Federal
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October 08, 2024
7 Taxpayer Advocacy Panel Committees To Meet In November
Seven Taxpayer Advocacy Panel committees will meet in November to discuss possible improvements to customer services, the Internal Revenue Service said Tuesday.
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October 07, 2024
Justices Won't Hear Man's FBAR Constitutionality Challenge
The U.S. Supreme Court let stand Monday a Seventh Circuit decision dismissing a man's challenge to the constitutionality of the Bank Secrecy Act's requirement to report his foreign bank accounts, effectively ending the man's claim that the filings were an invasion of privacy.
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October 07, 2024
Jury Finds Professor Hid Foreign Bank Accounts
An 86-year-old former college professor faces more than $500,000 plus interest in penalties after a jury found that he had deliberately failed to report his foreign bank accounts in Switzerland and Turkey, according to documents filed in a California federal court.
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October 07, 2024
Treasury Proposes Exempting Tribal Cos. From Income Tax
Tribal-owned businesses would not be subject to federal income tax under proposed regulations released Monday by the U.S. Department of the Treasury, a move that would also allow such entities to be eligible to receive direct cash payments in lieu of clean energy tax credits.
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October 07, 2024
Henderson Franklin Adds Tax Pro To Florida Offices
A tax attorney who formerly practiced at Stradling Yocca Carlson & Rauth PC has joined Henderson Franklin Starnes & Holt PA's business and tax planning department and will work from the firm's Florida offices in Fort Myers and Naples.
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October 07, 2024
Man Who Faced Espionage Case Gets Probation Over Taxes
A Chinese engineer initially accused of illegally exporting documents on military aircraft to China was given probation and fined for failing to report about $1.4 million in business income by a Texas federal court after the government dropped its export charges.
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October 07, 2024
11th Circ. Balks At Ex-Braves' $47M Easement Case
Former Atlanta Braves players John Smoltz and Ryan Klesko, challenging a U.S. Tax Court ruling that slashed the value of a conservation easement deduction by 90%, won't have their appeal heard by the Eleventh Circuit after the court said Monday the duo had jumped the gun on challenging the decision before it was made final.
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October 07, 2024
Mich. Couple Owe $3.3M Tax Debt, US Says
A Michigan federal court should order the sale of three properties held by a real estate company to satisfy the roughly $3.3 million tax debt of a couple who are the company's nominee owners, the U.S. government said in a complaint Monday.
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October 07, 2024
IRS Finalizes Conservation Easement Reporting Rules
The IRS released final regulations Monday that impose additional reporting requirements under the threat of penalty for partnerships that abuse a conservation easement tax deduction after the agency suffered major losses in court battles that invalidated the original 2017 rules for violating administrative law.
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October 07, 2024
DC Circ. Skeptical Of Tax Tipster's Whistleblower Award Bid
D.C. Circuit judges seemed skeptical Monday of a tax tipster's claim that the U.S. Tax Court had jurisdiction over his case seeking to overturn the IRS' denial of a whistleblower award, saying during oral arguments that the agency had found his tips unproductive early on.
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October 07, 2024
Justices Won't Review Contractor's $1.3M R&D Credit Suit
The U.S. Supreme Court let stand Monday a Fifth Circuit decision denying a construction company's shareholders a six-figure tax refund for the company's $1.3 million research credit claim, denying a petition.
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October 07, 2024
TCJA Extension, Biz Tax Cut To Reward Top 5%, Report Says
Former President Donald Trump's planned extension of the 2017 tax cuts and lowering of corporate rates contribute most among his platform to lowering taxes for the wealthiest 5% and hiking them for everyone else, the left-leaning Institute on Taxation and Economic Policy said Monday in a report.
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October 04, 2024
Defunct Yoga Studios' Founder Cops To Tax Evasion
The founder of a defunct chain of prominent and lucrative yoga studios who was accused of hiding $1.6 million in income from the Internal Revenue Service pled guilty to tax evasion, New York federal prosecutors said Friday.
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October 04, 2024
DC Circ. Won't Reconsider Whistleblower's $690M Claim
The D.C. Circuit on Friday rejected a whistleblower's request that it rehear a ruling upholding the denial of up to $690 million, or 30%, of the $2.3 billion collected in an Internal Revenue Service offshore voluntary disclosure program.
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October 04, 2024
Fed. Circ. Revives HR Co.'s $1.6M Tax Penalty Refund Bid
A human resources company that sought $1.6 million in tax penalty refunds should not have been rejected for its failure to attach power-of-attorney forms to its requests, the Federal Circuit said Friday in vacating a decision by the U.S. Court of Federal Claims.
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October 04, 2024
Promise Of OECD's Payments Tax Treaty Called Into Question
The OECD-designed tool to provide developing countries with better means to apply a minimum tax on income sent from their jurisdictions to low-taxed entities within a corporate group is inadequate to address those countries' revenue needs, tax policy organizations said.
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October 04, 2024
Former NJ Doctor Owes $4.8M In FBAR Penalties, Court Told
A former physician in New Jersey faces a tax bill of almost $5 million for failing to report 19 bank accounts he opened at Indian banks, the government told a federal court.
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October 04, 2024
IRS Probes Atty Over Promotion Of Deferred Law Firm Fees
The Internal Revenue Service is investigating a lawyer it suspects of promoting a scheme to illegally shield attorneys from taxes on legal fees, according to an Ohio federal court petition seeking to enforce summonses for documents in the case.
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October 04, 2024
Justices Accept Ex-Chicago Alderman's False Statement Case
The U.S. Supreme Court said Friday that it would review the conviction of an ex-Burke Warren MacKay & Serritella PC attorney and former Chicago alderman under a federal statute that prohibits making false statements to influence certain financial institutions.
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October 04, 2024
Taxation With Representation: Gibson Dunn, Weil, Simpson
In this week's Taxation with Representation, DirectTV buys EchoStar's video business for $10 billion, Marsh McLennan inks a $7.75 billion deal for McGriff Insurance, and PepsiCo closes a $1.2 billion deal to purchase Siete Foods.
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October 04, 2024
Weekly Internal Revenue Bulletin
The Internal Revenue Service's weekly bulletin, issued Friday, included proposed regulations that would define which electric vehicle charging ports and other similar infrastructure that taxpayers can build in underserved communities to qualify for a tax credit.
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October 03, 2024
12 Lawyers Who Are The Future Of The Supreme Court Bar
One attorney hasn't lost a single U.S. Supreme Court case she's argued, or even a single justice's vote. One attorney is perhaps "the preeminent SCOTUS advocate." And one may soon become U.S. solicitor general, despite acknowledging there are "judges out there who don't like me." All three are among a dozen lawyers in the vanguard of the Supreme Court bar's next generation, poised to follow in the footsteps of the bar's current icons.
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October 03, 2024
US Partnership Excluded From Tax Treaty, Irish Court Says
A Delaware corporation with three Irish subsidiaries must pay Irish taxes on distributions to its U.S. partners because a U.S.-Ireland tax treaty designed to prevent double taxation does not apply, the Irish High Court ruled.
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October 03, 2024
Assisted Living Owner Can't Deduct Losses, Tax Court Says
The owner of an assisted living company may not deduct passive losses for a group home he renovated because he spent too few hours working on repairs to qualify as a real estate professional, the U.S. Tax Court ruled Thursday.
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October 03, 2024
TIGTA Says $12.9B In Early Distributions Missing Added Tax
Roughly 2.8 million taxpayers in 2021 received early retirement distributions totaling $12.9 billion but did not pay the additional 10% tax or file for an exception, the Treasury Inspector General for Tax Administration said Thursday.
Expert Analysis
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How Firms Can Ensure Associate Gender Parity Lasts
Among associates, women now outnumber men for the first time, but progress toward gender equality at the top of the legal profession remains glacially slow, and firms must implement time-tested solutions to ensure associates’ gender parity lasts throughout their careers, say Kelly Culhane and Nicole Joseph at Culhane Meadows.
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A Proposal For Fairer, More Efficient Innocent Spouse Relief
Adding a simple election to the current regulatory framework for innocent spouse claims would benefit both taxpayers and the Internal Revenue Service by alleviating the undue burdens placed on those the program was intended to help and improving agency collections in such cases, says Laurie Kazenoff at Kazenoff Tax.
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7 Common Myths About Lateral Partner Moves
As lateral recruiting remains a key factor for law firm growth, partners considering a lateral move should be aware of a few commonly held myths — some of which contain a kernel of truth, and some of which are flat out wrong, says Dave Maurer at Major Lindsey.
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Proposed Hydrogen Tax Credit Regs May Be Legally Flawed
While the recently proposed regulations for the new clean hydrogen production tax credit have been lauded by some in the environmental community, it is unclear whether they are sufficiently grounded in law, result from valid rulemaking processes, or accord with other administrative law principles, say Hunter Johnston and Steven Dixon at Steptoe.
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Navigating ACA Reporting Nuances As Deadlines Loom
Stephanie Lowe at Liebert Cassidy walks employers through need-to-know elements of Affordable Care Act reporting, including two quickly approaching deadlines, the updated affordability threshold, strategies for choosing an affordability safe harbor, and common coding pitfalls.
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6 Pointers For Attys To Build Trust, Credibility On Social Media
In an era of information overload, attorneys can use social media strategically — from making infographics to leveraging targeted advertising — to cut through the noise and establish a reputation among current and potential clients, says Marly Broudie at SocialEyes Communications.
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Why Biz Groups Disagree On Ending Chevron Deference
Two amicus briefs filed in advance of last month's U.S. Supreme Court oral arguments in Loper Bright Enterprises v. Raimondo highlight contrasting views on whether the doctrine of Chevron deference promotes or undermines the stable regulatory environment that businesses require, say Wyatt Kendall and Sydney Brogden at Morris Manning.
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US-Chile Tax Treaty May Encourage Cross-Border Investment
Provisions in the recently effective U.S.-Chile bilateral income tax treaty should encourage business between the two countries, as they reduce U.S. withholding tax on investment income for Chilean taxpayers, exempt certain U.S. taxpayers from Chilean capital gains tax, and clarify U.S. foreign tax credit rules, say attorneys at Kramer Levin.
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A Look Ahead For The Electric Vehicle Charging Industry
This will likely be an eventful year for the electric vehicle market as government efforts to accelerate their adoption inevitably clash with backlash from supporters of the petroleum industry, say Rue Phillips at SkillFusion and Enid Joffe at Green Paradigm Consulting.
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A Post-Mortem Analysis Of Stroock's Demise
After the dissolution of 147-year-old firm Stroock late last year shook up the legal world, a post-mortem analysis of the data reveals a long list of warning signs preceding the firm’s collapse — and provides some insight into how other firms might avoid the same disastrous fate, says Craig Savitzky at Leopard Solutions.
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SG's Office Is Case Study To Help Close Legal Gender Gap
As women continue to be underrepresented in the upper echelons of the legal profession, law firms could learn from the example set by the Office of the Solicitor General, where culture and workplace policies have helped foster greater gender equality, say attorneys at Ocean Tomo.
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Planning A Defense As IRS Kicks Off Sports Losses Campaign
Sports team owners and partnerships face potential examination under the Internal Revenue Service’s recently announced sports industry losses campaign, and should be preparing to explain what drove their reported losses and assembling documentation to support their tax return positions and accounting methods, say Sheri Dillon and Jennifer Breen at Morgan Lewis.
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What New Calif. Strike Force Means For White Collar Crimes
The recently announced Central District of California strike force targeting complex corporate and securities fraud — following the Northern District of California's model — combines experienced prosecutorial leadership and partnerships with federal agencies like the IRS and FBI, and could result in an uptick in the number of cases and speed of proceedings, say attorneys at MoFo.