Federal

  • May 17, 2021

    States Seek Injunction Over State Tax Cut Limit In Virus Law

    A provision of the recent coronavirus aid package that prohibits states from using federal funds for state tax cuts is unconstitutional, said several state attorneys general who are seeking a preliminary injunction in their dispute with the U.S. Treasury.

  • May 17, 2021

    Firm Asks Justices To Block IRS Summons For Tax Client List

    The Fifth Circuit incorrectly allowed the IRS to proceed with a summons seeking the identities of a law firm's clients who received its tax planning advice, the firm told the U.S. Supreme Court, asking it to review the decision. 

  • May 17, 2021

    Tax Court Declines To Certify Easement Question For Ala. Court

    The U.S. Tax Court said Monday it would not certify to the Alabama Supreme Court whether a conservation easement donor would be entitled to sale proceeds if the easement ceased to exist, saying the question was settled under state law.

  • May 17, 2021

    Ex-Pa. Pol Substantially Influenced Charity, Tax Court Says

    A former Pennsylvania state senator convicted of fraud had leverage over a tax-exempt charity and may be subject to excess benefit taxes, the U.S. Tax Court said Monday, granting the Internal Revenue Service a partial win in the case.

  • May 17, 2021

    Cairn Hits Up Air India For Arbitration Award In Tax Case

    Britain's Cairn Energy PLC opened a new front in its tax dispute against India by demanding that a U.S. federal court force Air India to pay a $1.26 billion arbitration award the petroleum company won in December.

  • May 17, 2021

    Md. Couple Not Entitled To Biz Deductions, Tax Court Says

    A Maryland couple are on the hook for over $13,000 in deficiencies and penalties because they couldn't prove they were entitled to business deductions they'd claimed, the U.S. Tax Court said Monday.

  • May 17, 2021

    Applicable Tax Rates Stay Steady Or Fall For June, IRS Says

    Most applicable federal rates will stay the same or decrease slightly in June, according to figures published by the Internal Revenue Service on Monday.

  • May 17, 2021

    Justices Won't Review Vt. Tax On Gains Against Telecom Co.

    The U.S. Supreme Court on Monday refused to review a Vermont Department of Taxes decision imposing taxes on $23.9 million in capital gains from New York telecommunications license sales.

  • May 17, 2021

    US Seeks $18.4M FBAR Penalty From Texaco Heiress' Estate

    The estate of a Texaco heiress owes roughly $18.4 million in penalties for her intentional failure to timely report her overseas bank accounts to the Internal Revenue Service, the U.S. told a Florida federal court.

  • May 17, 2021

    JCT Report Lays Out Ways To Pay For Infrastructure

    The Joint Committee on Taxation released a report Monday that described current methods of funding infrastructure, including trust-fund excise taxes, and methods by which funding could be collected in the future, including rehabilitation tax credits for refurbishment of historic structures.

  • May 17, 2021

    Bill Seeks To Raise 2021 Child Credit Cap For Household Heads

    A bill introduced into the U.S. House of Representatives would raise the income cap for heads of households to qualify for the temporarily increased child tax credit to match the cap for married parents.

  • May 17, 2021

    Justices Revive Challenge To IRS Microcaptive Reporting Rule

    The U.S. Supreme Court Monday revived an advisory firm's challenge to IRS guidance requiring microcaptive insurance transactions to be disclosed on pain of penalties, saying it was not barred by the Anti-Injunction Act.

  • May 17, 2021

    4 Firms Rep $43B AT&T, Discovery Reverse Morris Trust Deal

    The entertainment, sports and news assets of AT&T's WarnerMedia will be combined with Discovery Inc. in a $43 billion blockbuster deal that is structured as a reverse Morris trust and was built by four law firms, the companies said Monday.

  • May 17, 2021

    Monthly Child Tax Credit Payments Start In July, Biden Says

    Nearly 39 million American households will begin receiving monthly payments beginning in mid-July of an expanded tax credit for working families with children included in the March coronavirus pandemic relief law, President Joe Biden announced Monday.

  • May 14, 2021

    Brexit Fear Won't Yield US Treaty Benefits, IRS Lawyer Says

    A shakeup such as Brexit is unlikely to prod the Internal Revenue Service to expend its discretionary relief-granting power on a company seeking derivative benefits from its home country's tax treaty with the U.S., an IRS lawyer said Friday.

  • May 14, 2021

    Florida Man Gets 2 Years For Failing To File FBARs

    A resident of Palm Beach County, Florida, was sentenced to 24 months in prison Friday for not reporting his foreign financial accounts from 2006 through 2015 and for willfully evading the assessment of millions in taxes from 2007 through 2014.

  • May 14, 2021

    IRS Begins Refunding Unemployment Comp Taxes

    The Internal Revenue Service announced Friday that it is beginning a multiphase process of paying back taxes paid on unemployment compensation for the 2020 tax year.

  • May 14, 2021

    OECD Global Tax Overhaul Faces Logistical Hurdles, Panelists Say

    Despite years of fine-tuning, the Organization for Economic Cooperation and Development's proposals to overhaul the global tax system still raise serious concerns about administrability, panelists said Friday at a virtual conference.

  • May 14, 2021

    IRS Extends Filing Deadline For Tenn. Disaster Victims

    The Internal Revenue Service announced Friday that it will push back filing and payment deadlines for taxpayers living in Tennessee counties hard hit by natural disasters.

  • May 14, 2021

    Democrats See End To Carried Interest Tax Break In Sight

    A drive by congressional Democrats to secure one of their longtime priorities, repealing the tax break on carried interest, has made headway on Capitol Hill as lawmakers develop legislation to advance parts of President Joe Biden's recovery plan.

  • May 14, 2021

    Swiss Insurance Group Will Pay $77M For Aiding Tax Evasion

    A Swiss insurance company and three affiliates will pay the U.S. government about $77.3 million for conspiring to help U.S. taxpayers hide $1.45 billion from the Internal Revenue Service, the U.S. Department of Justice said Friday.

  • May 14, 2021

    Mass. Condo Developer Cops To Hiding $1.2M From IRS

    A Boston-area real estate developer admitted in Massachusetts federal court Thursday to bilking the government out of $482,000 by failing to list more than $1.2 million in personal construction payments from condominium residents on his tax returns.

  • May 14, 2021

    Court Upholds Co.'s IRS Fine For Undisclosed Benefit Trust

    A Michigan federal court upheld over $26,400 in penalties the Internal Revenue Service imposed on a Michigan construction company, saying the agency's guidance requiring the reporting of potentially abusive benefit trust arrangements under pain of penalty didn't violate administrative law.

  • May 14, 2021

    Treasury's Policy Guidebook Won't Address Pass-Through Break

    The U.S. Treasury Department's book of budget policy recommendations expected to be released soon likely won't take a position on the 20% pass-through deduction created by the 2017 federal tax overhaul, a department official said Friday.

  • May 14, 2021

    Husch Blackwell Adds 3 Ex-K&L Gates Attys As Partners

    Husch Blackwell LLP has added three partners previously with K&L Gates LLP who specialize in areas such as construction, financial services and taxes, the firm has announced.

Featured Stories

  • Democrats See End To Carried Interest Tax Break In Sight

    Alan K. Ota

    A drive by congressional Democrats to secure one of their longtime priorities, repealing the tax break on carried interest, has made headway on Capitol Hill as lawmakers develop legislation to advance parts of President Joe Biden's recovery plan.

  • Congress' Inaction Keeps Poor From Getting Stimulus Money

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    The government sent out an additional 1.1 million stimulus payments last week, but some low-income taxpayers won't receive them because of Congress' failure to keep the money from going to private debt collectors instead. 

  • Dem Plan For Capital Gains Tax Hike Has Many Moving Parts

    Alan K. Ota

    Congressional Democrats examining tweaks to President Joe Biden's plan to raise capital gains tax rates face a delicate balancing act on where to set the rates and what income will qualify for preferential treatment as they court ambivalent lawmakers.

Expert Analysis

  • Let's End The Offshoring Of US Patents

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    Congress should work toward removing the loophole that allows companies to avoid U.S. taxes by moving their patents offshore, and ensure profits are taxed where the sales take place, says Sen. Patrick Leahy, D-Vt.

  • How Biden's First 100 Days Will Affect Gov't Contractors

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    Joseph Berger and Thomas Mason at Thompson Hine examine the significant opportunities for government contractors arising from actions during the first 100 days of the Biden administration, which set the stage for unprecedented investment in national infrastructure, domestic manufacturing, research and development, clean energy, pandemic response and economic recovery.

  • Addressing New COBRA Duties Under Virus Relief Law

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    Following the issuance of fully subsidized COBRA premiums for certain workers under the recently passed American Rescue Plan Act, employers should take steps to determine who is eligible, ensure additional notice requirements are satisfied, and train human resources on communicating with qualified individuals, say Randi May and Dustin Grant at Hoguet Newman.

  • Long Road Ahead For Biden's Individual Tax Hike Proposal

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    Dustin Stamper at Grant Thornton provides insight into President Joe Biden's recently proposed individual tax increases to pay for his American Families Plan, and explains how competing interests among congressional Democrats and Republicans may shape the final provisions and prolong their implementation.

  • What Value-Added Tax Might Look Like In The US

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    Christiaan Van Der Valk and Charles Maniace at Sovos consider the value-added tax, a primary source of revenue for many countries, and what it might mean for the U.S. were it implemented to raise funds for large-scale federal initiatives such as President Joe Biden's infrastructure plan.

  • New Markets Credit Will Aid Recovery In Low-Income Areas

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    The recently extended New Markets Tax Credit is a critical tool for economic development in low-income communities, which have been hit especially hard by the pandemic, so public finance attorneys should consider its benefits when advising clients on projects, says Julia Fendler at Butler Snow.

  • The International Outlook For US Border Carbon Adjustments

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    The Biden administration may see enacting a border carbon adjustment system as a good way to advance climate goals and protect domestic industries and jobs, but any such plan must take into account the need to respect existing international trade agreements, say attorneys at Akin Gump.

  • The Domestic Landscape For US Border Carbon Adjustments

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    With the Biden administration possibly eyeing border carbon adjustments on imported goods as a means to mitigate climate change, attorneys at Akin Gump discuss such policies' potential benefits to domestic businesses, and the political and technical challenges to their enactment in the U.S.

  • Prepare For Global Collaboration In Crypto Tax Enforcement

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    Recent Internal Revenue Service victories involving John Doe summonses served on cryptocurrency exchanges — and statements by the Joint Chiefs of Global Tax Enforcement about global collaboration in cryptocurrency-related tax investigations — should prompt assessment of prior virtual currency transactions and remediation before an enforcement agency shows up at the door, say attorneys at McDermott.

  • 10 Things to Know About US Competent Authority Assistance

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    Taxpayers should consider seeking U.S. competent authority assistance to help eliminate double taxation from a transfer pricing adjustment, especially now that the competent authorities are resolving cases virtually and more quickly, say attorneys at Thompson & Knight.

  • Lessons From Tax Court's Nixing Of Investor's Energy Credits

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    The U.S. Tax Court's recent ruling in Olsen v. Commissioner, the first of 200 cases involving individual taxpayers who invested in a tax shelter involving solar equipment, is a case study in how not to structure an energy tax credit investment, says David Burton at Norton Rose.

  • Partial Repeal Could Resolve Biden's SALT Cap Dilemma

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    Lawmakers' calls to repeal the cap on federal deductions for state and local taxes are controversial because doing so could cost over $600 billion, but a partial repeal could be accomplished on a revenue-neutral basis, providing relief to some, if not most, affected taxpayers, says Joseph Mandarino at Smith Gambrell.

  • Alcohol Taxation Provides Good Model For Cannabis Taxes

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    Although the alcohol taxation system isn't perfect, it could serve as a useful template for cannabis taxation with a three-tier licensing scheme and tax rates based on potency, says Louis Terminello at Greenspoon Marder.