Federal

  • October 10, 2024

    IRS Announces 9 Tax Court Sessions Added To Calendar

    The Internal Revenue Service announced nine U.S. Tax Court sessions in February and March and named calendar administrators for the sessions.

  • October 10, 2024

    Estimated Tax Gap For 2022 Falls To $696B, IRS Says

    The projected federal gross tax gap between taxes owed and taxes paid for the 2022 tax year was $696 billion, a $12 billion decrease from 2021, according to a report published Thursday by the Internal Revenue Service.

  • October 10, 2024

    Partnership Challenges Denial Of $42M Easement Deduction

    The Internal Revenue Service failed to justify rejecting a Florida partnership's charitable contribution deduction for donating a $42 million conservation easement to a land conservancy, the partnership told the U.S. Tax Court.

  • October 10, 2024

    IRS Says It's Stepping Up Worker Credit Claims Processing

    The Internal Revenue Service said Thursday it's accelerating processing of claims for pandemic-era worker credits after a moratorium triggered by what the agency has said was widespread fraud.

  • October 10, 2024

    Dems Weigh Extending 2017 Cuts To Maintain $400K Tax Vow

    Despite criticizing the 2017 Republican tax overhaul as a deficit-busting boon to the wealthy, congressional Democrats may feel pressure to support extending some of the law's individual and small-business provisions or risk breaking their pledge not to raise taxes on those earning $400,000 or less.

  • October 10, 2024

    Pfizer Lone Holdout In Senate Pharma Tax Probe, Wyden Says

    Pfizer Inc. is the only company to withhold a country-by-country breakdown of its tax planning in the Senate Finance Committee's probe into how Republicans' 2017 tax package reduced the pharmaceutical industry's U.S. liabilities, according to a letter Chairman Ron Wyden released Thursday.

  • October 10, 2024

    Calif. Says FDIC Must Wait For $21M Tax Refund

    A California tax agency urged a New York federal court to toss a lawsuit by the FDIC seeking a $20.7 million tax refund on behalf of the shuttered Signature Bank, saying it's entitled to wait for a possible IRS audit before delivering the payment.

  • October 10, 2024

    IRS Keeping Co. In Dark On Carryback Refund, Court Told

    The Internal Revenue Service owes a $686,000 tax refund to a contractor for a carryback operating loss, the company told a Texas federal court, adding that the IRS hasn't responded to questions about a letter the agency claims it sent addressing the issue.

  • October 09, 2024

    Tax Court Rejects Levy On Convicted Atty Over $7B Scheme

    A U.S. Tax Court judge rejected an IRS levy for restitution owed by an ex-attorney serving time for orchestrating a $7 billion tax fraud scheme, saying the agency had made contradictory determinations about the alleged debt and wrongly involved the former attorney's wife, in an opinion released Wednesday.

  • October 09, 2024

    Army Reservist, Wife Lose Appeal Of Tax Debt And Penalty

    The Internal Revenue Service correctly determined a U.S. Army reservist and his wife were deficient on their taxes and liable for an accuracy-related penalty, the U.S. Tax Court said Wednesday, finding they failed to report income and didn't back up claimed deductions.

  • October 09, 2024

    OECD Should Clarify Pillar 2 Safe Harbor Timing, CPAs Say

    The OECD should clarify when exactly multinational corporations need to determine whether they qualify for a transitional safe harbor under an international minimum tax agreement, the American Institute of Certified Public Accountants recommended in a letter.

  • October 09, 2024

    3M Tax Ruling Must Fall Post-Chevron, Chamber Tells 8th Circ.

    The U.S. Supreme Court's ending of the Chevron doctrine calls for overturning a U.S. Tax Court ruling that let the IRS allocate $24 million of income to multinational conglomerate 3M from a Brazilian affiliate, the U.S. Chamber of Commerce told the Eighth Circuit on Wednesday.

  • October 09, 2024

    Election Uncertainty Hampers Companies' Tax Planning

    With the November election approaching, businesses are bracing for the potential impact of two very different sets of tax policies, with the resulting uncertainty making long-term tax planning increasingly difficult.

  • October 09, 2024

    Masonry Cos. Demand $2.3M In Worker Credit Refunds

    The IRS brushed aside the requirements of a pandemic relief law by stalling on issuing $2.3 million in worker tax credits to two branches of a historic masonry company, the businesses told an Illinois federal court in a suit seeking refunds.

  • October 09, 2024

    Feds Seek 16 Months For Ex-BigLaw Partner's Tax Dodging

    Prosecutors told a Wisconsin federal judge that a former Husch Blackwell LLP and Dykema Gossett PLLC partner who pled guilty to tax evasion should be sentenced to 16 months in prison, saying he lied to IRS revenue officers to keep them at bay while spending lavishly on private planes, jewelry and golf club memberships.

  • October 09, 2024

    Final Treasury Rules Shut Off Inclusion For Repatriated IP

    The U.S. Treasury Department adopted final rules Wednesday that shut off an annual income inclusion associated with intangibles for companies in certain situations that have transferred intellectual property back to the U.S. from overseas.

  • October 08, 2024

    IRS Appeals Office's Easement Deals May Sap Independence

    The IRS Independent Office of Appeals plans to settle certain conservation easement cases with similar terms offered by other IRS divisions, but these upcoming offers might be challenging for taxpayers to navigate and could undermine the office's independence from the rest of the agency.

  • October 08, 2024

    Homeowners Again Seek Class Cert. In Tax Foreclosure Suit

    A group of former property owners has asked a Michigan federal judge to recertify a class action seeking to recover profits county treasurers made selling their tax-delinquent properties, saying the addition of class representatives fixes the flaw that dismantled the class. 

  • October 08, 2024

    Tax Court Cuts $16.7M Deduction For Conservation Donation

    A partnership that claimed a $16.7 million tax deduction for donating a conservation easement covering land in Georgia was trying to "fleece the public" with its claims that the land could be used for clay mining, a U.S. Tax Court judge said Tuesday in a decision slashing the deduction.

  • October 08, 2024

    IRS Seeks Feedback On Digital Asset Reporting Form

    The Internal Revenue Service is seeking comments by Nov. 6 on a draft of a 2025 form for digital asset transaction reporting, according to a notice.

  • October 08, 2024

    Tire Seller Counts As Importer, Owes $2M Tax, 5th Circ. Says

    A Houston truck sales company owes nearly $2 million in excise taxes because it qualifies as the importer of tires that it bought from a Chinese manufacturer, the Fifth Circuit ruled Tuesday in overturning the decision of a Texas federal judge.

  • October 08, 2024

    Tax Court Denies Ariz. Woman Spousal Relief

    The U.S. Tax Court denied an Arizona woman's request for relief from liability for a faulty return filed by her husband, saying on Tuesday that she failed to show she was a victim of abuse and incapable of challenging the filing.

  • October 08, 2024

    Loss Rule Carveouts Raise Challenges In Pillar 2, Official Says

    An IRS official flagged administrability concerns Tuesday with potential safe harbors that would, in some cases, carve out an international minimum tax agreement from interacting with long-standing domestic rules aimed at preventing companies from using the same economic loss twice.

  • October 08, 2024

    Calif. Tax Preparer Gets 6 Years For $28M Scheme

    The owner of a California tax preparation business who helped customers create sham companies was sentenced to six years in prison for a decadelong scheme that caused a tax loss of at least $28 million, according to the U.S. Department of Justice.

  • October 08, 2024

    Settlement Payments Not Deductible Alimony, 11th Circ. Told

    A divorced man who was ordered by a judge to make $3 million in payments on a past-due settlement to his ex-wife should not be allowed to shield them from tax, the U.S. government told the Eleventh Circuit, saying the payments don't qualify as alimony.

Expert Analysis

  • Trump's Best Hush Money Appeal Options Still Likely To Fail

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    The two strongest potential arguments former President Donald Trump could raise in appealing his New York hush money conviction seem promising at first, but precedent strongly suggests they will still ultimately fail — though, of course, Trump's unique position could lead to surprising results, says former New York Supreme Court Justice Ethan Greenberg, now at Anderson Kill.

  • Tips For Tax Equity-Tax Credit Transfers That Pass IRS Muster

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    Although the Internal Revenue Service has increased its scrutiny of complex partnership structures, which must demonstrate their economic substance and business purpose, recent cases and IRS guidance together provide a reliable road map for creating legitimate tax equity structures, say Ian Boccaccio and Michael Messina at Ryan Tax.

  • Mirror, Mirror On The Wall, Is My Counterclaim Bound To Fall?

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    A Pennsylvania federal court’s recent dismissal of the defendants’ counterclaims in Morgan v. Noss should remind attorneys to avoid the temptation to repackage a claim’s facts and law into a mirror-image counterclaim, as this approach will often result in a waste of time and resources, says Matthew Selmasska at Kaufman Dolowich.

  • 3 Leadership Practices For A More Supportive Firm Culture

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    Traditional leadership styles frequently amplify the inherent pressures of legal work, but a few simple, time-neutral strategies can strengthen the skills and confidence of employees and foster a more collaborative culture, while supporting individual growth and contribution to organizational goals, says Benjamin Grimes at BKG Leadership.

  • E-Discovery Quarterly: Rulings On Hyperlinked Documents

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    Recent rulings show that counsel should engage in early discussions with clients regarding the potential of hyperlinked documents in electronically stored information, which will allow for more deliberate negotiation of any agreements regarding the scope of discovery, say attorneys at Sidley.

  • Loper Bright Limits Federal Agencies' Ability To Alter Course

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    The U.S. Supreme Court's recent decision to dismantle Chevron deference also effectively overrules its 2005 decision in National Cable & Telecommunications Association v. Brand X, greatly diminishing agencies' ability to change regulatory course from one administration to the next, says Steven Gordon at Holland & Knight.

  • A Guide To Long-Term, Part-Time Employee Determinations

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    With final regulations under the Secure Act requiring 401(k) retirement benefits for long-term, part-time employees expected soon, Amy Sheridan and David Guadagnoli at Sullivan & Worcester look at how the proposed rules would shift the risk-reward calculus on excluding categories of employees, and what plan sponsors would need to consider when designing retirement plans.

  • After Chevron: Delegation Of Authority And Tax Regulators

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    The U.S. Department of the Treasury and the Internal Revenue Service will face higher standards following Loper Bright’s finding that courts should determine whether agency rules meet the best possible interpretation of the tax code, as well as the scope of the authority delegated by Congress, says Edward Froelich at McDermott.

  • Lawyers Can Take Action To Honor The Voting Rights Act

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    As the Voting Rights Act reaches its 59th anniversary Tuesday, it must urgently be reinforced against recent efforts to dismantle voter protections, and lawyers can pitch in immediately by volunteering and taking on pro bono work to directly help safeguard the right to vote, says Anna Chu at We The Action.

  • How To Grow Marketing, Biz Dev Teams In A Tight Market

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    Faced with fierce competition and rising operating costs, firms are feeling the pressure to build a well-oiled marketing and business development team that supports strategic priorities, but they’ll need to be flexible and creative given a tight talent market, says Ben Curle at Ambition.

  • Rock Climbing Makes Me A Better Lawyer

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    Rock climbing requires problem-solving, focus, risk management and resilience, skills that are also invaluable assets in my role as a finance lawyer, says Mei Zhang at Haynes and Boone.

  • Contract Disputes Recap: Preserving Payment Rights

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    Stephanie Magnell and Zachary Jacobson at Seyfarth examine three recent decisions that together illustrate the importance of keeping accurate records and adhering to contractual procedures to avoid inadvertently waiving contractual rights to cost reimbursements or nonroutine payments.

  • Think Like A Lawyer: Dance The Legal Standard Two-Step

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    From rookie brief writers to Chief Justice John Roberts, lawyers should master the legal standard two-step — framing the governing standard at the outset, and clarifying why they meet that standard — which has benefits for both the drafter and reader, says Luke Andrews at Poole Huffman.

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