Federal
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September 18, 2024
House GOP Vows Blowback Over OECD's Min. Tax Backstop
House Republicans again warned the OECD that Congress will retaliate against countries that implement a backstop measure to the 15% global minimum tax, saying China will cheat the system and it will cost U.S. taxpayers about $120 billion.
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September 18, 2024
Tips Lead To $263M IRS Settlement In Offshore Evasion Case
Tips from three whistleblowers have led to the IRS reaching a $263 million settlement with a taxpayer in an offshore tax evasion case, concluding one of the largest-ever tax whistleblower cases, a law firm involved in the case said Wednesday.
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September 18, 2024
IRS Delays Deadlines For Pa. Victims Of Tropical Storm
Taxpayers in four Pennsylvania counties will have until Feb. 3, 2025, to file individual and business tax returns and make payments after portions of the state were hit by Tropical Storm Debby, the Internal Revenue Service said Wednesday.
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September 18, 2024
Treasury Floats Tax Credit Regs For EV Charging Property
The U.S. Treasury Department proposed regulations Wednesday to define which electric vehicle charging ports, hydrogen fueling stations and other infrastructure that businesses, people and tax-exempt entities can build in underserved communities to qualify for a tax credit of up to 30% of installation costs.
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September 18, 2024
Sidley Can't Escape Malpractice Suit In Ga. Over Tax Scheme
A Georgia federal judge has found that Sidley Austin LLP must face its former clients' legal malpractice claims alleging they participated in a tax scheme under the firm's guidance, but threw out indemnity claims seeking reimbursement for paying the IRS $7 million over the scheme.
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September 18, 2024
Latham Adds A&O Shearman Energy Group Co-Lead In DC
Latham & Watkins LLP has hired the former co-head of Allen Overy Shearman Sterling's U.S. energy, natural resources and infrastructure group to its team of transactional tax partners based in Washington, D.C., the firm announced Monday.
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September 18, 2024
Staffing Co. Owed $5M In Worker Retention Credits, Suit Says
An industrial staffing company that was forced to stop holding job fairs during the pandemic claims the IRS hasn't paid it $5.1 million in federal tax credits it's owed for having continued paying employees, according to a complaint in Ohio federal court.
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September 18, 2024
8th Circ. Considers Chevron's End In 3M's $24M Tax Case
The Eighth Circuit signaled it would consider an argument by 3M that the U.S. Supreme Court's overturning of Chevron deference warranted a reversal in a transfer pricing case in which 3M is challenging the IRS' reallocation of $24 million from a Brazilian affiliate.
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September 18, 2024
IRS Issues Corp. Bond Monthly Yield Curve For Sept.
The Internal Revenue Service published Wednesday the corporate bond monthly yield curve for September for use in calculations for defined benefit plans, as well as corresponding segment rates and other related provisions.
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September 17, 2024
Revocation Of Interests In QTIP Trust Was Gift, Tax Court Says
An agreement in which two children gave up their interests in a qualified terminable interest property trust that held the remainder of their mother's nearly $60 million estate resulted in a taxable gift to the children's father, the U.S. Tax Court said Tuesday.
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September 17, 2024
Tax Court Denies Mineral Co.'s $1.1M Microcaptive Deduction
A mineral rights leasing company set up by an Oklahoma oil businessman can't take a $1.1 million deduction for what was presented as a microcaptive insurance transaction, the U.S. Tax Court ruled, saying the transaction was not a legitimate insurance arrangement.
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September 17, 2024
Chrisley Sentence Should Stick Despite 11th Circ., Feds Argue
Julie Chrisley's prison sentence shouldn't change even as a Georgia federal judge considers the former reality TV star's smaller role in a $36 million tax evasion and fraud scheme, prosecutors told the court Monday, noting that her time has already been shortened for other considerations.
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September 17, 2024
Duane Morris Atty Asks Court To Keep Proposed Class Alive
A Duane Morris LLP attorney asked a California federal court to keep her proposed class action against the firm alive, alleging the BigLaw firm is mischaracterizing her claims that it underpaid and misclassified employees.
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September 17, 2024
Blumenauer Pushes House Speaker To Put Pot Bill To Vote
U.S. Rep. Earl Blumenauer, D-Ore., on Monday urged House Speaker Mike Johnson to bring bipartisan cannabis legislation to a vote following revelations that Richard Nixon admitted privately that marijuana was "not particularly dangerous" while he publicly waged the war on drugs.
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September 17, 2024
Fraudster Can Deduct $367K Legal Expenses, Tax Court Says
A Californian convicted of wire fraud and money laundering is entitled to deduct more than $367,000 in legal expenses spent to defend himself from the charges because they were related to his business, even though his business was defrauding donors, the U.S. Tax Court said.
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September 17, 2024
10 Members Appointed To Electronic Advisory Panel, IRS Says
The Internal Revenue Service on Tuesday announced the appointment of 10 new members to its electronic tax administration advisory committee, including the secretary of the Wisconsin Department of Revnue and a program manager at H&R Block.
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September 16, 2024
Film Producer, Accountant Hid $25M From IRS, DOJ Alleges
A film producer who sold shares in the production company he cofounded for $25 million schemed with an Australian accountant to hide the proceeds from U.S. authorities in Swiss bank accounts, causing the IRS to lose out on some $5 million, according to the DOJ.
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September 16, 2024
Treasury Cuts 'Zero Basis' Rule In Final Estate Tax Regs
The U.S. Treasury Department on Monday said it would not keep a rule that set a zero value for the unreported property of an estate in final regulations on the requirement that an heir's basis in inherited property be consistent with the property's value for estate tax purposes.
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September 16, 2024
Audit Trails For IRS Taxpayer Data Trove Lacking, TIGTA Says
Audit trails that can be used to identify logins to an Internal Revenue Service's database containing extensive tax records were often incomplete, according to a report by the Treasury Inspector General for Tax Administration released Monday.
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September 16, 2024
Applicable Federal Interest Rates To Decline Again In October
Applicable federal rates for income tax purposes will decrease again in October, continuing a months-long decline, the Internal Revenue Service said Monday.
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September 16, 2024
IRS Floats Definition Of 'Covered Month' For Premium Credit
The IRS on Monday proposed expanding the definition of a "covered month" for purposes of the health insurance premium tax credit to include the first month of the grace period for which an individual does not pay the premium in full but still receives coverage.
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September 16, 2024
IRS Cancels Hearing On 'Basket Contract' Transactions Rule
The Internal Revenue Service canceled a hearing on proposed rules that would flag what are known as basket option contracts as potentially abusive listed transactions, according to a notice released Monday.
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September 13, 2024
The 2024 Regional Powerhouses
The law firms on Law360's list of 2024 Regional Powerhouses reflected the local peculiarities of their states while often representing clients in deals and cases that captured national attention.
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September 13, 2024
IRS Monitoring Of Cloud IT Security Lacking, TIGTA Says
An audit of the IRS' cloud computing systems found that the agency was lacking in several areas, including not keeping up with systems to maintain the security of cloud computing services, according to a report released Friday by the Treasury Inspector General for Tax Administration.
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September 13, 2024
Weekly Internal Revenue Bulletin
The Internal Revenue Service's weekly bulletin, issued Friday, included proposed regulations on clean electricity low-income community bonus credits and procedures for obtaining the IRS' automatic consent to change accounting methods to comply with changes to the treatment of research and development costs.
Expert Analysis
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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.
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Anticipating Intensified Partnership Enforcement From IRS
The Internal Revenue Service's decadeslong difficulties with partnership audits led to the recent announcement of a clear, well-funded, focused initiative, and businesses operating in the partnership form will feel the impact, with definite changes ahead, says Sharon Katz-Pearlman at Greenberg Traurig.
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Pro Bono Work Is Powerful Self-Help For Attorneys
Oct. 22-28 is Pro Bono Week, serving as a useful reminder that offering free legal help to the public can help attorneys expand their legal toolbox, forge community relationships and create human connections, despite the challenges of this kind of work, says Orlando Lopez at Culhane Meadows.
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The Pop Culture Docket: Judge Espinosa On 'Lincoln Lawyer'
The murder trials in Netflix’s “The Lincoln Lawyer” illustrate the stark contrast between the ethical high ground that fosters and maintains the criminal justice system's integrity, and the ethical abyss that can undermine it, with an important reminder for all legal practitioners, say Judge Adam Espinosa and Andrew Howard at the Colorado 2nd Judicial District Court.
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Newman Suspension Shows Need For Judicial Reform
The recent suspension of U.S. Circuit Judge Pauline Newman following her alleged refusal to participate in a disability inquiry reveals the need for judicial misconduct reforms to ensure that judges step down when they can no longer serve effectively, says Aliza Shatzman at The Legal Accountability Project.