McDermott Will & Emery
Subscribe to McDermott Will & Emery's PostsMcDermott Will & Emery partners with leaders around the world to fuel missions, knock down barriers and shape markets. Our team works seamlessly across practices, industries and more than 20 locations to deliver highly effective—and often unexpected—solutions that propel success. More than 1,200 lawyers strong, we bring our personal passion and legal prowess to bear in every matter for our clients and the people they serve.
IRS Funding Woes Likely To Continue
By Kevin Spencer and McDermott Will & Emery on Jun 29, 2017
Posted In IRS Appeals, IRS Audits, Uncategorized
The House Appropriations Committee (HAC) yesterday released the fiscal 2018 Financial Services and General Government Appropriations bill, which sets forth proposed annual funding for the Treasury Department, the Judiciary, the Small Business Administration, the Securities and Exchange Commission, and other related agencies. The proposal will be considered in the subcommittee today. For text of the...
Continue Reading
Tax Court Considering Requiring Notice of Non-Party Subpoenas
By McDermott Will & Emery on Jun 26, 2017
Posted In Court Procedure Matters, Trial Courts, Uncategorized
We previously wrote about the lack of a US Tax Court (Tax Court) rule requiring notice to other parties before service of non-party subpoenas for the production of documents, information, or tangible things and inconsistent practices for Judges at the Tax Court. See here and here. To recap, Tax Court Rule 147 allows a party...
Continue Reading
Former Tax Court Judge Diane L. Kroupa Sentenced in Connection with Tax Evasion Matter
By McDermott Will & Emery on Jun 22, 2017
Posted In Trial Courts, Uncategorized
We have previously blogged on the criminal tax proceedings related to former US Tax Court Judge Kroupa (see here and here). In October 2016, Judge Kroupa pleaded guilty to multiple tax criminal charges related to her tax returns and interactions with the Internal Revenue Service. Based on sentencing guidelines, the recommended sentence was between 30‒37 months. Judge Kroupa...
Continue Reading
The “Issue of First Impression” Defense to Penalties
By McDermott Will & Emery on Jun 14, 2017
Posted In Trial Courts, Uncategorized
The Internal Revenue Code (Code) contains various provisions regarding the imposition of penalties and additions to tax. The accuracy-related penalty under section 6662(a), which imposes a penalty equal to 20 percent of the amount of any understatement of tax, is commonly asserted on the grounds that the taxpayer was negligent, disregarded rules or regulations, or...
Continue Reading
Dealing with Allocations of Tax Liabilities in Non-IRS Agreements
By Jane Zhao and McDermott Will & Emery on May 23, 2017
Posted In Trial Courts, Uncategorized
Taxpayers often enter into tax sharing agreements to agree on how the parties may allocate current or future tax liabilities or potential refund. Sometimes these agreements are heavily negotiated (e.g., a corporation acquiring a subsidiary of an unrelated party); sometime they are not (e.g., marital settlement agreements among individuals with little assets). A recent US...
Continue Reading
To Agree or Not to Agree, That Is the Question
By McDermott Will & Emery and McDermott Will & Emery on May 17, 2017
Posted In IRS Appeals, IRS Audits, Uncategorized
The last few years have seen significant changes in audit procedures employed by the Internal Revenue Service (IRS). These changes range from the new Information Document Request (IDR) procedures to substantial changes at the IRS Appeals level. This post focuses on the IRS’s attempt to develop an agreed set of facts before a case is...
Continue Reading
Chief Special Trial Judge Panuthos to Step Down, Effective September 1, 2017
By McDermott Will & Emery on May 16, 2017
Posted In Trial Courts, Uncategorized
Last week, the US Tax Court (Tax Court) announced that Chief Special Trial Judge (STJ) Peter J. Panuthos has decided to step down as Chief STJ, effective September 1, 2017. STJ Lewis R. Carluzzo will take over as Chief STJ beginning September 1, 2017. STJ Panuthos has been Chief STJ for the past 25 years,...
Continue Reading
Taxpayer Rights Around the World (Follow-Up)
By McDermott Will & Emery on May 4, 2017
Posted In Court Procedure Matters, IRS Guidance, Transfer Pricing Resource, Uncategorized
We previously wrote two blog posts about the 2nd International Conference on Taxpayer Rights held in Vienna, Austria in March 2017 here and here. Videos of each panel discussion are now available for viewing here. Planning is currently underway for the 3rd International Conference on Taxpayer Rights, which will be held in The Netherlands on...
Continue Reading
IRS Provides New Guidance on Ordinary Versus Capital Issue
By McDermott Will & Emery and McDermott Will & Emery on May 2, 2017
Posted In IRS Guidance, Uncategorized
A frequently disputed tax issue is the proper treatment of costs incurred by taxpayers and whether they are currently deductible or must be capitalized. Internal Revenue Code (Code) Section 162 generally provides a deduction for ordinary and necessary business expenses paid or incurred during the taxable year in carrying on any trade or business. However,...
Continue Reading
Overview of Tax Litigation Forums
By Elizabeth Chao and McDermott Will & Emery on Apr 21, 2017
Posted In Appellate Courts, Court Procedure Matters, IRS Guidance, Tax Refunds, Trial Courts, Uncategorized
Taxpayers can choose whether to litigate tax disputes with the Internal Revenue Service (IRS) in the US Tax Court (Tax Court), federal district court or the Court of Federal Claims. Claims brought in federal district court and the Court of Federal Claims are tax refund litigation: the taxpayer must first pay the tax, file a...
Continue Reading
