Federal
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February 27, 2025
KPMG Secures Arizona Approval To Operate Law Firm
Arizona's supreme court on Thursday approved an alternative business structure license to allow accounting giant KPMG to run its own law firm in the U.S.
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February 27, 2025
Phishing Tax Scams Top IRS 'Dirty Dozen' List
Taxpayers should watch out for email phishing scams, bad social media advice and people offering help to set up online accounts, the Internal Revenue Service said Thursday in its "Dirty Dozen" list of tax scams for 2025.
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February 27, 2025
Biz Owner Not Owed For Tax Refund Wait, 8th Circ. Told
A business owner who claimed the federal government owes him about $100,000 to make up for his lost business opportunities while he continued to wait for a claimed $100,000 tax refund is not entitled to the damages or the refund, the U.S. government told the Eighth Circuit.
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February 26, 2025
Ill. Tax Pro Gets 5½ Years For $1.1M IRS Payment Scheme
A suburban Chicago tax professional who admitted he made $1.1 million by lying to clients about paying their tax liabilities and is already serving six years for carrying out a separate investment scheme must serve an additional 5½ years in prison for his conduct, an Illinois federal judge said Wednesday.
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February 26, 2025
Trump Orders Fed Agencies To Plan For Large Layoffs
The White House is telling federal agencies to submit plans for "large-scale" layoffs by mid-March, accusing them of siphoning funding for "unproductive and unnecessary programs" and "not producing results for the American public."
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February 26, 2025
Police Supply Store, Others Ask 5th Circ. To Keep CTA Paused
A Texas police supply store joined with Mississippi libertarians and several other parties asking the Fifth Circuit to keep the Corporate Transparency Act on hold, saying ending the stoppage of that law could force 32 million business entities to file beneficial ownership reports.
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February 26, 2025
IRS Spinoff Safe Harbors Not Seen As All-Purpose Reprieve
Safe harbors proposed by the IRS would allow certain corporate spinoffs to get statutory tax-free treatment, but the bright-line requirements to qualify for these provisions reflect the tension between a blanket approach and the unique complexities of each transaction.
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February 26, 2025
House Panel Advances Bill To Repeal IRS DeFi Broker Rule
House Ways and Means Committee Republicans advanced legislation that would repeal a final U.S. Treasury Department rule implementing additional reporting requirements for decentralized finance brokers.
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February 26, 2025
Coke's $2.7B Tax Bill Due To 'Bait And Switch,' 11th Circ. Told
Coca-Cola urged the Eleventh Circuit to reverse a U.S. Tax Court decision putting the beverage giant on the hook for $2.7 billion in taxes, arguing the ruling excused the IRS' "blatant bait and switch" regarding how it allocates income from foreign affiliates.
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February 26, 2025
Tax Overhaul Designer Named Top Tax Adviser To Treasury
An attorney who worked for Exxon Mobil and helped design the 2017 tax overhaul in President Donald Trump's first term has been appointed to serve as a top tax adviser to Treasury Secretary Scott Bessent, Treasury announced Wednesday.
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February 25, 2025
DC Judge Blocks Trump's Federal Funding Freeze
A D.C. federal judge on Tuesday issued a preliminary injunction blocking the Trump administration from implementing a federal spending freeze while a group of nonprofits challenge the freeze, calling the measure "ill-conceived from the beginning."
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February 25, 2025
House Passes Budget Blueprint Allowing $4.5T In Tax Cuts
The House of Representatives approved a budget blueprint Tuesday that would allow for the passage of up to $4.5 trillion in tax cuts, paving the way to renew the expiring provisions of President Donald Trump's signature 2017 tax overhaul.
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February 25, 2025
IRS Top Operating Officer To Serve As Acting Commissioner
The Internal Revenue Service's chief operating officer will become its acting commissioner, replacing current acting commissioner Douglas O'Donnell, who took on the role just last month, the U.S. Treasury Department announced Tuesday.
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February 25, 2025
Tax Court Reaffirms Suzanne Somers' Estate Owes $2.7M
The U.S. Tax Court on Tuesday reaffirmed roughly $2.7 million in tax liabilities against television producer Alan Hamel and the estate of his wife, actor Suzanne Somers, finding a Treasury regulation it had relied on in its initial decision was sound.
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February 25, 2025
Texas Tax Pros Criticize Proposal To Advise IRS Disclosures
Texas accountants objected to a proposed federal regulation that would require them to advise clients who have broken tax laws to make disclosures to the IRS, saying in a letter to the agency released Tuesday that it would likely create a conflict when clients have criminal exposure.
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February 25, 2025
Manufacturers Ask To Suspend Biden-Era Reporting Rules
Tax regulations governing partnerships and corporations passed by the outgoing Biden administration should be suspended — or outright retracted — because they conflict with the Trump administration's priorities, the National Association of Manufacturers said in a letter to the IRS and U.S. Treasury Department released Tuesday.
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February 25, 2025
10th Circ. Asked To Rethink Denying Atty's Racing Deductions
A Denver personal injury lawyer asked the Tenth Circuit to reconsider its decision barring his $300,000 tax deduction for car-racing costs as professional advertising, saying the court deprived him of due process in dismissing his argument that the IRS wrongly denied him a chance to settle.
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February 24, 2025
DC Judge Wary Of Constitutionality Of Musk's DOGE
A D.C. federal judge on Monday questioned the constitutionality of Elon Musk's Department of Government Efficiency while expressing skepticism that groups challenging the department's access to federal systems housing Americans' sensitive data had established the irreparable harm needed to block access.
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February 24, 2025
Eaton's Foreign Tax Credits Rejected By Tax Court
The U.S. Tax Court rejected foreign tax credits that Eaton Corp. had claimed on its lower-tier overseas entities' income taxes for 2007 and 2008, saying in a Monday opinion that its overseas ownership structure had disqualified the multinational power management company.
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February 24, 2025
Investor Settles In $2.1B Danish Tax Fraud Case
A U.S. investor who was among those accused by Denmark's tax agency of participating in a $2.1 billion tax fraud scheme related to fraudulently claiming refunds on tax withheld from stock dividends has reached a settlement, according to New York federal court documents filed Monday.
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February 24, 2025
Justices Won't Hear Challenge To Colo. Tax Ballot Title Law
The U.S. Supreme Court on Monday let stand a ruling by the Tenth Circuit that a Colorado law requiring that financial impacts be included in the titles of some tax-related ballot initiatives does not cause "improperly compelled" speech.
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February 24, 2025
Tax Software Co. Says Rival Is The Real Trade Secrets Thief
Corporate-focused tax preparation software company Avalara, accused by Vertex Inc. of poaching workers to steal trade secrets, has asked to file counterclaims, arguing Vertex has actually done the illegal poaching.
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February 24, 2025
Express Scripts Sees Claims Cut From $43M Tax Refund Suit
A Missouri federal court on Monday tossed some of Express Scripts' claims for a $42.9 million tax refund formerly available for domestic production, saying the pharmacy benefit manager improperly reversed course on whether certain costs should be included in its calculation of the tax break.
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February 24, 2025
4th Circ. Upholds Levy Against Md. Man's Tax Liability
The Fourth Circuit rejected Monday a Maryland man's attempt to vacate a Tax Court opinion that allowed the IRS to go ahead with a levy to collect his tax liability, saying it found no issue with the determination that he lacked any overpayments to offset his liability.
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February 24, 2025
Ex-Goldman Exec Owes For Not Filing FBARs, US Says
A former Goldman Sachs banking executive who lives in Australia owes penalties to the Internal Revenue Service for failing to report foreign bank accounts she held, the U.S. government told a D.C. federal court.
Expert Analysis
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Requiring Leave To File Amicus Briefs Is A Bad Idea
A proposal to amend the Federal Rules of Appellate Procedure that would require parties to get court permission before filing federal amicus briefs would eliminate the long-standing practice of consent filing and thereby make the process less open and democratic, says Lawrence Ebner at the Atlantic Legal Foundation and DRI Center.
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4 Ways To Motivate Junior Attorneys To Bring Their Best
As Gen Z and younger millennial attorneys increasingly express dissatisfaction with their work and head for the exits, the lawyers who manage them must understand and attend to their needs and priorities to boost engagement and increase retention, says Stacey Schwartz at Katten.
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How IRA Unlocks Green Energy Investments For Tribes
An Inflation Reduction Act provision going into effect May 10 represents a critical juncture for Native American tribes, offering promising economic opportunity in green energy investment, but requiring a proactive and informed approach when taking advantage of newly available tax incentives, say attorneys at Lewis Brisbois.
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Former Minn. Chief Justice Instructs On Writing Better Briefs
Former Minnesota Supreme Court Chief Justice Lorie Gildea, now at Greenberg Traurig, offers strategies on writing more effective appellate briefs from her time on the bench.
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What To Know About IRS' New Jet Use Audit Campaign
The Internal Revenue Service recently announced plans to open several dozen audits scrutinizing executive use of company jets, so companies should be prepared to show the business reasons for travel, and how items like imputed income and deduction disallowance were calculated, say attorneys at Morgan Lewis.
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Stay Interviews Are Key To Retaining Legal Talent
Even as the economy shifts and layoffs continue, law firms still want to retain their top attorneys, and so-called stay interviews — informal conversations with employees to identify potential issues before they lead to turnover — can be a crucial tool for improving retention and morale, say Tina Cohen Nicol and Kate Reder Sheikh at Major Lindsey.
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Judicial Independence Is Imperative This Election Year
As the next election nears, the judges involved in the upcoming trials against former President Donald Trump increasingly face political pressures and threats of violence — revealing the urgent need to safeguard judicial independence and uphold the rule of law, says Benes Aldana at the National Judicial College.
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Spartan Arbitration Tactics Against Well-Funded Opponents
Like the ancient Spartans who held off a numerically superior Persian army at the Battle of Thermopylae, trial attorneys and clients faced with arbitration against an opponent with a bigger war chest can take a strategic approach to create a pass to victory, say Kostas Katsiris and Benjamin Argyle at Venable.
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What Recent Study Shows About AI's Promise For Legal Tasks
Amid both skepticism and excitement about the promise of generative artificial intelligence in legal contexts, the first randomized controlled trial studying its impact on basic lawyering tasks shows mixed but promising results, and underscores the need for attorneys to proactively engage with AI, says Daniel Schwarcz at University of Minnesota Law School.
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How FinCEN Proposal Expands RE Transaction Obligations
Against a regulatory backdrop foreshadowing anti-money laundering efforts in the real estate sector, the Financial Crimes Enforcement Network's proposed rule significantly expands reporting requirements for certain nonfinanced residential real estate transfers and necessitates careful review, say attorneys at Fried Frank.
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What To Know About Employee Retention Credit Disclosures
Employers that filed potentially erroneous employee retention credit claims should take certain steps to determine whether the IRS’ voluntary disclosure program is a good fit and, if so, prepare a strong application before the window closes on March 22, say attorneys at Dentons.
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Litigation Inspiration: A Source Of Untapped Fulfillment
As increasing numbers of attorneys struggle with stress and mental health issues, business litigators can find protection against burnout by remembering their important role in society — because fulfillment in one’s work isn’t just reserved for public interest lawyers, say Bennett Rawicki and Peter Bigelow at Hilgers Graben.
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Unpacking FinCEN's Proposed Real Estate Transaction Rule
Phil Jelsma and Ulrick Matsunaga at Crosbie Gliner take a close look at the Financial Crimes Enforcement Network's recently proposed rulemaking — which mandates new disclosures for professionals involved in all-cash real estate deals — and discuss best next steps for the broad range of businesses that could be affected.