Federal
-
January 19, 2024
New Treasury Reporting Rules May Be A Shock To Many Cos.
Although a new rule requiring millions of companies to disclose their beneficial owners to the U.S. Department of the Treasury is now in effect, many may not know they're on the hook for reporting obligations that attorneys say could come with steep consequences for noncompliance.
-
January 19, 2024
Treasury Mulls Final Foreign Tax Regs For Pillar 2 Proposal
The U.S. Treasury Department is actively evaluating issues raised with the 2022 final rules for foreign tax credits to incorporate a forthcoming proposal under an international minimum corporate tax agreement known as Pillar Two, an official said Friday.
-
January 19, 2024
1099-K's Rules Burden Low-Income Taxpayers, Prof Warns
Low-income taxpayers may find it difficult to comply with Internal Revenue Service rules that instruct peer-to-peer payment platforms to issue Forms 1099-K when users exceed $5,000 in transactions, a tax professor said.
-
January 19, 2024
House Panel Advances Tax Deal With R&D, Child Credits
The House Ways and Means Committee overwhelmingly approved a tax deal Friday that would extend the full tax break for research and development costs and expand the child tax credit for multiple years, though Democrats expressed concerns about the package favoring businesses over child tax credits.
-
January 19, 2024
US Gov't Appealing FBAR Residency Ruling To 9th Circ.
The federal government is asking the Ninth Circuit to review a California federal court decision finding that a Mexican national with a U.S. green card doesn't owe penalties for failing to report his foreign bank accounts.
-
January 19, 2024
Treasury Intent On Finalizing Foreign Currency Rules In 2024
The U.S. Treasury Department is aiming this year to finalize the framework of foreign currency rules that would simplify the way corporations assess taxable income or loss of affiliates that conduct business in a foreign currency, an official said Friday.
-
January 19, 2024
Secure 2.0 Spurs Feds To Seek Input On Retirement Reporting
Federal agencies overseeing reporting and disclosure requirements for employee retirement plans announced Friday that they're seeking public comment on how they might be more effective or streamlined as part of Secure 2.0, an improvement effort Congress requested in a policy overhaul passed in late 2022.
-
January 19, 2024
Taxation With Representation: Gibson Dunn, Kirkland, Milbank
In this week's Taxation With Representation, Compass Diversified acquires The Honey Pot Co., General Atlantic buys Actis, Restaurant Brands International purchases Carrols Restaurant Group, and Synopsys merges with Ansys.
-
January 19, 2024
IRS Issues Census Tract Guidelines For Fuel Credit
The Internal Revenue Service issued guidance Friday on the eligible census tracts for the qualified alternative fuel vehicle refueling property credit.
-
January 18, 2024
Ex-Police Union Head Gets 3 Years For Retirement Fund Fraud
The former president of a New York City law enforcement union has been sentenced to 40 months in prison and the union's former financial adviser to 18 months for defrauding union members out of $500,000.
-
January 18, 2024
DOL Unveils Automatic Portability Reg Tied To Secure 2.0
The U.S. Department of Labor proposed a rule Thursday on automatic portability transactions affecting 401(k) plans that would allow service providers to earn compensation in connection with retirement plan rollovers set up for workers changing jobs, which Congress authorized in 2022 in the Secure 2.0 Act.
-
January 18, 2024
Experts Laud Affordable Housing Credits In Tax Proposal
Changes to the nation's largest affordable housing subsidy, which are tucked into a bipartisan tax package scheduled for markup Friday by a U.S. House committee, could add more than 200,000 affordable rental units in two years.
-
January 18, 2024
Tax Break Legislation Would Cost $77.5B, JCT Says
The family and business tax breaks, affordable housing provisions and disaster relief proposals included in the tax bill that the House Ways and Means Committee is scheduled to consider Friday would cost about $77.5 billion, the Joint Committee on Taxation said in a report released Thursday.
-
January 18, 2024
Broad Reading Of Law Lets IRS Collect Penalty, DC Circ. Told
A businessman's $400,000 penalty for failing to report his foreign enterprises should be reinstated after the U.S. Tax Court wrongly determined that the Internal Revenue Service could not collect the penalty, the U.S. told the D.C. Circuit.
-
January 18, 2024
Some Tax-Exempt Orgs Unable To E-File Due To IRS Updates
A handful of tax-exempt organizations will not be able to file certain forms electronically until mid-March because of system upgrades, the Internal Revenue Service said Thursday.
-
January 18, 2024
Over 1K Projects Registered In Energy Credit Portal, IRS Says
More than 1,000 projects have been registered at an online registration portal that helps facilitate the use of two new monetization methods for energy tax credits created by the Inflation Reduction Act, the IRS and the U.S. Department of the Treasury said Thursday.
-
January 18, 2024
House Bill Seeks To Repeal Estate Tax
A bill introduced Thursday in the U.S. House of Representatives would repeal the federal estate tax.
-
January 18, 2024
Weekly Internal Revenue Bulletin
The Internal Revenue Service released its weekly bulletin Thursday, which included the updated list of qualified census tracts.
-
January 18, 2024
IRS Contractor Says 'Moral Belief' Led Him To Leak Tax Info
The IRS contractor who stole the tax returns of thousands of wealthy people, including former President Donald Trump, and leaked them to the media told a D.C. federal court he should serve perhaps less than a year in prison because he acted "out of a deep, moral belief."
-
January 18, 2024
IRS Finalizes Present Value Requirements For Certain Benefits
The Internal Revenue Service issued final regulations Thursday dictating the minimum present value requirements for distributions from certain benefit plans.
-
January 17, 2024
'Chaos' Warning Resonates As Justices Mull Chevron's Fate
A conservative-led campaign against the 40-year-old doctrine of judicial deference to federal regulators appeared vulnerable at U.S. Supreme Court arguments Wednesday to predictions of a litigation tsunami, as justices fretted about an onslaught of suits and politicization of the federal judiciary.
-
January 17, 2024
Thomas Gets Laugh, Agrees Prior Ruling Is 'Embarrassment'
The specter of a major 2005 telecommunications ruling hung over U.S. Supreme Court Justice Clarence Thomas on Wednesday as he and his colleagues considered whether to toss the court's decades-old precedent instructing judges to defer to federal agencies' interpretations of ambiguous statutes.
-
January 17, 2024
5 Key Takeaways From Supreme Court's Chevron Arguments
U.S. Supreme Court justices questioned Wednesday whether overturning a decades-old precedent instructing courts to defer to federal agencies' interpretations of ambiguous statutes would lead judges to legislate from the bench or diminish the value of Supreme Court precedent — and pondered whether they could "Kisorize" the doctrine rather than doing away with it altogether.
-
January 17, 2024
Nursing Home Owner Cops To $38M Payroll Tax Scheme
A nursing home operator pled guilty in federal court to a $38.9 million employment tax fraud scheme involving nursing homes he owned across the country, the U.S. attorney for the District of New Jersey said Wednesday.
-
January 17, 2024
Wis. Senator Signals Interest In Reaching Bipartisan Tax Deal
Sen. Ron Johnson expressed willingness Wednesday to work on a bipartisan tax agreement with Democratic lawmakers, alluding to the upcoming expiration of provisions under the 2017 federal tax overhaul.
Expert Analysis
-
Justices Must Apply Law Evenly In Shadow Docket Rulings
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
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
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
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
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
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
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
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
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
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
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
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
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.