Federal

  • January 27, 2023

    IRS Changes Real Estate Alternative Cost Method Rules

    Some real estate developers can use an abridged form when applying to use the alternative cost method when determining the basis of improved units for 2023 and onward, the Internal Revenue Service said in updated rules released Friday.

  • January 27, 2023

    IRS Says Loss Or Deduction Wouldn't Trigger Foreign Use

    A loss or deduction based on timing difference liabilities alone would not be considered a dual consolidated loss with a foreign use, the Internal Revenue Service said in a private letter ruling released Friday.

  • January 27, 2023

    GOP States Sue DOL Over Socially Conscious Investing Rule

    A coalition of 25 Republican state attorneys general sued the U.S. Department of Labor seeking to kill a recently finalized rule governing how retirement plan managers can consider such things as climate change and social justice when making investment decisions, arguing the agency exceeded its authority.

  • January 27, 2023

    IRS Says Drug Co. Must Capitalize Voucher Costs

    A pharmaceutical company that buys a voucher for expedited drug application review from another company must capitalize the costs to do so, the Internal Revenue Service's Office of Chief Counsel said in a memorandum released Friday.

  • January 27, 2023

    Taxation With Representation: Gibson Dunn, Davis Polk

    In this week's Taxation With Representation, Xylem Inc. agreed to buy Evoqua, Matador Resources Co. agreed to acquire Advance Energy Partners, Jungheinrich is acquiring Storage Solutions, and Emerson Electric Co. said it's "pleased to see engagement" in its bid to purchase National Instruments.

  • January 27, 2023

    JCT Outlines Dynamic Scoring Revenue Estimate For Tax Bills

    The Joint Committee on Taxation will use dynamic scoring to estimate revenues for bills with gross budget effects of more than $66 billion during the current Congress, according to a report on the committee's revenue estimating process released Friday.

  • January 27, 2023

    Tax Court Is Right To Drop Whistleblower Case, IRS Says

    The U.S. Tax Court correctly dismissed a whistleblower's challenge to an Internal Revenue Service rejection of his award application, the agency told the D.C. Circuit, arguing the Tax Court lacks authority to weigh in on agency decisions to pursue whistleblower tips.

  • January 27, 2023

    IRS Seeks Comments On Late Real Estate Election Rules

    The Internal Revenue Service asked for comments on rules allowing late elections regarding real estate interests.

  • January 27, 2023

    No Weekly Internal Revenue Bulletin Articles For Jan. 30

    The Internal Revenue Service released its weekly bulletin, which said there were no articles to be published for Jan. 30.

  • January 26, 2023

    Nixon Peabody Gets OK For Deal With DC Solar Investors

    A California state court judge has approved a settlement between Nixon Peabody LLP and DC Solar investors who claimed the firm saw warning signs that the now-defunct solar power supplier was running a billion-dollar Ponzi scheme that promised payments based on sublease revenue from mobile solar generators. 

  • January 26, 2023

    IRS Mulls Expedited Private Rulings For No-Income Spinoffs

    The Internal Revenue Service is considering fast-tracking requests for private letter rulings on spinoff transactions that do not include the collection of income, an agency counsel said Thursday.

  • January 26, 2023

    Fla. Rep. Named Vice Chairman Of House Tax Panel

    A Florida congressman was named vice chairman of the House Ways and Means Committee on Thursday, making him the second most powerful Republican on the tax-writing committee. 

  • January 26, 2023

    8th Circ. Affirms Kick Of DirecTV Fee Fight To State Court

    The Eighth Circuit on Thursday upheld a lower court decision to send a suit from municipalities alleging DirecTV and Dish Network owe video fees back to state court a second time.

  • January 26, 2023

    Feds Want Full Sentence For Ex-CEO In $600K Tax Evasion

    Federal prosecutors argued against a reduced sentence for a former tech CEO who pled guilty to tax evasion and causing a $600,000 tax loss, saying a Florida federal court should fulfill society's expectation that corporate leaders be punished for abusing their responsibilities.

  • January 26, 2023

    Next OECD Min. Tax Doc. To Address GILTI, US Official Says

    The upcoming administrative guidance on the Organization for Economic Cooperation and Development's global minimum tax will include specific language for how companies should treat the U.S. tax on global intangible low-taxed income, a U.S. Treasury Department official said Thursday.

  • January 26, 2023

    IRS Names Calendar Administrators For 47 Tax Court Sessions

    The Internal Revenue Service named calendar administrators for 47 U.S. Tax Court sessions from March to June, according to a notice released Thursday.

  • January 26, 2023

    US Expatriations Rose In 4th Quarter, IRS Says

    The number of people expatriated from the U.S. partially rebounded during the fourth quarter of 2022 compared with the previous quarter, the Internal Revenue Service said in a notice released Thursday.

  • January 26, 2023

    US House Bill Would Repeal Methane Emissions Tax

    The federal tax on methane emissions would be eliminated under a bill introduced in the U.S. House of Representatives.

  • January 25, 2023

    Jury Finds Ohio Defense Atty Guilty In $1.3M Tax Refund Scam

    An Ohio criminal defense attorney was found guilty Wednesday of helping two men fleece the Internal Revenue Service out of $1.3 million, marking a delayed victory for federal prosecutors after they failed to secure a unanimous verdict against him during an initial trial last year.

  • January 25, 2023

    Manchin Bill Calls For Pause Of EV Tax Credit

    U.S. Sen. Joe Manchin announced a bill Wednesday pushing the U.S. Department of the Treasury to ensure compliance with certain supply chain requirements before implementing new consumer electric vehicle tax credits, as intended by the Inflation Reduction Act of 2022.

  • January 25, 2023

    Tax Court Shrinks Ill. Co.'s $1M Green Building Deduction

    An Illinois engineering company that claimed a $1 million deduction for installing an energy-efficient HVAC system at a veteran's hospital can only deduct $300,000, the U.S. Tax Court ruled Wednesday, saying most of the project occurred outside the claim's tax year.

  • January 25, 2023

    Official Defends Policy Behind Foreign Tax Credit Rules

    Proposed foreign tax credit regulations drew a line to prevent the U.S. from deferring to foreign characterizations of transactions, a U.S. Department of the Treasury official said Wednesday, citing the guidance's underlying interest in denying credits for digital services taxes.

  • January 25, 2023

    6th Circ. Judge 'Baffled' By 'Casual' Mich. Mistrial Decision

    A Sixth Circuit judge on Wednesday said he was stumped by a district court judge's decision to declare a mistrial after his wife and a material witness tested positive for COVID-19, seeming to side with a business owner accused of payroll tax evasion who said there were ways to continue the trial safely.

  • January 25, 2023

    New AMT Rules Will Be Tough To Dodge, Hill Aide Says

    The Treasury Department's forthcoming rules carrying out the new 15% corporate alternative minimum tax will not allow companies to pursue aggressive tax planning to escape taxation easily, a senior Senate Democratic tax staff member said Wednesday.

  • January 25, 2023

    Treasury Official Calls For Crypto-Asset Reporting Law

    The U.S. Department of the Treasury can now require reporting for much of the transaction information called for in the OECD's crypto-asset reporting framework and could fully implement the framework if a fiscal 2023 Green Book proposal became law, a Treasury official said Wednesday.

Expert Analysis

  • IRS' Tax Gap Statistics Don't Paint A Full Compliance Picture

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    The Internal Revenue Service's recent report indicating a widening tax gap sheds important light on tax compliance, underlines key pressure points and provides insights into how tax administration could be improved; but tax gap estimates also have their limits, says Joyce Beebe at Rice University.

  • Labor Rules Will Unlock IRA Tax Credits' Full Value

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    Companies that make sure to follow the Inflation Reduction Act's unique labor rules will be in the best position to unlock the law's tremendous tax incentives aimed at promoting renewable energy, lowering greenhouse gas emissions and encouraging carbon sequestration, say Nicole Elliott and Timothy Taylor at Holland & Knight.

  • Making The Most Of New Tax Credits For EV Charging Stations

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    The Inflation Reduction Act recently extended, expanded and renewed the tax credits available for electric vehicle charging station projects — but developers must navigate new challenges, including geographic and prevailing wage requirements, to take full advantage of the updated credits, says James English at Clark Hill.

  • Key Income Tax Issues Triggered By Remote Employees

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    A host of fact-specific tax determinations arise in connection with remote work arrangements, from defining working-condition fringe benefit exclusions to nexus-dependent state withholding obligations, complicating compliance for corporate tax counsel and human resources professionals, say Thomas Cryan and Spencer Walters at Ivins Phillips.

  • 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.

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