Federal
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June 12, 2025
Justices Reverse IRS Loss In Tax Collection Suit
The U.S. Supreme Court ruled Thursday that the U.S. Tax Court did not have jurisdiction to review a New Jersey woman's collection dispute with the Internal Revenue Service after the agency stopped going after her unpaid taxes, reversing an earlier IRS loss.
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June 11, 2025
Ex-NASCAR Owner Pleads Guilty To Dodging Payroll Taxes
A former NASCAR team owner appeared in North Carolina federal court Wednesday to enter a guilty plea for his failure to pay payroll taxes, according to a U.S. Department of Justice statement.
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June 11, 2025
Russia Must Face $5B Yukos Award Suit, DC Judge Rules
At D.C. federal judge on Wednesday denied Russia's bid to nix litigation filed by the financing arm of Yukos Oil Co. to enforce a nearly $5 billion arbitral award, saying the Kremlin's jurisdictional objections fell short.
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June 11, 2025
US Consultant In France Must Pay $2M In FBAR Penalties
An American energy consultant residing in France must pay more than $2 million in penalties for purposely not disclosing foreign bank accounts that held more than $3 million, as opposed to the under $30,000 initially reported, a D.C. federal court ruled.
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June 11, 2025
IRS Must Improve Online Taxpayer Identification, GAO Says
The Internal Revenue Service needs to enhance its oversight of the outside vendor it uses to verify taxpayer identities when users log in to file their returns or access online resources, the Government Accountability Office said Wednesday.
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June 11, 2025
Treasury Secretary Defends IRS Cuts, $3.8T Budget Bill
U.S. Treasury Secretary Scott Bessent told House lawmakers Wednesday that cutting IRS funding would strengthen the agency while the GOP's $3.8 trillion One Big Beautiful Bill Act would boost working-class living standards and spark a fresh wave of economic growth.
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June 11, 2025
Senate Dems' Bill Would Bar GILTI For 'Round-Tripped' Income
Income that is "round-tripped" to obtain tax advantages would become ineligible for the half-off corporate tax rate under the global intangible low-taxed income regime, based on a bill introduced Wednesday by Sen. Ron Wyden, D-Ore., and three other Senate Democrats.
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June 11, 2025
Trump Pick For IRS Chief Clears Key Senate Hurdle
President Donald Trump's nominee to serve as commissioner of the Internal Revenue Service survived a key procedural vote Wednesday in the Senate, setting the stage for the chamber to proceed with a final vote on his confirmation.
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June 10, 2025
Vertex Says Tax Software Rival Purposely Destroyed Evidence
Tax compliance software company Vertex Inc. told a Pennsylvania federal judge Monday that Avalara intentionally destroyed and failed to preserve "key sources of electronically stored information crucially relevant" to Vertex's lawsuit accusing its rival of poaching workers to steal trade secrets.
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June 10, 2025
GOP Senators Vow To Maintain No Tax On Tips In Budget Bill
Senate Republicans said Tuesday they are likely to preserve the House's provisions that exempt tips from taxation and honor other campaign tax promises of President Donald Trump in the chamber's version of the budget bill.
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June 10, 2025
LA Real Estate Agent Admits Obstructing IRS
A Los Angeles commercial real estate broker pled guilty to obstructing the Internal Revenue Service's attempts to collect thousands of dollars in unpaid taxes by willfully hiding his income and assets from the agency, the U.S. Department of Justice announced Tuesday.
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June 10, 2025
Fed. Circ. Keeps Trump Tariffs In Place, Fast-Tracks Appeal
The Federal Circuit on Tuesday granted the federal government's bid to keep President Donald Trump's global tariffs in place while it appeals a U.S. Court of International Trade order striking them down on the grounds that they exceeded the president's authority.
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June 10, 2025
Fund Manager, Wife Can't Claim $1.9M Refund, Judge Rules
A Florida investment fund manager and his wife are not entitled to a $1.9 million income tax refund resulting from a depreciation deduction related to a private jet because the entity that purchased the jet was not operating as a business, a federal judge ruled.
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June 10, 2025
Ayahuasca Church Brings Religious Use Case To DC Circ.
An Iowa church that seeks to use a psychedelic drug in its rites filed a petition Monday with the D.C. Circuit seeking to compel federal drug enforcers to process an application for a religious exemption to the Controlled Substances Act, which has been pending for over six years.
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June 10, 2025
Judge Denies Gov't Bid To Toss Law Firm's Payroll Tax Suit
The U.S. government cannot throw out a boutique law firm's suit that seeks a refund of $282,000 in pandemic-era worker retention credits and a pause on payroll tax enforcement, a Connecticut federal judge ruled Tuesday.
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June 10, 2025
Ex-Conn. Attorney Sues AG Bondi To Restore Gun Rights
A Connecticut attorney who served prison time for a tax offense has sued federal and state officials to demand the restoration of his right to possess firearms and ammunition, arguing that the prohibition on that right is unconstitutional as applied to him.
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June 10, 2025
Tax Chiefs Say Flagging Oddities Could Reduce ID Crimes
Flagging suspicious behaviors, like bank accounts receiving multiple tax refund deposits in a matter of days, could help reduce identity-based crimes, a public-private partnership with top tax officials from five countries including the U.S. reported Tuesday.
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June 10, 2025
Holland & Knight Continues Tax Team Growth In Philadelphia
Holland & Knight LLP is continuing the expansion of its tax practice in the Philadelphia office with the addition of an attorney who moved her practice from Chamberlain Hrdlicka White Williams & Aughtry, the second lawyer to join from the firm in the last month.
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June 10, 2025
Flagging Fintech Could Help Stop Tax Crimes, Tax Chiefs Say
Governments could help mitigate money laundering and tax evasion by flagging fintech firms with services nested within traditional banks, with virtual assets used for anonymity or with fiat currency conversion services, top tax officials from five countries including the U.S. said Tuesday.
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June 10, 2025
Taxpayer Advocacy Panel Sets 6 July Committee Meetings
Six Taxpayer Advocacy Panel committees will meet in July to discuss the Internal Revenue Service's customer service, according to notices released Tuesday.
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June 09, 2025
States Warned Of Budget Bill's Push To Broaden PL 86-272
States and businesses should closely watch a provision in the budget reconciliation bill H.R. 1, or the One Big Beautiful Bill Act, that would expand the protections of a federal law that provides limited state income tax provisions for businesses, state tax professionals said Monday.
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June 09, 2025
Tax Court Backs Penalties In $24M Georgia Easement Feud
An Internal Revenue Service agent properly followed the procedure to secure timely supervisory approval to impose penalties against a partnership for incorrectly claiming a $24 million charitable tax deduction on its Georgia conservation easement donation, the U.S. Tax Court said Monday.
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June 09, 2025
CEOs Back Trump's Tax-Deferred Child Investment Accounts
The CEOs of several large corporations, including Dell Technologies, Uber and Goldman Sachs, pledged to contribute millions of dollars to tax-advantaged brokerage accounts for newborns that would be established under the House-passed budget bill, President Donald Trump announced at the White House on Monday.
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June 09, 2025
Russian Postdoc's Income Not Tax Exempt, Tax Court Says
A Russian permanent resident who was a postdoctoral laboratory worker at the University of South Carolina cannot escape federal taxes on her income by claiming it was a grant and thus exempt under the U.S.-Russia tax treaty, the U.S. Tax Court said Monday.
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June 09, 2025
Madigan Denied Acquittal, New Trial Ahead Of Sentencing
An Illinois federal judge on Monday denied former Illinois House Speaker Michael Madigan's bid for acquittal or a new trial, clearing the way for him to be sentenced for bribery, wire fraud and conspiracy later this week.
Expert Analysis
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Attorneys Must Act Now To Protect Judicial Independence
Given the Trump administration's recent moves threatening the independence of the judiciary, including efforts to impeach judges who ruled against executive actions, lawyers must protect the rule of law and resist attempts to dilute the judicial branch’s authority, says attorney Bhavleen Sabharwal.
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Rethinking 'No Comment' For Clients Facing Public Crises
“No comment” is no longer a cost-free or even a viable public communications strategy for companies in crisis, and counsel must tailor their guidance based on a variety of competing factors to help clients emerge successfully, says Robert Bowers at Moore & Van Allen.
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How Design Thinking Can Help Lawyers Find Purpose In Work
Lawyers everywhere are feeling overwhelmed amid mass government layoffs, increasing political instability and a justice system stretched to its limits — but a design-thinking framework can help attorneys navigate this uncertainty and find meaning in their work, say law professors at the University of Michigan.
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Justices' Certiorari Denial Leaves Interstate Tax Questions
Since the U.S. Supreme Court recently declined to review a Philadelphia resident’s claim that her Delaware state income taxes should be credited against her city wage tax liabilities, constitutional questions about state and local tax distinctions linger, and some states may continue to apply Supreme Court precedent differently, say attorneys at Dentons.
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Corp. Transparency Act's Future Under Treasury's Bessent
The Corporate Transparency Act’s ultimate fate faced uncertain terms at the end of 2024, but new U.S. Department of the Treasury Secretary Scott Bessent's statements and actions so far demonstrate that he does not intend to ignore the law, though he may attempt to make modifications, say attorneys at Taylor English.
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A Look At A Possible Corporate Transparency Act Exemption
Attorneys at Kirkland offer a deep dive into the application of the Corporate Transparency Act's reporting requirements specifically to U.S.-domiciled co-issuers in typical collateralized loan obligation transactions, and consider whether such issuers may be able to assert an exemption from the CTA's reporting requirements.
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Inconsistent Injury-In-Fact Rules Hinder Federal Practice
A recent Third Circuit decision, contradicting a previous ruling about whether consumers of contaminated products have suffered an injury in fact, illustrates the deep confusion this U.S. Supreme Court standard creates among federal judges and practitioners, who deserve a simpler method of determining which cases have federal standing, says Eric Dwoskin at Dwoskin Wasdin.
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In-House Counsel Pointers For Preserving Atty-Client Privilege
Several recent rulings illustrate the challenges in-house counsel can face when attempting to preserve attorney-client privilege, but a few best practices can help safeguard communications and effectively assert the privilege in an increasingly scrutinized corporate environment, says Daniel Garrie at Law & Forensics.
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Emerging Energy Trends Reflect Shifting Political Landscape
As the Trump administration settles in, some emerging energy industry trends, like expanded support for fossil fuel production, are right off of its wish list — while others, like the popularity of Inflation Reduction Act energy tax credits, and bipartisan support for carbon capture, reflect more complex political realities, say attorneys at Greenberg Traurig.
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Tax-Free Ways To Help Employees After The LA Wildfires
Following the recent wildfires in Los Angeles, there are various tax-free ways to give employees the resources and flexibility they need, including simpler methods like disaster relief payments under Internal Revenue Code Section 139 and leave-sharing programs, and others that require more planning, says Ligeia Donis at Baker McKenzie.
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Judge Should Not Have Been Reprimanded For Alito Essay
Senior U.S. District Judge Michael Ponsor's New York Times essay critiquing Supreme Court Justice Samuel Alito for potential ethical violations absolutely cannot be construed as conduct prejudicial to the administration of the business of the courts, says Ashley London at the Thomas R. Kline School of Law of Duquesne University.
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Lights, Camera, Ethics? TV Lawyers Tend To Set Bad Example
Though fictional movies and television shows portraying lawyers are fun to watch, Hollywood’s inaccurate depictions of legal ethics can desensitize attorneys to ethics violations and lead real-life clients to believe that good lawyers take a scorched-earth approach, says Nancy Rapoport at the University of Nevada, Las Vegas.
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Accountant-Owned Law Firms Could Blur Ethical Lines
KPMG’s recent application to open a legal practice in Arizona represents the first overture by an accounting firm to take advantage of the state’s relaxed law firm ownership rules, but enforcing and supervising the practice of law by nonattorneys could prove particularly challenging, says Seth Laver at Goldberg Segalla.