Federal

  • June 20, 2024

    Dickinson Wright Brings On McDermott, Bell Nunnally Attys

    Dickinson Wright PLLC added a pair of new members who include a commercial finance and real estate attorney from Bell Nunnally & Martin LLP based in Austin, Texas, and a tax and incentives attorney from McDermott Will & Emery LLP in Fort Lauderdale, Florida.

  • June 20, 2024

    Tax Court Errs In Deeming Loans As Equity, 11th Circ. Told

    A Florida business owner deserves tax deductions on loans his companies made to residential development projects that became worthless during the Great Recession, he told the Eleventh Circuit in a bid to reverse a Tax Court decision that classified the loans as equity.

  • June 20, 2024

    Tax Preparer With $38M In Refunds Cops To S-Corp. Scam

    The owner of a tax preparation business that secured $38 million in federal refunds for customers pled guilty to helping prepare false returns and admitted he required clients to establish empty corporations to lower their tax bills illegally, according to his plea agreement in a California federal court.

  • June 20, 2024

    Repatriation Tax Doesn't Violate Constitution, Justices Rule

    The U.S. Supreme Court upheld the 2017 federal tax overhaul's mandatory repatriation levy on Thursday, finding the measure applies to the earnings of foreign corporations with U.S. shareholders and therefore does not raise constitutional questions about taxing unrealized income. 

  • June 18, 2024

    Ore. To Adopt IRS' Free E-File Program For 2025 Season

    Oregon will participate in the Internal Revenue Service's Direct File free online tax filing program when it returns for the 2025 filing season, the U.S. Department of the Treasury and the IRS announced Tuesday.

  • June 18, 2024

    Corporate Rate Revenue To Decrease After 2025, CBO Says

    Corporate income tax receipts will steadily decrease after 2025 in relation to gross domestic product due to expiration of many of the 2017 tax law's provisions, the Congressional Budget Office said in a report released Tuesday. 

  • June 18, 2024

    Tax Court Admonishes CPA For 'Unbecoming' Tax Positions

    A U.S. Tax Court judge warned a certified public accountant who challenged his $23,000 tax bill that his groundless arguments could cost him a fine, saying in an opinion Tuesday that his tax positions "are unbecoming of a CPA."

  • June 18, 2024

    Mere Mention Of Setbacks Can't Nix Penalties, Tax Court Says

    A Washington man who said he couldn't pay his taxes because he struggled to recover from financial setbacks during the pandemic didn't provide proof of his hardships, the U.S. Tax Court said Tuesday in upholding the government's collection of penalties against him.

  • June 18, 2024

    IRS Drops Two Research Credit Refund Claim Requirements

    Taxpayers submitting refund claims that include the research credit no longer need to furnish the names of people who conducted each research project or the information each person tried to find with claims postmarked as of Tuesday, the Internal Revenue Service announced.

  • June 18, 2024

    Former Tax Atty Hid Pension's $22.6M, Tax Court Says

    A former attorney who promoted himself as an expert in employee stock ownership plans failed to report nearly $22.6 million in income related to his acquisition of a furniture company's overfunded pension plan, the U.S. Tax Court ruled.

  • June 18, 2024

    Life Insurance Fraudster Deserves Tax Penalties, 7th Circ. Told

    The IRS urged the Seventh Circuit to maintain nearly $400,000 in fraud penalties assessed against an Illinois man who pled guilty to falsifying his tax returns as part of a scheme to poison his wife and collect on a $20 million life insurance policy.

  • June 18, 2024

    IRS Guidance Doesn't Perceive Spinoff Abuse, Official Says

    Recent IRS guidance limiting the corporate spinoffs that revenue officials will approve as tax-free ahead of time was designed to reflect the drafters' current views, rather than suggest perceived abuse of these transactions, a U.S. Treasury Department official said Tuesday.

  • June 18, 2024

    AbbVie Says IRS Can't Treat $1.6B Break Fee As Capital Loss

    The Internal Revenue Service cannot reclassify as a capital loss a $1.6 billion payment AbbVie made to an Irish biotechnology company after their failed merger and thereby raise the pharmaceutical giant's tax bill by $572 million, the company's attorneys told the U.S. Tax Court.

  • June 18, 2024

    Applicable Federal Interest Rates To Fall In July

    Applicable federal rates for income tax purposes will decrease in July, the Internal Revenue Service said Tuesday, reporting the first month-to-month drop since February.

  • June 18, 2024

    Treasury Finalizes Labor Rules For Bonus Energy Tax Credits

    The U.S. Treasury Department released final labor rules Tuesday for clean energy projects seeking to significantly boost the value of their tax credits, emphasizing due diligence by developers and announcing that more IRS resources will go toward enforcement of the rules.

  • June 17, 2024

    $2.1B Danish Tax Fraud Defendant Pushes For Separate Trials

    An attorney facing trial alongside his clients on allegations of filing $2.1 billion in fraudulent tax refund claims in Denmark urged a New York federal court to hear his case separately, saying disparate legal arguments could confuse a jury if only one trial is held.

  • June 17, 2024

    IRS Asks Court To Leave Alone Worker Retention Credit Pause

    An Arizona federal court should reject a tax advisory firm's request to lift the IRS' moratorium on processing claims for the pandemic-era employee retention credit, the agency argued, saying the agency should be allowed to continue to run the program as it sees fit.

  • June 17, 2024

    IRS Correctly Assessed Md. Man's Deficiency, Tax Court Says

    There were no genuine disputes of facts with the Internal Revenue Service's determination that a Maryland man had failed to file a return reporting nearly $255,000 in gross income, leading to a tax deficiency of more than $61,000, the U.S. Tax Court ruled Monday.

  • June 17, 2024

    IRS Issues Corp. Bond Monthly Yield Curve Guidance

    The Internal Revenue Service published guidance Monday on the corporate bond monthly yield curve used in calculations for defined benefit plans as well as corresponding segment rates and other related provisions.

  • June 17, 2024

    Treasury Says Partnership Crackdown Could Raise Over $50B

    A regulatory project to stop large, complex partnerships from using murky business structures to boost deductions and dodge taxes, an effort launched Monday by the U.S. Department of the Treasury and the IRS, could ultimately raise over $50 billion in a decade, Treasury said.

  • June 17, 2024

    IRS Didn't Fully Solve All IT Issues, TIGTA Says

    A review of planned corrective actions reported as closed by the Internal Revenue Service's information technology organization found one not fully implemented while another was not fully effective, the Treasury Inspector General for Tax Administration said Monday.

  • June 17, 2024

    Feds Take Hard Line On Tycoon's Pilots After He Goes Free

    Manhattan federal prosecutors asked a sentencing judge to consider aggravating circumstances for two pilots who allegedly traded on stock tips from U.K. billionaire Joe Lewis, despite not seeking a prison term for the private equity honcho and former soccer club owner.

  • June 17, 2024

    House Bill Seeks Tax Credit For Med Student Supervisors

    Some licensed medical professionals who supervise medical and nursing students during clinical rotations would be entitled to a $1,000 tax credit under a bipartisan bill introduced in the U.S. House.

  • June 17, 2024

    Marathon Ineligible For $247M Fuel Tax Refund, IRS Says

    Energy giant Marathon Petroleum isn't entitled to $247 million in tax refunds for its alternative fuel mixtures because its eligibility for the credits hadn't yet been approved by the Internal Revenue Service when it made the refund request, the agency told an Ohio federal court.

  • June 14, 2024

    Ga. CPA Admits To Role In $1.3B Tax Fraud Scheme

    After a federal jury convicted two of his co-conspirators in a landmark conservation easement tax shelter trial last year, a Georgia accountant who'd previously denied culpability elected to change course Friday and plead guilty to two felony charges.

Expert Analysis

  • Reimagining Law Firm Culture To Break The Cycle Of Burnout

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    While attorney burnout remains a perennial issue in the legal profession, shifting post-pandemic expectations mean that law firms must adapt their office cultures to retain talent, say Kevin Henderson and Eric Pacifici at SMB Law Group.

  • The Legal Industry Needs A Cybersecurity Paradigm Shift

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    As law firms face ever-increasing risks of cyberattacks and ransomware incidents, the legal industry must implement robust cybersecurity measures and privacy-centric practices to preserve attorney-client privilege, safeguard client trust and uphold the profession’s integrity, says Ryan Paterson at Unplugged.

  • As Promised, IRS Is Coming For Crypto Tax Evaders

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    The IRS is fulfilling its promise to crack down on those who have neglected to pay taxes on cryptocurrency earnings, as demonstrated by recently imposed prison sentences, enforcement initiatives and meetings with international counterparts — suggesting a few key takeaways for taxpayer compliance, say attorneys at BakerHostetler.

  • 5 Reasons Associates Shouldn't Take A Job Just For Money

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    As a number of BigLaw firms increase salary scales for early-career attorneys, law students and lateral associates considering new job offers should weigh several key factors that may matter more than financial compensation, say Albert Tawil at Lateral Hub and Ruvin Levavi at Power Forward.

  • The Pop Culture Docket: Judge Djerassi On Super Bowl 52

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    Philadelphia Court of Common Pleas Judge Ramy Djerassi discusses how Super Bowl 52, in which the Philadelphia Eagles prevailed over the New England Patriots, provides an apt metaphor for alternative dispute resolution processes in commercial business cases.

  • Parsing Treasury's Proposed Clean Hydrogen Tax Credit Rules

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    Regulations recently proposed by the IRS and the U.S. Department of the Treasury concerning two types of tax credits for clean hydrogen production facilities should resolve many of the most pressing questions around qualification for the credits — albeit in a relatively stringent manner, say attorneys at Morgan Lewis.

  • Employee Experience Strategy Can Boost Law Firm Success

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    Amid continuing business uncertainty, law firms should consider adopting a holistic employee experience strategy — prioritizing consistency, targeting signature moments and leveraging measurement tools — to maximize productivity and profitability, says Haley Revel at Calibrate Consulting.

  • 6 Practice Pointers For Pro Bono Immigration Practice

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    An attorney taking on their first pro bono immigration matter may find the law and procedures beguiling, but understanding key deadlines, the significance of individual immigration judges' rules and specialized aspects of the practice can help avoid common missteps, says Steven Malm at Haynes Boone.

  • Lessons From Country Singer's Personal Service Saga

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    Recent reports that country singer Luke Combs won a judgment against a Florida woman who didn’t receive notice of the counterfeit suit against her should serve as a reminder for attorneys on best practices for effectuating service by electronic means, say attorneys at Jenner & Block.

  • 7 E-Discovery Predictions For 2024 And Beyond

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    The legal and technical issues of e-discovery now affect virtually every lawsuit, and in the year to come, practitioners can expect practices and policies to evolve in a number of ways, from the expanded use of relevancy redactions to mandated information security provisions in protective orders, say attorneys at Littler.

  • 5 Litigation Funding Trends To Note In 2024

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    Over the next year and beyond, litigation funding will continue to evolve in ways that affect attorneys and the larger litigation landscape, from the growth of a secondary market for funded claims, to rising interest rates restricting the availability of capital, says Jeffery Lula at GLS Capital.

  • Tech CEO Tax Ruling A Warning For Forward Contracts

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    In McKelvey v. Commissioner, the U.S. Tax Court decided that deceased Monster.com founder Andrew McKelvey terminated his underlying obligations when he extended variable prepaid forward contracts, demonstrating why startup founders, early employees and investors should think carefully before amending derivative agreements, say Daren Shaver and Trent Tanzi at Hanson Bridgett.

  • 4 Legal Ethics Considerations For The New Year

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    As attorneys and clients reset for a new year, now is a good time to take a step back and review some core ethical issues that attorneys should keep front of mind in 2024, including approaching generative artificial intelligence with caution and care, and avoiding pitfalls in outside counsel guidelines, say attorneys at HWG.

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