Federal
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August 23, 2024
IRS Delays Tax Deadlines In Puerto Rico After Tropical Storm
Taxpayers in Puerto Rico will be given until Feb. 3 to file individual and business tax returns and make payments after the island was hit by Tropical Storm Ernesto, the Internal Revenue Service said Friday.
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August 23, 2024
Business Or Home? The $1M Question, Judge Says
A family-run company that spent $7.3 million on a house overlooking San Francisco Bay may have used it for business and so the family's trust could be entitled to a $1 million tax refund for related operating losses, a Florida federal judge said.
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August 23, 2024
DC Eyes Joining IRS Direct File For 2026, Revenue Rep Says
The District of Columbia is considering joining the Internal Revenue Service's free electronic tax filing program, Direct File, in 2026, a representative of the district's tax agency said Friday.
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August 23, 2024
Weekly Internal Revenue Bulletin
The Internal Revenue Service's weekly bulletin, issued Friday, included proposed regulations that outline when foreign taxes under the Pillar Two international minimum tax agreement could trigger long-standing U.S. rules that aim to prevent companies from what is known as double-dipping the same economic loss.
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August 23, 2024
Taxation With Representation: Latham, Wachtell, Paul Weiss
In this week's Taxation With Representation, Arch Resources merges with Consol Energy in a deal worth $5.2 billion, Advanced Micro Devices agrees to purchase ZT Systems for $4.9 billion, and Japanese tobacco company JT Group inks a deal to buy Vector Group for $2.4 billion.
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August 22, 2024
5th Circ. Says No Tolling For COVID, Trims Atty's Conviction
The Fifth Circuit on Thursday knocked a false statement charge off Houston attorney Richard Plezia's conviction for his involvement in a multimillion-dollar ambulance-chasing kickback scheme but upheld the rest of his conviction, including conspiracy to defraud the U.S. by helping another lawyer evade federal income taxes.
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August 22, 2024
Justices Disfavor External Consistency Test, Mass. Atty Says
The U.S. Supreme Court likely will decline to hear a construction company's argument that South Dakota's refusal to apportion use tax on its equipment was unconstitutional, a Massachusetts tax agency attorney predicted Thursday, saying the justices have no appetite for applying the external consistency test anymore.
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August 22, 2024
NC Hot Rod Shop Owner Admits To Not Paying $2M In Taxes
A North Carolina automotive business owner has pled guilty to failing to pay more than $2 million in employment taxes and not filing employment tax returns, the U.S. Department of Justice announced Thursday.
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August 22, 2024
Tax Co. Owner Didn't Fraudulently Fail To File, Tax Court Says
An owner of financial and tax services companies who earned about $1 million annually and failed to file returns for four years doesn't have to pay a roughly $1.2 million fraud penalty assessed by the Internal Revenue Service, the U.S. Tax Court ruled Thursday.
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August 22, 2024
Tax Court OKs IRS Rejection Of Tax Liability Compromise
An Internal Revenue Service settlement officer didn't abuse her discretion when she decided to reject an offer from a Maryland couple to settle their more than $103,000 in outstanding tax debts by paying just over $1,800, the Tax Court said Thursday.
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August 22, 2024
IRS Secretly Targeted Some ESOPs, Court Told
The Internal Revenue Service secretly promulgated rules that treat certain employee stock ownership plans as potentially abusive, an ESOP and its related parties told a Wisconsin federal court in accusing the agency of exceeding its authority and violating the Administrative Procedure Act.
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August 22, 2024
Guardrails Needed To Thwart Abuse Of Tax-Free Tips Law
Without restrictions to prevent it, including limits on incomes of eligible workers, legislation to exempt tips from taxes — something both the Democratic and Republican presidential candidates and some congressional lawmakers are proposing — could be gamed by reclassifying income as tips.
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August 22, 2024
Meet The 'Larger Than Life' Atty Defending Hunter Biden
The renowned attorney representing Hunter Biden at his upcoming criminal tax trial is a "larger than life" figure whose ability to connect with a jury, legal acumen and media savvy have made him a go-to lawyer for celebrities and high-profile cases, according to those who know him.
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August 21, 2024
Hunter Biden Can't Link Trauma, Drug Abuse To Tax Charges
Hunter Biden can't tell jurors in his criminal tax trial that traumatic events like his brother's death caused his addiction, which led to a diminished mental capacity and his failure to pay taxes, a California federal judge said Wednesday, noting the information was irrelevant and not backed by expert opinion.
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August 21, 2024
Ariz. Man Should Pay Full $2.7M FBAR Bill, Gov't Says
An Arizona man who failed to report his foreign bank accounts in Switzerland owes approximately $2.7 million in recalculated penalties and interest to the Internal Revenue Service, the U.S. told an Arizona federal court.
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August 21, 2024
9th Circ. Upholds FBAR Penalty, Imposes Contested Interest
A woman who operates a New Zealand winery must pay $238,000 in penalties and an extra $105,000 in interest and fees for failing to report her New Zealand financial accounts to the U.S. government, the Ninth Circuit ruled Wednesday.
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August 21, 2024
3 Questions Raised By Harris' Support For 28% Corp. Tax Rate
Vice President Kamala Harris has proposed increasing the corporate tax rate to 28% to boost revenue if she's elected president, but the proposed hike raises questions about changes to the corporate tax base, the future of the OECD's global tax deal and the potential impact on workers.
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August 21, 2024
Tax Interest Rates To Stay Same In 4th Quarter
The Internal Revenue Service's interest rates for overpayments and underpayments of tax won't change in the fourth quarter of 2024, the agency said Wednesday.
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August 21, 2024
Senior House Dem Tax Writer, Trump Critic Dead At 87
A long-standing Democratic member of the House Ways and Means Committee who pressed for the release of former President Donald Trump's tax returns and for the repeal of the cap on state and local tax deductions died Wednesday.
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August 21, 2024
Wisconsin Latest State To Join Direct File For 2025
The Internal Revenue Service's free electronic tax filing program, Direct File, will be available in Wisconsin for the 2025 tax filing season, the IRS and U.S. Treasury Department announced Wednesday.
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August 21, 2024
Scrap Metal Dealer Cops To Converter Theft Conspiracy
A North Carolina scrap metal dealer has pled guilty to theft and tax charges associated with a catalytic converter theft conspiracy spanning several states, the Department of Justice announced Tuesday.
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August 21, 2024
Pros Tell IRS To Ease Off Foreign Gift Reporting Penalties
The Internal Revenue Service should take a more lenient approach when considering penalty abatements for certain individuals who fail to report large foreign gifts under proposed disclosure regulations, practitioners told the agency Wednesday.
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August 21, 2024
Tax Biz Owner Says Any Errant Returns Were Honest Mistakes
The owner of a Miami tax preparation business rejected the government's claim that she deliberately falsified client returns, telling a Florida federal court that she relied in good faith on the information provided to her by her customers.
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August 21, 2024
IRS Issues Corrections For Credit Transfer Rules
The Internal Revenue Service issued corrections Wednesday to final regulations concerning the election under the Inflation Reduction Act of 2022 to transfer certain tax credits.
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August 20, 2024
Mich. Man To Face Loan, Wire Fraud Charges Despite Mistrial
A Michigan business owner already accused of COVID-19 loan fraud cannot have a superseding wire fraud charge tossed even though a mistrial was declared in the loan fraud case, a Michigan federal judge has ruled.
Expert Analysis
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3 Leadership Practices For A More Supportive Firm Culture
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.
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E-Discovery Quarterly: Rulings On Hyperlinked Documents
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.
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Loper Bright Limits Federal Agencies' Ability To Alter Course
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.
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A Guide To Long-Term, Part-Time Employee Determinations
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.
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After Chevron: Delegation Of Authority And Tax Regulators
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.
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Lawyers Can Take Action To Honor The Voting Rights Act
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.
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How To Grow Marketing, Biz Dev Teams In A Tight Market
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.
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Rock Climbing Makes Me A Better Lawyer
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.
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Contract Disputes Recap: Preserving Payment Rights
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.
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Think Like A Lawyer: Dance The Legal Standard Two-Step
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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After Jarkesy, IRS Must Course-Correct On Captive Insurance
The U.S. Supreme Court’s recent Securities and Exchange Commission v. Jarkesy decision has profound implications for other agencies, including the IRS, which must stop ignoring due process and curtailing congressional intent in its policing of captive insurance arrangements, says Peter Dawson at the 831(b) Institute.
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Lead Like 'Ted Lasso' By Embracing Cognitive Diversity
The Apple TV+ series “Ted Lasso” aptly illustrates how embracing cognitive diversity can be a winning strategy for teams, providing a useful lesson for law firms, which can benefit significantly from fresh, diverse perspectives and collaborative problem-solving, says Paul Manuele at PR Manuele Consulting.
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Class Actions At The Circuit Courts: July Lessons
In this month's review of class action appeals, Mitchell Engel at Shook Hardy considers cases touching on pre- and post-conviction detainment conditions, communications with class representatives, when the American Pipe tolling doctrine stops applying to modified classes, and more.