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1 day ago | 
news.bloombergtax.com | Daniel Xu |Melanie Cohen
A unanimous US Supreme Court decided last week that a plaintiff claiming a transaction is “prohibited” under the Employee Retirement Income Security Act’s Section 406(a)—which prohibits certain transactions between an employee benefit plan and “party in interest”—has no burden to also plead that the transaction doesn’t otherwise fall within an enumerated exemption to these transactions under ERISA Section 408. The ruling inCunningham v.
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2 days ago | 
news.bloomberglaw.com | Daniel Xu |Melanie Cohen
Last month, the IRS Advance Pricing and Mutual Agreement program released its annual APA report describing the experience, structure, and activities of the program in 2024. The report indicates that APAs remain an effective, often-used process to avoid transfer pricing disputes, especially as shifting tariff policies could add greater complexity. Overall, APMA had another successful year in negotiating and resolving APAs with taxpayers and treaty partners.
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3 days ago | 
news.bloombergtax.com | Daniel Xu |Melanie Cohen
“High agency” is when a person feels in control, owns responsibility and decisions, and believes they can shape their destiny. For legal leaders, it means proactively driving outcomes and influencing business strategy, not simply reacting to issues. In-house legal leaders with high agency don’t just flag risks; they find solutions, navigate complexity, and position themselves as indispensable partners.
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3 days ago | 
news.bloomberglaw.com | Melanie Cohen |Daniel Xu
If the federal government outside of the IRS wants access to taxpayer data, it must prove the need, protect the data, and make the use transparent. Right now, none of that is happening. The Elon Musk-led Department of Government Efficiency is seeking expanded access to the IRS’s most sensitive databases, claiming it wants to root out fraud and streamline oversight. But granting access without strict limits risks undermining the privacy protections that should undergird US tax law.
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1 week ago | 
news.bloomberglaw.com | Daniel Xu |Melanie Cohen
Imagine ABC Company developed proprietary technology for enterprises and is in talks to be acquired by D Company for a proposed price of $100 million. What does this really mean? And how can ABC Company’s founders position themselves to get the best deal possible? Letter of IntentThe first step in an acquisition is generally to enter into a letter of intent, a (mostly) non-binding agreement setting out the basic terms of the deal. The LOI is where a seller has the most leverage.
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1 week ago | 
news.bloombergtax.com | Daniel Xu |Melanie Cohen
Louisiana is becoming a battleground for lawfare, with Gov. Jeff Landry (R) and the state attorney general’s office supporting the plaintiffs advancing creative lawsuits for “land loss”—cases that are pressing courts to accept tenuous theories of liability and taxing energy production. Since 2013, 43 lawsuits brought by multiple cash-strapped Louisiana parishes against energy producers have lingered throughout the state.
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1 week ago | 
news.bloomberglaw.com | Daniel Xu |Melanie Cohen
Louisiana is becoming a battleground for lawfare, with Gov. Jeff Landry (R) and the state attorney general’s office supporting the plaintiffs advancing creative lawsuits for “land loss”—cases that are pressing courts to accept tenuous theories of liability and taxing energy production. Since 2013, 43 lawsuits brought by multiple cash-strapped Louisiana parishes against energy producers have lingered throughout the state.
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1 week ago | 
news.bloombergtax.com | Daniel Xu |Melanie Cohen
Few principles in tax policy are more foundational than horizontal equity, or the idea that taxpayers with similar incomes should be taxed similarly. But several states are proposing to exempt college athletes’ name, image, and likeness income from state taxes—a regressive and poorly justified move that reveals how far we’ve strayed from horizontal equity in tax design. Many student-athletes are pulling in six- or seven-figure incomes before they’ve even declared a major.
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1 week ago | 
news.bloombergtax.com | Melanie Cohen |Daniel Xu
As during the Covid-19 pandemic, force majeure provisions and pricing adjustment clauses written pre-2023 are likely inadequate for today’s volatility. The new regulatory framework demands enhanced record-keeping, and customs authorities are increasingly scrutinizing origin claims. The closing of the de minimis loophole means that even low-value imports now require more paperwork, delays, and costs.
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1 week ago | 
news.bloomberglaw.com | Daniel Xu |Melanie Cohen
As states modernize their rules for digital goods and services, one issue seems to keep resurfacing: bundled transactions, in which a single sale includes a mix of taxable and nontaxable products, such as streaming services paired with digital downloads or other promotional items. The state tax treatment of these bundles is often murky. And in many cases, sellers get to decide unilaterally and with no transparency on how the transaction should be taxed.
