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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Current Developments in Business & International Taxation

Published by Jerry August, this blog provides news and analysis of the latest trends in state, federal and international business taxation. You’ll find summaries of major tax legislation such as the Tax Cuts and Jobs Act of 2017, updates on significant changes in state, federal and international tax law and in-depth analysis of important court rulings that affect businesses’ tax exposure, and subsequently their bottom lines.

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Recent Blog Posts

  • Key Steps the Pharma and Bioscience Sectors Must Take Ahead of Federal Scrutiny of COVID-19 Relief Funding November 23, 2020 – Alerts By Ernest E. Badway An unprecedented explosion of government investigation and enforcement is at hand as federal regulators focus their efforts on ferreting out any fraud or abuse of the $1 trillion in COVID-19 relief funding programs through loans, grants and tax credits. For pharma and bioscience companies, it is imperative to take steps now to limit the risks and consequences of such investigations. Regulatory threats to these companies may be forestalled by quick action to preserve evidence and correct... More
  • SBA Announces New Paycheck Protection Program Loan Necessity Questionnaire By Paul B. Edelberg On October 26, the Small Business Administration (SBA) published a notice in the Federal Register seeking approval from the Office of Management and Budget to release two new forms to be sent to borrowers under the Paycheck Protection Program (PPP) in preparation for audits by the agency. Because these audits have significant legal implications for borrowers such as disqualification and potential civil and criminal liability, entities that obtained PPP loans should consult counsel and exercise great care in answering... More
  • Compassionate Release – Are You Eligible? By Marissa Koblitz Kingman Since the pandemic began, the federal courts have been inundated with Compassionate Release applications from attorneys seeking the immediate or early release of clients in custody. Compassionate Release is indeed a feasible option for some people who are incarcerated or about to surrender to a federal prison. Because Compassionate Release is a worthwhile opportunity, it is extremely important that you have a knowledgeable attorney to assist you during the process. What is Compassionate Release? A person requests Compassionate Release... More
  • PPP Loan Fraud Enforcement 2.0: Preparing for the Next Round of Scrutiny By Matthew D. Lee and Marissa Koblitz Kingman While the $525 billion Paycheck Protection Program (PPP), enacted as part of the CARES Act, has undoubtedly helped millions of deserving businesses survive the COVID-19 pandemic, it has also provided a unique opportunity for fraudsters to take advantage of the government’s unprecedented largesse. The Justice Department has already filed charges against dozens of borrowers alleging PPP loan fraud, but federal authorities are preparing to cast a wider net that will dramatically expand the number... More
  • FinCEN Clarifies FBAR Deadline Confusion On October 14, 2020, FinCEN posted an incorrect message on its Bank Secrecy Act (BSA) E-Filing website.  The message incorrectly stated there was a new filing extension until December 31, 2020, for all filers of Reports of Foreign Bank and Financial Accounts (FBARs).  The extension until December 31, 2020, however, was intended only as an accommodation for victims of recent natural disasters covered in FinCEN’s October 6, 2020 notice. FinCEN has apologized for the error and any confusion this has caused,... More
  • FinCEN Extends FBAR Deadline to December 31 for Victims of Recent Natural Disasters The Treasury Department’s Financial Crimes Enforcement Network (FinCEN) has announced that victims of the California Wildfires, the Iowa Derecho, Hurricane Laura, the Oregon Wildfires, and Hurricane Sally have until December 31, 2020, to file Reports of Foreign Bank and Financial Accounts (commonly referred to the FBAR form) for the 2019 calendar year. The FBAR for calendar year 2019 otherwise would be due on or before October 15, 2020. FinCEN is offering this expanded relief to any area designated by the Federal... More
  • Will You Be Ready for a Paycheck Protection Program Audit? By Matthew S. Adams, Matthew D. Lee and Christopher J. Pippett The Small Business Administration (SBA) has opened the portal for applications for forgiveness of Paycheck Protection Program (PPP) loans established under the Coronavirus Aid, Relief and Economic Security Act (CARES Act). The commencement of the loan forgiveness application process raises two important questions for many borrowers: To what extent will the loan be forgiven? Will the loan and application be audited by the SBA? The answer to the first question is fairly straightforward. A borrower’s loan... More
  • Matthew D. Lee Authors 2020 Update to FATCA Answer Book Fox Rothschild LLP Partner Matthew D. Lee authored an updated version of the Foreign Account Tax Compliance Act Answer Book, which summarizes the latest developments with respect to the FATCA regulatory framework, including new regulations issued in early 2020 and the current status of negotiations of intergovernmental agreements to enforce FATCA around the globe. The update includes discussion of enforcement efforts by the Internal Revenue Service, such as a new compliance campaign aimed at FATCA reporting by foreign financial institutions, as well... More
  • Early Cases Demonstrate the Justice Department’s Commitment to Aggressively Prosecute PPP Loan Fraud By Matthew D. Lee and Marissa Koblitz Kingman Shortly after the Small Business Administration began accepting applications for Paycheck Protection Program (PPP) loans, two Rhode Island businessmen quickly applied for a combined $543,881 from the program. A few days later, the Justice Department announced that both were criminally charged with conspiracy to make false statements to influence the SBA and conspiracy to commit bank fraud, becoming the first individuals to face criminal charges related to the program, which was created by... More
  • Expatriation From the United States of High Net Worth Individuals and Families to Avoid High Levels of Income and Wealth Tax: Meet The US Inheritance Tax on Gifts From Covered Expatriates By: Jerald David August Chair, International Taxation and Wealth Planning Group This is the fourth and last segment to the set of posts that summarizes the expatriation rules contained in the Internal Revenue Code. This last segment addresses exceptions to the mark-to-market rules under Section 877A and moves onto to address the somewhat overlooked succession tax under Section 2801. Exceptions to the Mark-to-Market Tax Under Section 877A The mark-to-market tax applies to most types of property interests held by the individual on the... More