Federal
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November 07, 2024
IRS To Hold Hearing On Dual Consolidated Loss Regs
The Internal Revenue Service plans to hold a public hearing Nov. 22 on proposed regulations that outline when foreign taxes under the Pillar Two international minimum tax agreement could trigger U.S. rules that aim to prevent companies from double-dipping the same economic loss.
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November 06, 2024
Chicago Pol Urges Narrow Reading Of False Statement Law
The U.S. Supreme Court should narrowly interpret the federal statute barring people from using false statements to influence certain financial institutions because backing the government's broad reading could expose borrowers to criminal liability that was never intended, former Chicago alderman Patrick Daley Thompson argued Wednesday.
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November 06, 2024
After Electoral Defeats, Cannabis Advocates Eye Next Steps
Cannabis industry advocates and reform activists struck a note of cautious optimism Wednesday following an expected Republican electoral sweep of the federal government, while opponents of legalization touted the defeat of multiple statewide ballot measures as proof of their position that marijuana reform efforts were losing support.
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November 06, 2024
Finance Committee Helm Awaits Crapo After GOP Wins Senate
Idaho Republican Mike Crapo is expected to lead the Senate Finance Committee when Congress convenes next year, following President-elect Donald Trump's win Tuesday in the election that also handed Republicans control of the U.S. Senate for the first time since 2021.
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November 06, 2024
Feds Look To Halt Vitamin Co. Payouts Amid $1.4M Tax Fight
A couple who bought a vitamin supplement company shouldn't continue to get payments from the business amid a suit claiming they're liable for a previous owner's $1.4 million tax lien, the U.S. Department of Justice told a Connecticut federal court Wednesday.
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November 06, 2024
Atty Failed To Prove Theft Loss, Tax Court Says
An attorney is not entitled to deduct a theft loss for his legal expenses after a company he managed was sued for fraud, the U.S. Tax Court ruled Wednesday, sustaining the Internal Revenue Service's determination that he owed taxes and penalties.
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November 06, 2024
Transport Co. Owner Failed To Report Income, Tax Court Says
The owner of a medical transportation company didn't report $125,000 of income on his individual tax return as required of disregarded entities with sole shareholders, the U.S. Tax Court said Wednesday in a ruling that sustained a determination by the Internal Revenue Service.
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November 06, 2024
Gov't Urges 11th Circ. To Rethink FBAR Excessive Fine Ruling
The Eleventh Circuit should reconsider its decision that some of the $12.6 million in penalties the Internal Revenue Service imposed on a man for willfully failing to report his foreign bank accounts violated the Eighth Amendment's bar on excessive fines, the U.S. government said.
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November 06, 2024
NJ Employer Admits To Evading $3.5M In Payroll Taxes
A New Jersey owner of a shipping and logistics company pled guilty to having a role in a $3.5 million payroll tax evasion scheme, New Jersey federal prosecutors said.
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November 06, 2024
Tax Court To Rethink $1.9M Deduction Denial Post-Chevron
The U.S. Tax Court agreed to reconsider its denial of a $1.9 million tax break for farming sought by a Texas couple, saying it will examine whether a subsequent U.S. Supreme Court ruling overturning long-standing deference to federal agencies invalidates regulations at issue in the case.
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November 06, 2024
9th Circ. Won't Revisit IRS' Rejection Of Compromise
The Ninth Circuit said it won't reconsider its August decision that a man who owed $50 million in taxes and offered to settle part of his debt was correctly denied a compromise by the Internal Revenue Service.
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November 05, 2024
Trump Victory Boosts GOP Push To Extend 2017 Tax Law
Former President Donald Trump's projected reelection early Wednesday gave GOP lawmakers a strong boost in their efforts to renew major parts of the 2017 tax law that will expire next year, further dimming Democrats' hopes of promoting tax fairness by increasing rates on wealthy corporations and individuals.
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November 05, 2024
Trump Has Official Immunity. What About His Aides?
Whether the U.S. Supreme Court's decision on presidential immunity extends to subordinates who follow a president's orders has become a more pressing question in the wake of Donald Trump's projected election win, according to legal experts.
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November 05, 2024
How Trump Can Quash His Criminal Cases
Donald Trump's projected victory at the polls also translates to a win in the courts, as the second-term president will have the power to end both of his federal criminal cases. And the U.S. Supreme Court's decision on presidential immunity would shield him from any consequences for ordering his charges to be dismissed, experts say.
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November 05, 2024
An Early Look At Trump's Supreme Court Shortlist
With former President Donald Trump projected to win the 2024 presidential election and the Republicans' success in securing the U.S. Senate majority, Trump may now get the chance to appoint two more justices to the U.S. Supreme Court, cementing the court's conservative tilt for decades to come.
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November 05, 2024
GOP's Senate Win Hands Future Of The Judiciary To Trump
Republicans were projected to take back the White House and Senate and possibly the House early Wednesday, putting the GOP in position to back Donald Trump's agenda and his slate of young, conservative judicial nominees.
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November 05, 2024
The Firms With An Inside Track To A New Trump Admin
Law firms that have represented Donald Trump and the Republican Party on everything from personal legal woes to election-related lawsuits could see the risks of that work pay dividends as Trump is projected to secure a second term in office.
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November 05, 2024
Father, Daughter Attys Ask To Avoid Prison For Tax Scheme
Father and daughter attorneys convicted of participating in a multimillion-dollar tax avoidance scheme asked a North Carolina federal court to spare them prison sentences, with the daughter saying her father should have protected her and the father highlighting his mental illness.
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November 05, 2024
11th Circ. Says IRS Summons Doesn't Violate 5th Amendment
A Florida federal court didn't err when it upheld an Internal Revenue Service summons, the Eleventh Circuit said, saying it was unconvinced by a taxpayer's argument that the summons violated his Fifth Amendment rights against self-incrimination.
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November 05, 2024
CPA Group Urges IRS To Promote Digital Asset Basis Relief
The U.S. Treasury Department and Internal Revenue Service should promote a safe harbor for taxpayers that plan to allocate the unused basis of their digital assets before a Jan. 1 deadline for using the relief, a certified public accountants group said in a letter released Tuesday.
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November 05, 2024
Crypto Council Seeks Delay In Digital Asset Broker Regs
The IRS should delay the effective date of a requirement in the digital assets broker regulations that calls for identifying units of the assets in the broker's custody until the agency clarifies the provision, a global council of cryptocurrency companies said in a letter released Tuesday.
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November 05, 2024
2nd Circ. Urged To Rethink Dual Citizen's FBAR Penalties
A dual U.S.-French citizen found liable for tax penalties by the Second Circuit for hiding millions of dollars in foreign accounts asked the court Tuesday to reconsider, saying American authorities demanded she participate in a deposition that would have put her in legal jeopardy abroad.
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November 05, 2024
On The Ground: How Attorneys Safeguarded The Election
Attorneys worked tirelessly Tuesday to support citizens and election workers on the final day of voting in one of history's most contentious presidential contests.
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November 04, 2024
'Oh, Come On': 5th Circ. Doubts Intuit Ads Misled Consumers
The Fifth Circuit on Monday seemed skeptical that the company behind TurboTax duped customers into thinking they could file their tax returns for free, with judges engaging in a lengthy back-and-forth with the Federal Trade Commission over how noticeable disclosures on the ads had to be for the agency to consider them truthful.
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November 04, 2024
2nd Circ. Rejects Man's Challenge To IRS Lien For $4.2M
The U.S. Tax Court correctly found that the IRS appeals office didn't abuse its powers by approving the agency's federal tax lien to collect $4.2 million from a man with a court-ordered payment plan, the Second Circuit said.
Expert Analysis
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Planning Law Firm Content Calendars: What, When, Where
During the slower month of August, law firms should begin working on their 2025 content calendars, planning out a content creation and distribution framework that aligns with the firm’s objectives and maintains audience engagement throughout the year, says Jessica Kaplan at Legally Penned.
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Brownfield Questions Surround IRS Tax Credit Bonus
Though the IRS has published guidance regarding the Inflation Reduction Act's 10% adder for tax credits generated by renewable energy projects constructed on brownfield sites, considerable guesswork remains as potential implications seem contrary to IRS intentions, say Megan Caldwell and Jon Micah Goeller at Husch Blackwell.
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Law Firms Should Move From Reactive To Proactive Marketing
Most law firm marketing and business development teams operate in silos, leading to an ad hoc, reactive approach, but shifting to a culture of proactive planning — beginning with comprehensive campaigns — can help firms effectively execute their broader business strategy, says Paul Manuele at PR Manuele Consulting.
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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.