LITTLE ROCK, Ark. - The Arkansas Supreme Court on Sept. 25 said a state resident has standing to bring an "illegal extraction" claim under the state constitution but said the state's paying for prescriptions of the Actos diabetes drugs is not illegal extraction of state tax dollars (Greg Bowerman, et al. v. Takeda Pharmaceuticals U.S.A., et al., No. CV-13-1051, Ark. Sup.; 2014 Ark. LEXIS 500).
INDIANAPOLIS - Most of the financial and tax documents sought by a bank in a lawsuit brought by investors in a failed rate-swap agreement are relevant to the claims against it and are not unduly burdensome to produce, an Indiana federal magistrate judge ruled Sept. 22, mostly granting the bank's motion to compel (Executive Management Services Inc., et al. v. Fifth Third Bank, No. 1:13-cv-00582, S.D. Ind.; 2014 U.S. Dist. LEXIS 132473).
WASHINGTON, D.C. - The president of a committee for the International Centre for the Settlement of Investment Disputes (ICSID) on Sept. 24 released a decision denying a request made by two companies that were awarded $1,769,625,000 in a dispute over an oil exploration and exploitation contract with the Republic of Ecuador to modify a stay of the decision, finding that the committee has no jurisdiction to modify the stay in relation to Ecuador's potential enforcement of a tax judgment issued in another court (Occidental Petroleum Corp., et al. v. The Republic of Ecuador, No. ARB/06/11, ICSID).
MILWAUKEE - The administration's decision to delay implementation of the Patient Protection and Affordable Care Act (ACA) employer mandate does not provide a cash-only physicians group with standing, a Seventh Circuit U.S. Court of Appeals panel held Sept. 19 (Association of American Physicians & Surgeons Inc., and Robert T. McQueeney v. John Koskinen, commissioner of the Internal Revenue Service, in his official capacity, No. 14-2123, 7th Cir.).
MILWAUKEE - A cash-only physicians group challenging the Internal Revenue Service's implementation of the Patient Protection and Affordable Care Act (ACA) faced repeated questioning during Sept. 16 oral arguments from a Seventh Circuit U.S. Court of Appeals panel seemingly skeptical of its standing (Association of American Physicians & Surgeons Inc., and Robert T. McQueeney v. John Koskinen, commissioner of the Internal Revenue Service, in his official capacity, No. 14-2123, 7th Cir.).
FLINT, Mich. - A Michigan federal judge on Sept. 11 overruled objections to a magistrate judge's order that denied a motion to compel discovery and denied a motion to compel compliance with subpoenas that were filed by a Michigan man in his class complaint accusing his former employer of violating the Employee Retirement Income Security Act by failing to properly determine Federal Insurance Contributions Act (FICA) taxes payable at the time of his retirement (John B. Davidson, et al. v. Henkel Corporation, et al., No. 12-14103, E.D. Mich.; 2014 U.S. Dist. LEXIS 127152).
WASHINGTON, D.C. - The District of Columbia Circuit U.S. Court of Appeals granted en banc review on Sept. 4 of a decision finding that the Patient Protection and Affordable Care Act (ACA) provides tax credits only for individuals who enrolled through state-created exchanges (Jacqueline Halbig, et al. v. Sylvia M. Burwell, et al., No. 14-5018, D.C. Cir.).
BOSTON - After finding that the Federal National Mortgage Association (Fannie Mae), the Federal Home Loan Mortgage Corp. (Freddie Mac) and the Federal Housing Finance Agency (FHFA) are excused from paying state and local taxes, the First Circuit U.S. Court of Appeals on Aug. 27 affirmed decisions issued by two federal courts to dismiss actions filed by municipalities that sought unpaid real estate transfer taxes (Town of Johnston v. Federal Housing Finance Agency, et al., No. 13-2034, 1st Cir.; 2014 U.S. App. LEXIS 16576).
WASHINGTON, D.C. - En banc review of a decision that tax credits apply only for individuals who receive insurance through state Patient Protection and Affordable Care Act (ACA) exchanges would only delay ultimate resolution before the U.S. Supreme Court, plaintiffs told the a federal appeals court Aug. 18 (Jacqueline Halbig, et al. v. Sylvia M. Burwell, et al., No. 14-5018, D.C. Cir.).
AUSTIN, Texas - A tax levied on small tobacco companies that did not participate in the 1998 settlement of a deceptive advertising action brought against four major tobacco companies is unconstitutional, the Third District Texas Court of Appeals ruled Aug. 15 (Susan Combs, et al. v. Texas Small Tobacco Coalition, et al., No. 03-13-00753-CV, Texas App., 3rd Dist.).
WASHINGTON, D.C. - R.J. Reynolds Tobacco Co. and Santa Fe Natural Tobacco Co., Inc. filed suit against the U.S. Department of Agriculture (USDA) and other federal agencies in the U.S. District Court for the District of Columbia Aug. 14, alleging that the government fails to account for cigarettes sold illegally by unlicensed manufacturers, including Native American manufacturers, when assessing taxes against the tobacco industry under the Fair and Equitable Tobacco Reform Act (FETRA) (R.J. Reynolds Tobacco Co., et al. v. United States Department of Agriculture, et al., No. 14-cv-01388-KBJ, D. D.C.).
DENVER - A lay witness did not exceed the scope of Federal Rule of Evidence 701 in a tax fraud trial, a 10th Circuit U.S. Court of Appeals panel found July 28, affirming a lower court's conviction and rejecting the appellant's challenge of the witness's testimony (United States of America v. Curtis L. Morris, No. 12-1474, 10th Cir.; 2014 U.S. App. LEXIS 14292).
SAN FRANCISCO - The Federal Aviation Administration Authorization Act (FAAAA) does not preempt a California unfair competition law (UCL) lawsuit filed by the state alleging that a trucking company misclassifies drivers as independent contractors in order to avoid paying payroll taxes or provide workers' compensation, the California Supreme Court held July 28 (The People ex rel. Kamala D. Harris, etc. v. Pac Anchor Transportation, Inc., et al., No. S194388, Calif. Sup.; 2014 Cal. LEXIS 5181).
TAMPA, Fla. - A Florida federal judge on July 23 refused to dismiss a class complaint accusing a pizza chain of wrongfully charging sales tax on a delivery fee and negligently misrepresenting that tax (Bruce Schojan, et al. v. Papa John's International Inc., et al., No. 14-1218, M.D. Fla.; 2014 U.S. Dist. LEXIS 100319).
RICHMOND, Va. - Patient Protection and Affordable Care Act (ACA) language governing whether individuals who enroll through the federal exchange are entitled to tax credits is ambiguous enough to defer to the Internal Revenue Service's interpretation, a Fourth Circuit U.S. Court of Appeals panel held July 22 (David King, et al. v. Kathleen Sebelius, et al., No. 14-1158, 4th Cir.).
WASHINGTON, D.C. - Patient Protection and Affordable Care Act (ACA) premium tax credits are available only for individuals who enrolled through state exchanges and not the federal exchange, a District of Columbia U.S. Circuit Court of Appeals panel majority held July 22. The dissent argued that the suit is a "not-so-veiled attempt to gut" the ACA (Jacqueline Halbig, et al. v. Sylvia Mathews Burwell, et al., No. 14-5018, D.C. Cir.).