Federal

  • March 07, 2024

    Nonprofits Can E-File 2023 Extensions Later This Month

    Tax-exempt organizations will be able to electronically file applications for extensions on returns including Form 990 starting March 17, when an Internal Revenue Service delay that impeded the filings ends, an agency official said Thursday.

  • March 07, 2024

    Disability Payments Are Gross Income, Tax Court Rules

    More than $1,500 in disability payments received by a Texas couple must be included in their gross income, the U.S. Tax Court ruled Thursday.

  • March 07, 2024

    Tax Tipster Who Reported Family Loses DC Circ. Award Fight

    A man who reported his siblings for tax fraud and received a whistleblower award wasn't entitled to more money, the D.C. Circuit ruled, saying the IRS was correct in reducing the amount after concluding the man, a manager in the family business, likely participated in the fraud.

  • March 07, 2024

    IRS Seeks Suggestions For Next Priority Guidance Plan

    The Internal Revenue Service is soliciting public suggestions for its 2024-25 priority guidance plan, the agency announced Thursday.

  • March 07, 2024

    Feds Look To Bar Advice-Of-Counsel Defense From Tax Trial

    Federal prosecutors have sought to prevent two attorneys and an insurance agent from relying on advice-of-counsel defenses in their upcoming tax fraud trial, telling a North Carolina federal judge the trio failed to give the court an adequate heads-up about their intended defense.

  • March 07, 2024

    IRS Halts Penalties On Dyed Diesel After Texas Wildfires

    The Internal Revenue Service will momentarily stop imposing penalties on the sale or highway use of dyed diesel fuel in parts of Texas in response to wildfires, the agency said.

  • March 07, 2024

    IRS' Taxpayer Advocacy Panel Schedules April Meeting

    The Internal Revenue Service's Taxpayer Advocacy Panel Joint Committee scheduled its next public meeting for April 22, the agency said Thursday.

  • March 07, 2024

    Biden Urges Higher Taxes On Wealthy Companies, Individuals

    President Joe Biden, in his Thursday night State of the Union address, urged Congress to make the U.S. tax code fairer by enacting higher rates on wealthy corporations and individuals and extending tax relief to working families.

  • March 06, 2024

    Software Execs Tried To Save Co. With Trust Taxes, Jury Told

    Prosecutors and defense attorneys on Wednesday painted competing pictures of two former software executives at the start of their tax fraud trial in North Carolina, with the government characterizing the pair as liars and cheaters while the defense claimed they were merely trying to right the ship as their business floundered.

  • March 06, 2024

    Impending Corp. Spinoff Guidance Could Refine Tax-Free Test

    Tax attorneys are watching to see if eagerly awaited corporate spinoff guidance will help determine whether transactions qualify for tax-free status with more clarity than current regulations, and without controversial bright-line rules that were floated several years ago.

  • March 06, 2024

    Startup Investors' Attys Want $1.5M In Fees On Disclosure Suit

    Lawyers for a class of investors have asked a New York federal court to approve their attorney fees of $1.5 million for a $4.5 million settlement with a Chinese analytics startup over claims the company misrepresented its tax liability before its initial public offering. 

  • March 06, 2024

    IRS Targeted Atty In Bank Records Suit, Justices Told

    The Internal Revenue Service violated an attorney's free speech rights by targeting him based on a tax analysis he posted online, he argued in asking the U.S. Supreme Court to consider overturning a ruling allowing the agency to obtain his bank account information.

  • March 06, 2024

    First Woman To Be Permanent Top IRS Atty Begins Tenure

    The first woman to permanently serve as chief counsel of the Internal Revenue Service began her tenure Wednesday.

  • March 05, 2024

    Goal Is Still For A Mandatory Amount B, Treasury Official Says

    Negotiators at the OECD made it optional for countries to adopt new simplified and streamlined transfer pricing rules, known as Amount B, but the goal is still for the framework to be mandatory, a U.S. Treasury Department official said Tuesday.

  • March 05, 2024

    Pillar 1 Would Have Cost US Gov't $1.4B In 2021, Study Says

    U.S. tax revenue would have been reduced by $1.4 billion in 2021 under a proposed system to reallocate a share of tax payments to where large multinational corporations have customers but lack a physical presence, the Joint Committee on Taxation said Tuesday.

  • March 05, 2024

    Appraiser Withholding Docs In $57M Case, Gov't Tells Court

    A Florida federal court should force an appraiser to hand over documents the IRS says it needs for an investigation into a partnership's $57 million tax deduction for a conservation easement donation, the U.S. argued in a petition Tuesday, saying the appraiser has refused to comply with a summons.

  • March 05, 2024

    Biz Owner Gets 10 Months For Evading Tax On Foreign Income

    The owner of a manufacturing company was sentenced in California federal court to 10 months in prison for avoiding taxes on almost $4.5 million in income by failing to report his foreign sales to the Internal Revenue Service, the U.S. Department of Justice said.

  • March 05, 2024

    Retiree's Bid For $284K FBAR Refund Thrown Out

    Federal district courts lack jurisdiction to refund penalties for failing to report foreign accounts, which means a Georgia man must refile in the U.S. Court of Federal Claims to try to recover $284,000 that he was penalized, a Georgia federal court said in dismissing his case.

  • March 05, 2024

    Treasury Finalizes Direct Pay Rules For Energy Tax Credits

    The U.S. Department of the Treasury on Tuesday finalized regulations governing direct payments of several clean energy tax credits provided by the Inflation Reduction Act but said it was still mulling how to address so-called chaining of payments and co-ownership arrangements.

  • March 04, 2024

    Former DOJ Assistant Chief Joins Bird Marella

    The assistant chief in the fraud section of the Department of Justice's Criminal Division joined Bird Marella Rhow Lincenberg Drooks & Nessim LLP, the firm announced Tuesday.

  • March 04, 2024

    Corporate Transparency Act Unconstitutional, Ala. Judge Says

    An Alabama federal judge has found that the Corporate Transparency Act is unconstitutional, dealing a blow to proponents of the anti-money laundering law, who anticipate the ruling will be appealed to the Eleventh Circuit.

  • March 04, 2024

    TCJA To Reduce Corporate Tax Revenue By 40%, Study Says

    The 2017 Tax Cuts and Jobs Act is expected to reduce corporate tax revenue by about 40% over a decade after increased investment in the U.S. is accounted for, according to a study published Monday by the National Bureau of Economic Research. 

  • March 04, 2024

    Former IRS Commissioner Joins Chamberlain Hrdlicka

    Former IRS Commissioner Charles "Chuck" Rettig joined Chamberlain Hrdlicka White Williams & Aughtry as a shareholder in Los Angeles, following in the footsteps of his former acting chief of staff, whom the firm hired last year.

  • March 04, 2024

    Justices Won't Review $10M Tax On Gulfstream Heirs

    The U.S. Supreme Court declined Monday to review the Internal Revenue Service's imposition of personal liability for $10 million in unpaid estate taxes on the survivors of Gulfstream Aerospace Corp.'s founder, letting stand a Ninth Circuit ruling.

  • March 04, 2024

    1st Circ. Grapples With Crypto Exchange Tax Docs Seizure

    First Circuit judges grappled Monday with an investor's claim that the IRS violated his privacy and property rights when it seized his account records from cryptocurrency exchange Coinbase, trying to establish during oral arguments to what extent the exchange was different from a traditional bank.

Expert Analysis

  • Taxing The Digital Economy: The Good, The Bad And The Ugly

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    U.S. tech companies should watch for important developments in international taxation, including the resolution of Apple's decade-old state aid case, growing frustration with the Organization for Economic Cooperation and Development's global tax plan and adoption of the digital services tax instead, says Joyce Beebe at Rice University's Baker Institute for Public Policy.

  • Big Tax Changes For Multinational Cos. In Budget Proposal

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    The Biden administration’s fiscal year 2024 budget proposes changes that would materially alter decades-old Internal Revenue Code provisions, requiring a shift in multinational corporations' tax planning strategies comparable to that required after enactment of the Tax Cuts and Jobs Act, say Xenia Garofalo and Kyle Colonna at Eversheds Sutherland.

  • SVB Collapse Reinvigorates Bank Accounting Debate

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    Silicon Valley Bank's sudden collapse revives questions over whether fair value or amortized cost accounting is the most appropriate for banks' financial reporting — a controversy that's crucial for understanding what information could have helped market participants better understand SVB's financial condition, say consultants at Analysis Group.

  • Brownfield Renewables Guidance Leaves Site Eligibility Murky

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    Recent IRS guidance sheds some light on the Inflation Reduction Act's incentives for renewable energy development on contaminated sites — but the eligibility of certain sites for brownfield status remains uncertain, say Megan Caldwell and Jon Micah Goeller at Husch Blackwell.

  • Get Ready For IRS Criminal Crackdown On Crypto

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    Recent developments at the IRS, from a new operating plan to the announcement of a centralized data center, signal that the agency is ramping up criminal enforcement against those using digital assets to evade tax liabilities — and given its high conviction rate, companies and individuals must prioritize compliance, say attorneys at BakerHostetler.

  • NFT Tax Guidance Shows IRS Interest In Crypto Enforcement

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    The IRS' first ever guidance addressing the federal income tax treatment of NFTs indicates the agency could take a potentially aggressive stance in enforcing U.S. tax laws in the NFT and crypto spaces, which could have a significant impact on the self-directed IRA market, say attorneys at BakerHostetler.

  • Substantiation Is Key When Gifting Crypto To Charity

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    A recent Internal Revenue Service memorandum makes clear that the agency will require substantiation when gifting cryptocurrency to charity, even for relatively small amounts, so donors need to be aware of the important differences between crypto and typical cash donations, says Sheryl Morrison at Lathrop GPM.

  • Senate Credit Suisse Report Puts Attention On Banks, Trusts

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    The Senate Finance Committee's recent finding that Credit Suisse violated a plea agreement struck over its role in enabling offshore tax evasion has important ramifications for banks and trusts, including how they onboard, document and report on transactions relevant to U.S. reporting requirements, say Will Barry and Ian Herbert at Miller & Chevalier.

  • Seeking IRS Accountability For Faulty Microcaptive Notice

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    Like the taxpayers in Standard Insurances v. U.S. seeking to expand earlier wins in microcaptive insurance cases that limit IRS use of improperly obtained information, others should consider ways to hold the agency accountable and provide incentive for it to follow the law going forward, says Joshua Smeltzer at Gray Reed.

  • Biden Admin. Proposals Both Encourage And Thwart EV Adoption

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    While the Biden administration has been aggressively focused on promoting electric vehicles from the start, its recently issued guidance on EV tax credits and its restrictive new auto emissions proposal create a sense of implementation whiplash that may frustrate manufacturers and consumers, says Levi McAllister at Morgan Lewis.

  • Heed PCAOB's Warning On Proof-Of-Reserves Reports

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    While directed at investors, the Public Company Accounting Oversight Board's recent advisory on proof-of-reserves reports is a timely and stark warning to crypto entities, as well as their customers and accounting firms, to tread carefully in their reliance on these reports as proof of financial stability, say Patrick Bryan and Deborah Meshulam at DLA Piper.

  • Cos. Should Heed IRS Warnings About Employee Tax Credit

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    The IRS has recently been cautioning employers claiming the pandemic-related employee retention credit to carefully review all the eligibility requirements and be wary of relying on third-party advisers regarding their qualification for the credit, say Eric Pearson and Timothy Voigtman at Foley & Lardner.

  • Renewable Energy M&A Is Still Strong, Despite Challenges

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    The recent history of renewable energy has included ongoing supply chain issues, legislative challenges and rising interest rates — but mergers and acquisitions in the sector are expected to remain robust this year, fueled by growing demand and Inflation Reduction Act incentives, say consultants at FTI Consulting.

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