Federal

Expert Analysis

• Navigating CARES Act Social Security Tax Deferral Payments

  

  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

  

  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

  

  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

  

  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

  

  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

  

  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.

• The Infrastructure Bill Should Not Target Cryptocurrency

  

  Congress should excise a provision in the pending infrastructure bill that would require anyone who accepts $10,000 in cryptocurrency for goods or services to report the transferring party's personal information to the Internal Revenue Service — this would be unnecessary, ill-advised and possibly unconstitutional, says James Burnham at Jones Day.

• Opportunity Zone Regulations Require More Fine Tuning

  

  Problems with the latest revisions to the qualified opportunity zone investment rules reinforce a recurring theme of regulatory hiccups that may prevent investors and communities from actualizing the program's potential benefits, unless we have more guidance, says Mitchell Goldberg at Berger Singerman.

• Preserving Disgorgement Tax Deductibility In SEC Settlements

  

  The U.S. Securities and Exchange Commission recently added language to its enforcement orders that could affect a settling party's ability to deduct certain disgorgement payments, but proper planning can help them satisfy Internal Revenue Service prerequisites, say attorneys at Sidley.

• How The Global Tax Agreement Could Backfire For Biden

  

  If the $3.5 trillion spending package fails, the federal tax code will not conform to the recent 15% global minimum tax agreement spearheaded by the U.S., which would embarrass the Biden administration and could lead to retaliatory tax measures by other nations, says Alex Parker at Capitol Counsel.

• Tax-Exempt Orgs, Beware This 403(b) Plan Compliance Pitfall

  

  A recent Internal Revenue Service publication puts 403(b) retirement plan sponsors on notice about a contribution aggregation compliance failure often identified in audits of government and tax-exempt entities, but risk can be minimized by ensuring plan documents and communications address the issue directly, say Greg Needles and Michael Gorman at Morgan Lewis.

• Pandora Papers Reveal Need For Greater Tax Enforcement

  

  The recent Pandora Papers leak is a reminder of the importance of transparency laws and proper funding for enforcement efforts against tax evasion as bad actors increasingly operate in the shadows, says Daren Firestone and Kevin Crenny at Levy Firestone.

• Telehealth Providers Must Beware Of Fraud As Industry Grows

  

  A recent fraud charge against a telehealth executive highlights the rise we're seeing in telefraud scams during the industry's pandemic growth, and there are some steps that all health providers should take to stay clear of potentially illegal arrangements, says LaTawnda Moore at Dinsmore.