Federal
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September 18, 2025
IRS Leaked Private Info To News Outlets, Agency Official Says
An IRS official serving as head of the agency's Large Business and International Division who was placed on leave accused the agency of unlawfully leaking information on her employment status to news outlets including Fox News and Bloomberg, according to a complaint filed Thursday in D.C. federal court.
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September 17, 2025
Tribal Members Tell 9th Circ. Tariff Suit Belongs In Fed. Court
Counsel for members of the Blackfeet Nation tribe told the Ninth Circuit on Wednesday their suit challenging President Donald Trump's emergency tariffs should stay in federal district courts, where constitutional and congressional claims over tribal commerce must be heard.
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September 17, 2025
Democrats Push Wealth Tax Targeting Billionaires' Assets
Billionaires would pay higher taxes on their unrealized gains from property, stocks and other valuable assets under legislation reintroduced Wednesday by Senate Finance Committee ranking member Ron Wyden and other congressional Democrats.
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September 17, 2025
House Panel OKs Bill To Expand Tax Court's Subpoena Power
The House Ways and Means Committee unanimously approved legislation Wednesday that would grant the U.S. Tax Court the power to issue subpoenas without connection to a scheduled hearing and apply mandatory recusal rules to its judges.
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September 17, 2025
IRS-ICE Pact Allows For Mass Tax Data Swaps, DC Circ. Told
An information sharing agreement between the IRS and immigration enforcement agencies allows for disclosure of confidential tax information on a mass scale, as evidenced by an IRS official's declaration in a taxpayer group's suit, immigration advocacy groups challenging the agreement told the D.C. Circuit on Wednesday.
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September 17, 2025
Partners Barred From Fighting Deal In $54M Easement Suit
Dozens of investment partners were barred from challenging a settlement with the IRS over their disputed $54 million conservation easement deduction under a U.S. Tax Court ruling Wednesday that found they waited until the last minute and didn't show why they should be allowed to participate in proceedings.
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September 17, 2025
Spencer Fane Adds Corporate, RE Attys In The Midwest
Spencer Fane LLP announced the addition of two new attorneys in the Midwest this week — a partner joining its corporate and business transactions group and a counsel joining its real estate group.
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September 17, 2025
11th Circ. Finds Couple On Hook For Penalty On Back Taxes
A couple who owed $1.7 million in back taxes is on the hook for a penalty after the Eleventh Circuit rejected their dual claims that an Internal Revenue Service supervisor failed to correctly approve the penalty and that U.S. Tax Court judges have unconstitutional job protections.
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September 17, 2025
IRS Spent $40M On Outdated Computer Systems, TIGTA Says
A decade-old plan at the Internal Revenue Service to consolidate dozens of computer systems has made little progress, the Treasury Inspector General for Tax Administration said Wednesday, reporting that the agency spent nearly $40 million last year on maintaining outdated systems.
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September 16, 2025
$300M Hyatt Rewards Tax Ruling Criticized By 7th Circ. Judge
A Seventh Circuit judge took issue Tuesday with a U.S. Tax Court's finding that Hyatt should report $300 million in rewards program fund revenue, saying the decision seemed to focus on a factor that was shot down by decades-old legal precedent.
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September 16, 2025
Avalara Investors' Claims Pass Muster After 9th Circ. Revival
A Washington federal judge has allowed a proposed class action to proceed accusing tax software company Avalara Inc. of misleading investors ahead of an $8.4 billion deal to take the company private, but said the suit failed to adequately allege negligence by individual board members, giving investors one week to amend those claims.
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September 16, 2025
Tax-Exempt Hospitals Face Financial Duress, Panel Hears
The nation's nonprofit hospitals are under growing financial stress due to cutbacks in federal funding, an aging population and unnecessary spending on programs unrelated to providing healthcare to their communities, industry experts told lawmakers Tuesday at a congressional hearing.
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September 16, 2025
Tax Court's Petition Deadline Is Flexible, 1st Circ. Told
A taxpayer advocacy group urged the First Circuit on Tuesday to become the fourth appellate court to find that the deadline for filing a petition in the U.S. Tax Court can be extended to create fairness, arguing that the deadline is not a jurisdictional bar.
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September 16, 2025
Loeb & Loeb Opens DC-Area Office With Ex-Reed Smith Attys
Loeb & Loeb LLP announced Tuesday the opening of a new office in Virginia, along with the arrival of an eight-person private client and tax controversy staff formerly of Reed Smith LLP.
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September 16, 2025
House Panel To Weigh Greater Subpoena Power For Tax Court
House lawmakers are scheduled to consider a bill Wednesday that would grant the U.S. Tax Court the power to issue subpoenas without connection to a scheduled hearing and would apply mandatory recusal rules to its judges, the Joint Committee on Taxation reported Tuesday.
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September 16, 2025
Brewer Denounces Gov't Home Distilling Ban In 6th Circ.
A brewery owner challenging the U.S. tax code's ban on home distilleries criticized the government's claim that he isn't hurt enough by the prohibition to warrant a suit, telling the Sixth Circuit that the ban prevents him from making whiskey at home and renders him ineligible for a distilling permit.
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September 16, 2025
IRS Adds 39 Items To Taxable Chemical Substances
The Internal Revenue Service added 39 chemical substances to its list of those subject to Superfund excise taxes assessed to importers, the agency said Tuesday.
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September 15, 2025
IRS Finalizes Retirement Savings Catch-Up Rules
The IRS released final regulations Monday that would allow workers reaching retirement age to catch up on their savings by making additional contributions above the annual limits to their employer-sponsored retirement plans, including a requirement for high earners to designate those additional funds as Roth contributions.
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September 15, 2025
Tainted Evidence Sank Atty's Tax Court Case, 6th Circ. Told
The U.S. Tax Court relied on tainted evidence from the IRS when it affirmed the agency's denial of an Ohio attorney's attempt to deduct a theft loss and related legal expenses, he told the Sixth Circuit, urging it to reverse the lower court's ruling.
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September 15, 2025
IRS Updates Corp. Bond Monthly Yield Curve For September
The IRS on Monday updated the corporate bond monthly yield curve used in calculations for defined benefit plans for September, as well as corresponding segment rates and other related provisions.
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September 15, 2025
US, China Agree On TikTok Ownership Transfer, Bessent Says
The U.S. and China established a commercial framework for a deal with video sharing giant TikTok to transfer ownership of the app to the U.S., just days before a deadline to sell the app or shut it down, U.S. Treasury Secretary Scott Bessent told reporters at a press conference in Madrid on Monday.
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September 15, 2025
McKesson Too Late To Fight IRS Cost-Share Rules, Gov't Says
Pharmaceutical giant McKesson waited too long to challenge transfer pricing regulations that cover cost-sharing arrangements as part of its $10 million tax refund bid, the U.S. government told a Texas federal court, arguing the statutory window to seek invalidation has closed.
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September 15, 2025
Applicable Federal Rates Set To Drop For A Third Month
Applicable federal rates for income tax purposes are slated to drop in October, falling for a third month after a rebound in July, the Internal Revenue Service said Monday.
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September 15, 2025
Court Urged To Block Offshore Asset Freeze In $28M Tax Row
The federal government's claim that a beneficiary of offshore trusts is likely to spend down assets to avoid a $28 million tax bill lacks evidence, the beneficiary argued in urging a Florida federal court not to freeze his accounts.
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September 15, 2025
OIRA Concludes Review Of Tipped Occupations
The Office of Information and Regulatory Affairs has concluded its review of a proposed regulation concerning guidance on occupations that will be subject to President Donald Trump's policy of no tax on tips, the office said.
Expert Analysis
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Lessons From 7th Circ.'s Deleted Chat Sanctions Ruling
The Seventh Circuit’s recent decision in Pable v. Chicago Transit Authority, affirming the dismissal of an ex-employee’s retaliation claims, highlights the importance of properly handling the preservation of ephemeral messages and clarifies key sanctions issues, says Philip Favro at Favro Law.
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What 2 Profs Noticed As Transactional Law Students Used AI
After a semester using generative artificial intelligence tools with students in an entrepreneurship law clinic, we came away with numerous observations about the opportunities and challenges such tools present to new transactional lawyers, say professors at Cornell Law School.
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BigLaw Settlements Should Not Spur Ethics Deregulation
A recent Law360 op-ed argued that loosening law firm funding restrictions would make BigLaw firms less inclined to settle with the Trump administration, but deregulating legal financing ethics may well prove to be not merely ineffective, but counterproductive, says Laurel Kilgour at the American Economic Liberties Project.
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5 Ways Lawyers Can Earn Back The Public's Trust
Amid salacious headlines about lawyers behaving badly and recent polls showing the public’s increasingly unfavorable view of attorneys, we must make meaningful changes to our culture to rebuild trust in the legal system, says Carl Taylor at Carl Taylor Law.
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Legal Jeopardy Looms Over Trump's Trade Negotiation Plans
Even as the Trump administration announces one trade deal after another, the legal authority of the executive branch to impose tariffs under consensual arrangements with leading trading partners is just as debatable as the unilateral imposition of U.S. tariffs under the president's executive orders, says Jeffrey Bialos at Eversheds Sutherland.
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Opportunity Zone Overhaul Is Good News For Investors
Recently enacted reforms making the qualified opportunity zone program permanent, restoring the basis step-up for capital gains and adding flexibility to the zone designation process enhance the program’s appeal for long-term investment, says Steven Hadjilogiou at McDermott.
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White House Report Strikes An Optimistic Note On Crypto
Taking seriously President Donald Trump's pledge to adopt a pro-innovation mindset toward digital assets and blockchain technologies, a recent benchmark White House report on crypto provides a comprehensive regulatory framework that takes into account the products' novel characteristics within the high-tech ecosystem, say attorneys at Davis Wright.
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Bipartisan Bill Could Aid ESOP Formation, Valuation Clarity
The proposed Retire through Ownership Act represents a meaningful first step toward clarifying whether transactions qualify under the adequate consideration exemption in the Employee Retirement Income Security Act, potentially eliminating the litigation risk that has chilled employee stock ownership plan formation, say attorneys at Moore & Van Allen.
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Bar Exam Reform Must Expand Beyond A Single Updated Test
Recently released information about the National Conference of Bar Examiners’ new NextGen Uniform Bar Exam highlights why a single test is not ideal for measuring newly licensed lawyers’ competency, demonstrating the need for collaborative development, implementation and reform processes, says Gregory Bordelon at Suffolk University.
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A Simple Way Courts Can Help Attys Avoid AI Hallucinations
As attorneys increasingly rely on generative artificial intelligence for legal research, courts should consider expanding online quality control programs to flag potential hallucinations — permitting counsel to correct mistakes and sparing judges the burden of imposing sanctions, say attorneys at Lankler Siffert & Wohl and Connors.
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Supreme Court's Criminal Law Decisions: The Term In Review
Though the U.S. Supreme Court’s criminal law decisions in its recently concluded term proved underwhelming by many measures, their opinions revealed trends in how the justices approach criminal cases and offered reminders for practitioners, says Kenneth Notter at MoloLamken.
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Budget Act's Deduction Limit Penalizes Losing Gamblers
A provision in the One Big Beautiful Bill Act that reduces the deduction for gambling losses is unfair to professional and recreational players, risks driving online activity to offshore sites, and will set back efforts to legalize and regulate the industry, says Walter Bourdaghs at Kang Haggerty.
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The Legal Education Status Quo Is No Longer Tenable
As underscored by the fallout from California’s February bar exam, legal education and licensure are tethered to outdated systems, and the industry must implement several key reforms to remain relevant and responsive to 21st century legal needs, says Matthew Nehmer at The Colleges of Law.