Federal
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September 27, 2024
Weekly Internal Revenue Bulletin
The Internal Revenue Service's weekly bulletin, issued Friday, included a U.S. Treasury Department decision to drop a rule that would have set a zero value for the property of an estate that is not declared on the estate's tax return or is discovered after the return is filed.
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September 26, 2024
Tax Court Rejects Gasoline Deductions For Stove Store Owner
The owner of a New York stove and fireplace store had about $1 million in receipts for 2014 and isn't entitled to deduct gasoline and depreciation expenses, the U.S. Tax Court said Thursday, sustaining most of a determination made by the Internal Revenue Service.
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September 26, 2024
Montreal Exchange Is A Qualified Exchange, IRS Says
The Montreal Exchange is a qualified board or exchange for purposes of mark-to-market contracts under Internal Revenue Code Section 1256(g)(7)(C), the Internal Revenue Service said Thursday.
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September 26, 2024
IRS Rolls Out Process to Fix Worker Credit Claims
The Internal Revenue Service has started a supplemental claim filing process to allow third-party payers who handle tax and payroll reporting for clients to fix incorrect unprocessed claims for the employee retention credit, the agency said Thursday.
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September 26, 2024
Collection Agents Need Representation Guidance, TIGTA Says
The Internal Revenue Service needs to provide guidance for private collection agency employees for cases in which taxpayers request a representative, such as an attorney, while on a call, the Treasury Inspector General for Tax Administration said Thursday.
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September 26, 2024
IRS Hiring Up, But Process Often Takes Too Long, TIGTA Says
While the Internal Revenue Service increased its hiring by 41% between fiscal years 2022 and 2023, it took longer than the agency's 80-day target to hire over 35% of the nearly 53,000 new employees due to numerous problems, the Treasury Inspector General for Tax Administration said Thursday.
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September 26, 2024
Tariff Tax Base Too Small To Replace Income Tax, Report Says
Higher tariffs can't replace income tax revenue, as former President Donald Trump has suggested, since U.S. imports total $3 trillion annually while incomes top $20 trillion, but they would lower incomes by raising prices for U.S. consumers, a think tank reported Thursday.
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September 26, 2024
Oil Estate Must Boost Value By $6M, Tax Court Says
The estate of a woman who inherited an oil company must include in its value over $6 million more to account for her relationship with a limited partnership formed by her great-nephew, the U.S. Tax Court ruled Thursday.
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September 26, 2024
Harris' And Trump's Tax Plans Each Add To Deficit, Study Says
The U.S. federal deficit would grow by at least $2 trillion over the next decade from the tax policy plans of both major parties' candidates, former President Donald Trump and Vice President Kamala Harris, researchers said Thursday.
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September 26, 2024
Texas Energy Co. Is Owed $8.1M Research Credit, Court Told
An energy company that said it developed a method for recycling water produced by fracking is owed $8.1 million in tax credits for research related to developing new oil production methods in the U.S. and Canada, the company told a Texas federal district court.
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September 26, 2024
Senate Confirms Two More Tax Court Judges
The U.S. Senate approved two more of President Joe Biden's nominees to serve on the U.S. Tax Court, marking the fourth and fifth judges the chamber has confirmed to the court in the past two months.
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September 25, 2024
Remote Sales Tax Compliance Burdens Small Biz, Senate Told
The 2018 Wayfair decision has burdened small businesses with significant compliance costs to collect and remit taxes in thousands of jurisdictions across the U.S., state tax experts told a U.S. Senate subcommittee Wednesday.
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September 25, 2024
Accountant Used Fake Tax Docs For Mortgage, Feds Say
A managing director at consulting firm Alvarez & Marsal was charged in D.C. federal court with failing to file his personal tax returns for over a decade and falsifying tax documents as part of a mortgage application.
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September 25, 2024
Harris Proposes Tax Credits For Domestic Manufacturing
Vice President Kamala Harris, the Democratic nominee for president, announced a proposal Wednesday that would offer tax credits to boost investment and job creation in manufacturing, energy and agriculture.
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September 25, 2024
2 Senate Dems Ask IRS For Faster Worker Credit Payments
The Internal Revenue Service should speed up payments of employee retention credit claims and prioritize paying low-risk credits to taxpayers that are struggling financially, two Democratic senators told the agency's commissioner.
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September 25, 2024
IRS Must Improve Seizure Procedure Compliance, TIGTA Says
While a review of over 70 cases in which Internal Revenue Service field officers conducted seizures found the employees largely adhered to standard procedures, three cases where they did not highlight areas where the agency could improve its compliance, the Treasury Inspector General for Tax Administration said Wednesday.
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September 25, 2024
Julie Chrisley Gets No Slack In Resentencing From Ga. Judge
Julie Chrisley, the former real estate mogul and reality TV star who was convicted of running a yearslong bank fraud scheme with her husband, Todd, was resentenced Wednesday by a Georgia federal judge to the same seven-year prison term she first received nearly two years ago.
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September 25, 2024
Expect More R&D Guidance Before Regs, IRS Atty Says
The Internal Revenue Service plans to release more guidance governing the tax treatment of research and development expenses before it formally issues proposed regulations that implement the 2017 federal tax law's changes to the incentive, an agency attorney said Wednesday.
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September 25, 2024
House Bill Proposes Tax Incentive For Efficient Vehicles
Buyers of new vehicles with higher-than-average energy performance would be entitled to a tax credit of up to $5,000 under a bill introduced in the U.S. House of Representatives.
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September 25, 2024
Direct File Needs Security, Testing Improvements, TIGTA Says
While the deployment of the Internal Revenue Service's pilot of its free online Direct File program was largely successful, the agency must address some security lapses and testing deficiencies, the Treasury Inspector General for Tax Administration said Wednesday.
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September 25, 2024
Basis-Shifting Regs May Add Accounting Fixes, IRS Atty Says
The Internal Revenue Service may include in upcoming proposed regulations a solution for partnership basis-shifting for taxpayers that want to adjust accounting methods so prior transactions can be compliant with economic substance laws, an agency attorney said Wednesday.
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September 25, 2024
Wyden Calls On 2025 Tax Bill To Include Partnership Reform
Lawmakers should consider next year how to revise partnership tax laws to better collect on large businesses' income without harming smaller entities as Congress debates over how to address expiring tax provisions, Senate Finance Committee Chairman Ron Wyden said Wednesday.
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September 25, 2024
House Bill Proposes Housing Incentive For Disabled Veterans
A bill introduced in the U.S. House of Representatives would exclude veteran disability benefits from the income calculation for the low-income housing tax credit.
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September 25, 2024
Chicago School Contractor Loses Energy Efficiency Tax Break
The owner of a Chicago-based electrical contracting company isn't entitled to an over $459,000 tax refund for upgrading Chicago Public Schools buildings with energy-efficient lighting because his company didn't design the systems, only installed them, an Illinois federal judge ruled.
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September 25, 2024
Puerto Rico Seeking Input On Implementing Global Min. Tax
Puerto Rico's Department of the Treasury is looking for public comments regarding possible implementation of the Organization for Economic Cooperation and Development's 15% global corporate minimum tax on large multinational entities.
Expert Analysis
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The Pop Culture Docket: Judge Djerassi On Super Bowl 52
Philadelphia Court of Common Pleas Judge Ramy Djerassi discusses how Super Bowl 52, in which the Philadelphia Eagles prevailed over the New England Patriots, provides an apt metaphor for alternative dispute resolution processes in commercial business cases.
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Parsing Treasury's Proposed Clean Hydrogen Tax Credit Rules
Regulations recently proposed by the IRS and the U.S. Department of the Treasury concerning two types of tax credits for clean hydrogen production facilities should resolve many of the most pressing questions around qualification for the credits — albeit in a relatively stringent manner, say attorneys at Morgan Lewis.
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Employee Experience Strategy Can Boost Law Firm Success
Amid continuing business uncertainty, law firms should consider adopting a holistic employee experience strategy — prioritizing consistency, targeting signature moments and leveraging measurement tools — to maximize productivity and profitability, says Haley Revel at Calibrate Consulting.
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6 Practice Pointers For Pro Bono Immigration Practice
An attorney taking on their first pro bono immigration matter may find the law and procedures beguiling, but understanding key deadlines, the significance of individual immigration judges' rules and specialized aspects of the practice can help avoid common missteps, says Steven Malm at Haynes Boone.
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Lessons From Country Singer's Personal Service Saga
Recent reports that country singer Luke Combs won a judgment against a Florida woman who didn’t receive notice of the counterfeit suit against her should serve as a reminder for attorneys on best practices for effectuating service by electronic means, say attorneys at Jenner & Block.
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7 E-Discovery Predictions For 2024 And Beyond
The legal and technical issues of e-discovery now affect virtually every lawsuit, and in the year to come, practitioners can expect practices and policies to evolve in a number of ways, from the expanded use of relevancy redactions to mandated information security provisions in protective orders, say attorneys at Littler.
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5 Litigation Funding Trends To Note In 2024
Over the next year and beyond, litigation funding will continue to evolve in ways that affect attorneys and the larger litigation landscape, from the growth of a secondary market for funded claims, to rising interest rates restricting the availability of capital, says Jeffery Lula at GLS Capital.
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Tech CEO Tax Ruling A Warning For Forward Contracts
In McKelvey v. Commissioner, the U.S. Tax Court decided that deceased Monster.com founder Andrew McKelvey terminated his underlying obligations when he extended variable prepaid forward contracts, demonstrating why startup founders, early employees and investors should think carefully before amending derivative agreements, say Daren Shaver and Trent Tanzi at Hanson Bridgett.
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4 Legal Ethics Considerations For The New Year
As attorneys and clients reset for a new year, now is a good time to take a step back and review some core ethical issues that attorneys should keep front of mind in 2024, including approaching generative artificial intelligence with caution and care, and avoiding pitfalls in outside counsel guidelines, say attorneys at HWG.
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What The Law Firm Of The Future Will Look Like
As the legal landscape shifts, it’s become increasingly clear that the BigLaw business model must adapt in four key ways to remain viable, from fostering workplace flexibility to embracing technology, say Kevin Henderson and Eric Pacifici at SMB Law Group.
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4 PR Pointers When Your Case Is In The News
Media coverage of new lawsuits exploded last year, demonstrating why defense attorneys should devise a public relations plan that complements their legal strategy, incorporating several objectives to balance ethical obligations and advocacy, say Nathan Burchfiel at Pinkston and Ryan June at Castañeda + Heidelman.
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Unpacking The Proposed Production Tax Credit Regulations
Recently proposed tax regulations for claiming the U.S. clean-energy manufacturers' production credit under Internal Revenue Code Section 45X are less stringent than many had feared but fail to define a fundamental eligibility requirement, say Casey August and Jared Sanders at Morgan Lewis.
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10 Considerations For Litigating A New York Tax Case
While some of New York’s recently adopted corporate tax regulations are likely to face legal challenges, aggrieved taxpayers should answer certain questions before deciding to embark on the tax litigation process, say Cyavash Ahmadi and Jeffrey Friedman at Eversheds Sutherland.