Federal

Expert Analysis

• 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.

• 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.

• 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.

• 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.

• 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.

• 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.

• 3 Forces That Will Define Sales Tax Compliance In 2022

  

  As we head into 2022, it's likely that many of the legal and cultural shifts we saw this year — such as increased adoption of economic nexus and marketplace facilitator laws, growth in state budgets and continuation of remote work — will define sales tax compliance in the new year, says Liz Armbruester at Avalara.

• When And How To Depose Fact Witnesses Remotely In 2022

  

  Tim Tryniecki and Thomas Mudd at MG+M offer a series of practice tips for successfully conducting remote depositions of often-inexperienced fact witnesses, as the virtual court proceedings sparked by COVID-19 look set to become a part of the legal landscape next year.

• EU, US Carbon Import Tax Proposals: What Cos. Must Know

  

  With the European Union working on a carbon border adjustment mechanism, and congressional Democrats formulating their own carbon import tax plans, U.S. businesses — especially those in emissions-intensive, trade-exposed industry sectors — could face adverse trade effects, supply chain problems and increased transactional costs, say attorneys at Hogan Lovells.

• Navigating CARES Act Social Security Tax Deferral Payments

  

  Attorneys at Morgan Lewis examine Internal Revenue Service guidance on payment of employer-share social security tax deferrals due Jan. 3 under the Coronavirus Aid Relief and Economic Security Act, and offer tips for avoiding costly underpayment and late deposit penalties.

• Tech Improvements That Can Help Gov't Tackle FOIA Backlog

  

  Government agencies can implement effective technological solutions that will help them address the growing backlog of Freedom of Information Act requests, and avoid costly noncompliance litigation, by taking steps to identify agency-specific needs, develop cohesive strategies and obtain leadership buy-in, say Ken Koch and Erica Spector at KPMG.

• IRS Memo Helps Clarify Research Credit Filing Requirements

  

  A recently published Internal Revenue Service chief counsel memorandum offers long-awaited guidance about information requirements for taxpayers seeking research credit refunds and provides helpful notice of the agency’s litigating position where credits are denied, say Deborah Roth and Brian Coddington at Source Advisors.

• Questions To Ask If Doing Business In A Corruption Hot Spot

  

  Businesses facing new scrutiny after the U.S. Department of Justice's recently announced task force for combating human trafficking in Central America, the release of the Pandora Papers and continuing fallout from 2019's Panama Papers, should address compliance risks by having employees ask three questions about every transaction, say attorneys at White & Case.