Federal
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March 18, 2025
Express Scripts Denied Tax Break For Software In $43M Suit
Express Scripts is not entitled to a tax deduction for domestic production activities related to its software because it did not grant licenses to pharmacy benefit plan sponsors who used it, a Missouri federal court said Tuesday, denying the company's request for a tax refund in its $43 million case.
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March 18, 2025
Tax Court Cleared To Resolve IRS Offset Feud, Justices Told
The U.S. Tax Court can still adjudicate a case challenging an Internal Revenue Service collection action even after the agency tried to improperly zero out the disputed liability in an attempt to dismiss the suit, a New Jersey woman told the U.S. Supreme Court.
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March 18, 2025
Trump Hasn't Asked IRS For Immigrants' Tax Info, Gov't Says
The IRS hasn't received any requests from President Donald Trump for immigrants' tax return information and hasn't released any such information to the U.S. Department of Homeland Security, the government told a D.C. federal court in opposing a restraining order sought by immigrant rights groups.
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March 18, 2025
5th Circ. Backs La. Doctor's Tax Evasion Conviction
The Fifth Circuit declined to overturn a Louisiana doctor's felony tax evasion conviction, rejecting her contention that jurors received muddied instructions that led to her being wrongly found guilty of dodging $1.6 million taxes and sentenced to more than four years in federal prison.
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March 18, 2025
Judge Probes Atty Conflict In Vanguard $40M Settlement
A Pennsylvania federal judge questioned whether attorneys representing investors suing Vanguard over surprise tax bills have a conflict of interest in pushing for a $40 million settlement, adding to concerns about a parallel regulatory settlement that has delayed approval of the deal.
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March 17, 2025
Florida Businessman Pleads Guilty To Hiding $20M From IRS
A Florida businessman faces up to five years in prison after he pled guilty Monday to hiding $20 million in Swiss bank accounts from the Internal Revenue Service.
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March 17, 2025
Split 9th Circ. Won't Halt Federal Workers Reinstatement Order
A divided Ninth Circuit panel on Monday denied President Donald Trump's administration an immediate administrative stay of a California district court order requiring reinstatement of some probationary federal workers fired from six agencies, the majority saying a pause "would disrupt the status quo and turn it on its head."
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March 17, 2025
The Tax Angle: Lawmakers Huddle To Mull TCJA
From a look at the three-day legislative retreat held by House Democrats to Ways and Means Republicans meeting behind closed doors to discuss the 2017 GOP tax overhaul, here's a peek into a reporter's notebook on a few of the week's developing tax stories.
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March 17, 2025
$19M In Partner Shares Not Earnings, Co. Tells Tax Court
A New York-based investment partnership accused the Internal Revenue Service of wrongly increasing its income subject to self-employment taxes by about $19 million by misclassifying its limited partners to include their shares, according to a U.S. Tax Court petition.
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March 17, 2025
10th Circ. Grapples With Liberty Global's $248M Tax Credit Bid
A Tenth Circuit panel questioned Monday whether Liberty Global is entitled to $248 million in foreign tax credits for the sale of a Japanese affiliate, or if legislation limits the telecommunications giant from classifying the gains as overseas income.
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March 17, 2025
Kleinberg Kaplan Adds Simpson Thacher Atty As Tax Partner
Kleinberg Kaplan announced Monday that it has added a Simpson Thacher & Bartlett LLP attorney to help provide clients with expertise on tax aspects of private investment fund formation and operation, as well as mergers and acquisitions, joint ventures and financings.
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March 17, 2025
Coloradan Owes FBAR Penalty After Failing To Appear
An elderly Colorado man who failed to respond to the government's claim that he owed $482,000 for failing to report his foreign bank accounts is on the hook for the bill, a federal court ruled.
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March 17, 2025
High Value Dubious In $23M Easement Dispute, 11th Circ. Told
A partnership that claimed a $23 million tax deduction for a conservation easement donation failed to consider the lack of market demand for a potential quarry it used to justify the land's high value, the U.S. government told the Eleventh Circuit.
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March 17, 2025
Applicable Federal Rates To Drop Again In April
Applicable federal rates for income tax purposes are set to decrease in April for the second month in a row, the Internal Revenue Service said Monday.
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March 17, 2025
Six Taxpayer Advocacy Panel Committees To Meet In April
Six Taxpayer Advocacy Panel committees will meet in April to discuss possible improvements to customer services, the Internal Revenue Service said Monday.
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March 14, 2025
$20 Billion IRS Funding Freeze To Continue
The Internal Revenue Service would continue to be blocked from accessing more than $20 billion in Inflation Reduction Act funding under legislation the Senate passed Friday that paves the way for the government to keep running.
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March 14, 2025
Par Funding Conspirator Gets 11 Years For Fraud, Atty Assault
A Pennsylvania federal judge has sentenced Par Funding principal James "Jimmy" LaForte to 11 years and four months in prison for helping his family run a $404 million racketeering conspiracy and violently assaulting Par Funding receivership's court-appointed counsel in a position prosecutors described as the loan company's "loyal attack dog."
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March 14, 2025
Judge Trims Investor's Bid To Rescind Funds From Pot Co.
A Florida federal judge has found that an investor can't rescind a deal or claim fraud through common law in a suit alleging that the officers and agents of a cannabis company hid a $13 million tax liability when he invested.
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March 14, 2025
IRS Correct To Reject Couple's Settlement, Tax Court Says
The Internal Revenue Service didn't do anything wrong when it rejected a California couple's offer to settle more than $235,000 in tax liabilities for less than half that amount, the U.S. Tax Court said Friday, noting the couple had more than $1 million in their home.
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March 14, 2025
3 Firms Rep Franklin BSP Realty Trust's $425M NewPoint Buy
Hogan Lovells, Reed Smith and Paul Weiss guided Franklin BSP Realty Trust's $425 million acquisition of commercial real estate finance company NewPoint Holdings JV LLC, boosting the REIT's multifamily loan offerings.
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March 14, 2025
IRS Delays Tax Deadlines In W.Va. After Feb. Storms
Taxpayers in six West Virginia counties will have until Nov. 3 to file individual and business tax returns and make payments after portions of the state were hit by severe storms in February, the Internal Revenue Service said Friday.
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March 14, 2025
Judge Splits $79M Judgment In Danish Tax Fraud Case
A New York federal judge divided a nearly $79 million judgment against four investors and their pension plans after a jury in February found them liable for participating in a tax fraud scheme against the Danish government.
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March 14, 2025
Senate Finance Panel Clears Treasury Deputy Secretary Pick
Republicans on the Senate Finance Committee voted Friday to approve Michael Faulkender's nomination to be deputy secretary of the U.S. Department of the Treasury, clearing President Donald Trump's pick for a likely Senate confirmation vote in the coming weeks.
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March 14, 2025
Taxation With Representation: Davis Polk, Paul Weiss
In this week's Taxation With Representation, Mallinckrodt PLC and Endo Inc. combine, Rocket Cos. buys Redfin, and Endo divests its international pharmaceuticals business to Knight Therapeutics Inc.
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March 14, 2025
Weekly Internal Revenue Bulletin
The Internal Revenue Service's weekly bulletin, issued Friday, included final regulations for a pair of new tax credits that reward various types of electricity generation from technologies that don't emit greenhouse gases.
Expert Analysis
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To Make Your Legal Writing Clear, Emulate A Master Chef
To deliver clear and effective written advocacy, lawyers should follow the model of a fine dining chef — seasoning a foundation of pure facts with punchy descriptors, spicing it up with analogies, refining the recipe and trimming the fat — thus catering to a sophisticated audience of decision-makers, says Reuben Guttman at Guttman Buschner.
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Circuit Judge Writes An Opinion, AI Helps: What Now?
Last week's Eleventh Circuit opinion in Snell v. United Specialty Insurance, notable for a concurrence outlining the use of artificial intelligence to evaluate a term's common meaning, is hopefully the first step toward developing a coherent basis for the judiciary's generative AI use, says David Zaslowsky at Baker McKenzie.
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BF Borgers Clients Should Review Compliance, Liability
After the U.S. Securities and Exchange Commission's recently announced enforcement proceedings against audit firm BF Borgers for fabricating audit documentation for hundreds of public companies, those companies will need to follow special procedures for disclosure and reporting — and may need to prepare for litigation from the plaintiffs bar, say attorneys at Debevoise.
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Trauma-Informed Legal Approaches For Pro Bono Attorneys
As National Trauma Awareness Month ends, pro bono attorneys should nevertheless continue to acknowledge the mental and physical effects of trauma, allowing them to better represent clients, and protect themselves from compassion fatigue and burnout, say Katherine Cronin at Stinson and Katharine Manning at Blackbird.
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What Updated PLR Procedure May Mean For Stock Spin-Offs
A recently published Internal Revenue Service revenue procedure departs from commonly understood interpretations of the spinoff rules by imposing more stringent standards on companies seeking private letter rulings regarding tax-free stock spinoff and split-off transactions, and may presage regulatory changes that would have the force of law, say attorneys at Skadden.
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Proposed Cannabis Reschedule Sidesteps State Law Effects
The U.S. Department of Justice's recent proposal to move cannabis to Schedule III of the Controlled Substances Act provides certain benefits, but its failure to address how the rescheduling would interact with existing state cannabis laws disappointed industry participants hoping for clarity on this crucial question, says Ian Stewart at Wilson Elser.
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How Attys Can Avoid Pitfalls When Withdrawing From A Case
The Trump campaign's recent scuffle over its bid to replace its counsel in a pregnancy retaliation suit offers a chance to remind attorneys that many troubles inherent in withdrawing from a case can be mitigated or entirely avoided by communicating with clients openly and frequently, says Christopher Konneker at Orsinger Nelson.
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Using A Children's Book Approach In Firm Marketing Content
From “The Giving Tree” to “Where the Wild Things Are,” most children’s books are easy to remember because they use simple words and numbers to tell stories with a human impact — a formula law firms should emulate in their marketing content to stay front of mind for potential clients, says Seema Desai Maglio at The Found Word.
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New Crypto Reporting Will Require Rigorous Recordkeeping
The release of a form for reporting digital asset transactions is a pivotal moment in the Internal Revenue Service's efforts to track cryptocurrency activities that increases oversight by requiring brokers to report investor sales and exchanges, say Shaina Kamen and Max Angel at Holland & Knight.
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Geothermal Energy Has Growing Potential In The US
Bipartisan support for the geothermal industry shows that geothermal energy can be an elegant solution toward global decarbonization efforts because of its small footprint, low supply chain risk, and potential to draw on the skills of existing highly specialized oil and gas workers and renewable specialists, say attorneys at Weil.
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Exploring An Alternative Model Of Litigation Finance
A new model of litigation finance, most aptly described as insurance-backed litigation funding, differs from traditional funding in two key ways, and the process of securing it involves three primary steps, say Bob Koneck, Christopher Le Neve Foster and Richard Butters at Atlantic Global Risk LLC.
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Trump Hush Money Case Offers Master Class In Trial Strategy
The New York criminal hush money trial of former President Donald Trump typifies some of the greatest challenges that lawyers face in crafting persuasive presentations, providing lessons on how to handle bad facts, craft a simple story that withstands attack, and cross-examine with that story in mind, says Luke Andrews at Poole Huffman.
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A Vision For Economic Clerkships In The Legal System
As courts handle increasingly complex damages analyses involving vast amounts of data, an economic clerkship program — integrating early-career economists into the judicial system — could improve legal outcomes and provide essential training to clerks, say Mona Birjandi at Data for Decisions and Matt Farber at Secretariat.