Federal

  • February 22, 2024

    Attys Settle Yacht Donor's Malpractice Suit Over $4.6M Tax Bill

    A New York law firm and two attorneys have settled what remained of a malpractice suit brought by a former client who alleged faulty legal advice led to her being slapped with a $4.6 million tax bill, with a joint stipulation of dismissal filed Thursday.

  • February 22, 2024

    US Can't Appeal Order To Give Avenatti's Tax Info To Trustee

    A California federal judge declined Wednesday to allow the U.S. to appeal a bankruptcy court's decision ordering Michael Avenatti's tax returns to be released to the trustee overseeing the estate of Eagan Avenatti LLP's bankruptcy, finding the decision to be unappealable, and Avenatti himself hasn't objected to the disclosure.

  • February 22, 2024

    Conn. Embezzler Gets 2 Years For $1M Mom-And-Pop Ripoff

    The former office manager for a family-owned construction business in Connecticut must serve 24 months in prison for stealing nearly $1 million from her employer through a yearslong embezzlement scheme and failing to pay taxes on the money, a federal judge has ruled.

  • February 22, 2024

    Energy Credit's Cost Exclusions Flout Congress, IRS Told

    The U.S. Treasury Department and Internal Revenue Service flouted congressional intent in proposed rules for the advanced green energy manufacturing tax credit by putting forth production cost exclusions, including for direct and indirect material costs, businesses and industry groups said Thursday.

  • February 22, 2024

    IRS Agent, Gov't Attys Immune From RICO Suit, Judge Says

    An Arizona federal judge dismissed a $15 million lawsuit against an Internal Revenue Service agent and two assistant U.S. attorneys brought by an investment adviser convicted of filing false tax returns, saying Thursday the government employees were immune from claims that included racketeering and malicious prosecution.

  • February 22, 2024

    Convicted Chicago Pol Seeks Acquittal Or New Trial

    One of Chicago's longest serving and most powerful local politicians asked an Illinois federal judge Wednesday to set aside a jury's December verdict convicting him of using his official position to steer tax business to his personal law firm, saying no rational jury could have convicted him based on the evidence presented at trial.

  • February 22, 2024

    IRS Failed To Investigate Tax Exemption Abuses, Justices Told

    A group claiming the IRS has ignored abuses of tax-exempt status by certain issuers of mortgage-backed investments asked the U.S. Supreme Court to review a ruling affirming the agency's discretion, saying billions of dollars in taxable income are at stake.

  • February 21, 2024

    Irish Pub Chain's Ex-CFO Gets 1.5 Years For $1M Tax Fraud

    The former chief financial officer of a pub chain with more than a dozen Irish-themed restaurants was sentenced to one and a half years in prison Wednesday by an Ohio federal court for his role in a bookkeeping scheme that defrauded eight states of $1 million in sales taxes.

  • February 21, 2024

    Biogas Investment Tax Credit Still Needs Tweaks, IRS Told

    While the IRS clarified that the clean energy investment tax credit would cover eligible upgrading equipment integral to biogas properties, the industry could get a boost if final rules allow separate ownership of the equipment, stakeholders told the agency Wednesday.

  • February 21, 2024

    Tax Court Affirms IRS' Nix Of $20.7M Charitable Deduction

    The U.S. Tax Court affirmed on Wednesday an Internal Revenue Service decision disallowing a $20.67 million charitable contribution deduction claimed by a Georgia partnership because it failed to provide a qualified appraisal of the donated property.

  • February 21, 2024

    IRS Can Assess Tax On 20-Year-Old Income, Tax Court Says

    Taxes may still be assessed on a Missouri couple who failed to report more than $1.5 million in income from 1999 to 2004, the U.S. Tax Court ruled Wednesday.

  • February 21, 2024

    Wyden Plans Clampdown On Private Placement Life Insurance

    Senate Finance Committee Chairman Ron Wyden plans a legislative push to thwart abuse of private placement life insurance, according to a report he released Wednesday that called the arrangements a tax shelter worth at least $40 billion that benefits a small group of very wealthy people.

  • February 21, 2024

    IRS Interest Rates Will Stay Same In 2nd Quarter

    The Internal Revenue Service's interest rates for underpayments and overpayments will not change for the second quarter of 2024, the agency said Wednesday.

  • February 21, 2024

    Hunter Biden Wants Tax Case Nixed For Trump Interference

    Hunter Biden asked a California federal court to drop a set of criminal tax charges against him, saying that former President Donald Trump is improperly driving the prosecution and that politicians are "openly interfering" with the case.

  • February 21, 2024

    Sheppard Mullin Adds Ex-Foley Hoag White Collar Partner

    Sheppard Mullin Richter & Hampton LLP announced it has hired a former partner from Foley Hoag LLP who focuses his practice on white collar matters to join the firm's Washington, D.C., office.

  • February 21, 2024

    IRS Seeks Comment On Taxable Substances List Additions

    The Internal Revenue Service asked for feedback Wednesday on the potential addition of two substances to the Internal Revenue Code's list of taxable substances.

  • February 20, 2024

    Media Broker Gets 15 Months For Hiding $19.5M From IRS

    A media broker was sentenced to 15 months in prison Tuesday after admitting she concealed $19.5 million in income from the Internal Revenue Service.

  • February 20, 2024

    Ex-BigLaw Atty Avoids Prison For Ch. 11 Lies

    A former BigLaw partner on Tuesday was spared any prison time for lying to a New York bankruptcy court in his 2022 personal Chapter 11 case, in an attempt to shield his assets from creditors.

  • February 20, 2024

    Philly Woman Asks Justices To Review City's Tax Credit Policy

    Philadelphia's refusal to credit a woman's Delaware state income taxes paid against her city wage tax liabilities unconstitutionally discriminates against interstate commerce, the woman argued Tuesday in asking the U.S. Supreme Court to review a Pennsylvania Supreme Court ruling in the city's favor.

  • February 20, 2024

    Son's $63M Tax Deal Puts Diamond King's Widow In The Clear

    The federal government agreed to stop pursuing the widow of a diamond mogul to recover millions in tax liabilities connected to her husband and his estate after their adult son agreed to pay $63 million, according to a New York federal court order Tuesday.

  • February 20, 2024

    Tax Court Rejects NY Couple's Expense Deductions

    A New York couple is not able to deduct an assortment of expenses after failing to substantiate them, the U.S. Tax Court ruled Tuesday.

  • February 20, 2024

    Tax Court Nixes NYC Site's Eligible-Basis Adjustments By IRS

    Tax-exempt bond issuance costs will not be excluded from a New York City building's eligible basis for the low-income housing credit, the U.S. Tax Court ruled Tuesday.

  • February 20, 2024

    Tax Court's Chief Judge Reelected To 2nd Term

    The U.S. Tax Court's chief judge was reelected to a second two-year term as the head of the court, the Tax Court announced.

  • February 20, 2024

    Third-Party Payers Liable For Employment Tax Shortcomings

    Certain third-party payers that improperly claim employment tax credits for a client are liable for any potential underpayments, the Internal Revenue Service said in a chief counsel memorandum.

  • February 20, 2024

    IRS Issues Fix For Tax Treatment Of Gas Upgrading Equipment

    The Internal Revenue Service issued a correction clarifying the tax treatment of certain gas upgrading equipment under proposed rules related to the energy credit.

Featured Stories

  • Pillar 2 Could Clash With US Double-Dipping Loss Rules

    Natalie Olivo

    The Pillar Two international minimum tax agreement involves calculations that could trigger long-standing U.S. rules that are designed to prevent companies from what is known as double-dipping the same economic loss, raising questions about how upcoming regulations will navigate these two systems.

  • First Purely Tax Crypto Indictment Signals More On Tap

    Kat Lucero

    Federal prosecutors' first public indictment of an individual who underreported the capital gains from a nearly $4 million legal sale of bitcoin indicates that authorities have opened the floodgates for more criminal cases that deal purely with undisclosed gains on legitimate cryptocurrency transactions.

  • Lawmakers Brace For Lobbying Blitz On Expiring Tax Breaks

    Stephen K. Cooper

    Some lawmakers foresee an increase in lobbying activity this year as Congress considers renewing parts of the GOP's 2017 tax law that are approaching expiration, while efforts to address the influence of dark money in politics remain on hold.

Expert Analysis

  • 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 Investors

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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.

  • What New Calif. Strike Force Means For White Collar Crimes

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    The recently announced Central District of California strike force targeting complex corporate and securities fraud — following the Northern District of California's model — combines experienced prosecutorial leadership and partnerships with federal agencies like the IRS and FBI, and could result in an uptick in the number of cases and speed of proceedings, say attorneys at MoFo.

  • Reimagining Law Firm Culture To Break The Cycle Of Burnout

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    While attorney burnout remains a perennial issue in the legal profession, shifting post-pandemic expectations mean that law firms must adapt their office cultures to retain talent, say Kevin Henderson and Eric Pacifici at SMB Law Group.

  • The Legal Industry Needs A Cybersecurity Paradigm Shift

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    As law firms face ever-increasing risks of cyberattacks and ransomware incidents, the legal industry must implement robust cybersecurity measures and privacy-centric practices to preserve attorney-client privilege, safeguard client trust and uphold the profession’s integrity, says Ryan Paterson at Unplugged.

  • As Promised, IRS Is Coming For Crypto Tax Evaders

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    The IRS is fulfilling its promise to crack down on those who have neglected to pay taxes on cryptocurrency earnings, as demonstrated by recently imposed prison sentences, enforcement initiatives and meetings with international counterparts — suggesting a few key takeaways for taxpayer compliance, say attorneys at BakerHostetler.

  • 5 Reasons Associates Shouldn't Take A Job Just For Money

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    As a number of BigLaw firms increase salary scales for early-career attorneys, law students and lateral associates considering new job offers should weigh several key factors that may matter more than financial compensation, say Albert Tawil at Lateral Hub and Ruvin Levavi at Power Forward.

  • The Pop Culture Docket: Judge Djerassi On Super Bowl 52

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    Philadelphia Court of Common Pleas Judge Ramy Djerassi discusses how Super Bowl 52, in which the Philadelphia Eagles prevailed over the New England Patriots, provides an apt metaphor for alternative dispute resolution processes in commercial business cases.

  • Parsing Treasury's Proposed Clean Hydrogen Tax Credit Rules

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    Regulations recently proposed by the IRS and the U.S. Department of the Treasury concerning two types of tax credits for clean hydrogen production facilities should resolve many of the most pressing questions around qualification for the credits — albeit in a relatively stringent manner, say attorneys at Morgan Lewis.