Law firms should check their state tax laws and consult with their tax professionals to see if the IRS’s Notice 2020-75 allows them a workaround for the unpopular state and local tax deduction limitation.
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* Judge Emmet Sullivan (D.D.C.) wants the IRS to explain, in a sworn declaration, how exactly it lost Lois Lerner’s emails. [WSJ Law Blog]
* And the fun for the IRS continues today in the courtroom of Judge Reggie Walton (D.D.C.), as reported by Sidney Powell, author of Licensed To Lie (affiliate link). [New York Observer]
* Speaker John Boehner wants to take the Republicans’ crusade against Obamacare to the courts. [New York Times]
* Andrew Calder, the young M&A partner that Kirkland & Ellis snagged from Simpson Thacher for a reported $5 million a year, is already bringing in big deals. [American Lawyer]
How the cupcake crumbles: the once-successful venture of an NYLS grad and her husband needs a rescue.
* “Duke University is not and never has been in the business of producing, marketing, distributing, or selling alcohol.” Some bros down in Durham disagree. [ABA Journal]
* If you see something… sue someone? The ACLU and Asian American civil rights groups, together with some help from Bingham McCutchen, have filed a legal challenge to the Suspicious Activity Reporting database. [New York Times]
* Congrats to David Hashmall, the incoming chair of Goodwin Procter — and congrats to outgoing chair Regina Pisa, the first woman ever to lead an Am Law 100 firm, on her long and successful leadership. [American Lawyer]
* A group of investors might end up devouring Crumbs, the cupcake-store chain founded by New York Law School grad Mia Bauer that suddenly shut down this week amid talk of a bankruptcy filing. [Wall Street Journal (sub. req.)]
* A guy who tried to get on the bench more than once was just busted in a prostitution sting. Oops. He also spells his name weird. [The Press Democrat]
* Tomorrow, Gibson Dunn partner Miguel Estrada will argue before the Second Circuit that private parties can’t get injunctions under RICO. For those keeping score, Gibson Dunn partner Randy Mastro hangs his whole case in Chevron v. Donziger on a request for an injunction under RICO. Time to play the Distinguish Polka. [Courthouse News]
* Wait until the RIAA realizes there are royalties to be made at CIA black sites in Uzbekistan. Because the only thing more torturous than being forced to listen to this music is the tenacity of the RIAA. [Slate]
* More on the legislative fight over accrual accounting versus cash-basis accounting for Biglaw firms. To the barricades! Swear your allegiance to Generalissimo MacEwen! [Adam Smith, Esq.]
* Is there a right to online anonymity? All the people out there trying to hire contract killers over the Internet certainly think so. [InsidePrivacy]
* Jay Edelson and Chandler Givens of Edelson PC examine the flawed law firm recruitment model. [Legal Solutions Blog / Thomson Reuters]
* Slip and falls at the IRS office. [Lowering the Bar]
* Oh, and by the way, it’s not just Verizon that the NSA is spying on. It’s every major phone and internet provider, too. They must see an amazing amount of foreign pornography on video chat. [Guardian]
* The IRS is under siege over its conservative targeting scandal, and now a training video parodying Mad Men has surfaced with a focus on “customer service.” How incredibly ironic. [DealBook / New York Times]
* Francine Griesing, the woman who sued Greenberg Traurig for $200M over the firm’s so-called “boys’ club” (and later quietly settled), has tips for women who want to succeed in the law. [Am Law Daily]
* This ruling has to do with collecting fees following a law school clinic victory, but the key takeaway is that law students’ “time and effort still has monetary value.” Hear that, ABA? [National Law Journal]
* Rutgers Law-Camden is trying to recover from “an existential threat” after its class size unexpectedly dropped by more than 50 percent. But… that’s a good thing these days. [Philadelphia Business Journal]
* A judge dismissed Pennsylvania Governor Tom Corbett’s lawsuit against the NCAA for “fail[ing] to advance the ball.” How kind of her to entertain us with some football references. [Legal Intelligencer]
* Let’s get ready to rumble! Some of the Supreme Court’s most controversial opinions yet are expected to be rolled out in the coming weeks — and maybe even today. Stay tuned for news. [CNN]
* Let’s see what happens when Obama nominates three judges at once to the D.C. Circuit. How many of them will be confirmed as quickly as Sri Srinivasan? Probably not many. [New York Times]
* White House counsel and leading litigatrix Kathryn Ruemmler is best known for her fabulous shoes, but this week, she’s taking some flak for her involvement in the IRS scandal. [New York Times]
* “I don’t know whether the Lord Himself could get confirmed at this point.” It looks like poor Attorney General Eric Holder doesn’t have very many people left to turn to thanks to executive and congressional inaction. [Bloomberg]
* When it comes to recent diversity efforts in Biglaw there’s an ebb, but not really a flow, and it’s all being blamed on the recession. Also, “diversity fatigue” is apparently a thing now. [New York Times]
* The $200 million gender discrimination suit filed against Greenberg Traurig over the firm’s alleged “old boys club” has been settled for an undisclosed amount. You go girl! [Thomson Reuters News & Insight]
* According to Judge Murray Snow, Arizona’s most beloved sheriff, Joe Arpaio, has been violating the constitutional rights of all of the Latinos whom he supposedly “hadn’t” been racially profiling. [Reuters]
* My, how things change: David Blankenhorn, a man who once testified as an expert witness in support of Proposition 8 at trial, has come forward to condemn anti-marriage equality laws. [Los Angeles Times]
* Stewart Schwab, the dean of Cornell Law School, will step down in June 2014. Perhaps the next dean will crack down on the number of cam girls pleasuring themselves in the law library. [Cornell Chronicle]
* Law schools tend to be “bastions of liberalism,” which makes it hard for students to find intellectual diversity. It’s a good thing we’ve got the Federalist Society to balance things out. [Washington Times]
* People who think Washington needs another law school propose one for students “who can’t afford to … go into debt … to get their legal degree.” This won’t sit well with the legal academy. [News Tribune]
* With Lindsay Lohan stuck in rehab, Amanda Bynes decided it was her turn to go wild. The retired actress says she’s suing the NYPD for unlawful arrest and sexual harassment. [New York Daily News]
* Alton Lemon, the Supreme Court plaintiff behind the eponymous Lemon test, RIP. [New York Times]
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* “Journalists should not be at legal risk for doing their jobs.” Thanks Obama, but AG Eric Holder was the one who kind of signed off on the James Rosen search warrant. [Open Channel / NBC News]
* The chief judge of the D.C. Circuit apologized for a lack of transparency in the James Rosen probe, and this is one of the least embarrassing things that happened this week. [Washington Post]
* Despite having “done nothing wrong,” embattled tax official Lois Lerner announced she’s been placed on administrative leave in light of recent events. I salute you, fellow WNE grad. [National Review]
* Watch out, patent trolls, because this proposed bill might actually be — gasp! — helpful. If enacted, the Patent Abuse Reduction Act’s goal is to help keep discovery costs down. [Hillicon Valley / The Hill]
* It’s a hell of a drug: for some lawyers, the sequester won’t be such a bad thing after all, because Coast Guard and Navy forces won’t be available to intercept 38 tons of cocaine. [Breaking Defense]
* Proskauer Rose’s ex-CFO, Elly Rosenthal, has cut down her $10 million suit against the firm to just one allegation. She claims the firm fired her solely for her diagnosis of breast cancer. [Am Law Daily]
* A third perpetrator emerged in the Berkeley bird beheading case, and he was just sentenced to two days in jail. Can you listen to BARBRI in a jail cell? I guess he’ll find out. [San Francisco Chronicle]
* The Boy Scouts of America will now admit openly gay youths into their ranks for the first time in the history of ever. You should probably “be prepared” for a flurry of litigation over this. [New York Times]
* A mistrial was declared in the penalty phase of the Jodi Arias murder trial. Ugh, come on with this, the Lifetime movie is already in post-production! How on earth are they going to work this in? [CNN]
* A bipartisan immigration reform bill made its way through the Senate Judiciary Committee and will head to the Senate floor. Of course, the amendments in support of gay marriage didn’t make it in, but that may be moot soon anyway. [CNN]
* IRS official Lois Lerner may not be very “good at math,” but at least she seems to know the basic principles of constitutional law. She’ll invoke her Fifth Amendment rights before the House Oversight Committee today. [Politico]
* The D.C. Circuit ruled that the top secret Osama bin Laden death photos will remain top secret, but the internet’s desperate cries of “pics or it didn’t happen” will live on in our hearts. [Thomson Reuters News & Insight]
* Attention naysayers: it may be time to face the music. According to the latest Altman Weil survey, most law firm leaders think all of these fun recession-driven changes are here to stay. [Am Law Daily]
* Twenty-two law firms are banding together to fight against fraudulent financial products on a worldwide scale. It’s too bad this legal alliance didn’t exist before the Bernie Madoff scandal. [New York Times]
* It looks like New Jersey may soon be hopping aboard the pro bono work before bar admission train. You better hope you get your clinic placements in order, people. [New Jersey Law Journal (sub. req.)]
* The results for the February 2013 bar exam in California are out, and they’re frightening. It’s time to try that acting thing again, because only 41 percent of all test takers passed the exam. [The Recorder]
* Jodi Arias is now begging jurors to allow her to live out the rest of her days in prison. She wants to contribute to society by painting, recycling, and… not slashing additional throats. Lovely. [Fox News]
* Our thoughts and prayers go out to the people of Oklahoma. [CNN]
* The IRS and the Treasury Department better watch out, because it seems that the “next logical step” for the tea party victims of heightened scrutiny leads right up the courthouse stairs. [ABC News]
* #Whatshouldwecallme after advising on the $1.1 billion Yahoo/Tumblr deal? Kind of a big deal. The Biglaw firms doing the underlying legal work are Simpson Thatcher and Gunderson Dettmer. [Am Law Daily]
* The Mirena MDL judge thinks female attorneys should be on the all-male executive committee. If this is “strategic gender placement,” the strategy is to look bad publicly. [Thomson Reuters News & Insight]
* The Travers Smith trainee who was fired for getting pregnant is due in court this June to find out what type of compensation she’ll receive for being discriminated against by the firm. You go girl! [Daily Mail]
* Wherein the parents of a 0L who’s got doubts about her employment prospects are counseled that she can “work not just in law.” ::facepalm:: [Law Admissions Lowdown / U.S. News & World Report]
* There’s trouble in paradise: lawyers in the Jodi Arias case unsuccessfully attempted to get a mistrial and withdraw from representation — for the second time — during its punishment phase. [Fox News]
* Obama might have found out about the IRS scandal “when it came out in the news,” but the Office of White House Counsel knew what was going on weeks ago. Hooray, a new reason for people to lose their sh*t. [Wall Street Journal (sub. req.)]
* Life, liberty, and the pursuit of happiness through ridiculously expensive litigation: making up almost two percent of our GDP, our legal system is the most costly on earth, which isn’t exactly something we should be bragging about. [Corporate Counsel]
* “It’s no surprise these lawyers would want to get off this sinking ship.” It looks like things are going just swimmingly for Steven Donziger now that John Keker’s out as his defense attorney in the Chevron fraud case. [Thomson Reuters News & Insight]
* “Fantasy sports is usually the first and last thing I’ll do each day.” Here’s some proof that there’s such a thing as work/life balance in Biglaw… which is only applicable if you’re a partner. [Am Law Daily]
* Law school enrollment is down, and so is tuition revenue, so the legal academy is now selling new degrees. It’s only a matter of time before they market employment timeshares. [National Law Journal]
* On the bright side, if you’re still looking for a job, our own David Lat has some advice on how to get one (and how NOT to get one). We miss summer associates’ misbehavior. [U.S. News & World Report]
* Congrats are in order for this weekend’s graduates, including the first graduates of LMU’s embattled law school — they won’t let a lack of ABA accreditation rain on their parade. [Knoxville News Sentinel]