Federal
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January 30, 2025
Tax Court OKs Penalty Sign-Off In $18M Easement Dispute
An IRS agent complied with a requirement that her supervisor approve tax penalties she asserted against an Alabama partnership whose nearly $18 million deduction for a conservation easement donation was rejected by the agency, the U.S. Tax Court said Thursday.
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January 30, 2025
Tax Court OKs Levy Against Woman Who Didn't Back Up Args
The Internal Revenue Service didn't act improperly when it upheld a levy against a California woman who owed tax debts for multiple years, the U.S. Tax Court determined Thursday, saying she routinely failed to back up her assertions.
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January 30, 2025
IRS Asked To Cut Forms For Tax-Exempt Groups' Int'l Deals
Tax-exempt organizations shouldn't need to report transactions with foreign corporations or foreign partnerships if they don't hold a controlling interest in those entities, since the risk of unreported income is negligible, the American Institute of Certified Public Accountants told the IRS.
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January 30, 2025
Florida Salesman Evaded $2M In Tax Over 13 Years, Court Told
A Florida salesman evaded nearly $2 million in taxes over more than a dozen years while earning more than $10 million by transferring his home and cash to his domestic partner and creating a nominee business, according to an indictment in Florida federal court.
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January 30, 2025
Crapo, Wyden Pitch Harsher Tax Pro Fines In IRS Revamp Bill
The Internal Revenue Service would be required to simplify foreign bank account report compliance and increase civil and criminal penalties on tax professionals who deliberately harm their clients under draft legislation released Thursday by the Senate Finance Committee's top Democrat and Republican.
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January 30, 2025
New Penalty Rules Flawed, 5th Circ. Told In Microcaptive Row
Treasury's new rules on supervisory approval of penalties are flawed and don't apply to a couple's suit challenging tax penalties and denied deductions related to microcaptive insurance companies they operated for a network of urgent care clinics, an attorney for the couple told the Fifth Circuit.
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January 30, 2025
Pillar 2 Should Live On Despite US Threats, Economists Say
Nations worldwide should continue implementing the international minimum tax agreement known as Pillar Two despite recent threats from the U.S. government to retaliate against what it sees as discriminatory measures imposed on U.S. companies, a group of economists said.
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January 30, 2025
Tax Group Of The Year: Skadden
Skadden Arps Slate Meagher & Flom LLP's tax practice advised on key deals and cases in 2024, including Mars Inc.'s $35.9 million acquisition of Kellanova and BlackRock Inc.'s $12.5 billion acquisition of Global Infrastructure Partners, landing it among the 2024 Law360 Tax Groups of the Year.
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January 30, 2025
SCOTUSblog Publisher Can't Shield Home From Forfeiture
SCOTUSblog publisher Tom Goldstein won't be able to shield his Washington, D.C., residence from forfeiture by substituting various properties in South Carolina as he battles charges that he dodged taxes and used his law firm's money to pay off gambling debts.
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January 30, 2025
IRS Updates NDA Language To Include Anti-Gag Provisions
The Internal Revenue Service has updated its nondisclosure agreement templates to include anti-gag provisions, following a review by the Treasury Inspector General for Tax Administration that found many NDAs lacked required references to whistleblower protections.
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January 30, 2025
Dechert's NY Office Adds Tax Pro From Milbank
Dechert LLP said it has bolstered its global tax group by adding a former special counsel from Milbank LLP to the firm's New York office.
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January 30, 2025
IRS Missing Mark On Processing Paper Returns, GAO Says
The Internal Revenue Service failed to hit its goal of processing paper returns for the 2024 tax filing season in an average of 13 days, instead taking 20, continuing a pattern of delays, the Government Accountability Office said Thursday.
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January 29, 2025
Court Garbled Pharma Owner's Fraud Charges, 6th Circ. Told
An Ohio district court misrepresented healthcare fraud charges against a pharmaceutical salesman to a jury, his attorney argued Wednesday before the Sixth Circuit, calling for the court to overturn his 2023 conviction and subsequent restitution order to pay $7 million to the IRS.
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January 29, 2025
Pension Plans Seek Trader's Testimony In $2B Tax Fraud Suit
Pension plans and individuals who Denmark's government alleges received fraudulent refunds have asked a New York federal court to allow U.K. court testimony into the record from a trader who Danish authorities say masterminded a $2.1 billion tax fraud, saying it shows he deceived other participants.
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January 29, 2025
SCOTUSBlog Publisher Faces Tough Odds In Tax Crimes Case
SCOTUSblog publisher Tom Goldstein, an expert U.S. Supreme Court lawyer accused of paying gambling debts with funds from his law firm and dodging taxes, faces an uphill battle given the considerable amount of evidence the government has already included in an indictment against him, attorneys told Law360.
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January 29, 2025
Calif. Woman Denied Relief From Joint Tax Debt
A California woman is ineligible for relief from the tax liability she and her husband accrued due to incorrectly claimed retirement fund withdrawals, the U.S. Tax Court ruled Wednesday, upholding the Internal Revenue Service's decision to deny the relief.
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January 29, 2025
IRS Appellate Staff Not Afoul Of Constitution, Tax Court Says
The U.S. Tax Court rejected arguments Wednesday by a man challenging the collection of his taxes that employees of the Internal Revenue Service's independent appeals office serve in violation of the U.S. Constitution.
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January 29, 2025
Donated Property Worth $12M Less, Tax Court Affirms
An Alabama couple must pay over $2.5 million in taxes and penalties after the U.S. Tax Court on Wednesday upheld an IRS determination that the value of property they contributed to charity was worth roughly $4 million, not the nearly $16 million they claimed.
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January 29, 2025
White & Case Adds Global Tax Pro From McDermott
White & Case LLP announced Wednesday that it is expanding its global tax practice by bringing in a former McDermott Will & Emery partner to its Washington, D.C., office.
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January 29, 2025
Tax Group Of The Year: Mayer Brown
Mayer Brown LLP's bench of tax talent is so deep that it can help its clients sell the Chicago Cubs one day and buy $646 million of Brazilian solar farms on another. The firm's ability to offer tax transaction and advisory services across industries, transaction types and specialty areas earned it a place among the 2024 Law360 Tax Groups of the Year.
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January 29, 2025
Chippewa Lawyer Tells High Court His Income Isn't Taxable
An attorney who belongs to the Minnesota Chippewa Tribe asked the U.S. Supreme Court to overturn a decision that said he owes taxes on self-employment income, saying no law expressly allows the federal taxation of income earned by Native Americans living on reservations.
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January 29, 2025
EU Will Keep Minimum Tax Despite US, Commissioner Says
The European Union will maintain a 15% minimum corporate tax rate on large companies despite the U.S. government's opposition to the global tax deal, a European commissioner said Wednesday.
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January 29, 2025
White House Rescinds Trump's Spending Freeze
The White House on Wednesday rescinded a directive freezing federal funding, saying it wants to end litigation and confusion, but said the move will not end a review of spending to ensure compliance with a series of executive orders by the president.
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January 29, 2025
11th Circ. Won't Take Back Up IRS Summons' Constitutionality
The Eleventh Circuit on Tuesday declined to revisit its November decision rejecting a taxpayer's argument that an Internal Revenue Service summons violated his Fifth Amendment rights against self-incrimination.
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January 28, 2025
Lobbying Is Not A Crime, Madigan Co-Defendant Tells Jury
An attorney for an ex-lobbyist standing trial on public corruption charges alongside former Illinois House Speaker Michael Madigan told jurors on Tuesday the government failed to establish that his client conspired to trade the ex-speaker's support for do-nothing jobs, saying all that really happened was "lobbying and politics."
Expert Analysis
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Think Like A Lawyer: Always Be Closing
When a lawyer presents their case with the right propulsive structure throughout trial, there is little need for further argument after the close of evidence — and in fact, rehashing it all may test jurors’ patience — so attorneys should consider other strategies for closing arguments, says Luke Andrews at Poole Huffman.
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Litigation Inspiration: Attys Can Be Heroic Like Olympians
Although litigation won’t earn anyone an Olympic medal in Paris this summer, it can be worthy of the same lasting honor if attorneys exercise focused restraint — seeking both their clients’ interests and those of the court — instead of merely pursuing every advantage short of sanctionable conduct, says Bennett Rawicki at Hilgers Graben.
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Lean Into The 'Great Restoration' To Retain Legal Talent
As the “great resignation,” in which employees voluntarily left their jobs in droves, has largely dissipated, legal employers should now work toward the idea of a “great restoration,” adopting strategies to effectively hire, onboard and retain top legal talent, says Molly McGrath at Hiring & Empowering Solutions.
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How Cannabis Rescheduling May Alter Paraphernalia Imports
The Biden administration's recent proposal to loosen federal restrictions on marijuana use raises questions about how U.S. Customs and Border Protection enforcement policies may shift when it comes to enforcing a separate federal ban on marijuana accessory imports, says R. Kevin Williams at Clark Hill.
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NCAA Settlement May End The NIL Model As We Know It
The recent House v. NCAA settlement in California federal court, in which the NCAA agreed to allow schools to directly pay March Madness television revenue to their athletes, may send outside name, image and likeness collectives in-house, says Mike Ingersoll at Womble Bond.
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Fishing Makes Me A Better Lawyer
Atop the list of ways fishing makes me a better lawyer is the relief it offers from the chronic stress of a demanding caseload, but it has also improved my listening skills and patience, and has served as an exceptional setting for building earnest relationships, says Steven DeGeorge at Robinson Bradshaw.
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A Healthier Legal Industry Starts With Emotional Intelligence
The legal profession has long been plagued by high rates of mental health issues, in part due to attorneys’ early training and broader societal stereotypes — but developing one’s emotional intelligence is one way to foster positive change, collectively and individually, says attorney Esperanza Franco.
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To Make Your Legal Writing Clear, Emulate A Master Chef
To deliver clear and effective written advocacy, lawyers should follow the model of a fine dining chef — seasoning a foundation of pure facts with punchy descriptors, spicing it up with analogies, refining the recipe and trimming the fat — thus catering to a sophisticated audience of decision-makers, says Reuben Guttman at Guttman Buschner.
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Circuit Judge Writes An Opinion, AI Helps: What Now?
Last week's Eleventh Circuit opinion in Snell v. United Specialty Insurance, notable for a concurrence outlining the use of artificial intelligence to evaluate a term's common meaning, is hopefully the first step toward developing a coherent basis for the judiciary's generative AI use, says David Zaslowsky at Baker McKenzie.
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BF Borgers Clients Should Review Compliance, Liability
After the U.S. Securities and Exchange Commission's recently announced enforcement proceedings against audit firm BF Borgers for fabricating audit documentation for hundreds of public companies, those companies will need to follow special procedures for disclosure and reporting — and may need to prepare for litigation from the plaintiffs bar, say attorneys at Debevoise.
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Trauma-Informed Legal Approaches For Pro Bono Attorneys
As National Trauma Awareness Month ends, pro bono attorneys should nevertheless continue to acknowledge the mental and physical effects of trauma, allowing them to better represent clients, and protect themselves from compassion fatigue and burnout, say Katherine Cronin at Stinson and Katharine Manning at Blackbird.
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What Updated PLR Procedure May Mean For Stock Spin-Offs
A recently published Internal Revenue Service revenue procedure departs from commonly understood interpretations of the spinoff rules by imposing more stringent standards on companies seeking private letter rulings regarding tax-free stock spinoff and split-off transactions, and may presage regulatory changes that would have the force of law, say attorneys at Skadden.
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Proposed Cannabis Reschedule Sidesteps State Law Effects
The U.S. Department of Justice's recent proposal to move cannabis to Schedule III of the Controlled Substances Act provides certain benefits, but its failure to address how the rescheduling would interact with existing state cannabis laws disappointed industry participants hoping for clarity on this crucial question, says Ian Stewart at Wilson Elser.