Don't want ads? Subscribe or login now.

Federal

July 25, 2023
Man Urges Full 9th Circ. To Hear Tax Offset Challenge

The full Ninth Circuit should review a panel decision that affirmed a lower court's dismissal of a man's suit challenging the U.S. Treasury Department's use of his tax overpayments to offset his past-due child support payments, he told the appeals court.
July 25, 2023
Ore. 'Serial Nonfiler' Owes Tax On $750K, Tax Court Says

The owner of an Oregon storage business who failed to file federal income tax returns for at least 14 years used fictitious trusts and tax-protester arguments to hide more than $750,000 in income from the IRS, the U.S. Tax Court said Tuesday.
July 25, 2023
Man Owes $12K In Taxes, Frivolity Penalty, Tax Court Says

A New York man owes $12,000 in taxes and a penalty for making groundless challenges to his tax liability, the U.S. Tax Court ruled Tuesday, saying his assertions that his wages aren't income have been repeatedly rejected by the courts for being frivolous.
July 25, 2023
Ways And Means Chair Seeks Info On Destroyed Tax Returns

Internal Revenue Commissioner Daniel Werfel should hand over to Congress the documents related to the IRS' decision to destroy 30 million taxpayer filings in 2021, the House Ways and Means chairman said in a letter Tuesday.
July 25, 2023
Law360's Diversity Snapshot: What You Need To Know

Firms continue to face pressure to diversify their attorney workforce, and they are slowly but surely making progress, according to this year's Diversity Snapshot. Here's our data dive into minority representation at law firms in 2022.
July 25, 2023
IRS Urged To Create Callback Performance Goals

The Internal Revenue Service should establish baseline goals that allow it to better measure the success of its customer callback program, the Treasury Inspector General for Tax Administration said in a report released Tuesday.
July 24, 2023
IRS Ending Most Surprise Revenue Officer Visits, Chief Says

Internal Revenue Service revenue officers will no longer make unannounced visits to homes and businesses except under rare circumstances, agency commissioner Daniel Werfel said Monday.
July 24, 2023
IRS Follows Rules In $18M Easement Case, Tax Court Says

An Internal Revenue Service supervisor properly signed off on penalties imposed on a Georgia partnership that claimed an $18.6 million conservation easement deduction that the agency disallowed, the U.S. Tax Court said Monday.
July 24, 2023
Settlement Underway In $1M Tax Suit, Ex-Cannabis Exec Says

An ex-cannabis company executive and his former employer, whom he accused of sticking him with $1.2 million in tax liabilities after illegally reclassifying him as an independent contractor, have reached a tentative settlement, according to a filing Monday in New York federal court.
July 24, 2023
Tax Court Hits Miss. Couple With $65K Tab, Plus Warning

A Mississippi radiologist and his wife who have repeatedly claimed that U.S. citizens don't have to pay federal income taxes owe $65,000 in liabilities for 2018, the U.S. Tax Court ruled Monday, issuing the couple a warning against making such frivolous arguments.
July 24, 2023
Couple's FBAR Failures Were Willful, US Says In $120M Case

A California couple used a "staggering" tax shelter involving over 270 foreign accounts to conceal income from the IRS, the U.S. government told a federal court in its $120 million suit against them, seeking a determination that their failure to report their overseas holdings was intentional.
July 24, 2023
Tax Court Backs IRS Levies Over Couple's $101K Bill

The Internal Revenue Service did no wrong in upholding levy notices against a Massachusetts couple in pursuit of an outstanding tax liability of almost $101,000, the U.S. Tax Court said Monday.
July 24, 2023
TIGTA Urges IRS To Add Cyberthreat Hunting Rules To Manual

The Internal Revenue Service should put requirements for its proactive cyberthreat detection program in the agency's manual, the Treasury Inspector General for Tax Administration said in a report released Monday.
July 24, 2023
Bank Says It's Owed $2.2M In Tax Refunds After Merger

A Montana bank that took on $6.6 million in losses during a pandemic merger asked a federal court for more than $2.2 million in tax refunds, saying the Internal Revenue Service has delayed responding to its request to honor carryback rules.
July 24, 2023
Fla. Co. Seeks $1.1M Tax Refund Based On S Corp. Election

A Florida company is owed a tax refund of $1.1 million, plus interest, for 2020 because it elected to be an S corporation, the company told a federal court.
July 21, 2023
Treasury Announces Further Foreign Tax Credit Relief

The U.S. Treasury Department issued a notice Friday announcing temporary relief this year for certain foreign taxes paid but emphasized that the relief will not be available for foreign digital services taxes paid.
July 21, 2023
Del. Asks Supreme Court To Stop IRS Microcaptive Summons

Delaware's insurance department asked the U.S. Supreme Court on Friday to stop a Third Circuit mandate requiring the department to comply with an IRS summons for microcaptive insurance records, with the department saying the appellate court's erroneous order would force the state to break its own laws.
July 21, 2023
Jury Lets Co. Off Hook For $400M In Tax On Restored Trucks

A truck company doesn't owe roughly $400 million in excise taxes, penalties and interest for its refurbished tractors after a Tennessee federal jury concluded that the overhauled vehicles were eligible for a safe harbor providing an exemption from the tax.
July 21, 2023
Top International Tax Policy To Watch In 2nd Half Of 2023

Many countries will grapple with the administrative and legislative details of adopting a 15% global minimum tax in the coming months while the OECD attempts to finalize its profit reallocation approach and the United Nations formalizes its role examining similar issues. Here, Law360 examines the top international tax policies to look out for in the second half of the year.
July 21, 2023
NJ Sues Feds Over 'Reckless' New York Congestion Pricing

New Jersey accused the federal government Friday of blindly endorsing New York's "reckless" first-in-the-nation plan to charge all drivers entering midtown Manhattan a fee and of neglecting to fully assess the financial and environmental costs of diverting commuters.
July 21, 2023
RI Estate Owed $454K Tax Penalty Refund, Court Told

The Internal Revenue Service owes a Rhode Island man's estate a nearly $454,000 refund for a penalty it paid for failing to file and pay its taxes, the estate told a federal court, arguing that its former attorney advised that it didn't owe taxes.
July 21, 2023
Russian Gas Exec's FBAR Conviction Stands

A Florida federal judge refused to acquit the former chief financial officer of a Russian gas company who was found guilty of failing to report foreign bank accounts, saying there was enough evidence to convict him.
July 21, 2023
Offit Kurman Adds 2 Veteran Defense Attorneys

Maryland-based Offit Kurman Attorneys At Law has hired two attorneys in its New York City and Hackensack, New Jersey, offices with focuses on criminal defense and government investigations, the firsts in their practice area to be added to the firm's roster.
July 21, 2023
Weekly Internal Revenue Bulletin

The Internal Revenue Service released its weekly bulletin Friday, which included notice of the modification of guidance outlining testing and treatment of COVID-19 that health plans can provide.
July 21, 2023
IRS Seeks Feedback On Employment Tax Burden Methodology

The Internal Revenue Service asked for comments Friday on updating the methodology used to estimate the time and costs incurred by taxpayers to comply with employment tax reporting responsibilities.

Expert Analysis

Opportunity Zone Pandemic Relief Is Welcome, But Limited

Excerpt from Practical Guidance

The Internal Revenue Service's new notice relaxing deadlines and requirements for opportunity zone investors during the pandemic is helpful, but misses an opportunity to clarify important safe harbors, says Jessica Millett at Duval & Stachenfeld.
Driving Forces Shaping The Life Settlements Market

The life settlements market is evolving as a result of several recent legislative developments and cases concerning stranger-originated life insurance, and will likely see continued growth this year, say Brian Casey and Thomas Sherman at Locke Lord.
Key Trade Secret Developments Of 2020: Part 2

Last year, federal courts issued several important rulings on trade secret issues that will affect litigation practice, including the importance of narrow, well-supported sealing requests, whether refining trade secret identification after discovery is permissible, and when punitive damages comport with due process, say attorneys at Faegre Drinker.
A Road Map For US Involvement In Europe's Cum-Ex Probe

The dividend arbitrage trading strategy known as cum-ex continues to face regulatory scrutiny in Europe, and stateside regulators may soon follow suit with the U.S. Securities and Exchange Commission’s recent American depositary receipt probe as a guide for enforcement, says Joshua Ray at Rahman Ravelli.
What Energy Sector Should Expect From Biden's Tax Policies

The energy sector may find new investment opportunities or the need to adjust holdings, depending on whether company goals align with the Biden administration's potential rollback of Trump-era tax reforms, and push for clean energy, reduced carbon emissions and increased domestic manufacturing, says Gregory Matlock at Mayer Brown.
Congress Should Make TCJA Income Definition Permanent

Congress should not allow the Tax Cuts and Jobs Act's definition of adjusted taxable income, which includes depreciation and amortization, to expire in 2022 because it would discourage debt-free investment, running counter to the law's intent, says George Callas at Steptoe & Johnson.
Raising Capital For Real Estate Deals During The Pandemic

Real estate sponsors looking to invest in the current environment should consider the various advantages and risks of forming a commingled real estate investment fund versus raising capital on a deal-by-deal basis, says Matt Ertman at Allen Matkins.
Bankruptcy Ruling Highlights Longer Lookback Trend

The U.S. Bankruptcy Court's recent decision in Zagaroli underscores a trend among bankruptcy courts to allow longer lookback periods in certain types of fraudulent transfer cases, which could be a significant source of estate recovery for creditors, say attorneys at Lowenstein Sandler.
OECD Delays Are Imperiling Digital Tax Deal

As the Organization for Economic Cooperation and Development continues to push back its deadline for a digital tax overhaul, countries are beginning to pursue unilateral solutions and the negotiations are turning political, decreasing the likelihood of an agreement, says Joyce Beebe at Rice University.
How 2021 Appropriations Law Changes Employer Benefits

The Consolidated Appropriations Act signed into law in December makes a surprising number of changes to rules for employer-sponsored health and welfare benefits that will likely have a significant impact, especially the provisions concerning flexible spending accounts, say Eric Schillinger and Anne Hall at Hall Benefits Law.
How Rebooted Paycheck Protection Program Works: Part 2

Excerpt from Practical Guidance

Attorneys at Cozen O'Connor analyze key provisions of the U.S. Small Business Administration's two new interim final rules regulating first-draw and second-draw loans under the reinstituted Paycheck Protection Program.
How Rebooted Paycheck Protection Program Works: Part 1

Excerpt from Practical Guidance

Attorneys at Cozen O'Connor provide an overview of the recently reinstituted Paycheck Protection Program's provisions for new borrowers to receive loans and existing borrowers to receive additional funding, and the U.S. Small Business Administration's startup of the program.
How To Reliably Value Income-Producing Real Estate

Amid the pandemic-fueled surge in tax appeals and loan workouts, using the income approach to calculate the present worth of a property's future income provides the most reliable indication of value and does not rely on subjective adjustments, say Mark Dunec at FTI Consulting and Anthony DellaPelle at McKirdy Riskin.