Federal

  • September 29, 2022

    Tax Court Lets Man Duck Fines For Claims Deemed Meritless

    A North Carolina man is liable for additions to his tax liabilities for failing to file his returns for a couple of years, but doesn't owe penalties for making groundless arguments challenging the IRS, the U.S. Tax Court said Thursday.

  • September 29, 2022

    TIGTA Says IRS Services In Cloud Lacked Full Security

    The Internal Revenue Service has put services involving taxpayer data in the cloud without the necessary security infrastructure to protect them, the Treasury Inspector General for Tax Administration said in a report released Thursday.

  • September 29, 2022

    Tax Court Denies Man Refund For Payments Toward Ex's Bill

    An Ohio man is ineligible for a refund for payments he made toward his ex-wife's tax liability because he made the payments to his wife and not directly to the IRS, the U.S. Tax Court ruled Thursday.

  • September 29, 2022

    IRS Didn't Fully Comply With Evaluation Rules, TIGTA Says

    Some Internal Revenue Service employee evaluations in 2021 violated prohibitions on including tax enforcement records, the Treasury Inspector General for Tax Administration said in a report released Thursday.

  • September 29, 2022

    Wyden Probe Shines Light On Private Placement Insurance

    The top Senate tax writer's investigation into private placement life insurance is bringing scrutiny to a once-obscure estate planning tool for wealthy families that some tax and finance practitioners see as a potentially abusive method for tax evasion.

  • September 29, 2022

    Bats Entitled To $9.1M Deductions For Software, 10th Circ. Told

    Bats Global Markets is entitled to more than $9.1 million in deductions for fees it charged customers to access securities trading software, the U.S. stock exchange operator told the Tenth Circuit, arguing the U.S. Tax Court wrongly denied the deductions.

  • September 29, 2022

    RI Mortgage Broker Pleads Guilty To Wire Fraud, Tax Evasion

    A mortgage broker who allegedly swindled $14 million from investors pled guilty in Rhode Island federal court to wire fraud and evading taxes by falsifying corporate returns to avoid up to $3.5 million in taxes.

  • September 28, 2022

    Supreme Court Urged To Scrutinize Limits On FBAR Penalties

    The U.S. Supreme Court should secure constitutional protections against extreme government fines after the First Circuit determined that such protections don't apply to IRS foreign account penalties, a think tank and law professor told the court Wednesday.

  • September 28, 2022

    US, Valero End Dispute In Green Fuel Tax Refund Suit

    Valero and the U.S. government agreed to end a dispute over $120.5 million in denied tax refunds for the energy company's use of liquid fuels derived from biomass in alternative fuel mixtures, both sides told the Fifth Circuit on Wednesday. 

  • September 28, 2022

    Farmers Can't Claim Deductions For Crops, Tax Court Says

    Two Indiana farmers cannot claim deductions for $1.1 million in crops transferred to charitable remainder annuity trusts, the U.S. Tax Court decided Wednesday, saying the corn and soybeans were ordinary income from sales to customers.

  • September 28, 2022

    IRS Updates List Of Areas For Livestock Replacement Tax Relief

    The Internal Revenue Service on Wednesday released an updated list of jurisdictions where farmers and ranchers qualify for extended tax relief for livestock sold because the areas were affected by severe drought.

  • September 28, 2022

    Trump Claims NY Is Judge-Shopping $250M Fraud Case

    Former President Donald Trump sought on Wednesday to have New York state's $250 million fraud lawsuit against him assigned to a judge different from the one who held him in contempt in a subpoena enforcement proceeding, rejecting the idea the cases were related.

  • September 28, 2022

    Dentist Can't Sue IRS Agents Over Criminal Probe, Court Says

    A dentist can't proceed with his case against IRS agents accusing them of violating his constitutional rights following a criminal probe that culminated in a jury finding him not guilty of filing a false return, a Pennsylvania federal court found.

  • September 28, 2022

    IRS' IT Troubleshooting Failed Most Management Metrics

    The Internal Revenue Service's information technology troubleshooting mechanism failed to meet about 52% of its management metrics in any month of fiscal year 2021, the Treasury Inspector General for Tax Administration said in a report released Wednesday.

  • September 28, 2022

    Estate Asks 5th Circ. To Rethink $690K Foreign Trust Penalties

    An estate that received $690,000 in Internal Revenue Service late penalties for its founder's alleged failure to report a foreign trust asked the Fifth Circuit to rehear the case, saying its previous decision was biased and ignored case law.

  • September 27, 2022

    Tax Court Hands Out Mixed Ruling On Couple's Deductions

    A Florida couple are entitled to tax deductions for the use of their vehicles for work but are not eligible for the various other deductions they claimed, including for meals and medical costs, the U.S. Tax Court said Tuesday.

  • September 27, 2022

    Ex-Pharma CEO Denied 3rd Circ. Rehearing In $1M FBAR Case

    The Third Circuit declined Tuesday to reconsider its decision backing $1 million in penalties imposed against a former pharmaceutical CEO for failing to report his Swiss bank accounts.

  • September 27, 2022

    Treasury Urged To Clarify Treatment Of Geothermal Leases

    More than 1,000 companies asked the U.S. Department of the Treasury to clarify the tax treatment of leased geothermal heating and cooling systems, saying in a letter released Tuesday that such a move would stimulate growth in the industry.

  • September 27, 2022

    Loan Forgiveness Program Creates Tax Headaches, Suit Says

    A lawyer asked an Indiana federal court Tuesday to stop the U.S. Department of Education from enacting the White House's sweeping loan forgiveness program, arguing that forgiving his loans will actually increase his tax burden.

  • September 27, 2022

    Paralegal Pleads Guilty To Charitable Deduction Tax Scheme

    A Cleveland paralegal pled guilty in an Ohio federal court to participating in a financial services scheme to allow wealthy clients to write off made-up charitable donations while retaining control of the assets they claimed they donated.

  • September 27, 2022

    Alaskan Storm Victims Eligible For Tax Relief, IRS Says

    People in Alaska affected by recent storms and flooding have more time to file and pay certain taxes that were due starting Sept. 15, including estimated income tax payments and payroll tax returns, the Internal Revenue Service said Tuesday.

  • September 27, 2022

    Justice Thomas' Pot Statements Debated In 10th Circ. Tax Row

    Although U.S. Supreme Court Justice Clarence Thomas has questioned the federal prohibition on state-legal cannabis, a Tenth Circuit judge during oral arguments Tuesday cast doubt on whether those statements support a dispensary's challenge to IRS summonses seeking its financial records.

  • September 27, 2022

    TIGTA Finds IRS Reporting On Pandemic Funds Lacking

    The IRS failed to routinely provide Congress required quarterly reports on how it spent pandemic response funds provided under two laws, and updates it did provide had only limited information, the Treasury Inspector General for Tax Administration reported Tuesday.

  • September 27, 2022

    11th Circ. Revives Fla. Atty's Bid To Block IRS On Testimony

    A Florida attorney can seek a protective order to bar the IRS from using potentially incriminating testimony in a penalty investigation into allegations that he ran a $35 million tax scheme, the Eleventh Circuit ruled, reversing a lower court's decision.

  • September 27, 2022

    TIGTA Finds IRS Missed $3.7B In Child Tax Credit Payments

    Nearly $3.7 billion in advance child tax credit payments were not disbursed to eligible taxpayers from July to November 2021, according to an audit report released Tuesday by the Treasury Inspector General for Tax Administration. 

Expert Analysis

  • Justices Must Apply Law Evenly In Shadow Docket Rulings

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    In recent shadow docket decisions, the U.S. Supreme Court has inconsistently applied the requirement that parties demonstrate irreparable harm to obtain injunctive relief, which is problematic for two separate but related reasons, says David Hopkins at Benesch.

  • Federal Cannabis Bill Needs A Regulatory Plan To Succeed

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    The Marijuana Opportunity Reinvestment and Expungement Act, which was passed by the U.S. House of Representatives on Friday, is laudable but fundamentally flawed because it lacks a robust regulatory plan that would allow for bipartisan support, says Andrew Kline at Perkins Coie.

  • To Capture All Digital Transactions, Tax Rules Must Keep Up

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    Legislative efforts to capture revenue from digital-transaction income can do better than the American Rescue Plan Act, which recently went into effect but employs definitions that have already been surpassed by technology, says Matthew Agramonte at Shutts & Bowen.

  • Lessons From Recent PPP Loan And COVID Fraud Cases

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    Following President Joe Biden's recent pledge to expand enforcement efforts against pandemic and Paycheck Protection Program loan fraud, a look at the U.S. Department of Justice's recent criminal and civil enforcement actions sheds light on its evolving priorities, say Sara Lord and Aaron Danzig at Arnall Golden.

  • Ampersand Clarifies Power Project Placed-In-Service Analysis

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    The Federal Circuit's recent ruling in Ampersand Chowchilla Biomass v. U.S. affirms a lower court's decision regarding when power generation projects were placed in service for federal income tax purposes, but also highlights that the placed-in-service analysis is not one size fits all, say David Burton and Viktoria Vozarova at Norton Rose.

  • Simplifying Tax Issues For Nonresident Athletes In Canada

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    Tax compliance can be particularly challenging for nonresident professional athletes playing in Canada, but as NHL contract negotiations approach a close, it's worth looking at some ways the tax burden can be mitigated, say Marie-France Dompierre and Marc Pietro Allard at Davies Ward.

  • Steps For Universities As DOJ Shifts Foreign Influence Policy

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    Notwithstanding Wednesday's U.S. Department of Justice announcement terminating the initiative targeting Chinese influence and raising the bar for criminal prosecutions, universities should ensure their compliance controls meet new disclosure standards and that they can efficiently respond to inquiries about employees' foreign connections, say attorneys at Covington.

  • How Gold Coin Tax Ruling May Apply To IRA Crypto Holdings

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    The U.S. Tax Court’s recent decision in McNulty v. Commissioner, affirming that a self-directed individual retirement account owner received taxable distributions in taking possession of her IRA’s gold coins, may have troublesome applications for retirement accounts with cryptocurrency holdings, says Luke Bailey at Clark Hill.

  • Why I'll Miss Arguing Before Justice Breyer

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    Carter Phillips at Sidley shares some of his fondest memories of retiring Justice Stephen Breyer both inside and out of the courtroom, and explains why he thinks the justice’s multipronged questions during U.S. Supreme Court oral arguments were everything an advocate could ask for.

  • Corporate Reporting Considerations As Tax Meets ESG

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    With the U.S. Securities and Exchange Commission filing season upon us amid increasing pressure for greater transparency around effective tax rates and tax strategies, multinational companies must decide how they will approach voluntary tax reporting and prepare their responses if they want to control the narrative, say Michael Lebovitz and Jenny Austin at Mayer Brown.

  • How To Navigate Equity Rollovers In A Tight M&A Market

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    As heavy competition for acquisition targets allows buyers to be more flexible in fulfilling their desire for management to roll equity and invest with them, businesses should be mindful that equity rollover transactions, which take many forms, also require thorough review as part of the overall transaction assessment, says Joshua Klein at Neal Gerber.

  • 11th Circ. Ruling Moves Circuits Closer To Tax Procedure Split

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    The Eleventh Circuit's recent decision in the conservation easement case Hewitt v. Commissioner of Internal Revenue, holding a long-standing tax regulation procedurally flawed under the Administrative Procedure Act, is unusual and may presage a circuit split over the APA's applicability in tax cases, say Maria Jones and Samuel Lapin at Miller & Chevalier.

  • How Justices May Interpret Statutory Time Bar In Tax Context

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    In Boechler PC v. Commissioner, the U.S. Supreme Court will rule on whether a tax court filing deadline acts as a jurisdictional limitation, and whether to broaden a jurisprudential trend that requires Congress to clearly state its intent if statutory time periods are to limit jurisdiction, say Saul Mezei and Terrell Ussing at Gibson Dunn.

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