420 million after taxes

Last month, the U.S. Court of Appeals for the First Circuit affirmed the award of a $50 million tax refund to Fresenius Medical Care Holdings, Inc. The court agreed with Fresenius that certain payments in settlement of alleged False Claims Act violations were tax-deductible. The case is Fresenius Medical Care Holdings, Inc. v. United States, No. 13-2144 (1st Cir. Aug. 13, 2014).Fresenius operates dialysis centers within the United States and abroad, and in the mid-1990s its predecessor company faced an array of FCA whistleblower suits and related government investigations. Fresenius eventually settled both criminal and civil matters with the Government, agreeing to pay $385,147,334 to resolve the civil matters.Fresenius claimed a tax refund based on the amount it paid to settle civil FCA claims. Civil FCA violations normally result in treble damages and a statutory penalty per false claim. Although the Government agreed that Fresenius could deduct an amount equal to single damages … [Read more...] about First Circuit Affirms $50 Million Tax Refund for FCA Settlement Payments

October 24, 2016 - On Wednesday, 27 pharmaceutical firms contributed almost $22 million to fight Proposition 61, a measure that would limit the price California pays for prescription drugs.The one-day tally is more than the total amount of money raised for and against 11 of the 17 measures on the state’s November ballot, a MapLight analysis has found.This late surge in donations suggests the pharmaceutical industry is worried Prop. 61 will pass. Some polls have indicated that a majority of likely voters support price limits.Wednesday’s contributions were part of the $109 million drug companies and their trade association have given to defeat Prop. 61. The initiative’s supporters, which include the AIDS Healthcare Foundation and the California Nurses Association Political Action Committee, have raised $14.5 million. Total contributions for and against the measure have topped $123 million, making it the most expensive ballot battle this election.Last week also saw … [Read more...] about As Election Day Nears, Drug Companies Pour $22 Million into California Ballot Battle

Tip of the Month: Given the budget shortfalls, some state legislatures introduced sweeping legislature to review certain programs such as the potential elimination of enterprise zones in Illinois.  Please note that if these bills are passed, they may be retroactively applied thereby eliminating benefits which may have been negotiated but not awarded, or just yet, benefits that have already been awarded.  While retroactive legislation seems inherently wrong, states are seeing some significant wins on the state tax cases involving such legislation.  Therefore, those who are negotiating incentive deals need to proceed with more caution than ever.  Incentive PackagesIndiana- Indiana announced that the Indiana Economic Development Corporation has offered CliqStudios LLC -- a Minnesota-based cabinet company -- up to $1.8 million in conditional tax credits and up to $200,000 in training grants for its plan to invest $5.1 million in new office space and create up to 200 … [Read more...] about November 2016 Tax Credits & Incentives Update

The revenue portion of the recently passed Executive Budget for 2014–2015 significantly changes New York’s estate tax and the way in which New York taxes the income of certain trusts.Estate Tax ChangesPrior LawNew York is an expensive place to die. Unlike most states, it imposes an estate tax on the estates of residents who die owning assets worth $1 million or more. Its estate tax rates begin at 3.06 percent and increase to 16 percent. The New York estate tax is deductible against the federal estate tax, so the actual tax rate may be lower, as discussed below. Until the 2014 legislation, New York’s $1 million exemption amount was much lower than the federal estate tax exemption amount of $5,340,000, which is adjusted annually for inflation.New York does not have a state gift tax. Before the 2014 tax law amendments, a New Yorker’s lifetime gifts were not taken into account in determining his or her estate tax.The New LawCalculation of Estate TaxNew York’s … [Read more...] about New 252 Percent Estate Tax Bracket and Other Tax Changes Affect Wealthy New Yorkers

Michael “Mickey” Sherman was making good money as a celebrity criminal defense lawyer. But not enough to pay for both the lavish lifestyle he and his family live as well as his income tax.So he put his living expenses first and let the unpaid taxes balloon to as much as $1 million, reports Greenwich Time.Today, after pleading guilty in June to failing to pay a little over $420,000 in taxes from 2001 and 2002, the almost 40-year Connecticut practitioner was sentenced by a federal judge in Bridgeport to a year and a day of incarceration. He was making between $800,000 and $1 million at the time he wasn’t giving the Internal Revenue Service its due, according to Assistant U.S. Attorney Peter Jongbloed.The IRS reportedly plans to pursue him civilly for the rest of the unpaid taxes.Sherman never tried to conceal his income and filed required returns. His only failing was not paying the tax that was due, according to Greenwich Time and the Associated Press.Sherman’s … [Read more...] about Celebrity Lawyer Put Lifestyle Before IRS, Gets 1 Year and 1 Day in Tax Case