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IRS Launches New Large Partnership Audits, Relying on AI and Increased Funding

The IRS is making good on its promise to step up enforcement on large partnerships that issue more than 100 annual K-1s and have more than $100 million in assets. As noted in this Latham Client Alert, the IRS’s renewed focus...more

New IRS Unit Leverages AI to Step Up Partnership Audits; Hundreds of New Inquiries Expected

The IRS’s simmering concern with pass-through entities is heating up, with IRA funds earmarked for increased personnel, AI, and other resources for partnership audits. ...more

US Tax Court Voids Penalties Affecting Syndicated Conservation Easements; Treasury Reacts With Proposed Regulations

The Tax Court’s decision setting aside IRS Notice 2017-10 for ignoring the APA’s notice and comment requirements has serious implications for other notices identifying listed transactions. Key Points: ..Notice 2017-10...more

Caring for the CARES Act: The New Oversight and Investigations Landscape for COVID-19 Relief Programs

Economic aid legislation will likely result in increased scrutiny of certain industries, similar to investigations that followed relief efforts in the 2008 financial crisis. Key Points: ..The CARES Act creates multiple...more

IRS Launches New Compliance Campaigns on Repatriation of Foreign Earnings and Virtual Currency

LB&I has announced compliance initiatives regarding the Section 965 Transition Tax, Repatriation via Foreign Triangular Reorganizations, and Virtual Currency transactions. Key Points: ..The IRS continues its efforts to...more

Tax Act Changes Deductibility of False Claims Act Payments

The new tax law limits the deductibility of False Claims Act settlements and requires that settlement agreements identify the deductible “restitution” amount. Settlements under the False Claims Act (FCA), which often...more

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