Tax

  • October 6, 2017

    UK Litigation Roundup: Here's What You Missed In London

    The last week has seen Qatar's QNB Group sue Eritrea, a commercial property development lodge a claim against Clydesdale Bank, and a suit against independent administrator Carey Pensions over financial transactions. Here, Law360 looks at those and other new claims in the U.K.

  • October 5, 2017

    Tax Court Orders Transferee To Settle $6.9M Liability Row

    The U.S. Tax Court refused to allow a convicted tax evader to withdraw his own lawsuit challenging the IRS over $6.9 million in liabilities and ruled instead, in a published opinion released Thursday, that the taxpayer must reach an agre​ement with the IRS, despite his insistence that he has already done so.

  • October 5, 2017

    Schumer Pushes GOP To Keep State, Local Tax Deductions

    U.S. Senate Minority Leader Chuck Schumer, D-N.Y., called on Republicans Thursday to scrap efforts to repeal or change the state and local tax deduction as part of their tax reform plan, arguing the provision will kill the Republican tax plan among its rank-and-file members, raise taxes on millions of middle-class families, and result in more than $1 trillion in losses for taxpayers and communities.

  • October 5, 2017

    Rakoff Sets February Date For DMX Tax Fraud Trial

    U.S. District Judge Jed S. Rakoff on Friday agreed to a February 2018 date for the New York federal tax fraud trial of rapper DMX, but warned attorneys at both tables that the date, which is months later than the judge had planned, "will not move."

  • October 5, 2017

    House, Senate Lay Groundwork For GOP Tax Reform Bill

    Both chambers of Congress took their first steps toward a planned tax reform push Thursday, taking action that would give Congress the ability to send a tax bill to President Donald Trump without Democratic support.

  • October 5, 2017

    Dueling US, EU Tax Claims May Pose Challenge For Amazon

    Amazon in recent days has found itself defending against overlapping tax claims from the European Commission and the U.S. Internal Revenue Service, with no clear path to disputing them if the IRS prevails.

  • October 5, 2017

    No Bias In IRS Tax-Exempt Status Review, Says TIGTA

    The IRS subjected liberal, Tea Party and conservative groups to scrutiny when determining their tax-exempt status, according to an IRS watchdog report released Tuesday.

  • October 5, 2017

    IRS Can't Fight Facts In Transfer Pricing Suit, Medtronic Says

    Medtronic Inc. on Wednesday hit back against the IRS in a major transfer pricing case, telling the Eighth Circuit that the agency has no basis to argue against the facts underlying the U.S. Tax Court’s analysis of the medical device manufacturer’s intellectual property license with its Puerto Rican subsidiary.

  • October 5, 2017

    Citigroup Tax Lawyer Joins Latham & Watkins In New York

    Latham & Watkins LLP has lured a Wall Street tax lawyer from Citigroup who specializes in complex financial products and derivatives to join its tax department and financial institutions group, the law firm announced Wednesday.

  • October 5, 2017

    Clean Energy Investors Get Reprieve From FERC Review

    The Federal Energy Regulatory Commission said Wednesday that tax equity investors in public utilities don't have to first seek authorization from the agency under Section 203 of the Federal Power Act, removing an administrative hurdle for a primary funding source for renewable energy projects.

  • October 5, 2017

    CPAs Tell DC Circ. ‘No Dispute’ They Can Challenge IRS Rule

    The American Institute of Certified Public Accountants told a D.C. Circuit panel Thursday that “there can be no dispute” it has standing to challenge the IRS’ voluntary certification program for unlicensed tax return preparers, despite a lower court ruling finding it had no legally protected interest to assert.

  • October 5, 2017

    Bedding Sellers’ Use Tax Fight Sent To Calif. State Court

    A California federal judge on Wednesday sent a case between two bedding and mattress sellers back to state court, granting the California Department of Tax and Fee Administration’s motion to remand for lack of subject matter jurisdiction.

  • October 5, 2017

    No 'Fairness' Exception To Tax Law, Pa. Appeals Court Says

    A company that negotiates shipping rates with freight carriers can’t get business tax deductions based on customer payments it passes through to the carriers, a Pennsylvania appellate court ruled Thursday, finding that a trial court shouldn’t have made an exception to local law based on “fairness.” 

  • October 5, 2017

    Battle Lines Drawn Over Fight To Kill SALT Deduction

    Amid all the rate cuts, bracket tweaks and sweeping corporate reforms laid out in the Republican tax framework, one tax increase looks set to be the most divisive measure. Advocates and opponents of a plan to eliminate the state and local tax deduction are gearing up for a fight that has been brewing for 30 years.

  • October 4, 2017

    Gaps In Trump-GOP Tax Plan Hint At Loss Of Current Benefits

    The Trump-GOP tax plan is silent on key policy goals that have recently dominated tax reform discussions. The failure to touch upon these measures suggests that lawmakers are mulling limiting or eliminating them. Here are four policy measures that could resurface in a tax reform bill expected before the end of October.

  • October 4, 2017

    1st Circ. Weighs Congressional Intent In IRA Payments Row

    A pair of brothers accused of exceeding contribution limits on their retirement accounts told the First Circuit on Wednesday that the transactions were perfectly legal, pressing the panel to question whether the IRS can recharacterize account transfers that the agency argues flout congressional intent. 

  • October 4, 2017

    Inventor Tells 9th Circ. IP Royalties Were Capital Gains

    A Nevada inventor urged a Ninth Circuit panel on Wednesday to toss out a U.S. Tax Court decision that found nearly $7 million in patent royalties couldn’t be treated as capital gains, saying that he didn’t have meaningful control of companies in charge of the patents despite close ties to directors.

  • October 4, 2017

    Puerto Rico Board Withdraws Bid To Force Furloughs

    In light of the devastation caused by Hurricane Maria, the federally appointed board overseeing Puerto Rico's historic debt restructuring on Wednesday voluntarily dismissed a lawsuit it filed against the island's governor over his refusal to implement a $218 million public employee furlough program.

  • October 4, 2017

    Failure To Collect On €13B Apple Case Lands Ireland In Court

    The European Commission took Ireland to court on Wednesday for failing to collect €13 billion ($15.3 billion) in back taxes from Apple more than a year after the antitrust enforcer concluded the iPhone maker had illegally benefited from special treatment.

  • October 4, 2017

    Pa. Gov. Again Calls To Tax Shale Gas To End Budget Standoff

    Pennsylvania Gov. Tom Wolf reiterated calls for a severance tax on natural gas to resolve a three-month-old budget impasse Wednesday, as House Democrats failed in an effort to bring the measure to the floor of the Republican-controlled chamber.

Expert Analysis

  • Calif. High Court Tax Decision Could Be A Pyrrhic Victory

    Bryan Wenter

    The California Supreme Court's decision in California Cannabis Coalition v. City of Upland may make local efforts to raise taxes much easier. However, the court itself inadvertently recognized the potential temporary nature of this victory, acknowledging that voters have the power to restrict the electorate's initiative power, says Bryan Wenter of Miller Starr Regalia.

  • Congressional Forecast: September

    Richard Hertling

    With apologies to T.S. Eliot, September is looking to be the cruelest month. This work period will be a critical test for the president and Republican majority in Congress, as members return to face a daunting workload of time-sensitive legislation and only three weeks to get it all done, say Richard Hertling and Kaitlyn McClure of Covington & Burling LLP.

  • New Flexibility Comes To REIT Earnings Distribution

    Sarah Beth Rizzo

    New IRS guidance will allow real estate investment trusts and regulated investment companies that would like to issue 80/20 stock/cash dividends to avoid the filing fee, drafting expense and approximately six-month delay associated with obtaining a private letter ruling, say Sarah Beth Rizzo and David Polster of Skadden Arps Slate Meagher & Flom LLP.

  • The Psychology Of Hourly Fee Arrangements

    J.B. Heaton

    The range of possible and better fee agreements is wide. But such alternatives will become popular only if litigants confront the psychological tendencies shaping their existing fee arrangements, says J.B. Heaton, a partner at Bartlit Beck Herman Palenchar & Scott LLP.

  • Market-Based Sourcing: A Common (Sense) Approach

    Maria Eberle

    The California Franchise Tax Board recently ruled that receipts from non-marketing services should be sourced to California to the extent that a taxpayer’s direct customers — and not its customers’ customers — receive the benefit of the service in California. This market-based sourcing approach brings California in line with other states, say Maria Eberle and Laura Grace Mezher of Baker McKenzie LLP.

  • DOJ Offshore Bank Resolution Offers Cooperation Road Map

    Matthew Lee

    The U.S. Department of Justice's nonprosecution agreement with Swiss asset management firm Prime Partners is a signal to other foreign financial institutions that the voluntary disclosure “window” remains open, says Matthew Lee of Fox Rothschild LLP.

  • 2 Del. Decisions Bring Practice Points For MLP Planners

    Thomas Mullen

    Two recent decisions by the Delaware courts — Brinckerhoff v. Enbridge Energy and Morris v. Spectra Energy — underscore the importance for a master limited partnership sponsor to avail itself fully of the latitude provided by the Delaware Revised Uniform Limited Partnership Act to privately order the affairs of the MLP, say attorneys with Potter Anderson & Corroon LLP.

  • 3 Legal Takeaways From Proposed Estate Tax Changes

    Patrick Carlson

    Republicans made several tax proposals immediately before and after President Donald Trump took office in January, several of which would completely eliminate the estate tax. That means potential sea change on the horizon for estate planning professionals and tax attorneys, says Patrick Carlson of WealthCounsel LLC.

  • Self-Collection In E-Discovery — Risks Vs. Rewards

    Alex Khoury

    As judges become better educated about the complexities of collecting electronically stored information, in particular the inefficacy of keyword searching, they are increasingly skeptical of self-collection. And yet, for many good reasons (and a few bad ones), custodian self-collection is still prevalent in cases of all sizes and in all jurisdictions, says Alex Khoury of Balch & Bingham LLP.

  • 6 Common Lateral Partner Myths Debunked

    Dan Hatch

    It’s safe to say that while demand ebbs and flows for legal services, there will never be a shortage of opinions about lateral partner hiring, which is positive for the industry, as anything with such vital importance to careers should attract significant attention. However, there is a unique mythology that travels with the discussions, says Dan Hatch of Major Lindsey & Africa.