Federal

  • August 26, 2024

    Varian Entitled To Foreign Dividend Break, Tax Court Says

    California-based medical device company Varian Medical Systems is entitled to a deduction for dividends received from its foreign subsidiaries, the U.S. Tax Court ruled Monday in a unanimous opinion.

  • August 26, 2024

    US Should Extend Expiring TCJA Tax Cuts, Chamber Says

    The expiration of the 2017 Tax Cuts and Jobs Act in 2025 gives the next Congress an opportunity to pass pro-growth tax policies, the U.S. Chamber of Commerce said Monday.

  • August 26, 2024

    Kyocera's Gross-Up Doesn't Grant $143M Tax Break, US Says

    Electronics maker Kyocera cannot be allowed to take a $143 million tax deduction for distributions received under a 2017 tax law based on a separate statute's gross-up for paid foreign tax credits, the government told a South Carolina federal court.

  • August 26, 2024

    10th Circ. Won't Rethink Toss Of Insurers' $2M Tax Appeal

    Captive insurance companies that claim the U.S. Tax Court improperly rejected their request to invalidate tax deficiency notices in their case challenging $2 million in liabilities must wait until the court issues a final decision before they can appeal, the Tenth Circuit reaffirmed.

  • August 26, 2024

    Netflix Can't Shut Off 'Varsity Blues' Defamation Suit

    A private equity executive who largely beat charges in the "Varsity Blues" college admissions case can proceed with a suit against Netflix claiming he and his son were defamed by the streaming giant's documentary about the scandal, a Massachusetts judge has ruled.

  • August 26, 2024

    Feds Want Prison For Ex-Atlanta CFO Who Stole City Funds

    The former chief financial officer for the city of Atlanta who admitted to stealing city money and obstructing an IRS audit should spend at least about three years in prison, federal prosecutors argued ahead of his sentencing, saying he has been uncooperative since pleading guilty.

  • August 23, 2024

    Wash. Justices Affirm Convicted Ex-State Auditor Disbarment

    The Washington Supreme Court affirmed a recommendation to disbar convicted former state auditor Troy X. Kelley after he was imprisoned on felony theft charges, finding that Kelley's crimes justified the disbarment sanction.

  • August 23, 2024

    Chamber Backs Doctor In Tax Court Economic Substance Suit

    The U.S. Chamber of Commerce lent its support to an eye doctor and his wife's U.S. Tax Court case disputing accuracy-related penalties that the Internal Revenue Service plans to impose on their microcaptive insurance arrangements for lacking economic substance.

  • August 23, 2024

    Intended Financial Harm Counts In Sentencing, 4th Circ. Says

    A split Fourth Circuit panel on Friday upheld a South Carolina woman's 30-month sentence for filing false tax returns and making false statements on applications for Paycheck Protection Program loans, finding that a sentencing range can be calculated using the total amount of intended financial harm.

  • August 23, 2024

    IRS Spinoff Guidance Sparks Worries About Short-Term Debt

    Companies that intend to give creditors equity tied to a spinoff transaction won't get early tax-free approval if the exchange involves recently acquired debt under IRS guidance that practitioners say draws an arbitrary line without accounting for ordinary business operations.

  • August 23, 2024

    Alvarez & Marsal Adds Transfer Pricing Expert From EY

    A former EY partner joined Alvarez & Marsal LLC to serve as managing director of its transfer pricing line of services in its New York office, the firm announced.

  • August 23, 2024

    Crypto Exec To Appeal IRS Bank Summons Ruling

    A cryptocurrency executive charged in a 2020 bitcoin fraud investigation told a Texas federal court that he will appeal a decision this month that granted the Internal Revenue Service's request to review his and his company's sequestered bank records.

  • August 23, 2024

    US Trying Illegal Property Grab For Dad's Tax Debt, Son Says

    The son of a man serving a 22-year fraud sentence told a Georgia federal court that the federal government is violating his constitutional rights in trying to take his property to satisfy his parents' tax debts, saying he had nothing to do with his father's crimes.

  • August 23, 2024

    Tax Deadlines In South Dakota Delayed After Storms

    Taxpayers in South Dakota will be given until Feb. 3 to file individual and business tax returns and make payments after areas of the state were hit by severe storms, straight-line winds and flooding in June, the Internal Revenue Service said Friday.

  • August 23, 2024

    Utah Plumbing Supply Co.'s Microcaptive Suit Tossed

    A Utah federal judge dismissed Friday a plumbing supply company and its owners' bid to set aside the IRS' 2016 notice that imposed additional reporting requirements for certain microcaptive insurance arrangements under the threat of penalty, saying the court lacks jurisdiction to do so.

  • August 23, 2024

    Gov't Too Late In $2.3M Estate Tax Suit, Court Rules

    The U.S. government waited too long to pursue more than $2.3 million in estate taxes from a Florida man accused of using his late mother's estate's funds to pay mortgage payments instead of taxes, a federal court ruled.

  • 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.

  • 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.

  • 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.

  • 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.

  • 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.

  • 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.

  • 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.

  • 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.

  • 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.

Expert Analysis

  • 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.

  • After Jarkesy, IRS Must Course-Correct On Captive Insurance

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    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.

  • Lead Like 'Ted Lasso' By Embracing Cognitive Diversity

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    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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