Federal
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March 11, 2024
Tax Court Cuts Majority Of Ohio Tax Preparer's Biz Deductions
An Ohio tax preparer will receive less than half of the $18,000 in deductions she claimed on her personal income taxes after failing to substantiate a portion of them as business expenses, the U.S. Tax Court ruled Monday.
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March 11, 2024
Fla. Tax Law Firm Fights Class Cert. In Wisconsin Fraud Row
A Florida-based tax law firm has asked a Wisconsin federal judge to trim a proposed class action fraud suit launched by former customers claiming the firm solicited fees without performing work.
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March 11, 2024
Senate Finance Panel To Meet Tuesday On Manufacturing
The Senate Finance Committee is scheduled to meet Tuesday to discuss congressional efforts for encouraging progress and investment in domestic manufacturing, according to a notice Monday.
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March 08, 2024
IRS Leaker Should Be Deposed Without All Docs, Judge Says
Attorneys for a hedge fund executive should question the former IRS contractor who admitted to stealing the tax returns of him and others, even though the IRS hasn't finished producing evidence in the case seeking to hold the agency responsible for the leak, a Florida federal judge said Friday.
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March 08, 2024
Hunter Biden's Trump Conspiracy Theory Baseless, US Says
Hunter Biden's claim that former President Donald Trump is improperly driving his criminal prosecution on nine counts of tax violations is nothing more than a baseless conspiracy theory, the U.S. government told a California federal court Friday, arguing against Biden's efforts to get the case tossed.
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March 08, 2024
Certain Tax Policy Can Improve Taxpayer Incentives, JCT Says
Tax policy affecting marginal tax rates can enhance taxpayers' incentives to work, save and invest their earnings, the Joint Committee on Taxation said in a report published Friday.
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March 08, 2024
Taxation With Representation: Fried Frank, Latham
In this week's Taxation with Representation, Viavi acquires Spirent, Cadence Design Systems purchases Beta Cae Systems International, and United Rentals buys Yak.
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March 08, 2024
Direct Pay Regs Would Lift Major Barrier For Energy Projects
A U.S. Treasury Department proposal to give partnerships access to direct payments of tax credits for green energy projects would lift a significant barrier that has prevented tribes, municipalities, schools and nonprofits from capitalizing on joint ownership arrangements.
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March 08, 2024
Weekly Internal Revenue Bulletin
The Internal Revenue Service issued its weekly bulletin, which included information on the tax treatment of certain lead pipe replacement projects.
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March 07, 2024
Don't Let Pillar 1 Die, Policy Experts Tell House Tax Panel
Tax policy experts encouraged a U.S. House subcommittee Thursday to continue negotiations at the Organization for Economic Cooperation and Development over the taxing rights overhaul known as Pillar One and advocate for stronger double taxation relief and tougher language eliminating digital service taxes.
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March 07, 2024
Ex-Mass. Senator's Aide Gets Short Prison Term For Tax Fraud
The former chief of staff to a Massachusetts state senator was sentenced Wednesday in federal court to 30 days in prison for failing to report income she was receiving from a business she owned and other jobs while collecting her state salary.
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March 07, 2024
Jailed Reality Star Slammed For Raising 'Irrelevant' Evidence
Less than a month ahead of trial, a Georgia Department of Revenue employee suing imprisoned former reality television star Michael "Todd" Chrisley has asked a Georgia federal judge to stop Chrisley from bringing in evidence she says is "irrelevant" to the defamation case she brought against him.
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March 07, 2024
Nonprofits Can E-File 2023 Extensions Later This Month
Tax-exempt organizations will be able to electronically file applications for extensions on returns including Form 990 starting March 17, when an Internal Revenue Service delay that impeded the filings ends, an agency official said Thursday.
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March 07, 2024
Disability Payments Are Gross Income, Tax Court Rules
More than $1,500 in disability payments received by a Texas couple must be included in their gross income, the U.S. Tax Court ruled Thursday.
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March 07, 2024
Tax Tipster Who Reported Family Loses DC Circ. Award Fight
A man who reported his siblings for tax fraud and received a whistleblower award wasn't entitled to more money, the D.C. Circuit ruled, saying the IRS was correct in reducing the amount after concluding the man, a manager in the family business, likely participated in the fraud.
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March 07, 2024
IRS Seeks Suggestions For Next Priority Guidance Plan
The Internal Revenue Service is soliciting public suggestions for its 2024-25 priority guidance plan, the agency announced Thursday.
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March 07, 2024
Feds Look To Bar Advice-Of-Counsel Defense From Tax Trial
Federal prosecutors have sought to prevent two attorneys and an insurance agent from relying on advice-of-counsel defenses in their upcoming tax fraud trial, telling a North Carolina federal judge the trio failed to give the court an adequate heads-up about their intended defense.
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March 07, 2024
IRS Halts Penalties On Dyed Diesel After Texas Wildfires
The Internal Revenue Service will momentarily stop imposing penalties on the sale or highway use of dyed diesel fuel in parts of Texas in response to wildfires, the agency said.
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March 07, 2024
IRS' Taxpayer Advocacy Panel Schedules April Meeting
The Internal Revenue Service's Taxpayer Advocacy Panel Joint Committee scheduled its next public meeting for April 22, the agency said Thursday.
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March 07, 2024
Biden Urges Higher Taxes On Wealthy Companies, Individuals
President Joe Biden, in his Thursday night State of the Union address, urged Congress to make the U.S. tax code fairer by enacting higher rates on wealthy corporations and individuals and extending tax relief to working families.
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March 06, 2024
Software Execs Tried To Save Co. With Trust Taxes, Jury Told
Prosecutors and defense attorneys on Wednesday painted competing pictures of two former software executives at the start of their tax fraud trial in North Carolina, with the government characterizing the pair as liars and cheaters while the defense claimed they were merely trying to right the ship as their business floundered.
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March 06, 2024
Impending Corp. Spinoff Guidance Could Refine Tax-Free Test
Tax attorneys are watching to see if eagerly awaited corporate spinoff guidance will help determine whether transactions qualify for tax-free status with more clarity than current regulations, and without controversial bright-line rules that were floated several years ago.
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March 06, 2024
Startup Investors' Attys Want $1.5M In Fees On Disclosure Suit
Lawyers for a class of investors have asked a New York federal court to approve their attorney fees of $1.5 million for a $4.5 million settlement with a Chinese analytics startup over claims the company misrepresented its tax liability before its initial public offering.
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March 06, 2024
IRS Targeted Atty In Bank Records Suit, Justices Told
The Internal Revenue Service violated an attorney's free speech rights by targeting him based on a tax analysis he posted online, he argued in asking the U.S. Supreme Court to consider overturning a ruling allowing the agency to obtain his bank account information.
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March 06, 2024
First Woman To Be Permanent Top IRS Atty Begins Tenure
The first woman to permanently serve as chief counsel of the Internal Revenue Service began her tenure Wednesday.
Expert Analysis
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How Inflation Reduction Act Will Lift Offshore Wind Projects
The Inflation Reduction Act should promote the development of offshore wind energy in multiple ways — including by improving the planning and permitting process for transmission infrastructure, expanding potential lease areas and making beneficial changes to the tax credits available for renewable energy developers, say attorneys at Day Pitney.
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CORRECTED: New Tax Credits For Renewables Should Offer Investors Relief
The Inflation Reduction Act's changes to tax credits for renewable energy projects should finally liberate tax equity investors from the restraints of the complex and onerous federal anti-abuse regime, says Kay Hobart at Parker Poe. Correction: Because of an editing error, a previous version of this article incorrectly characterized tax enforcement regimes in North Carolina and other states. This error has been corrected.
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Inflation Reduction Act A Boon To Hydrogen, Carbon Capture
The Inflation Reduction Act's tax credits and direct payments, extension of existing renewable electricity subsidies, and other benefits will accelerate hydrogen and carbon capture projects across the U.S. — and will likely draw capital into the country that would otherwise have gone to projects elsewhere, say attorneys at Shearman.
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What The Inflation Reduction Act Has To Do With Crypto
The recently enacted Inflation Reduction Act’s $80 billion supplemental funding allotment for the IRS could have unexpectedly significant implications for the cryptocurrency market, which may find itself the target of ramped-up tax audits and enforcement, says cybersecurity consultant John Reed Stark.
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Unpacking The New Stock Buyback Tax And Its Exceptions
Xenia Garofalo and Kyle Colonna at Eversheds Sutherland discuss provisions of the recently enacted tax on corporate stock repurchases, how its exceptions may be applied and what companies should consider when evaluating the cost of new or existing programs.
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Health Issues To Watch In Inflation Act, Other Policy Initiatives
The newly signed Inflation Reduction Act includes a number of significant drug pricing reforms, and the future holds a wider array of health issues that may be addressed in pending legislation when Congress returns in September, says Miranda Franco at Holland & Knight.
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How New Markets Tax Credit Can Help Pandemic Recovery
The New Markets Tax Credit program, designed to spur private investment in low-income, nonmetropolitan and distressed communities, is one potential remedy that can help alleviate the pandemic's negative impact on especially vulnerable areas, says Julia Fendler at Butler Snow.
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Senate Cannabis Bill May Give Some Cos. A Competitive Edge
Though the recently introduced Cannabis Administration and Opportunity Act is unlikely to pass, it provides a bellwether for federal legalization, with a robust regulatory framework that would offer large food and beverage companies a structural advantage and poise multistate cannabis operators for further growth, say attorneys at Perkins Coie.
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Lessons For Federal Lawmakers As Calif. Alters Cannabis Tax
California recently eliminated a cultivation tax that had for years burdened the state’s licensed cannabis market, providing important lessons for federal lawmakers on cumbersome regulations and unduly high taxes as they debate legalization, says Raza Lawrence at Zuber Lawler.
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Tips On Qualified Small Business Stock Exclusions
While awaiting more Internal Revenue Service guidance on the maze of requirements a taxpayer must satisfy for the qualified small business stock exclusion, there are steps proactive taxpayers can take to ensure their ability to establish their qualifications if they are audited, says Stephen Josey at Kostelanetz & Fink.
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Inside The OECD Transfer Pricing Documentation Guidance
Excerpt from Practical Guidance
The Organization for Economic Cooperation and Development's recently modified documentation guidelines can assist tax administrations in developing requirements for transfer pricing risk assessments and evaluations, and help multinational entity taxpayers demonstrate satisfaction of the arm's-length principle, says Neil Aragones at Lexis Tax.
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Superfund Tax Is Back: Implications For Chemical Industry
In light of the Internal Revenue Service's recently issued guidance on the reinstated Superfund tax, manufacturers, producers and importers should review their existing agreements that involve taxable chemicals and substances to determine who will be commercially responsible for the tax, say attorneys at Eversheds Sutherland.
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Tech Co.'s Suit May Create Hurdles For Research Tax Credits
The recently filed U.S. Tax Court case Perficient v. Commissioner — challenging standards under research credit regulations that determine whether research is funded by any grant or contract — could make it difficult to substantiate research tax credits, say Dennis St. Martin and Kevin Benton at Grant Thornton.