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

  • The PPP Loan Process: How to Fix Mistakes Before It’s Too Late By Gabriel Herman and Marissa Koblitz Kingman Paycheck Protection Program (PPP) loans were designed to help small businesses cover explicit allowable expenses during the COVID-19 pandemic. There are various eligibility requirements that businesses must satisfy before applying for PPP loans and subsequently upon seeking forgiveness. Because the loans were sought and made at rapid speed, many business owners unknowingly made errors in the application process or while spending the loan monies. Many lenders did not flag or even recognize such errors.... More
  • Justice Department Continues Historic Level of Enforcement Against COVID-19 Fraud April 20, 2021 – Alerts By Matthew D. Lee and Marissa Koblitz Kingman The Justice Department continues to intensify its crackdown on COVID-19 relief program fraud, a clear indication that any individual or business that has benefited from the government aid should expect enhanced scrutiny from various government agencies in the coming months and possibly years. The Coronavirus Aid, Relief, and Economic Security (CARES) Act, enacted in March 2020, was intended to provide emergency financial assistance to those suffering economic losses related to COVID-19. The... More
  • Two Businessmen Convicted of Bank Fraud Conspiracy for Assisting Cannabis Company With Transactions By Patrick J. Egan, Joshua Horn and Stephanie Ohnona Two businessmen have been convicted in U.S. District Court for the Southern District of New York of helping a California-based cannabis company avoid bank flags for illegal cannabis-related transactions. A New York jury found the men guilty of bank fraud conspiracy in violation of 18 U.S.C. § 1349. Eaze, a cannabis product delivery app developer, aimed to let customers purchase cannabis products with their credit cards. Federal prosecutors alleged that the two men,... More
  • The Nuts and Bolts of Compassionate Release Applications for Federal Inmates Matthew S. Adams and Marissa Koblitz Kingman have authored an article for New Jersey Lawyer entitled “The Nuts and Bolts of Compassionate Release Applications for Federal Inmates.”  You can read the full article here.... More
  • How the Corporate Transparency Act Shakes Up AML: Beneficial Ownership Updates and More Joshua Ashby and Kimberly L. Kwan have co-authored a Corporate Compliance Insights article entitled “How the Corporate Transparency Act Shakes Up AML: Beneficial Ownership Updates and More.” Their article addresses the recently-enacted Corporate Transparency Act, and how that new law changes what constitutes beneficial ownership and establishes more robust automated data collection. In addition, the law increases responsibilities and incentives for employees to blow the whistle on money-laundering activity. You can read the full article by clicking here.... More
  • DOJ Announces First Criminal Prosecution for Misuse of COVID-19 Relief Funds Dedicated to Health Care Providers By Matthew D. Lee and Marissa Koblitz Kingman The Justice Department has widened its crackdown on COVID-19 fraud, announcing the first criminal case alleging misuse of federal relief funds designated for medical providers. The egregious nature of the alleged fraud and relatively small amount of funds involved provide valuable clues about the pace, breadth and focus of future prosecutions. The Coronavirus Aid, Relief, and Economic Security (CARES) Act, enacted March 29, 2020, established the Provider Relief Fund, which distributed funds to medical... More
  • IRS Restricts Levy Actions Involving EIP or PPP Funds In recognition of the continuing economic hardship caused by the COVID-19 pandemic, the Internal Revenue Service is easing its collection activities to avoid the seizure of bank accounts containing either Economic Impact Payments or Paycheck Protection Program loan proceeds. In a guidance memorandum issued to all collection employees, the IRS has directed that before issuing a levy, employees should contact the taxpayer in question to determine if it received a PPP loan, and if so, where the funds were deposited.  Employees... More
  • Civil Settlement in PPP Loan Fraud Case Opens New Battle Lines The U.S. Justice Department announced its first civil settlement with a Paycheck Protection Program borrower alleged to have committed fraud in connection with this highly popular COVID-19 relief program. A bankruptcy online retailer and its chief executive officer agreed to pay $100,000 in damages and penalties to resolve claims that they committed fraud in connection with multiple PPP loan applications. The company, SlideBelts Inc., also agreed to repay its PPP loan in full. The Paycheck Protection Program is one of the signature provisions... More
  • Fox Rothschild’s Fourth Annual Federal Tax Controversy Summit On January 12, 2021, please join members of Fox’s Tax Controversy team for a review of recent developments in federal tax controversy and civil and criminal tax enforcement, as well as a look ahead at what 2021 may hold.  Matthew D. Lee, Jerald David August and Vivian Hoard will review recent developments in federal tax controversy with a focus on the following topics: Developments in IRS enforcement regarding conservation easements Latest updates and guidance regarding centralized partnership audit rules Federal tax enforcement in the age of... More
  • Congress Enhances Significant Tax Breaks for Businesses in Consolidated Appropriations Act By Maureen Monaghan and Adam Young  The Consolidated Appropriations Act, 2021 (Act), signed into law on December 27, 2020, amends certain tax provisions of the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) and the Families First Coronavirus Response Act (FFCRA). It also clarifies the tax treatment of Paycheck Protection Program (PPP) loan forgiveness, extends certain deferred payroll taxes and expands the deduction for business meals, among other provisions. While the Act is helpful in extending and expanding current tax benefits,... More