Federal

  • January 23, 2023

    Appraisal Behind $1.6M Deduction Improper, Tax Court Says

    The appraisal backing up a California couple's $1.6 million deduction for a donation of company units to a charity doesn't meet a statutory requirement for claiming charitable contribution deductions, the U.S. Tax Court said Monday.

  • January 23, 2023

    Court Dismisses Oil Co.'s $1.3B Tax Suit At Co.'s Request

    A Texas federal court dismissed a $1.3 billion tax dispute at the request of the oil company that brought it after ExxonMobil lost a similar case in the Fifth Circuit last year.

  • January 23, 2023

    Tax Court Says Ex-Spouse's Fiscal Control Excuses Woman

    The U.S. Tax Court decided Monday to grant a Californian partial relief from tax debt she incurred with her ex-husband, saying she was entitled to innocent spouse relief because he exerted control over their finances.

  • January 23, 2023

    Unions Urge Biden To Defy EU Threats On EV Tax Credit

    Several unions and nonprofits have urged President Joe Biden to defy the European Union's threats over the Inflation Reduction Act's electric vehicle tax credit by strictly interpreting provisions favoring domestically sourced batteries.

  • January 23, 2023

    IRS Gives Intermediaries Another Month To Renew Agreements

    Qualified intermediaries that want to renew their agreements for 2023 have until May, rather than April, to do so, the Internal Revenue Service said.

  • January 23, 2023

    Gorsuch Dissents Over Justices' Nix Of $3M FBAR Challenge

    The U.S. Supreme Court declined Monday to review a Boston woman's challenge to $3 million in penalties for failing to report her Swiss bank account, but Justice Neil Gorsuch disagreed, saying the U.S. government may have violated the woman's constitutional protection against excessive fines.

  • January 23, 2023

    High Court Won't Take On Texas Atty's Tax Fraud Suit

    The U.S. Supreme Court refused to hear a Texas attorney's fight to escape a conspiracy conviction connected to a client's $1.1 million in unpaid taxes despite his claims that the federal jury didn't receive instructions on how the Internal Revenue Service goes about collections, according to a denial issued Monday.

  • January 23, 2023

    Tax Group Of The Year: Mayer Brown

    Mayer Brown LLP's successful appeal for Fidelity Investments in a closely watched $26 million tax credit dispute was one of several high-profile wins over the past year that earned the firm a spot among Law360's 2022 Tax Groups of the Year.

  • January 23, 2023

    High Court Drops Tax Law Firm's Privilege Case

    The U.S. Supreme Court on Monday dismissed an unnamed law firm's bid for the court to adopt a broad approach in determining whether dual-purpose client communications containing both legal and nonlegal advice are protected under attorney-client privilege.

  • 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.

Expert Analysis

  • Inflation Reduction Act A Boon To Hydrogen, Carbon Capture

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    The Inflation Reduction Act's tax credits and direct payments, extension of existing renewable electricity subsidies, and other benefits will accelerate hydrogen and carbon capture projects across the U.S. — and will likely draw capital into the country that would otherwise have gone to projects elsewhere, say attorneys at Shearman.

  • What The Inflation Reduction Act Has To Do With Crypto

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    The recently enacted Inflation Reduction Act’s $80 billion supplemental funding allotment for the IRS could have unexpectedly significant implications for the cryptocurrency market, which may find itself the target of ramped-up tax audits and enforcement, says cybersecurity consultant John Reed Stark.

  • Unpacking The New Stock Buyback Tax And Its Exceptions

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    Xenia Garofalo and Kyle Colonna at Eversheds Sutherland discuss provisions of the recently enacted tax on corporate stock repurchases, how its exceptions may be applied and what companies should consider when evaluating the cost of new or existing programs.

  • Health Issues To Watch In Inflation Act, Other Policy Initiatives

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    The newly signed Inflation Reduction Act includes a number of significant drug pricing reforms, and the future holds a wider array of health issues that may be addressed in pending legislation when Congress returns in September, says Miranda Franco at Holland & Knight.

  • How New Markets Tax Credit Can Help Pandemic Recovery

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    The New Markets Tax Credit program, designed to spur private investment in low-income, nonmetropolitan and distressed communities, is one potential remedy that can help alleviate the pandemic's negative impact on especially vulnerable areas, says Julia Fendler at Butler Snow.

  • Senate Cannabis Bill May Give Some Cos. A Competitive Edge

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    Though the recently introduced Cannabis Administration and Opportunity Act is unlikely to pass, it provides a bellwether for federal legalization, with a robust regulatory framework that would offer large food and beverage companies a structural advantage and poise multistate cannabis operators for further growth, say attorneys at Perkins Coie.

  • Lessons For Federal Lawmakers As Calif. Alters Cannabis Tax

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    California recently eliminated a cultivation tax that had for years burdened the state’s licensed cannabis market, providing important lessons for federal lawmakers on cumbersome regulations and unduly high taxes as they debate legalization, says Raza Lawrence at Zuber Lawler.

  • Tips On Qualified Small Business Stock Exclusions

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    While awaiting more Internal Revenue Service guidance on the maze of requirements a taxpayer must satisfy for the qualified small business stock exclusion, there are steps proactive taxpayers can take to ensure their ability to establish their qualifications if they are audited, says Stephen Josey at Kostelanetz & Fink.

  • Inside The OECD Transfer Pricing Documentation Guidance

    Excerpt from Practical Guidance
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    The Organization for Economic Cooperation and Development's recently modified documentation guidelines can assist tax administrations in developing requirements for transfer pricing risk assessments and evaluations, and help multinational entity taxpayers demonstrate satisfaction of the arm's-length principle, says Neil Aragones at Lexis Tax.

  • Superfund Tax Is Back: Implications For Chemical Industry

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    In light of the Internal Revenue Service's recently issued guidance on the reinstated Superfund tax, manufacturers, producers and importers should review their existing agreements that involve taxable chemicals and substances to determine who will be commercially responsible for the tax, say attorneys at Eversheds Sutherland.

  • Tech Co.'s Suit May Create Hurdles For Research Tax Credits

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    The recently filed U.S. Tax Court case Perficient v. Commissioner — challenging standards under research credit regulations that determine whether research is funded by any grant or contract — could make it difficult to substantiate research tax credits, say Dennis St. Martin and Kevin Benton at Grant Thornton.

  • Expected Retirement Law Changes May Spark ERISA Suits

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    As Congress is poised to pass bipartisan retirement legislation that could bring collective investment trusts and 403(b) plans together and may form a new wave of litigation under the Employee Retirement Security Act, it is helpful to review the important roles that they have played in prior waves of ERISA excessive fee cases, say attorneys at King & Spalding.

  • A Close Look At The Decentralized Effort To Tax Digital Assets

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    Clarity on taxation is one of the biggest hurdles to mass adoption of cryptocurrency, and although digital asset innovation has consistently outpaced worldwide government regulation, recent efforts in the U.S. and elsewhere hint at an emerging standard, says Joshua Smeltzer at Gray Reed.

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