Federal

  • January 24, 2023

    8th Circ. Reverses 'Block' Bar On H&R Block Rival

    The Eighth Circuit undid a temporary bar on Block Inc. from using its name in connection with its tax product, finding Tuesday that a lower court incorrectly concluded that an injunction was warranted because consumers could confuse the company's product with H&R Block's filing services.

  • January 24, 2023

    US Prevails In Most Of FBAR Case Against Ore. Couple

    A federal judge ruled mostly for the federal government Tuesday in a case it brought against an Oregon couple for not filing reports of their foreign bank accounts.

  • January 24, 2023

    Tax Court Says IRS Properly Certified Man's $1.2M Debt

    The Internal Revenue Service properly certified a man's $1.2 million tax debt, resulting in a win for the government on the question of whether that would allow the secretary of state to revoke or deny his passport, the U.S. Tax Court said Tuesday.

  • January 24, 2023

    Ex-CFO Cops To Hiding Income In $25M Expenses Case

    The former chief financial officer and majority owner of a North Carolina employee benefits company pled guilty Tuesday in federal court to filing a false tax return in connection with passing off $25 million in personal spending as business expenses, the U.S. Department of Justice said.

  • January 24, 2023

    Tax Court Denies IRS Early Win Over Couple's Passports

    The Internal Revenue Service can't win without a trial on whether a Louisiana couple's tax debt would allow the U.S. secretary of state to revoke their passports, because the record didn't show the agency properly certified the debt, the U.S. Tax Court said Tuesday.

  • January 24, 2023

    9th Circ. Affirms Tax Court Can't Grant Refund In IRS Offer

    The Ninth Circuit affirmed a U.S. Tax Court ruling that the specialty court lacked authority to refund a business owner's $80,000 payment to the IRS, saying its jurisdiction over the particular kind of payment was limited.

  • January 24, 2023

    Liberty Global Doubles Down On Bid To Toss $283M Tax Suit

    Multinational telecommunications company Liberty Global Inc. is proceeding with its bid to get the government's $283 million tax suit against it tossed, despite warnings from a Colorado federal court that such a dismissal request would likely be rejected and "builds unnecessary delay into the case."

  • January 24, 2023

    Retired Atty Must Pay IRS $1.7M For Gambling Tax Scam

    A retired Canadian lawyer who admitted he had a gambling addiction owes $1.7 million in restitution to the IRS after he pled guilty to submitting false U.S. tax returns that inflated the withholdings on his jackpot winnings, allowing him to pocket unearned refunds.

  • January 23, 2023

    US Seeks OK For Revised FBAR Fine Against Vineyard Owner

    A California federal court should hold a vineyard owner liable for more than $343,000 in penalties for failing to disclose her overseas bank accounts, the U.S. said, after the IRS recalculated the penalties following a court order.

  • January 23, 2023

    IRS Going To 7th Circ. In Tax Battle Over Tribune's Cubs Sale

    The federal government is pursuing a Seventh Circuit appeal of a U.S. Tax Court decision finding Tribune Media Co. didn't owe tax for 2009 after the IRS sought to increase its liability by nearly $182 million in connection with its sale of the Chicago Cubs.

  • January 23, 2023

    Tax Court Sustains Salesman's Decade Of Deficiencies

    A Maryland insurance salesman failed to prove that income he received from a client over nearly a decade was a loan, the U.S. Tax Court said Monday, sustaining the deficiencies determined by the Internal Revenue Service.

  • January 23, 2023

    Shop Owner Can't Take Mortgage Deduction, Tax Court Says

    The co-owner of jewelry and auto shops cannot deduct mortgage interest of $66,000 for 2012 for Arizona condominiums he claimed to own with his brother because he didn't present evidence he owned the property, the U.S. Tax Court decided Monday.

  • January 23, 2023

    Floridian Urges Court To Deny Gov'ts $18M Repatriation Bid

    A Floridian should be allowed to keep about $18 million overseas while the Eleventh Circuit weighs his appeal against the IRS' penalty calculation for undisclosed Swiss bank accounts, he told a Florida federal court, arguing against the U.S. government's repatriation bid.

  • January 23, 2023

    Appraisal Behind $1.6M Deduction Improper, Tax Court Says

    The appraisal backing up a California couple's $1.6 million deduction for a donation of company units to a charity doesn't meet a statutory requirement for claiming charitable contribution deductions, the U.S. Tax Court said Monday.

  • January 23, 2023

    Court Dismisses Oil Co.'s $1.3B Tax Suit At Co.'s Request

    A Texas federal court dismissed a $1.3 billion tax dispute at the request of the oil company that brought it after ExxonMobil lost a similar case in the Fifth Circuit last year.

  • January 23, 2023

    Tax Court Says Ex-Spouse's Fiscal Control Excuses Woman

    The U.S. Tax Court decided Monday to grant a Californian partial relief from tax debt she incurred with her ex-husband, saying she was entitled to innocent spouse relief because he exerted control over their finances.

  • January 23, 2023

    Unions Urge Biden To Defy EU Threats On EV Tax Credit

    Several unions and nonprofits have urged President Joe Biden to defy the European Union's threats over the Inflation Reduction Act's electric vehicle tax credit by strictly interpreting provisions favoring domestically sourced batteries.

  • January 23, 2023

    IRS Gives Intermediaries Another Month To Renew Agreements

    Qualified intermediaries that want to renew their agreements for 2023 have until May, rather than April, to do so, the Internal Revenue Service said.

  • January 23, 2023

    Gorsuch Dissents Over Justices' Nix Of $3M FBAR Challenge

    The U.S. Supreme Court declined Monday to review a Boston woman's challenge to $3 million in penalties for failing to report her Swiss bank account, but Justice Neil Gorsuch disagreed, saying the U.S. government may have violated the woman's constitutional protection against excessive fines.

  • January 23, 2023

    High Court Won't Take On Texas Atty's Tax Fraud Suit

    The U.S. Supreme Court refused to hear a Texas attorney's fight to escape a conspiracy conviction connected to a client's $1.1 million in unpaid taxes despite his claims that the federal jury didn't receive instructions on how the Internal Revenue Service goes about collections, according to a denial issued Monday.

  • January 23, 2023

    Tax Group Of The Year: Mayer Brown

    Mayer Brown LLP's successful appeal for Fidelity Investments in a closely watched $26 million tax credit dispute was one of several high-profile wins over the past year that earned the firm a spot among Law360's 2022 Tax Groups of the Year.

  • January 23, 2023

    High Court Drops Tax Law Firm's Privilege Case

    The U.S. Supreme Court on Monday dismissed an unnamed law firm's bid for the court to adopt a broad approach in determining whether dual-purpose client communications containing both legal and nonlegal advice are protected under attorney-client privilege.

  • January 20, 2023

    New GOP House Rules Would Make Raising Taxes Harder

    New rules from House Republicans that govern floor debate on tax bills, such as restricting measures that raise income tax rates or requiring more specific cost estimates, reflect new GOP priorities intended to clamp down on spending hikes, tax increases and IRS audits.

  • January 20, 2023

    11th Circ. Affirms Limit On State Tax Cuts Is Unconstitutional

    Thirteen states challenging a provision barring them from using federal coronavirus relief funds to offset revenue reductions such as tax cuts have standing and are correct in claiming the provision is unconstitutional, the Eleventh Circuit said Friday, upholding a district court decision.

  • January 20, 2023

    Court Tosses Microcaptive Summons Suit After IRS Gets Docs

    A Florida federal court dismissed a case Friday seeking to enforce an IRS request for documents from corporate officers for several insurance businesses relating to an agency investigation into microcaptive insurance arrangements after the individuals provided the requested records and emails.

Expert Analysis

  • Key Income Tax Issues Triggered By Remote Employees

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    A host of fact-specific tax determinations arise in connection with remote work arrangements, from defining working-condition fringe benefit exclusions to nexus-dependent state withholding obligations, complicating compliance for corporate tax counsel and human resources professionals, say Thomas Cryan and Spencer Walters at Ivins Phillips.

  • An Evaluation Of New Solar Energy Opportunities For REITs

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    The Inflation Reduction Act's changes to investment tax credit rules will make it possible for real estate investment trusts to own solar facilities and also benefit economically from tax credits, but certain limitations remain, say attorneys at Mayer Brown.

  • Cases Show Real-World Laws Likely Apply In Metaverse

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    Although much has been written about the so-called unprecedented legal issues raised by the metaverse, recent federal cases demonstrate that companies can expect metaverse activities to be policed and enforced much like they would be in the physical world, say attorneys at Crowell & Moring.

  • Justices Poised To Reject Narrowing Unclaimed Property Law

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    After U.S. Supreme Court oral arguments in the so-called MoneyGram case — a dispute between Delaware and several other states over which has the right to about $300 million in unclaimed property — the court seems ready to rule against Delaware, but nuances of the court's reasoning will have a broader sweep, say attorneys at Alston & Bird.

  • How High Court Could Change FBAR Penalty Landscape

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    On Wednesday, the U.S. Supreme Court will hear Bittner v. U.S., a case that will affect many people penalized for failing to file a Report of Foreign Bank and Financial Accounts, and there are important procedural implications should the government's position be reversed, say Reuben Muller and Andreas Apostolides at Cole Schotz.

  • IRS Memo May Change IP Royalty Tax Prepayment Planning

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    A recent Internal Revenue Service advice memorandum finding a taxpayer was not permitted to prepay tax on contingent royalties after contributing intellectual property offshore is a noteworthy departure from earlier guidance that highlights potential differences between actual and deemed licenses, says William Skinner at Fenwick.

  • What IRS Funding Increase Means For Taxpayers

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    The Internal Revenue Service will first use the influx of funding from the Inflation Reduction Act to address customer support and personnel issues, but with over half the money allocated to enforcement, corporations and high-net-worth individuals will face increased scrutiny, say Patrick McCann Jr. and Jasen Hanson at Chamberlain Hrdlicka.

  • 6 Tax Considerations For Life Sciences Collaboration Deals

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    Given recent IRS guidance and changes to certain tax rates and deductions, biotech and life sciences companies entering into collaboration agreements should assess several unique taxation issues affecting matters ranging from research and development expenditures to profit-sharing terms, say attorneys at Orrick and Andersen Tax.

  • Rushed Multilateral Negotiations Caused Two-Pillar Tax Mess

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    Cracks appearing in the two pillars of the 2021 global tax plan stem from a multilateral tax policy process that rushed to issue rules without first resolving fundamental differences between countries or ensuring that the U.S., a key player, could implement them, says Jefferson VanderWolk at Squire Patton.

  • Post-Litigation Refund Strategies To Defeat Class Certification

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    The Third Circuit's recent revival of the Duncan v. Governor of the Virgin Islands class action shows that defendants should strongly consider tendering refunds to class representatives — even after they file suit — to create a substantial obstacle to certification, say attorneys at Covington.

  • Key Considerations For Seeking Relief From Double Taxation

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    Caroline Setliffe and E. Miller Williams at Eversheds Sutherland lay out the Organization for International Cooperation and Development’s mutual agreement procedure for settling double-taxation disputes, and discuss six factors U.S. taxpayers doing business in multiple countries should consider when determining the most advantageous form of relief.

  • High Court Could Resolve Thorny Atty-Client Privilege Issue

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    The U.S. Supreme Court recently granted review in a federal grand jury proceeding that presents a rare opportunity to clarify — and possibly significantly expand — the scope of the attorney-client privilege for complex mixed-purpose communications with counsel, says David Greenwald at Jenner & Block.

  • 2 Tax Decisions Hold Key Transfer Pricing Takeaways

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    Richard Slowinski and Stefanie Kavanagh at Alston & Bird discuss two recent decisions in cases against the IRS — Eaton Corp. from the Sixth Circuit and Medtronic from the Tax Court — that may help clarify when the agency can cancel an advance pricing agreement, but leave unanswered questions about which pricing method applies to high-value intercompany licensing transactions.

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