Federal

  • November 07, 2022

    Trump Org. Appeals Monitorship, Says It May 'Grind To A Halt'

    Donald Trump on Monday sought to halt and overturn a New York judge's order to install a monitor over the Trump Organization, claiming the court overreached by tying up "nearly $5 billion in assets" during the attorney general's $250 million fraud lawsuit.

  • November 07, 2022

    Tax Group Asks Justices To Vacate Easement Regulations

    The U.S. Supreme Court should overturn a Sixth Circuit decision finding Treasury complied with public notice rules when issuing conservation deduction regulations, a taxpayers group said Monday, arguing that the government is punishing taxpayers who donate land with shifting standards and stiff penalties.

  • November 07, 2022

    Justices Won't Hear Contractor's Tax Refund Challenge

    The U.S. Supreme Court on Monday declined to take up an appeal of a Fourth Circuit ruling that the U.S. Tax Court cannot order the IRS to pay a contractor a tax refund after the agency admitted it miscalculated his original tax bill.

  • November 07, 2022

    Israeli Pet Toy Co. Founder Owes $3.6M Over FBARs, US Says

    An Israeli dual citizen who founded a pet toy company owes $3.6 million in penalties for willfully failing to file reports of foreign bank and financial accounts in Israel and Switzerland, the U.S. government said in a complaint filed in Washington federal court.

  • November 07, 2022

    Court Should Ax Ariz.'s Revived ARPA Fight, Treasury Says

    A federal court should toss Arizona's revived challenge to the American Rescue Plan Act's prohibition against states using federal aid to subsidize tax cuts or other revenue reductions, the U.S. Treasury Department said.

  • November 07, 2022

    IRS Issues Amended Retirement Plan Determination Rules

    The Internal Revenue Service released guidance Monday that amends rules for seeking determinations on certain retirement plans.

  • November 07, 2022

    Gorsuch Excoriates Chevron In Denied Veterans Benefits Case

    The U.S. Supreme Court on Monday opted not to review a veterans benefits case that had been presented as a chance to overturn the Chevron doctrine, prompting a harsh dissent from Justice Neil Gorsuch, who said the judiciary is abdicating its constitutional duty with excessive deference to executive branch agencies.

  • November 07, 2022

    Justices Won't Review Wilmington Trust Mismanagement Suit

    The U.S. Supreme Court won't review a suit alleging that wealth management firm Wilmington Trust Co. mismanaged a multimillion-dollar trust for a Carnation Milk heiress, including failing to engage in tax planning, according to an order list released Monday.  

  • November 07, 2022

    IRS Seeks Feedback On Disclosure Forms

    The Internal Revenue Service sought feedback Monday on forms used to make disclosures that can lower penalties for understating tax liabilities or ignoring rules.

  • November 07, 2022

    1st Circ. Won't Rethink Revival Of IRS Crypto Doc Seizure Case

    The First Circuit will not rethink its decision to allow a New Hampshire man to challenge the Internal Revenue Service's procurement of his cryptocurrency records in federal court.

  • November 04, 2022

    Justice Barrett Again Rejects Challenge To Student Relief Plan

    Justice Amy Coney Barrett denied two Indiana taxpayers an emergency injunction to halt President Joe Biden's sweeping student debt-relief program in a ruling Friday that represented the second time Justice Barrett has blocked a challenge to the program in two weeks.

  • November 04, 2022

    Weekly Internal Revenue Bulletin

    The Internal Revenue Service released its weekly bulletin Friday, which included proposed rules that would increase user fees for enrolled actuaries to $680.

  • November 04, 2022

    Auto Industry May Need More Time To Meet EV Credit Rules

    New domestic sourcing requirements will take effect next year for the federal electric vehicle tax credit, but relatively few vehicles may qualify initially due to disruptions in the supply chain, leading to calls for a delay.

  • November 04, 2022

    Microcaptive Disclosure On Return May Avert Penalty, IRS Says

    A taxpayer that completely describes a microcaptive insurance transaction in a timely return, but not on a separate disclosure form required by an Internal Revenue Service notice, has probably done enough to avoid a 40% nondisclosure penalty, the IRS said Friday.

  • November 04, 2022

    9th Circ. Vacates Denial Of Ex-DOJ Atty's IRS Court Costs

    The Ninth Circuit on Friday undid a U.S. Tax Court decision denying a former Department of Justice attorney $31,600 in litigation costs after he successfully challenged an IRS bill, finding the lower court should consider his challenges to the agency's litigation position.

  • November 04, 2022

    No Trial Needed For Most Of $21M FBAR Case, Gov't Says

    The U.S. government urged a Florida federal court to reject arguments from a Texaco heiress' estate that's fighting more than $20.9 million in offshore account penalties, contending that the only dispute for a jury is whether her conduct was willful.

  • November 04, 2022

    IRS Seeks Comments On Real Estate Interest Transfer Form

    The Internal Revenue Service said Friday that it wanted comments on a form for reporting certain real estate mortgage investment conduit interest transfers.

  • November 04, 2022

    House Bill Would Exclude Military Needs Allowance From Income

    The basic needs allowance would be excluded from the gross income calculation of members of the U.S. military under a bill introduced in the House of Representatives.

  • November 04, 2022

    10th Circ. Rejects Ex-Ballard Spahr Partner's Energy Credits

    The U.S. Tax Court properly denied depreciation deductions and energy credits to an ex-Ballard Spahr LLP partner caught up in a $50 million solar tax credit scheme, the Tenth Circuit said Friday, finding his solar lens business activities lacked a profit motive.

  • November 04, 2022

    Trump Org. Trial Delayed Again With Key Witness Still Unwell

    The Manhattan district attorney's criminal case against the Trump Organization was delayed again Friday when the judge learned company controller and lead witness Jeffrey McConney was "still sick" with COVID-19, a court official said, pushing trial back another week.

  • November 04, 2022

    OECD's Former Tax Chief Leaves Institution Transformed

    Pascal Saint-Amans, who stepped down as the Organization for Economic Cooperation and Development's tax chief this month, is leaving at a time when what is arguably his greatest achievement, a sweeping agreement signed by 137 countries a year ago, is crumbling.

  • November 04, 2022

    Fla. Executors Say IRS Owes Canadian's Estate $500K

    The IRS must refund an incorrectly assessed income tax payment of more than $500,000 to a Canadian estate that should have received a deduction for Quebec estate taxes paid on $1.4 million, Florida executors said in a complaint filed in federal court.

  • November 04, 2022

    Taxation With Representation: Simpson Thacher, Davis Polk

    In this week's Taxation With Representation, Blackstone Inc. will buy a majority stake in a portion of Emerson Electric Co., shareholders are taking Atlas Corp. private, Johnson & Johnson will buy Abiomed, and a joint venture acquired a timberlands portfolio.

  • November 04, 2022

    CBD Co., Founder Ordered To Arbitrate Over $5M Tax Bill

    A Nevada federal judge ordered a CBD company fighting with its co-founder over who should pay a $5 million tax bill to resolve the issue in arbitration, saying federal laws and contracts the parties signed require it.

  • November 04, 2022

    IRS Urges Enforcement Of Summons On Org. In Tax Probe

    A Louisiana federal court should force a foundation to comply with an Internal Revenue Service summons seeking records for its investigation of a company's tax compliance, the agency told the court.

Expert Analysis

  • The Highs And Lows Of Tax Controversy In 2021

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    Lawrence Hill at Steptoe & Johnson reviews the ups and downs of tax controversy practice in 2021, including the continued effects of the pandemic, troubling decisions on attorney-client privilege and an IRS comeback on transfer pricing.

  • A Look At Tax Treatment Of Noncompetes In M&A: Part 2

    Excerpt from Practical Guidance
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    Covenants that restrict a seller of business assets from competing against the purchasing party can be prone to challenges because the allocation of value to intangible assets is a subjective exercise with significant tax implications that may affect the merits of the deal, says Peter Miller at LexisNexis.

  • A Look At Tax Treatment Of Noncompetes In M&A: Part 1

    Excerpt from Practical Guidance
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    In negotiating to consummate a deal, parties must pay attention to the tax consequences of covenants that restrict a seller of business assets from competing against the purchasing party, says Peter Miller at LexisNexis.

  • How Budget Bill Could Affect Employer Health, Benefit Plans

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    Following the House's recent passage of President Joe Biden’s $1.75 trillion spending bill — the Build Back Better Act — employers should carefully consider several of the proposal’s health care and benefits provisions, which could pose immediate compliance challenges if the act is signed into law this year, say Anne Hall and Tim Kennedy at Hall Benefits Law.

  • 3 Forces That Will Define Sales Tax Compliance In 2022

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    As we head into 2022, it's likely that many of the legal and cultural shifts we saw this year — such as increased adoption of economic nexus and marketplace facilitator laws, growth in state budgets and continuation of remote work — will define sales tax compliance in the new year, says Liz Armbruester at Avalara.

  • When And How To Depose Fact Witnesses Remotely In 2022

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    Tim Tryniecki and Thomas Mudd at MG+M offer a series of practice tips for successfully conducting remote depositions of often-inexperienced fact witnesses, as the virtual court proceedings sparked by COVID-19 look set to become a part of the legal landscape next year.

  • EU, US Carbon Import Tax Proposals: What Cos. Must Know

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    With the European Union working on a carbon border adjustment mechanism, and congressional Democrats formulating their own carbon import tax plans, U.S. businesses — especially those in emissions-intensive, trade-exposed industry sectors — could face adverse trade effects, supply chain problems and increased transactional costs, say attorneys at Hogan Lovells.

  • Navigating CARES Act Social Security Tax Deferral Payments

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    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

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    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

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    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

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    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

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    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

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    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.

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