State & Local

3 Key Areas Where Tax Administrations Are Using AI

Natalie Olivo
Senior Tax Correspondent

Tax administrations across the globe are increasingly turning to artificial intelligence for everything from flagging suspicious returns to analyzing satellite imagery, allowing authorities to cast a wider net for revenue while potentially raising data bias and privacy risks. Here, Law360 breaks down three key areas where tax administrations are using AI, including the benefits and risks.

Insurers Weighing Economic Substance In Clean Energy Deals

Kat Lucero

As deals involving clean energy tax credits continue to proliferate, some tax insurers say they are increasingly underwriting the structural risks with an eye toward potential Internal Revenue Service scrutiny over the economic substance of the arrangements.

States' Penny Guidance Trickling In Without Sales Tax Impacts

Paul Williams
Tax Correspondent

State guidance on rounding cash transactions to the nearest nickel amid the phaseout of pennies has thus far avoided changes to sales tax calculations, which has been a welcome development for businesses that crave a uniform state approach to rounding.

AI-Generated Doc Ruling Guides Attys On Privilege Risks

A New York federal court's ruling, in U.S. v. Heppner, that documents created by a defendant using an artificial intelligence tool were not privileged, can serve as a guide to attorneys for retaining attorney-client or work-product privilege over client documents created with AI, say attorneys at Sher Tremonte.

The Law Firm Merger Diaries: Leadership Strategy After Day 1

For law firm leaders, ensuring a newly combined law firm lives up to its promise, both in its first days of operation and well after, includes tough decisions, clear and specific communication, and cheerleading, says Peter Michaud at Ballard Spahr.

Calif.'s Civility Push Shows Why Professionalism Is Vital

The California Bar’s campaign against discourteous behavior by attorneys, including a newly required annual civility oath, reflects a growing concern among states that professionalism in law needs shoring up — and recognizes that maintaining composure even when stressed is key to both succeeding professionally and maintaining faith in the legal system, says Lucy Wang at Hinshaw.

Now You Spell It, Now You Don't: SALT In Review

From Alaska's move toward a sales tax to a proposal that would do away with property tax in Georgia, RSM's David Brunori offers his thoughts on noteworthy state and local tax news.

US-Ukraine Reconstruction Fund Tax Exemptions Uncertain

Tax provisions in the bilateral agreement to establish the U.S.-Ukraine Reconstruction Investment Fund, which recently announced it is accepting applications, are so broad and imprecise as to leave uncertainty regarding whether and when tax exemptions will apply to investors' income, say attorneys at Avellum and Debevoise.

How State FCA Activity May Affect Civil Fraud Enforcement

A growing trend of state attorneys general enforcing their False Claims Act analogues independently of the U.S. Department of Justice carries potential repercussions for civil fraud enforcement and qui tam litigation considerations, say Li Yu at Bernstein Litowitz, Ellen London at London & Naor and Gwen Stamper at Vogel Slade.

Judges On AI: Practical Use Cases In Chambers

U.S. Magistrate Judge Allison Goddard in the Southern District of California discusses how she uses generative artificial intelligence tools in chambers to make work more efficient and effective — from editing jury instructions for clarity to summarizing key documents.

Malpractice Claim Assignability Continues To Divide Courts

Recent decisions from courts across the country demonstrate how different jurisdictions balance competing policy interests in determining whether legal malpractice claims can be assigned, providing a framework to identify when and how to challenge any attempted assignment, says Christopher Blazejewski at Sherin & Lodgen.

A Decidedly Un-Federalist Thing To Do: SALT In Review

From a congressional effort to override the District of Columbia to a Michigan proposal aimed at cellphone use by youths, RSM's David Brunori offers his thoughts on noteworthy state and local tax news.

NYC Bar Opinion Warns Attys On Use Of AI Recording Tools

Attorneys who use artificial intelligence tools to record, transcribe and summarize conversations with clients should heed the New York City Bar Association’s recent opinion addressing the legal and ethical risks posed by such tools, and follow several best practices to avoid violating the Rules of Professional Conduct, say attorneys at Smith Gambrell.

4 Quick Emotional Resets For Lawyers With Conflict Fatigue

Though the emotional wear and tear of legal work can trap attorneys in conflict fatigue — leaving them unable to shake off tense interactions or return to a calm baseline — simple therapeutic techniques for resetting the nervous system can help break the cycle, says Chantel Cohen at CWC Coaching & Therapy.

3 Key Ohio Financial Services Developments From 2025

Ohio's banking and financial services sector saw particularly notable developments in 2025, including a significant Ohio Supreme Court decision on creditor disclosure duties to guarantors in Huntington National Bank v. Schneider, and some major proposed changes to the state's Homebuyer Plus program, says Alex Durst at Durst Kerridge.

Rescheduling Cannabis Marks New Tax Era For Operators

As the attorney general takes steps to move cannabis from Schedule I to Schedule III of the Controlled Substances Act, operators and advisers should prepare by considering the significant changes this will bring from tax, state, industry and market perspectives, says Michael Harlow at CohnReznick.