Pay For Unreported $50K, Tax Court Says
A woman who failed to report just over $50,000 in wages she received as a state employee in Michigan on her 2018 tax return must pay taxes on them and faces an accuracy-related penalty, a U.S. Tax Court special trial judge found.
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May 02, 2023
No Delay In Voiding IRS Notice On Abusive Trusts, Judge Says
A Michigan federal judge refused to delay invalidating IRS guidance flagging abusive trust arrangements for employees while the agency sought to appeal the order, saying the government failed to adequately justify its request.
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May 02, 2023
US, Engineer Want $4.3M FBAR Suit Decided Without Trial
The U.S. and an engineer fighting a $4.3 million penalty have asked a California federal court to decide her case, in which the government argues she recklessly disregarded her responsibility to disclose her full holdings, without trial, according to a joint motion filed Tuesday.
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May 02, 2023
Split DC Circ. Finds IRS Tax Shelter Penalties Timely
The Internal Revenue Service wasn't too slow to assess around $256,000 in penalties against a man who promoted abusive tax shelters, a split D.C. Circuit panel ruled Tuesday, finding a three-year deadline for tax assessments didn't apply to the penalty assessment.
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May 02, 2023
Tax Court Says Petition Filed Too Late In Court's Time Zone
The U.S. Tax Court can't review an Alabama couple's case challenging a notice of deficiency because they filed their petition after the submission window closed in the time zone where the court is located, the court said Tuesday.
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May 02, 2023
US, Maryland Man Have Tentative Deal In $574K FBAR Case
The U.S. government is prepared to settle the case of a Maryland man who it claims owes almost $574,000 in foreign bank account reporting penalties, according to documents filed in Maryland federal court.
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May 02, 2023
Altria Sues For $106M Tax Refund Over Anheuser-Busch Stock
Tobacco giant Altria Group Inc. is owed a $105.7 million tax refund from the Internal Revenue Service, it told a Virginia federal court, arguing that it overstated its tax liabilities stemming from its interests in beverage company Anheuser-Busch, among other claims.
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May 02, 2023
Ga. Man Fails To Respond To Court, Owes $2.7M In Taxes
A Georgia business owner was ordered to pay $2.7 million in unpaid taxes after he refused to answer the federal government's complaint against him seeking to recover the money, according to a default judgment entered against him by a federal court.
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May 02, 2023
Colo. Farm Couple Cite Hardships In Bid For $3.4M Tax Refund
A Colorado couple are seeking a $3.4 million refund from the Internal Revenue Service based on the economic and personal hardships that their family and farm suffered, according to a complaint filed in federal court.
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May 02, 2023
Fla. Storm Victims Get Extensions On Federal Taxes
Taxpayers affected by tornadoes and storms in Broward County, Florida, will have until Aug. 15 to submit some returns and payments, the Internal Revenue Service said Tuesday.
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May 02, 2023
Compatibility Of Min. Tax Rules Unclear, Says Trade Org
It is unclear how compatible the model rules for the globally agreed-upon corporate minimum tax will be with existing international tax rules, the National Foreign Trade Council said in a letter to the Organization for Economic Cooperation and Development.
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May 02, 2023
Klehr Harrison Taps Feingold & Alpert Vet As Tax Group Head
Klehr Harrison Harvey Branzburg LLP has added a more than 30-year veteran from Feingold & Alpert LLP to serve as chair of its tax group, the firm announced on Monday.
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May 02, 2023
Texas Law Firm Agrees To Pay Taxes, Undergo IRS Monitoring
A Texas law firm accused by the IRS of failing to pay almost $587,000 in payroll taxes has agreed to pay its outstanding liabilities and submit to three years of monitoring by the agency, according to a Texas federal court.
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May 02, 2023
Treasury Proposes Rules For Repatriating Intangible Property
The U.S. Treasury Department proposed regulations Tuesday for certain situations when U.S. corporations bring home intangible property that they'd previously transferred to a foreign company.
Expert Analysis
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Steps For Universities As DOJ Shifts Foreign Influence Policy
Notwithstanding Wednesday's U.S. Department of Justice announcement terminating the initiative targeting Chinese influence and raising the bar for criminal prosecutions, universities should ensure their compliance controls meet new disclosure standards and that they can efficiently respond to inquiries about employees' foreign connections, say attorneys at Covington.
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How Gold Coin Tax Ruling May Apply To IRA Crypto Holdings
The U.S. Tax Court’s recent decision in McNulty v. Commissioner, affirming that a self-directed individual retirement account owner received taxable distributions in taking possession of her IRA’s gold coins, may have troublesome applications for retirement accounts with cryptocurrency holdings, says Luke Bailey at Clark Hill.
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Why I'll Miss Arguing Before Justice Breyer
Carter Phillips at Sidley shares some of his fondest memories of retiring Justice Stephen Breyer both inside and out of the courtroom, and explains why he thinks the justice’s multipronged questions during U.S. Supreme Court oral arguments were everything an advocate could ask for.
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Corporate Reporting Considerations As Tax Meets ESG
With the U.S. Securities and Exchange Commission filing season upon us amid increasing pressure for greater transparency around effective tax rates and tax strategies, multinational companies must decide how they will approach voluntary tax reporting and prepare their responses if they want to control the narrative, say Michael Lebovitz and Jenny Austin at Mayer Brown.
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How To Navigate Equity Rollovers In A Tight M&A Market
As heavy competition for acquisition targets allows buyers to be more flexible in fulfilling their desire for management to roll equity and invest with them, businesses should be mindful that equity rollover transactions, which take many forms, also require thorough review as part of the overall transaction assessment, says Joshua Klein at Neal Gerber.
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11th Circ. Ruling Moves Circuits Closer To Tax Procedure Split
The Eleventh Circuit's recent decision in the conservation easement case Hewitt v. Commissioner of Internal Revenue, holding a long-standing tax regulation procedurally flawed under the Administrative Procedure Act, is unusual and may presage a circuit split over the APA's applicability in tax cases, say Maria Jones and Samuel Lapin at Miller & Chevalier.
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How Justices May Interpret Statutory Time Bar In Tax Context
In Boechler PC v. Commissioner, the U.S. Supreme Court will rule on whether a tax court filing deadline acts as a jurisdictional limitation, and whether to broaden a jurisprudential trend that requires Congress to clearly state its intent if statutory time periods are to limit jurisdiction, say Saul Mezei and Terrell Ussing at Gibson Dunn.
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Money Laundering Regs Too Unwieldy To Police Art Market
As the arts and antiquities trade awaits the U.S. Department of the Treasury's new money laundering regulations — which apply the Bank Secrecy Act to the arts for the first time — whether they are reasonable, optimal or practical remains in question, says Alexandra Darraby at The Art Law Firm.
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Why US Businesses May Stop Accepting Cryptocurrency
New reporting requirements from the IRS and Financial Crimes Enforcement Network could be game changers that dramatically curtail U.S. businesses that accept cryptocurrency, says cybersecurity consultant John Reed Stark.
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The Highs And Lows Of Tax Controversy In 2021
Lawrence Hill at Steptoe & Johnson reviews the ups and downs of tax controversy practice in 2021, including the continued effects of the pandemic, troubling decisions on attorney-client privilege and an IRS comeback on transfer pricing.
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A Look At Tax Treatment Of Noncompetes In M&A: Part 2
Excerpt from Practical Guidance
Covenants that restrict a seller of business assets from competing against the purchasing party can be prone to challenges because the allocation of value to intangible assets is a subjective exercise with significant tax implications that may affect the merits of the deal, says Peter Miller at LexisNexis.
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A Look At Tax Treatment Of Noncompetes In M&A: Part 1
Excerpt from Practical Guidance
In negotiating to consummate a deal, parties must pay attention to the tax consequences of covenants that restrict a seller of business assets from competing against the purchasing party, says Peter Miller at LexisNexis.
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How Budget Bill Could Affect Employer Health, Benefit Plans
Following the House's recent passage of President Joe Biden’s $1.75 trillion spending bill — the Build Back Better Act — employers should carefully consider several of the proposal’s health care and benefits provisions, which could pose immediate compliance challenges if the act is signed into law this year, say Anne Hall and Tim Kennedy at Hall Benefits Law.