Federal

  • October 15, 2021

    2010 Facebook Buy May Be Important To Transfer Pricing Trial

    Facebook's handling of its 2010 acquisition of a Malaysian firm may become more relevant as the social media giant faces off with the Internal Revenue Service over its transfer pricing practices, a U.S. Tax Court judge said in court.

  • October 15, 2021

    DC Circ. Urged To Void House Panel's Bid For Trump Docs

    A subpoena from a congressional committee seeking certain financial documents from former President Donald Trump's longtime accounting firm implicates significant separation-of-powers concerns that justify voiding the request, his attorneys told the D.C. Circuit.

  • October 15, 2021

    Global Corporate Tax Deal May Create US Treaty Puzzle

    The recently agreed-upon global corporate tax overhaul requires a multilateral treaty that could face roadblocks in the U.S. if ratification depends on traditional Senate tax treaty procedures, but alternative options for implementing it bring their own uncertainties, including constitutional questions.

  • October 15, 2021

    Wash Sale Proposal May Muddy Crypto Tax Compliance

    A proposal by Democrats to disallow tax losses from selling cryptocurrency if a substantially similar asset is repurchased within 30 days could add another layer of complexity to already-difficult digital currency tax compliance.

  • October 15, 2021

    IRS Seeks To Toss Microcaptive Firm's Request For Info

    A Tennessee federal court should toss a microcaptive insurance advisory firm's moves to find out more about how a rule imposing penalties for not following industry-specific reporting requirements was created, the Internal Revenue Service said Friday.

  • October 15, 2021

    Off-Road Motorcycle Club Denied Tax-Exempt Status

    An off-road motorcycle riding club does not qualify for tax-exempt status because it serves a purpose that isn't tax-exempt, the Internal Revenue Service said in a letter ruling released Friday.

  • October 15, 2021

    Law Firm Must Comply With IRS Summons, Court Says

    A law firm's owner must comply with an Internal Revenue Service summons for tax records of the firm's clients because he failed to establish a substantial fear that producing the documents would be incriminating, a California federal court said.

  • October 15, 2021

    IRS Says Reliance On FAQs Will Provide Penalty Defense

    Taxpayers who rely in good faith on the Internal Revenue Service's online page addressing frequently asked questions will have a defense and not be subject to certain penalties, the agency said Friday.

  • October 15, 2021

    Bereavement Support Organization Denied Tax-Exempt Status

    A corporation that provides prayer meetings and financial support to members during bereavement does not qualify for tax-exempt status because it serves a private interest, the Internal Revenue Service said in a letter ruling released Friday.

  • October 15, 2021

    Life Coaching Organization Denied Tax-Exempt Status

    An organization that offers life coaching and basic needs support does not qualify for tax-exempt status because it is involved in prohibited political activities, the Internal Revenue Service said in a letter ruling released Friday.

  • October 15, 2021

    Travel Trade Association Denied Tax-Exempt Status

    A trade association that promotes travel and tourism does not qualify for tax-exempt status because it isn't operated exclusively for tax-exempt purposes, the Internal Revenue Service said in a letter ruling released Friday.

  • October 15, 2021

    Tax Group Urges 6th Circ. To Affirm Injunction On Tax-Cut Limit

    A conservative-leaning taxpayer group urged the Sixth Circuit on Friday to uphold a federal court's injunction against a federal provision banning states from using pandemic aid to offset tax cuts, arguing the clawback portion is unconstitutionally ambiguous.

  • October 15, 2021

    Travel Tour Organization Denied Tax-Exempt Status

    A corporation that offers travel tours does not qualify for tax-exempt status because it is operating for nonexempt purposes, the Internal Revenue Service said in a letter ruling released Friday.

  • October 15, 2021

    IRS Gives Opportunity Zone Co. Extension To Fix Filing Error

    A limited liability company formed to invest in opportunity zone properties received a filing extension after its failure to self-certify as a qualified fund was determined to have been made in good faith, the Internal Revenue Service said Friday.

  • October 15, 2021

    IRS Plan To Force Small Account Reporting Illegal, 20 AGs Say

    The Internal Revenue Service's proposal to require banks and other financial institutions to report information on every account with at least $600 is illegal under constitutional protections against unreasonable search and seizure, 20 state attorneys general told the agency Friday.

  • October 15, 2021

    Period of Limitation Applies To Interest Overpayment, IRS Says

    The period of limitation for claiming a refund still applies to a refund request for the overpayment of interest on a restitution-based assessment, the Internal Revenue Service said in a written opinion released Friday.

  • October 15, 2021

    Jones Day Derides Paralegal's 'Excuses' On Serving Bias Suit

    A fired Jones Day paralegal's "feeble justifications" shouldn't win her a second chance to serve the international law firm with her discrimination and harassment suit, the firm told a Boston federal judge Friday.

  • October 15, 2021

    Weekly Internal Revenue Bulletin

    The Internal Revenue Service released its weekly bulletin, which included an updated list of countries with which the U.S. has bank deposit interest information exchange agreements.

  • October 15, 2021

    3rd Circ. Revives Tax Evader's Deportation Challenge

    The Board of Immigration Appeals incorrectly found that a piece of late 1990s legislation barred an Italian man convicted of tax evasion from deportation relief, the Third Circuit said, sending the case back to the board for further review.

  • October 15, 2021

    Man Owes $1.2M FBAR Penalty For Not Reporting 2 Accounts

    A man will pay more than $1 million for failing to report two Swiss bank accounts he maintained in the 2000s, a New York federal court has ordered.

  • October 15, 2021

    IRS Electronic Tax Administration Committee To Meet Virtually

    The Electronic Tax Administration Advisory Committee, meant to provide feedback on how the Internal Revenue Service performs its duties electronically and encourage paperless filing, will hold a virtual meeting Nov. 3, the agency said Friday.

  • October 14, 2021

    Calif. Man Can't Discharge Taxes In Bankruptcy, 9th Circ. Says

    A California man cannot escape around $45,000 in state taxes after declaring bankruptcy because he failed to report an increase in federal taxes to the state as required for the liability to be discharged, the Ninth Circuit said Thursday.

  • October 14, 2021

    1st Circ. Tosses Dispute Over Nonprofit's Housing Credit Deal

    A suit from an investment group contesting an affordable housing not-for-profit's efforts to purchase a housing tax credit project was properly dismissed by a Massachusetts federal court, the First Circuit said, ruling the lower court lacked jurisdiction.

  • October 14, 2021

    Estates' Rep Agrees To $11.2M In Tax Liabilities, Court Told

    A representative of estates in an income tax case agreed to a judgment of nearly $11.2 million in unpaid liabilities owed to the U.S. government, according to a stipulation filed with a California federal court.

  • October 14, 2021

    Gov't Goes After Conn. Estate For $1.7M In Tax Liabilities

    A Connecticut woman's estate owes the U.S. government over $1.7 million in unpaid tax liabilities from tax year 2011, just over $414,800 of which stems from a fraud penalty, the government said in a suit filed in Connecticut federal court.

Featured Stories

  • Global Corporate Tax Deal May Create US Treaty Puzzle

    Natalie Olivo

    The recently agreed-upon global corporate tax overhaul requires a multilateral treaty that could face roadblocks in the U.S. if ratification depends on traditional Senate tax treaty procedures, but alternative options for implementing it bring their own uncertainties, including constitutional questions.

  • Wash Sale Proposal May Muddy Crypto Tax Compliance

    Amy Lee Rosen

    A proposal by Democrats to disallow tax losses from selling cryptocurrency if a substantially similar asset is repurchased within 30 days could add another layer of complexity to already-difficult digital currency tax compliance.

  • 3-Step Corporate Tax Rate Gains Steam In Congress

    Alan K. Ota

    A push to pair higher corporate tax rates for big companies with lower rates for smaller businesses has gained traction in Congress, where Democrats hope to build support for a streamlined version of the pending $3.5 trillion reconciliation bill.

Expert Analysis

  • Tax-Exempt Orgs, Beware This 403(b) Plan Compliance Pitfall

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    A recent Internal Revenue Service publication puts 403(b) retirement plan sponsors on notice about a contribution aggregation compliance failure often identified in audits of government and tax-exempt entities, but risk can be minimized by ensuring plan documents and communications address the issue directly, say Greg Needles and Michael Gorman at Morgan Lewis.

  • Pandora Papers Reveal Need For Greater Tax Enforcement

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    The recent Pandora Papers leak is a reminder of the importance of transparency laws and proper funding for enforcement efforts against tax evasion as bad actors increasingly operate in the shadows, says Daren Firestone and Kevin Crenny at Levy Firestone.

  • Telehealth Providers Must Beware Of Fraud As Industry Grows

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    A recent fraud charge against a telehealth executive highlights the rise we're seeing in telefraud scams during the industry's pandemic growth, and there are some steps that all health providers should take to stay clear of potentially illegal arrangements, says LaTawnda Moore at Dinsmore.

  • Parsing New Int'l Tax Reporting Rules For Pass-Throughs

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    Attorneys at Grant Thornton unpack the Internal Revenue Service’s new pass-through entity reporting requirements for international tax matters and the accompanying guidance for penalty relief, and suggest how companies should prepare for what may be the most significant change to the partnership compliance function in decades.

  • A Look At Global Tax Enforcement Developments: Part 2

    Excerpt from Practical Guidance
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    Sean Craig at LexisNexis examines recent investigations by the Joint Chiefs of Global Tax Enforcement and their impact on U.S. taxpayers, as well as the growing significance of transfer pricing disputes and policies for future enforcement.

  • A Look At Global Tax Enforcement Developments: Part 1

    Excerpt from Practical Guidance
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    Sean Craig at LexisNexis looks at how international initiatives, such as the Joint Chiefs of Global Tax Enforcement, are addressing cryptocurrency-related tax evasion, and how the COVID-19 pandemic and increasing demands for governmental welfare programs are driving global tax policy.

  • What The Judiciary's Font Recommendations Can Teach Us

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    The D.C. Circuit's recent soft prohibition on Garamond and the ensuing debates about courts' font preferences should serve as a helpful reminder of a larger point — every departure from convention in legal writing carries some level of risk, says Spencer Short at Stradley Ronon.

  • 2 Income Tax Loopholes Congress Should Close

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    To raise revenue for proposed infrastructure improvements and make the tax law fairer, the Biden administration and Congress should close an income tax loophole that allows an asset owner to bypass capital gains tax upon death and another that essentially allows taxpayers to make tax‑free gifts to grantor trusts, says Richard Kinyon at Shartsis Friese.

  • High Points Of IRS' New Employee Retention Credit Guidance

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    Dana Fried at CohnReznick examines recent IRS guidance on the employee retention credit, which includes a helpful new rule enabling more employers to qualify for the credit by allowing them to exclude some pandemic relief from gross receipts, but its exclusion of related individuals' wages from qualified wages for certain corporate owners is disappointing.

  • Prepare For More Audits Of Tax Info And Withholding Filings

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    Financial institutions and other corporate taxpayers should focus compliance efforts on tax information reporting and withholding, given recent indications from the Biden administration that the IRS will increase enforcement, and the administration's need to fund its infrastructure plan and other costly initiatives, say attorneys at Mayer Brown.

  • 9th Circ. Adds Pressure To Reject Substance Over Form

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    The Ninth Circuit’s recent decision rejecting taxes on a family's Roth IRA payments that were made through a foreign sales corporation represents a refreshing trend among federal appeals courts to reject substance-over-form principles and instead look to congressional intent, say Lawrence Hill and Caitlin Tharp at Steptoe & Johnson.

  • How Tax Code Changes Affect State AG Settlement Talks

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    Meghan Stoppel and Gianna Puccinelli at Cozen O'Connor discuss how newly implemented tax code regulations that allow companies to deduct some payments made to resolve a government investigation or prosecution will change settlement negotiations with state attorneys general.

  • NFTs May Come With Rewards, But Also Legal Risks

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    While some buyers of nonfungible tokens are experiencing enormous returns on their investments, those just entering the market should proceed with caution, and be sure to understand the risks related to contracts, taxation, intellectual property and money laundering regulations, says Anne-Laure Alléhaut at Patterson Belknap.