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Tax

  • May 25, 2018

    NY Atty Convicted Of Obstructing Grand Jury To Aid Client

    A New York federal jury on Friday convicted an attorney on charges of altering records in an effort to impede the grand jury investigation into his former client, a longtime associate of a New York crime family who secretly controlled the activities of a construction firm awarded a One World Trade Center building contract.

  • May 25, 2018

    5 Tax Considerations When Marrying A Foreign Prince

    After tying the knot with Prince Harry, the Duchess of Sussex must remain aware of future tax liabilities, since as a U.S. citizen she is still required to share certain information about taxable income, foreign bank accounts and wedding gifts with the Internal Revenue Service to avoid potentially steep fines.

  • May 25, 2018

    Biz’s Co-Founder On Hook For $1.9M Tax Bill, 3rd Circ. Says

    The Third Circuit on Friday upheld a $1.9 million judgment against the co-founder of a woodwork fabrication company accused of underpaying three years’ worth of federal payroll taxes, ruling that he had enough control of the business to render him responsible for paying up.

  • May 25, 2018

    Manafort Trial Delayed 2 Weeks Over Family Medical Issue

    Former Trump campaign chairman Paul Manafort's trial on financial crimes has been delayed by roughly two weeks, as a Virginia federal judge cited an unspecified family medical issue on Friday.

  • May 25, 2018

    Texas Justices OK Separate Tax Appraisal Of Disposal Wells

    The Texas Supreme Court on Friday held that an appraisal district’s valuing of saltwater disposal wells separately from the land on which they are located is a valid appraisal method, rejecting the landowners’ arguments that such valuations double-taxed the wells.

  • May 25, 2018

    New Tax Cut Plan Coming This Summer, White House Says

    Another tax overhaul bill will be released by the end of the summer, a top official in President Donald Trump's administration told reporters Friday.

  • May 25, 2018

    Go Easy On The SALT Workarounds, Study Warns Treasury

    A nonpartisan report warned the U.S. Treasury Department that the charitable donation workaround plans targeting the $10,000 cap on state and local tax deductions would be hard to regulate effectively, concluding that Congress is the best vehicle for addressing the issue.

  • May 25, 2018

    IRS Taps McDermott Partner For LB&I Division Counsel

    The Internal Revenue Service said Friday it has chosen a McDermott Will & Emery LLP attorney to become the division counsel for the Large Business and International Division.

  • May 25, 2018

    Taxation With Representation: Davis Polk, Wachtell, Hogan

    In this week’s Taxation with Representation, Wabtec merged with General Electric’s transportation unit in an $11.1 billion deal, NextEra snapped up Southern Co.'s Florida utilities for $6.48 billion, MB Financial and Fifth Third merged in a $4.7 billion deal, and Adobe acquired Magento for $1.68 billion.

  • May 24, 2018

    Ill. Justices Say Court Couldn't Hear Estate Tax Challenge

    The Illinois Supreme Court ruled Thursday that a state circuit court lacked jurisdiction to hear a challenge to the state’s retroactive application of its estate tax, overturning an appellate court's finding that sovereign immunity did not bar the circuit court from hearing the case.

  • May 24, 2018

    SALT Cap Enforcement May Mean Years Of Tax Limbo

    The U.S. Treasury Department is positioning itself to challenge states’ attempts to help constituents bypass the new federal limit on tax deductions, and taxpayers can expect years of uncertainty if the two sides — each facing difficulties justifying their viewpoints — go to court.

  • May 24, 2018

    NJ Atty General Vows To Defend SALT Workaround In Court

    New Jersey’s attorney general told the Internal Revenue Service on Thursday the state would challenge any guidance that could damper legislative attempts to sidestep the new federal tax law’s $10,000 limit on state and local tax deductions.

  • May 24, 2018

    Germany Charges Lawyer, Bankers In Stock-Sale Tax Scam

    Prosecutors in Germany have indicted five investment bankers and a prominent tax lawyer on charges of obtaining €106 million ($124 million) in improper tax refunds on dividends from a series of stock trades a decade ago, according to official statements.

  • May 24, 2018

    FedEx Wants Most Of $681M Cigarette Smuggling Case Axed

    FedEx Ground Package System Inc. asked a New York federal judge for a quick win on more than half of the damages at issue in a $681 million cigarette-smuggling lawsuit brought by New York City and state authorities, with the delivery company’s filings asserting most of the government’s claims were legally invalid or too late.

  • May 24, 2018

    IRS' $11.6B Budget Approved By House Subcommittee

    The U.S. House Appropriations Subcommittee on Financial Services and General Government approved $11.6 billion in funding Thursday for the Internal Revenue Service.

  • May 24, 2018

    Exelon Takes $500M Tax Hit Over Coal Plant Sale To 7th Circ.

    Exelon Corp. asked the Seventh Circuit to reverse a U.S. Tax Court judgment hitting it with more than $500 million in tax deficiencies and penalties on Thursday, arguing the company’s efforts to defer income tax on the sale of its Illinois coal plants were aboveboard.

  • May 24, 2018

    Time Limits For Foreign Tax Credits Questioned By 2nd Circ.

    A Second Circuit panel asked during oral arguments Wednesday why the government would give taxpayers such as Trusted Media Brands Inc. a 10-year period to choose between using foreign tax payments as a credit or a deduction but only three years to claim the credits on their returns.

  • May 24, 2018

    NY Tells 2nd Circ. Native-Owned Tobacco Co. Flouted Tax Law

    The state of New York on Tuesday told the Second Circuit that a lower court correctly barred a Native American-owned tobacco maker's bulk sales of cigarettes within the state, saying the district court correctly found that the sale of cigarettes without tax stamps violates state tax law.

  • May 23, 2018

    Akin Gump Partner To Testify At Manafort Trial

    Attorneys for Special Counsel Robert Mueller confirmed Wednesday in D.C. district court that they intend to call Akin Gump Strauss Hauer & Feld LLP partner Melissa L. Laurenza to testify at the trial of former Trump campaign chairman Paul Manafort.

  • May 23, 2018

    Minnesota Ends Acrimonious Session With No Tax Bill

    Minnesota Gov. Mark Dayton on Wednesday rejected the Republican legislature’s last-ditch attempt to send him a tax and education-funding plan that would satisfy him, vetoing the plan, and effectively closing the door on a tax bill for the year.

Expert Analysis

  • Officials Must Note Financial Conflict Of Interest Law

    Adam Raviv

    The director of the U.S. Centers for Disease Control was forced to resign earlier this year after her investment manager purchased stock in tobacco and pharmaceutical companies on her behalf, creating a conflict of interest with her official role. The incident highlights how important it is for public officials to understand the conflict of interest statute and structure their investment arrangements accordingly, say attorneys with WilmerHale.

  • The 965 Tax: What Congress Giveth, Can IRS Taketh Away?

    Carlos Somoza

    A recently announced IRS position that surprised many tax practitioners is inconsistent with the plain language of Internal Revenue Code Section 965 and congressional intent — and creates problems for both individual and corporate taxpayers, says Carlos Santos of Kaufman Rossin PA.

  • Illinois’ Unique Lease Tax Leaves Lessors Liable

    David Machemer

    While most jurisdictions impose sales tax on lease receipts collected from the equipment lessee, Illinois differs by treating the lessor as the user of the equipment and consequently responsible for Illinois use tax. This presents some unique challenges for lessors, says David Machemer of Horwood Marcus & Berk Chtd.

  • Navigating The Challenges Of Estate And Gift Tax Reform

    Robert Cockren

    Last year's tax overhaul doubled estate, gift and generation-skipping tax exemptions, which will be adjusted for inflation yearly until the law sunsets in 2025. Planners should be aware of the unintended consequences for existing estate plans and prepare for some new opportunities and uncertainty on the horizon, say Robert Cockren and Brit Geiger of Dentons.

  • Should Sovereign Immunity Shield IRS In Section 544 Suits?

    Scott Grossman

    A bankruptcy judge for the Eastern District of Michigan ruled in April that sovereign immunity does not bar a fraudulent transfer suit against the IRS. In doing so, she noted a split between the Seventh and Ninth Circuits and elected to follow the Ninth. With the IRS continuing to raise this defense to Section 544 fraudulent transfer claims, it is possible the Supreme Court will be called upon, says Scott Grossman of Greenberg Traurig LLP.

  • Essential ERISA Considerations In Credit Agreements

    Excerpt from Lexis Practice Advisor
    Kim Steefel

    In this overview of the key considerations in credit agreements related to potential liabilities under the Employee Retirement Income Security Act, Lexis Practice Advisor expert attorney Kim Steefel discusses controlled group liability concerns as well as lender and borrower positions with respect to relevant ERISA clauses.

  • NY Unincorporated Biz Tax Proposal Overshoots Its Mark

    Leah Robinson

    The New York State Department of Taxation and Finance just released for comment a draft bill to enact a new unincorporated business tax. While that is a laudable goal, the proposal as currently drafted appears to generate substantially more revenue for the state than the benefit to individual partners would seem to justify, say attorneys at Mayer Brown LLP.

  • 2 New Turns In Charitable Tax Planning

    Lisa Petkun

    Two separate areas of charitable tax planning have seen significant changes this year. The Internal Revenue Service has issued interim guidance on the operation of donor-advised funds, and the Tax Cuts and Jobs Act has changed how exempt organizations compute income and loss. Lisa Petkun at Pepper Hamilton LLP looks at some of the most important developments.

  • Spotlight On EU's Bold New Digital Economy Tax Ideas

    Stefanie Hardy

    As the Organization for Economic Cooperation and Development attempts to craft a new digital services tax, two major concerns are the impact of the tax on U.S. companies operating within the European Union, which are estimated to make up approximately half the companies that would be hit by the tax, and the deterrence of high-tech investment in the EU, says Stefanie Hardy of Nauta Dutilh.

  • Introducing The Legal Industry To Millennial Business Owners

    Yaima Seigley

    ​The current business climate has produced vast opportunities for seasoned lawyers to create valuable connections with millennial business owners, but first lawyers must cleanse their palate of misconceptions regarding millennials, says Yaima Seigley of Isaac Wiles Burkholder & Teetor LLC.