Federal

  • July 23, 2021

    IRS Properly Reduced Payments To Power Providers: Court

    The IRS properly reduced payments it made to public-sector power providers for interest they paid on bonds due to sequestration, the U.S. Court of Federal Claims said Friday in denying the utilities' request for millions of dollars in damages.

  • July 23, 2021

    Narrow Path Paved For Tax Rule Challenges After CIC Services

    The U.S. Supreme Court's revival of a company's case disputing an Internal Revenue Service information reporting requirement for microcaptive insurance arrangements likely won't lead to a barrage of pre-enforcement suits challenging complicated international tax rules, tax specialists said.

  • July 23, 2021

    Exam Presence Alters IRS Appeals Process, Retired Atty Says

    The expanded involvement of examiners in cases before the Internal Revenue Service Office of Appeals is changing the nature of the appeals process, and not for the better, according to a recently retired attorney.

  • July 23, 2021

    Payment Deductible Is Mitigation, Not Improvement, IRS Rules

    A payment regarding a unit of property was meant to mitigate the environmental damage from another property, not to improve the latter property, so the payment is deductible as a business expense, according to an IRS private letter ruling released Friday.

  • July 23, 2021

    No Docs, Interview Needed For Appraisal Penalty, IRS Says

    The Internal Revenue Service doesn't have to send certain documents nor conduct an interview to assess a penalty for substantial misstatements related to incorrect appraisals, the agency's Office of Chief Counsel said in an email released Friday.

  • July 23, 2021

    DOJ Financial Report Informs Deductibility Of FCA Settlements

    When settlement agreements for False Claims Act cases don't address the settlement's federal tax treatment, a U.S. Department of Justice report can determine how much is deductible, according to an email from the IRS Office of Chief Counsel released Friday.

  • July 23, 2021

    IRS Not Obliged To Impose Foreign Co. Penalty Against Spouses

    While penalties can be assessed against the spouses of people with filing requirements related to foreign corporations and partnerships, the IRS is not required to assess those penalties, the agency's Office of Chief Counsel said in an email released Friday.

  • July 23, 2021

    Couple Can't Exclude $42K Of Retirement Pay, Tax Court Says

    A couple failed to prove that over $42,000 in retirement income they didn't report was excludable from income, so they owe the tax deficiency assessed against them, the U.S. Tax Court said in a Friday opinion.

  • July 23, 2021

    IRS Seeks Comment On Stock Gift Regs, Info Return Forms

    The Internal Revenue Service said Friday that it is looking for public comment on rules for stock gifts and forms for information returns and calculating business losses.

  • July 23, 2021

    Weekly Internal Revenue Bulletin

    The Internal Revenue Service released its weekly bulletin Friday, which included guidance on the resumption of benefits for multiemployer plans that want to seek special financial assistance.

  • July 23, 2021

    House Bill Aims To Grant Credit To Protective Equipment Makers

    A bill introduced in the House of Representatives would provide a 20% tax credit for manufacturers of personal protective equipment.

  • July 23, 2021

    Day-Late IRS Tax Bill Challenge Properly Tossed, Justices Told

    The Eighth Circuit properly affirmed the U.S. Tax Court could not consider a law firm's day-late challenge to a bill, the IRS told the U.S. Supreme Court, arguing it should not take up the appeal.

  • July 23, 2021

    Biden's Tax Plans Complicate Opportunity Zone Investing

    President Joe Biden's proposals to increase taxes on long-term capital gains add an extra layer of complexity to opportunity zone investments because investors may not know the long-term tax consequences of their financial decisions.

  • July 22, 2021

    Scientist Gets 5 Years For Exporting Semiconductors To China

    A California federal judge sentenced a Los Angeles man to over five years in prison Thursday after a jury found him guilty of participating in a scheme to illegally export integrated circuits with military applications to China, defrauding U.S. chipmaker Cree Inc. out of its proprietary technology and lying to government officials.

  • July 22, 2021

    'I Trusted Michael': Ex-Client Says Avenatti Never Paid Him

    One of Michael Avenatti's former clients, who says the suspended attorney helped him win a $4 million settlement after he was paralyzed in a Los Angeles jail, told the California federal jury in Avenatti's embezzlement trial Thursday that he never received his money from the attorney he "trusted with everything."

  • July 22, 2021

    Repatriation Tax Is Constitutional, US Gov't Tells 9th Circ.

    The U.S. government on Thursday urged the Ninth Circuit to not revive a couple's challenge against the 2017 federal tax overhaul's repatriation provision, arguing the pair has mischaracterized the levy on foreign income as an unconstitutional direct tax on property.

  • July 22, 2021

    19 States, Biz Group Back Mo.'s Tax Cut Limit Suit In 8th Circ.

    A business advocacy organization and 19 states implored the Eighth Circuit on Thursday to reverse a judge's finding that Missouri lacked standing to challenge a federal law barring states from using coronavirus pandemic aid to offset net tax revenue reductions.

  • July 22, 2021

    Ariz.'s Challenge Against Fed. Tax Mandate Tossed By Judge

    A federal judge Thursday threw out Arizona's request to drop the so-called tax mandate from the most recent coronavirus pandemic aid package, finding the state didn't demonstrate that the provision was ambiguous or that the state has been harmed.

  • July 22, 2021

    Sen. Wyden Unveils Low-Income Retirement Savings Proposal

    A group of six Senate Democrats, led by Senate Finance Chairman Ron Wyden, unveiled comprehensive legislation Thursday intended to provide low-income Americans with new ways to save for retirement, including direct contributions into employer-provided savings vehicles.

  • July 22, 2021

    IRS Could Better Police CARES Act Distributions, TIGTA Says

    The Internal Revenue Service could do more to prepare its examiners for auditing early retirement distributions provided by the Coronavirus Aid, Relief and Economic Security Act, the Treasury Inspector General for Tax Administration said in a report released Thursday.

  • July 22, 2021

    McDermott Adds Tax Partners From Baker McKenzie, DLA Piper

    McDermott Will & Emery LLP has added partners from Baker McKenzie and DLA Piper to its Boston and Chicago offices to advise clients on international tax matters, the firm announced Thursday.

  • July 22, 2021

    11th Circ. Won't Revisit Decision On Maximum FBAR Penalty

    The Eleventh Circuit won't reconsider its decision that a naturalized citizen is liable for penalties from failing to report foreign bank accounts to the Internal Revenue Service, according to an order filed Thursday.

  • July 22, 2021

    Fed. Circ. Finds Judge Error Harmless In $20M Telecom Tax Suit

    A telecommunications company can't recoup nearly $20 million in taxes after the Federal Circuit ruled Thursday that although a lower court judge should have recalled witnesses who testified before he took over the case, that error was harmless.

  • July 22, 2021

    Real Estate Mogul's $25.8M Tax Refund Suit Must Continue

    A suit brought by a real estate magnate's son seeking a fiduciary income tax refund of $25.8 million must proceed because questions of fact still exist in the case, according to a recent decision in the U.S. Court of Federal Claims.

  • July 22, 2021

    Surfside Condo Collapse Spurs Push For Disaster Tax Breaks

    A drive for tax incentives designed to help homes and commercial buildings withstand hurricanes, wildfires, floods and other natural disasters has gained support on Capitol Hill after the deadly collapse of a condominium tower near Miami.

Featured Stories

  • Narrow Path Paved For Tax Rule Challenges After CIC Services

    No Photo Available

    The U.S. Supreme Court's revival of a company's case disputing an Internal Revenue Service information reporting requirement for microcaptive insurance arrangements likely won't lead to a barrage of pre-enforcement suits challenging complicated international tax rules, tax specialists said.

  • Exam Presence Alters IRS Appeals Process, Retired Atty Says

    Molly Moses

    The expanded involvement of examiners in cases before the Internal Revenue Service Office of Appeals is changing the nature of the appeals process, and not for the better, according to a recently retired attorney.

  • Biden's Tax Plans Complicate Opportunity Zone Investing

    Amy Lee Rosen

    President Joe Biden's proposals to increase taxes on long-term capital gains add an extra layer of complexity to opportunity zone investments because investors may not know the long-term tax consequences of their financial decisions.

Expert Analysis

  • NFTs May Come With Rewards, But Also Legal Risks

    Author Photo

    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.

  • Problems To Avoid When Forming Your 2nd Real Estate Fund

    Author Photo

    There are a number of considerations when moving from your first real estate fund to subsequent funds during post-pandemic growth, particularly if the aggregate regulatory assets under management of the funds exceed $110 million or if additional country jurisdictions will be involved, say Matt Ertman and Max Brunner at Allen Matkins.

  • IRS Ruling Opens Runway For Stalled Carbon Capture Deals

    Author Photo

    A recent Internal Revenue Service ruling that clarifies how multiparty ownership affects eligibility for the carbon sequestration tax credit should accelerate the pace of project financing transactions that were held up by lingering uncertainty, and should increase the pool of projects into which tax equity will consider investing, say attorneys at Orrick.

  • What Biden's Tax Proposals May Mean For Int'l Private Clients

    Author Photo

    Jennifer Wioncek and Paul D’Alessandro at Bilzin Sumberg discuss the U.S. Department of the Treasury's recently released explanation of the Biden administration's tax proposals and how the changes would affect income and wealth transfer planning for international private clients.

  • Justices Open The Door Wider For Donor Info Law Challenges

    Author Photo

    The U.S. Supreme Court’s recent decision in Americans for Prosperity Foundation v. Bonta, striking down California's requirement that charities disclose the identity of major donors, will make similar state and federal statutes more vulnerable to constitutional challenge, says Lloyd Mayer at Notre Dame Law School.

  • IRS Extension Is Partial Relief For Renewable Energy Projects

    Author Photo

    The Internal Revenue Service’s recent extension of the start-of-construction safe harbor for renewable-energy projects is welcome relief for solar companies unable to benefit from previous extensions, but it is still unclear whether a project that exceeds the deemed continuity period qualifies for a tax credit if it cannot prove continuous work, says David Burton at Norton Rose.

  • Justices Should Find California Donor Law Unconstitutional

    Author Photo

    The U.S. Supreme Court's decision in Americans for Prosperity Foundation v. Bonta should strike down a California law requiring charities to disclose their donors because the state’s interest in this information is not sufficiently compelling to overcome constitutional rights to free speech and peaceful assembly, says James Skyles at Skyles Law Group and M2M Legal.

  • US Must Boost Solar Industry To Protect Human Rights, Jobs

    Author Photo

    Recent revelations that many solar panels are made using polysilicon from the Xinjiang province of China, allegedly the site of mass forced labor and other abuses, make it all the more urgent that Congress and the Biden administration enact policies that promote American solar manufacturing in place of dumped and artificially cheap Chinese products, says Tim Brightbill at Wiley Rein.

  • What Crypto Holders Can Learn From Early-2000s Tax Scandal

    Author Photo

    The Internal Revenue Service’s recent push to gather information about cryptocurrency accounts is similar to its Swiss bank account investigations of the early 2000s, which should prompt taxpayers to consider voluntarily disclosing transactions before they are individually targeted for enforcement, say Timothy Wagner and Thomas Barnard at Baker Donelson.

  • Bipartisan Support Shows Bright Future For Carbon Capture

    Author Photo

    Recent policy proposals — from the Biden administration as well as members of Congress from both parties — promoting carbon capture, utilization and sequestration suggest that this technology has a key role to play in reducing carbon dioxide emissions, says Kevin Poloncarz at Covington.

  • International Tax Reform's Implications For Transfer Pricing

    Author Photo

    As the Organization for Economic Cooperation and Development overhauls the global tax rules on base erosion and profit shifting, and the Biden administration rolls out new U.S. tax proposals, multinational enterprises need to prepare for the effects of these tax changes on their transfer pricing structures, say Mandy Li and Shuang Feng at MGO.

  • Justices' Preemptive Tax Challenge Ruling Shows Divisions

    Author Photo

    The U.S. Supreme Court's recent decision in CIC Services v. Internal Revenue Service reveals divisions among the justices about when potentially burdensome tax regulations can be challenged, making the holding less clear and less valuable, say George Isaacson and David Swetnam-Burland at Brann & Isaacson.

  • Takeaways From 2 New FBAR Rulings

    Author Photo

    In light of two recent California federal court decisions, capping penalties for nonwillful violations of foreign bank account reporting but broadening the willfulness standard, U.S. taxpayers must be vigilant about understanding their reporting obligations, and prepare for the Internal Revenue Service to target willful conduct, which yields much higher penalties, say Friedemann Thomma and Marianna Felshtiner at Venable.