Federal

  • January 31, 2023

    Getty Images Wants Foreign Tax Credit Exceptions Clarified

    The U.S. Treasury Department should clarify that an exception outlined in proposed foreign tax credit regulations applies to withholding taxes on royalty payments for intangible property licensing based on where the taxes were levied, an attorney representing media company Getty Images said in a letter to the department.

  • January 31, 2023

    Petroleum Refiner Believes $48M Tax Suit Still Live, Court Told

    A petroleum refiner doesn't believe the entirety of its suit seeking a $47.6 million refund for fuel mixture tax credits is dead after the Fifth Circuit sided with the government in a similar suit, according to a filing Tuesday in Texas federal court.

  • January 31, 2023

    IRS Can Release Tax Return Info In Lawsuits, Court Says

    The Internal Revenue Code gives the IRS the right to release tax information that is part of a legal proceeding on tax administration, a D.C. federal court said in explaining why it dismissed an expatriate attorney's challenge to disclosure of his returns.

  • January 31, 2023

    Cos. Urge Broad Qualifications For Chipmaking Tax Credit

    Two technology companies asked the U.S. Department of the Treasury for clarification on a new 25% tax credit for semiconductor manufacturers and suggested the department take a wide view when deciding which companies qualify to receive it.

  • January 31, 2023

    Former Eversheds Sutherland Counsel Returns As Partner

    A former Eversheds Sutherland tax practice group counsel with extensive experience advising businesses on the state and local tax implications of their transactions will rejoin the group as a partner, the firm said Tuesday.

  • January 31, 2023

    IRS Remains Mum On Revenue Procedure Updates

    The Internal Revenue Service hasn't yet decided whether it will seek comments in response to upcoming updates to revenue procedures for advance pricing agreements and U.S. tax treaty disputes, an agency official said Tuesday.

  • January 31, 2023

    Fla. Consultant Owes $1.2M In FBAR Penalties, US Says

    A dual U.S.-Saudi citizen and consultant should pay $1.2 million in foreign bank account reporting penalties for failing to disclose his Swiss bank account on time for 2010 through 2012, the U.S. government told a Florida federal court.

  • January 31, 2023

    Chamber, ACLU Urge Justices To Limit IRS Summons Power

    The Internal Revenue Service infringed on the civil rights of taxpayers by expanding its summons power to obtain taxpayer records from third parties without warning, groups including the U.S. Chamber of Commerce and American Civil Liberties Union said in amicus briefs filed at the U.S. Supreme Court.

  • January 31, 2023

    NY AG Wants Trump And Attys Sanctioned In $250M Suit

    New York Attorney General Letitia James told a state judge Tuesday that former President Donald Trump, the Trump Organization and its officers are attempting to "deny facts" they have previously admitted to in their responses to her $250 million fraud suit, asking the court to sanction the defendants and their counsel.

  • January 31, 2023

    BankUnited Says It's Owed $39.8M Tax Refund On Acquisition

    BankUnited told a Florida federal court it is owed a $39.8 million tax refund stemming from its acquisition of a failed bank, arguing it can deduct $1.1 billion for its involvement in the transaction.

  • January 31, 2023

    Ex-Tech CEO Gets Almost 3 Years For Tax Evasion

    A former Florida tech CEO who pled guilty to tax evasion and causing a $600,000 tax loss was sentenced to almost three years in prison, just shy of federal prosecutors' demand for a full sentence, the U.S. Department of Justice said Tuesday.

  • January 31, 2023

    IRS Seeks Comments On Accounting Period Change Form

    The Internal Revenue Service asked Tuesday for comments on a form that must be submitted to apply for certain annual accounting period changes.

  • January 30, 2023

    New ACA Birth Control Exemptions Cover Faith, Not Morality

    The Biden administration on Monday proposed tightening the Affordable Care Act's contraception mandate to eliminate a moral exemption that the Trump administration crafted and the U.S. Supreme Court upheld, eliciting both praise and outcry in the long-running saga's latest chapter.

  • January 30, 2023

    Couple's Mileage Log Lacked Credibility, Tax Court Says

    A South Carolina couple cannot deduct driving expenses for a side business because their mileage logs showed discrepancies and their explanations of the discrepancies lacked credibility, the U.S. Tax Court ruled Monday.

  • January 30, 2023

    Seychelles Co. Fights To Keep $22M Award Alive

    The Republic of Guinea's move to throw out a $22 million award against it is another attempt to relitigate a dispute it lost, a Seychelles-based consultant told a U.S. federal court.

  • January 30, 2023

    IRS Seeks Input On Tuition Payment Form

    The Internal Revenue Service said Monday that it wants feedback on several forms, including one that certain educational institutions use to report tuition payments.

  • January 30, 2023

    Trump Drops Deutsche Bank Suit Over Financial Docs

    Former President Donald Trump is voluntarily dropping his suit against two House committees that had sought his financial records from Deutsche Bank, telling a New York federal court that the newly Republican-led House hasn't reissued the subpoenas seeking the records.

  • January 30, 2023

    V&E Hires Include Former Co-Chair Of Cooley's Tax Practice

    Vinson & Elkins LLP announced Monday that it is bolstering its tax controversy and litigation practice with the hires of two former Cooley LLP partners, including the former co-chair of Cooley's tax practice, who will now co-head V&E's practice.

  • January 30, 2023

    IRS Controls Over Purchase Cards Effective, TIGTA Says

    The Internal Revenue Service is largely effective at preventing employees from abusing government purchase cards, with only eight confirmed reportable violations from April 2022 through September 2022, the Treasury Inspector General for Tax Administration said in a report released Monday.

  • January 30, 2023

    Mellon Estate Pushes For $69M Tax Refund After Settlement

    Executors of the estate of Pittsburgh billionaire and newspaper publisher Richard Mellon Scaife asked a Pennsylvania federal court to force the IRS to refund nearly $69 million in estate taxes, saying a $200 million settlement with Scaife's children retroactively reduced the estate's value.

  • January 30, 2023

    Interest Expense Deduction Cap May Sting More This Year

    U.S. companies grappling with rising interest rates may face related tax complications under a measure that restricts deductions for interest paid on borrowed funds, in part because of a tightened cap that remained intact under Congress' recent spending bill.

  • January 27, 2023

    Int'l Details In Trump's Taxes Revive Constitutional Questions

    The disclosure of former President Donald Trump's tax returns showing the extent of foreign taxes paid and holdings overseas during his presidency has revived questions about the constitutionality of his foreign business interests.

  • January 27, 2023

    Ex-IRS Worker Found Guilty Of Tax Crimes, Identity Theft

    A California federal jury convicted a former IRS customer representative on more than a dozen counts of identity theft and tax crimes after prosecutors said she directed trumped-up refunds for her personal clients into her own bank account, the U.S. Department of Justice announced Friday.

  • January 27, 2023

    Longtime Fugitive Cops To $2.5M Fraud Schemes

    A former San Diego resident has pled guilty in three separate cases to charges of bail jumping, tax evasion and defrauding investors after spending more than two decades as a fugitive.

  • January 27, 2023

    Pot Co. Loses Bid To Void IRS Summonses At 10th Circ.

    A Colorado marijuana dispensary lost its appeal to quash Internal Revenue Service summonses seeking financial records from a state regulator under a 10th Circuit decision Friday that disregarded Justice Clarence Thomas' criticism of federal regulation of cannabis.

Expert Analysis

  • How Cos. Can Prep For Alcohol Beverage Excise Tax Changes

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    The Craft Beverage Modernization Act will soon undergo a transition in administration to the Alcohol and Tobacco Tax and Trade Bureau, and importers or producers should address any issues that may arise under the act, such as foreign producers not being familiar with the mechanics of the TTB, say Louis Terminello and Bradley Berkman at Greenspoon Marder.

  • New R&E Capitalization A Costly Change For Companies

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    Unless modified by legislation in the coming weeks, radical new capitalization rules for research and experimentation costs mean companies should brace for the loss of a major tax break starting with their 2022 tax returns, says Nancy Dollar at Hanson Bridgett.

  • Congress Is Right To Advance Comprehensive Retirement Bill

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    As 2022 comes to a close, Congress' move to include the Secure 2.0 Act, a comprehensive retirement bill, in its omnibus spending package will bring retirees and those nearing retirement more peace of mind regarding their 401(k)s, IRAs and pensions, while reducing red tape for employers, says Andy Banducci at the ERISA Industry Committee.

  • 10 Pre-Deal Considerations In Cross-Border M&A Transactions

    Excerpt from Practical Guidance
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    Sergio Galvis and Benjamin Kent at Sullivan & Cromwell discuss steps that can be taken to preemptively address important issues that acquirers of foreign businesses encounter in cross-border M&A transactions, including tax planning and political risk.

  • Clean Hydrogen Developers Should Track Incentives, Risks

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    Clean hydrogen project developers and investors should be aware of new funding opportunities from the U.S. Department of Energy and tax benefits under the Inflation Reduction Act, but must also guard against risks associated with new and evolving technologies, say Pamela Wu and Kirstin Gibbs at Morgan Lewis.

  • IRS Starts Clock On Energy Projects' Labor Rule Exemption

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    A U.S. Department of the Treasury notice published this week started the 60-day clock for clean energy projects seeking to be grandfathered from having to meet new labor requirements to qualify for enhanced tax credits, and uncertainty about how the provisions will apply should be incentive for some investors to begin construction soon, say attorneys at Eversheds Sutherland.

  • Foreign Tax Credit Proposal Is Some Help, But More Is Needed

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    New foreign tax credit regulations proposed by the U.S. Treasury Department provided some measure of relief on cost recovery and royalty withholding, two of the most troublesome aspects of the 2021 final foreign tax credit regulations, but the final regulations are still harmful to many taxpayers, making litigation inevitable, say attorneys at Fenwick.

  • Anticipating The New Congress' Private Sector Investigations

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    With Republicans claiming a new majority in the House of Representatives in the upcoming Congress, corporates and individuals should expect a sea change in Congress' investigative priorities and areas of focus — and private sector entities can take prudential steps in the near term to best prepare for and mitigate risk, say attorneys at Latham.

  • Tax Equity Requires Reinstating The Home Office Deduction

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    Congress should restore the home office deduction for W-2 workers in the interest of tax equity because permanently remote workers now bear the cost of creating quiet, dedicated work spaces, a pandemic-related shift unforeseen when the deduction was eliminated by 2017's Tax Cuts and Jobs Act, say James Mahon and Samantha Lesser at Becker.

  • Keys To IRA Tax Breaks For US Green Energy, EV Production

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    The Inflation Reduction Act includes three powerful tax incentives for domestic production of renewable energy projects and electric vehicles — but there are key questions that investors and manufacturers must ask when evaluating whether they can take advantage of these incentives, say attorneys at Troutman Pepper.

  • Crypto Case Failed To Clarify Taxation Of Staking Rewards

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    A Tennessee federal court's recent dismissal of Jarrett v. U.S. — after the IRS issued a refund for taxes paid on cryptocurrency and mooted a greater question about the tax treatment of staking rewards — leaves the crypto industry in need of guidance on the IRS’ position, say attorneys at Cadwalader.

  • How The IRS May Define 'Clean Hydrogen'

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    The Internal Revenue Service is still taking comments on how to define "clean hydrogen" for purposes of Inflation Reduction Act tax credits, but developers can look to the IRA's legislative history — as well as the European Union's struggle to define "green hydrogen" — as guideposts, says Ben Reiter at Nixon Peabody.

  • What To Expect From The Post-Midterms Lame-Duck Session

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    Depending on the results of the midterm elections, the upcoming lame-duck session may be the last chance for Congress to enact meaningful legislation for the next several years, so organizations must push through legislative priorities now, lest they are forced to restart their efforts in a much different environment next year, says James Brandell at Dykema.

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