Federal

  • August 12, 2022

    Construction Co. Owner Indicted For $4.4M Tax Fraud

    A Massachusetts construction company owner bilked the federal government out of $4.4 million in tax revenue by operating an "off-the-books" cash payroll, prosecutors announced Friday.

  • August 12, 2022

    House Panel Asks DC Circ. For Prompt Access To Trump Taxes

    The D.C. Circuit should require the immediate release of former President Donald Trump's tax returns to a Democratic-led House committee after the court determined he can't withhold them, the committee said, arguing it's losing time to act on the filings.

  • August 12, 2022

    Trump Warrant Shows Espionage, Obstruction Investigation

    Former President Donald Trump is under investigation for obstruction of justice and potential violations of the Espionage Act, according to a search warrant for his Mar-a-Lago property unsealed Friday afternoon.

  • August 12, 2022

    Taxation With Representation: Kirkland, Simpson Thacher, Wachtell, Cravath

    In this week's Taxation With Representation, Vista Equity will acquire Avalara, Pfizer will acquire Global Blood Therapeutics, Partners Group Inc. will sell 50% of United States Infrastructure, and Cox Enterprises will purchase Axios Media.

  • August 12, 2022

    Weekly Internal Revenue Bulletin

    The Internal Revenue Service released its weekly bulletin, including updated rules for the agency to set fees for making certain statistical studies to specify that the IRS will charge preparation fees only for studies that don't primarily benefit the public.

  • August 12, 2022

    Trump Org. CFO Ordered To Face Charges At Oct. Trial

    A New York state judge on Friday largely rejected an attempt by the Trump Organization and its longtime finance chief Allen Weisselberg to escape tax fraud charges, setting a trial date for Oct. 24 in Manhattan.

  • August 11, 2022

    Wyden Presses Amgen For Details On Tax Practices

    The Senate's top tax writer pressed Amgen's top executive for answers on its tax practices Thursday, saying exploiting subsidiaries in Puerto Rico and other low-tax jurisdictions appears to have been a long-standing practice for the drugmaker.

  • August 11, 2022

    IRS Boost Shouldn't Mean Middle-Income Scrutiny, Yellen Says

    Internal Revenue Commissioner Chuck Rettig shouldn't use any additional resources the agency received under the Senate-approved tax, climate and health care legislation to increase audits on earners making less than $400,000, Treasury Secretary Janet Yellen said in a letter.

  • August 11, 2022

    5th Circ. Denies Estate Penalty Refunds For Foreign Trust

    The Fifth Circuit affirmed Thursday that a man's estate isn't owed about $690,000 in refunds over foreign trust reporting penalties he paid regarding a foundation he formed because he could've foreseen it was a foreign trust.

  • August 11, 2022

    Mich. Wins Chance To Tax Tribe's Members Off-Reservation

    A federal judge on Thursday amended an injunction that prevented Michigan from collecting use tax from members of an American Indian tribe both inside and outside its tribal boundaries, saying state law could allow apportionment for off-reservation taxation of tribal members.

  • August 11, 2022

    Thermostat Co. To Pay $1M For Ex-Employees' Charity Fraud

    A Springfield, Missouri, thermostat company has agreed to pay back the roughly $1 million it obtained through a nearly decadelong alleged scheme by two former executives to embezzle money from a charity, the federal government announced Thursday.

  • August 11, 2022

    Oil Trading Co. Not Entitled To $6M In Tax Credits, US Says

    An oil trading company isn't entitled to more than $6 million in excise tax credits for alcohol fuel mixtures because the Internal Revenue Service appropriately found it didn't qualify, the federal government told a New York federal court

  • August 11, 2022

    Couple Denied Another Shot At $1.3M Deduction For Donation

    A Texas federal court declined to revisit its determination that a couple aren't entitled to a nearly $1.3 million deduction for a donation of partnership interest, finding again that the paperwork backing the tax claim was lacking.

  • August 11, 2022

    Garland Defends FBI, Moves To Unseal Trump Search Warrant

    U.S. Attorney General Merrick Garland on Thursday forcefully defended the FBI following its raid that seized government documents from Donald Trump's Mar-a-Lago resort, taking personal responsibility for the decision as he moved to unseal records that could shed light on the search.

  • August 10, 2022

    Tax Court Wrong To Entertain $60M Tipster Case, DC Circ. Told

    The U.S. Tax Court should have never considered a man's challenge to the denial of a whistleblower award for information he gave relating to an improper $60 million tax deduction, the federal government told the D.C. Circuit on Wednesday.

  • August 10, 2022

    Latino Plant Workers Get Class Cert. In IRS 'Steak Out' Suit

    Latino workers accusing immigration officials of violating their constitutional rights during a federal raid at a meatpacking plant can proceed in their lawsuit as a class after a Tennessee federal judge said any ruling applicable to one plaintiff would apply to about a hundred others.

  • August 10, 2022

    7 Taxpayer Advocacy Committees To Meet In September

    Seven committees under the Internal Revenue Service's Taxpayer Advocacy Panel will meet in September, the agency said in a notice published Wednesday.

  • August 10, 2022

    Cos. May Face Headaches Whatever Global Tax Plan's Fate

    Multinational corporations awaiting the outcome of a massive global tax rewrite can likely expect either new profit allocation rules or a patchwork of unilateral measures designed to increase the tax take for market countries — and compliance headaches under each alternative.

  • August 10, 2022

    Royal Bank Of Canada Settles Ex-VP's Tax Tipster Suit

    The Royal Bank of Canada agreed to settle a suit brought by a former senior vice president of subsidiary City National Bank accusing CNB of tax fraud, according to court documents filed in a California federal court.

  • August 10, 2022

    IRS Looks For New Deputy Chief Of Appeals

    The Internal Revenue Service said Wednesday that it is accepting applications for a position advising the agency's chief of appeals.

  • August 10, 2022

    IRS Extends Return Deadlines For Storm Victims In Missouri

    The Internal Revenue Service announced Wednesday that it will push back filing and payment deadlines for storm and flooding victims in certain parts of Missouri.

  • August 09, 2022

    DOJ's Daring Mar-A-Lago Raid Amps Up Pressure On Garland

    The FBI's Monday raid on Donald Trump's Mar-a-Lago resort could lead to classified-materials charges that some experts likened to Al Capone's tax fraud rap — if Attorney General Merrick Garland makes the unprecedented decision to indict a former president.

  • August 09, 2022

    Senators Nix Measures Seen As Anti-Immigrant In Budget Bill

    Immigration advocates were relieved to see the U.S. Senate drop proposals they viewed as anti-immigrant in the budget reconciliation bill for fiscal year 2022, but the absence of pro-immigration measures means missed opportunities to pass permanent solutions for people in limbo, such as Afghan evacuees and the so-called Dreamers.

  • August 09, 2022

    Mylan Gets Industry Aid In $50M Tax Fight At 3rd Circ.

    A generic-drug manufacturer trade group told the Third Circuit on Monday that taxing patent litigation costs related to the expedited approval process for generic drugs would undermine the purpose of the Hatch-Waxman Act that set up that process, driving up costs for consumers.

  • August 09, 2022

    Senate To Exclude Some Spectrum Buys From New Tax

    The U.S. Senate has agreed to allow wireless companies to deduct the costs they've incurred buying up spectrum licenses from their net income if they fall under a new corporate minimum tax, but for now, the deduction wouldn't apply to purchases going forward.

Featured Stories

  • Dem Tax Bill Keeps Flawed Loss Limit, Undoing COVID Aid

    Stephen K. Cooper

    Senate lawmakers could have fixed a glitch from the 2017 tax overhaul limiting how wealthy investors and pass-through businesses use losses, but instead opted to expand the provision, essentially reversing a tax incentive handed out during the height of the pandemic.

  • Cos. May Face Headaches Whatever Global Tax Plan's Fate

    Natalie Olivo

    Multinational corporations awaiting the outcome of a massive global tax rewrite can likely expect either new profit allocation rules or a patchwork of unilateral measures designed to increase the tax take for market countries — and compliance headaches under each alternative.

  • DOJ's Daring Mar-A-Lago Raid Amps Up Pressure On Garland

    No Photo Available

    The FBI's Monday raid on Donald Trump's Mar-a-Lago resort could lead to classified-materials charges that some experts likened to Al Capone's tax fraud rap — if Attorney General Merrick Garland makes the unprecedented decision to indict a former president.

Expert Analysis

  • Lessons For Federal Lawmakers As Calif. Alters Cannabis Tax

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    California recently eliminated a cultivation tax that had for years burdened the state’s licensed cannabis market, providing important lessons for federal lawmakers on cumbersome regulations and unduly high taxes as they debate legalization, says Raza Lawrence at Zuber Lawler.

  • Tips On Qualified Small Business Stock Exclusions

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    While awaiting more Internal Revenue Service guidance on the maze of requirements a taxpayer must satisfy for the qualified small business stock exclusion, there are steps proactive taxpayers can take to ensure their ability to establish their qualifications if they are audited, says Stephen Josey at Kostelanetz & Fink.

  • Inside The OECD Transfer Pricing Documentation Guidance

    Excerpt from Practical Guidance
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    The Organization for Economic Cooperation and Development's recently modified documentation guidelines can assist tax administrations in developing requirements for transfer pricing risk assessments and evaluations, and help multinational entity taxpayers demonstrate satisfaction of the arm's-length principle, says Neil Aragones at Lexis Tax.

  • Superfund Tax Is Back: Implications For Chemical Industry

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    In light of the Internal Revenue Service's recently issued guidance on the reinstated Superfund tax, manufacturers, producers and importers should review their existing agreements that involve taxable chemicals and substances to determine who will be commercially responsible for the tax, say attorneys at Eversheds Sutherland.

  • Tech Co.'s Suit May Create Hurdles For Research Tax Credits

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    The recently filed U.S. Tax Court case Perficient v. Commissioner — challenging standards under research credit regulations that determine whether research is funded by any grant or contract — could make it difficult to substantiate research tax credits, say Dennis St. Martin and Kevin Benton at Grant Thornton.

  • Expected Retirement Law Changes May Spark ERISA Suits

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    As Congress is poised to pass bipartisan retirement legislation that could bring collective investment trusts and 403(b) plans together and may form a new wave of litigation under the Employee Retirement Security Act, it is helpful to review the important roles that they have played in prior waves of ERISA excessive fee cases, say attorneys at King & Spalding.

  • A Close Look At The Decentralized Effort To Tax Digital Assets

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    Clarity on taxation is one of the biggest hurdles to mass adoption of cryptocurrency, and although digital asset innovation has consistently outpaced worldwide government regulation, recent efforts in the U.S. and elsewhere hint at an emerging standard, says Joshua Smeltzer at Gray Reed.

  • Lessons From The SEC's Largest-Ever Audit Firm Penalty

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    The U.S. Securities and Exchange Commission's recent $100 million settlement over professional test cheating with Ernst & Young — the largest ever in an audit firm case — points to important ramifications for any entity responding to an SEC inquiry, say attorneys at Cleary.

  • Navigating The IRS Pre-Audit Retirement Plan Pilot Program

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    The Internal Revenue Service launched a Pre-Examination Compliance Pilot program for retirement plans last month that gives sponsors and administrators 90 days to self-correct errors and avoid audits, and while several details are unclear, there are important steps to take at this time, say attorneys at Ice Miller.

  • Key Takeaways From IRS Reversal On FDII Stance

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    The Internal Revenue Service's recent memo regarding allocation of deferred compensation expenses for purposes of foreign-derived intangible income is a departure from the agency's previous position and may have implications beyond the context of deferred compensation, say attorneys at Miller & Chevalier.

  • How To Address Research Expenditures Amid Uncertainty

    Taxpayers need to prepare for the significant technical and compliance challenges of following Internal Revenue Code Section 174's new rules for experimentation expenditure capitalization and amortization, notwithstanding the rules' unresolved legislative future, say tax advisers at Grant Thornton.

  • LeClairRyan Bankruptcy Highlights Pass-Through Tax Issue

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    A Virginia bankruptcy court's recent ruling in the case of defunct law firm LeClairRyan shows there may be serious tax consequences for pass-through entity partners who give up their ownership interest without following operating agreement exit provisions and updating bankruptcy court filings, say Edward Schnitzer and Hannah Travaglini at Montgomery McCracken.

  • Tax, Social Services And The Need For An IRS Overhaul

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    Revamping the Internal Revenue Service should start with visibly improving taxpayer experiences to help pave the way for other fundamental changes needed to address the recent drop in audit numbers, personnel losses, burdens of its increasing expansion into social services and other problems, says Rice University fellow Joyce Beebe.