In The Headlines

With infrastructure that has failed to keep pace with their booming economies, Panama and Colombia are expected to be hotbeds of opportunity for project developers as they seek to take advantage of incentives from new free trade agreements struck with the U.S. Though trade officials are still in the process of making the recently-ratified trade deals' promises of lifted tariffs a reality, everything from ports and roads to electric grids and telecom systems in Panama and Colombia need to be either built or revamped if the two Latin American nations are to reap the benefits of much-broadened access to the U.S. market. "They need to update their infrastructure to be able to compete and receive the kind of investment that they are expecting, so there should be work there," said International and Cross-Border Transactions Partner Enrique Gomez-Pinzon.

READ: FTAs Spur New Infrastructure Interest in Panama, Colombia

Although reform legislation on carried interest has passed the House four times since 2007 only to die in the Senate, the turmoil over GOP presidential candidate Mitt Romney's tax situation gives the issue new momentum. The current debate differs from previous tussles over carried interest because Mr. Romney puts a human face on an esoteric topic. “There is now a real-life example,” said Taxation Partner Bradley Van Buren. “You'll see how this carries through to his tax return. This might resonate more with the public.” 

Read: Carried Interest Sparks Bipartisan Tax Debate

To stay competitive in a global marketplace, it is essential to incorporate virtual employees into talent management strategy. As an increasing number of jobs can be executed from home, managers must learn how to adapt their leadership style to cater to remote employees. In this book, Labor, Employment and Benefits Partner Phillip Schreiber outlines his belief that by having the appropriate controls in place before any issues arise, common areas of the virtual work environment that cause legal hiccups can be easily managed. According to Mr. Schreiber, the following topics are a great place to start: fairness in virtual privileges; documenting disciplinary measures; tracking hours and determining overtime; and monitoring computers.

MORE INFORMATION: The Virtual Manager: Cutting-Edge Solutions for Hiring, Managing, Motivating, and Engaging Mobile Employees

Much like the popular saying, "third time’s a charm," the third iteration of the IRS Offshore Voluntary Disclosure Program is likewise a good thing, according to Offshore Tax Compliance Chair Kevin Packman. The programs allow taxpayers with undisclosed income from offshore accounts to come forward, pay a set penalty and avoid criminal prosecution. "It’s frightening to meet taxpayers that didn’t know about the earlier programs or elected not to participate, but they exist," Mr. Packman said.  "More and more banks are giving in to IRS demands and getting caught up in Department of Justice investigations. Now the taxpayers involved can come forward.”

READ: IRS Triple Play on Offshore Voluntary Disclosures

E-commerce technology patent holders are aggressively targeting retailers with annual web sales that range from about $180 million to $20 million or less. In some cases, these web retailers tell Internet Retailer, they’ve been sent as many as 10 e-commerce technology patent infringement letters in the last 12 months. “Many of these companies seeking damages or a licensing agreement from smaller retailers are targeting them because oftentimes they don’t have any in-house counsel or their company lawyer is typically focused on other trends," said Intellectual Property Partner Dave Donoghue. "These small retailers usually don’t have an expertise in dealing with patent law.”

Read: Patent Battles Heat Up

Public Companies and Securities Partner David Cole sees smaller companies shying away from the costs of going public, thanks to the financial reforms included in the 2003 Sarbanes-Oxley Act. But if a company decides it can afford to go public, it must consider the current market. Since the market can be risky, going public requires optimal timing. "Dual Track is a nice hedge against market risk," said Mr. Cole. "You never know what is going to happen in the securities market."

READ: How (and Whether) to Take Your Company Public

The U.S. Securities and Exchange Commission has launched a formal investigation of Portland hedge fund Grifphon Asset Management, according to a lawyer who represents some of the fund's disgruntled investors. Grifphon first ran into trouble around 2009 when investors started trying to withdraw money from its various funds. "There are a lot of occasions that the SEC is asked to look into something," said Public Companies and Securities Partner Mark von Bergen. "If they see something of fairly large significance they will launch an informal investigation. If they think there is something that is pretty solid in terms of a violation of securities laws, they'll convert to a formal investigation, which is very serious."

READ: SEC Investigates Grifphon

Direct deposit offers convenience and security both for companies and employees, but for employees without bank accounts it's not an option. Prepaid debit cards have answered the call for those employees without bank accounts, and card providers have found avenues for growth. The option is popular in the restaurant, hospitality, construction and manufacturing industries. Employees can use the debit card anywhere Visa is accepted and draw cash from an ATM. "Prepaid debit cards, not only as a form of payment, but for general commercial use, are on the rise," said Banking Law Partner Charlie Stutts.

READ: Debit Cards Increase in Popularity as Form of Payroll

Republican presidential candidate Mitt Romney owns investments worth between $7 million and $32 million in offshore-based holdings, which are often used legitimately by private equity firms to attract foreign investors.  Romney has acknowledged that some of his investments are based in the Caymans, but he has not identified all of the specific accounts and the amounts based there. The Caymans have often been associated with individuals and corporations seeking to avoid paying U.S. taxes. However, according to Offshore Tax Compliance Chair Kevin Packman, it is legal for U.S. residents to own investment accounts that are set up there. "If you file the forms and report the income, you are 100 percent legal," said Mr. Packman.

READ: Romney Offshore Accounts Contain Up to $32 Million

Middle East Partner Joseph McDonough is settling into his role in Abu Dhabi, where he will help train new associates for Holland & Knight and guide the firm’s clients through the transforming legal and political systems of the region. Mr. McDonough, a former executive director of the Massachusetts Judges Conference, has traveled the world organizing instructional programs for foreign judges on the practical application of the rule of law.

READ THE PROFILE: Holland & Knight Attorney Heads to Abu Dhabi

A string of recent store closings in Friendship Heights, an upscale neighborhood straddling the border of Washington, D.C., and Montgomery County, Maryland, may present an opportunity to usher in a new lineup of distinctive merchants to its shopping district. But the stretch is carved up between nine property owners, with differing approaches to leasing their sites. There is no unified vision for the retail hub, which has become a neighborhood of dead zones and hot spots. "The area wasn't planned," said Retail Development and Leasing Partner Janis Schiff. "It sort of evolved on its own, with each land owner developing their own semi-self-contained project. It didn't necessarily fit with everything else."

READ: Retail Vacancies Beg a Question of Identity

In warning letters released Dec. 12, the Food and Drug Administration told several California surgical centers and one California marketing company that sell the Lap-Band to immediately pull advertisements for the device that fail to adequately warn consumers about the device's risks. According to Michael Gaba, federal policy leader of Holland & Knight's Healthcare & Life Sciences Team, the FDA's legal authority to bring any such actions against these centers and the marketing company is, at best, questionable. He said both "case law and the First Amendment suggest that the FDA’s position here is not tenable."

READ: FDA Rebukes Medical Centers, Marketing Company for Downplaying Gastric Band Risks

According to the article, key issues to watch for the medical devices industry in 2012 include changes to the Food and Drug Administration's 510(k) device clearance process, FDA regulation of software and mobile applications, and increased governmental enforcement actions against device companies. With regard to increased governmental enforcement, Michael Gaba, federal policy leader of Holland & Knight's Healthcare & Life Sciences Team, said that the devices industry should "expect continued and increased scrutiny on post-market surveillance issues, e.g., registry requirements and data collection—it's important because the FDA is under a lot of pressure from Congress to ensure that products approved remain safe and effective during their whole life cycle."

READ: Industry Tax, Changes at FDA, ACOs Among Key Issues for Industry in 2012

The Internal Revenue Service is giving U.S. citizens who have shielded assets offshore a third opportunity to come clean, pay a penalty and avoid criminal prosecution. After collecting $4.4 billion in two so-called voluntary disclosure programs for offshore accounts, the IRS announced plans to revive the program as part of its efforts to track down and prevent tax evasion around the world. Offshore Tax Compliance Chair Kevin Packman offers an observation on the U.S. government's dilemma. "Taxpayers with undeclared assets might be more willing to work with the IRS amid fewer options to protect themselves offshore," he said.

READ: IRS Gives Another Chance to U.S. Citizens With Undeclared Assets

The Internal Revenue Service announced that it is reopening its special program to allow taxpayers to disclose their offshore assets to the government for a third time, winning praise from practitioners who said this would encourage more people to come forward as investigations of foreign banks continue. According to the agency, the program will be open for an indefinite period until otherwise announced. Offshore Tax Compliance Chair Kevin Packman offers insight on the reopening. "I think it's a good thing that they're saying the program will be open indefinitely. You're always going to have people coming forward," he said.