Federal
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July 03, 2024
Insurers Ask 10th Circ. To Rethink Toss Of $2M Tax Appeal
Captive insurance companies and their related entities that are challenging more than $2 million in IRS notices of tax deficiencies asked the Tenth Circuit to reconsider its refusal to review a U.S. Tax Court decision finding the notices were not invalid as the entities had claimed.
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July 03, 2024
Warren, Other Pols Push Yellen For Corp. Minimum Tax Rules
Sen. Elizabeth Warren and three other lawmakers urged Treasury Secretary Janet Yellen for the department to quickly release regulations to implement the corporate alternative minimum tax in a letter released Wednesday.
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July 03, 2024
'Real Housewives' Figure Pleads Guilty To $2.5M Tax Offense
A former cast member of a "Real Housewives" TV series and owner of several restaurants and nightclubs in multiple states admitted in a North Carolina federal court to failing to pay over $2.5 million in employment taxes, the U.S. Department of Justice said.
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July 03, 2024
IRS Warns Of Scam Tied To Clean Energy Tax Credit Sales
Individuals should be wary of a scam in which tax return preparers improperly steer them to claim purchased clean energy tax credits to offset income tax from wages, retirement account withdrawals and other sources, the Internal Revenue Service warned Wednesday.
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July 03, 2024
Fox Rothschild Hires Pryor Cashman Nonprofit Leads
Fox Rothschild LLP announced Wednesday the hiring of two Pryor Cashman LLP partners for its corporate department in New York.
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July 03, 2024
IRS Reveals Final Regs For Medicare Drug Negotiation Tax
The Internal Revenue Service finalized regulations Wednesday that govern the quarterly reporting of a new excise tax that pharmaceutical companies, suppliers and importers must pay when they do not negotiate with Medicare over drug prices.
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July 03, 2024
Federal Tax Policy To Watch In The 2nd Half Of 2024
Congressional lawmakers are grappling with the looming 2025 expiration of the 2017 GOP tax overhaul, a situation made more difficult by the coming elections in November that could define what, if any, tax legislation is eventually signed into law this year. Here, Law360 examines federal tax policy to watch in the second half of 2024.
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July 02, 2024
Chevron's Fall Places State Tax Rules Under Microscope
State tax regulations could face increased judicial scrutiny in light of the U.S. Supreme Court's decision to jettison the decades-old Chevron deference doctrine, which instructed courts to defer to federal agencies' interpretations of ambiguous laws.
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July 02, 2024
IRS Details Accounting Change For Worthless Debt
Regulated financial companies or members of regulated financial groups can automatically get the consent of the Internal Revenue Service to change their accounting methods to the allowance charge-off method for debt instruments presumed worthless, the agency said in a revenue procedure Tuesday.
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July 02, 2024
NJ Couple Ordered To Pay $2.5M In FBAR Penalties
A New Jersey couple were ordered to pay $2.5 million in penalties and interest for failing to report their foreign bank accounts in Switzerland, according to court documents.
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July 02, 2024
8th Circ. Won't Revive IRS Fraud Docs FOIA Row
The Eighth Circuit affirmed a ruling that prevents public disclosure of the IRS' methods for verifying callers' identities, rejecting on Tuesday a retired Harvard professor's argument that the documents detailing the methods failed to qualify for an exemption under the Freedom of Information Act.
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July 02, 2024
Man Warned Against 'Tax Protester Rhetoric' In Failed Case
The U.S. Tax Court cautioned a New Jersey man Tuesday against using "tax protester rhetoric" in future disputes while rejecting his challenge to the IRS' determination that he failed to claim income and improperly claimed deductions, dismissing his arguments as frivolous.
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July 02, 2024
Eaton Needs To Cough Up Docs In IRS Probe, US Says
The U.S. government urged an Ohio federal judge to order power management multinational Eaton to produce records on certain European employees in response to an IRS investigation, arguing the company's contention the court lacks jurisdiction is "pure sophistry."
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July 02, 2024
Justices Revive Tax Tipster's Case, Citing Chevron Ruling
The U.S. Supreme Court vacated and remanded on Tuesday a decision denying a whistleblower award to a tipster who reported an improper $60 million tax deduction to the IRS, saying the D.C. Circuit should reconsider its decision following the high court's ruling that overturned the Chevron doctrine.
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July 02, 2024
Top Federal Tax Cases Of 2024: Midyear Report
In the first half of the year, the U.S. Supreme Court torpedoed the Chevron doctrine of judicial deference to federal agencies and affirmed the denial of a tax refund to a business owner's estate related to a life insurance payout, while the U.S. Tax Court reversed itself regarding a rule for conservation easements. Here, Law360 reviews federal court decisions from the past six months that tax attorneys should know.
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July 01, 2024
High Court's 1-2 Punch Sets Up Long-Standing Regs For KO
By ending its term with a stinging combination against federal agencies, the U.S. Supreme Court's conservative bloc left behind a bruised bureaucracy and a regulatory system that's now vulnerable to a barrage of incoming attacks.
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July 01, 2024
IRS Faces Rulemaking Pressure Following Chevron's Demise
The Internal Revenue Service will likely face more pressure to develop tax regulations that are more firmly grounded in the law and tailored to ensure certainty for individuals, businesses and other organizations after the U.S. Supreme Court's landmark decision to overturn the decades-old Chevron doctrine.
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July 01, 2024
Feds Push To Keep IRS Agents Out Of Hunter Biden Tax Case
Two Internal Revenue Service whistleblowers who Hunter Biden said wrongfully disclosed his confidential tax information should not be allowed to intervene in his suit against the U.S. government, the government told a D.C. federal court Monday.
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July 01, 2024
Pa. Man Gets 12 Years For $2M COVID-19 Funds Fraud
A Pennsylvania man was sentenced to approximately 12 years in prison following his convictions for bank fraud, aggravated identity theft and unlawful monetary transactions related to theft of federal COVID-19 pandemic relief funds, according to the U.S. Attorney's Office for the Middle District of Pennsylvania.
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July 01, 2024
Womble Bond Adds Int'l Tax Partner In Houston Office
Womble Bond Dickinson has added a partner to its corporate and securities group in Houston who will focus on tax law and cross-border transactions, the firm announced.
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July 01, 2024
Tax Court Again Rules Against Couple On Social Security Pay
A California couple should have included Social Security disability payments in their income on their federal tax return, the U.S. Tax Court said Monday, upholding an Internal Revenue Service determination against the couple in such a case for a second time.
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July 01, 2024
US-Taiwan Biz Groups Push For True Double-Tax Treaty
Top-ranking Senate members should push for the start of consultations on a bilateral tax treaty to avoid double taxation between the U.S. and Taiwan as opposed to measures already included in a stalled larger bill, two groups focused on business relations between the countries said.
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July 01, 2024
Nelson Mullins Adds 9-Attorney Tax Team In Houston
Nelson Mullins Riley & Scarborough LLP announced Monday that five partners and four other tax attorneys have joined its new Houston office from Chamberlain Hrdlicka White Williams & Aughtry, including a former Texas Supreme Court justice.
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July 01, 2024
Longtime IRS Trial Atty Joins Jones Day In NY
An attorney who spent his entire career at the IRS has moved to private practice at Jones Day, the firm said on Monday.
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July 01, 2024
Firm Can't Cast Off $1.5M Tax Levy In Alter Ego Case
A Baltimore law firm can't stop a $1.5 million tax levy that allowed the IRS to freeze its bank account, a Maryland federal judge ruled, saying the firm failed to prove at this point in its suit that one of its clients lacked an interest in the money.
Expert Analysis
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Private Equity Owners Can Remedy Law Firms' Agency Issues
Nonlawyer, private-equity ownership of law firms can benefit shareholders and others vulnerable to governance issues such as disparate interests, and can in turn help resolve agency problems, says Michael Di Gennaro at The Law Practice Exchange.
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Kentucky Tax Talk: Taking Up The Dormant Commerce Clause
Attorneys at Frost Brown examine whether the U.S. Supreme Court is likely to review Foresight Coal Sales v. Kent Chandler to consider whether a Kentucky utility rate law discriminates against interstate commerce, and how the decision may affect dormant commerce clause jurisprudence.
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Prevailing Wage Rules Complicate Inflation Act Tax Incentives
Nicole Elliott and Timothy Taylor at Holland & Knight discuss the intersection between tax and labor newly created by the Inflation Reduction Act, and focus on aspects of recent U.S. Department of Labor and U.S. Department of the Treasury rules that may catch tax-incentive seekers off guard.
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Payroll Tax Evasion Notice Suggests FinCEN's New Focus
The Financial Crimes Enforcement Network’s recent notice advising U.S. financial institutions to report payroll tax evasion and workers' compensation schemes in the construction industry suggests a growing interest in tax enforcement and IRS collaboration, as well as increased scrutiny in the construction sector, say Andrew Weiner and Jay Nanavati at Kostelanetz.
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How Taxpayers Can Prep As Justices Weigh Repatriation Tax
The U.S. Supreme Court might strike down the 2017 federal tax overhaul's corporate repatriation tax in Moore v. U.S., so taxpayers should file protective tax refund claims before the case is decided and repatriate previously taxed earnings that could become entangled in dubious potential Section 965 refunds, say Jenny Austin and Gary Wilcox at Mayer Brown.
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IRS Foreign Tax Credit Pause Is Welcome Course Correction
A recent IRS notice temporarily suspending application of 2022 foreign tax credit regulations provides wanted relief for the many U.S. multinational companies and other taxpayers that otherwise face the risk of significant double taxation in their international operations, say attorneys at Mayer Brown.
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If Justices End Chevron Deference, Auer Could Be Next Target
If the U.S. Supreme Court decides next term to overrule its Chevron v. NRDC decision, it may open the door for a similar review of the Auer deference — the principle that a government agency can interpret, through application, ambiguous agency regulations, says Sohan Dasgupta at Taft Stettinius.
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Tax Court Ruling Provides Helpful Profits Interest Guidance
A recent U.S. Tax Court decision holding that a partnership may exclude interests in a company that it indirectly received sheds light on related IRS guidance, including the proper valuation method for such interests, though the court's application of the method to the facts of this case appears flawed, say attorneys at Kramer Levin.
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Mallory Ruling Doesn't Undermine NC Sales Tax Holding
Contrary to the conclusion reached in a recent Law360 guest article, the U.S. Supreme Court’s recent Mallory ruling shouldn't be read as implicitly repudiating the North Carolina Supreme Court’s sales tax ruling in Quad Graphics v. North Carolina Department of Revenue — the U.S. Supreme Court could have rejected Quad by directly overturning it, says Jonathan Entin at Case Western Reserve.
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IRS Criminal Probe Spells Uncertainty For Malta Pension Plans
The IRS’ recent scrutiny of Malta pension plan arrangements — and its unusual issuance of criminal administrative summonses — confirms that it views many of these plans as illegal tax evasion schemes, and the road ahead will not be smooth and steady for anyone involved, say attorneys at Kostelanetz.
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IRS Announcement Will Aid Cos. In Buyback Tax Planning
Recent IRS transitional guidance regarding current requirements for reporting and payment of the stock repurchase excise tax will help corporate taxpayers make decisions about records retention and establishing reserves for future tax payments, say Xenia Garofalo and Kyle Colonna at Eversheds Sutherland.
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Mallory Opinion Implicitly Overturned NC Sales Tax Ruling
The U.S. Supreme Court recently declined to review Quad Graphics v. North Carolina Department of Revenue, but importantly kicked the legs from under Quad's outcome a week later, stating in its Mallory decision that the high court has the prerogative to overrule its own decisions, says Richard Pomp at the University of Connecticut.
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How NIL Collectives Could Be Tax-Exempt After IRS Curveball
Since the Internal Revenue Service recently announced that numerous collectives creating paid name, image and likeness deals for collegiate student-athletes do not qualify for tax exemption, for-profit entities and alternative collective structures with incidental student-athlete benefits may be considered to fund NIL ventures, says David Kaufman at Thompson Coburn.