McDermott Will & Emery
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Supreme Court Grants Certiorari in Case Involving Auer Deference
By McDermott Will & Emery and McDermott Will & Emery on Nov 1, 2016
Posted In Appellate Courts, IRS Guidance, Uncategorized
On October 28, 2016, the US Supreme Court (Supreme Court) granted certiorari in the case of Gloucester County Sch. Bd. V. G.G., No. 16-273, which involves a dispute as to whether an unpublished letter by a Department of Education (Department) official purporting to interpret the agency’s regulatory interpretation relating to discrimination on the basis of...
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Former Tax Court Judge Pleads Guilty to Tax Crimes
By Kevin Spencer and McDermott Will & Emery on Oct 24, 2016
Posted In Trial Courts, Uncategorized
Following up on our prior coverage (see here), former US Tax Court Judge Diane L. Kroupa pleaded guilty on Friday to multiple tax criminal charges related to her tax returns and interactions with the Internal Revenue Service. The government stipulated during the hearing that all charges except defrauding the United States would be dropped if...
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IRS Issues IPU on Identifying Foreign Goodwill or Going Concern
By McDermott Will & Emery on Oct 13, 2016
Posted In IRS Audits, IRS Guidance, Uncategorized
On October 13, 2016, the Internal Revenue Service (IRS) released an LB&I International Practice Unit (IPU), available here, providing guidance to IRS agents relating to the identification of foreign goodwill or going concern value (FGWGC) for purposes of Internal Revenue Code (Code) Section 367. The IPU indicates that it was last updated on September 22, 2016. The...
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Types of Tax Court Opinions and Their Precedential Effect
By Kevin Spencer and McDermott Will & Emery on Oct 13, 2016
Posted In Court Procedure Matters, Trial Courts, Uncategorized
Most tax cases are decided by the US Tax Court (Tax Court). The Tax Court issues two categories of opinions: (1) formally published dispositions; and (2) unpublished dispositions. The first category consists of opinions that are published in the Tax Court Reports and technically are called “division opinions” but are more commonly referred to as...
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Tax Controversy Options
By McDermott Will & Emery on Oct 11, 2016
Posted In Alternative Dispute Resolution, Appellate Courts, Court Procedure Matters, IRS Appeals, IRS Audits, IRS Guidance, Trial Courts, Uncategorized
Knowing your options for a US Federal tax controversy is helpful in creating a sound and efficient strategy. The attached chart depicts the typical options involved in a US Federal tax controversy, from the IRS’s examination of the return, through administrative appeals, litigation in Tax Court, Circuit Court appeal, and to ultimate assessment of tax.
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Tax Court Anticipates Releasing Revisions to its Rules in the Near Future
By McDermott Will & Emery on Oct 3, 2016
Posted In Court Procedure Matters, Uncategorized
At the ABA Section of Taxation meeting in Boston last week, Chief Judge Marvel of the US Tax Court announced that the court anticipates issuing revisions to its rules in the near future. These rule revisions will address two areas: (1) e-filing matters, including the ability to electronically file a petition; and (2) revisions necessitated...
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Privileged Materials Provided Without Taxpayers’ Consent Should Not Waive Privilege
By McDermott Will & Emery and McDermott Will & Emery on Sep 16, 2016
Posted In IRS Audits, IRS Guidance, Privilege and Non-Disclosure, Uncategorized
In today’s tax environment and with the potential monetary awards to whistleblowers under Internal Revenue Code (Code) Section 7623, taxpayers are facing the increased possibility that their confidential and privileged materials may be provided to the Internal Revenue Service (IRS) without the taxpayer’s consent. This raises serious privilege and ethical issues related to the attorney-client,...
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GAO Reports on IRS Guidance Procedures
By Jeffrey M. Glassman and McDermott Will & Emery on Sep 8, 2016
Posted In IRS Guidance, Uncategorized
The United States Government Accountability Office (GAO) recently released a report regarding how the Internal Revenue Service (IRS) communicates tax guidance to the public.This report was prepared following bipartisan requests from members of both houses of Congress. The GAO report: (1) analyzed documents that defined IRS guidance types; (2) reviewed the IRS’s policies and procedures...
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IRS Begins Formal Assessment of CAP Program
By McDermott Will & Emery on Aug 29, 2016
Posted In IRS Audits, IRS Guidance, Tax Refunds, Uncategorized
On August 26, the Internal Revenue Service (IRS) announced that its Large Business & International (LB&I) division is in the process of assessing the Compliance Assurance Process (CAP) program. CAP is a real-time audit program that seeks to resolve the tax treatment of all or most return issues before the tax return is filed. CAP began...
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Taxpayer Argues First Circuit Should Not Follow Tax Court Decision by Judge Indicted for Tax Fraud
By McDermott Will & Emery on Aug 23, 2016
Posted In Uncategorized
On August 15, 2016, the taxpayer in Santander Holdings USA filed its brief to the US Court of Appeals for the First Circuit in its case involving what the Internal Revenue Service (IRS) has labeled a “foreign tax credit generator” transaction. The taxpayer prevailed at the district court level and the IRS appealed that decision, arguing...
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