Federal
-
October 03, 2024
Ch. 7 Invalidates $4M Worker Retention Credit Suit, Gov't Says
A road construction company can't sue the Internal Revenue Service for a tax refund for pandemic-era worker credits because its claims stemmed from Chapter 7 bankruptcy proceedings, the federal government told a Florida federal court.
-
October 02, 2024
NY Man Posed As Exec To Steal $810K Tax Refund, Feds Say
A New York man has been charged with intercepting an unnamed Connecticut investment firm's $810,337 tax refund and then impersonating an executive of the company to steal most of it.
-
October 02, 2024
IRS Makes Progress On Retention Credit Fraud, TIGTA Says
The IRS has made multiple improvements to address false claims for the COVID-19-era employee retention credit, including updating messaging and beefing up certain tax return filters to identify problematic claims, but there is still room for improvement, the Treasury Inspector General for Tax Administration said Wednesday.
-
October 02, 2024
Stopgap Gov't Funding Law May Hinder IRS Improvements
The IRS may need to redirect funds from its 2022 funding boost intended for agency improvements in order to cover routine operations, reducing funds available for planned upgrade projects, due to the stopgap appropriations bill Congress passed last week.
-
October 02, 2024
9th Circ. Upholds 14 Years For Ex-Deputy's Tax, Fraud Crimes
A former sheriff's deputy who was ordered to pay $7.6 million in restitution and sentenced to 14 years in prison for tax crimes and wire fraud lost his bid to vacate his sentence Wednesday when the Ninth Circuit decided he wasn't unfairly denied a new attorney.
-
October 02, 2024
IRS Says European Energy Exchange Is A Qualified Exchange
The European Energy Exchange is a qualified board or exchange for purposes of mark-to-market contracts under Internal Revenue Code Section 1256(g)(7)(C), the Internal Revenue Service said Wednesday.
-
October 02, 2024
IRS Too Lax On Tax Prep Partners' Data Practices, TIGTA Says
The IRS isn't doing enough to oversee the data protection practices of the tax preparation businesses in its Free File program and has never removed a partner from the program despite some having been sanctioned for unauthorized disclosures of taxpayer information, the Treasury Inspector General for Tax Administration said Wednesday.
-
October 02, 2024
US Seeks To Drop $1M Tax Suit Against Sleep Clinic Founder
The U.S. government seeks to drop its case against a sleep clinic founder and his wife, whom it had accused of hiding assets, after the couple agreed to pay their tax liabilities in full, according to a filing in California federal court Wednesday.
-
October 01, 2024
VP Nominees Vance, Walz Spar Over Tax Cuts
Vice presidential candidates Sen. J.D. Vance, R-Ohio, and Gov. Tim Walz, D-Mich., laid out their plans for federal tax cuts to create affordable housing and child care, spark new business growth and increase manufacturing during a nationally televised debate Tuesday night.
-
October 01, 2024
IRS Delays Deadlines, Grants Other Relief Following Helene
Taxpayers in all or part of seven states will have until May 1 to file individual and business tax returns and make payments after Hurricane Helene hit the area, the Internal Revenue Service said Tuesday, while also granting dyed diesel penalty relief as well.
-
October 01, 2024
Tax Deadlines Extended For Victims Of Israel-Hamas War
The Internal Revenue Service said Tuesday that it will postpone tax return and payment deadlines to Sept. 30, 2025, for those affected by the Israel-Hamas war across 2023 and 2024.
-
October 01, 2024
Amgen Must Face Suit It Misled Investors On $10.7B Tax Bill
Amgen lost an attempt to escape a potential class action claiming the pharmaceutical giant hid a $10.7 billion tax bill from investors after a New York federal court ruled there was sufficient evidence for the action to proceed.
-
October 01, 2024
Ex-USTR Official Sees Possible Path Forward For Digital Taxes
The U.S. may withhold trade threats if it believes countries are having good-faith conversations about concerns that their digital services taxes discriminate against U.S. businesses, including in current talks with Canada, the former general counsel for the Office of the U.S. Trade Representative told Law360.
-
October 01, 2024
Tax Court Upholds Man's Penalty For Frivolous Return
The Internal Revenue Service did not abuse its discretion when it determined a California man was liable for a $5,000 penalty for filing a frivolous tax return and sustained a levy against him to collect the penalty, the U.S. Tax Court said Tuesday.
-
October 01, 2024
High Court Urged To Let Stand IRS Win In Bankruptcy Case
The U.S. Supreme Court should let stand a decision that late-filed returns prevented a taxpayer from discharging his federal tax debt in bankruptcy, the government argued, saying the taxpayer has inaccurately claimed that issues at the heart of his case have created a significant circuit split.
-
October 01, 2024
Treasury Plans Final Direct Pay Partnership Regs By Year-End
The U.S. Treasury Department is eyeing the end of the year to finalize regulations for development projects to elect out of their partnership tax status to qualify for a direct cash payment of their clean energy tax credits, an official said Tuesday.
-
October 01, 2024
Estate Exaggerating Value Of Exec's Tax Tipoff, DC Circ. Told
A Dutch bank executive's estate is "vastly" overstating the significance of his tips to the IRS in seeking a whistleblower award for his reporting of tax schemes, the U.S. government told the D.C. Circuit, urging it to uphold the U.S. Tax Court's denial of the award.
-
October 01, 2024
IRS Delays Tax Deadlines In Ill. After July Storms
Taxpayers in seven Illinois counties will have until Feb. 3 to file individual and business tax returns and make payments after portions of the state were hit by severe storms and tornadoes in July, the Internal Revenue Service said Tuesday.
-
September 30, 2024
11th Circ. Skeptical Of Peanut Truck Co.'s Excise Tax Refund
The Eleventh Circuit seemed skeptical of a lower court's decision to award a $37,000 excise tax refund to a manufacturer on its sale of wagons for carrying and drying peanuts, suggesting during oral arguments that the semitrailers may fail to qualify for a tax exemption for off-road vehicles.
-
September 30, 2024
Biz Owner Gets 18 Months For Tax Fraud On $2.8M In Income
The owner of a metal fabrication company who admitted to neglecting to report nearly $3 million in business income to the Internal Revenue Service was sentenced to 18 months in prison, according to Connecticut federal prosecutors.
-
September 30, 2024
IRS Seeks Input On Draft Partnership Basis-Shifting Form
The Internal Revenue Service asked for comments Monday on a draft form and instructions for partners to disclose all the property they receive from partnerships, part of upcoming regulations meant to target abusive tax avoidance that uses sophisticated partnership basis-shifting transactions.
-
September 30, 2024
Ex-Jersey Shore Mayor Admits To Benefits Theft, Tax Crimes
The former mayor of Wildwood, New Jersey, has admitted to unlawfully obtaining state health benefits, failing to disclose his outside employment and neglecting to report income from that job on state tax returns, New Jersey Attorney General Matthew J. Platkin and the Office of Public Integrity and Accountability announced Monday.
-
September 30, 2024
Feds Seek Prison In Tax Case Linked To 'China Initiative'
Prosecutors have asked a Texas federal judge for an 18- to 24-month prison sentence for a Chinese-born engineer who pled guilty to tax crimes after being charged with export violations and fraud in a case the defense claims began as an espionage investigation under the U.S. Department of Justice's now-disbanded "China Initiative."
-
September 30, 2024
IRS Appeals Office Tests Group Mailbox For Large Cos.
The Internal Revenue Service's Independent Office of Appeals announced Monday that it will test out a program intended to help enhance secure messaging for large businesses with multiple representatives by allowing them to request a group mailbox to communicate with their assigned Appeals employee.
-
September 30, 2024
Supplement Co. Owes $1.3M Of Ex-Owner's Tax, US Says
A health supplements company and its owners owe the federal government about $1.3 million in taxes stemming from the liabilities of the company's previous owner, the U.S. said in a complaint Monday in a Connecticut federal court.
Expert Analysis
-
Requiring Leave To File Amicus Briefs Is A Bad Idea
A proposal to amend the Federal Rules of Appellate Procedure that would require parties to get court permission before filing federal amicus briefs would eliminate the long-standing practice of consent filing and thereby make the process less open and democratic, says Lawrence Ebner at the Atlantic Legal Foundation and DRI Center.
-
4 Ways To Motivate Junior Attorneys To Bring Their Best
As Gen Z and younger millennial attorneys increasingly express dissatisfaction with their work and head for the exits, the lawyers who manage them must understand and attend to their needs and priorities to boost engagement and increase retention, says Stacey Schwartz at Katten.
-
How IRA Unlocks Green Energy Investments For Tribes
An Inflation Reduction Act provision going into effect May 10 represents a critical juncture for Native American tribes, offering promising economic opportunity in green energy investment, but requiring a proactive and informed approach when taking advantage of newly available tax incentives, say attorneys at Lewis Brisbois.
-
Former Minn. Chief Justice Instructs On Writing Better Briefs
Former Minnesota Supreme Court Chief Justice Lorie Gildea, now at Greenberg Traurig, offers strategies on writing more effective appellate briefs from her time on the bench.
-
What To Know About IRS' New Jet Use Audit Campaign
The Internal Revenue Service recently announced plans to open several dozen audits scrutinizing executive use of company jets, so companies should be prepared to show the business reasons for travel, and how items like imputed income and deduction disallowance were calculated, say attorneys at Morgan Lewis.
-
Stay Interviews Are Key To Retaining Legal Talent
Even as the economy shifts and layoffs continue, law firms still want to retain their top attorneys, and so-called stay interviews — informal conversations with employees to identify potential issues before they lead to turnover — can be a crucial tool for improving retention and morale, say Tina Cohen Nicol and Kate Reder Sheikh at Major Lindsey.
-
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.
-
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.
-
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.
-
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.
-
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.
-
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.
-
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.