Federal
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July 29, 2024
Utah Biz Groups Latest To Challenge Corp. Disclosure Law
Several small-business associations in Utah became the latest group to challenge the Corporate Transparency Act's disclosure requirements, telling a federal court Monday the statute violates several constitutional provisions, including the guarantee of due process.
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July 29, 2024
Immigrants Paid $96.7B In Taxes In 2022, ITEP Study Says
Unauthorized immigrants paid $96.7 billion in federal, state, and local taxes in 2022 but received few benefits in return, according to a new study released Monday, whose authors said granting such taxpayers work authorization would boost tax revenue and economic activity.
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July 29, 2024
Sites Should Pay Sport Fishing, Archery Import Tax, GAO Says
Congress should make U.S. online marketplaces responsible for any sport fishing and archery excise taxes owed on consumer import sales they're involved with, the Government Accountability Office said in a report released Monday.
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July 29, 2024
Most IRS Employees Filed, Paid Taxes, Watchdog Says
Most IRS employees filed and paid their taxes, the Treasury Inspector General for Tax Administration said in an audit report released Monday that found 95% of agency and contractor employees were tax compliant.
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July 29, 2024
Tax Court Affirms Nix Of Biz Owner's Condo Deductions
An engineering firm owner from Nebraska is not entitled to deduct expenses for renting and furnishing a condo because he couldn't prove it was used for business, the U.S. Tax Court ruled Monday in sustaining more than $500,000 in taxes and penalties against him for 2012 through 2014.
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July 29, 2024
BankUnited's $40M Tax Refund Claim Too Late, Court Told
BankUnited is not owed a $39.8 million tax refund stemming from its acquisition of a failed bank, the government told a Florida federal court, saying the statute of limitations had expired for the company to receive refunds for 2009, 2010 and 2011.
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July 29, 2024
Hunter Biden Attys Say They Didn't Mislead Judge In Tax Case
Hunter Biden's attorneys told a Los Angeles federal judge that while several statements in their motion to dismiss tax charges against the president's son were worded "perhaps inartfully," they never intended to mislead the court in a way that would merit sanctions.
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July 29, 2024
Clean Energy Tax Credit Sales Could Hit $25B, Report Says
Total sales of clean energy tax credits could reach as high as $20 billion to $25 billion this year, signaling a flourishing marketplace for credit sales authorized by the 2022 climate law, according to a midyear report released Monday by a climate tech startup firm.
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July 29, 2024
Co.'s $1.7M Penalty Bill Was Due To IRS Errors, Court Told
The Internal Revenue Service didn't follow its own rules when processing a Texas company's employee retention credit claims and therefore shouldn't have found liability for over $1.7 million in penalties, interest and fees, the company told a federal court.
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July 29, 2024
'Survivor' Winner Says He's Vulnerable In $3M Tax Battle
The winner of the first "Survivor" television season told a Rhode Island federal court Monday that the government was unfairly painting him as flouting nearly $3.3 million in federal tax liabilities stemming from his $1 million cash prize, saying he was "ill-equipped to battle prosecutors."
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July 26, 2024
Biz Groups Call Corp. Transparency Act Unconstitutional
The U.S. government has failed to show how the Corporate Transparency Act meets narrow exceptions to the Fourth Amendment's search warrant requirements, a group of small businesses told a Michigan federal court Friday in contending that the statute is unconstitutional.
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July 26, 2024
Bipartisan House Bill Would Extend Student Loan Tax Aid
An allowance included in coronavirus aid legislation in 2020 to temporarily allow an employer to reimburse an employee for up to $5,250 in 2020 student loan payments would be made permanent under legislation introduced by a bipartisan team in the House of Representatives.
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July 26, 2024
Denmark Says Pension Plans Misread Law In $2B Fraud Case
U.S. pension plans accused by Denmark's tax agency of participating in a $2.1 billion fraud scheme involving withholding tax refunds are misconstruing Danish law as it applies to the ownership of shares, the agency told a New York federal court.
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July 26, 2024
Two Admit Trying To Bribe IRS Official On China's Behalf
Two people admitted to secretly acting on behalf of the Chinese government and bribing an undercover agent in connection with a scheme to revoke the tax-exempt status of U.S. participants in a spiritual practice banned in China, according to New York federal court filings.
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July 26, 2024
Uber Accused Of Illegally Charging Tax On Delivery Fees
Uber illegally collects sales tax on food delivery fees in Florida, a customer claimed in a proposed class action removed to federal court, saying the company cannot charge the tax if customers have the option of picking up the order themselves.
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July 26, 2024
Taxation With Representation: Wachtell, Polsinelli, Kirkland
In this week's Taxation With Representation, T-Mobile partners with KKR to acquire Metronet, Exclusive Networks gets a takeover offer, KKR buys Instructure Holdings Inc., and Bally's Corp. merges with The Queen Casino & Entertainment Inc.
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July 26, 2024
Weekly Internal Revenue Bulletin
The Internal Revenue Service's weekly bulletin, issued Friday, included reporting requirements for brokers of digital assets such as cryptocurrency and nonfungible tokens.
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July 25, 2024
Global Tax Revamp Continues To Progress, OECD Tells G20
Implementation of the Pillar Two minimum tax portion of the OECD's international plan to address tax base erosion and profit shifting is well underway, while an agreement is close on the Pillar One taxing rights overhaul, the organization told the Group of 20 nations Thursday.
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July 25, 2024
Global Tax Police Unit Probes More Than 30 Cybercrime Cases
The Joint Chiefs of Global Tax Enforcement, an intergovernmental tax enforcement group, is investigating more than 30 active cybercrime cases tied to financial and tax criminal activities all over the world, the group announced Thursday in its first report.
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July 25, 2024
Teacher Not Entitled To Business Deductions, Tax Court Says
A teacher who told the U.S. Tax Court that she had self-published six books and was passionate about conducting missing persons research was denied business deductions for the activities Thursday after the court determined she wasn't primarily trying to turn a profit.
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July 25, 2024
Wyden Seeks Swiss Bank Info On Indicted Defense Contractor
Senate Finance Committee Chairman Ron Wyden asked Swiss bank UBS in a letter published Thursday for information about a former U.S. defense contractor who the Department of Justice says avoided taxes on more than $350 million in income.
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July 25, 2024
Senate Confirms First Tax Court Judge Since 2020
The U.S. Senate on Thursday confirmed a U.S. Tax Court judge for the first time since 2020.
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July 25, 2024
Clark Hill Adds Tax And Estate Atty From Plunk Smith In Texas
A former Plunk Smith PLLC senior associate jumped to Clark Hill in Collin County, Texas, to serve as a member in the tax and estate planning practice, the firm announced Thursday.
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July 25, 2024
IRS, Zaxby's Co-Founder To Settle $43M Easement Suit
The Internal Revenue Service agreed to settle a $43 million valuation dispute over a conservation easement donated by the co-founder of the Zaxby's restaurant chain and his wife, prompting a Georgia federal court Thursday to cancel next month's anticipated jury trial.
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July 25, 2024
Vanguard Opposes Investors' Cert. Bid In Tax Liability Suit
A group of investors accusing Vanguard of violating its fiduciary duties by triggering a sell-off of assets that left smaller investors with massive tax bills shouldn't be granted class certification, the asset manager told a Pennsylvania federal court.
Senate Confirms Second Tax Court Judge In A Week
The U.S. Senate confirmed its second U.S. Tax Court judge in a week on Monday, voting to approve the nomination of a special trial judge to fill a vacancy on the court.
The Tax Angle: TCJA Prep, IRS Phone Problems
From a look at Democrats' preparation to rewrite the 2017 GOP tax law to the Internal Revenue Service's continuing problems with providing customer service to tax professionals, here's a peek into a reporter's notebook on a few of the week's developing tax stories.
GOP Control Could Muddle Tax Picture For Multinationals
Republican lawmakers and former President Donald Trump could create more confusion for multinationals with their tax and trade policies if they sweep the U.S. elections in November, because they are likely to pursue retaliatory measures in opposition to the OECD's global tax rewrite.
Featured Stories
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The Tax Angle: TCJA Prep, IRS Phone Problems
From a look at Democrats' preparation to rewrite the 2017 GOP tax law to the Internal Revenue Service's continuing problems with providing customer service to tax professionals, here's a peek into a reporter's notebook on a few of the week's developing tax stories.
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GOP Control Could Muddle Tax Picture For Multinationals
Republican lawmakers and former President Donald Trump could create more confusion for multinationals with their tax and trade policies if they sweep the U.S. elections in November, because they are likely to pursue retaliatory measures in opposition to the OECD's global tax rewrite.
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Cannabis Industry Stakeholders Weigh In On Rescheduling
As the period for public comment on the Biden administration's proposal to reclassify marijuana came to a close Monday, anti-legalization activists, marijuana industry advocates and state cannabis regulators each submitted their thoughts on the potential policy shift.
Expert Analysis
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Think Like A Lawyer: Dance The Legal Standard Two-Step
From rookie brief writers to Chief Justice John Roberts, lawyers should master the legal standard two-step — framing the governing standard at the outset, and clarifying why they meet that standard — which has benefits for both the drafter and reader, says Luke Andrews at Poole Huffman.
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After Jarkesy, IRS Must Course-Correct On Captive Insurance
The U.S. Supreme Court’s recent Securities and Exchange Commission v. Jarkesy decision has profound implications for other agencies, including the IRS, which must stop ignoring due process and curtailing congressional intent in its policing of captive insurance arrangements, says Peter Dawson at the 831(b) Institute.
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Lead Like 'Ted Lasso' By Embracing Cognitive Diversity
The Apple TV+ series “Ted Lasso” aptly illustrates how embracing cognitive diversity can be a winning strategy for teams, providing a useful lesson for law firms, which can benefit significantly from fresh, diverse perspectives and collaborative problem-solving, says Paul Manuele at PR Manuele Consulting.
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Class Actions At The Circuit Courts: July Lessons
In this month's review of class action appeals, Mitchell Engel at Shook Hardy considers cases touching on pre- and post-conviction detainment conditions, communications with class representatives, when the American Pipe tolling doctrine stops applying to modified classes, and more.
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Now More Than Ever, Lawyers Must Exhibit Professionalism
As society becomes increasingly fractured and workplace incivility is on the rise, attorneys must champion professionalism and lead by example, demonstrating how lawyers can respectfully disagree without being disagreeable, says Edward Casmere at Norton Rose.
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Reading Between The Lines Of Justices' Moore Ruling
The U.S. Supreme Court's recent Moore v. U.S. decision, that the Internal Revenue Code Section 965 did not violate the 16th Amendment, was narrowly tailored to minimally disrupt existing tax regimes, but the justices' various opinions leave the door open to future tax challenges and provide clues for what the battles may look like, say Caroline Ngo and Le Chen at McDermott.
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A Midyear Forecast: Tailwinds Expected For Atty Hourly Rates
Hourly rates for partners, associates and support staff continued to rise in the first half of this year, and this growth shows no signs of slowing for the rest of 2024 and into next year, driven in part by the return of mergers and acquisitions and the widespread adoption of artificial intelligence, says Chuck Chandler at Valeo Partners.
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States Should Loosen Law Firm Ownership Restrictions
Despite growing buzz, normalized nonlawyer ownership of law firms is a distant prospect, so the legal community should focus first on liberalizing state restrictions on attorney and firm purchases of practices, which would bolster succession planning and improve access to justice, says Michael Di Gennaro at The Law Practice Exchange.
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After Chevron: Uniform Tax Law Interpretation Not Guaranteed
The loss of Chevron deference will significantly alter the relationship between the IRS, courts and Congress when it comes to tax law, potentially precipitating more transparent rulemaking, but also provoking greater uncertainty due to variability in judicial interpretation, say Michelle Levin and Carneil Wilson at Dentons.
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Texas Ethics Opinion Flags Hazards Of Unauthorized Practice
The Texas Professional Ethics Committee's recently issued proposed opinion finding that in-house counsel providing legal services to the company's clients constitutes the unauthorized practice of law is a valuable clarification given that a UPL violation — a misdemeanor in most states — carries high stakes, say Hilary Gerzhoy and Julienne Pasichow at HWG.
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How High Court Approached Time Limit On Reg Challenges
The U.S. Supreme Court's decision in Corner Post v. Federal Reserve Board effectively gives new entities their own personal statute of limitations to challenge rules and regulations, and Justice Brett Kavanaugh's concurrence may portend the court's view that those entities do not need to be directly regulated, say attorneys at Snell & Wilmer.
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How To Clean Up Your Generative AI-Produced Legal Drafts
As law firms increasingly rely on generative artificial intelligence tools to produce legal text, attorneys should be on guard for the overuse of cohesive devices in initial drafts, and consider a few editing pointers to clean up AI’s repetitive and choppy outputs, says Ivy Grey at WordRake.
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A Tale Of 2 Trump Cases: The Rule Of Law Is A Live Issue
The U.S. Supreme Court’s decision this week in Trump v. U.S., holding that former President Donald Trump has broad immunity from prosecution, undercuts the rule of law, while the former president’s New York hush money conviction vindicates it in eight key ways, says David Postel at Henein Hutchison.