Archives: Uncategorized

Subscribe to Uncategorized RSS Feed

McDermott’s Tax Controversy Team Garners Tier 1 Ranking in the Legal 500 United States 2017

Recently, the Legal 500 US 2017 ranked McDermott’s Tax Controversy practice group as Tier 1. (The Legal 500 category for Tax Controversy is “US Taxes—Contentious.”) Five members of our federal tax controversy team—Todd Welty, Roger Jones, Jean Pawlow, Robin Greenhouse and Andrew Roberson—were specifically mentioned as part of the Firm’s “outstanding” practice. Welty, Jones and … Continue Reading

IRS is Required to Search Tax Return Information Records to Help Determine Worker Classification

On April 5, 2017, in an unanimous court reviewed opinion, the United States Tax Court determined that disclosure of a worker’s tax return information to absolve the employer from liabilities arising out of the employer’s withholding requirement is not subject to the general prohibition against disclosing taxpayer return information pursuant to Internal Revenue Code (IRC) … Continue Reading

IRS Criminal Investigation Division Continues to Face Core Mission Challenges Due to Budget Cuts

This week, the Internal Revenue Service (IRS) Criminal Investigation Division (CID) released its annual report for 2016, continuing a message sent for several years now: that IRS CID’s staffing declines are affecting its core mission tax work. Core mission tax work is distinguished from other types of IRS CID investigations—such as terrorism or health care … Continue Reading

Giving Back – Providing Pro Bono Tax Assistance

Here at McDermott, we value giving back to the community through pro bono efforts.  In particular, we provide substantial assistance in pro bono tax cases to low-income individuals through our relationships with low-income taxpayer clinics throughout the country.  Over the years, we have settled dozens of cases for low-income taxpayers in docketed tax cases and … Continue Reading

CDFI Fund Announces $7 Billion Allocation of New Markets Tax Credits

On November 17, 2016, the US Department of the Treasury’s Community Development Financial Institutions Fund (CDFI Fund) announced the largest single round award of New Market Tax Credit (NMTC) allocations since the program’s creation in 2001. One hundred twenty organizations, headquartered in 36 states, the District of Columbia and Puerto Rico, were awarded a total … Continue Reading

Todd Welty Named ‘MVP of the Year’ for Tax Law

McDermott is proud to announce that Todd Welty has been chosen by Law360 as a 2016 “MVP of the Year” in the category of tax law. Mr. Welty’s selection is part of a Law360 series profiling lawyers who have made the most significant contributions in their areas of practice. This is Mr. Welty’s second time … Continue Reading

Ethics in Tax Practice

On November 17, 2016, John Woodruff and Laura Gavioli gave a presentation to the Houston Chapter of the Tax Executives Institute (TEI) regarding the contours of privilege and work-product protection for in-house tax practitioners. Joining them on the panel were Paul Broman of BP and Susan Musch of Sasol. The group addressed potential waiver concerns … Continue Reading

Types of Tax Court Opinions and Their Precedential Effect

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 … Continue Reading

Introduction to the New World of Global Tax Planning

Domestic implementation of the recommendations set out in the BEPS final reports from 2015 have the potential to significantly impact effective tax rate planning. The immediate issue flows from the new country-by-country transfer pricing documentation regime (CbC). The critical consequence of the CbC regime, as well as many of the other BEPS initiatives, will be … Continue Reading

Scott Singer Informs on the Effect of Loans to Financially Troubled Subsidiary in a Debt-Equity Analysis

One often overlooked debt-equity issue is presented by continuing transfers to a subsidiary that is reasonably creditworthy at the inception but subsequently encounters difficulties, in spite of which (or maybe because of which) and continues to receive advances from the common parent or one of its finance subsidiaries. The issue is whether the subsequent difficulties … Continue Reading

Discussion Draft of Modernization of Derivatives Tax Act

On May 18, 2016, Senate Finance Committee Ranking Member, Senator Ron Wyden, released a financial product tax reform discussion draft that, if adopted, would significantly alter the current tax rules with respect to financial products (derivatives), as well as the tax treatment of certain non-derivative positions that are offset by derivatives. The discussion draft is … Continue Reading

Taxpayer Argues First Circuit Should Not Follow Tax Court Decision by Judge Indicted for Tax Fraud

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 … Continue Reading

IRS Issues New Procedures to IRS Appeals for Requesting Assistance from Exam in Docketed Tax Court Case

On June 24, 2016, the Internal Revenue Service (IRS) issued a memorandum (AP-08-0616-0003, available here) to the IRS Appeals Division (Appeals) providing new, uniform procedures for requesting assistance from the Examination Division (Exam) in docketed Tax Court cases. The guidance implements standard procedures that would treat petitioners similarly. Currently, when petitioners provide new information to … Continue Reading

Former Tax Court Judge Indicted for Tax Evasion

On April 4, 2016, the US Attorney for the District of Minnesota announced a federal grand jury indictment charging former US Tax Court Judge Diane L. Kroupa and her husband with conspiring to evade the assessment of taxes. In a multi-count indictment, both were charged with conspiracy, tax evasion, making and subscribing false tax returns … Continue Reading

The IRS Releases CCA 201606027

On February 5, 2016, the IRS released Chief Counsel Advice 201606027 (the 2016 CCA) in which the IRS concluded, among other things, that guarantees by a partner of a partnership’s liabilities that could only be called by the partnership’s lenders in certain narrow circumstances (commonly referred to as “nonrecourse carve-outs” or “bad boy” guarantees), caused … Continue Reading

Welcome to McDermott’s Tax Controversy 360 Blog!

McDermott Will & Emery has a leading tax controversy practice with lawyers representing clients on all aspects of federal, state and local, and international tax controversy matters, including Internal Revenue Service audits and appeals, competent authority matters and trial and appellate litigation. We regularly represent some of the world’s largest corporations on complex US, state … Continue Reading
LexBlog