Federal
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February 12, 2024
IRS Updates Employer Health Penalty Index For 2025
The Internal Revenue Service published guidance Monday updating indexing adjustment amounts for calculating employer health coverage penalties in 2025.
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February 09, 2024
Pillar 2 Shouldn't Hit 'Double Dipping' Loss Rules, CPAs Say
The Pillar Two international minimum tax agreement should not impact U.S. rules that are designed to prevent companies from "double dipping" with a single economic loss, the American Institute of Certified Public Accountants recommended in a letter made public Friday.
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February 09, 2024
Senate GOP Push For Tax Bill Changes Could Slow Progress
Senate Republicans' desire to add their own priorities to the tax bill recently passed by the House, along with a jam-packed Senate agenda, could delay the proposal in its journey to President Joe Biden's desk.
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February 09, 2024
6th Circ. Backs Fine Against Doctor For Willful FBAR Violation
A Michigan doctor clearly met the standard for a willful failure to file reports of foreign bank accounts, the Sixth Circuit said, confirming a lower court decision resulting in a $930,000 penalty against him.
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February 09, 2024
The Tax Angle: SALT, Housing Credits, Opportunity Zones
House Democrats held their two-day legislative issues conference this week, formulating plans to win majority control of the chamber in November so they can shape the policy agenda next year when parts of the GOP's 2017 tax law expire. Here's a peek into a reporter's notebook at a few of the developing tax stories that Democrats discussed at their meeting.
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February 09, 2024
Jordan Calls For Investigation Into DOJ's Deal With IRS Leaker
House Judiciary Committee Chairman Jim Jordan is investigating whether federal prosecutors were politically motivated to allow the former IRS contractor who leaked former President Donald Trump's tax returns to plead guilty to a single count of illegal disclosure, calling the arrangement "a sweetheart deal."
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February 09, 2024
Weekly Internal Revenue Bulletin
The Internal Revenue Service issued its weekly bulletin Friday, which included a ruling regarding the treatment of unused housing credit amounts allocated to a state.
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February 09, 2024
Taxation With Representation: Sullivan & Cromwell, Kirkland
In this week's Taxation With Representation, California Resources Corp. acquires Aera Energy, ZeroFox Holdings goes private, and Acerinox purchases Haynes International.
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February 08, 2024
NJ, Ft. Lee Mayor Fail To Merge NY Congestion Pricing Suits
A federal judge on Thursday rejected a bid to consolidate two lawsuits — one filed by New Jersey, the other by the mayor of a Garden State town — seeking to halt New York City's congestion pricing toll plan, ruling that the suits make similar claims but seek different remedies.
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February 08, 2024
3M Tells 8th Circ. IRS Used Invalid Regs To Allocate Income
Multinational conglomerate 3M urged the Eighth Circuit to reverse a U.S. Tax Court decision upholding regulations that the IRS had used to disregard Brazilian legal restrictions when allocating the company's income, contending that the rules contravene an underlying transfer pricing statute.
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February 08, 2024
First Returns Submitted Using IRS Free E-File Pilot Program
Early testers of the Internal Revenue Service's free electronic tax return pilot program successfully filed the first returns using the system, an agency official said Thursday.
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February 08, 2024
Tax Court Frees Woman From Ex's Omitted Income
Meeting the criteria for innocent spouse relief, a Wisconsin woman is not liable for a portion of a tax liability from the year her divorce was finalized, the U.S. Tax Court ruled Thursday.
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February 08, 2024
Tax Court Rejects Guardian's Claims For Tweaked Treatment
An Illinois woman is ineligible for head-of-household status as well as the earned income tax credit because her dependent spent most of the year living elsewhere, the U.S. Tax Court ruled Thursday.
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February 08, 2024
US Grantor Trusts Need Int'l Reporting Clarity, Treasury Told
The U.S. Treasury Department should clarify that domestic grantor trusts aren't required to file international information returns, the American Institute of Certified Public Accountants said in a letter made public Thursday, claiming that current uncertainty has led to redundant reporting.
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February 08, 2024
DC Circ. Skeptical Of 5-Hour Energy Partner's Tax Challenge
D.C. Circuit judges seemed skeptical of a Canadian citizen's argument that $6.5 million in gains she received from selling a share of a U.S. partnership that sold 5-Hour Energy drinks shouldn't be federally taxed, grappling to understand her reasoning during oral arguments Thursday.
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February 08, 2024
IRS Mostly Compliant With Purchase Card Rules, TIGTA Says
The Internal Revenue Service is mostly compliant with regulations on purchase card spending, the Treasury Inspector General for Tax Administration said in a report published Thursday.
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February 08, 2024
Idaho Woman Contests Lien Over Foreign Tax Form
The Internal Revenue Service cannot unilaterally impose penalties for failing to timely file a tax form for U.S. citizens involved with certain foreign corporations, an Idaho woman told a federal court, asking it to declare invalid a $350,000 lien placed on her family home.
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February 08, 2024
IRS Electronic Tax Committee Schedules Meeting For March
The Internal Revenue Service's Electronic Tax Administration Advisory Committee will hold its next meeting March 20, the IRS said Thursday.
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February 07, 2024
IRS Memo Highlights Tensions In Arm's-Length Loan Pricing
A recent IRS advice memorandum disregards certain details about affiliated companies when treating them as unrelated businesses for the purpose of pricing an intercompany loan, raising questions about how the arm's-length standard should apply to corporate group financing arrangements.
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February 07, 2024
US, Telecom Co. Disagree On Taxes Owed In $283M Suit
The federal government and a telecommunications company remain at odds over how much tax is owed following a ruling in a different case that the company wasn't entitled to a $109 million refund because it exploited a tax loophole, a Colorado federal judge heard Wednesday.
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February 07, 2024
US Eyes Requiring Reports On All-Cash Real Estate Transfers
Professionals involved in real estate transfers in the U.S. would be required to report on the beneficial owners of trusts and other legal entities that receive residential property in any all-cash transactions under draft regulations released Wednesday that aim to tackle tax evasion and corruption.
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February 07, 2024
Ga. Man's Marital Settlement Not Deductible, Tax Court Says
Payments made by a Georgia man to his ex-wife as part of a marital settlement do not qualify as alimony payments, preventing them from being deductible from his federal income taxes, the U.S. Tax Court ruled Wednesday.
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February 07, 2024
Tax Deadlines In W.Va. Postponed Following Severe Weather
The Internal Revenue Service said Wednesday that it has postponed certain deadlines for West Virginia taxpayers affected by severe weather late last year.
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February 07, 2024
NC Man Failed To Pose 'Meaningful Challenge,' Tax Court Says
A North Carolina man did not make a "meaningful challenge" to a tax liability assessed to him, the U.S. Tax Court said Wednesday, making him liable for more than $8,000.
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February 07, 2024
Orrick Adds Ex-Greenberg Traurig Energy Pro In Chicago
A former Greenberg Traurig LLP shareholder has reunited with her mentor after jumping to Orrick Herrington & Sutcliffe LLP's energy and infrastructure team in Chicago.
Expert Analysis
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Atty-Client Privilege Arguments Give Justices A Moving Target
Recent oral arguments before the U.S. Supreme Court in a case regarding the scope of the attorney-client privilege appeared to raise more questions about multipurpose counsel communications than they answered, as the parties presented shifting iterations of a predictable, easily applied test for evaluating the communications' purpose, say Trey Bourn and Thomas DiStanislao at Butler Snow.
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Industry Takeaways From IRS Guidance On EV Tax Credits
The IRS and U.S. Department of the Treasury’s recently issued documents on tax credit eligibility for clean vehicle purchases showcases three important points for the electric vehicle industry, including emphasis on the importance of in-service dates, guidance on how leased vehicles could be evaluated, and insight into manufacturing requirements, says Levi McAllister at Morgan Lewis.
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States Must Align Distribution Age Rules With Secure 2.0
To prevent unintended escheatment of retirement benefits, states will need to undertake legislative efforts to amend unclaimed property standards that conflict with the Secure 2.0 Act's required minimum distribution age increases, says Michael Giovannini at Alston & Bird.
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The IRS' APA Rulemaking Journey: There And Back Again
Attorneys at Dentons examine recent challenges in which taxpayers successfully argued Internal Revenue Service rulemaking was invalid under the Administrative Procedure Act, how tax exceptionalism and U.S. Supreme Court regulatory deference prompted such challenges, and similar challenges the agency will likely face following this line of cases.
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Tax Court Ruling Should Allay Post-Boechler Concerns
An unusually long U.S. Tax Court ruling in Hallmark Research Collective v. Commissioner, confirming that deficiency deadlines are jurisdictional, should reassure practitioners concerned about the statutory time limit implications of last year's U.S. Supreme Court Boechler v. Commissioner ruling and reaffirm the vital role of the Tax Court itself, says James Creech at Baker Tilly.
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Unpacking The Interim Guidance On New Stock Buyback Tax
The U.S. Department of the Treasury and Internal Revenue Service's recent notice on applying the newly effective excise tax on stock repurchases provides much-needed clarity on the tax's scope, which is much broader than anticipated given its underlying policy rationale, say attorneys at Eversheds Sutherland.
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The Cryptocurrency Law And Policy Outlook For 2023
The digital asset sector saw significant losses in 2022, amid a continuing lack of guidance about how such assets should be taxed, but new government regulation, growing participation by traditional financial players and other factors should spur recovery in the coming year, says Joshua Smeltzer at Gray Reed.
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IRS Will Use New Resources To Increase Scrutiny In 2023
The new year promises to be a busy one for the Internal Revenue Service, which is poised to apply the boost in funding provided by the Inflation Reduction Act to bolster and expand its enforcement capability, and there are four areas to watch, say attorneys at Skadden.
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How Cos. Can Prep For Alcohol Beverage Excise Tax Changes
The Craft Beverage Modernization Act will soon undergo a transition in administration to the Alcohol and Tobacco Tax and Trade Bureau, and importers or producers should address any issues that may arise under the act, such as foreign producers not being familiar with the mechanics of the TTB, say Louis Terminello and Bradley Berkman at Greenspoon Marder.
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New R&E Capitalization A Costly Change For Companies
Unless modified by legislation in the coming weeks, radical new capitalization rules for research and experimentation costs mean companies should brace for the loss of a major tax break starting with their 2022 tax returns, says Nancy Dollar at Hanson Bridgett.
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Congress Is Right To Advance Comprehensive Retirement Bill
As 2022 comes to a close, Congress' move to include the Secure 2.0 Act, a comprehensive retirement bill, in its omnibus spending package will bring retirees and those nearing retirement more peace of mind regarding their 401(k)s, IRAs and pensions, while reducing red tape for employers, says Andy Banducci at the ERISA Industry Committee.
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10 Pre-Deal Considerations In Cross-Border M&A Transactions
Excerpt from Practical Guidance
Sergio Galvis and Benjamin Kent at Sullivan & Cromwell discuss steps that can be taken to preemptively address important issues that acquirers of foreign businesses encounter in cross-border M&A transactions, including tax planning and political risk.
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Clean Hydrogen Developers Should Track Incentives, Risks
Clean hydrogen project developers and investors should be aware of new funding opportunities from the U.S. Department of Energy and tax benefits under the Inflation Reduction Act, but must also guard against risks associated with new and evolving technologies, say Pamela Wu and Kirstin Gibbs at Morgan Lewis.