Federal
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November 27, 2024
Attys, Insurance Broker Seek Appeal In $22M Tax Scheme
Two attorneys and an insurance agent plan to appeal to the Fourth Circuit their convictions in a criminal case that accused them of participating in a $22 million tax avoidance scheme, according to Wednesday filings in North Carolina federal court.
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November 27, 2024
Ex-FBI Informant In Biden Case Wants Tax Charges Separate
A former FBI informant accused of making fake criminal accusations against President Joe Biden and his son, Hunter Biden, told a California federal court that new tax evasion charges against him should remain separate because the two cases are unrelated.
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November 27, 2024
GOP Threats To IRS Funds Risk Halting Agency Progress
Republicans will likely seek to cut IRS funding when they take control of the House, Senate and White House next year, threatening to roll back the gains in staffing, enforcement and technology the agency has made since it received a funding boost in 2022.
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November 27, 2024
Co. Seeks To Add 3 Chemicals To Taxable Substances List
The Internal Revenue Service is seeking comments on proposals from a chemical exporter to add three chemicals to the Internal Revenue Code's list of taxable substances, the agency said.
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November 27, 2024
Ga. Tax Preparer Admits To Filing False Returns Netting $3M
A Georgia tax preparer pled guilty to filing fraudulent income tax returns on behalf of her clients that cost the federal government more than $3 million, prosecutors announced.
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November 26, 2024
Ukrainian Man Admits To $25M Staffing, Tax Scheme
A Ukrainian man who was recently extradited to the U.S. to face charges that he helped illegally employ immigrants in Florida hotels pled guilty to tax crimes that prosecutors say caused $25 million in tax losses, according to Florida federal court filings.
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November 26, 2024
Tax-Exempt Benefit Regs Would Give Tribes Overdue Power
Recently proposed regulations on tribal general welfare benefits would grant tribes sole discretion to determine which programs and services are tax-exempt benefits and, if finalized, would fulfill the long-overdue purpose of a 2014 law meant to give them more deference.
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November 26, 2024
Jones Walker Welcomes New Commercial, Tax Atty
Jones Walker LLP has added a corporate partner who practices tax law and negotiates, structures and drafts complex merger and acquisition transactions, financings and related contracts and agreements, the firm said.
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November 26, 2024
Tax Court Gives Education Co. 2nd Shot At Nonprofit Status
The U.S. Tax Court dismissed Tuesday a petition from an education company seeking nonprofit status, granting a joint request from the company and the Internal Revenue Service that will give the company time to improve its application.
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November 26, 2024
Jackson Hewitt Workers Get Final OK On $10.8M Settlement
A federal judge granted final approval to a $10.8 million settlement between former Jackson Hewitt Inc. workers and the tax preparation firm over claims the company's franchisees entered into an anti-competitive no-poach agreement despite the provision being removed from the company's franchise agreements.
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November 26, 2024
Ariz. Reps. Urge Exemption Of State Rebates From Federal Tax
Arizona's one-time state tax rebates issued in 2023 should be exempt from federal taxation, three U.S. House members from the state told House leadership, urging a floor vote on legislation to exclude the income following a federal court decision finding the payments taxable.
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November 26, 2024
IRS Delays $600 Payment Reporting Requirement A Final Time
The Internal Revenue Service will push back its implementation of a law requiring peer-to-peer payment platforms such as Venmo and PayPal to report aggregate payments of $600 or more for one final time, it said Thursday, and the threshold for 2025 will instead be $2,500.
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November 26, 2024
Gov't, US-Saudi Former Pilot Close $1.2M FBAR Suit
A U.S.-Saudi citizen who's been a pilot and luxury airplane consultant settled his $1.2 million dispute with the U.S. government over bank accounts in Switzerland that the IRS said he failed to report.
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November 26, 2024
IRS Confirms Commerce Payments In Chips Tax Credit
Semiconductor development projects that received funding awards from the U.S. Commerce Department's CHIPS incentives program are considered investments that can also take advantage of the advanced manufacturing tax credit, the Internal Revenue Service confirmed Tuesday in guidance.
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November 26, 2024
IRS Adds Eight Tax Court Sessions To Calendar
The Internal Revenue Service announced eight U.S. Tax Court sessions for February and named the calendar administrators for the sessions in notices released Tuesday.
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November 25, 2024
Ex-DOJ Attorney Joins Moore Tax Law Group In Chicago
The Moore Tax Law Group has brought on a former trial attorney for the U.S. Department of Justice, Tax Division, the firm announced.
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November 25, 2024
Calif. Gov. Promises EV Tax Credit If Trump Axes Federal
California Gov. Gavin Newsom on Monday said that he's preparing to save electric vehicle tax credits — at least for residents of his state — if the Trump administration and a Republican Congress eliminate federal ones.
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November 25, 2024
Vanguard, Investors Get Initial OK On $40M Deal In Tax Suit
A Pennsylvania federal judge gave initial approval Monday to a $40 million settlement between Vanguard and investors who claimed the firm breached its fiduciary duty when it triggered a sell-off of assets that left investors with hefty tax bills.
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November 25, 2024
Feds Violated Atty-Client Rules, Tax Evasion Defendant Says
A Brazilian-American businessman accused of using Swiss bank accounts to hide $20 million from the Internal Revenue Service asked a Florida federal court to dismiss all the charges against him, saying federal prosecutors improperly gained access to information protected by attorney-client privilege.
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November 25, 2024
IRS Finalizes Expansion Of Tax Info Disclosures To Census
The Internal Revenue Service published final rules Monday expanding what tax return information can be disclosed to the U.S. Census Bureau.
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November 25, 2024
IRS Corrects Advanced Manufacturing Production Credit Regs
The Internal Revenue Service issued a correction notice Monday concerning final rules for the advanced manufacturing production credit.
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November 25, 2024
Akin Adds EY Tax Expert To DC Team
Akin Gump Strauss Hauer & Feld LLP has hired a former Washington Council Ernst & Young senior manager, who is bringing her tax policy-focused practice to the firm's Washington, D.C., office, according to a Monday announcement.
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November 22, 2024
Trump Taps Hedge Fund Billionaire Bessent To Head Treasury
President-elect Donald Trump on Friday announced that he's selected Scott Bessent, a billionaire hedge fund manager and the founder of Key Square Group, to serve as secretary of the Treasury in his upcoming administration.
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November 22, 2024
IRS Extends Domestic Content Relief For Energy Credits
Nonprofits, tribal governments, public utilities and other tax-exempt groups eligible for a direct cash payment of their clean energy tax credits can get relief from meeting the domestic content requirements tied to those incentives for 2025 and 2026 under IRS guidance released Friday.
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November 22, 2024
The Tax Angle: Tax Prom, 25 Years Of TIGTA
From a look at the Tax Foundation's 87th annual Tax Prom celebration to the Treasury Inspector General for Tax Administration marking 25 years in operation, here's a peek into a reporter's notebook on a few of the week's developing tax stories.
Expert Analysis
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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.
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A Guide To Long-Term, Part-Time Employee Determinations
With final regulations under the Secure Act requiring 401(k) retirement benefits for long-term, part-time employees expected soon, Amy Sheridan and David Guadagnoli at Sullivan & Worcester look at how the proposed rules would shift the risk-reward calculus on excluding categories of employees, and what plan sponsors would need to consider when designing retirement plans.
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After Chevron: Delegation Of Authority And Tax Regulators
The U.S. Department of the Treasury and the Internal Revenue Service will face higher standards following Loper Bright’s finding that courts should determine whether agency rules meet the best possible interpretation of the tax code, as well as the scope of the authority delegated by Congress, says Edward Froelich at McDermott.
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Lawyers Can Take Action To Honor The Voting Rights Act
As the Voting Rights Act reaches its 59th anniversary Tuesday, it must urgently be reinforced against recent efforts to dismantle voter protections, and lawyers can pitch in immediately by volunteering and taking on pro bono work to directly help safeguard the right to vote, says Anna Chu at We The Action.