Federal
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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.
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March 14, 2025
Feds Say North Carolina Cardiologist Owes $7.9M In Taxes
A North Carolina cardiologist owes the federal government $7.9 million in taxes, fees and interest, according to a new civil complaint brought against him by the tax division of the U.S. Department of Justice seeking to hold him liable for the purportedly unpaid sum.
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March 13, 2025
Texan Calls $1.7M In FBAR Penalties Unconstitutional
Constitutional law bars the United States from imposing $1.7 million in penalties for failure to report foreign bank accounts, a Texan said in urging a federal court to dismiss such an assessment against her.
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March 13, 2025
Eaton Shouldn't Be Allowed To Shortcut Appeal, 6th Circ. Told
The Sixth Circuit shouldn't grant Eaton Corp.'s request to curtail arguments in its appeal of a court order enforcing an Internal Revenue Service summons for its European employee records, the federal government argued Thursday, saying it wants the chance to explain why foreign law doesn't apply.
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March 13, 2025
IRS Layoffs Could Slash Revenue By $2.4 Trillion, Report Says
If the Internal Revenue Service's workforce is cut by half, as President Donald Trump is reportedly considering, it could cost over $2.4 trillion in lost revenue over the next decade and increase the tax gap by about 25%, according to a report released Thursday by Yale's Budget Lab.
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March 13, 2025
Former IRS Counsel Joins Hinshaw In Chicago
Hinshaw & Culbertson LLP announced that a longtime government attorney who most recently served as deputy managing counsel of the Internal Revenue Service Office of Chief Counsel in Chicago, has joined the firm's government practice as a partner.
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March 13, 2025
Akin's Energy Transition Group Grows With V&E Tax Atty
Akin Gump Strauss Hauer & Feld LLP has hired a Vinson & Elkins LLP tax counsel who has spent the past decade counseling clients on the federal income tax aspects of energy transition transactions, the firm announced Thursday.
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March 13, 2025
Vanguard's $40M Deal In Tax Suit Gets Delay In Final Approval
A Pennsylvania federal judge delayed a proposed $40 million settlement between Vanguard and investors who claimed the firm unfairly stuck them with big tax bills, saying both sides must respond to objections about the effects of a recent SEC settlement on the deal.
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March 13, 2025
5th Circ. Asks If Enforcement Delay Affects CTA Challenge
The Fifth Circuit has asked for supplemental briefing in a challenge against the Corporate Transparency Act, asking whether the case is affected by the U.S. Treasury Department's recent decision to suspend enforcement of reporting rules for domestic companies.
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March 13, 2025
Judge Orders Reinstatement Of Many Fired Federal Workers
A California federal judge on Thursday ordered the immediate reinstatement of certain probationary employees fired from six federal agencies, saying the Office of Personnel Management did not have the authority to direct those terminations, making the firings "unlawful."
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March 12, 2025
Cannabis Co. Can't Contest 2018 Tax Bill, Tax Court Says
A cannabis company that convinced the U.S. Tax Court to allow deadline extensions for requests for collections hearings before the Internal Revenue Service is not entitled to an extension for one of the tax years it had challenged, the court said Wednesday.
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March 12, 2025
House GOP Blocks Oversight Of DOGE Taxpayer Info Access
House Ways and Means Committee Republicans rejected an attempt Wednesday by Democrats to force President Donald Trump's administration to hand over documents related to the Department of Government Efficiency's access to U.S. Treasury Department payment systems and confidential payment information.
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March 12, 2025
Judge Tosses Tax Fraud Claim In Mariana Bribery Case
A federal court dismissed Wednesday a claim connected to allegations of tax fraud in a $310,000 civil asset forfeiture case brought by the U.S. government against a Northern Mariana Islands business after concluding the court lacked jurisdiction.
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March 12, 2025
4th Circ. Voids IRS Win In Collections Suit Against NC Couple
The IRS should not have been granted a district court win over a North Carolina couple's 2007 tax bill because there was conflicting evidence about when the taxpayers had reached out to the agency for an installment payment agreement, the Fourth Circuit said Wednesday.
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March 12, 2025
Canada Announces Steel, Aluminum Retaliatory Tariffs On US
Canada will impose CA$29.8 billion ($20.7 billion) in retaliatory tariffs in response to the 25% rates that President Donald Trump has levied on all steel and aluminum imports, a senior Canadian government official announced on Wednesday.
Expert Analysis
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Lead Like 'Ted Lasso' By Embracing Cognitive Diversity
The Apple TV+ series “Ted Lasso” aptly illustrates how embracing cognitive diversity can be a winning strategy for teams, providing a useful lesson for law firms, which can benefit significantly from fresh, diverse perspectives and collaborative problem-solving, says Paul Manuele at PR Manuele Consulting.
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Class Actions At The Circuit Courts: July Lessons
In this month's review of class action appeals, Mitchell Engel at Shook Hardy considers cases touching on pre- and post-conviction detainment conditions, communications with class representatives, when the American Pipe tolling doctrine stops applying to modified classes, and more.
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Now More Than Ever, Lawyers Must Exhibit Professionalism
As society becomes increasingly fractured and workplace incivility is on the rise, attorneys must champion professionalism and lead by example, demonstrating how lawyers can respectfully disagree without being disagreeable, says Edward Casmere at Norton Rose.
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Reading Between The Lines Of Justices' Moore Ruling
The U.S. Supreme Court's recent Moore v. U.S. decision, that the Internal Revenue Code Section 965 did not violate the 16th Amendment, was narrowly tailored to minimally disrupt existing tax regimes, but the justices' various opinions leave the door open to future tax challenges and provide clues for what the battles may look like, say Caroline Ngo and Le Chen at McDermott.
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A Midyear Forecast: Tailwinds Expected For Atty Hourly Rates
Hourly rates for partners, associates and support staff continued to rise in the first half of this year, and this growth shows no signs of slowing for the rest of 2024 and into next year, driven in part by the return of mergers and acquisitions and the widespread adoption of artificial intelligence, says Chuck Chandler at Valeo Partners.
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States Should Loosen Law Firm Ownership Restrictions
Despite growing buzz, normalized nonlawyer ownership of law firms is a distant prospect, so the legal community should focus first on liberalizing state restrictions on attorney and firm purchases of practices, which would bolster succession planning and improve access to justice, says Michael Di Gennaro at The Law Practice Exchange.
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After Chevron: Uniform Tax Law Interpretation Not Guaranteed
The loss of Chevron deference will significantly alter the relationship between the IRS, courts and Congress when it comes to tax law, potentially precipitating more transparent rulemaking, but also provoking greater uncertainty due to variability in judicial interpretation, say Michelle Levin and Carneil Wilson at Dentons.
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Texas Ethics Opinion Flags Hazards Of Unauthorized Practice
The Texas Professional Ethics Committee's recently issued proposed opinion finding that in-house counsel providing legal services to the company's clients constitutes the unauthorized practice of law is a valuable clarification given that a UPL violation — a misdemeanor in most states — carries high stakes, say Hilary Gerzhoy and Julienne Pasichow at HWG.
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How High Court Approached Time Limit On Reg Challenges
The U.S. Supreme Court's decision in Corner Post v. Federal Reserve Board effectively gives new entities their own personal statute of limitations to challenge rules and regulations, and Justice Brett Kavanaugh's concurrence may portend the court's view that those entities do not need to be directly regulated, say attorneys at Snell & Wilmer.
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How To Clean Up Your Generative AI-Produced Legal Drafts
As law firms increasingly rely on generative artificial intelligence tools to produce legal text, attorneys should be on guard for the overuse of cohesive devices in initial drafts, and consider a few editing pointers to clean up AI’s repetitive and choppy outputs, says Ivy Grey at WordRake.
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A Tale Of 2 Trump Cases: The Rule Of Law Is A Live Issue
The U.S. Supreme Court’s decision this week in Trump v. U.S., holding that former President Donald Trump has broad immunity from prosecution, undercuts the rule of law, while the former president’s New York hush money conviction vindicates it in eight key ways, says David Postel at Henein Hutchison.
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Industry Self-Regulation Will Shine Post-Chevron
The U.S. Supreme Court's Loper decision will shape the contours of industry self-regulation in the years to come, providing opportunities for this often-misunderstood practice, says Eric Reicin at BBB National Programs.
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3 Ways Agencies Will Keep Making Law After Chevron
The U.S. Supreme Court clearly thinks it has done something big in overturning the Chevron precedent that had given deference to agencies' statutory interpretations, but regulated parties have to consider how agencies retain significant power to shape the law and its meaning, say attorneys at K&L Gates.