Federal
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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.
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February 27, 2025
Family Denies Role In $81M Son-Of-Boss Tax Scheme
The government failed to prove that former shareholders of a family holding company knew the buyer of their company stock was shorting the IRS nearly $81 million and that they should be on the hook for the taxes, family members told a New York federal court Thursday.
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February 27, 2025
IRS To Begin Posting Tax Documents In Online Accounts
Individual online account holders at the IRS will begin seeing federal information from their W-2 Wage and Tax Statement posted there, the agency announced Thursday, saying it plans to add more tax documents in the coming months.
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February 27, 2025
Judge Urges $15.5M Tax Judgment Against Ex-NFL Champ
A federal magistrate judge recommended a default judgment against four-time Super Bowl champion Bill Romanowski and his wife for $15.5 million in taxes, saying in a report Thursday that the couple failed to respond to the underlying government complaint against them.
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February 28, 2025
CORRECTED: TCJA Extensions Would Offset Tax Dip By $710B, Report Says
The economic growth spurred by making set-to-expire provisions of the Tax Cuts and Jobs Act permanent is estimated to generate taxes to offset about $710 billion of the expected $4.5 trillion in lost tax revenue between 2025 and 2034, a think tank said in a report. Correction: A previous version of this article misstated the projected impact of extending the provisions. The error has been corrected.
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February 27, 2025
9th Circ. Won't Revisit Tomato Paste Cos.' Deduction Claims
The Ninth Circuit won't reconsider its ruling rejecting tax deductions claimed by a pair of tomato paste producers for facility upgrades, a split panel decided Thursday.
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February 27, 2025
EU Prepared To Retaliate Against US Over Tariffs, Officials Say
European Union officials said Thursday that the bloc is prepared to retaliate against the U.S. if President Donald Trump follows through with tariffs on over $600 billion of goods, a situation that two law professors said risks becoming a trade war more than past disputes.
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February 27, 2025
Estate's $3M To Stepkids Deducted As Biz Deal, 11th Circ. Told
The estate of a deceased corporate attorney told the Eleventh Circuit on Thursday that the U.S. government wrongly taxed $3 million claimed by his stepchildren, arguing that the amount was properly deducted as a contracted business transaction under the Internal Revenue Code.
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February 27, 2025
Goldstein Urges Judge To Lift Device Monitoring Requirement
U.S. Supreme Court advocate and SCOTUSblog publisher Tom Goldstein asked a Maryland federal judge Thursday to nix a condition of his pretrial release that requires him to have monitoring equipment installed on his electronic devices.
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February 27, 2025
KPMG Secures Arizona Approval To Operate Law Firm
Arizona's supreme court on Thursday approved an alternative business structure license to allow accounting giant KPMG to run its own law firm in the U.S.
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February 27, 2025
Phishing Tax Scams Top IRS 'Dirty Dozen' List
Taxpayers should watch out for email phishing scams, bad social media advice and people offering help to set up online accounts, the Internal Revenue Service said Thursday in its "Dirty Dozen" list of tax scams for 2025.
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February 27, 2025
Biz Owner Not Owed For Tax Refund Wait, 8th Circ. Told
A business owner who claimed the federal government owes him about $100,000 to make up for his lost business opportunities while he continued to wait for a claimed $100,000 tax refund is not entitled to the damages or the refund, the U.S. government told the Eighth Circuit.
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February 26, 2025
Ill. Tax Pro Gets 5½ Years For $1.1M IRS Payment Scheme
A suburban Chicago tax professional who admitted he made $1.1 million by lying to clients about paying their tax liabilities and is already serving six years for carrying out a separate investment scheme must serve an additional 5½ years in prison for his conduct, an Illinois federal judge said Wednesday.
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February 26, 2025
Trump Orders Fed Agencies To Plan For Large Layoffs
The White House is telling federal agencies to submit plans for "large-scale" layoffs by mid-March, accusing them of siphoning funding for "unproductive and unnecessary programs" and "not producing results for the American public."
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February 26, 2025
Police Supply Store, Others Ask 5th Circ. To Keep CTA Paused
A Texas police supply store joined with Mississippi libertarians and several other parties asking the Fifth Circuit to keep the Corporate Transparency Act on hold, saying ending the stoppage of that law could force 32 million business entities to file beneficial ownership reports.
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February 26, 2025
IRS Spinoff Safe Harbors Not Seen As All-Purpose Reprieve
Safe harbors proposed by the IRS would allow certain corporate spinoffs to get statutory tax-free treatment, but the bright-line requirements to qualify for these provisions reflect the tension between a blanket approach and the unique complexities of each transaction.
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February 26, 2025
House Panel Advances Bill To Repeal IRS DeFi Broker Rule
House Ways and Means Committee Republicans advanced legislation that would repeal a final U.S. Treasury Department rule implementing additional reporting requirements for decentralized finance brokers.
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February 26, 2025
Coke's $2.7B Tax Bill Due To 'Bait And Switch,' 11th Circ. Told
Coca-Cola urged the Eleventh Circuit to reverse a U.S. Tax Court decision putting the beverage giant on the hook for $2.7 billion in taxes, arguing the ruling excused the IRS' "blatant bait and switch" regarding how it allocates income from foreign affiliates.
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February 26, 2025
Tax Overhaul Designer Named Top Tax Adviser To Treasury
An attorney who worked for Exxon Mobil and helped design the 2017 tax overhaul in President Donald Trump's first term has been appointed to serve as a top tax adviser to Treasury Secretary Scott Bessent, Treasury announced Wednesday.
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February 25, 2025
DC Judge Blocks Trump's Federal Funding Freeze
A D.C. federal judge on Tuesday issued a preliminary injunction blocking the Trump administration from implementing a federal spending freeze while a group of nonprofits challenge the freeze, calling the measure "ill-conceived from the beginning."
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February 25, 2025
House Passes Budget Blueprint Allowing $4.5T In Tax Cuts
The House of Representatives approved a budget blueprint Tuesday that would allow for the passage of up to $4.5 trillion in tax cuts, paving the way to renew the expiring provisions of President Donald Trump's signature 2017 tax overhaul.
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February 25, 2025
IRS Top Operating Officer To Serve As Acting Commissioner
The Internal Revenue Service's chief operating officer will become its acting commissioner, replacing current acting commissioner Douglas O'Donnell, who took on the role just last month, the U.S. Treasury Department announced Tuesday.
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February 25, 2025
Tax Court Reaffirms Suzanne Somers' Estate Owes $2.7M
The U.S. Tax Court on Tuesday reaffirmed roughly $2.7 million in tax liabilities against television producer Alan Hamel and the estate of his wife, actor Suzanne Somers, finding a Treasury regulation it had relied on in its initial decision was sound.
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February 25, 2025
Texas Tax Pros Criticize Proposal To Advise IRS Disclosures
Texas accountants objected to a proposed federal regulation that would require them to advise clients who have broken tax laws to make disclosures to the IRS, saying in a letter to the agency released Tuesday that it would likely create a conflict when clients have criminal exposure.
Expert Analysis
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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.
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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.