Key Takeaways
- IRS
- Taxpayer Advocate
- Transfer Pricing
- Chevron
- Conservation Easements
- In the Courts
- What Day is it?
IRS
IRS Hiring Spree Creates Headaches for State Tax Agencies – Danielle Muoio Dunn, Bloomberg ($):
A post-pandemic surge in retirements and dwindling pipeline of accounting graduates has created serious staffing headaches for state tax departments, which must already compete with the higher salaries offered by major accounting firms. Now agency heads say they face another wrinkle in their efforts to beef up their teams, as experienced people move to the federal side, often for better pay and greater flexibility.
The IRS has opened its free tax filing for all states. Which ones will join? – Julie Zauzmer Weil, Washington Post:
The question is how many states will take the IRS up on it.
Taxpayer Advocate
“TIGTA called all 76 local TAS telephone lines in the United States, including offices in the District of Columbia and Puerto Rico, using the telephone numbers listed on the TAS and IRS websites. The calls found some telephone lines were not in service, voicemail boxes were full, and inconsistent recorded scripted messaging and callback time frames. Only two telephone lines were answered by a TAS representative. Voicemail prompts indicated that callbacks would be received within time frames ranging from one business day to four weeks.”
Transfer Pricing
Airbnb Hit With $2 Billion Tax and Penalty Over Transfer Pricing – Tristan Navera, Bloomberg ($):
The company petitioned US Tax Court on July 30 to contest an IRS determination that it underpaid its taxes by $1.33 billion for 2013 as well as the $573 million in fines tacked on by the IRS in the process. The IRS had already claimed Airbnb understated its income by $4.2 billion based on resources and rights it made to its foreign affiliate, Airbnb International.
Chevron
IRS View of Loper Bright Impact on Display in Varian and Sysco – Andrew Velarde, Tax Notes ($).
“Loper Bright strengthened the IRS’s position in its fight over a rule excluding foreign taxes paid by foreign subsidiaries from the dividends received deduction (DRD), according to the agency's arguments for broad authority from statutory language.”
Conservation Easements
Donors Want Chance at Tax Jury After Supreme Court SEC Decision – Erin McManus, Tax Notes ($)
The donors in Joint Star Properties LLC v. Commissioner and North Donald LA Properties LLC v. Commissioner argue that section 6663 is a common-law fraud penalty similar to the penalty in a securities fraud case that the Supreme Court determined June 27 entitled the petitioners to a jury trial under the Fifth and Seventh amendments.
In the Courts
Sister-In-Law Ordered to Testify in Hunter Biden Tax Case – Anna Scott Farrell, Law360 ($). “A California federal judge ordered Hunter Biden's sister-in-law, with whom he was romantically involved, and her sister to testify at his upcoming criminal trial in which he is accused of scheming to avoid paying $1.4 million in taxes.”
Coca-Cola Owes $6 Billion to IRS, Tax Court Rules – Dean Seal, The Wall Street Journal:
The Atlanta beverage giant said Friday that it plans to appeal the court’s decision siding with the IRS, which has alleged for nearly a decade that Coca-Cola avoided paying some federal taxes by shifting too much of its profits to overseas subsidiaries.
Coca-Cola Poised to Appeal $2.7B Tax Bill With 11th Circ. – Natalie Olivo, Law360 ($). “The U.S. Tax Court signed off Friday on Coca-Cola's $2.7 billion tax bill, setting the stage for the beverage giant to appeal the liabilities and related rulings in its long-running dispute over the IRS' reallocation of the company's foreign income.”
IRS Sued for Charging Utah Solar Farm Owners, Devaluing Property – Tristan Navera, Bloomberg ($). “The IRS wrongly reducing the tax credit on a Utah solar property, and wrongly assigned it to the property’s owner, that company says.”
Liberty Global’s $110M Tax Refund Kosher, 10th Circ. Told – Anna Scott Farrell, Law360 ($). “The IRS is trying to block Liberty Global's bid for a $110 million tax refund by improperly using a legal doctrine requiring transactions to have economic substance, the telecommunications giant told the Tenth Circuit, arguing it was allowed to make tax-driven choices in the transactions at issue.”
IRS Arbitrarily Denied $42 Million Easement Deduction, Suit Says – John Woolley, Bloomberg ($). “The IRS should allow a $42 million charitable contribution tax deduction for a conservation easement donation, a New York-based donor told the US Tax Court.”
IRS Tells Tax Court AbbVie's $1.6B Break Fee Is a Capital Loss – Kevin Pinner, Law360 ($). “The Internal Revenue Service correctly reclassified AbbVie's $1.6 billion break fee to an Irish biotechnology company as a capital loss, the agency told the U.S. Tax Court, arguing that the failed merger is tantamount to disposing of property.”
What Day is it?
Its National Couscous Day. “This day marks the existence of this fluffy, delicious, and versatile grain that originated in North Africa.”
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