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Deputy Commissioner (LB&I) Flax Discuss Revised Procedures and Priorities During COVID-19 Pandemic

Client Alert | 2 min read | 11.04.20

On October 5, Nikole Flax, Deputy Commissioner, LB&I, provided an update on LB&I’s revised procedures and priorities during the COVID-19 pandemic, including the CARES Act, electronic submissions and virtual interactions, the Large Corporate Compliance Program, LB&I Campaigns, and the CAP program. A video of Ms. Flax’s presentation at the 34th Annual Crowell & Moring Managing Audits and Appeals Seminar may be found here.

Ms. Flax discussed LB&I’s recent announcement that it is considering rescinding Revenue Procedure 94-69. Rev. Proc. 94-69 provides special procedures for taxpayers that are subject to the former Coordinated Examination Program to show additional tax due or make disclosures to avoid the imposition of accuracy-related penalties for negligence, disregard of rules or regulations, or substantial understatement of income tax under IRC section 6662(b)(1) and (b)(2). Ms. Flax explained that Rev. Proc. 94-69 was written for an old program that no longer exists, so “[a]t a minimum, it needs to be cleaned up, because the words don’t match right now.” Ms. Flax stated that there is not a set timeframe for a decision and that the IRS would need time to consider the comments submitted by interested parties. Critics have noted that Rev. Proc. 94-69 creates disparity among LB&I taxpayers and fails to support the broader tax administration effort to improve the accuracy and reliability of returns at the time of filing.

Ms. Flax also discussed the rollout of a Large Partnership Compliance Program slated for 2021. She explained that it would be similar to the Large Corporate Compliance Program, including selecting entities for audit using data analytics. This announcement comes on the heels the IRS’s recent efforts to gear up for new BBA efforts, including the launch of a new BBA centralized partnership audit webpage, available here. The webpage provides resources for taxpayers where they can find regulations and other guidance and instructions related to the Partnership Representative (PR), electing out of the centralized audit regime, Administrative Adjustment Requests (AARs) and what to expect during a BBA administrative proceeding.

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Client Alert | 5 min read | 12.12.25

Eleventh Circuit Hears Argument on False Claims Act Qui Tam Constitutionality

On the morning of December 12, 2025, the Eleventh Circuit heard argument in United States ex rel. Zafirov v. Florida Medical Associates, LLC, et al., No. 24-13581 (11th Cir. 2025). This case concerns the constitutionality of the False Claims Act (FCA) qui tam provisions and a groundbreaking September 2024 opinion in which the United States District Court for the Middle District of Florida held that the FCA’s qui tam provisions were unconstitutional under Article II. See United States ex rel. Zafirov v. Fla. Med. Assocs., LLC, 751 F. Supp. 3d 1293 (M.D. Fla. 2024). That decision, penned by District Judge Kathryn Kimball Mizelle, was the first success story for a legal theory that has been gaining steam ever since Justices Thomas, Barrett, and Kavanaugh indicated they would be willing to consider arguments about the constitutionality of the qui tam provisions in U.S. ex rel. Polansky v. Exec. Health Res., 599 U.S. 419 (2023). In her opinion, Judge Mizelle held (1) qui tam relators are officers of the U.S. who must be appointed under the Appointments Clause; and (2) historical practice treating qui tam and similar relators as less than “officers” for constitutional purposes was not enough to save the qui tam provisions from the fundamental Article II infirmity the court identified. That ruling was appealed and, after full briefing, including by the government and a bevy of amici, the litigants stepped up to the plate this morning for oral argument....

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