Federal
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January 27, 2023
Pot Co. Loses Bid To Void IRS Summonses At 10th Circ.
A Colorado marijuana dispensary lost its appeal to quash Internal Revenue Service summonses seeking financial records from a state regulator under a 10th Circuit decision Friday that disregarded Justice Clarence Thomas' criticism of federal regulation of cannabis.
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January 27, 2023
IRS Changes Real Estate Alternative Cost Method Rules
Some real estate developers can use an abridged form when applying to use the alternative cost method when determining the basis of improved units for 2023 and onward, the Internal Revenue Service said in updated rules released Friday.
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January 27, 2023
IRS Says Loss Or Deduction Wouldn't Trigger Foreign Use
A loss or deduction based on timing difference liabilities alone would not be considered a dual consolidated loss with a foreign use, the Internal Revenue Service said in a private letter ruling released Friday.
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January 27, 2023
GOP States Sue DOL Over Socially Conscious Investing Rule
A coalition of 25 Republican state attorneys general sued the U.S. Department of Labor seeking to kill a recently finalized rule governing how retirement plan managers can consider such things as climate change and social justice when making investment decisions, arguing the agency exceeded its authority.
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January 27, 2023
IRS Says Drug Co. Must Capitalize Voucher Costs
A pharmaceutical company that buys a voucher for expedited drug application review from another company must capitalize the costs to do so, the Internal Revenue Service's Office of Chief Counsel said in a memorandum released Friday.
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January 27, 2023
Taxation With Representation: Gibson Dunn, Davis Polk
In this week's Taxation With Representation, Xylem Inc. agreed to buy Evoqua, Matador Resources Co. agreed to acquire Advance Energy Partners, Jungheinrich is acquiring Storage Solutions, and Emerson Electric Co. said it's "pleased to see engagement" in its bid to purchase National Instruments.
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January 27, 2023
JCT Outlines Dynamic Scoring Revenue Estimate For Tax Bills
The Joint Committee on Taxation will use dynamic scoring to estimate revenues for bills with gross budget effects of more than $66 billion during the current Congress, according to a report on the committee's revenue estimating process released Friday.
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January 27, 2023
Tax Court Is Right To Drop Whistleblower Case, IRS Says
The U.S. Tax Court correctly dismissed a whistleblower's challenge to an Internal Revenue Service rejection of his award application, the agency told the D.C. Circuit, arguing the Tax Court lacks authority to weigh in on agency decisions to pursue whistleblower tips.
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January 27, 2023
IRS Seeks Comments On Late Real Estate Election Rules
The Internal Revenue Service asked for comments on rules allowing late elections regarding real estate interests.
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January 27, 2023
No Weekly Internal Revenue Bulletin Articles For Jan. 30
The Internal Revenue Service released its weekly bulletin, which said there were no articles to be published for Jan. 30.
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January 26, 2023
Nixon Peabody Gets OK For Deal With DC Solar Investors
A California state court judge has approved a settlement between Nixon Peabody LLP and DC Solar investors who claimed the firm saw warning signs that the now-defunct solar power supplier was running a billion-dollar Ponzi scheme that promised payments based on sublease revenue from mobile solar generators.
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January 26, 2023
IRS Mulls Expedited Private Rulings For No-Income Spinoffs
The Internal Revenue Service is considering fast-tracking requests for private letter rulings on spinoff transactions that do not include the collection of income, an agency counsel said Thursday.
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January 26, 2023
Fla. Rep. Named Vice Chairman Of House Tax Panel
A Florida congressman was named vice chairman of the House Ways and Means Committee on Thursday, making him the second most powerful Republican on the tax-writing committee.
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January 26, 2023
8th Circ. Affirms Kick Of DirecTV Fee Fight To State Court
The Eighth Circuit on Thursday upheld a lower court decision to send a suit from municipalities alleging DirecTV and Dish Network owe video fees back to state court a second time.
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January 26, 2023
Feds Want Full Sentence For Ex-CEO In $600K Tax Evasion
Federal prosecutors argued against a reduced sentence for a former tech CEO who pled guilty to tax evasion and causing a $600,000 tax loss, saying a Florida federal court should fulfill society's expectation that corporate leaders be punished for abusing their responsibilities.
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January 26, 2023
Next OECD Min. Tax Doc. To Address GILTI, US Official Says
The upcoming administrative guidance on the Organization for Economic Cooperation and Development's global minimum tax will include specific language for how companies should treat the U.S. tax on global intangible low-taxed income, a U.S. Treasury Department official said Thursday.
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January 26, 2023
IRS Names Calendar Administrators For 47 Tax Court Sessions
The Internal Revenue Service named calendar administrators for 47 U.S. Tax Court sessions from March to June, according to a notice released Thursday.
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January 26, 2023
US Expatriations Rose In 4th Quarter, IRS Says
The number of people expatriated from the U.S. partially rebounded during the fourth quarter of 2022 compared with the previous quarter, the Internal Revenue Service said in a notice released Thursday.
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January 26, 2023
US House Bill Would Repeal Methane Emissions Tax
The federal tax on methane emissions would be eliminated under a bill introduced in the U.S. House of Representatives.
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January 25, 2023
Jury Finds Ohio Defense Atty Guilty In $1.3M Tax Refund Scam
An Ohio criminal defense attorney was found guilty Wednesday of helping two men fleece the Internal Revenue Service out of $1.3 million, marking a delayed victory for federal prosecutors after they failed to secure a unanimous verdict against him during an initial trial last year.
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January 25, 2023
Manchin Bill Calls For Pause Of EV Tax Credit
U.S. Sen. Joe Manchin announced a bill Wednesday pushing the U.S. Department of the Treasury to ensure compliance with certain supply chain requirements before implementing new consumer electric vehicle tax credits, as intended by the Inflation Reduction Act of 2022.
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January 25, 2023
Tax Court Shrinks Ill. Co.'s $1M Green Building Deduction
An Illinois engineering company that claimed a $1 million deduction for installing an energy-efficient HVAC system at a veteran's hospital can only deduct $300,000, the U.S. Tax Court ruled Wednesday, saying most of the project occurred outside the claim's tax year.
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January 25, 2023
Official Defends Policy Behind Foreign Tax Credit Rules
Proposed foreign tax credit regulations drew a line to prevent the U.S. from deferring to foreign characterizations of transactions, a U.S. Department of the Treasury official said Wednesday, citing the guidance's underlying interest in denying credits for digital services taxes.
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January 25, 2023
6th Circ. Judge 'Baffled' By 'Casual' Mich. Mistrial Decision
A Sixth Circuit judge on Wednesday said he was stumped by a district court judge's decision to declare a mistrial after his wife and a material witness tested positive for COVID-19, seeming to side with a business owner accused of payroll tax evasion who said there were ways to continue the trial safely.
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January 25, 2023
New AMT Rules Will Be Tough To Dodge, Hill Aide Says
The Treasury Department's forthcoming rules carrying out the new 15% corporate alternative minimum tax will not allow companies to pursue aggressive tax planning to escape taxation easily, a senior Senate Democratic tax staff member said Wednesday.
Expert Analysis
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NY Right To Investigate Trump Consulting Fees For Tax Fraud
New York authorities correctly put aside political considerations and took the appropriate first step in any tax fraud investigation by seeking bank and corporate records to investigate potential connections between Trump Organization write-offs and income mirrored by Ivanka Trump's consulting company, says Daren Firestone at Levy Firestone.
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Carbon Capture Policy Should Be Aligned For Global Adoption
With support from both Republicans and Democrats, carbon capture, utilization and storage technology as a tool for decarbonization may be poised for domestic growth — but the U.S. and the European Union must coordinate their policies to promote a global approach, say Hunter Johnston and Jeff Weiss at Steptoe & Johnson.
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How Federal, State Plans Could Bring Carbon Capture To US
Proposals from President-elect Joe Biden, a pair of bills currently pending in Congress and a low-carbon fuels program in California provide insights into how carbon capture, utilization and storage technology could be integrated into the fight against climate change in the U.S., say Hunter Johnston and Jeff Weiss at Steptoe.
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EU Climate Goals Are Hard To Reach Without Carbon Capture
The European Union's failure to fully embrace blue fuels, produced using carbon capture, utilization and storage technologies, may hinder the region's pursuit of its aggressive decarbonization goals, say Hunter Johnston and Jeff Weiss at Steptoe & Johnson.
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Carbon Capture Tech Offers A Fast Path Toward Climate Goals
To meet ambitious climate goals, the U.S., EU and other developed nations must immediately start reducing carbon emissions from fossil fuels, which policymakers can encourage by supporting carbon capture, utilization and storage technologies, say Hunter Johnston and Jeff Weiss at Steptoe.
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Legal Defense Fund Donations Should Get Gift Tax Treatment
Contributions to legal defense funds, which may be used to finance litigation related to the governmental transition, should be treated as gifts instead of income for tax purposes to avoid protracted, politically weaponized litigation, and remain consistent with a government-ethics approach, says Robert Rizzi at Steptoe & Johnson.
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Advancing The Democratic Tax Agenda In 2021
Even with a divided government starting next year, Democrats will have a major effect on tax policy, pursuing legislative compromises and regulatory changes in service of President-elect Joe Biden's tax plan, and potentially reversing many Trump administration initiatives, say Russell Sullivan and Radha Mohan at Brownstein Hyatt.
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M&A Poised For Growth In The Biden Era
The M&A market is well positioned for recovery and growth under a Biden administration and divided Congress, which will likely gain control over the coronavirus pandemic, pass a stimulus package, and provide greater transparency in antitrust enforcement, say attorneys at Debevoise.
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Final BEAT Regs Still Contain Pitfalls For Taxpayers
Recently finalized U.S. Department of the Treasury regulations retain a taxpayer-friendly election allowing corporations to waive deductions to avoid the base erosion and anti-abuse tax, but neglect to include recourse for companies that waive more deductions than necessary, say attorneys at Ropes & Gray.
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Biden Independent Contractor Plan Sends Confusing Message
President-elect Joe Biden’s inconsistent campaign plan for independent contractors supports enforcement of existing laws against intentional worker misclassification while also proposing a challenging-to-meet federal classification standard modeled after California’s A.B. 5, says Richard Reibstein at Locke Lord.
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The Different Ways High Court Could Assess ACA Viability
The U.S. Supreme Court's eventual decision in California v. Texas could strike down the entire Affordable Care Act, though there are a number of scenarios that may leave the law — or at least its popular provisions — largely intact, say attorneys at Morgan Lewis.
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10th Circ. IRS Summons Ruling Shows Cannabis Biz Dilemma
The recent Tenth Circuit decision in Speidell v. U.S., allowing the IRS to summon records from Colorado marijuana regulators in an audit proceeding, illustrates the tension state-legal marijuana business owners face when information requested in a civil proceeding is about conduct potentially criminal under federal law, says Jennifer Benda at Hall Estill.
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Where Renewable Energy Is Headed After Election Day
In the past four years, the renewable energy industry has seen considerable growth, despite new obstacles put in place by the Trump administration — and no matter who wins this presidential election, the industry can make a strong case for its ability to create jobs, boost environmental equality and help solve the climate crisis, say attorneys at McDermott.