Federal
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April 17, 2025
Man's Deportation Looms After Tax Evasion Plea Stands
A Connecticut federal judge denied a man's attempt to vacate his guilty plea for tax evasion, despite accepting that his lawyers had misled him into believing that if he received no prison time he could avoid mandatory detention and likely deportation by U.S. Immigration and Customs Enforcement.
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April 17, 2025
Harvard Says No Grounds For IRS To Deny Tax-Exempt Status
Harvard University said Thursday that there is no legal basis to rescind its tax-exempt status amid an investigation by President Donald Trump's administration into whether the university has violated the terms of that status.
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April 17, 2025
Tax Court Denies Horse Breeders' Claimed Losses
A Louisiana couple who bred, boarded and trained horses were correctly denied $867,000 in loss deductions over six years, the U.S. Tax Court said Thursday, because their activities weren't done for profit.
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April 17, 2025
Judge Refuses To Recuse Himself In Ga. Defamation Case
A Georgia federal judge on Thursday refused to disqualify himself from presiding over a defamation case arising from a family dispute related to a tax preparation business, while also rejecting a bid to transfer the matter to a federal court in California.
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April 16, 2025
Tax Court Says Hedge Fund Basket Options Abused Tax Perks
A Connecticut-based hedge fund has engaged in a complex stock-selling strategy using option contracts that the Internal Revenue Service had determined to be an abusive scheme to avoid paying high taxes on the capital gains, the U.S. Tax Court said Wednesday.
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April 16, 2025
Plans To Shelve IRS Direct File Draw Democrats' Ire
The Trump administration's decision to shutter the Internal Revenue Service's Direct File pilot program was criticized heavily by congressional Democrats, who argued on Wednesday that the program was remarkably successful.
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April 16, 2025
Union Denied More Time In Feds' Bid To Bless CBA Rebuke
A Kentucky federal judge has refused to delay an approaching hearing on the U.S. Department of the Treasury's bid to nullify its workers' union contracts, despite a union's assertion that it's been given little time to prepare for a consequential case and that it has yet to be served.
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April 16, 2025
DC Judge Considers Bid To Block IRS Info Sharing With ICE
A D.C. federal judge on Wednesday questioned whether immigrant advocacy groups have standing to block a tax information-sharing agreement between the IRS and immigration enforcement agencies, but she also outlined concerns that the agreement could be abused.
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April 16, 2025
Cannabis Co. Drops Back Taxes Case Against 2 Payroll Firms
A Washington cannabis company has dropped claims against a pair of payroll services providers accused of leaving the cannabis company with a $172,500 tax bill after failing to pay the Internal Revenue Service on its behalf.
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April 16, 2025
IRS Owes Worker A Refund On 401(k) Loan, Suit Says
The IRS is refusing to send money back to a worker who said a paid-off 401(k) loan was mistakenly counted as income in his tax return, according to a suit filed in Missouri federal court.
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April 16, 2025
IRS Publishes 2025 Average Residence Purchase Price Data
The Internal Revenue Service published data Wednesday on the average purchase price for U.S. residences in different areas, which is used to determine whether bond interest can be excluded from gross income.
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April 16, 2025
3rd Circ. Affirms 51 Months For False Tax Return Filings
The Third Circuit affirmed Wednesday a 51-month sentence of a woman who embezzled more than $1.6 million from her employer and pled guilty to wire fraud and filing false tax returns, rejecting her claim that the U.S. government breached her plea agreement.
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April 16, 2025
China's Long-Term Prospects Unfazed By Tariffs, Official Says
China's long-term prospects are unfazed by U.S. tariffs because of its industrial resilience, diversified trade and shift toward domestic consumption, a Chinese government official said Wednesday as the country posted 5.4% year-on-year growth in gross domestic product during the first quarter of 2025.
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April 16, 2025
Applicable Federal Rates To Continue Nosedive In May
Applicable federal rates for income tax purposes are set to mostly decrease in May for the third month in a row, the Internal Revenue Service said Wednesday.
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April 16, 2025
Hunter Biden Tax Probe Critic Named Acting IRS Chief
An Internal Revenue Service special agent who accused the U.S. Department of Justice of misconduct in an investigation of former President Joe Biden's son Hunter has been named the acting IRS commissioner, a U.S. Treasury Department spokesperson confirmed Wednesday.
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April 15, 2025
No Appeal For Green Energy Co. CEO In $40M Investor Suit
The CEO of a company purportedly funded by a green energy outfit can't appeal a judge's determination in a proposed investor class action that found the executive is subject to the Tennessee federal court's jurisdiction, saying he failed to meet the requirements for such an appeal.
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April 15, 2025
Bill To Ax Church Politics Ban Reignites Free-Speech Debate
More than a dozen congressional Republicans support what they characterize as free-speech legislation to overturn a 1954 tax law barring churches from endorsing candidates, despite warnings from some lawmakers and others that it could weaken church-state separation and flood politics with a new source of dark money.
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April 15, 2025
Late Filing Dooms Jeweler's Employment Case In Tax Court
The window to file a U.S. Tax Court petition for businesses challenging IRS employment tax determinations can be slackened in some cases, but a jewelry company's bid to extend its own filing deadline doesn't pass muster, the court said Tuesday.
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April 15, 2025
9th Circ. Backs Ex-Tax Office Worker's $110K Harassment Win
The Ninth Circuit declined to undo sanctions leveled against a tax and accounting company or reduce a $110,000 jury win handed to a former worker who claimed the business's owner sexually harassed her, ruling the company's arguments fell flat against a lower court's orders.
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April 15, 2025
Tax Court Rejects Kentucky Man's 'Frivolous Arguments'
A Kentucky man owes over $25,000 in taxes and additional penalties, the U.S. Tax Court found Tuesday, rejecting his "frivolous arguments" that he isn't a taxpayer and that his more than $141,000 in earnings weren't income.
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April 15, 2025
Senate Dems Call For Probe Into IRS Nominee's Business Ties
The IRS needs to investigate companies associated with President Donald Trump's nominee for IRS commissioner that are suspected of promoting a scheme to sell nonexistent tribal tax credits to investors, two Senate Finance Committee Democrats said in a letter published Tuesday.
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April 15, 2025
Trump's Tariff Reprieves Buy Lawyers Time To Strategize
President Donald Trump's expanded tariff exclusion for electronic goods from China and the pause on higher rates for all countries except China gives lawyers an opportunity to seek mitigation solutions for importers, but the moves do little to create long-term business certainty.
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April 15, 2025
IRS Issues Corp. Bond Monthly Yield Curve For April
The IRS published the corporate bond monthly yield curve Tuesday for use in calculations for defined benefit plans for April, as well as corresponding segment rates and other related provisions.
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April 15, 2025
Treasury Should Scrap Cloud Computing Rules, NFTC Says
The U.S. Treasury Department should withdraw proposed regulations for determining the source of income from cloud computing, according to the National Foreign Trade Council, which contended the rules add significant complexity to digital transactions.
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April 14, 2025
IRS-ICE Info Pact Lacks Needed Safeguards, Experts Say
The IRS recently agreed to share confidential tax return data with immigration enforcement agencies for criminal proceedings, saying the agreement complied with privacy laws, but tax and privacy experts said they had concerns that the deal was vague and lacked safeguards to ensure the information is lawfully used.
Expert Analysis
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Loper Bright Limits Federal Agencies' Ability To Alter Course
The U.S. Supreme Court's recent decision to dismantle Chevron deference also effectively overrules its 2005 decision in National Cable & Telecommunications Association v. Brand X, greatly diminishing agencies' ability to change regulatory course from one administration to the next, says Steven Gordon at Holland & Knight.
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A Guide To Long-Term, Part-Time Employee Determinations
With final regulations under the Secure Act requiring 401(k) retirement benefits for long-term, part-time employees expected soon, Amy Sheridan and David Guadagnoli at Sullivan & Worcester look at how the proposed rules would shift the risk-reward calculus on excluding categories of employees, and what plan sponsors would need to consider when designing retirement plans.
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After Chevron: Delegation Of Authority And Tax Regulators
The U.S. Department of the Treasury and the Internal Revenue Service will face higher standards following Loper Bright’s finding that courts should determine whether agency rules meet the best possible interpretation of the tax code, as well as the scope of the authority delegated by Congress, says Edward Froelich at McDermott.
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Lawyers Can Take Action To Honor The Voting Rights Act
As the Voting Rights Act reaches its 59th anniversary Tuesday, it must urgently be reinforced against recent efforts to dismantle voter protections, and lawyers can pitch in immediately by volunteering and taking on pro bono work to directly help safeguard the right to vote, says Anna Chu at We The Action.
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How To Grow Marketing, Biz Dev Teams In A Tight Market
Faced with fierce competition and rising operating costs, firms are feeling the pressure to build a well-oiled marketing and business development team that supports strategic priorities, but they’ll need to be flexible and creative given a tight talent market, says Ben Curle at Ambition.
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Rock Climbing Makes Me A Better Lawyer
Rock climbing requires problem-solving, focus, risk management and resilience, skills that are also invaluable assets in my role as a finance lawyer, says Mei Zhang at Haynes and Boone.
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Contract Disputes Recap: Preserving Payment Rights
Stephanie Magnell and Zachary Jacobson at Seyfarth examine three recent decisions that together illustrate the importance of keeping accurate records and adhering to contractual procedures to avoid inadvertently waiving contractual rights to cost reimbursements or nonroutine payments.
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Think Like A Lawyer: Dance The Legal Standard Two-Step
From rookie brief writers to Chief Justice John Roberts, lawyers should master the legal standard two-step — framing the governing standard at the outset, and clarifying why they meet that standard — which has benefits for both the drafter and reader, says Luke Andrews at Poole Huffman.
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After Jarkesy, IRS Must Course-Correct On Captive Insurance
The U.S. Supreme Court’s recent Securities and Exchange Commission v. Jarkesy decision has profound implications for other agencies, including the IRS, which must stop ignoring due process and curtailing congressional intent in its policing of captive insurance arrangements, says Peter Dawson at the 831(b) Institute.
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Lead Like 'Ted Lasso' By Embracing Cognitive Diversity
The Apple TV+ series “Ted Lasso” aptly illustrates how embracing cognitive diversity can be a winning strategy for teams, providing a useful lesson for law firms, which can benefit significantly from fresh, diverse perspectives and collaborative problem-solving, says Paul Manuele at PR Manuele Consulting.
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Class Actions At The Circuit Courts: July Lessons
In this month's review of class action appeals, Mitchell Engel at Shook Hardy considers cases touching on pre- and post-conviction detainment conditions, communications with class representatives, when the American Pipe tolling doctrine stops applying to modified classes, and more.
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Now More Than Ever, Lawyers Must Exhibit Professionalism
As society becomes increasingly fractured and workplace incivility is on the rise, attorneys must champion professionalism and lead by example, demonstrating how lawyers can respectfully disagree without being disagreeable, says Edward Casmere at Norton Rose.
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Reading Between The Lines Of Justices' Moore Ruling
The U.S. Supreme Court's recent Moore v. U.S. decision, that the Internal Revenue Code Section 965 did not violate the 16th Amendment, was narrowly tailored to minimally disrupt existing tax regimes, but the justices' various opinions leave the door open to future tax challenges and provide clues for what the battles may look like, say Caroline Ngo and Le Chen at McDermott.