Federal
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January 23, 2026
Senate To Take Up Spending Bills With $11.2B IRS Funding
The U.S. Senate is poised to take up bills next week that would provide the IRS with an $11.2 billion budget — a 9% annual cut — and cut $11.7 billion from the IRS spending boost included in the Inflation Reduction Act.
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January 23, 2026
IRS Says Overtime Tax Break Is Pegged To FLSA
Eligibility for a new tax deduction for overtime compensation is based on definitions provided in the Fair Labor Standards Act, the IRS said Friday, spelling out who can claim the tax break and what pay qualifies.
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January 23, 2026
Tax Pros Warn Of Turbulent 2026 Filing Season Ahead
The 2026 tax filing season likely will be characterized by filing delays, processing backlogs and widespread confusion, tax experts and former IRS commissioners warn, despite promises from federal officials to smoothly deliver billions in new tax benefits with better service, updated forms and modernized systems.
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January 23, 2026
Japan Adopts Global Min. Tax Tweak Exempting US Cos.
Japan approved changes to its minimum corporate tax regime to exempt U.S. companies from key aspects of the international rules following the renegotiation of Pillar Two, the Japanese government said Friday.
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January 22, 2026
Goldstein Prosecutors Unveil Conflicting Cash Source Claims
A former lawyer at SCOTUSblog founder Thomas Goldstein's firm said Thursday that Goldstein told coworkers that the more than $960,000 in cash he brought off a flight from Hong Kong — the source of which is integral to the government's case — had come from a client.
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January 22, 2026
Facts of IRS, Couple's Agreement Differ, Tax Court Says
A dispute over the details of an agreement between the Internal Revenue Service and a couple in a collection due process case bar the U.S. Tax Court from granting summary judgment to either party, the Tax Court said Thursday.
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January 22, 2026
Man Can't Blame Tax Preparer For Failure To File, IRS Says
A man found to have received income by using his company's cash as his own can't escape penalties by blaming his tax preparer for his failure to file, the government told the U.S. Tax Court.
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January 22, 2026
Judge Severs Tax Charges From Ex-Rep's Foreign Agent Case
A former Florida congressman will get to contest tax charges against him separately from a criminal indictment alleging he and a political consultant failed to register as foreign agents while lobbying on behalf of Venezuela's state oil company, a federal judge ruled.
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January 22, 2026
Digital Services Taxes May Give Leverage In US Trade Deals
As President Donald Trump and his administration continue to negotiate with trading partners seeking to lower tariff rates, countries with digital services taxes could find those measures build some leverage with U.S. negotiators aiming to eliminate them.
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January 22, 2026
Tax Court Grants Spousal Relief To Doc In Abuse-Tainted Case
The U.S. Tax Court granted full innocent spouse relief to a Massachusetts physician facing a six-figure tax bill after her husband made withdrawals from her retirement account, saying Thursday it would be inequitable for her to be liable after suffering years of abuse.
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January 21, 2026
Hospital Ineligible For $11.5M COVID Tax Credit, Gov't Says
A hospital forced to suspend its normal business as it responded to the COVID-19 pandemic isn't entitled to an $11.5 million tax refund for employee retention credits and its lawsuit should be thrown out, the U.S. government told a Washington federal court.
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January 21, 2026
3rd Circ. Questions Mushroom Farmer's Tax Bill Accounting
A Third Circuit panel appeared skeptical Wednesday of a woman's bid to reduce her prison term for tax violations connected to her family's mushroom farm, with judges suggesting that different swaths of taxes she failed to pay the government could be grouped together as "relevant conduct" under federal sentencing guidelines.
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January 21, 2026
$30M In Tax Fraud Penalties Required Juries, High Court Told
A think tank and a legal center threw their support Wednesday behind a group of taxpayers asking the U.S. Supreme Court to find that the IRS violated their rights to a jury trial when it slapped them with more than $30 million in penalties for tax fraud.
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January 21, 2026
Trump Backs Off Tariffs Over Greenland With Deal In Works
President Donald Trump announced Wednesday he will back down from tariff threats on European countries in an effort to acquire Greenland after reaching an agreement on a framework for a deal involving U.S. security interests in the Arctic region.
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January 21, 2026
IRS Urged To Give IP Relief For Energy Manufacturing Credit
Intellectual property licensing deals shouldn't trigger foreign-entity restrictions barring access to the advanced manufacturing tax credit for clean-energy parts when the components at issue are merely byproducts of the licensed production process, Miller & Chevalier attorneys told the U.S. Treasury Department and the IRS.
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January 21, 2026
Energy Co. Wants Tariffs Excluded From Tax Credit
A Wisconsin energy company asked the U.S. Treasury Department to exclude tariffs from a new calculation of eligibility for clean energy tax credits, saying shifting federal policy on the levies could threaten the incentive to make major investments domestically.
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January 20, 2026
Goldstein Poker Pals Got Money From Firm, Witness Says
A former office manager at Thomas Goldstein's law firm Tuesday told the jury in his tax fraud trial in Maryland federal court that hundreds of thousands of dollars in wire transfers sent to the U.S. Supreme Court lawyer's poker counterparts were classified as business transactions in documents used by the firm's tax accountants.
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January 20, 2026
Law360 Names Firms Of The Year
Eight law firms have earned spots as Law360's Firms of the Year, with 48 Practice Group of the Year awards among them, achieving milestones such as high-profile litigation wins at the U.S. Supreme Court and 11-figure merger deals.
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January 20, 2026
Treasury Officials Warn Of Hurdles In 'Trump Account' Rollout
The U.S. Department of the Treasury is racing to open a new retirement savings program for children known as Trump Accounts by early July, and officials are warning that the effort will require a massive undertaking to deliver seed payments and build nationwide systems to track eligibility and contributions.
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January 20, 2026
IRS Can't Probe Partner-Tier Employment Taxes, 1st Circ. Told
The IRS is not authorized to scrutinize a partner's taxable net earnings at the business-entity level under a 1982 law governing partnership audits, an energy investment firm told the First Circuit, challenging the agency's bid to subject limited partners to the self-employment tax.
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January 20, 2026
IRS Funding Boost Faces $11.7B Cut In Bipartisan Package
Congress would cut $11.7 billion from the IRS spending boost included in the Inflation Reduction Act under a bipartisan, bicameral spending package released Tuesday by the House and Senate Appropriations committees.
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January 20, 2026
Tax Court Wrongly Cut Conservation Gift Value, 4th Circ. Told
The U.S. Tax Court made multiple errors when it reduced the value of rock-rich land underlying a North Carolina partnership's conservation easement donation, the partnership told the Fourth Circuit, urging it to at least reverse penalties imposed by the court as a result of its findings.
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January 16, 2026
Law360 Names Practice Groups Of The Year
Law360 would like to congratulate the winners of its Practice Groups of the Year awards for 2025, which honor the attorney teams behind litigation wins and significant transaction work that resonated throughout the legal industry this past year.
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January 18, 2026
Trump Threatens 10% Tariff To Goad EU Nations On Greenland
President Donald Trump said he would impose a 10% tariff on several countries in the European Union beginning Feb. 1 as a way to build pressure toward his goal for the U.S. to purchase Greenland, according to a social media post.
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January 17, 2026
5th Circ. OKs Self-Employment Tax Break For Limited Partners
Business partners with limited liability under state law are excluded from the federal self-employment tax, a Fifth Circuit panel ruled, siding with a management consulting firm in its long-running controversy over the levy's limited-partner exception.
Expert Analysis
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Nonprofits Face Uncertainty Over Political Activity Rules
Two federal court decisions suggesting that the Internal Revenue Service's rules for 501(c)(4) organizations' political activity may be too vague to survive constitutional scrutiny leave nonprofit organizations caught between constitutional limits on government regulation of speech and tax limits on their exempt status, say attorneys at BakerHostetler.
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Supreme Court Term Limits Would Carry Hidden Risk
While proposals for limiting the terms of U.S. Supreme Court justices are popular, a steady stream of relatively young, highly marketable ex-justices with unique knowledge and influence entering the marketplace of law and politics could create new problems, say Michael Broyde at Emory University and Hayden Hall at the U.S. Bankruptcy Court for the District of Delaware.
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Tariffs And Trade Volatility Drove 2025 Bankruptcy Wave
The Trump administration's tariff regime has reshaped the commercial restructuring landscape this year, with an increased number of bankruptcy filings showing how tariffs are influencing first‑day narratives, debtor-in-possession terms and case strategies, say attorneys at Thompson Hine.
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AI Evidence Rule Tweaks Encourage Judicial Guardrails
Recent additions to a committee note on proposed Rule of Evidence 707 — governing evidence generated by artificial intelligence — seek to mitigate potential dangers that may arise once machine outputs are introduced at trial, encouraging judges to perform critical gatekeeping functions, say attorneys at Lankler Siffert & Wohl.
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The Law Firm Merger Diaries: Getting The Message Across
Communications and brand strategy during a law firm merger represent a crucial thread that runs through every stage of a combination and should include clear messaging, leverage modern marketing tools and embrace the chance to evolve, says Ashley Horne at Womble Bond.
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Horizontal Stare Decisis Should Not Be Casually Discarded
Eliminating the so-called law of the circuit doctrine — as recently proposed by a Fifth Circuit judge, echoing Justice Neil Gorsuch’s concurrence in Loper Bright — would undermine public confidence in the judiciary’s independence and create costly uncertainty for litigants, says Lawrence Bluestone at Genova Burns.
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10 Commandments For Agentic AI Tools In The Legal Industry
Though agentic artificial intelligence has demonstrated significant promise for optimizing legal work, it presents numerous risks, so specific ethical obligations should be built into the knowledge base of every agentic AI tool used in the legal industry, says Steven Cordero at Akerman LLP.
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A Close Look At The Evolving Interval Fund Space
Interval funds — closed-end registered investment companies that make periodic repurchase offers — have recently moved to the center of the conversation about retail access to private markets, spurred along by President Donald Trump's August executive order incorporating alternative assets into 401(k) plans and target date strategies, say attorneys at Simpson Thacher.
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The Law Firm Merger Diaries: How To Build On Cultural Fit
Law firm mergers should start with people, then move to strategy: A two-level screening that puts finding a cultural fit at the pinnacle of the process can unearth shared values that are instrumental to deciding to move forward with a combination, says Matthew Madsen at Harrison.
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Rare Tariff Authority May Boost US Battery Manufacturing
Finalizing preliminary tariffs on active anode material from China — the result of a rare exercise of statutory authority finding that foreign dumping hampered the development of a nascent U.S. industry — should help domestic battery manufacturing, but potential price increases could discourage related clean-energy use, say attorneys at MoloLamken.
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Considerations When Invoking The Common-Interest Privilege
To successfully leverage the common-interest doctrine in a multiparty transaction or complex litigation, practitioners should be able to demonstrate that the parties intended for it to apply, that an underlying privilege like attorney-client has attached, and guard against disclosures that could waive privilege and defeat its purpose, say attorneys at DLA Piper.
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The Law Firm Merger Diaries: Making The Case To Combine
When making the decision to merge, law firm leaders must factor in strategic alignment, cultural compatibility and leadership commitment in order to build a compelling case for combining firms to achieve shared goals and long-term success, says Kevin McLaughlin at UB Greensfelder.
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What To Watch As NY LLC Transparency Act Is Stuck In Limbo
Just about a month before it's set to take effect, the status of the New York LLC Transparency Act remains murky because of a pending amendment and the lack of recent regulatory attention in New York, but business owners should at least prepare for the possibility of having to comply, says Jonathan Wilson at Buchalter.