Insights

Washington – July 1, 2025: A Crowell & Moring team represented Parsons Corporation in its $89 million acquisition of Chesapeake Technology International, a defense technology firm known for its advanced capabilities supporting all-domain operations and the Indo-Pacific Command.

Washington – January 10, 2022: Crowell & Moring represented the founders of Aerial Armor in the sale of the company to Dedrone Holdings Inc., a leader in smart airport security.

The One Big Beautiful Bill Act (the Act), signed on July 4, 2025, allows a deduction from an individual’s personal tax return on Form 1040 for “qualified overtime compensation” as defined in new Code § 225. The amount that can be deducted from the employee’s return is capped at $12,500 with the maximum then adjusted down if the employee’s AGI exceeds certain limits. This deduction is permitted in 2025.

On July 4, 2025, President Trump signed into law the One Big Beautiful Bill Act (the OBBBA) which amended a number of Internal Revenue Code provisions related to employee benefits and compensation. Although not an exhaustive list, below are the provisions we expect will have the greatest impact on compensation and benefits for mid- and larger sized employers.

In the wake of the Trump Administration’s recent scrutiny of various nonprofit organizations, including Harvard University, and threats to revoke organizations’ tax-exempt status, nonprofit organizations should take proactive steps in the event of an IRS audit that may target their federal tax-exempt status. Proactive planning and preparation measures are essential to being well-equipped to deal with potential IRS inquiries or an audit. The faster and more efficiently an IRS inquiry can be concluded, the better likelihood of avoiding a full audit or worse, revocation of status. An organization may be particularly vulnerable where there has been any level of political involvement that could be viewed as controversial, but also involvement with activities and efforts focused on renewable energy and diversity, equity & inclusion (“DEI”) may now cause additional scrutiny of an organization’s tax-exempt status. Common potential foot-faults that can bring an organization into the crosshairs (and which are oftentimes not fully considered in light of potential risk of revocation of tax-exempt status) include negotiating typical agreements, including commercial contracting and similar arrangements, where contractual provisions may call for representations and commitments from a non-profit around its DEI efforts or similar efforts. Extra care should be taken to review such instances and other potential activities that may increase the organization’s risk of IRS audit.

Crowell & Moring’s Tax Group invites you to join us for the 37th Annual Managing Tax Audits and Appeals. The seminar will provide an overview of everything you need to know about recent developments and hot topics in tax, from planning through litigation, including perspectives from the IRS.