Federal

  • February 08, 2024

    Idaho Woman Contests Lien Over Foreign Tax Form

    The Internal Revenue Service cannot unilaterally impose penalties for failing to timely file a tax form for U.S. citizens involved with certain foreign corporations, an Idaho woman told a federal court, asking it to declare invalid a $350,000 lien placed on her family home.

  • February 08, 2024

    IRS Electronic Tax Committee Schedules Meeting For March

    The Internal Revenue Service's Electronic Tax Administration Advisory Committee will hold its next meeting March 20, the IRS said Thursday.

  • February 07, 2024

    IRS Memo Highlights Tensions In Arm's-Length Loan Pricing

    A recent IRS advice memorandum disregards certain details about affiliated companies when treating them as unrelated businesses for the purpose of pricing an intercompany loan, raising questions about how the arm's-length standard should apply to corporate group financing arrangements.

  • February 07, 2024

    US, Telecom Co. Disagree On Taxes Owed In $283M Suit

    The federal government and a telecommunications company remain at odds over how much tax is owed following a ruling in a different case that the company wasn't entitled to a $109 million refund because it exploited a tax loophole, a Colorado federal judge heard Wednesday.

  • February 07, 2024

    US Eyes Requiring Reports On All-Cash Real Estate Transfers

    Professionals involved in real estate transfers in the U.S. would be required to report on the beneficial owners of trusts and other legal entities that receive residential property in any all-cash transactions under draft regulations released Wednesday that aim to tackle tax evasion and corruption.

  • February 07, 2024

    Ga. Man's Marital Settlement Not Deductible, Tax Court Says

    Payments made by a Georgia man to his ex-wife as part of a marital settlement do not qualify as alimony payments, preventing them from being deductible from his federal income taxes, the U.S. Tax Court ruled Wednesday.

  • February 07, 2024

    Tax Deadlines In W.Va. Postponed Following Severe Weather

    The Internal Revenue Service said Wednesday that it has postponed certain deadlines for West Virginia taxpayers affected by severe weather late last year.

  • February 07, 2024

    NC Man Failed To Pose 'Meaningful Challenge,' Tax Court Says

    A North Carolina man did not make a "meaningful challenge" to a tax liability assessed to him, the U.S. Tax Court said Wednesday, making him liable for more than $8,000.

  • February 07, 2024

    Orrick Adds Ex-Greenberg Traurig Energy Pro In Chicago

    A former Greenberg Traurig LLP shareholder has reunited with her mentor after jumping to Orrick Herrington & Sutcliffe LLP's energy and infrastructure team in Chicago.

  • February 07, 2024

    House Panel's Top Dem Floats Bill To Require Automatic IRAs

    The House Ways and Means Committee's top Democrat introduced legislation Wednesday that would expand workers' retirement coverage by requiring employers with 10 or more employees to establish a federal automatic individual retirement account program.

  • February 07, 2024

    IRS Temporarily Extends Clean Vehicles' Reporting Deadline

    The Internal Revenue Service has temporarily extended the time requirement for reporting certain information after the sale of a new clean vehicle, the agency announced Wednesday.

  • February 06, 2024

    Forfeited IRA Distribution Counts As Income, Tax Court Says

    A Kentucky pharmacist serving 30 years in federal prison for illegally dispensing pain pills must include $427,500 from a forfeited retirement account as income, the U.S. Tax Court ruled Tuesday, saying the distribution benefited him even though it was involuntary.

  • February 06, 2024

    Mosby Guilty On One Count Of Lying For Fla. Mortgage

    A federal jury in Maryland on Tuesday found former Baltimore State's Attorney Marilyn Mosby guilty of lying on mortgage applications for one of her two Florida vacation homes, but not guilty on the application for the other home.

  • February 06, 2024

    Man Can Top $25 Monthly To Pay Off Debt, Tax Court Rules

    It is not unreasonable to assume an Arkansas man has the potential to pay more than $25 per month to settle more than $100,000 in unpaid income taxes, the U.S. Tax Court ruled Tuesday.

  • February 06, 2024

    IRS Sets Additional Depreciation Deduction For Some Vehicles

    Certain vehicles placed in service in 2024 will be eligible for an additional depreciation deduction up to $20,400 for the first tax year, the Internal Revenue Service said Tuesday.

  • February 06, 2024

    Estate Of Hilton Founder's Son Challenges $1.2B Tax Bill

    The Internal Revenue Service incorrectly rejected charitable contribution deductions for bequests by the son of the Hilton hotel chain founder, the son's estate told the U.S. Tax Court as it challenged the IRS' determination of a $1.16 billion estate tax deficiency.

  • February 06, 2024

    IRS Needs Clear Goals For Special Fund, GAO Finds

    The Internal Revenue Service should establish goals for its special compliance fund to optimize the fund's performance, the Government Accountability Office said in a report published Tuesday.

  • February 06, 2024

    IRS Funding Boost Could Raise $497B, Agency Says

    The Inflation Reduction Act's investment in the Internal Revenue Service could raise $497 billion over a decade, marking a significant increase over the agency's previous estimates of how much revenue the law's funding boost would generate, the agency said Tuesday.

  • February 06, 2024

    Thomas' Yacht Trips May Be Tax Scam, Senate Probe Finds

    Billionaire Republican donor Harlan Crow may have taken illegal tax deductions for a yacht he used to entertain family and friends, including Justice Clarence Thomas of the U.S. Supreme Court, the leader of the Senate Finance Committee said Tuesday, citing new evidence.

  • February 06, 2024

    Man Gets 41 Months, Will Pay $1.3M For Foreign Tax Evasion

    A Texas man who pled guilty in 2023 to evading more than $1 million in taxes on foreign income will serve 41 months in prison and pay fines and restitution of $1.3 million, a Texas federal court ruled.

  • February 06, 2024

    Bills Would Widen Limits On Donations Of Appreciated Assets

    A pair of bills introduced in Congress on Tuesday would extend tax break restrictions on donations of appreciated assets to certain organizations.

  • February 06, 2024

    IRS Opens Applications For Taxpayer Advocacy Panel

    The Internal Revenue Service is accepting applications for its Taxpayer Advocacy Panel, the agency said Tuesday.

  • February 05, 2024

    Jackson Hewitt To Settle No-Poach Suit Over Its Franchises

    Jackson Hewitt Inc. told a New Jersey federal court that it has reached a settlement in principle with its former workers who brought a proposed class action alleging that the company's franchisees entered into an anti-competitive no-poach agreement despite the firm's previous pledge to not have or enforce such arrangements.

  • February 05, 2024

    2nd Circ. Judges Skeptical Over IRS Penalties In $380M Case

    Second Circuit judges were skeptical of the IRS' claim during oral arguments Monday that it wasn't required to verify that a supervisor had signed off on penalties for six companies in a $380 million tax scheme case, saying a plain reading of the law seemed to demand it.

  • February 05, 2024

    Colo. Woman Accused Of Tax Crimes Must Keep GPS Monitor

    A woman indicted on charges of evading $2 million in taxes must continue wearing her ankle monitor as a condition of release, a Colorado federal court ruled, after the U.S. government noted that she has a permit to work in Dubai.

Expert Analysis

  • Pro Bono Work Is Powerful Self-Help For Attorneys

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    Oct. 22-28 is Pro Bono Week, serving as a useful reminder that offering free legal help to the public can help attorneys expand their legal toolbox, forge community relationships and create human connections, despite the challenges of this kind of work, says Orlando Lopez at Culhane Meadows.

  • The Pop Culture Docket: Judge Espinosa On 'Lincoln Lawyer'

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    The murder trials in Netflix’s “The Lincoln Lawyer” illustrate the stark contrast between the ethical high ground that fosters and maintains the criminal justice system's integrity, and the ethical abyss that can undermine it, with an important reminder for all legal practitioners, say Judge Adam Espinosa and Andrew Howard at the Colorado 2nd Judicial District Court.

  • Newman Suspension Shows Need For Judicial Reform

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    The recent suspension of U.S. Circuit Judge Pauline Newman following her alleged refusal to participate in a disability inquiry reveals the need for judicial misconduct reforms to ensure that judges step down when they can no longer serve effectively, says Aliza Shatzman at The Legal Accountability Project.

  • How And Why Your Firm Should Implement Fixed-Fee Billing

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    Amid rising burnout in the legal industry and client efforts to curtail spending, pivoting to a fixed-fee billing model may improve client-attorney relationships and offer lawyers financial, logistical and stress relief — while still maintaining profit margins, say Kevin Henderson and Eric Pacifici at SMB Law Group.

  • How Law Firms Can Use Account-Based Marketing Strategies

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    Amid several evolving legal industry trends, account-based marketing can help law firms uncover additional revenue-generating opportunities with existing clients, with key considerations ranging from data analytics to relationship building, say Jennifer Ramsey at stage LLC and consultant Gina Sponzilli.

  • While Risks Exist, AI Could Transform IRS Enforcement

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    The Internal Revenue Service's recently announced use of artificial intelligence could revolutionize the agency's enforcement efforts, and transparency about its use and a forum for challenging AI findings could help mitigate fears that the technology will increase bias, say attorneys at Lewis Brisbois.

  • Strategic Succession Planning At Law Firms Is Crucial

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    Senior partners' reluctance to retire, the rise of the nonequity partner tier and generational differences in expectations are all contributing to an increasing number of departures from BigLaw, making it imperative for firms to encourage retirement among senior ranks and provide clearer leadership pathways to junior attorneys, says Laura Leopard at Leopard Solutions.

  • Maximizing Law Firm Profitability In Uncertain Times

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    As threats of an economic downturn loom, firms can boost profits by embracing the power of bottom-line management and creating an ecosystem where strategic financial oversight and robust timekeeping practices meet evolved client relations, says Shireen Hilal at Maior Strategic Consulting.

  • Enforcement Of International Tax Reporting Is Heating Up

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    Since the U.S. Supreme Court’s February decision in Bittner v. U.S. changed how penalties for failure to report offshore accounts are calculated, recent developments suggest the government is preparing to step up enforcement and vigorously pursue the collection of resulting penalties, say Daniel Silva and Agustin Ceballos at Buchalter.

  • How Gov't Agencies Will Fare In The Event Of A Shutdown

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    With a federal shutdown potentially set to begin at the end of this month, it may be useful to consider the approximate timelines that agencies such as the Federal Trade Commission and IRS have announced for curtailing operations, and potential strategies for mitigating challenges that may arise while agency functions are limited, say attorneys at Cleary.

  • IRS Notice Clarifies R&E Amortization, But Questions Remain

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    The IRS and Treasury Department’s recent notice clarifying the treatment of specified research and experimental expenditures under Section 174 provides taxpayers and practitioners with substantive guidance, but it misses the mark in delineating which expenditures are amortizable, say attorneys at Eversheds Sutherland.

  • Preparing Your Legal Department For Pillar 2 Compliance

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    Multinational entities should familiarize themselves with Pillar Two of the Organization for Economic Cooperation and Development’s BEPs 2.0 project and prepare their internal legal tracking systems for related reporting requirements that may go into effect as early as January, says Daniel Robyn at Ernst & Young.

  • What Large Language Models Mean For Document Review

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    Courts often subject parties using technology assisted review to greater scrutiny than parties conducting linear, manual document review, so parties using large language models for document review should expect even more attention, along with a corresponding need for quality control and validation, say attorneys at Sidley.

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