Federal

  • March 01, 2024

    IRS Turning To Experts, AI For Complex Returns, Werfel Says

    The Internal Revenue Service is using a blend of newly hired subject-matter experts and artificial intelligence technology to increase scrutiny of complex tax returns filed by wealthy corporations and individuals, agency Commissioner Daniel Werfel said Friday.

  • March 01, 2024

    Tax Break Bill Could Still Pass After Tax Season, Aide Says

    If Senate lawmakers haven't voted on the bipartisan House-passed tax bill by the end of the 2024 tax filing season, that doesn't necessarily mean the bill won't get to President Joe Biden's desk this year, an aide to Democrats on the House Ways and Means Committee said Friday.

  • March 01, 2024

    Exec's Captive Insurance Case Headed To Trial

    Whether an insurance executive knowingly lied to clients by telling them they could take illegal tax deductions in connection with captive insurance arrangements should be decided by a jury, a Florida federal judge ruled, saying material facts in the case are disputed.

  • March 01, 2024

    Commission Eyes Sweeping Changes To US Olympic Model

    An independent commission called for an overhaul of the U.S. Olympic system Friday, rebuking leaders for failing to keep athletes safe from sexual abuse and calling on Congress to take a more active role in administrating youth sports.

  • March 01, 2024

    Major Cos. Paying Well Below 21% TCJA Tax Rate, Study Says

    Major corporations such as Netflix and T-Mobile are on average paying well below the 21% corporate tax rate established by the 2017 Tax Cuts and Jobs Act, a study by the Institute on Taxation and Economic Policy of more than 340 major corporations showed.

  • March 01, 2024

    House Tax Panel To Prep Members On OECD Pillar 1

    Neither Republicans nor Democrats on the House Ways and Means Committee have opined much about the OECD profit reallocation plan known as Pillar One, but they will gain valuable information during an upcoming subcommittee meeting, a tax staffer for the panel said Friday.

  • March 01, 2024

    Menendez Associate Pleads Guilty In Bribe Case

    A New Jersey insurance broker pled guilty Friday to bribing Sen. Bob Menendez and his wife, Nadine, by buying her a Mercedes-Benz convertible, under an agreement to cooperate with federal prosecutors.

  • March 01, 2024

    Taxation With Representation: Pillsbury, Cleary Gottlieb

    In this week's Taxation with Representation, First Advantage Corp. acquires Sterling Check Corp., International Game Technology spins off two subsidiaries, Disney merges its media operations in India with Reliance Industries, and Atlas Energy Solutions purchases Hi-Crush.

  • March 01, 2024

    IRS Amends Language In Clean Hydrogen Proposal

    The Internal Revenue Service issued a correction notice Friday to change the language of a proposal relating to clean hydrogen production and whether such facilities are treated as energy property.

  • March 01, 2024

    Weekly Internal Revenue Bulletin

    The Internal Revenue Service issued its weekly bulletin Friday, and it included notice of a variety of rate updates.

  • February 29, 2024

    Logger Failed To Report $3M In Foreign Banks, Judge Rules

    A logger failed to report more than $3 million he kept in foreign accounts, then fraudulently transferred the bulk of it to his wife when he learned he was being audited by the IRS, a Colorado federal judge said in upholding $1.7 million in penalties.

  • February 29, 2024

    House Approves Aviation Excise Tax Extensions

    The U.S. House voted Thursday to extend excise taxes funding the Airport and Airway Trust Fund for two months at their current rates, clearing the path for the legislation to be considered by the Senate.

  • February 29, 2024

    Biz Owner's $2.4M FBAR Dispute Paused For Mediation

    The U.S. government and a retired plumbing business owner mutually agreed to a 90-day stay of their $2.4 million tax dispute over foreign bank account reporting while they try to mediate a solution, a Georgia federal judge said Thursday.

  • February 29, 2024

    IRS Funding Cuts Would Raise Deficit $24B, CBO Says

    A congressional agreement to rescind $20 billion in appropriated funding for the Internal Revenue Service this year would add $24 billion to the federal deficit through the next 10 years, according to Congressional Budget Office projections published Thursday.

  • February 29, 2024

    Ga. Man Convicted In $11M PPP Fraud Case Wants New Trial

    An Atlanta man convicted on dozens of charges stemming from an $11 million pandemic loan fraud scheme has asked a Georgia federal judge for a new trial.

  • February 29, 2024

    IRS Amends Treatment Of Public Utility Debt

    The Internal Revenue Service will not define certain public utilities as not recognizing gross income until the public utility receives the proceeds of a debt issued by the qualifying state financing entity, the agency said Thursday.

  • February 29, 2024

    NJ Towns Can't Sue Netflix, Hulu For Fees, 3rd Circ. Says

    Two New Jersey municipalities cannot sue Netflix and Hulu for franchise fees under the state's Cable Television Act, the Third Circuit held Thursday in a precedential opinion, saying the state statute reserves enforcement of the law to the state Board of Public Utilities.

  • February 29, 2024

    IRS Enforcement Push Will Target 125K Wealthy Nonfilers

    The Internal Revenue Service is ramping up enforcement against 125,000 high-income taxpayers who haven't filed returns since 2017 as a part of its ongoing efforts to increase tax compliance, the agency's chief told reporters Thursday.

  • February 29, 2024

    Medtronic Says 3 Years Of Tax Returns Under IRS Audit

    Three years of medical device company Medtronic's federal income tax returns are being audited by the Internal Revenue Service, the company said in a U.S. Securities and Exchange Commission filing.

  • February 29, 2024

    Bankrupt Endo To Pay $465M To Resolve Opioid Claims

    Drugmaker Endo International has agreed to pay as much as $465 million to resolve criminal and civil claims stemming from its sale and marketing of a powerful opioid, and will turn over its assets to a group of secured lenders who will operate the company under a new corporate structure.

  • February 28, 2024

    Crapo Seeks Changes To Child Tax Credit Provisions In Bill

    The top-ranking Republican on the Senate Finance Committee said Wednesday that he cannot support the bipartisan tax bill pending in the Senate as long as a provision that allows taxpayers to receive a refundable child tax credit based on their prior year's earnings is included.

  • February 28, 2024

    Amgen Seeks Dismissal Of Investor Action Over $11B Tax Bill

    Amgen had no obligation to disclose specific amounts of proposed adjustments to its taxes, the company told a New York federal court as it again demanded dismissal of a proposed class action alleging the company hid a $10.7 billion tax bill from investors.

  • February 28, 2024

    Embattled Philly Loan Biz Principals Hit With RICO Charges

    Legal troubles for the principals of Philadelphia's Par Funding cash advance company are mounting as federal prosecutors hit them with a new indictment adding Racketeer Influenced and Corrupt Organizations Act allegations on top of existing charges that the principals bilked investors out of hundreds of millions of dollars and threatened violence against borrowers.

  • February 28, 2024

    COVID Fraud Jury Can't Hear Of Gov't's Loan Error, Feds Say

    A jury shouldn't be shown evidence of the U.S. government's error in approving a Michigan business owner's application for a Paycheck Protection Program loan while he was under indictment, federal prosecutors have argued.

  • February 28, 2024

    Timeline Rule For Assessing Tax Not Retroactive, Court Says

    A former corporate executive who received a $26 million buyout and then rolled the proceeds over to a retirement account incorrectly claimed that an amended statute of limitations exempted him from paying a penalty, the U.S. Tax Court ruled Wednesday.

Featured Stories

  • Easement Cases To Put IRS-Hired Appraisers Under Scrutiny

    Kat Lucero

    Some partnerships challenging the denial of tax deductions for conservation easement donations are mounting a new attack on the IRS' push to enforce the transactions with claims that the agency's multimillion-dollar contracts with third-party appraisal firms compel them to be biased toward the government. 

  • Stalled Pillar 1 Raises Specter Of EU Digital Tax

    Todd Buell

    The stalling at the international level of a redistribution of taxing rights known as Pillar One is raising questions about whether the European Union would revive a digital tax, which it had put aside hoping Pillar One would succeed.

  • Pot Rescheduling Could Spur Inventory Accounting Change

    David van den Berg

    If cannabis is reclassified to a lower tier under the Controlled Substances Act, it would unlock significant tax benefits for cannabis companies, such as allowing them to take standard business deductions, but they may need to account for their inventories differently to take full advantage.

Expert Analysis

  • Demystifying IRS' Claims Of $851B Return On Investment

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    The IRS' recently released analysis, estimating a $851 billion return on the government’s $80 billion investment in the agency, represents a huge increase over its 2022 estimate and that of the Congressional Budget Office and may be best viewed as a best-case scenario, says Joyce Beebe at the Baker Institute.

  • How Firms Can Ensure Associate Gender Parity Lasts

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    Among associates, women now outnumber men for the first time, but progress toward gender equality at the top of the legal profession remains glacially slow, and firms must implement time-tested solutions to ensure associates’ gender parity lasts throughout their careers, say Kelly Culhane and Nicole Joseph at Culhane Meadows.

  • A Proposal For Fairer, More Efficient Innocent Spouse Relief

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    Adding a simple election to the current regulatory framework for innocent spouse claims would benefit both taxpayers and the Internal Revenue Service by alleviating the undue burdens placed on those the program was intended to help and improving agency collections in such cases, says Laurie Kazenoff at Kazenoff Tax.

  • 7 Common Myths About Lateral Partner Moves

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    As lateral recruiting remains a key factor for law firm growth, partners considering a lateral move should be aware of a few commonly held myths — some of which contain a kernel of truth, and some of which are flat out wrong, says Dave Maurer at Major Lindsey.

  • Proposed Hydrogen Tax Credit Regs May Be Legally Flawed

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    While the recently proposed regulations for the new clean hydrogen production tax credit have been lauded by some in the environmental community, it is unclear whether they are sufficiently grounded in law, result from valid rulemaking processes, or accord with other administrative law principles, say Hunter Johnston and Steven Dixon at Steptoe.

  • Navigating ACA Reporting Nuances As Deadlines Loom

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    Stephanie Lowe at Liebert Cassidy walks employers through need-to-know elements of Affordable Care Act reporting, including two quickly approaching deadlines, the updated affordability threshold, strategies for choosing an affordability safe harbor, and common coding pitfalls.

  • 6 Pointers For Attys To Build Trust, Credibility On Social Media

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    In an era of information overload, attorneys can use social media strategically — from making infographics to leveraging targeted advertising — to cut through the noise and establish a reputation among current and potential clients, says Marly Broudie at SocialEyes Communications.

  • Why Biz Groups Disagree On Ending Chevron Deference

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    Two amicus briefs filed in advance of last month's U.S. Supreme Court oral arguments in Loper Bright Enterprises v. Raimondo highlight contrasting views on whether the doctrine of Chevron deference promotes or undermines the stable regulatory environment that businesses require, say Wyatt Kendall and Sydney Brogden at Morris Manning.

  • US-Chile Tax Treaty May Encourage Cross-Border Investment

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    Provisions in the recently effective U.S.-Chile bilateral income tax treaty should encourage business between the two countries, as they reduce U.S. withholding tax on investment income for Chilean taxpayers, exempt certain U.S. taxpayers from Chilean capital gains tax, and clarify U.S. foreign tax credit rules, say attorneys at Kramer Levin.

  • A Look Ahead For The Electric Vehicle Charging Industry

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    This will likely be an eventful year for the electric vehicle market as government efforts to accelerate their adoption inevitably clash with backlash from supporters of the petroleum industry, say Rue Phillips at SkillFusion and Enid Joffe at Green Paradigm Consulting.

  • A Post-Mortem Analysis Of Stroock's Demise

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    After the dissolution of 147-year-old firm Stroock late last year shook up the legal world, a post-mortem analysis of the data reveals a long list of warning signs preceding the firm’s collapse — and provides some insight into how other firms might avoid the same disastrous fate, says Craig Savitzky at Leopard Solutions.

  • SG's Office Is Case Study To Help Close Legal Gender Gap

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    As women continue to be underrepresented in the upper echelons of the legal profession, law firms could learn from the example set by the Office of the Solicitor General, where culture and workplace policies have helped foster greater gender equality, say attorneys at Ocean Tomo.

  • Planning A Defense As IRS Kicks Off Sports Losses Campaign

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    Sports team owners and partnerships face potential examination under the Internal Revenue Service’s recently announced sports industry losses campaign, and should be preparing to explain what drove their reported losses and assembling documentation to support their tax return positions and accounting methods, say Sheri Dillon and Jennifer Breen at Morgan Lewis.