Federal
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July 12, 2024
Payments To Ex-Wife Should Be Deductible, 11th Circ. Told
A Georgia man told the Eleventh Circuit on Friday that his payments to his ex-wife as part of a marital settlement should qualify as alimony and therefore be deductible from his federal income taxes, asking the court to reverse a U.S. Tax Court decision.
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July 12, 2024
Mo. Says IRS 'Stonewalling' On Worker Credit Freeze Records
The Internal Revenue Service violated public records law in failing to release documents related to its decision to stop processing new employee retention credit claims, the state of Missouri said Friday in a complaint that accuses the agency of "stonewalling."
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July 12, 2024
11th Circ. Urged To Grant Deductions In Ruined Records Case
The U.S. Tax Court should have been more generous in granting tax deductions to a Florida couple whose records were destroyed by a hurricane, the couple told the Eleventh Circuit on Friday, saying the lost records were out of their control.
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July 12, 2024
European Tax Policy To Watch In The Second Half Of 2024
Observers of European Union tax policy expect the EU to devote more attention to problems with existing tax legislation in the coming months as the introduction of major policy proposals takes a pause. Specialists also will be watching for progress on EU tax laws that remain stuck, and the bloc is likely to fill roles including tax commissioner. Here, Law360 examines key tax issues to watch for the remaining six months of the year.
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July 12, 2024
Taxation With Representation: Ropes & Gray, Cravath, Latham
In this Week's Taxation with Representation, Paramount Global merges with Skydance Media, Devon Energy acquires Grayson Mill Energy's Williston Basin oil and gas business, Ryan acquires Altus Group Ltd.'s property tax business, and Bain Capital buys Envestnet Inc.
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July 12, 2024
Former City Treasurer Gets 30 Months In $1M Embezzlement
A former city treasurer in Alaska was sentenced to two and a half years in prison after having admitted to tax evasion and fraud in connection with a $1 million embezzlement scheme, according to Alaska federal court documents.
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July 12, 2024
7 Taxpayer Advocacy Panel Committees To Meet In August
Seven of the Taxpayer Advocacy Panel's committees will hold public meetings in August focused on improving customer service at the Internal Revenue Service, the agency announced Friday.
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July 12, 2024
Weekly Internal Revenue Bulletin
The Internal Revenue Service's weekly bulletin, issued Friday, included the reporting and recording obligations associated with the stock buyback excise tax.
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July 11, 2024
3 Defenses The IRS Can Fall Back On After Chevron's Demise
The U.S. Supreme Court's decision to eliminate federal agencies' ability to rely on the 40-year-old Chevron doctrine to defend their interpretations of ambiguous laws will likely trigger more litigation against the IRS. But that doesn't mean the agency is completely defenseless against such suits. Here, Law360 explores three defense options for the IRS following Chevron's demise.
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July 11, 2024
House GOP Urges USTR To Probe Canada Digital Services Tax
The U.S. trade representative should immediately launch an investigation into Canada's recently enacted digital services tax and determine if trade actions are necessary to protect American interests, U.S. House Ways and Means Republicans said in a letter Thursday.
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July 11, 2024
Tax Court Denies Real Estate Loss Deduction To Builder
The U.S. Tax Court said Thursday that it didn't believe a man who claimed to work an extra 48 hours a week beyond his regular full-time job to build a short-term rental property, denying him a $22,000 rental real estate loss deduction reserved for real estate professionals.
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July 11, 2024
ABA Attys Seek To Avoid Reporting Foreign Trust Loans
The American Bar Association's tax, real estate and trust attorneys are seeking to prevent the U.S. Treasury Department from tightening reporting requirements for the exemption of loans from foreign trusts, which are often used by wealthy families and in succession planning, according to a consultation response.
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July 11, 2024
Railroad Benefits Are Taxable, Tax Court Says
A retired railroad worker and his wife must include benefits from the Railroad Retirement Board in their taxable income, having failed to prove that the benefits are nontaxable due to their disabilities, the U.S. Tax Court ruled Thursday.
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July 11, 2024
Ex-Leaders Ask Biden For Int'l Coordination On Billionaire Tax
President Joe Biden should get behind Brazil's proposal for the Group of 20 nations to coordinate a minimum tax on billionaires, nearly 20 former presidents and prime ministers from countries such as Canada, France and South Korea said in an open letter.
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July 11, 2024
IRS Proposes 'Basket Contracts' As Listed Transactions
The Internal Revenue Service proposed rules Thursday that would flag so-called basket option contracts as potentially abusive listed transactions, imposing additional reporting requirements under the threat of penalty for individuals and businesses involved in such arrangements.
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July 11, 2024
Low-Speed EV Maker Sues Treasury Over Blocked Tax Credits
The U.S. Department of the Treasury violated the Administrative Procedure Act when it passed final regulations excluding low-speed vehicles from qualifying for clean vehicle tax credits, a maker of low-speed electric cars told a D.C. federal court.
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July 11, 2024
IRS Crackdown Yields $1B From Millionaires, Treasury Says
The Internal Revenue Service collected more than $1 billion from millionaires with large tax debts through an enforcement initiative against high-income, high-wealth taxpayers who hadn't paid their tax bills, the U.S. Department of the Treasury said Thursday.
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July 10, 2024
Ex-VP Of Fla. Aerospace Co. Sentenced To Prison For Fraud
The former vice president of a Miami-based aerospace company was sentenced to just over a year in federal prison after he pled guilty to fraud-related charges in connection to a scheme that involved embezzling millions of dollars and splitting the proceeds with a co-conspirator.
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July 10, 2024
Engineer Who Faced Export Charges Cops To Tax Counts
A Chinese-born engineer has pled guilty to two counts of filing a false tax return related to allegations that he and his wife omitted gross income from their tax returns between 2015 and 2019, after Texas federal prosecutors initially charged the couple with export violations and fraud.
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July 10, 2024
Tax Court Nominees Vow To Sort Out Post-Chevron Cases
Three nominees for spots on the U.S. Tax Court assured Senate lawmakers Wednesday that they could resolve cases involving federal regulations and congressional intent after the U.S. Supreme Court overturned the Chevron deference doctrine.
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July 10, 2024
OECD Publishes Pillar 2 Technical Reporting Language Draft
The Organization for Economic Cooperation and Development published a draft of technical details required to digitally input and disseminate information required for Pillar Two global minimum tax returns Wednesday.
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July 10, 2024
Americans Overseas Ask for Clarity In Foreign Trust Regs
An advocacy group representing U.S. citizens living abroad urged the U.S. Treasury Department to clarify proposed rules for reporting transactions with foreign trusts, contending that guidance should explain which common pension arrangements are exempt from disclosure obligations.
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July 10, 2024
IRS Says Related Biz Arms Must Each Apply For Fuel Credit
Two related business departments that are both clean fuel producers and that have their own employer identification numbers must each apply on their own for the clean fuel production credit, the Internal Revenue Service said in an FAQ released Wednesday.
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July 10, 2024
Chevron's End Won't Affect Cubs Sale Tax Suit, 7th Circ. Told
An anti-abuse rule the IRS is using to push for taxes on gains from Tribune Media Co.'s sale of the Chicago Cubs is not threatened by the U.S. Supreme Court ruling overturning the Chevron deference doctrine, an attorney for the IRS told the Seventh Circuit on Wednesday.
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July 10, 2024
IRS Issues Electricity Credit Reference Price For Wind
The Internal Revenue Service released a 2024 reference price for determining the availability of the renewable electricity production credit for wind energy facilities in a notice issued Wednesday.
Expert Analysis
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An Informed Guide To Mastering Retirement Plan Forfeitures
When considering how to allocate departing retirement plan participants’ forfeitures, sponsors should consider recently filed lawsuits that allege Employee Retirement Income Security Act violations for using such funds to offset employer contributions, as well as proposed IRS guidance concerning how and when they must be used, says Eric Gregory at Dickinson Wright.
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The Case For Post-Bar Clerk Training Programs At Law Firms
In today's competitive legal hiring market, an intentionally designed training program for law school graduates awaiting bar admission can be an effective way of creating a pipeline of qualified candidates, says Brent Daub at Gilson Daub.
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IRS Proposal May Help Clarify Donor-Advised Fund Excise Tax
Recently proposed regulations provide important clarifications of the Internal Revenue Code's excise tax on donor-advised fund distributions by providing detailed definitions of key terms and addressing some of the open issues related to their operation and administration, say attorneys at Morgan Lewis.
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AI Can Help Lawyers Overcome The Programming Barrier
Legal professionals without programming expertise can use generative artificial intelligence to harness the power of automation and other technology solutions to streamline their work, without the steep learning curve traditionally associated with coding, says George Zalepa at Greenberg Traurig.
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Preparing Law Students For A New, AI-Assisted Legal World
As artificial intelligence rapidly transforms the legal landscape, law schools must integrate technology and curricula that address AI’s innate challenges — from ethics to data security — to help students stay ahead of the curve, say Daniel Garrie at Law & Forensics, Ryan Abbott at JAMS and Karen Silverman at Cantellus Group.
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General Counsel Need Data Literacy To Keep Up With AI
With the rise of accessible and powerful generative artificial intelligence solutions, it is imperative for general counsel to understand the use and application of data for myriad important activities, from evaluating the e-discovery process to monitoring compliance analytics and more, says Colin Levy at Malbek.
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Liability Exposure For Unpaid Payroll Taxes May Surprise You
The Ninth Circuit’s recent decision in Richard W. York v. U.S. offers important lessons for business owners and others who may be responsible for a company's checkbook about how someone else's failure to submit payroll taxes can result in their personal liability, says Douglas Charnas at McGlinchey Stafford.
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Navigating Discovery Of Generative AI Information
As generative artificial intelligence tools become increasingly ubiquitous, companies must make sure to preserve generative AI data when there is reasonable expectation of litigation, and to include transcripts in litigation hold notices, as they may be relevant to discovery requests, say Nick Peterson and Corey Hauser at Wiley.
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Finding Focus: Strategies For Attorneys With ADHD
Given the prevalence of ADHD among attorneys, it is imperative that the legal community gain a better understanding of how ADHD affects well-being, and that resources and strategies exist for attorneys with this disability to manage their symptoms and achieve success, say Casey Dixon at Dixon Life Coaching and Krista Larson at Stinson.
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Unlocking Value In Carve-Out M&A Transactions
Some of the largest mergers and acquisitions in 2023 were carve-out transactions, and despite their unique intricacies and challenges, these transactions offer both buyers and sellers the opportunity to generate outsized returns in an otherwise vigorously competitive landscape, when carefully planned and diligently executed, say Kevin Crews and Rami Totari at Kirkland.
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Attorneys, Law Schools Must Adapt To New Era Of Evidence
Technological advancements mean more direct evidence is being created than ever before, and attorneys as well as law schools must modify their methods to account for new challenges in how this evidence is collected and used to try cases, says Reuben Guttman at Guttman Buschner.
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1st Tax Easement Convictions Will Likely Embolden DOJ, IRS
After recent convictions in the first criminal tax fraud trial over allegedly abusive syndicated conservation easements, the IRS and U.S. Department of Justice will likely pursue other promoters for similar alleged conspiracies — though one acquittal may help attorneys better evaluate their clients' exposure, say Bill Curtis and Lauren DeSantis-Then at Polsinelli.
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Tips For Litigating Against Pro Se Parties In Complex Disputes
Litigating against self-represented parties in complex cases can pose unique challenges for attorneys, but for the most part, it requires the same skills that are useful in other cases — from documenting everything to understanding one’s ethical duties, says Bryan Ketroser at Alto Litigation.