Key Takeaways
- Tariffs in the Courts
- Tax Policy and Bills, Maybe?
- Global Minimum Tax Relief?
- Depreciation Deduction for Domestic Production
- Tips and Overtime Instructions
- In the Courts
- World Wildlife Day
Tariffs in the Courts
Federal Circuit Denies Trump’s Attempt to Delay Tariff Refunds – Caitlin Mullaney, Tax Notes ($):
The Federal Circuit's March 2 order granted a motion filed by the companies at the center of the U.S. Supreme Court's decision in V.O.S. Selections Inc. v. United States striking down President Trump’s illegal tariffs. The motion asked the court to immediately issue a mandate returning the jurisdiction of the case to the U.S. Court of International Trade (CIT).
Trump Administration Loses Push to Delay Tariff Refund Fight – Zoe Tillman, Bloomberg ($):
In an order Monday, the US Court of Appeals for the Federal Circuit took immediate steps to reopen the legal proceedings and send the case back to the US Court of International Trade. The court denied the government’s request to maintain a pause for as long as four months.
A group of small businesses whose case was before the justices had urged the Federal Circuit in Washington, DC, to immediately close out its phase of the litigation so that they can move ahead with pursuing refunds as soon as possible.
Next Major Tariff Case May Already Be at the Supreme Court – Chandra Wallace, Tax Notes ($):
Immediately after the Court invalidated a large part of the administration’s sweeping tariff program February 20, President Trump and United States Trade Representative Jamieson Greer said they would initiate actions under other statutory authorities, including section 301 of the Trade Act of 1974, to replace the tariffs.
FedEx Customers Seek Refunds For Passed-On Tariff Costs – Jack McLoone, Law 360 ($):
Federal Express Corp. customer Matthew Reiser's proposed class action, filed Friday, is looking to recoup all import duties and "ancillary brokerage fees" charged by FedEx on goods that would have been considered duty-free if not for Trump's International Emergency Economic Powers Act tariffs struck down by the U.S. Supreme Court last month.
Tax Policy and Bills, Maybe?
Ted Cruz asks Treasury to approve $200 billion tax cut without Congress – Jeff Stein, Washington Post:
Sens. Ted Cruz (R-Texas) and Tim Scott (R-South Carolina) will send a letter to Treasury Secretary Scott Bessent on Tuesday urging him to use executive authority to reduce some of the taxes paid on capital gains — a change that would lower the tax burden on Americans selling stocks, businesses, homes and other assets, according to a copy obtained by The Washington Post ahead of its release. The senators argue the administration does not need congressional approval to make the shift, although some conservative legal experts and Treasury officials have disagreed with that conclusion in the past.
New Bill Would Target Billionaires With 5 Percent Wealth Tax – Cady Stanton, Tax Notes ($):
The Make Billionaires Pay Their Fair Share Act, introduced March 2 by Senate Finance Committee member Bernie Sanders, I-Vt., and Rep. Ro Khanna, D-Calif., would establish a 5 percent annual wealth tax on “the net value of assets” of those with more than $1 billion in assets in the United States. The revenue from the tax would be used to provide a $3,000 direct payment to every adult or child making $150,000 or less per year.
Sanders pitches $4.4 trillion tax on billionaires, in 2028 marker – Jeff Stein, Washington Post:
The plan is a nonstarter in the current Republican-controlled Congress, but could become a litmus test for candidates in the 2028 Democratic presidential primary, much like Sanders’s Medicare-for-all plan was during the 2020 presidential cycle.
Sanders’s new legislation, which expands on his prior efforts, calls for an annual 5 percent wealth tax on America’s billionaires. Revenue from the tax would be redirected to social spending programs, including $3,000 cash payments for Americans earning less than $150,000 per year, a $60,000 minimum salary for every public school teacher, and an expansion of Medicare to cover dental, vision and hearing care, among other measures.
Home Sales Bill Would Fix ‘Outdated’ Tax Code Rule, Groups Say – Tyrah Burris, Tax Notes ($):
Passage of the More Homes on the Market Act (H.R. 1340) is needed to fix an “outdated tax code provision that punishes long-time homeowners for selling their homes,” according to the groups’ March 2 letter to House Speaker Mike Johnson, R-La., and Senate Majority Leader John Thune, R-S.D.
Global Minimum Tax Relief?
US Firms Likely to See Relief From Global Minimum Tax Dilemma – Michael Rapoport, Bloomberg ($):
Amgen Inc., GE Aerospace, and Mastercard Inc. are among the companies that had to pay added taxes in certain countries for 2025 to push their tax bills up to the 15% global minimum, according to more-detailed disclosures now required of US companies. The January agreement to exempt US companies from parts of the tax isn’t retroactive.
In some cases, particularly in Singapore, the extra taxes nullify part of the value the companies get from special tax incentives. The information on companies’ minimum taxes, included in their recent securities filings and mandated by new accounting rules, helps make that dilemma clear.
Depreciation Deduction for Domestic Production
Tax Pros Find Clarity and Flexibility in Building Bonus Notice – Nathan J. Richman, Tax Notes ($):
In Notice 2026-16, 2026-11 IRB 1, released February 20, the IRS and Treasury described their plans for proposed regulations under section 168(n), a new statute created by the One Big Beautiful Bill Act (P.L. 119-21) that temporarily allows taxpayers to immediately expense some nonresidential real property.
Tips and Overtime Instructions
IRS Explains Rules For Claiming Tips, Overtime Deductions – Asha Glover, Law 360 ($):
The deduction for qualified tips is available for up to $25,000 and will be phased out for individuals who make more than $150,000 in annual income, according to the new instructions. The instructions also clarify that taxpayers should report tip income that was not reported on IRS Form 1040, including noncash tips such as tickets and other items of value. Taxpayers who received more than $20 of tips in a month and didn't report all those tips to employers must file Form 4137, according to the instructions.
Thomas Goldstein Verdict
4 Things That Likely Sealed Fate Of SCOTUSblog Founder – Jared Foretek, Law 360 ($):
More than 30 witnesses took the stand, and hundreds of exhibits were presented to the jury. But the case was no slam dunk for the government. Prosecutors had to keep jurors engaged through a lengthy proceeding that was delayed twice by snow, and they had to build the case without a "smoking gun" in which Goldstein was documented telling his bookkeepers or accountants to misclassify transactions.
In the Courts
Lorillard Loses Bid for Justices’ Eye on NJ Business Tax Case – Perry Cooper, Bloomberg ($):
The company asked the justices to review a New Jersey appeals court’s 2025 decision that a 2020 amendment to the state’s addback regulation applied retroactively to Lorillard’s refund claims for tax years 1999-2004. The regulation interpreted the addback statute, which requires taxpayers to include in their taxable income otherwise-deductible royalties paid to a related party unless they can establish the adjustments are “unreasonable.”
Tax Court Rules on Basis Consequences of Check-the-Box Election – Kristen A. Parillo, Tax Notes ($). “A foreign entity’s decision to elect disregarded status under the U.S. check-the-box rules after contributing a $610 million note to a partnership resulted in the entity’s owner having zero basis in the note, the Tax Court held.”
Partnership Has No Basis in $610 Million German Note, Court Says – James Matheson, Bloomberg ($). “A German holding company and a partnership both have zero basis in a $610 million promissory note contributed to one of the holding company’s subsidiaries, the US Tax Court held Monday, granting the IRS summary judgment.”
Partnerships’ Easement Deductions Reduced by Over $31.6 Million – Trevor Sikes, Tax Notes ($). “Two partnerships overvalued their conservation easement deductions largely because the lands at issue likely couldn’t be used as granite quarries, the Tax Court held.”
Tax Court Rejects Easements' Mining Values, Cuts Deductions – Kat Lucero, Law 360 ($). “The U.S. Tax Court substantially reduced the million-dollar charitable deductions claimed by two partnerships for their Georgia conservation easement donations, rejecting their valuations premised on the properties' potential mining use in a Monday opinion.”
Heirs Of $4M Oil Estate On Hook For Taxes, Judge Rules – Anna Scott Farrell, Law 360 ($). “Sons of an owner of oil and gas businesses owe taxes on his $4 million estate, a Kansas federal judge said, finding that the sons' agreement to pay the bill in installments allowed the IRS extra time to sue them when they stopped paying the debt.”
What Day is it?
Its World Wildlife Day. Hug a giraffe.*
*Please don’t actually hug a giraffe unless yours looks like mine.
Make a habit of sustained success.
