Federal

  • 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.

  • January 20, 2023

    Nutrition Co. Drops $10M Accounting Negligence Suit

    A Maryland federal judge approved the dismissal Friday of a nutritional supplements company's lawsuit against its former accounting firm, a complaint the company dropped after having accused the firm of bungling its taxes and causing it to overpay taxes to South Carolina by $10 million.

  • January 20, 2023

    Plumbing Co. Asks Court To Block IRS Microcaptive Notice

    A 2016 IRS notice that requires the disclosure of microcaptive insurance arrangements to the agency should be invalidated because its implementation failed to follow the federal rulemaking process, the owner of a Utah-based plumbing company and several related entities told a federal court.

  • January 20, 2023

    Court Strikes IRS Benefit Guidance Over Admin. Law Violation

    A Michigan federal judge invalidated IRS guidance that required the disclosure of certain potentially abusive employee benefit plans, saying that setting aside the guidance was justified given the Sixth Circuit's decision that found the agency hadn't complied with public comment requirements in issuing it.

  • January 20, 2023

    7th Circ. Judges Scrutinize $11M Tax Ruling In NBA Team Sale

    Seventh Circuit judges questioned a U.S. Tax Court decision blocking a company's $10.6 million ordinary business deduction for the sale of the NBA's Memphis Grizzlies, saying reclassifying the break as a deferred compensation deduction risks eliminating the company's ability to ever claim it.

  • January 20, 2023

    Taxation With Representation: Slaughter and May, Shearman

    In this week's Taxation With Representation, INEOS said it will buy MBCC Group's chemical admixtures business, Spectaire said it agreed to go public by merging with Perception Capital Corp. II, and Shell reached an agreement to acquire Volta.

  • January 20, 2023

    Tax Group Of The Year: Latham

    Latham & Watkins LLP's tax practice guided medical records giant Cerner in its $28.3 billion acquisition by Oracle and helped secure a U.S. Supreme Court win in a law firm's day-late challenge to an Internal Revenue Service levy, exemplifying its strengths in both transactional tax and tax controversy, and earning it a spot on Law360's 2022 Tax Groups of the Year.

  • January 20, 2023

    IRS Seeks Comments On Split Interest Trust Reporting Form

    The Internal Revenue Service said Friday that it is seeking comments on a form for reporting a split interest trust's financial activities.

  • January 20, 2023

    Weekly Internal Revenue Bulletin

    The Internal Revenue Service released its weekly bulletin, which included proposed rules for the witnessing of spousal consent elections which allow it to be done remotely.

  • January 19, 2023

    11th Circ. Affirms 18 Years For Bank Fraud, False Tax Return

    The Eleventh Circuit affirmed the reduced 18-year prison sentence of a man who claimed to be a Hindu priest and was convicted of dozens of crimes including filing a false tax return, saying Thursday that a lower court correctly followed its remand instructions.

  • January 19, 2023

    4th Circ. Says ACA Payment Is Tax For Bankruptcy Purposes

    The Affordable Care Act's charge levied on people who lacked minimum health coverage counts as a tax that takes priority over other claims in the bankruptcy process, a split Fourth Circuit panel said Thursday, reversing a decision by a North Carolina federal court.

  • January 19, 2023

    Taiwan Continues To Press For Tax Treaty With US

    The president of Taiwan reiterated the self-governing island's desire for a tax treaty with the U.S. at a meeting with U.S. lawmakers, according to her office.

  • January 19, 2023

    US Asks Full 6th Circ. To Rethink Barring ARPA Tax Restraints

    The entire Sixth Circuit should rehear a case in which a panel ruled that the federal government can't enforce a provision barring Tennessee from using federal coronavirus relief funds to offset revenue reductions such as tax cuts, the Treasury Department said.

  • January 19, 2023

    IRS Beats Microsoft's FOIA Suit Over 15-Year Audit

    The IRS adequately searched for documents on its 15-year audit of Microsoft while justifying exemptions to disclosure requirements for withheld files, a Washington federal judge ruled, tossing the tech giant's case seeking records under the Freedom of Information Act.

  • January 19, 2023

    Firm's Bid To Nix $1.5M Alter Ego Levy Is Too Early, Feds Say

    A Maryland federal court should reject a law firm's premature bid for summary judgment in its suit challenging an IRS levy that froze $1.5 million of its funds to collect taxes owed by what the government claims is the firm's alter ego, the U.S. government argued.

  • January 19, 2023

    10th Circ. Revives Fraud Penalty For Tax Evasion Convict

    An ex-prisoner who was visited by an IRS agent while serving time for tax evasion in Colorado cannot avoid fraud penalties on the grounds that the agent's penalty proposal lacked the required supervisory approval, the Tenth Circuit said Thursday, reversing a U.S. Tax Court decision. 

  • January 19, 2023

    Tax Group Of The Year: Eversheds Sutherland

    Eversheds Sutherland secured several significant tax victories in 2022, including convincing a judge to side with Comcast and Verizon to invalidate Maryland's first-in-the-nation digital advertising tax and winning Sirius XM a $2.5 million Texas franchise tax refund, earning it a spot on Law360's 2022 Tax Groups of the Year.

  • January 19, 2023

    IRS Grants Extensions To Storm Victims In Ga., Ala.

    Taxpayers impacted by storms in some counties in Georgia and Alabama now have until May 15 to submit some returns and payments, the Internal Revenue Service said Thursday.

  • January 19, 2023

    FinCEN To Raise Bank Secrecy Penalties

    The U.S. Treasury Department Financial Crimes Enforcement Network announced final rules that will increase civil monetary penalties for violating the Bank Secrecy Act to account for inflation.

  • January 18, 2023

    Accountant Agrees To Pay $3.5M In Easement Case Plea Deal

    A Florida accountant pled guilty Wednesday to illegally selling tax deductions to his clients in the form of conservation easements and agreed to pay nearly $3.5 million in restitution to the Internal Revenue Service in a New Jersey federal court.

  • January 18, 2023

    Groups Tell Biden Not To Back Down To EU Trade Threats

    Five groups sent a letter to the Biden administration on Wednesday saying it shouldn't back down to European Union trade threats and should implement the Inflation Reduction Act of 2022 as intended and without delays or changes that could undermine historic clean energy investments.

  • January 18, 2023

    Full Business Meal Deduction Expired In 2022, JCT Says

    Several tax provisions expired at the end of last year, including the full deduction for business meals provided by a restaurant, according to a report released Wednesday by the Joint Committee on Taxation.

  • January 18, 2023

    IRS Seeks Input On Superfund Tax List Addition

    The Internal Revenue Service on Wednesday announced a requested addition to the list of taxable substances for purposes of the Superfund chemical tax and asked for feedback on the addition.

Expert Analysis

  • 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.

  • Patagonia's Succession Plan Is A Blueprint For Biz Owners

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    While not every business owner is interested in giving their company away to a charitable purpose like Patagonia's founder recently did, the outdoor apparel company's unique situation highlights the considerations that should go into any succession plan, says Abosede Odunsi at Freeborn & Peters.

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