Federal

  • November 04, 2022

    Auto Industry May Need More Time To Meet EV Credit Rules

    New domestic sourcing requirements will take effect next year for the federal electric vehicle tax credit, but relatively few vehicles may qualify initially due to disruptions in the supply chain, leading to calls for a delay.

  • November 04, 2022

    Microcaptive Disclosure On Return May Avert Penalty, IRS Says

    A taxpayer that completely describes a microcaptive insurance transaction in a timely return, but not on a separate disclosure form required by an Internal Revenue Service notice, has probably done enough to avoid a 40% nondisclosure penalty, the IRS said Friday.

  • November 04, 2022

    9th Circ. Vacates Denial Of Ex-DOJ Atty's IRS Court Costs

    The Ninth Circuit on Friday undid a U.S. Tax Court decision denying a former Department of Justice attorney $31,600 in litigation costs after he successfully challenged an IRS bill, finding the lower court should consider his challenges to the agency's litigation position.

  • November 04, 2022

    No Trial Needed For Most Of $21M FBAR Case, Gov't Says

    The U.S. government urged a Florida federal court to reject arguments from a Texaco heiress' estate that's fighting more than $20.9 million in offshore account penalties, contending that the only dispute for a jury is whether her conduct was willful.

  • November 04, 2022

    IRS Seeks Comments On Real Estate Interest Transfer Form

    The Internal Revenue Service said Friday that it wanted comments on a form for reporting certain real estate mortgage investment conduit interest transfers.

  • November 04, 2022

    House Bill Would Exclude Military Needs Allowance From Income

    The basic needs allowance would be excluded from the gross income calculation of members of the U.S. military under a bill introduced in the House of Representatives.

  • November 04, 2022

    10th Circ. Rejects Ex-Ballard Spahr Partner's Energy Credits

    The U.S. Tax Court properly denied depreciation deductions and energy credits to an ex-Ballard Spahr LLP partner caught up in a $50 million solar tax credit scheme, the Tenth Circuit said Friday, finding his solar lens business activities lacked a profit motive.

  • November 04, 2022

    Trump Org. Trial Delayed Again With Key Witness Still Unwell

    The Manhattan district attorney's criminal case against the Trump Organization was delayed again Friday when the judge learned company controller and lead witness Jeffrey McConney was "still sick" with COVID-19, a court official said, pushing trial back another week.

  • November 04, 2022

    OECD's Former Tax Chief Leaves Institution Transformed

    Pascal Saint-Amans, who stepped down as the Organization for Economic Cooperation and Development's tax chief this month, is leaving at a time when what is arguably his greatest achievement, a sweeping agreement signed by 137 countries a year ago, is crumbling.

  • November 04, 2022

    Fla. Executors Say IRS Owes Canadian's Estate $500K

    The IRS must refund an incorrectly assessed income tax payment of more than $500,000 to a Canadian estate that should have received a deduction for Quebec estate taxes paid on $1.4 million, Florida executors said in a complaint filed in federal court.

  • November 04, 2022

    Taxation With Representation: Simpson Thacher, Davis Polk

    In this week's Taxation With Representation, Blackstone Inc. will buy a majority stake in a portion of Emerson Electric Co., shareholders are taking Atlas Corp. private, Johnson & Johnson will buy Abiomed, and a joint venture acquired a timberlands portfolio.

  • November 04, 2022

    CBD Co., Founder Ordered To Arbitrate Over $5M Tax Bill

    A Nevada federal judge ordered a CBD company fighting with its co-founder over who should pay a $5 million tax bill to resolve the issue in arbitration, saying federal laws and contracts the parties signed require it.

  • November 04, 2022

    IRS Urges Enforcement Of Summons On Org. In Tax Probe

    A Louisiana federal court should force a foundation to comply with an Internal Revenue Service summons seeking records for its investigation of a company's tax compliance, the agency told the court.

  • November 04, 2022

    Appeals Office Bringing Back Workers Who Eased Backlogs

    Some employees in the IRS Independent Office of Appeals who joined an agencywide effort to address amended return and correspondence backlogs caused by COVID-19 will return to the department in the 2023 fiscal year, according to the office's focus guide released Friday.

  • November 04, 2022

    IRS Seeks Feedback On Settlement Fund Reporting Rules

    The Internal Revenue Service asked for comments Friday on a regulation that governs reporting for funds created for settlements.

  • November 03, 2022

    GOP Urges Treasury To Reverse Hungary Tax Treaty Withdrawal

    The U.S. Treasury Department should reconsider its decision to withdraw from a bilateral tax treaty with Hungary because it appears retaliatory for the country's opposition to the OECD's corporate global minimum tax, according to a letter sent Thursday by top congressional Republicans.

  • November 03, 2022

    Midterms Unlikely To Revive Debate Over Int'l Taxes In US

    The midterm elections are unlikely to jump-start Congress into considering changes needed to align the U.S. international tax regime with an OECD minimum tax, but the outcome will influence how lawmakers prepare for a debate involving global reforms and expiring tax cuts in the years to come.

  • November 03, 2022

    IRS Criminal Investigation Head Plans Big Hiring Boost

    The Internal Revenue Service's criminal investigation arm aims to hire more than 500 workers in the 2023 fiscal year, including 360 special agents, its chief said Thursday.

  • November 03, 2022

    3rd Circ. Affirms Convictions For False Tax Return Prep

    The Third Circuit on Thursday affirmed a man's convictions for assisting in preparing false tax returns, rejecting his argument that a lower court lacked jurisdiction because he had renounced his U.S. citizenship.

  • November 03, 2022

    IRS Seeks Comments On Debt Instrument Reporting Rules

    The Internal Revenue Service said on Thursday that it wants comments on rules for reporting contingent payment debt instruments.

  • November 03, 2022

    IRS Tax-Exempt Arm Focused On Rolling Out Direct Pay Rules

    The Internal Revenue Service Tax-Exempt and Government Entities Division is "vigorously focused" on developing a new regime for public utilities and other tax-exempt entities to directly receive payment of clean energy tax credits under the Democrats' new climate law, the division commissioner said Thursday.

  • November 03, 2022

    Treasury Seeking Input On Tax, Climate Bill Energy Provisions

    The U.S. Treasury is seeking public input on clean energy tax provisions of the Inflation Reduction Act, including on the new credit for clean commercial vehicles, the updated carbon capture credit and an extended incentive for electric vehicle charging stations, the department said Thursday. 

  • November 03, 2022

    Treasury Pressed On $1B In Improper Child Tax Credits

    Treasury should provide details on how it plans to recoup over $1 billion in advance child tax credits paid to people who weren't eligible for them, Republican leaders of the House Ways and Means and Budget committees said Thursday.

  • November 03, 2022

    US Urges Nix Of $638K Investment Tax Refund Suit

    The U.S. government asked a California federal court to dismiss a man's request for a $638,000 net investment income tax refund, saying he wrongly believed foreign tax credits should offset his bill.

  • November 03, 2022

    Court Orders Trump Org. Monitor During NY AG's Fraud Case

    A New York judge ordered the Trump Organization to install an independent monitor Thursday, ruling in favor of the state attorney general amid her $250 million fraud lawsuit against former President Donald Trump, his companies and its officers.

Expert Analysis

  • The Highs And Lows Of Tax Controversy In 2021

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    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
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    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
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    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

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    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

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    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

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    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

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    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

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    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

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    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

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    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

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    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.

  • New DOJ Corporate Crime Approach May Deter Self-Reporting

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    Deputy U.S. Attorney General Lisa Monaco's recent unveiling of a tougher white collar enforcement approach at the U.S. Department of Justice — focusing on corporate recidivism and compliance monitors — could result in companies being less willing to self-report wrongdoing or enter into resolutions with the government, say attorneys at Morgan Lewis.

  • Infrastructure Bill May Limit Cryptocurrency Loss Deductions

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    If enacted, provisions in ​President Joe Biden's ​​infrastructure bill would broaden a rule meant to prevent the harvesting of tax losses​, causing every cryptocurrency investor ​who wants to deduct a loss to consider whether it is worth cashing out to fiat currency and waiting 30 days before reinvesting to take a loss deduction, says Andrew Leahey at Hunter Creek Consulting.

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