This section provides continuing legal education to its members in the areas of state and federal taxation law. It also maintains a liaison with the Tennessee District of the Southeast Region of the IRS and the Tennessee Department of Revenue.
Attorney General Eric Holder said the FBI's criminal investigation of the Internal Revenue Service could include potential civil rights violations, false statements and potential violations of the Hatch Act, which prohibits federal employees from engaging in some partisan political activities. Holder announced that the Justice Department was investigating the IRS after the agency acknowledged that agents had singled out conservative groups for extra scrutiny when they applied for tax-exempt status. "I can assure you and the American people that we will take a dispassionate view of this," he said. "This will not be about parties, this will not be about ideological persuasions. Anybody who has broken the law will be held accountable." The Memphis Daily News has the story.
The U.S. Senate passed the Marketplace Fairness Act yesterday by an easy 69-27 vote. But the bill faces an uphill battle in the House, the Memphis Business Journal reports. The measure would allow for the collection of state sales tax on most Internet purchases. Under current law, retailers have to collect taxes only in states where they have a physical presence. The bill also attempts to address concerns that the new requirement will burden small businesses by exempting retailers that sell less than $1 million worth of goods. Some online retailers say that exemption is too small. In a statement issued after the Senate vote, for example, eBay pledged to push the House to raise this exemption to $10 million in sales or 50 employees.