Federal
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February 06, 2025
6th Circ. Won't Reconsider Gold Broker's $3M Tax Bill
A Tennessee gold and silver broker found liable for $3 million in tax deficiencies after he presented fatuous arguments in the Sixth Circuit that he wasn't subject to income taxes will not have his case reheard by the appellate court, the court said Thursday.
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February 05, 2025
Key IRS Workers Can't Do 'Resign' Deal Until After Tax Season
Internal Revenue Service workers were notified Wednesday that employees working in positions considered necessary to the tax filing season can't accept President Donald Trump's resignation offer until mid-May.
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February 05, 2025
Israeli Law Firm Allowed To Amend Suit Against GILTI Regs
A D.C. federal court on Wednesday let the owner of an Israeli law firm amend his challenge of regulations for the U.S. tax on global intangible low-taxed income, a provision of the 2017 tax overhaul.
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February 05, 2025
US Bill Aims To Ax Tax Incentives For Multinational Cos.
Congress should repeal and replace federal tax measures that allow multinational corporations to reduce taxable income in the United States, including by holding assets abroad, according to two Democratic lawmakers who reintroduced a bill to that effect Wednesday.
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February 05, 2025
Dems Seek Further Review Of Treasury And DOGE
Democrats are not satisfied with the answers they've received from the U.S. Department of Treasury on access granted to Elon Musk's Department of Government Efficiency to the federal payment system and are looking at other avenues to scrutinize his activity.
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February 05, 2025
Goldstein, Saying He's Mired In Debt, Asks To Redo Bail Terms
Prominent U.S. Supreme Court attorney and SCOTUSblog publisher Tom Goldstein has a negative net worth of more than $3.3 million and is mired in debt to his attorneys, he said in a filing Wednesday seeking to modify the conditions of his release ahead of a trial on federal criminal tax evasion charges.
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February 05, 2025
Ex-Animal Hospital Owners Blame CPA For Taxes Paid Late
A couple who owed $2.8 million in taxes after selling their veterinary hospital told an Idaho federal court that they missed the payment deadline because their accountant stopped responding to them after promising to finish their return, prompting them to hire a private investigator.
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February 04, 2025
External Revenue Service Could Help Solve Unpaid Duty Issue
President Donald Trump's call for a new agency designed to collect trade revenue, billed as the External Revenue Service, may be more than a flashy concept and could tackle lingering inefficiencies associated with duty collection, experts say.
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February 04, 2025
Akerman Adds Ex-DOJ Tax Atty From Chamberlain Hrdlicka
Akerman LLP has brought on a former Internal Revenue Service and U.S. Department of Justice trial attorney from Chamberlain Hrdlicka White Williams & Aughtry PC as a tax partner in Atlanta.
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February 04, 2025
Kostelanetz Adds Tax Pro From Lowenstein Sandler
Kostelanetz LLP said a former partner at Lowenstein Sandler LLP has joined the firm as a partner in the Washington, D.C., office.
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February 04, 2025
Movie Review, Memorabilia Income Not Tax-Free, Court Says
A Georgia man must pay self-employment taxes on the over $50,000 he generated from writing freelance movie reviews and selling movie memorabilia, the U.S. Tax Court ruled Tuesday, also saying he must pay an associated accuracy-related penalty.
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February 04, 2025
3rd Circ. Urged To Nix Tax On $191M In Family Pharma Feud
A pharmaceutical company's $191 million payment settling a family feud over shares of the business did not include imputed interest triggering higher taxes as the U.S. government claims, a trust for family members who received the money told the Third Circuit.
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February 04, 2025
Tomato Paste Cos. Ask 9th Circ. To Revisit Deduction Denial
A pair of tomato paste producers have requested that the Ninth Circuit revisit its decision denying them a tax deduction for facility upgrades, arguing that a panel's majority ruling in December conflicted with the appellate court's established precedent.
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February 04, 2025
IRS Cancels Hearing On Admin Requirements For Direct Pay
The Internal Revenue Service on Tuesday canceled a hearing scheduled for this Friday on proposed regulations related to administrative requirements for tax-exempt entities looking to take advantage of new rules enabling direct cash payment of clean energy tax credits.
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February 03, 2025
Trump Orders Plan For Creating US Sovereign Wealth Fund
President Donald Trump on Monday signed an executive order calling on the U.S. Department of the Treasury and U.S. Department of Commerce to come up with a plan to create a U.S. sovereign wealth fund and said the social media app TikTok could potentially be put in the proposed fund.
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February 03, 2025
Schumer Warns Of 'Hostile Takeover' From DOGE
Top Senate Democrats on Monday railed against access granted to Elon Musk's Department of Government Efficiency that allowed the outfit's employees to tap into the U.S. Department of Treasury's federal payment system over the weekend.
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February 03, 2025
Man Failed To Prove Biz Loss Claims, Tax Court Says
A Connecticut man failed to adequately back up his argument that he was entitled to nearly $85,000 in partnership losses tied to two businesses, the U.S. Tax Court said Monday, upholding an IRS determination that also hit him with an accuracy-related penalty.
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February 03, 2025
Senate Tees Up Vote On Trump's Pick To Lead OMB
The U.S. Senate set the stage Monday to proceed with a vote on President Donald Trump's pick to be the new chief of the Office of Management and Budget.
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February 03, 2025
DC Circ. Urged To Back IRS' Denial Of Whistleblower Award
The D.C. Circuit should affirm the IRS' rejection of a man's claim for a whistleblower award because it was filed too late and the agency never collected proceeds or took action based on the tip, the federal government argued Monday.
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February 03, 2025
IRS Defends Process For Denying Worker Credit Claims
The Internal Revenue Service defended its process for rejecting applications for pandemic-era worker tax credits that it deems too risky to pay out, telling an Arizona federal court that contrary to the claims of two companies suing the agency over denials, its response has been reasonable.
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February 03, 2025
DC Judge Joins RI In Blocking Trump Funding Freeze
A D.C. federal judge on Monday temporarily blocked the Trump administration from implementing a freeze on federal spending while a group of nonprofits sue over the move, ruling the pause appears to "suffer from infirmities of a constitutional magnitude."
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February 03, 2025
Couple Cannot Deduct IVF Surrogacy Expenses, IRS Says
A married couple who said medical problems require them to use a pregnancy surrogate to have a child may not deduct their payments for in vitro fertilization for the surrogate as their own medical expenses, the Internal Revenue Service said in a private letter ruling.
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January 31, 2025
Funding Freezes 'Commonplace,' Feds Tell DC Judge
The Trump administration is asking a D.C. federal judge to throw out a lawsuit challenging a freeze on federal spending outlined in a since-rescinded memo from the White House budget office, telling the court that the withdrawal moots the litigation.
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January 31, 2025
Supreme Court Eyes Its 'Next Frontier' In FCC Delegation Case
A case about broadband subsidies will give the U.S. Supreme Court the chance to revive a long-dormant separation of powers principle that attorneys say could upend regulations in numerous industries and trigger a power shift that would make last term's shake-up of federal agency authority pale in comparison. And a majority of the court already appears to support its resurrection.
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January 31, 2025
The Tax Angle: TCJA Renewal Cost, ACA Credits, OMB Pick
From a look at the budget impact of renewing the 2017 tax overhaul law to uncertainty surrounding the renewal of Affordable Care Act premium tax credits and the nomination of a new chief of the Office of Management and Budget, 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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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.
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Now More Than Ever, Lawyers Must Exhibit Professionalism
As society becomes increasingly fractured and workplace incivility is on the rise, attorneys must champion professionalism and lead by example, demonstrating how lawyers can respectfully disagree without being disagreeable, says Edward Casmere at Norton Rose.
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Reading Between The Lines Of Justices' Moore Ruling
The U.S. Supreme Court's recent Moore v. U.S. decision, that the Internal Revenue Code Section 965 did not violate the 16th Amendment, was narrowly tailored to minimally disrupt existing tax regimes, but the justices' various opinions leave the door open to future tax challenges and provide clues for what the battles may look like, say Caroline Ngo and Le Chen at McDermott.