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Tax Controversy & Financial Crimes Report

The increasingly complex area of tax law in the U.S. can cause a variety of legal setbacks for any business. The more notable the tax controversy, the more roadblocks that can be created between a company and its success. Our Tax Controversy & Financial Crimes Report blog addresses the latest developments in all aspects of tax controversy matters and incorporates coverage of efforts to combat financial crimes, particularly money laundering.

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Recent Blog Posts

  • Carpenter May Reveal a Recipe for Defense in High-Tech Criminal and Regulatory Cases Our colleagues Matthew S. Adams and Jana Volante Walshak have authored a client alert about the Supreme Court’s recent decision in Carpenter v. United States, where the court held that cellphone location records deserve heightened protection, once again expanding the Fourth Amendment protections afforded to certain modern digital communications. And in doing so, the unusual five-justice majority led by Chief Justice Roberts has suggested a roadmap for white-collar defense lawyers to follow when strategizing their approaches to other high-tech cases. You... More
  • States Sue Over Deduction Cap, But Midterms Are Coming Four states have filed suit in U.S. District Court for the Southern District of New York, challenging the constitutionality of the new $10,000 cap on the federal tax deduction for state and local taxes, or SALT, enacted as part of the federal Tax Cuts and Jobs Act in 2017. The lawsuit is the latest effort by states to invalidate the SALT cap. It follows legislative workarounds enacted by New York and New Jersey, granting taxpayers in those states credits against state taxes... More
  • Federal Agents at the Door: Responding to a Warrant Your company is under investigation. Federal agents show up at your business looking for documents, computer files and other evidence. It’s a critical moment. What should you do? Matthew D. Lee, a former Justice Department trial attorney and partner in Fox Rothschild’s White Collar Compliance and Defense Practice, explains your options in Episode Two of his this five-part podcast, “Federal Agents at the Door.” Matt tells you exactly what to expect and how to respond. In Episode One, Target, Subject or Witness?, Matt provided... More
  • Knock, Knock. Who’s There? Federal Agents You’ve seen it on CNN. Scores of agents in matching jackets descend on a business or residence, hauling out boxes of documents, laptops and cell phones. How would you react? Don’t panic. Matthew D. Lee has every aspect covered in his new five-part podcast: “Federal Agents at the Door.” A former Justice Department trial attorney, and partner in Fox Rothschild’s White Collar Compliance and Defense Practice, Matt knows what to expect and how to respond. Episode One: Target, Subject or Witness? Matt provides an... More
  • U.S. Supreme Court Removes Tax Advantage for Online Retailers In its 5-4 decision in South Dakota v. Wayfair, the U.S. Supreme Court gave states the authority to require online retailers to collect state sales taxes even if the retailer has no physical presence in a state. The decision overturned pre-internet era rulings that had prohibited states from forcing online retailers to collect sales taxes unless a retailer had a “physical presence” in a state. Wayfair will likely increase states’ sales tax revenue. The Supreme Court noted that the physical presence standard may have... More
  • Employers Beware: ICE Is Ramping Up I-9 Audits to Record Levels Our colleague Alka Bahal has written an article for the Immigration View blog about a dramatic increase in the number of I-9 audits being conducted by U.S. Immigration and Customs Enforcement. More than 5,200 businesses around the country have been served with I-9 inspection notices since January in a two-phase nationwide operation that appears to be the largest I-9 inspection action ICE has undertaken to date. This latest round of workplace audits on employers clearly indicates that the I-9 inspection is... More
  • In Statement, Top Federal Prosecutor in Massachusetts Signals Good News for Recreational Marijuana Industry Our colleague Joseph A. McNelis III has written an excellent article for the In the Weeds blog about a recent statement from the U.S. Attorney in Massachusetts regarding his office’s enforcement priorities surrounding recreational marijuana.  In his statement, U.S. Attorney Andrew Lelling noted that while he cannot “immunize the residents of the Commonwealth from federal marijuana enforcement,” his office’s resources will be focused on (1) unauthorized out-of-state marijuana sales; (2) targeted sales to minors; and (3) organized criminal groups which... More
  • Four States File Lawsuit Seeking to Invalidate New Federal Cap on State and Local Tax Deduction The States of New York, Connecticut, Maryland, and New Jersey filed a federal court lawsuit this week challenging the constitutionality of the new $10,000 cap on the federal tax deduction for state and local taxes (SALT). The lawsuit, filed in the Southern District of New York, names as defendants the Secretary of the Treasury, the Acting Commissioner of Internal Revenue, the Internal Revenue Service, and the United States of America. The States allege that the SALT deduction cap, enacted as... More
  • In Wake of New Policy Against “Piling On,” DOJ and SEC Announce Corporate FCPA Resolution Last month we wrote about the Justice Department’s new corporate resolution policy, which is intended to curb the practice of multiple government authorities imposing separate punishments on a corporate defendant for the same underlying conduct. Employing a football metaphor, Deputy Attorney General Rod Rosenstein explained that the intent of the new policy was to prevent “piling on,” which he described as “a player jumping on a pile of other players after the opponent is already tackled.” In the wake of... More
  • An Update on Litigation of Cannabis Business Tax Issues I have recently penned a Law360 article discussing lessons learned from recent tax decisions impacting cannabis businesses.  We will continue to cover this topic on this blog. To be alerted of updates from Tax Controversy and Financial Crimes Report, please subscribe by clicking here.... More