ArentFox Schiff Legal Podcasts

In this episode of Five Questions, Five Answers, Birgit Matthiesen, David R. Hamill, Antonio J. Rivera, and James Kim discuss how businesses can navigate today's evolving trade and tariff landscape. They explore the importance of avoiding reactive decisions, managing risk, and working with trusted advisors to address trade challenges with confidence.

Key Takeaways

• Trade compliance and tariff planning are increasingly important.

• Companies should avoid making rushed decisions amid change.

• Proactive advice can help prevent costly mistakes.

• Risk management should be central to trade strategy.

• Strong advisor relationships support better business outcomes.

• A methodical approach is critical in a complex trade environment.

In this episode of “Tax Stuff You Should Know,” hosts Bob Pluth and Gene Magidenko discuss a significant Fifth Circuit reversal of its earlier decision addressing the self-employment tax treatment of limited partners. They revisit the determination of limited partner status for purposes of determining self-employment taxes and why that distinction can have major tax consequences for partnerships and their owners.

The conversation also examines the ongoing debate between bright-line and functional tests for determining limited partner status, the challenges created by evolving partnership structures, and that future action from the US Treasury or US Congress is needed to bring greater clarity to this complex area of tax law.

Key Takeaways

- Limited partner status can significantly affect self-employment tax liability.

- Courts continue to grapple with how limited partner status should be determined.

- Bright-line and functional approaches offer competing frameworks for analysis.

- The Fifth Circuit’s decision may influence future partnership tax planning.

- The promulgation of regulations by Treasury or the clarification of the law by Congress is necessary to resolve longstanding questions in this area.

NOTE: On September 17, subsequent to the recording of this podcast, the US Court of Appeals for the Second Circuit held in Soroban Capital Partners LP v. Commissioner that, for self-employment tax purposes, a “limited partner” means one who has limited liability and does not run, manage, or control the partnership’s business, affirming the Tax Court’s functional approach.

How does tax policy go from an idea to enacted law? In this episode of “Tax Stuff You Should Know,” hosts Bob Pluth and Gene Magidenko sit down with former US Congressman and longtime tax policy leader Phil English to explore the process behind tax legislation and what it means for taxpayers, businesses, and policymakers.

The conversation examines how tax legislation is crafted, the effects of political polarization on policymaking, and why revenue scoring and institutional knowledge remain critical to effective tax reform.

Key Takeaways

The legislative journey of tax policy from concept to law.

The role of Congress, the White House, and the US Department of the Treasury in tax policymaking.

The impact of polarization and partisanship on tax legislation.

The importance of scoring and institutional memory in policymaking.

The future trends and challenges facing tax reform.

Tune in for an insider’s perspective on the forces shaping tax policy and the legislative dynamics that will influence the future of tax reform.

In this episode of Five Questions, Five Answers, Birgit Matthiesen, David R. Hamill, James Kim, and Antonio J. Rivera explore the complexities of tariffs, including stacking, United States-Mexico-Canada Agreement (USMCA) implications, and enterprise risk management amidst global trade tensions.

They share practical insights on how companies can navigate these challenges and adapt to an increasingly complex trade landscape.

Takeaways

How tariff stacking can dramatically increase import costs.

How the USMCA can create opportunities for tariff relief.

Why trade compliance should be a core enterprise risk management priority.

What recent customs enforcement trends mean for importers.

How product classification and tariff mapping can help reduce costs and risk.

What companies should expect from trade policy over the next two years.

In this episode of Five Questions, Five Answers, Birgit Matthiesen, David Hamill, James Kim, and Antonio J. Rivera break down the June 3, executive order, Strengthening Customs Enforcement — not a tariff, but potentially one of the year’s most consequential trade actions for US importers. 

They cover the order’s expanded disclosure demands, its 90-day overhaul of the US Customs and Border Protection’s (CBP) penalty-mitigation framework, and CBP’s hard-edged enforcement posture — and explain why a proactive review of import processes can turn the disruption into a competitive edge in 2026.

Takeaways

- It is not a tariff — but Strengthening Customs Enforcement may be the year’s most consequential trade action for US importers.

- Executive orders carry the full force of law, and CBP “stands ready to enforce,” now treating importing as “a privilege, not a right.”

- Expect to disclose far more — foreign tax and business identifiers, affiliated partners, and supply-chain and product detail (composition, grade, size).

- CBP’s mitigation framework gets a 90-day overhaul: a penalty floor of at least 50% for national-security violations, and no mitigation for repeat offenders.

- Brokers face more audits and maximum penalties for weak due diligence or non-cooperation.

- Reassess voluntary disclosures now — and review procurement, classification, and valuation to build resilience.

In the latest episode of Five Questions, Five Answers, host Birgit Matthiesen is joined by ArentFox Schiff colleagues Jackson David Toof and Mario A. Torrico for a conversation on the False Claims Act (FCA), its origins, and its continued importance as a tool to combat fraud against the federal government.

The discussion examines how US Customs and Border Protection (CBP) and the US Department of Justice (DOJ) are increasingly using the FCA to pursue customs fraud and trade violations, the significant business and reputational risks companies face, and the compliance missteps that commonly lead to enforcement actions. It also highlights the importance of proactive compliance strategies for managing FCA exposure.

Takeaways

- The FCA is a long-standing and powerful enforcement tool.

- FCA enforcement by CBP and the DOJ is increasing sharply.

- FCA violations pose serious financial and reputational risks for importers.

- Compliance exposure most often arises from classification, valuation, and country‑of‑origin errors.

- Proactive compliance programs offer both risk reduction and competitive advantage.

Following recent episodes that examined specific US tariff announcements, today’s discussion takes a wider view.

Host Birgit Matthiesen is joined by AFS Customs and Tariff Practice Leader Antonio J. Rivera to explore how tariff policy and enforcement are increasingly a fiscal and strategic risk across industries, elevating them into a core enterprise risk issue.

What the Episode Covers

- Defining enterprise risk in the tariff context, including fiscal exposure, legal risk, and competitive positioning.

- Developing mitigation strategies and a coordinated, company-wide approach spanning procurement, operations, and marketing.

- Planning for both the near term, such as current tariff mitigation options, and the long term, including supply chain and production strategy.

In the latest episode of “Tax Stuff You Should Know,” hosts Bob Pluth and Gene Magidenko unpack the complexities of federal self-employment tax through the lens of the Fifth Circuit’s decision in Sirius Solutions.

The discussion centers on how self-employment taxes apply to limited partners, how limited partners are defined for this purpose, and where the Fifth Circuit’s approach in Sirius Solutions diverges from the US Tax Court’s functional analysis. They also explore the historical evolution of the limited partner concept, the lack of clear Internal Revenue Service (IRS) guidance, and what these ongoing interpretive tensions could mean for taxpayers going forward.

Key Takeaways

- Self-employment taxes can materially increase an individual’s overall tax liability from investments into pass-through entities.

- Active management roles can jeopardize limited partner status.

- The lack of IRS guidance has resulted in considerable uncertainty and court challenges in this area.

- While most recent cases are not favorable for taxpayers seeking to limit their self-employment tax exposure, the Fifth Circuit’s decision in Sirius Solutions and pending cases in other federal appellate courts may change the landscape.

- Congressional action would provide much-needed clarity in this area of tax law, but the likelihood of such action is uncertain.

Kevin Matz – NYSSCPA Interview by ArentFox Schiff LLP

In the latest episode of Beyond the Lot, Kevin Timson speaks with Zach Kuzemka, CEO of NBB, about the current state of the dealership buy-sell market, with a focus on the need to “grow or go”, bring in outside capital, optimize rooftop mix and implement long-term succession plans and estate plans. Drawing on insights from the recent NADA convention in Las Vegas, the discussion explores the challenges and opportunities dealers face as they plan for growth in 2026 and beyond.