Federal
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March 04, 2025
IRS Crypto Summons Broke Privacy Law, 5th Circ. Told
The IRS failed to comply with privacy law in seeking a cryptocurrency executive's third-party bank records, the executive told the Fifth Circuit, saying the agency never notified his attorney even though it was aware he was represented by counsel.
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March 03, 2025
Transparency Law Flouts Biz Owners' Privacy, Judge Says
A Michigan federal judge on Monday ruled the Corporate Transparency Act's beneficial ownership reporting requirements constitute an unreasonable intrusion into business owners' privacy, shortly after the U.S. Department of the Treasury said it was suspending enforcement of the embattled law.
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March 03, 2025
Nonprofits Warn Cuts May Force Closures, End Tax Exemption
Leaders of nonprofits providing healthcare, housing and other critical services for low-income Americans warned Monday that the mix of White House funding cuts and executive orders could force them to close and even jeopardize their tax-exempt status.
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March 03, 2025
Payments To Ex-Wife Not Tax-Deductible, 11th Circ. Says
A doctor's divorce payments to his ex-wife relating to $3.5 million he agreed to pay her for their home do not qualify as tax-deductible alimony because the couple's divorce agreement did not describe them as alimony, the Eleventh Circuit ruled Monday, affirming a U.S. Tax Court decision.
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March 03, 2025
CPA Group Urges Nixing Partnership Basis-Shifting Regs
The U.S. Treasury Department should revoke final anti-abuse regulations that require the disclosure of partnerships structured to adjust a partner's basis, a CPA group said Monday, calling the rules so broad that they end up covering standard tax transactions.
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March 03, 2025
IRS' Hunter Biden Whistleblowers Seek Retaliation Probe
Two Internal Revenue Service agents who accused the U.S. Department of Justice of mishandling an investigation into former President Joe Biden's son Hunter Biden faced retaliation, they said in a complaint filed Monday with the Merit Systems Protection Board.
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March 03, 2025
Convicted Drexel Professor Gets 2 Years For Tax Evasion
A Drexel University accounting professor convicted on tax evasion charges for failing to report $3.3 million in income from a Trenton, New Jersey, pharmacy was sentenced to two years in federal prison on Monday, according to acting U.S. Attorney Vikas Khanna.
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March 03, 2025
Tax Preparer Faces $1.6M In FBAR Penalties, US Says
A Florida federal court should order a tax preparer to pay more than $1.6 million in penalties and interest because he intentionally failed to report his accounts at a pair of Indian banks, the U.S. said.
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March 03, 2025
Texan Can't Claim Deduction For Hurricane-Damaged Home
A Texas man wrongly claimed a tax deduction from a property damaged in 2017 by Hurricane Harvey that was actually owned by his adult children, the U.S. Tax Court ruled Monday, upholding an IRS determination that rejected his $49,500 loss deduction.
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March 03, 2025
Treasury Halts Enforcement Of Corporate Transparency Act
The U.S. Treasury Department won't enforce the Corporate Transparency Act on U.S. businesses and will change regulations so it only applies to foreign companies registered stateside, according to an announcement that activists said invites criminals into the U.S. and lawyers said could provoke judicial scrutiny.
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March 03, 2025
Justices Skip Chippewa Lawyer's Bid To Nix Income Tax
The U.S. Supreme Court declined Monday to grant the petition of an attorney who belongs to the Minnesota Chippewa Tribe and claimed he owed no taxes on self-employment income as a Native American.
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March 03, 2025
Eversheds Lands 12 Chamberlain Hrdlicka Tax Attys In Atlanta
Eversheds Sutherland has grown its Atlanta office by bringing on a dozen tax controversy attorneys from Chamberlain Hrdlicka White Williams & Aughtry PC, the firm announced Monday.
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February 28, 2025
Baltimore Law Firm Loses Bid To Lift IRS Account Freeze
A Maryland federal magistrate judge declined Friday to rethink her order upholding an IRS freeze on a Baltimore law firm's bank account over a $1.5 million tax debt, finding the firm failed to cite any case law that justified reconsideration.
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February 28, 2025
FinCEN Delays Corporate Transparency Act Deadlines
The Financial Crimes Enforcement Network said it will not take any enforcement actions against companies failing to file or update their beneficial ownership information reports pursuant to the Corporate Transparency Act until an interim final rule becomes effective.
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February 28, 2025
Justices Asked To Review IRS Crypto Doc Seizure Case
A cryptocurrency investor who lost his challenge to the Internal Revenue Service's seizure of his account records has asked the U.S. Supreme Court for review, saying the 1976 legal doctrine that sank his case is outdated and fails to meet digital realities, including decentralized banking.
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February 28, 2025
UN Tax Pact Best Bet For Certainty, Sovereignty, Report Says
The United Nations' global tax convention is the most viable opportunity — politically and economically — for governments outside the U.S. to provide tax certainty, prized by multinational corporations, and protect their tax sovereignty under an American administration threatening those realms, the Tax Justice Network said.
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February 28, 2025
IRS Hiring Freeze Prompts Job Placement Aid From Tax Pros
The White House's federal government hiring freeze order, which led the IRS and U.S. Justice Department's tax division to rescind job offers, has tax practitioners launching their own job placement initiatives to assist law students, recent graduates and attorneys.
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February 28, 2025
The Tax Angle: Meeting Becomes Referendum On IRS Layoffs
A House Ways and Means Committee meeting to advance bipartisan disaster relief tax legislation devolved into partisan bickering over the federal government's laying off nearly 7,000 Internal Revenue Service employees during the middle of the 2025 tax filing season.
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February 28, 2025
China Signals Retaliation Following Extra 10% US Tariff
The Chinese government said Friday it will pursue additional "countermeasures" if President Donald Trump's administration follows through on plans to impose an extra 10% tariff on Chinese goods.
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February 28, 2025
Financial Adviser Denied Bond After Admitting $37M Tax Fraud
A Mississippi federal judge denied bond to a financial adviser who admitted promoting an illegal tax shelter involving royalty deductions that caused a $37 million tax loss, according to court documents.
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February 28, 2025
Taxation With Representation: Gibson Dunn, Skadden
In this week's Taxation With Representation, Blackstone acquires Safe Harbor Marinas, National Grid sells its green subsidiary in the U.S. to Brookfield, Apollo Global Management buys Bridge Investment Group Holdings Inc., and Teleflex splits into two publicly traded companies.
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February 28, 2025
Calif. Man To Admit $1.2M Stan Lee Merch Tax Fraud
A California man has agreed to plead guilty to filing false tax returns related to $1.2 million in income he made from selling memorabilia signed by late Marvel Comics writer and publisher Stan Lee.
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February 28, 2025
Weekly Internal Revenue Bulletin
The Internal Revenue Service's weekly bulletin, issued Friday, included proposed rules for a narrow set of corporate separation transactions, known as spinoffs, that the agency will approve as tax-free ahead of time.
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February 27, 2025
Alsup Halts 'Illegal' Firings Of Probationary Federal Workers
U.S. District Judge William Alsup on Thursday temporarily blocked the mass firings of probationary federal employees ordered by President Donald Trump's administration, determining that the Office of Personnel Management illegally directed government agencies to terminate the probationary employees without authority to do so from Congress.
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February 27, 2025
Dems Object To Treasury Pick, Want Probe Into DOGE Access
Senate Finance Committee Democrats objected Thursday to holding a hearing on President Donald Trump's pick for deputy secretary of the U.S. Department of the Treasury unless they can investigate access to the department's systems by the Department of Government Efficiency.
Expert Analysis
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3 Leadership Practices For A More Supportive Firm Culture
Traditional leadership styles frequently amplify the inherent pressures of legal work, but a few simple, time-neutral strategies can strengthen the skills and confidence of employees and foster a more collaborative culture, while supporting individual growth and contribution to organizational goals, says Benjamin Grimes at BKG Leadership.
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E-Discovery Quarterly: Rulings On Hyperlinked Documents
Recent rulings show that counsel should engage in early discussions with clients regarding the potential of hyperlinked documents in electronically stored information, which will allow for more deliberate negotiation of any agreements regarding the scope of discovery, say attorneys at Sidley.
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Loper Bright Limits Federal Agencies' Ability To Alter Course
The U.S. Supreme Court's recent decision to dismantle Chevron deference also effectively overrules its 2005 decision in National Cable & Telecommunications Association v. Brand X, greatly diminishing agencies' ability to change regulatory course from one administration to the next, says Steven Gordon at Holland & Knight.
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A Guide To Long-Term, Part-Time Employee Determinations
With final regulations under the Secure Act requiring 401(k) retirement benefits for long-term, part-time employees expected soon, Amy Sheridan and David Guadagnoli at Sullivan & Worcester look at how the proposed rules would shift the risk-reward calculus on excluding categories of employees, and what plan sponsors would need to consider when designing retirement plans.
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After Chevron: Delegation Of Authority And Tax Regulators
The U.S. Department of the Treasury and the Internal Revenue Service will face higher standards following Loper Bright’s finding that courts should determine whether agency rules meet the best possible interpretation of the tax code, as well as the scope of the authority delegated by Congress, says Edward Froelich at McDermott.
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Lawyers Can Take Action To Honor The Voting Rights Act
As the Voting Rights Act reaches its 59th anniversary Tuesday, it must urgently be reinforced against recent efforts to dismantle voter protections, and lawyers can pitch in immediately by volunteering and taking on pro bono work to directly help safeguard the right to vote, says Anna Chu at We The Action.
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How To Grow Marketing, Biz Dev Teams In A Tight Market
Faced with fierce competition and rising operating costs, firms are feeling the pressure to build a well-oiled marketing and business development team that supports strategic priorities, but they’ll need to be flexible and creative given a tight talent market, says Ben Curle at Ambition.
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Rock Climbing Makes Me A Better Lawyer
Rock climbing requires problem-solving, focus, risk management and resilience, skills that are also invaluable assets in my role as a finance lawyer, says Mei Zhang at Haynes and Boone.
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Contract Disputes Recap: Preserving Payment Rights
Stephanie Magnell and Zachary Jacobson at Seyfarth examine three recent decisions that together illustrate the importance of keeping accurate records and adhering to contractual procedures to avoid inadvertently waiving contractual rights to cost reimbursements or nonroutine payments.
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Think Like A Lawyer: Dance The Legal Standard Two-Step
From rookie brief writers to Chief Justice John Roberts, lawyers should master the legal standard two-step — framing the governing standard at the outset, and clarifying why they meet that standard — which has benefits for both the drafter and reader, says Luke Andrews at Poole Huffman.
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After Jarkesy, IRS Must Course-Correct On Captive Insurance
The U.S. Supreme Court’s recent Securities and Exchange Commission v. Jarkesy decision has profound implications for other agencies, including the IRS, which must stop ignoring due process and curtailing congressional intent in its policing of captive insurance arrangements, says Peter Dawson at the 831(b) Institute.
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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.