Federal

  • March 27, 2024

    Zaxby's Co-Founder's $43M Easement Fight Headed For Trial

    A trial will be needed to determine whether a co-founder of the Zaxby's restaurant chain and his wife are entitled to a $43.3 million tax refund for donations of conservation easements, a Georgia federal judge ruled Wednesday, saying the value of the easements remains in dispute.

  • March 27, 2024

    NY Couple Hid $1.4M In Dividends, Tax Court Says

    A New York man who pled guilty to healthcare fraud and his wife are liable for tax deficiencies after failing to report more than $1.4 million in constructive dividends, the U.S. Tax Court said Wednesday.

  • March 27, 2024

    Treasury Urged To Adjust Shift To Foreign Currency Rules

    The U.S. Treasury Department should let corporations take an aggregate approach regarding certain affiliates that conduct business in foreign currencies when transitioning to new rules for determining taxable income or loss, the American Bar Association's Tax Section recommended.

  • March 27, 2024

    IRS Delays Some Hawaii Deadlines Until August After Fires

    The Internal Revenue Service granted an additional extension of filing and payment deadlines for some Hawaii taxpayers affected by wildfires, the agency said Wednesday.

  • March 27, 2024

    Justices Grapple With Complex $3M Estate Tax Dispute

    The U.S. Supreme Court confronted a complicated dispute Wednesday over whether the estate of a deceased building supply company owner should be taxed on $3 million in life insurance proceeds the company used to buy his shares after his death, with two justices seeming to take opposing sides.

  • March 27, 2024

    Groups Urge IRS To Keep Strict Hydrogen Tax Credit Rules

    Some supporters of the Internal Revenue Service's proposed rules for the clean hydrogen production tax credit encouraged the agency Wednesday to maintain strict qualification criteria for the incentive to further discourage the use of fossil fuels in the manufacturing process and to reduce pollution.

  • March 27, 2024

    NY County Seeks To Bar NYC Congestion Prices As Illegal Tax

    A New York county with limited access to the Metropolitan Transportation Authority's service system jumped into the litigation fray against New York City's congestion pricing plan, arguing that the proposed charges for driving into portions of Manhattan are illegal taxes.

  • March 27, 2024

    Worker Credit Cutoff Seen As Harsh But Fair Potential Fix

    Tax legislation pending in the Senate would retroactively end the employee retention tax credit program and leave businesses with a legitimate need for the credit out in the cold, but lawmakers say the move is necessary given the magnitude of fraud in the program.

  • March 27, 2024

    Advice-Of-Counsel Defense Curbed From NC Tax Fraud Trial

    Two St. Louis attorneys and a North Carolina insurance agent can't fall back on advice-of-counsel defenses during their upcoming tax fraud trial after a federal judge found that they had failed to follow court orders requiring them to hand over information about the advice they sought.

  • March 26, 2024

    Meta Can't Escape Suit Over Collection Of Taxpayers' Data

    A California federal judge refused to release Meta from a consolidated class action accusing it of unlawfully collecting sensitive information from tax filing websites H&R Block, TaxAct and Tax Slayer, allowing state and federal wiretapping claims to move forward and permitting the plaintiffs to amend several deficient privacy allegations. 

  • March 26, 2024

    Adjusting To Amount B's Rules May Bring Growing Pains

    Countries designed a new tax framework known as Amount B to streamline the pricing of certain cross-border operations, but the criteria for determining whether transactions qualify for the regime, which negotiators recently made optional, may complicate the goal of simplicity.

  • March 26, 2024

    $4.5M Microcaptive Insurance Deduction Nixed By Tax Court

    An eye doctor can't deduct more than $4.5 million in insurance premiums that he paid to two microcaptive companies because the payments don't qualify as valid insurance purchases for federal income tax purposes, the U.S. Tax Court ruled Tuesday.

  • March 26, 2024

    $23M Easement Deduction Worth Only $480K, Tax Court Says

    The U.S. Tax Court significantly reduced the value of a $23 million deduction taken by the members of a Delaware partnership Tuesday, instead allowing them $480,000 for the charitable donation of an easement.

  • March 26, 2024

    NC Software Execs Ask To Raze Payroll Tax Fraud Conviction

    Two former software executives found guilty of failing to pay hundreds of thousands of dollars in employment taxes have sought to wipe out their conviction based on what they allege was insufficient evidence presented by the government at trial.

  • March 26, 2024

    Producers Push IRS For Flexible Clean Hydrogen Credit Regs

    The IRS should adopt flexible metrics to measure greenhouse gas emissions in proposed rules for the clean hydrogen production tax credit to accommodate energy companies' transition toward cleaner production methods, stakeholders said during a hearing on the regulations Tuesday.

  • March 26, 2024

    9th Circ. Judges Skeptical Senior Care Facility Owes IRS $20M

    Ninth Circuit judges seemed skeptical of the Internal Revenue Service's efforts to force a California-based senior care facility to pay a $20 million tax bill, saying the facility's deferral of unamortized portions of resident fees didn't run afoul of generally accepted accounting methods.

  • March 26, 2024

    Nev. Foreclosed Property To Be Sold To Pay Co.'s Tax Debt

    A Nevada federal court approved the sale of a foreclosed Las Vegas property in the federal government's efforts to recoup nearly $943,000 in taxes owed by a security company.

  • March 26, 2024

    IRS Fixes Typo In Contribution Rules

    The Internal Revenue Service issued a correction notice Tuesday fixing a typographical error within regulations about contributions to certain organizations.

  • March 25, 2024

    Clean Hydrogen Tax Credit Regs' Pillars Too Strict, IRS Told

    The so-called three pillars in proposed clean hydrogen production tax credit rules used to determine the incentive's value would prevent the rapid scaling of a nascent sector that aims to produce zero-carbon emissions fuel, stakeholders told the Internal Revenue Service on Monday.

  • March 25, 2024

    Tax Groups Urge Justices To Review Philly Tax Credit System

    The U.S. Supreme Court should hear a woman's claims that Philadelphia unconstitutionally declined to credit her Delaware state income taxes paid against her city wage tax liabilities, a taxpayer advocacy organization and a group of tax lawyers told the justices Monday.

  • March 25, 2024

    Alaskans Hit By Storms Can Delay IRS Tax Filings, Payments

    Taxpayers in Alaska impacted by severe storms, landslides and mudslides that started Nov. 20 now have until July 15 to file various federal individual and business tax returns and make tax payments, the Internal Revenue Service said Monday.

  • March 25, 2024

    Tax Court Upholds Med Spa Owner's Fraud Penalties

    A registered nurse and her medical spa that offered botox and liposuction treatments in Kansas owe more than $700,000 in civil fraud penalties related to the nurse's conviction for tax evasion for misusing cash payments from clients, the U.S. Tax Court ruled Monday.

  • March 25, 2024

    Unpaid Taxes Fall On CEO's Shoulders, Tax Court Says

    The CEO of a company is responsible for settling any unpaid liabilities despite his hiring of an accountant who embezzled a portion of the company's employment taxes, the U.S. Tax Court ruled Monday.

  • March 25, 2024

    Student Loan Refinancing Doesn't Affect Borrower Eligibility

    Students as well as parents are considered eligible borrowers of a refinancing qualified student loan under a state supplemental loan program, regardless of who was the original borrower, the Internal Revenue Service said Monday.

  • March 25, 2024

    7th Circ. Affirms Co. Can't Get $3.5M Software Deduction

    A healthcare company that helps nursing homes buy equipment is not entitled to $3.5 million in tax deductions meant for domestic software production, the Seventh Circuit ruled, saying the company failed to meet the threshold for the break because it didn't actually provide software to customers.

Expert Analysis

  • Tax Court Ruling Provides Helpful Profits Interest Guidance

    Author Photo

    A recent U.S. Tax Court decision holding that a partnership may exclude interests in a company that it indirectly received sheds light on related IRS guidance, including the proper valuation method for such interests, though the court's application of the method to the facts of this case appears flawed, say attorneys at Kramer Levin.

  • Mallory Ruling Doesn't Undermine NC Sales Tax Holding

    Author Photo

    Contrary to the conclusion reached in a recent Law360 guest article, the U.S. Supreme Court’s recent Mallory ruling shouldn't be read as implicitly repudiating the North Carolina Supreme Court’s sales tax ruling in Quad Graphics v. North Carolina Department of Revenue — the U.S. Supreme Court could have rejected Quad by directly overturning it, says Jonathan Entin at Case Western Reserve.

  • IRS Criminal Probe Spells Uncertainty For Malta Pension Plans

    Author Photo

    The IRS’ recent scrutiny of Malta pension plan arrangements — and its unusual issuance of criminal administrative summonses — confirms that it views many of these plans as illegal tax evasion schemes, and the road ahead will not be smooth and steady for anyone involved, say attorneys at Kostelanetz.

  • IRS Announcement Will Aid Cos. In Buyback Tax Planning

    Author Photo

    Recent IRS transitional guidance regarding current requirements for reporting and payment of the stock repurchase excise tax will help corporate taxpayers make decisions about records retention and establishing reserves for future tax payments, say Xenia Garofalo and Kyle Colonna at Eversheds Sutherland.

  • Mallory Opinion Implicitly Overturned NC Sales Tax Ruling

    Author Photo

    The U.S. Supreme Court recently declined to review Quad Graphics v. North Carolina Department of Revenue, but importantly kicked the legs from under Quad's outcome a week later, stating in its Mallory decision that the high court has the prerogative to overrule its own decisions, says Richard Pomp at the University of Connecticut.

  • How NIL Collectives Could Be Tax-Exempt After IRS Curveball

    Author Photo

    Since the Internal Revenue Service recently announced that numerous collectives creating paid name, image and likeness deals for collegiate student-athletes do not qualify for tax exemption, for-profit entities and alternative collective structures with incidental student-athlete benefits may be considered to fund NIL ventures, says David Kaufman at Thompson Coburn.

  • Is This Pastime A Side-Gig? Or Is It A Hobby?

    Author Photo

    The recent U.S. Tax Court decision in Sherman v. Commissioner offers important reminders for taxpayers about the documentation and business practices needed to successfully argue that expenses can be deducted as losses from nonhobby income, says Bryan Camp at Texas Tech.

  • Recent Provider Relief Fund Audits Are Just The Beginning

    Author Photo

    Though the Health Resources and Services Administration's initial audits of the Provider Relief Fund program appear to be limited in scope, fund recipients should prepare for additional oversight, scrutiny and disallowances as the HRSA ramps up its efforts, say Brian Lee and Christopher Frisina at Alston & Bird.

  • Flawed Analysis Supports Common Law Tax Deficiency Ruling

    Author Photo

    The Colorado federal district court’s recent decision in Liberty Global, holding that the U.S. Department of Justice may assert a common law tax claim without the notice of tax deficiency required by the Internal Revenue Code, relies on a contorted reading of the statute and irrelevant case law, say Loren Opper and Christie Galinski at Miller Canfield.

  • Review Of Repatriation Tax Sets Justices On Slippery Slope

    Author Photo

    The U.S. Supreme Court’s recent decision to review the constitutionality of the repatriation tax in Moore v. U.S. has implications for many tax rules involving unrealized amounts and could leave the court on the brink of invalidating large swaths of the Internal Revenue Code, say attorneys at Eversheds Sutherland.

  • IRS Guidance Powers Up Energy Tax Credit Transfers

    Author Photo

    Recent IRS guidance on the monetization of energy tax credits provides sufficient clarity for parties to start negotiating transfer agreements, but it is unclear when the registration process required for credits to change hands will be up and running, say attorneys at Shearman.

  • Using Agreements To Cover Gaps In Hydrogen Storage Regs

    Author Photo

    The Inflation Reduction Act's incentives for energy storage have spurred investment in hydrogen storage and production, but given the lack of comprehensive regulations surrounding the sector, developers should carefully craft project and financing agreements to mitigate uncertainties, say Omar Samji and Sarah George at Weil, and attorney Manushi Desai.

  • Secure 2.0 Takeaways From DOL's 2024 Budget Proposal

    Author Photo

    The U.S. Department of Labor’s fiscal year 2024 budget proposal provides insight into the most pressing Secure 2.0 implementation issues, including establishment of a search database for finding lost retirement savings and developing guidance on the execution of newly authorized emergency savings accounts, say attorneys at Maynard Nexsen.

Can't find the article you're looking for? Click here to search the Tax Authority Federal archive.