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In a recent Law360 article, tax controversy counsel Elizabeth Smith, health care partner Jennifer Romig, health care associate Whitney Wadman and tax and benefits law clerk Jenna Grove examine how digital health companies can diagnose sales tax rules.

As digital health technologies and sales tax regimes evolve, digital health companies must evaluate their sales tax

On January 17, 2020, a federal district court in Washington ordered Microsoft Corporation (“Microsoft”) to produce many documents to the Internal Revenue Service (“IRS”) that Microsoft asserted were privileged. Microsoft had argued that most of the documents were protected by protected by the work product doctrine and the federally authorized tax practitioner privilege set forth

On December 19, 2019, in a split decision in Texas v. United States, the Fifth Circuit held that the Individual Mandate (“Mandate”) of the Patient Protection and Affordable Care Act (“ACA”) became unconstitutional when Congress zeroed out the penalty, but vacated the district court’s decision that the ACA itself was unconstitutional without the Mandate. 

On August 16, 2019, the Ninth Circuit upheld Amazon’s cost-sharing arrangement and valuation of its intangible assets, affirming the Tax Court’s 2017 decision. In essence, the holding confirms that U.S. companies transferring all intangibles to foreign subsidiaries need not include global goodwill and going concern value of the business when calculating the mandatory buy-in payment

It is no secret that cryptocurrency holders are facing increased scrutiny by the IRS. In 2018, the agency announced a virtual currency compliance campaign that included outreach and examinations. As part of its latest sequence this summer, the IRS recently publicized that it has begun sending letters to cryptocurrency holders advising them of their reporting

In the wake of the IRS’ Ninth Circuit victory in Altera Corporation v. Commissioner, 926 F.3d 1061 (9th Circuit 2019), the IRS’ Large Business and International (LB&I) Division issued Memorandum LB&I-04-0719-008, informing examiners that they may once again open examinations to require taxpayers to include stock-based compensation costs as intangible development costs under