Federal

Expert Analysis

• A Tough Road Ahead for Democrats' Ambitious Policy Agenda

  

  While Democrats in Congress are well on their way to enacting an initial COVID-19 relief bill, they will face challenges when pivoting to President Joe Biden's Build Back Better goals for job creation and economic revitalization, say Russell Sullivan and Radha Mohan at Brownstein Hyatt.

• Coca-Cola Tax Ruling Offers 5 Lessons For Multinationals

  

  The U.S. Tax Court's decision that Coca-Cola owes more than $3.3 billion in taxes is instructive on important transfer pricing concepts, including those regarding intercompany agreements, the arm's-length standard and tax certainty, says ​​​​​​​Justin Radziewicz at Duff & Phelps.

• Small Biz Should Self-Advocate For Tax Relief Under Biden

  

  Small and medium-sized businesses have significant potential for achieving regulatory relief from the U.S. Department of the Treasury and other federal agencies during the Biden administration, but to do so they must define their priorities, leverage two federal statutes that require the Treasury to protect them and make their voices heard through communal e-advocacy, says Monte Silver at Silver & Co.

• SD Ruling Threatens Marijuana Legalization Momentum

  

  A South Dakota state court decision in Thom v. Barnett, invalidating a state constitutional amendment legalizing recreational marijuana, serves as a reminder that legalization efforts at any level could meet some resistance, says David Standa at Locke Lord.

• Opportunity Zone Pandemic Relief Is Welcome, But Limited

  Excerpt from Practical Guidance

  

  The Internal Revenue Service's new notice relaxing deadlines and requirements for opportunity zone investors during the pandemic is helpful, but misses an opportunity to clarify important safe harbors, says Jessica Millett at Duval & Stachenfeld.

• Driving Forces Shaping The Life Settlements Market

  

  The life settlements market is evolving as a result of several recent legislative developments and cases concerning stranger-originated life insurance, and will likely see continued growth this year, say Brian Casey and Thomas Sherman at Locke Lord.

• Key Trade Secret Developments Of 2020: Part 2

  

  Last year, federal courts issued several important rulings on trade secret issues that will affect litigation practice, including the importance of narrow, well-supported sealing requests, whether refining trade secret identification after discovery is permissible, and when punitive damages comport with due process, say attorneys at Faegre Drinker.

• A Road Map For US Involvement In Europe's Cum-Ex Probe

  

  The dividend arbitrage trading strategy known as cum-ex continues to face regulatory scrutiny in Europe, and stateside regulators may soon follow suit with the U.S. Securities and Exchange Commission’s recent American depositary receipt probe as a guide for enforcement, says Joshua Ray at Rahman Ravelli.

• What Energy Sector Should Expect From Biden's Tax Policies

  

  The energy sector may find new investment opportunities or the need to adjust holdings, depending on whether company goals align with the Biden administration's potential rollback of Trump-era tax reforms, and push for clean energy, reduced carbon emissions and increased domestic manufacturing, says Gregory Matlock at Mayer Brown.

• Congress Should Make TCJA Income Definition Permanent

  

  Congress should not allow the Tax Cuts and Jobs Act's definition of adjusted taxable income, which includes depreciation and amortization, to expire in 2022 because it would discourage debt-free investment, running counter to the law's intent, says George Callas at Steptoe & Johnson.

• Raising Capital For Real Estate Deals During The Pandemic

  

  Real estate sponsors looking to invest in the current environment should consider the various advantages and risks of forming a commingled real estate investment fund versus raising capital on a deal-by-deal basis, says Matt Ertman at Allen Matkins.

• Bankruptcy Ruling Highlights Longer Lookback Trend

  

  The U.S. Bankruptcy Court's recent decision in Zagaroli underscores a trend among bankruptcy courts to allow longer lookback periods in certain types of fraudulent transfer cases, which could be a significant source of estate recovery for creditors, say attorneys at Lowenstein Sandler.

• OECD Delays Are Imperiling Digital Tax Deal

  

  As the Organization for Economic Cooperation and Development continues to push back its deadline for a digital tax overhaul, countries are beginning to pursue unilateral solutions and the negotiations are turning political, decreasing the likelihood of an agreement, says Joyce Beebe at Rice University.