Federal
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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.
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November 12, 2024
Tax Court Drills Teacher With Frivolous Argument Penalty
A Georgia high school teacher's claim that roughly $86,000 in income he received didn't qualify as wages was not just incorrect but frivolous, the U.S. Tax Court said Tuesday, upholding the IRS' determination that he owed taxes on that income as well a $25,000 penalty.
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November 12, 2024
Broker Calls 78-Month Sentence For Tax Scheme Unfair
An insurance agent convicted of conspiracy and tax crimes in a multimillion-dollar tax avoidance scheme told a North Carolina federal court ahead of his sentencing, scheduled for Wednesday, that the 78-month prison sentence recommended by prosecutors is harsher than punishments for similar offenders.
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November 12, 2024
Treasury To Host Webinar For Beneficial Ownership Info Filing
The U.S. Treasury Department's Financial Crimes Enforcement Network will host a free webinar Nov. 19 to aid companies that need to file their initial beneficial ownership information under the Corporate Transparency Act by the start of 2025.
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November 08, 2024
Disaster Tax Relief Could Be On Slate In Lame-Duck Session
Congress returns to Washington, D.C., on Tuesday following former President Donald Trump's reelection, and while lawmakers will likely be gearing up for next year's tax negotiations, there are some tax policies that could pass during the lame-duck session, including disaster tax relief.
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November 08, 2024
9th Circ. Says Univ. Wrongly Deprived Of Tax-Exempt Status
The Ninth Circuit on Friday reversed a decision by an Arizona district court backing the U.S. Department of Education's determination that the privately owned Grand Canyon University didn't qualify as a nonprofit institution for classification related to federal loan and grant programs.
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November 08, 2024
Career Butler Snow Attorney Joins Holland & Knight In NYC
Holland & Knight LLP has hired a transactional attorney who focuses her practice on new markets tax credits and other financial matters, and who spent her entire career up to now with Butler Snow LLP, the firm announced Thursday.
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November 08, 2024
Shutts & Bowen Adds Complex Taxation Pro In Sarasota
Shutts & Bowen LLP has brought on a new partner at the firm's growing Sarasota, Florida, office, bringing close to 20 years of private practice tax law experience to the firm's private client services practice group.
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November 08, 2024
Nixon Peabody Helps Boston Supportive Housing Land $153M
A Boston housing development nonprofit, with guidance from Nixon Peabody LLP, obtained $153 million in financing to develop a 19-story, 126-unit supportive housing project in the city, the law firm announced.
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November 08, 2024
Ex-Spouse Entitled To $2.9M Pandemic Tax Refund, Court Told
A woman is entitled to a $2.9 million tax refund under pandemic-era relief provisions for carryback losses shared with her ex-husband, she told a Texas federal court, accusing the Internal Revenue Service of wrongly requiring both of the former couple's signatures on a consent form.
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November 08, 2024
Weekly Internal Revenue Bulletin
The Internal Revenue Service's weekly bulletin, issued Friday, included registration guidance for manufacturers of energy efficiency improvement products that qualify for a homeowner tax credit.
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November 07, 2024
Vanguard Investors Ink $40M Settlement In Tax Liability Suit
Vanguard investors have asked a Pennsylvania federal judge to give the first green light to a $40 million settlement reached with the firm over it allegedly breaching its fiduciary duty when it triggered a sell-off of assets that left investors with massive tax bills.
Expert Analysis
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Planning Law Firm Content Calendars: What, When, Where
During the slower month of August, law firms should begin working on their 2025 content calendars, planning out a content creation and distribution framework that aligns with the firm’s objectives and maintains audience engagement throughout the year, says Jessica Kaplan at Legally Penned.
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Brownfield Questions Surround IRS Tax Credit Bonus
Though the IRS has published guidance regarding the Inflation Reduction Act's 10% adder for tax credits generated by renewable energy projects constructed on brownfield sites, considerable guesswork remains as potential implications seem contrary to IRS intentions, say Megan Caldwell and Jon Micah Goeller at Husch Blackwell.
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Law Firms Should Move From Reactive To Proactive Marketing
Most law firm marketing and business development teams operate in silos, leading to an ad hoc, reactive approach, but shifting to a culture of proactive planning — beginning with comprehensive campaigns — can help firms effectively execute their broader business strategy, says Paul Manuele at PR Manuele Consulting.
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The Big Issues A BigLaw Associates' Union Could Address
A BigLaw associates’ union could address a number of issues that have the potential to meaningfully improve working conditions, diversity and attorney well-being — from restructured billable hour requirements to origination credit allocation, return-to-office mandates and more, says Tara Rhoades at The Sanity Plea.
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It's Time For A BigLaw Associates' Union
As BigLaw faces a steady stream of criticism about its employment policies and practices, an associates union could effect real change — and it could start with law students organizing around opposition to recent recruiting trends, says Tara Rhoades at The Sanity Plea.
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Why DOJ's Whistleblower Program May Have Limited Impact
The U.S. Department of Justice’s new whistleblower pilot program aims to incentivize individuals to report corporate misconduct, but the program's effectiveness may be undercut by its differences from other federal agencies’ whistleblower programs and its interplay with other DOJ policies, say attorneys at Milbank.
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How Justices Upended The Administrative Procedure Act
In its recent Loper Bright, Corner Post and Jarkesy decisions, the U.S. Supreme Court fundamentally changed the Administrative Procedure Act in ways that undermine Congress and the executive branch, shift power to the judiciary, curtail public and business input, and create great uncertainty, say Alene Taber and Beth Hummer at Hanson Bridgett.
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Trump's Best Hush Money Appeal Options Still Likely To Fail
The two strongest potential arguments former President Donald Trump could raise in appealing his New York hush money conviction seem promising at first, but precedent strongly suggests they will still ultimately fail — though, of course, Trump's unique position could lead to surprising results, says former New York Supreme Court Justice Ethan Greenberg, now at Anderson Kill.
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Tips For Tax Equity-Tax Credit Transfers That Pass IRS Muster
Although the Internal Revenue Service has increased its scrutiny of complex partnership structures, which must demonstrate their economic substance and business purpose, recent cases and IRS guidance together provide a reliable road map for creating legitimate tax equity structures, say Ian Boccaccio and Michael Messina at Ryan Tax.
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Mirror, Mirror On The Wall, Is My Counterclaim Bound To Fall?
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.
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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.