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Federal
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May 06, 2026
Sony Reaped 'Windfall' From Illegal Tariffs, Gamers Say
Sony Interactive Entertainment LLC retained a "substantial windfall" generated by illegal tariffs imposed under the International Emergency Economic Powers Act, two Sony PlayStation console owners said Wednesday in a proposed class action in California federal court.
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May 06, 2026
Calif. Tribe Can't Get ATF's Cigarette Sales Decision Tossed
A Ninth Circuit panel determined Wednesday that federal tobacco regulators acted appropriately when placing the Twenty-Nine Palms Band of Mission Indians on a noncompliance list, concluding the tribe's remote cigarette sales to retailers of other tribes count as "off-reservation" activities covered by California state tax and licensing laws.
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May 06, 2026
Booz Allen Says Fla. Senator's Tax Leak Suit Is Too Late
U.S. Sen. Rick Scott, R-Florida, waited too long to file a lawsuit over the leak of his personal tax returns, according to federal contractor Booz Allen Hamilton, which moved to dismiss the suit Tuesday.
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May 06, 2026
Fla. Couple Sentenced For Evading $37M In Payroll Taxes
An Orlando couple were sentenced to prison for participating in a $148 million construction payroll scheme and evading more than $37 million in payroll taxes, Florida federal prosecutors announced Wednesday.
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May 06, 2026
IRS To Settle More Syndicated Easement Disputes
Eligible partnerships may soon be able to settle their disputes with the IRS over charitable tax deductions claimed on their donated conservation or historic preservation easements under an upcoming "time-limited" opportunity, the agency announced Wednesday.
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May 06, 2026
4th Circ. Appears Unpersuaded By $22M Tax Fraud Appeal
Two attorneys and an insurance agent faced a Fourth Circuit panel Wednesday that seemed hard-pressed to overturn their convictions for orchestrating a $22 million tax avoidance scheme, with the judges casting doubt on their venue objections and claims that the false tax returns contained truthful information.
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May 06, 2026
IRS Gets Protest Of Wedding Gift Penalties Narrowed
A Chinese citizen seeking a refund of penalties imposed by the IRS over a failure to report wedding gifts she received from abroad cannot argue the agency must collect the penalties through a civil action, a California federal court said, partially dismissing her suit.
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May 06, 2026
Insurers Ask To Ignore Simplified Foreign Currency Rules
The insurance industry should be allowed to ignore regulations from 2024 covering how corporations determine taxable income with respect to affiliates that conduct business in a foreign currency, the American Council of Life Insurers told the U.S. Treasury in a letter released Wednesday.
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May 06, 2026
Average US Residence Costs $554K, IRS Data Shows
The nationwide average purchase price for U.S. residences in 2026 is $553,900, an increase of $13,200 from last year, according to data the Internal Revenue Service published Wednesday.
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May 06, 2026
Investors Want Puerto Rican Opportunity Zone Safe Harbor
Investors, developers and policy organizations requested clear and timely guidance on the transition protections for existing opportunity zone investments in Puerto Rico before they expire at the end of 2027 in a letter to the U.S. Department of the Treasury released Wednesday.
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May 06, 2026
Extend Immediate Expensing For Plastic Recycling, IRS Told
Advanced plastic recycling should be eligible for a new tax perk allowing full expensing of a qualified production property's costs, a chemical trade association said in a letter, released Wednesday, recommending the industry-specific change for the IRS' upcoming proposed regulations.
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May 05, 2026
Tax Shelter Trial Defendants Claim Promoter Misled Them
More than a dozen lawyers and defendants packed a Colorado federal courtroom Tuesday to mark the first day of testimony in the trial against four individuals accused of using their businesses to help promote and sell abusive trust tax shelters.
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May 05, 2026
IRS Modifies Significant Issue Ruling Program
The IRS outlined the process for taxpayers to request rulings on one or more issues that are solely under the agency's corporate associate chief counsel's jurisdiction that involve certain tax consequences and transactions, according to guidance released Tuesday.
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May 05, 2026
Tax Court Revives Ga. Collections Case Over Notice Flaws
The U.S. Tax Court remanded a Georgia man's collections due process dispute Tuesday, saying that while he "certainly did not facilitate the consideration of his case" with the IRS Office of Appeals, the office improperly failed to consider whether he timely received notices.
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May 05, 2026
Ending Carried Interest Tax Break May Net $88B, Report Says
Ending the carried interest tax break could raise far more than previously estimated, nearly $88 billion in a decade, based on a new methodology put forward in a report by the Yale Budget Lab.
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May 05, 2026
IRS Beats Suit Claiming Secret Rule Targeted Stock Plan
A transportation company cannot pursue its claims that the IRS adopted a secret rule that targeted its stock ownership plan, a Wisconsin federal judge ruled, throwing out the company's suit.
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May 05, 2026
Limited Partners Reject Self-Employment Tax In 1st Circ.
An energy investment company told the First Circuit that its self-employment tax dispute is distinct from that of the taxpayer in a 2009 Federal Circuit ruling that barred refunds to a partnership's individual partners, saying the cases involve different subsections of U.S. income tax law.
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May 05, 2026
Wis. Village Urges 7th Circ. To Void Oneida Tribal Trust Order
A Wisconsin village is asking the Seventh Circuit to undo a U.S. Department of the Interior decision to place 500 acres of properties into trust for the Oneida Nation, arguing that a district court ignored evidence of bias and shielded the transactional record from meaningful scrutiny.
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May 05, 2026
US Ends $15M Tax Refund Fight With Gas Biz Partners
The U.S. government agreed to end litigation alleging that several Texas residents had erroneously claimed a total of about $15 million in tax refunds tied to a partnership involving gas and oil operations in Equatorial Guinea.
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May 05, 2026
IRS To Implement Digital Signatures In Penalty Approvals
The Internal Revenue Service agreed to require supervisors to use digital signatures to approve tax penalties as a way to prevent improper backdating and other edits to the approval documents, the agency watchdog said in a report released Tuesday.
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May 04, 2026
Biz Hit With Extra Penalties For Captive Insurance Deductions
A Florida business must pay additional penalties for deductions taken for microcaptive insurance expenses, the U.S. Tax Court said Monday, backing the IRS' imposition of 40% penalties for tax years 2012 through 2015.
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May 04, 2026
Ex-IRS Agent Accused Of Stealing $12M From Fuel Co.
A former Internal Revenue Service agent was arrested for allegations that he embezzled more than $12 million in his role as a chief financial officer of a New Jersey fuel company, the New Jersey U.S. Attorney's Office said.
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May 04, 2026
Ga. Partnership Defends $46M Deduction For Land Donation
A Georgia partnership defended its claimed deduction of $46 million for 235 acres donated to a land conservation group, saying the IRS wrongly disallowed the amount and determined it underpaid its 2021 taxes by $17 million.
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May 04, 2026
Tax Court Slashes $30M Deductions For Georgia Easements
The U.S. Tax Court slashed two partnerships' charitable tax deductions worth a combined $30 million for a pair of conservation easement donations, ruling Monday that the easements' outsize valuation was an attempt to make "too many fast nickels."
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May 04, 2026
Managers Of Embattled Easement Say RICO Suit Lacks Details
Investment fund managers behind a conservation easement donation whose charitable tax deduction was embroiled in litigation asked a Georgia federal court to toss a racketeering suit against them by a pair of investors, arguing the fraud claims do not match the allegations.
Expert Analysis
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Judges On AI: How Judicial Use Informs Guardrails
U.S. Magistrate Judge Maritza Dominguez Braswell at the U.S. District Court for the District of Colorado discusses why having a sense of how generative AI tools behave, where they add value, where they introduce risk and how they are reshaping the practice of law is key for today's judges.
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Presidential Pardon Brokering Can Create Risks For Attys
The emergence of an apparent “pardon shopping” marketplace, in which attorneys treat presidential pardons as a market product, may invite investigative scrutiny of counsel and potential criminal charges grounded in bribery, wire fraud and other statutes, says David Klasing at The Tax Law Offices of David W. Klasing.
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Key False Claims Act Trends From The Last Year
The False Claims Act remains a powerful enforcement tool after some record verdicts and settlements in 2025, and while traditional fraud areas remain a priority, new initiatives are raising questions about its expanding application, says Veronica Nannis at Joseph Greenwald.
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Hosting Exchange Students Makes Me A Better Lawyer
Opening my home to foreign exchange students makes me a better lawyer not just because prioritizing visiting high schoolers forces me to hone my organization and time management skills but also because sharing the study-abroad experience with newcomers and locals reconnects me to my community, says Alison Lippa at Nicolaides Fink.
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How A 1947 Tugboat Ruling May Shape Work Product In AI Era
Rapid advances in generative artificial intelligence test work-product principles first articulated in the U.S. Supreme Court’s nearly 80-year-old Hickman v. Taylor decision, as courts and ethics bodies confront whether disclosure of attorneys’ AI prompts and outputs would reveal their thought processes, say Larry Silver and Sasha Burton at Langsam Stevens.
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Navigating Privilege Law Patchwork In Dual-Purpose Comms
Three years after the U.S. Supreme Court declined to resolve a circuit split in In re: Grand Jury, federal courts remain split as to when attorney-client privilege applies to dual-purpose legal and business communications, and understanding the fragmented landscape is essential for managing risks, say attorneys at Covington.
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Cannabis Industry Faces An Inflection Point This Year
Cannabis industry developments last year — from the passage of a new wholesale tax in Michigan, to an executive order accelerating the federal rescheduling process — presage a more mature phase of legalization this year, with hardening expectations and enforcement to come, says Alex Leonowicz at Howard & Howard.
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4 Ways GCs Can Manage Growing Service Of Process Volume
As automation and arbitration increase the volume of legal filings, in-house counsel must build scalable service of process systems that strengthen corporate governance and manage risk in real time, says Paul Mathews at Corporation Service Co.
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The Law Firm Merger Diaries: Forming Measurable Ties
Relationship-building should begin as early as possible in a law firm merger, as intentional pathways to bringing people together drive collaboration, positive client response, engagements and growth, says Amie Colby at Troutman.
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3 Key Takeaways From Planned Rescheduling Of Cannabis
An executive order reviving cannabis rescheduling represents a monumental change for the industry and, while the substance will remain illegal at the federal level, introduces several benefits, including improving state-legal cannabis operators' tax treatment, lowering the industry's legal risk profile, and leaving state-regulated markets largely intact, say attorneys at Dentons.
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OFAC Sanctions Will Intensify Amid Global Tensions In 2026
The Office of Foreign Assets Control will ramp up its targeting of companies in the private equity, venture capital, real estate and legal markets in 2026, in keeping with the aggressive foreign policy approach embraced by the Trump administration in 2025, say attorneys at Holland & Knight.
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5 E-Discovery Predictions For 2026 And Beyond
2026 will likely be shaped by issues ranging from artificial intelligence regulatory turbulence to potential evidence rule changes, and e-discovery professionals will need to understand how to effectively guide the responsible and defensible adoption of emerging tools, while also ensuring effective safeguards, say attorneys at Littler.
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Judges On AI: How Courts Can Boost Access To Justice
Arizona Court of Appeals Judge Samuel A. Thumma writes that generative artificial intelligence tools offer a profound opportunity to enhance access to justice and engender public confidence in courts’ use of technology, and judges can seize this opportunity in five key ways.