LexisNexis® Legal Newsroom
    In Congress: More Confirmation Hearings

    Democrats will have a difficult time actually defeating any of President-elect Trump's cabinet nominations because of a change they made to the Senate rules to end the filibuster for executive branch nominations. Their goal is not really to defeat ...read more

    EU Panama Papers Tax Probe To Target Banks, Law Firms

    The European Parliament committee investigating the Panama Papers tax avoidance scandal will focus on the role played by intermediaries such as banks, law firms and accountants in hiding the identity of ultimate beneficial account owners, according to ...read more

    Calif. Appeals Court Rejects State Biz Tax On Iowa Investor

    An Iowa farm cannot be held liable for a California state tax on businesses operating in the state on the grounds of a small stake in an investment fund, a California appeals court ruled Thursday, saying the investment does not constitute doing business ...read more

    Manufacturer Group OK’d To Fight IRS Anti-Inversion Rule

    Despite objections from the IRS, the National Association of Manufacturers got the green light from a Texas federal judge Thursday to fight a recent anti-inversion rule and argue that the agency violated its legal obligations to solicit public comments ...read more

    Checkfree - Another Taxpayer Win on New York State Online Service Receipt Sourcing; ALJ Determination Mirrors Expedia

    On January 5, 2017, a New York State Division of Tax Appeals administrative law judge (ALJ) determined that a taxpayer’s electronic bill payment and presentation receipts constitute “service” receipts and not “other business receipts,” and are properly sourced where the service is performed. In the Matter of the Petitions of Checkfree Services Corp. 

    • New York taxpayers received additional guidance on the important issue of whether online services constitute “service” receipts, and how those receipts should be sourced, for New York corporate franchise tax purposes. 
    • An ALJ found for a taxpayer on this same issue previously. In Expedia, another ALJ confirmed the taxpayer’s position that travel reservation facilitation receipts, and online advertising receipts, constitute “service” receipts that are sourced to the location of performance. In the Matter of the Petition of Expedia, Inc.
    • The ALJ’s analysis in Checkfree largely mirrors the sound analysis in Expedia. Both determinations concluded that the taxpayer performed a “service” under the term’s plain meaning; that a “service” does not require human involvement; that the taxpayer did have some human involvement even though the service had an automated component; and that “service” receipts are properly sourced where performed, which is the taxpayer’s location, not the customer’s location.

    View the full Legal Alert.

    UBS Loses $1.2B Bail Challenge In Tax Fraud Investigation

    The European Court of Human Rights announced on Thursday that it has rejected UBS AG's challenge to a €1.1 billion ($1.24 billion) bail upheld by the French Supreme Court after the bank came under scrutiny for allegedly helping clients dodge ...read more

    Political Differences May Be The Death Of Estate Tax Repeal

    As plans for a revamp of the tax code get underway in Congress, critical differences among President-elect Donald Trump, the GOP and the Democrats on whether to repeal the estate tax and what to replace it with could end up leaving the current law unchanged ...read more

    Avoiding The Hidden Costs Of Bargain-Priced E-Discovery

    Many organizations are interested in finding electronic discovery partners who offer tantalizingly low prices for electronic discovery services. However, unforeseen gaps, lax security practices, ignorance of global practices and delayed deliverables can ...read more

    Taxation With Representation: Baker, Cleary, Paul, Kirkland

    In this week’s Taxation With Representation, the Williams Cos. Inc. is undertaking an $11.4 billion repositioning of its financial relationship with its master limited partnership, Japanese pharmaceutical company Takeda is purchasing an oncology ...read more

    Senate Dems Want Foreclosure Victims To Challenge Mnuchin

    Senate Democrats on Friday asked that outside witnesses be allowed to testify at confirmation hearings for Treasury Secretary nominee Steven T. Mnuchin, including witnesses who say they were victims of allegedly shoddy foreclosure practices at a bank ...read more

    BREAKING: Congress Passes 1st Step To Repeal ACA

    Congress passed the bill that would frame the repeal of the Affordable Care Act on Friday, after the House voted through a measure that would let Republicans undo President Barack Obama's signature health care law down the road without any Democratic ...read more

    Recyclers Say IRS Stuck Them With $22M In Other Co.'s Taxes

    A group of California recycling companies is suing the U.S. government over a $22 million federal tax liability, saying the Internal Revenue Service, without offering any supporting evidence, falsely accused them of being alter egos of the company responsible ...read more

    New IRS Whistleblower Report Shows More Awards, Fewer Dollars

    The latest annual report from the IRS Whistleblower Office shows a substantially higher number of awards paid in comparison to the previous year, along with a significantly lower total award amount.
     
    According to the Whistleblower Office's fiscal 2016 report, released January 12, the office made 418 awards to whistleblowers in fiscal 2016 under section 7623, a dramaticincrease from the 99 total awards paid the previous year. At the same time, the award total before sequestration amounted to $ 61 million, falling from $ 103 million the previous year.

    EU Human Rights Court Rejects UBS Appeal of French €1.1 Billion Bond

    The European Court of Human Rights (ECHR) on January 12 rejected an appeal by UBS Group AG challenging a €1.1 billion bond imposed by a French court while the Swiss bank awaits trial on charges of aggravated tax fraud and conspiracy.
     
    Investigating magistrates imposed the bond in 2014 as security in case UBS is found guilty of having helped French customers evade taxes in their country of residence. After the French Supreme Court's decision in 2014 upholding the prosecutors' right to require the bond, UBS asked the ECHR to review the issue.

    Brady Offers ACA Repeal, Replace Timeline

    After the House votes to begin defunding the Affordable Care Act as part of the fiscal 2017 budget resolution, the House Ways and Means Committee will draft a reconciliation bill to repeal the law while providing a framework for replacement, the committee chair told reporters January 12.
     
    Chair Kevin Brady, R-Texas, told reporters following an organizational meeting that after a likely vote on the budget resolution January 13, the tax panel would focus on the details needed to repeal and replace the ACA.

    Kudlow Warns Border-Adjustable Tax Plan Would 'Doom' Tax Reform

    The American public isn't ready to overhaul the U.S. tax system with a border-adjustable tax, and if Republican lawmakers insist on pushing the plan, they risk scuttling their overall tax reform effort, Larry Kudlow, economic adviser to President-elect Trump, said January 12.
     
    Appearing with House Ways and Means Committee member Devin Nunes, R-Calif., on CNBC, Kudlow acknowledged that there were problems with the corporate tax system, and he claimed that countries that operate under a VAT, like Mexico, have "reneged" on trade deals with the United States and unfairly taxed U.S. imports.

    Civil and Criminal Penalties for Nonpayment Aren't Double Prosecution, AG Says

    Italy's law permitting both administrative and criminal proceedings against defendants accused of failure to pay VAT complies with EU law barring double prosecution when the administrative penalties are imposed on companies and the criminal charges are brought against the individuals representing them, Advocate General Manuel Campos Sanchez-Bordona recommended.
     
    Campos's January 12 opinion on Orsi, C-217/15, and Baldetti, C-350/15, addresses questions that arose during criminal proceedings for unpaid VAT that were brought against Massimo Orsi and Luciano Baldetti as the legal representatives of companies that failed to pay the tax.

    Hospital Tax Exemptions Unconstitutional, Ill. Justices Told

    The tax-exempt status of Illinois' 156 not-for-profit hospitals may be in jeopardy if the Illinois Supreme Court rules in favor of local officials who contend that a 2012 law allowing these hospitals to skip paying property taxes is unconstitutional ...read more

    New Guidance On Safe Harbor For Information Return Errors

    On Jan. 4, 2017, the IRS released Notice 2017-09, providing guidance on the de minimis safe harbor for errors in amounts reported on information returns. The notice sheds significant light on the safe harbor, which was enacted by the PATH Act of 2015 ...read more

    Amazon To Begin Remitting Sales Tax To South Dakota

    South Dakota Republican Gov. Dennis Daugaard has announced that Amazon.com Inc. will start remitting sales tax in the state, a move that follows Daugaard's signing of a bill seeking to overturn decades-old U.S. Supreme Court precedent that limits ...read more

    Coinbase Dives Into IRS Summons Fight

    Virtual currency exchanger Coinbase Inc. asked Thursday to intervene in a lawsuit in California federal court over an IRS summons of its client information, saying it has additional arguments to present to the court to add to those presented by one of ...read more

    Ex-GE Atty To Get Suspension For Tax Fraud Press Leak

    A former GE in-house counsel and her lawyer were justified in disclosing confidential corporate information about alleged fraud in Brazil in whistleblower complaints but violated professional conduct rules when they leaked the same documents to the press ...read more

    Ryan Promises 'Concurrent' ACA Repeal And Replacement

    House Speaker Paul Ryan reiterated President-elect Donald Trump's promises for a simultaneous repeal and replacement of the Affordable Care Act on Thursday, hours after the Senate took a series of votes that advanced the repeal effort. ...read more

    Dems, GOP May Be On Collision Course Over Tax Reform

    The top Democrat on the House Ways and Means Committee was critical of the House Republicans’ tax reform blueprint, saying during a speech Thursday that it will concentrate tax cuts for the wealthiest individuals and indicating that differences ...read more

    Pa. Atty Gets 4 Years For Failure To Pay Employment Taxes

    A Pittsburgh tax attorney was sentenced Thursday to four years in prison by a Pennsylvania federal judge for his failure to pay more than $790,000 in federal employment taxes stemming from his partial ownership of a local ice and soccer sports facility ...read more