In Law360 Tax Authority’s Jan. 21 post, “Utah Case Could Upend Residency And State Income Taxation,” Holland & Hart state and local tax partner Steve Young was quoted. A case before the Utah Supreme Court could create a precedent for deciding when a state can determine who counts as a citizen and is thus subject to state income tax. Young explains how the constitutional questions and evidence before the Utah justice are convincing enough to pique the interest of the American College of Tax Counsel (ACTC), a group of the country’s top tax experts who normally only comment on cases before the United States Supreme Court. The ACTC brief was co-authored by Young, a Fellow of the College.
“Under the constitution, there are several issues,” Young said. “Problems with due process that go against the minimum contacts exam that we all heard about in law school. Then there’s the commerce clause, because if every state adopted this taxation scheme, there would clearly be multiple taxation among states.”
May 8, 2020
Marc Gerson, a former majority tax counsel for the House Committee on Ways and Means, gave his thoughts on competing House and Senate measures to broaden the employee retention tax credit, which was implemented in the Coronavirus Aid, Relief, and Economic Protection Act (CARES Act). The gaps between the proposed credit expansions should be easy to reconcile, according to Gerson, but the timing and scale of any future expansion are unknown. “It’s important to remember that credit talks won’t really start until the total size of the bill and its major components are settled upon,” he said. “Furthermore, if a smaller bill concentrating on unemployment insurance and other select items is reached, the credit debate will be postponed until after the August recess.”
Caplin & Drysdale has asked a federal judge in New York to appoint the firm as lead or co-lead defense counsel in a suit accusing hundreds of US pension funds of a $2.1 billion scheme to defraud Danish tax authorities, citing the firm’s expertise in tax litigation and white collar matters.
Caplin & Drysdale partner Mark Allison said in a letter to U.S. District Judge Lewis A. Kaplan on Wednesday that he is lead counsel in 104 of the 140 cases brought by the Danish Customs and Tax Administration, or SKAT, that have been consolidated in the Southern District of New York. The firm has also represented similarly situated taxpayers in court cases surrounding pension schemes including the Millennium Multiple Employer Welfare Benefit Scheme and the Professional Benefits Plan, which are part of the current litigation.
“My extensive work in tax, tax arbitration, and white collar protection had provided me with considerable exposure to complex cross-border tax litigation problems, particularly those that occur under operative United States treaties and often include the intricate interplay with international tax law,” Allison told the court.
In “Crypto Holders Still Face Confusion About Int’l Reporting,” published in Law360 Tax Authority, Sahel Assar, a shareholder in the firm’s Tax division, addresses the foreign reporting responsibilities of cryptocurrencies.
“Our recommendation is that you should report more often than not,” said Sahel Assar, a lawyer with Buchanan Ingersoll & Rooney PC. “The IRS is going all out to catch people who haven’t been filing their taxes. You simply don’t want to be in a situation where they say, “Oh, yeah, you should have.””