Federal
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November 15, 2024
Taxation With Representation: Cravath, MoFo, Gibson Dunn
In this week's Taxation With Representation, Cardinal Health takes a majority stake in GI Alliance and acquires Advanced Diabetes Supply Group, Just Eat offloads Grubhub to Wonder Group, Rivian Automotive and Volkswagen Group launch a joint venture, and Ovintiv Inc. buys Montney Basin assets from Paramount Resources Ltd.
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November 15, 2024
Judge Advises Axing Bank's Home Stake In $1.7M Tax Dispute
A federal magistrate judge recommended jettisoning any interest of JPMorgan Chase Bank NA in a California home the government wants to sell to recover $1.7 million in taxes, saying the bank, as a loan holder, hasn't responded to the government's lawsuit seeking the sale.
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November 15, 2024
Weekly Internal Revenue Bulletin
The Internal Revenue Service's weekly bulletin, issued Friday, included increases to the annual amount employees can contribute to various retirement plans as part of the agency's cost-of-living adjustments.
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November 14, 2024
Cos. Tell Court To Make IRS Process Worker Retention Credits
Two companies that help clients obtain pandemic-era employee retention tax credits asked an Arizona federal court to stop the Internal Revenue Service from issuing what they claim are batch denials based on faulty automated systems, saying the agency is required to individually review all claims.
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November 14, 2024
TIGTA Head Pick Pledges To Support IRS Modernization
President Joe Biden's pick for Treasury inspector general for tax administration pledged during a Senate panel nomination hearing Thursday to support the Internal Revenue Service's modernization efforts and be as apolitical as his predecessor.
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November 14, 2024
Widow Owes $613K After Mexican Tax Dodge, US Tells Court
The widow of a Texas man faces $613,000 in penalties that her husband incurred by failing to report his foreign bank accounts, the U.S. told a federal court, arguing that she participated in a Mexican real estate transaction to avoid paying the penalties he owed.
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November 14, 2024
Senate Fills Last Remaining Tax Court Seat
The Senate approved the last of President Joe Biden's nominees to serve on the U.S. Tax Court, marking the sixth judge the chamber has confirmed to the court this year.
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November 14, 2024
IRS Asks Court To Toss Woman's Inheritance Tax Penalty Suit
A woman who missed the deadline for reporting that she received a $350,000 inheritance isn't allowed to sue the IRS for acting arbitrarily in charging her a late penalty because other remedies to her complaint are available to her, the agency told a California federal court Thursday.
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November 14, 2024
New Clean Electricity Credits At Risk In 2025 Tax Talks
Clean electricity tax credits in the Democrats' signature climate law could be scaled back amid next year's effort by President-elect Donald Trump and GOP lawmakers to quickly renew expiring provisions of the 2017 Tax Cuts and Jobs Act once they're in office.
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November 14, 2024
Duo Charged With Hacking Tax Firms In Refund Fraud Scheme
Boston federal prosecutors have unsealed charges against two men who allegedly used information hacked and stolen from Massachusetts tax preparation firms to pocket more than $1.3 million from fraudulent tax returns.
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November 14, 2024
DC Circ. Won't Rethink Denial Of Church Tax Exemption
The D.C. Circuit rejected a request to reconsider the tax status of an Iowa church that used a psychedelic drug in its rites, letting stand its decision that because the church uses a federally illegal drug, it isn't entitled to tax-exempt status.
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November 13, 2024
Judge Cites 'Deterrence' In Attys' Tax Scheme Prison Sentence
Two St. Louis tax attorneys and a North Carolina insurance agent's pleas for leniency were largely ignored Wednesday by a federal judge sentencing them for their role in a multimillion-dollar tax avoidance scheme, with the judge declaring that the need for public deterrence was too great to let them off the hook without prison time.
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November 13, 2024
Tax Fraud A Potential Topic In Lame-Duck Session, Aides Say
Congress could include disaster-related tax relief and a legislative fix in a year-end package to address rampant fraud associated with the employee retention tax credit, staffers for the House Ways and Means and Senate Finance committees said Wednesday.
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November 13, 2024
Election Clouds Timing of Final Corp. AMT Rules, Official Says
The Internal Revenue Service's timeline for producing final regulations for the corporate alternative minimum tax will depend on priorities set by whomever President-elect Donald Trump picks to lead the U.S. Department of the Treasury, an IRS official said Wednesday.
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November 13, 2024
Senate Panel To Consider Nominee For Tax Inspector General
The Senate Finance Committee will hold a hearing Thursday to consider the nomination of David Samuel Johnson to be the inspector general for tax administration, Senate Finance Committee Chairman Ron Wyden, D-Ore., announced Wednesday.
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November 13, 2024
$545K FBAR Fine Is Unconstitutional, Ex-Professor Tells Court
An 86-year-old former college professor's penalty of $545,000 for failing to report foreign bank accounts is excessive and violates the Eighth Amendment, he told a California federal court.
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November 13, 2024
3rd Circ. Wary Of Easing Cheesesteak Shop Owner's Sentence
Third Circuit judges seemed mostly skeptical of overturning an extension to the prison sentence of a Philadelphia cheesesteak shop owner who admitted to paying employees off the books, saying during oral arguments it was unclear whether the employees should be considered co-conspirators in the tax fraud.
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November 13, 2024
Trump, GOP Victories May Imperil OECD Global Tax Plan
President-elect Donald Trump's and Republicans' victories in the U.S. elections this month call into question whether the OECD's two-pillar global tax plan can be effectively implemented and whether the plan's minimum tax backstop rule can be applied amid threats of retaliatory tax measures by the U.S.
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November 13, 2024
IRS Issues Corp. Bond Monthly Yield Curve For Nov.
The Internal Revenue Service on Wednesday published the corporate bond monthly yield curve for November for use in calculations for defined benefit plans, as well as corresponding segment rates and other related provisions.
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November 13, 2024
Feds Want 2 Years' Jail For Biz Owner In $2.8M Tax Scheme
A construction company owner who paid workers off the books by pretending they were subcontractors, even after one of them died, should serve two years in prison and pay $2.8 million in restitution to the Internal Revenue Service for the tax loss, prosecutors told a Massachusetts federal court.
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November 12, 2024
Ex-ComEd Exec Asked If Madigan Hires Truly An 'Exchange'
Defense attorneys got their chance Tuesday to grill an ex-Commonwealth Edison executive who testified the utility hired people who did little to no work at the behest of former Illinois House Speaker Michael Madigan, asking if it truly traded those jobs for Madigan's action on ComEd legislation or if the company was just building goodwill with a key decision-maker.
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November 12, 2024
House Rejects Bill To Delay Tax Deadlines For Hostages
The U.S. House of Representatives rejected Tuesday a bill that would have delayed tax deadlines and reimbursed late fees for Americans held hostage or unlawfully or wrongfully detained abroad.
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November 12, 2024
Woman Asks Justices To Review IRS Social Security Levy
A Florida woman asked the U.S. Supreme Court to review the Eleventh Circuit's denial of her challenge to the IRS' garnishment of her Social Security payments, saying in a petition docketed Tuesday that the appellate court wrongly found she had failed to exhaust possible administrative remedies.
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November 12, 2024
Treasury's Energy Tax Perk Regs On Track Despite Trump Win
The U.S. Treasury Department still plans to finalize remaining clean energy tax credit regulations by the end of this year despite President-elect Donald Trump's campaign promise to unravel the 2022 climate law that enacted them, a Treasury spokesperson told Law360 on Tuesday.
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November 12, 2024
Mass. Court Says IRS Deal Didn't Fix Man's State Tax Debt
The former corporate officer of a now-defunct Massachusetts company didn't overpay on his outstanding tax liability despite entering into a settlement agreement with the Internal Revenue Service, a state appeals court said Tuesday.
Expert Analysis
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Money, Money, Money: Limiting White Collar Wealth Evidence
As courts increasingly recognize that allowing unfettered evidence of wealth could prejudice a jury against a defendant, white collar defense counsel should consider several avenues for excluding visual evidence of a lavish lifestyle at trial, says Jonathan Porter at Husch Blackwell.
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How Associates Can Build A Professional Image
As hybrid work arrangements become the norm in the legal industry, early-career attorneys must be proactive in building and maintaining a professional presence in both physical and digital settings, ensuring that their image aligns with their long-term career goals, say Lana Manganiello at Equinox Strategy Partners and Estelle Winsett at Estelle Winsett Professional Image Consulting.
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Navigating New Safe Harbor For Domestic Content Tax Credits
The U.S. Department of the Treasury’s recent notice simplifying domestic content calculations for certain solar, onshore wind and battery storage projects, which directly acknowledges the difficulty for taxpayers in gathering data to support a domestic content analysis, should make it easier to qualify additional domestic content bonus tax credits, say attorneys at A&O Shearman.
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Firms Must Rethink How They Train New Lawyers In AI Age
As law firms begin to use generative artificial intelligence to complete lower-level legal tasks, they’ll need to consider new ways to train summer associates and early-career attorneys, keeping in mind the five stages of skill acquisition, says Liisa Thomas at Sheppard Mullin.
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'Energy Communities' Update May Clarify Tax Credit Eligibility
A recent IRS notice that includes updated lists of locations where clean energy projects can qualify for additional tax credits — based 2023 unemployment data and placed-in-service dates — should help provide clarity regarding project eligibility that sponsors and developers need, say attorneys at Troutman Pepper.
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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.