Federal
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November 20, 2024
Feds Again Seek Early Win In $11.6M Willful FBAR Dispute
The U.S. government intends to renew its request to resolve a narrow matter in a dispute with an international businessman facing an $11.6 million penalty for willful failure to report his foreign bank accounts before the case heads to trial, according to a filing in Hawaii federal court.
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November 20, 2024
11th Circ. Skeptical Couple Can Skip Tax On Stolen Funds
Eleventh Circuit judges seemed unconvinced by a couple's request to overturn a decision that they owed taxes on $1.2 million in savings that their daughter swindled from them, saying during oral arguments Wednesday that their situation, however sympathetic, does not appear to warrant tax relief.
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November 20, 2024
IRS Should Tout Funding Boost Benefits, Advisory Panel Says
The Internal Revenue Service needs to appeal to taxpayers by communicating the benefits of the funding boost the agency received under the 2022 tax and climate law, the IRS Advisory Council said in a report released Wednesday.
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November 19, 2024
Former GOP Tax Chair Urges TCJA Permanence In 2025
Making permanent the provisions of the 2017 tax overhaul that are set to expire at the end of 2025 would provide certainty for businesses and individuals and encourage investment and expansion, former House Ways and Means Committee Chairman Kevin Brady said Tuesday.
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November 19, 2024
12 House Dems Call For Flexible Hydrogen Tax Credit Rules
Twelve Democratic U.S. House members asked the U.S. Department of the Treasury on Tuesday to provide more lax requirements for the clean hydrogen production tax credit than what the agency has proposed.
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November 19, 2024
Group Of Local Gov'ts Asks For Clarity On Energy Credits
A coalition of local government agencies called on the U.S. Treasury Department and the IRS in a letter released Tuesday to clarify that tax-exempt entities undertaking projects that qualify for certain energy credits are able to choose elective payments for certain costs.
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November 19, 2024
'Survivor' Winner Needs To Pay $3.3M Tax Bill, Judge Advises
The winner of the "Survivor" television series who evaded taxes on his $1 million in prize money and served time in prison should pay $3.3 million of his civil liabilities, including fraud penalties, a federal magistrate judge said.
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November 19, 2024
Payments To Ex-Wife Clearly Tax-Deductible, 11th Circ. Told
A Georgia man claiming payments he must make to his ex-wife as part of a marital settlement are alimony and therefore tax-deductible reaffirmed his argument to the Eleventh Circuit, saying the court can clearly answer two questions in his favor.
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November 19, 2024
Liberty Global Tax Break Based On Void Moves, 10th Circ. Told
The economic substance doctrine is broad and can invalidate telecommunications company Liberty Global's transaction that led to a $2.4 billion deduction because steps taken to maximize the tax break lacked business purpose, a government attorney told the Tenth Circuit on Tuesday.
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November 19, 2024
IRS Can Extend Deadline Over Preparer's Fraud, 3rd Circ. Told
The Third Circuit should affirm a U.S. Tax Court ruling allowing the Internal Revenue Service to skirt the normal deadlines and assess taxes going back to 1993 against a couple who were unaware that their tax preparer had falsified their returns to lower their liabilities, the government said.
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November 19, 2024
Treasury Finalizes Partnership Tax Credit 'Direct Pay' Regs
The U.S. Treasury Department finalized regulations Tuesday to make it easier for tax-exempt entities that co-own development projects to qualify for a direct cash payment of clean energy tax credits by electing out of their partnership tax status.
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November 18, 2024
Tax Court Won't Reverse On Foreign Reporting Penalties
The U.S. Tax Court affirmed Monday its position that the IRS lacks authority to assess certain foreign information reporting penalties, denying the agency's request to reverse a ruling that let a Missouri businessowner off the hook for $120,000.
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November 18, 2024
Nursing Home Owner Pleads Guilty A 2nd Time To Tax Fraud
A nursing home operator pled guilty for the second time in Newark federal court on Monday to a $38.9 million employment tax fraud scheme involving care centers he owned across the country.
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November 18, 2024
Countries Eye Certain Tax Credits To Get Leg Up Under Pillar 2
The international minimum tax agreement known as Pillar Two is changing how countries compete for corporate investment, in part by prompting some governments to retool their tax credit systems in ways that could edge out jurisdictions with fewer resources.
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November 18, 2024
IRS Must Speed Up Adoption Of AI Governance, TIGTA Says
The Internal Revenue Service has nearly 70 artificial intelligence tools in use or in development, but the agency needs speed up its development of governance procedures to make sure AI is being used safely and securely, the Treasury Inspector General for Tax Administration said Monday.
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November 18, 2024
IRS Sinks Arizona's Challenge To Federal Tax On Rebates
A federal judge dismissed Arizona's challenge to the Internal Revenue Service's position that rebates the state paid to taxpayers with dependents in 2023 were subject to federal tax, saying the state lacked standing to bring the case.
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November 18, 2024
Stradley Ronon Adds Tax Pro From Perkins Coie In Chicago
Pennsylvania-based firm Stradley Ronon Stevens & Young LLP has added a tax partner to its Chicago office who spent more than two decades with Perkins Coie LLP, the firm announced Monday.
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November 18, 2024
6th Circ. Pauses IRS Summons For Eaton Worker Docs
The Sixth Circuit said Eaton Corp. doesn't have to comply with an IRS demand to produce performance reviews for its foreign employees until the appellate court decides whether to overturn a decision that the agency's transfer pricing investigation of the multinational power management company outweighed worker privacy concerns.
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November 18, 2024
Tobacco Co. Asks Justices To Review Ore. Out-Of-State Tax
Actions in Oregon by the wholesale customers of an out-of-state tobacco company do not invalidate the protections in federal law against state taxation, the company told the U.S. Supreme Court, seeking review of an Oregon Supreme Court decision.
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November 18, 2024
Loan Provider Owed $34M In Retention Credits, Court Told
A mortgage loan company based in New York asked a federal court to award it more than $34 million in pandemic-era employee retention tax credits, saying the Internal Revenue Service has failed to respond to three separate claims for the credits.
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November 18, 2024
Intuit's GC-Turned-People Chief Sees Comp Reach $15.8M
An executive who helps oversee financial software company Intuit's workforce and formerly served as its general counsel earned roughly $15.8 million in compensation for fiscal year 2024, most of that from stock awards, a public filing says.
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November 18, 2024
Allen Matkins Adds Stradley Ronon Tax Co-Chair In NY
Allen Matkins Leck Gamble Mallory & Natsis LLP has continued growing its New York office with the addition of the co-chair of Stradley Ronon Stevens & Young LLP's tax department, the firm said Monday.
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November 18, 2024
11th Circ. Shelves Peanut Truck Co.'s Excise Tax Refund
The Eleventh Circuit has overturned a decision awarding an excise tax refund to a manufacturer for selling wagons that dry and carry peanuts, saying the refund is reserved for vehicles that are specially designed for off-highway transportation — a test the peanut wagons failed.
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November 18, 2024
Tax Interest Rates To Drop In First Quarter Of 2025
The Internal Revenue Service's interest rates for overpayments and underpayments of tax will drop in the first quarter of 2025, the agency said Monday.
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November 15, 2024
The Tax Angle: TCJA Debate, S Corp. Compliance
From a look at congressional lawmakers ramping up their debate over the expiration of the GOP's 2017 tax overhaul law to the IRS' plans to provide more oversight for pass-through businesses and S corporations, here's a peek into a reporter's notebook on a few of the week's developing tax stories.
Expert Analysis
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State Of The States' AI Legal Ethics Landscape
Over the past year, several state bar associations, as well as the American Bar Association, have released guidance on the ethical use of artificial intelligence in legal practice, all of which share overarching themes and some nuanced differences, say Eric Pacifici and Kevin Henderson at SMB Law Group.
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8 Childhood Lessons That Can Help You Be A Better Attorney
A new school year is underway, marking a fitting time for attorneys to reflect on some fundamental life lessons from early childhood that offer a framework for problems that no legal textbook can solve, say Chris Gismondi and Chris Campbell at DLA Piper.
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How The 2025 Tax Policy Debate Will Affect The Energy Sector
Regardless of the outcome of the upcoming U.S. election, 2025 will bring a major tax policy debate that could affect the energy sector more than any other part of the economy — so stakeholders who could be affected should be engaging now to make sure they understand the stakes, say attorneys at Mayer Brown.
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This Election, We Need To Talk About Court Process
In recent decades, the U.S. Supreme Court has markedly transformed judicial processes — from summary judgment standards to notice pleadings — which has, in turn, affected individuals’ substantive rights, and we need to consider how the upcoming presidential election may continue this pattern, says Reuben Guttman at Guttman Buschner.
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Mental Health First Aid: A Brief Primer For Attorneys
Amid a growing body of research finding that attorneys face higher rates of mental illness than the general population, firms should consider setting up mental health first aid training programs to help lawyers assess mental health challenges in their colleagues and intervene with compassion, say psychologists Shawn Healy and Tracey Meyers.
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The Trade And Tax Issues Behind US-Canada Digital Tax Clash
The new Canadian digital services tax recently went into effect despite objections from the U.S., a controversy that represents an unusual mix of trade and tax policy, and many companies have been pondering how it will affect their e-commerce businesses, says Damon Pike at BDO.
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Litigation Inspiration: Honoring Your Learned Profession
About 30,000 people who took the bar exam in July will learn they passed this fall, marking a fitting time for all attorneys to remember that they are members in a specialty club of learned professionals — and the more they can keep this in mind, the more benefits they will see, says Bennett Rawicki at Hilgers Graben.
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AI May Limit Key Learning Opportunities For Young Attorneys
The thing that’s so powerful about artificial intelligence is also what’s most scary about it — its ability to detect patterns may curtail young attorneys’ chance to practice the lower-level work of managing cases, preventing them from ever honing the pattern recognition skills that undergird creative lawyering, says Sarah Murray at Trialcraft.
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A Look At How De Minimis Import Rules May Soon Change
The planned implementation of executive actions focused on the de minimis rule as it applies to shipments means companies should use this interval to evaluate the potential applicability and impact of Section 301, Section 201 or Section 232 duties on their products, say attorneys at Holland & Knight.
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Ruling On Foreign Dividend Break Offers 2 Tax Court Insights
In Varian v. Commissioner, the U.S. Tax Court allowed a taxpayer's deduction for dividends from foreign subsidiaries, providing clarity on how the U.S. Supreme Court’s Loper Bright decision may affect challenges to Treasury regulations, and revealing a potential disallowance of foreign tax credits, say attorneys at Davis Polk.
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Why Now Is The Time For Law Firms To Hire Lateral Partners
Partner and associate mobility data from the second quarter of this year suggest that there's never been a better time in recent years for law firms to hire lateral candidates, particularly experienced partners — though this necessitates an understanding of potential red flags, say Julie Henson and Greg Hamman at Decipher Investigative Intelligence.
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Considering Possible PR Risks Of Certain Legal Tactics
Disney and American Airlines recently abandoned certain litigation tactics in two lawsuits after fierce public backlash, illustrating why corporate counsel should consider the reputational implications of any legal strategy and partner with their communications teams to preempt public relations concerns, says Chris Gidez at G7 Reputation Advisory.
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It's No Longer Enough For Firms To Be Trusted Advisers
Amid fierce competition for business, the transactional “trusted adviser” paradigm from which most firms operate is no longer sufficient — they should instead aim to become trusted partners with their most valuable clients, says Stuart Maister at Strategic Narrative.