Federal
-
June 27, 2024
Ex-Skadden Tax Head And M&A Pro Joins Freshfields In NY
Freshfields Bruckhaus Deringer LLP has added the former head of the tax practice at Skadden Arps Slate Meagher & Flom LLP as a partner this week, who brings to the role experience in deals like 21st Century Fox's $71 billion acquisition by Disney and the merger of T-Mobile and Sprint.
-
June 27, 2024
TIGTA Points To Areas Of Improvement For Direct File
A phase of the Direct File pilot program that allowed eligible IRS employees to get the first crack at the online tax filing service had issues with accuracy of its tax returns and lacked a Spanish translation, the Treasury Inspector General for Tax Administration said Thursday.
-
June 27, 2024
New FATCA Deal Requires US Banks To Share Info With Swiss
The United States and Switzerland signed a Foreign Account Tax Compliance Act agreement that will require U.S. banks to share financial account information on a bilateral basis, Switzerland's Federal Department of Finance announced Thursday.
-
June 27, 2024
IRS Delays Tax Deadlines In Miss. After April Storms
Certain Mississippi taxpayers affected by storms, tornadoes and flooding that hit the state starting April 8 now have until Nov. 1 to file individual and business tax returns and make payments, the Internal Revenue Service said Thursday.
-
June 26, 2024
Repatriation Tax Ruling May Sway State Wealth Tax Debates
The U.S. Supreme Court's upholding of the federal repatriation tax could indirectly affect state tax policy discussions, including by influencing consideration of wealth taxes and encouraging states to keep potential due process issues in mind when enacting tax legislation.
-
June 26, 2024
Tax Court Says Couple Wrongly Claimed Unsigned Checks
A Minnesota eye doctor and his wife overstated their income on their joint tax return, as they declared pay that they never actually received from their corporation in the form of unsigned checks, the U.S. Tax Court said in an opinion released Wednesday.
-
June 26, 2024
IRS To Make Syndicated Easement Settlement Offers
The Internal Revenue Service will send settlement offers next month to some taxpayers who participated in syndicated conservation easement deals that the agency is auditing, it announced Wednesday.
-
June 26, 2024
Advice Panel Calls For Regulating Noncredentialed Preparers
Congress should authorize the Internal Revenue Service to regulate noncredentialed tax preparers to protect taxpayers and the tax system from erroneous returns, the agency's Electronic Tax Administration Advisory Committee said in its annual report to lawmakers Wednesday.
-
June 26, 2024
9th Circ. Revives $491K Refund Error Recovery Suit
The Ninth Circuit resurrected Wednesday an IRS suit that seeks to recover more than $491,000 from a taxpayer to whom the agency erroneously mailed a refund, reversing a lower court decision that dismissed the case for falling outside the two-year statute of limitations.
-
June 26, 2024
5th Circ. Affirms Block On ARPA Tax Rule For Texas, La., Miss.
A Texas federal judge properly ruled that the federal government could not enforce a provision in the American Rescue Plan Act that prohibits states from using pandemic aid to offset tax cuts, the Fifth Circuit said.
-
June 26, 2024
Man Denied Tax Breaks For Kids Who Didn't Live With Him
A Minnesotan does not qualify for tax exemptions or credits related to his three children because they did not live with him for at least half of the relevant tax year, the U.S. Tax Court said in an opinion released Wednesday.
-
June 26, 2024
Device Maker To Fork Over $3.5M In Tax Dodge Suit
A man who manufactured a purported health device will pay the IRS nearly $3.5 million under an agreement endorsed by a Florida federal court after the agency claimed he hadn't filed a tax return since 1999.
-
June 26, 2024
IRS Whistleblower Info Uncovered $338M In 2023, Report Says
The IRS more than doubled the amount of whistleblower awards it paid out in fiscal year 2023 compared with the prior year, distributing $88.8 million in awards attributable to information that led to the collection of $338 million, the agency said in a report.
-
June 26, 2024
Fed. Circ. Denies Contractor's $37M Tax Reimbursement Bid
A U.S. State Department armed security contractor is not entitled to $37 million in reimbursement tied to tax payments to the Afghan government because the contractor's parent company, not the company itself, incurred the costs associated with the payments, the Federal Circuit said Wednesday.
-
June 26, 2024
Medical Device Co. To Pay $935K Atty Fees In Tax Fraud Suit
A medical equipment company's leaders will pay $935,000 in attorney fees to investors' counsel after mediating a settlement in a proposed class action alleging the company breached fiduciary duty in failing to disclose its former CEO's involvement in a tax fraud dispute with Denmark.
-
June 26, 2024
IRS Watchdog Urges Fix For ID Theft Victim Case Delays
Delays in resolving identity theft cases by an IRS victim assistance unit are getting worse and the agency must quickly fix the problem, National Taxpayer Advocate Erin Collins said in a report issued Wednesday.
-
June 25, 2024
US Needs To Broaden Tax Base, Increase Rates, OECD Says
The United States' debt-to-gross-domestic-product ratio is the highest it's been since World War II, necessitating a wide range of tax changes to both expand the tax base and increase rates to alleviate fiscal pressures, the OECD said Tuesday.
-
June 25, 2024
Tax Court Says Missed Deadline Doesn't Sink Its Jurisdiction
A jewelry company's one-day-late filing of a petition for reconsideration of an employment tax determination does not deprive the U.S. Tax Court of jurisdiction in the case, the court said Tuesday, denying the IRS' attempt to get the case tossed.
-
June 25, 2024
Pension Plans Can't Escape $2B Danish Tax Fraud Dispute
Two U.S. pension plans made an "extremely strained" contention that Denmark's tax administrator waited too long to accuse them of participating in a $2.1 billion fraud scheme, a New York federal judge said in declining to toss the case.
-
June 25, 2024
Ex-DOJ Atty Among New Trio At Chamberlain Hrdlicka
Chamberlain Hrdlicka White Williams & Aughtry has strengthened its tax controversy and litigation practice with the addition of three attorneys in Atlanta, including a former senior trial attorney in the Tax Division of the U.S. Department of Justice for more than three decades.
-
June 25, 2024
IRS Apologizes To Hedge Fund Founder Over Leaked Tax Data
The IRS issued an extraordinary public apology Tuesday to hedge fund founder and billionaire Ken Griffin for the leak of his and others' tax information to the media by a former contractor who admitted to stealing the returns of thousands of wealthy individuals, including former President Donald Trump.
-
June 25, 2024
House Bill Seeks 95% Windfall Tax On Excessive Profits
Large corporations would face a 95% windfall tax on excessive profits under legislation reintroduced in the House.
-
June 25, 2024
Tax Pros Worry Credit Sales Could Raise Substance Issues
Tax professionals are concerned that deals involving a new way to sell clean energy tax credits for cash could face IRS scrutiny after the agency scored a high-profile win over a telecommunications company by deploying an aggressive interpretation of what's known as the economic substance doctrine.
-
June 25, 2024
J&J Counsel Urges OECD To Ease Burdens Of Global Min. Tax
Counsel for Johnson & Johnson on Tuesday urged the OECD and government officials working on the Pillar Two global minimum corporate tax to consider more permanent safe harbor provisions to reduce the compliance burdens associated with the levy.
-
June 25, 2024
Global Tax Overhaul Won't Squash Competition, US Rep. Says
The global tax overhaul designed by the Organization for Economic Cooperation and Development won't eliminate countries competing for companies' investments, a U.S. House lawmaker said Tuesday.
Expert Analysis
-
5 Ways Taxpayers Can Spot Employee Retention Credit Scams
On Monday, the Internal Revenue Service added the employee retention credit to its list of prevalent tax scams because of ERC promoters seeking to take advantage of employers, but taxpayers who may qualify for the credit can protect themselves by recognizing certain red flags, say attorneys at Potomac Law and Stout Risius.
-
Could The Supreme Court Legalize Marijuana Federally?
Amid slow legislative and executive movement on cannabis reform, it’s worth examining whether the U.S. Supreme Court could provide a pathway to federal cannabis legalization — a decision that would surely require strange bedfellows given the court’s current ideological makeup, say Whitt Steineker and Mason Kruse at Bradley Arant.
-
Tax Pitfalls To Avoid In Employment Litigation Settlements
Downsizing companies should keep certain questions in mind when settling claims with departing employees to ensure they understand associated tax withholding and reporting obligations, and avoid costly interest and penalties down the road, says Matthew Meltzer at Flaster Greenberg.
-
Key Considerations For Taxpayers Deducting Crypto Losses
While a recent Internal Revenue Service memorandum is helpful in providing insight into how the agency is considering guidance related to cryptocurrency, questions remain with respect to whether a taxpayer can claim a tax deduction for cryptocurrency losses, say attorneys at McDermott.
-
Justices' MoneyGram Opinion Could Spur State Legislation
The U.S. Supreme Court’s recent decision that federal law governs the escheatment of over $250 million in unclaimed MoneyGram checks provides clarity for some issuers, but aspects of related common law remain uncertain and states may take the opportunity to pass multistate escheatment legislation, say attorneys at Alston & Bird.
-
Justices Leave Questions Open On Dual-Purpose Atty Advice
The U.S. Supreme Court's recent dismissal of In re: Grand Jury on grounds that certiorari was improvidently granted leaves unresolved a circuit split over the proper test for deciding when attorney-client privilege protects a lawyer's advice that has multiple purposes, say Susan Combs and Richard Kiely at Holland & Hart.
-
Employee Retention Tax Credit: Gray Areas And Red Flags
The subjective nature of the pandemic-prompted employee retention credit, coupled with a lack of Internal Revenue Service guidance, have created fertile ground for opportunists, so businesses seeking this tax benefit should be mindful of tax advisers who would involve them in fraudulent ERC claims, say attorneys at Holland & Knight.
-
High Court Ax Of Atty-Client Privilege Case Deepens Split
The U.S. Supreme Court's recent dismissal of In re: Grand Jury as improvidently granted maintains a three-way circuit split on the application of attorney-client privilege to multipurpose communications, although the justices have at least shown a desire to address it, say Trey Bourn and Thomas DiStanislao at Butler Snow.
-
Clean Energy Tax Credits' Wage, Apprentice Rules: Key Points
The Inflation Reduction Act's complicated prevailing wage and apprenticeship requirements for clean energy facility construction tax credits recently took effect — and the learning curve will be more difficult for taxpayers who are not already familiar with such programs, say attorneys at Shearman.
-
Crypto Coverage After FTX Fall: Crime And Custody Coverage
Cryptocurrency firm FTX's recent implosion provides a case study for potential crypto exposure under traditional insurance policies, and suggests carriers should ask some basic underwriting questions, including whether a company engages in transactions involving cryptocurrencies or holds digital assets in custody, says Anjali Das at Wilson Elser.
-
US-India Advance Pricing Resolutions Should Reassure Cos.
The United States' and India's tax authorities' recent resolution of a significant number of pending advance pricing agreements should reduce taxpayer uncertainty, reassure companies of the nations' good working relationship and improve India's investment environment, say Miller Williams and Caroline Setliffe at Eversheds Sutherland.
-
Reimagining Benefits For A World Without Noncompetes
Though the Federal Trade Commission's recently proposed noncompete ban is still in its infancy, companies should begin considering whether they would need to retool their payment and benefits packages to comply, while still protecting their competitive edge, say Melissa Ostrower and Alec Nealon at Jackson Lewis.
-
A Closer Look At Rep. Santos' Claims And Potential Charges
Skadden partner and former federal prosecutor Maria Cruz Melendez discusses Rep. George Santos' legal exposure following his alleged misrepresentations and the possible scope of investigations into his conduct — noting that if history is any indication, the congressman could face prison time if convicted.