Federal

How The Midterms Are Likely To Shape Tax Policy

Natalie Olivo
Senior Tax Correspondent

While the outcome of the midterm elections won't change tax policy overnight, the winning party should at the very least have the chance to signal its priorities and work on bipartisan legislation that could become law even in a divided government. Here, Law360 breaks down different tax policy scenarios that could come from the elections.

Could A Criminal Sentencing Case Upend Loper Bright?

Katie Buehler

U.S. Supreme Court Justice Neil Gorsuch is concerned that a ruling instructing trial courts to defer to the U.S. Sentencing Commission's interpretation of federal sentencing guidelines could blow a "pretty big hole" in the court's recent rejection of deference doctrines. His colleagues, however, don't appear as perturbed.

New Fraud Division Flexes Might In Latest Enforcement Policy

Phillip Bantz

The National Fraud Enforcement Division's new corporate enforcement policy emphasizes the quick pursuit of certain types of fraud through data analysis and staff resources, expands the target list beyond traditional healthcare providers and highlights the division's growing dominance within the U.S. Department of Justice, experts say.

3 Strategies To Reduce AI Sycophancy In Legal Work

The tendency of generative artificial intelligence models to tell users what they want to hear can reinforce attorneys’ confirmation bias when testing the strength of arguments, and it can’t simply be prompted away — but a few practices can help mitigate it, says Michael Ott at Ice Miller.

DOJ Directive Gives Contractors A Fraud Risk Road Map

For government contractors, the 10 factors described in the U.S. Department of Justice's recent corporate fraud enforcement directive function as a de facto scoring rubric for internal audits that mirrors what prosecutors will prioritize, say attorneys at Spencer Fane.

The Future Of PCAOB Enforcement After Post-Jarkesy Win

While the Public Company Accounting Oversight Board recently defeated procedural and structural challenges to its enforcement program in D.C. federal court, it's unclear what claims and sanctions the PCAOB can bring against respondents — and whether it's interested in instituting disciplinary proceedings generally, says Mike Plotnick at King & Spalding.

IRS Rule May Put Private Schools' Exempt Status At Risk

In light of recently proposed Treasury regulations that would narrow the options for diversifying student communities, private schools should reexamine how race enters their admissions, financial aid and student programs or risk losing tax-exempt status, say attorneys at Atkinson Andelson.

Tariffs Could Be Behind Surge In FTZ Production Filings

As tariffs reshape production sourcing decisions, manufacturers are seeking foreign trade zone production authority at more than twice last year's pace, making it important to consider the potential duty and export benefits, along with review delays and restrictions that can curb savings, say attorneys at Sidley.

Where DOJ's Fraud Directive May Actually Affect Enforcement

The U.S. Department of Justice’s recent directive outlining corporate fraud enforcement priorities is mostly a management document instead of a policy, but one part may actually undermine the directive's goals by leading to worse outcomes for organizational defendants and less corporate self-disclosure, says Zachary Warren at Williams & Connolly.

Transfer Pricing Analyses May Apply To Tariff Refunds Claims

Both plaintiffs and defendants in consumer class actions over tariff refunds should examine transfer pricing analyses, which can offer contemporaneous evidence as to how much of a tariff was borne in the U.S. by the importer or consumers rather than absorbed earlier in the supply chain, say economists at The Brattle Group.

Importer Risk Rises As AI Enters Trade Fraud Enforcement

The Trump administration's new data-driven and artificial intelligence-enabled push against tariff evasion raises the stakes for companies with global supply chains, making it crucial that they consider strengthening response protocols, documentation and internal reporting mechanisms, say attorneys at Cooley.

What Lawyers Should Know Before Accepting Crypto Payment

As clients increasingly request to pay legal fees, retainers and escrow funds using cryptocurrency, lawyers should consider how only a handful of state bar authorities have addressed the issue with varying ethics opinions, as well as the related questions that no authority has yet answered, says attorney Felix Shipkevich.

Why And How To Build A Neurodiversity-Informed Practice

By better understanding neurodiversity and implementing simple accommodations for clients with autism, ADHD or learning differences, attorneys can build stronger relationships with those who may otherwise struggle to obtain and benefit from legal services, while developing good habits that will benefit everyone they represent, says Ting Cheung at Sanford Heisler.

Why Importers Should Assess IEEPA Refund Claims Now

Businesses that wait for direction from U.S. Customs and Border Protection or the courts before seeking refunds of their finally liquidated International Economic Emergency Procedure Act duties in court may find them out of reach as the earliest potential limitation deadlines are approaching, says Samuel Finkelstein at LMD Trade Law.

FinCEN Exemption Raises Statutory, Administrative Questions

The Financial Crimes Enforcement Network's recently rolled-out broad exemption for U.S. companies from Corporate Transparency Act reporting may face administrative law and statutory challenges, so businesses should still preserve ownership records and monitor litigation and congressional action, says David McCarville at Fennemore.

IRS Automatic Penalty Relief Needs More Transparency

The IRS’ transition from manual first-time abate waivers to automatic penalty relief directly addresses genuine inequities, but its algorithmic framework creates an opaque black box that strips taxpayers of procedural visibility and complicates due process, says Colette Karam at Spencer West.