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Tax
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October 10, 2024
Partnership Challenges Denial Of $42M Easement Deduction
The Internal Revenue Service failed to justify rejecting a Florida partnership's charitable contribution deduction for donating a $42 million conservation easement to a land conservancy, the partnership told the U.S. Tax Court.
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October 10, 2024
IRS Says It's Stepping Up Worker Credit Claims Processing
The Internal Revenue Service said Thursday it's accelerating processing of claims for pandemic-era worker credits after a moratorium triggered by what the agency has said was widespread fraud.
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October 10, 2024
Calif. Says FDIC Must Wait For $21M Tax Refund
A California tax agency urged a New York federal court to toss a lawsuit by the FDIC seeking a $20.7 million tax refund on behalf of the shuttered Signature Bank, saying it's entitled to wait for a possible IRS audit before delivering the payment.
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October 10, 2024
IRS Keeping Co. In Dark On Carryback Refund, Court Told
The Internal Revenue Service owes a $686,000 tax refund to a contractor for a carryback operating loss, the company told a Texas federal court, adding that the IRS hasn't responded to questions about a letter the agency claims it sent addressing the issue.
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October 10, 2024
Ex-Mayor Can't Reduce 6-Year Term In Fraud, Graft Case
A former Massachusetts mayor serving six years in prison for fraud and corruption has failed to raise a compelling argument to cut short the "already generous sentence" imposed, according to a Boston federal judge.
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October 09, 2024
Atty, Claims Firm Barred From Soliciting Foreclosure Class
A Michigan law firm and a third-party claims firm agreed Wednesday not to solicit potential members to an action alleging Michigan counties kept profits from foreclosures of tax-delinquent properties, following a meeting with class attorneys who had urged a judge to bar them from attempting to poach class members.
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October 09, 2024
European Parliament Backs Brazil's G20 Wealth Tax Plan
A majority of the European Parliament supports a 2% minimum tax on billionaires presented by Brazil at the Group of 20 nations meeting, asking the European Union to pursue the topic at the group's November summit, according to joint statements by members of Parliament on Wednesday.
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October 09, 2024
Tenn. Extends Tax Deadlines Due To Hurricane Helene
Tennessee will extend its franchise and excise tax filing deadlines to May 1 for taxpayers affected by Hurricane Helene, the state Department of Reveue announced.
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October 09, 2024
Unclear Road For $275M Biz Tax Plan, DC Panel Chair Says
The District of Columbia Tax Revision Commission may scrap a proposal for a business activity tax that could raise $275 million annually to reduce other business taxes, the panel chair said Wednesday.
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October 09, 2024
Feds Seek 16 Months For Ex-BigLaw Partner's Tax Dodging
Prosecutors told a Wisconsin federal judge that a former Husch Blackwell LLP and Dykema Gossett PLLC partner who pled guilty to tax evasion should be sentenced to 16 months in prison, saying he lied to IRS revenue officers to keep them at bay while spending lavishly on private planes, jewelry and golf club memberships.
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October 09, 2024
Final Treasury Rules Shut Off Inclusion For Repatriated IP
The U.S. Treasury Department adopted final rules Wednesday that shut off an annual income inclusion associated with intangibles for companies in certain situations that have transferred intellectual property back to the U.S. from overseas.
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October 08, 2024
Minn. County And Feds Must Meet In Person Over Land Fight
A Minnesota federal judge has ordered counsel for a county and two townships to meet in person with U.S. Department of the Interior representatives for settlement talks involving claims the DOI wrongly acquired about 3,239 acres of land into trust for an Ojibwe tribe.
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October 08, 2024
Jackson, Kagan Target Loper Bright In Ghost Gun Case
U.S. Supreme Court Justice Ketanji Brown Jackson was uncharacteristically quiet during initial arguments Tuesday over the federal government's authority to regulate ghost guns. While her colleagues debated whether kits of unassembled parts qualify as firearms, she waited patiently to post a different question: Can courts now toss agency interpretations they don't like?
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October 08, 2024
IRS Appeals Office's Easement Deals May Sap Independence
The IRS Independent Office of Appeals plans to settle certain conservation easement cases with similar terms offered by other IRS divisions, but these upcoming offers might be challenging for taxpayers to navigate and could undermine the office's independence from the rest of the agency.
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October 08, 2024
Homeowners Again Seek Class Cert. In Tax Foreclosure Suit
A group of former property owners has asked a Michigan federal judge to recertify a class action seeking to recover profits county treasurers made selling their tax-delinquent properties, saying the addition of class representatives fixes the flaw that dismantled the class.
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October 08, 2024
China Pushes Back On Turkish EV Tariffs, Targets EU Brandy
China said Tuesday that it is appealing to the World Trade Organization to halt Turkish tariffs on electric and hybrid vehicles made in the country, and it announced a temporary anti-dumping measure on European Union brandy that follows the bloc's own EV tariffs.
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October 08, 2024
Pa. Justices Wary Of Linking Mask Tax To Consumer Harms
Several justices of the Pennsylvania Supreme Court seemed cautious Tuesday about extending the state's consumer protection law liability to retailers who collect sales tax on tax-exempt items, pointing to the state's refund system as an existing form of relief for overcharged customers.
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October 08, 2024
Calif. Tax Preparer Gets 6 Years For $28M Scheme
The owner of a California tax preparation business who helped customers create sham companies was sentenced to six years in prison for a decadelong scheme that caused a tax loss of at least $28 million, according to the U.S. Department of Justice.
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October 08, 2024
Conn. Ethics Board Tosses Grievance Against Ex-Town Atty
A Connecticut ethics panel has dismissed a grievance at the heart of a former town attorney's claims that the tax assessor spread lies about his conduct and character, finding that the lawyer broke no professional conduct rules and concluding no further investigation was warranted.
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October 08, 2024
EU Removes Antigua And Barbuda From Tax Blacklist
The Council of the European Union removed Antigua and Barbuda from its blacklist of noncooperation jurisdictions on global tax standards, the EU's Economic and Financial Affairs Council announced Tuesday.
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October 07, 2024
Pa. Supreme Court Snapshot: Mask Taxes, Pride Month Post
The Pennsylvania Supreme Court during its October argument session will weigh whether retailers improperly collecting sales tax on face masks, which were exempted due to the COVID-19 pandemic, amounts to "commerce" that could trigger the state's consumer protection law.
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October 07, 2024
Mich. Supreme Court Snapshot: Insulin Prices, Disney Audit
The Michigan Supreme Court's first oral argument session of the 2024-25 term promises to be a busy one, involving an investigation into Eli Lilly's insulin prices with big implications for the scope of Michigan's consumer protection law and Disney's appeal of an order to turn over decades-old uncashed checks to the state treasurer.
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October 07, 2024
Illinois Defends Swipe Fee Law As Banks Seek To Block It
The Illinois attorney general has urged a federal judge to reject a preliminary injunction sought by banking trade groups that have sued to block a first-of-its-kind state law restricting swipe fees, arguing the industry groups' challenge fails on sovereign immunity and standing grounds.
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October 07, 2024
Treasury Proposes Exempting Tribal Cos. From Income Tax
Tribal-owned businesses would not be subject to federal income tax under proposed regulations released Monday by the U.S. Department of the Treasury, a move that would also allow such entities to be eligible to receive direct cash payments in lieu of clean energy tax credits.
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October 07, 2024
Stormwater Fees Not Illegal Tax, Mich. Appellate Panel Finds
Stormwater drainage charges in Ann Arbor constitute a lawful fee and not an illegal tax, the Michigan Appeals Court ruled, saying the charges did not require voter approval as demanded under the state constitution for increased local tax rates.
Expert Analysis
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Series
Spray Painting Makes Me A Better Lawyer
My experiences as an abstract spray paint artist have made me a better litigator, demonstrating — in more ways than one — how fluidity and flexibility are necessary parts of a successful legal practice, says Erick Sandlin at Bracewell.
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A Legal Playbook For Stadium Construction Agreements
As a new wave of construction in the professional sports arena space gets underway, owners must carefully consider the unique considerations and risks associated with these large-scale projects and draft agreements accordingly, say attorneys at Akerman.
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Opinion
Judicial Independence Is Imperative This Election Year
As the next election nears, the judges involved in the upcoming trials against former President Donald Trump increasingly face political pressures and threats of violence — revealing the urgent need to safeguard judicial independence and uphold the rule of law, says Benes Aldana at the National Judicial College.
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Series
Riding My Peloton Bike Makes Me A Better Lawyer
Using the Peloton platform for cycling, running, rowing and more taught me that fostering a mind-body connection will not only benefit you physically and emotionally, but also inspire stamina, focus, discipline and empathy in your legal career, says Christopher Ward at Polsinelli.
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Spartan Arbitration Tactics Against Well-Funded Opponents
Like the ancient Spartans who held off a numerically superior Persian army at the Battle of Thermopylae, trial attorneys and clients faced with arbitration against an opponent with a bigger war chest can take a strategic approach to create a pass to victory, say Kostas Katsiris and Benjamin Argyle at Venable.
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What Recent Study Shows About AI's Promise For Legal Tasks
Amid both skepticism and excitement about the promise of generative artificial intelligence in legal contexts, the first randomized controlled trial studying its impact on basic lawyering tasks shows mixed but promising results, and underscores the need for attorneys to proactively engage with AI, says Daniel Schwarcz at University of Minnesota Law School.
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How FinCEN Proposal Expands RE Transaction Obligations
Against a regulatory backdrop foreshadowing anti-money laundering efforts in the real estate sector, the Financial Crimes Enforcement Network's proposed rule significantly expands reporting requirements for certain nonfinanced residential real estate transfers and necessitates careful review, say attorneys at Fried Frank.
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What To Know About Employee Retention Credit Disclosures
Employers that filed potentially erroneous employee retention credit claims should take certain steps to determine whether the IRS’ voluntary disclosure program is a good fit and, if so, prepare a strong application before the window closes on March 22, say attorneys at Dentons.
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Litigation Inspiration: A Source Of Untapped Fulfillment
As increasing numbers of attorneys struggle with stress and mental health issues, business litigators can find protection against burnout by remembering their important role in society — because fulfillment in one’s work isn’t just reserved for public interest lawyers, say Bennett Rawicki and Peter Bigelow at Hilgers Graben.
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Unpacking FinCEN's Proposed Real Estate Transaction Rule
Phil Jelsma and Ulrick Matsunaga at Crosbie Gliner take a close look at the Financial Crimes Enforcement Network's recently proposed rulemaking — which mandates new disclosures for professionals involved in all-cash real estate deals — and discuss best next steps for the broad range of businesses that could be affected.
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Series
Skiing Makes Me A Better Lawyer
A lifetime of skiing has helped me develop important professional skills, and taught me that embracing challenges with a spirit of adventure can allow lawyers to push boundaries, expand their capabilities and ultimately excel in their careers, says Andrea Przybysz at Tucker Ellis.
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Think Like A Lawyer: Forget Everything You Know About IRAC
The mode of legal reasoning most students learn in law school, often called “Issue, Rule, Application, Conclusion,” or IRAC, erroneously frames analysis as a separate, discrete step, resulting in disorganized briefs and untold obfuscation — but the fix is pretty simple, says Luke Andrews at Poole Huffman.
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The Corporate Transparency Act Isn't Dead Yet
After an Alabama federal court's ruling last week rendering the Corporate Transparency Act unconstitutional, changes to the law may ultimately be required, but ongoing compliance is still the best course of action for most, says George Singer at Holland & Hart.
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How New EU Tax And Transfer Pricing Rules May Affect M&A
Companies involved in mergers and acquisitions may need to adjust fiscal due diligence procedures to ensure they consider potential far-reaching effects of newly implemented transfer pricing measures, such as newly implemented global minimum tax and European Union anti-tax avoidance directives and proposals, says Patrick Tijhuis at BDO.
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Employers, Prep For Shorter Stock Awards Settlement Cycle
Companies that provide equity compensation in the form of publicly traded stock will soon have one less day to complete such transactions under U.S. Securities and Exchange Commission and Nasdaq rules — so employers should implement expedited equity compensation stock settlement and payroll tax deposit procedures now, say attorneys at Morgan Lewis.