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Tuesday, August 31, 2004

McIntyre Calls for "Higher, and Smarter, Taxes"

Tuesday, August 31, 2004

Robert McIntyre of Citizens for Tax Justice has published Civilization’s Price in The American Prospect. The conclusion: "The simple truth: We need higher, and smarter, taxes."

August 31, 2004 in News | Permalink | Comments (0) | TrackBack (0)

Think Tank Releases Report on Combined Reporting of State Corporate Income Taxes

Tuesday, August 31, 2004

The Institute on Taxation and Economic Policy has released Combined Reporting of State Corporate Income Taxes: A Primer. Here is the conclusion:

Tax reform strategies that broaden the tax base by eliminating unfair and expensive loopholes can help balance state budgets without requiring unpopular increases in tax rates—and requiring combined reporting is the single best option available to lawmakers seeking to stamp out accounting shenanigans by multi-state corporations.

August 31, 2004 in Think Tank Reports | Permalink | Comments (0) | TrackBack (0)

Graphing Your Political Philosophy

Tuesday, August 31, 2004

Law professor bloggers have taken to posting their scores on a political survey hosted by Chris Lightfoot that plots your position on left/right and idealistic/pragmatic axes. Some law prof notables (with figures on a -1 to +1 scale, where available):

Ann Althouse (Wisconsin) is left of center and slightly pragmatic (near Tony Blair).
Stephen Bainbridge (UCLA): is well right of center and slightly pragmatic, near Margaret Thatcher
Kevin Heller (Georgia) is well left of center and slightly pragmatic (-0.5715 (left/right) and +0.0086 (idealistic/pragmatic)). (He proudly announced: "I'm to the Left of Everyone!")
Mike Rappaport (San Diego) is right of center and pragmatic (+1.47 (left/right) and +3.49 (idealistic/pragmatic))
Tung Yin (Iowa) is slightly right of center and pragmatic (+0.0291 (left/right) and +0.1949 (idealistic/pragmatic))
You take the survey by answering 75 questions (Agree Strongly, Agree, No Opinion, Disagree, Disagree Strongly). Several of the questions are tax-related:
• It's more important to make the poor richer than to decrease the gap between rich and poor.
• Cutting taxes can't ever increase government revenue.
• Drivers shouldn't have to pay taxes to cover damage to the environment caused by motor transport, since that would price some people off the roads.
• The wealthy should pay a larger proportion of their income in tax than the poor.
• The government should raise revenue by taxing income rather than consumption.
For the record, I am almost exactly in the middle on the left/right axis and slightly idealistic (+0.0024 (left/right) and -0.0584 (idealistic/pragmatic)):
Graphic of Test Results

August 31, 2004 in News | Permalink | Comments (0) | TrackBack (0)

Opinions in Case of Montana Prof Allowed To Teach Con Law

Tuesday, August 31, 2004

A follow up on Friday's post about Rob Natelson, the Montana law prof who successfully challenged his dean's refusal to allow him to teach Con Law: Eugene Volokh has posted the hearing officer's opinion and university president's decision.

August 31, 2004 in News | Permalink | Comments (0) | TrackBack (0)

Alm, Blackwell & McKee on Sales Tax Audit Selection

Tuesday, August 31, 2004

James Alm (Georgia State, Dep't of Economics), Calvin Blackwell (College of Charleston, Dep't of Economics) & Michael McKee (University of Tenness, Dep't of Economics) have published Audit Selection and Firm Compliance with a Broad-based Sales Tax, 57 Nat'l Tax J. 209 (2004). Here is the abstract:

This paper examines the process by which firms are selected for a sales tax audit and the determinants of subsequent firm compliance behavior, focusing upon the Gross Receipts Tax in New Mexico. A two–stage selection model is used to estimate the State’s audit selection rule and, conditional upon audit selection, the firm’s compliance choice. The first–stage estimation results indicate that auditors select returns based upon a systematic, even if informal, audit rule. The second–stage results show that firms that exhibit greater variation in deductions, provide services, miss filing deadlines, and have an out–of–state mailing address have a lower compliance rate.

August 31, 2004 in Scholarship | Permalink | Comments (0) | TrackBack (0)

Monday, August 30, 2004

Colombo Quoted in USA Today

Monday, August 30, 2004

John Colombo (Illinois) was quoted in a USA Today article on the increasing pressure on non-profit hospitals to defend their tax-exempt status.

August 30, 2004 in Tax Profs | Permalink | Comments (0) | TrackBack (0)

BNA Advisory Board Meeting

Monday, August 30, 2004

This month's BNA Tax Management Advisory Board Meeting focused on Foreign Income and Transfer Pricing, with these three papers:

Partnership Allocations of Foreign Taxes: Temporary Regulations Address At Least Some of the Remaining Issues (Peter Glicklich, Davies Ward Phillips & Vineberg, New York)
Rev. Proc. 2004 – 40: Streamlining the APA Process (Steve Wrappe & Richard McAlonan, Deloitte & Touche, Washington, D.C.)
Disposition of Foreign Operations and Check-the-Box Planning after Dover (Philip McCarty, PricewaterhouseCoopers, Washington, D.C.)

August 30, 2004 in Conferences | Permalink | Comments (0) | TrackBack (0)

Form v. Substance: A Comparison of U.S. & Brazil Tax Law

Monday, August 30, 2004

Roberto Greco De Souza Ferreira has published Form Versus Substance: A Comparison of Brazil's Tax System to the Tax System of the United States of America, 35 U. Miami Inter-Am. L. Rev. 311 (2004). Here is part of the conclusion:

Although both Brazil and the United States have developed a mechanism against tax avoidance, or the substance-over-form doctrine, such development clearly was influenced by the characteristics of the legal tradition of each country. Therefore, there is a substantial difference concerning the circumstances in which the substance-over-form doctrines developed by both countries may come into play.

Due to the differences of both legal traditions, the circumstances in which the taxpayer has the right of arranging his affairs to pay less tax is much more accepted in the Brazilian legal system than in the U.S. legal system. In addition, while the U.S. tax authorities may successfully invoke the substance-over-form doctrine to disregard the form of a transaction structured by the taxpayer with the sole purpose of tax avoidance, the Brazilian tax authorities may only invoke this doctrine when the taxpayer evades taxes by means of fraudulent or simulated behavior.

August 30, 2004 in Scholarship | Permalink | Comments (0) | TrackBack (0)

Tax Faculty Hires at Florida

Monday, August 30, 2004

Most Tax Profs by now have received the spiffy brochure from the University of Florida's Graduate Tax Program announcing two permanent, and one visiting, tax hires:


Photo of Professor McDanielPhoto of Professor RingPhoto of Professor Hanna

Paul McDaniel, formerly Director of the NYU Graduate Tax and International Law Programs (1993-2002) and Professor of Law at Boston College (1970-87 and 2002-04), has been named James J. Freeland Eminent Scholar in Taxation
Diane Ring, formerly Assistant Professor of Law at Harvard (1994-2003), has joined the permanent tax faculty
Christopher Hanna, University Professor and Distinguished Teaching Professor of Law at SMU, will be a Visiting Professor of Law at Florida in Spring 2005

August 30, 2004 in Tax Profs | Permalink | Comments (0) | TrackBack (0)

Weekend Roundup

Sunday, August 29, 2004

Top 5 Tax Paper Downloads

Sunday, August 29, 2004

There are three new papers in this week's list of the Top 5 Tax Paper Downloads on SSRN, at #'s 1, 2, and 5:

1. Do States Tax Wireless Services Inefficiently? Evidence on the Price Elasticity of Demand, by J. Gregory Sidak (American Enterprise Institute) & Allan Ingraham (Criterion Auctions)

2. Thinking about Tax, by Edward J. McCaffery (USC) & Jonathan Baron (Pennsylvania-Wharton School)

3. Conceptualizing the Fat Tax: The Role of Food Taxes in Developed Economies, by Jeff Strnad (Stanford)

4. E-Commerce and International Tax Planning, by Carla Carnaghan (University of Waterloo, School of Accountancy) & Kenneth J. Klassen (University of Waterloo, School of Accountancy)

5. Does the "New Benefit Principle" (or the "Partnership Theory") of Income Taxation Mandate an Income Tax at Both the Individual and Corporate Levels?, by Joseph M. Dodge (Florida State)

August 29, 2004 in Top 5 Downloads | Permalink | Comments (0) | TrackBack (0)

Tax Court: Social Security Disability from Exposure to Agent Orange Not Excludable Under § 104

Sunday, August 29, 2004

The Tax Court on Thursday held in Reimels v. Commissioner, 123 T.C. No. 12 (8/27/04), that social security disability insurance benefits received on account of lung cancer, developed as a result of the taxpayer's exposure to Agent Orange while serving in the Vietnam war, were includible in income under § 86 and not excludable as payments received for sickness "resulting from active service in the armed forces" within the meaning of § 104(a)(4).

August 29, 2004 in News | Permalink | Comments (1) | TrackBack (0)

IRS Wins Long-Term Capital Management Case

Sunday, August 29, 2004

On Friday, the U.S. District Court for the Distirct of Connecticut issed a 198-page opinion in favor of the IRS in the infamous Long-Term Capital Management case. The court found that LTCM improperly took $106 million in tax deductions, resulting in perhaps the IRS's largest civil tax victory ($56 million in taxes and penalties). The court held that the nine cross-border lease-stripping transactions lacked economic substance and was sharply critical of LTCM's tax lawyers (William McKee and Mark Kuller, formerly of King & Spalding (Atlanta) and later founders of the McKee Kuller law firm). For the New York Times coverage, see here.

August 29, 2004 in News | Permalink | Comments (1) | TrackBack (0)

Saturday, August 28, 2004

Tax Prof Spotlight: Francine Lipman

Saturday, August 28, 2004

This week's Tax Prof Spotlight continues our series of profiles of folks starting their careers this fall as tenure-track tax professors at American law schools. We hope the profiles will help introduce our newest tax colleagues to the academic tax community.

Photo of Professor LipmanIn fall 2003, Chapman University School of Law launched an LL.M. in Taxation program and Francine J. Lipman joined the law faculty. The move was easy for Francine because immediately prior to her appointment she was on the faculty of Chapman University’s School of Business and Economics, where she has taught tax and graduate level accounting courses. Francine teaches tax courses in Chapman’s J.D., LL.M. and accounting programs.

In addition to teaching, Francine enjoys working with law and accounting students in Chapman’s Volunteer Income Tax Assistance program each spring. "Working with students assisting our low-income neighbors with their federal and state tax compliance has been a fabulous learning experience for Chapman students and greatly beneficial for clients and me. Students learn quickly how to interview clients, organize information, apply their substantive tax knowledge and explain complicated tax issues (e.g., EIC), often through a translator. The students not only learn how to apply tax law efficiently (especially on April 15th with a long line out the door), they learn about the importance of public service by interacting with people whose lives and circumstances are often very different from their own."

Francine received her LL.M. in Taxation from NYU, where she served as a Graduate Editor on the Tax Law Review, and her J.D. from U.C. Davis, where she served as Editor-in-Chief of the U.C. Davis Law Review and was elected to the Order of the Coif. Francine also has an M.B.A. and is a C.P.A. Prior to entering academia, Francine worked in the tax department of Arthur Young & Company in San Diego and with the law firms of O'Melveny & Myers LLP and Irell & Manella LLP in Newport Beach.

Francine's research interests include low-income taxpayer matters, the alternative minimum tax, environmental preservation, pass-thru entities and, most recently, disaster relief. Francine spent the summer of 2004 working on an article entitled Anatomy of a Disaster: Relief from the Rubble Under the Internal Revenue Code that will be looking for a home later this month.

Francine's most recent publications are:

Enabling Work for People with Disabilities: A Post-Integrationist Revision of Underutilized Tax Incentives, 53 Am. U. L. Rev. 393 (2003)
The Working Poor Are Paying for Government Benefits: Fixing the Hole in the Anti-Poverty Purse, 2003 Wis. L. Rev. 461
Her other scholarship has appeared in the Virginia Tax Review, Harvard Environmental Law Review, Harvard Journal on Legislation, Real Estate Law Journal, The Journal of Real Estate Taxation, The Practical Tax Lawyer, National Public Accountant, Taxes and Tax Notes.

In addition to writing, Francine enjoys reading and recommends David K. Shipler’s The Working Poor: Invisible in America and Stephen Hawking: A Life in Science by Michael White and John Gribbon. Francine spends her leisure time "materially participating" with her husband on their farm in northern Wisconsin and kayaking in and around Newport Bay.

Each Saturday, TaxProf Blog shines the spotlight on one of the 700+ tax professors in America's law schools. We hope to help bring the many individual stories of scholarly achievements, teaching innovations, public service, and career moves within the tax professorate to the attention of the broader tax community. Please email me suggestions for future Tax Prof Profiles, particularly for our series on new tax professors. For prior Tax Prof Profiles, see here.

August 28, 2004 in Tax Prof Spotlight | Permalink | Comments (0) | TrackBack (0)

Think Tank Says Sales Tax Debate Could Lead To Tax Reform

Saturday, August 28, 2004

Bruce Bartlett of the National Center for Policy Analysis writes that the national sales tax idea floated by President Bush is a bad idea but could lead to fundamental tax reform in a second Bush Administration.

August 28, 2004 in News | Permalink | Comments (0) | TrackBack (0)

IRS Whistleblower Remy Welling Responds

Saturday, August 28, 2004

Welling PhotoA follow up on the post two weeks ago about IRS whistleblower Remy Welling. The New York Times and Tax Notes carried her story as a 22-year IRS veteran who risked her job, as well as a jail sentence, in disclosing a closing agreement between the IRS and Micrel Inc. of San Jose, California. Ms Remy wrote to the Roth & Company web site, explaining her side. Among her provocative comments:

This particular case was not an isolated incident either. But I was not going to "break ranks" as they say. But when I was handed so much evidence, what was I to do? It was hard to say or do nothing. It was a dilemma for me. And believe me, I struggled with it for some time. And I still am. A lot of what I think is wrong in the IRS began with the Restructuring Act of 1998 and Sec 1203(b). The Ten Deadly Sins and the pressure it has put on the agents and the managers of the Internal Revenue Service.

August 28, 2004 in News | Permalink | Comments (6) | TrackBack (0)

Friday, August 27, 2004

University President Orders That Law Prof Be Allowed To Teach Con Law

Friday, August 27, 2004

A follow up on last month's post about Law Prof Rob Natelson of Montana, who alleged that his dean refused to allow him to teach con law solely because of his conservative views: the university president this week ordered that Natelson be allowed to teach con law this fall.

August 27, 2004 in Tax Profs | Permalink | Comments (0) | TrackBack (0)

Accounting Board Chides KPMG for Accepting Contingent Fees Based on Tax Savings

Friday, August 27, 2004

Today's Wall Street Journal reports that the U.S. Public Company Accounting Oversight Board has criticized KPMG for accepting contingent fees based on the amount of tax savings generated by KPMG. Although the public report said only that "significant audit and accounting issues were missed by the firms," KPMG came forward to disclose the Board's criticism in the confidential sections of the report. Deloitte & Touche, Ernst & Young, and PricewaterhouseCoopers all declined to specify what concerns, if any, the Board had raised about them in the confidential sections of the report. The WSJ notes the growing criticism of the law permitting the Board to disclose the Big Four's infractions only if they are not fixed within a year.

August 27, 2004 in News | Permalink | Comments (2) | TrackBack (0)

OECD Tax Statistics on CD-Rom

Friday, August 27, 2004

OECD has published OECD Tax Statistics on CD-ROM 2003:

• Vol. 1: Revenue Statistics
• Vol. 2: Taxing Wages

Here is OECD's description:
Comparative tax data are basic inputs to most structural economic descriptions and economic analyses and are increasingly used in international comparisons. The OECD Revenue Statistics database, available on CD-ROM, gives you access to a unique set of detailed and internationally comparable tax data in a common format for all OECD countries from 1965 onwards. It provides a conceptual framework to define which government receipts should be regarded as taxes and to classify different types of taxes. The database is in Beyond 20/20TM, user-friendly and efficient WindowsTM -based software that includes query modules and enables you to cary out data extractions, build graphs and tables, and perform your own analysis.

Taxing Wages provides unique statistical data on income tax paid by workers and social security contributions levied on employees and their employers in OECD countries. In addition, this annually updated database specifies family benefits paid as cash transfers. Amounts of taxes and benefits are detailed program by program, for eight household types which differ by income level and household composition. Results reported include the marginal and effective tax burden for one- and two-earner families, and total labor costs of employers. These data on tax burdens and cash benefits are widely used in academic research and the preparation and evaluation of social and economic policy-making.

For the underlying data set, see here.

August 27, 2004 in Book Club | Permalink | Comments (0) | TrackBack (0)

Interview with Noel Cunningham

Friday, August 27, 2004

Photo of Professor CunninghamThe July/August Business Entities journal has a great interview with Noel Cunningham, partnership tax guru and Director of NYU's graduate tax program. The interview spans the history of the program and contains many interesting current tidbits, including:

• NYU has 120 full-time students and 300 part-time students in the graduate tax program, and 20 foreign lawyers in the international tax program.
• The international tax program is the most selective of NYU's many graduate law programs.
• The NYU graduate tax program will celebrate its 60-year anniversary next year.
• There is a wonderful description of each of NYU's 13 full-time tax faculty, which Noel describes as the "the top tax faculty in the country."
• Noel outlines the many reasons NYU is the nation's pre-eminent tax program:
As the Number 1 program of its kind, the perpetual challenge is to be on top of our game, innovative, flexible and responsive to our students' needs as well as the needs of the marketplace. What do we have that no one else has? The pre-eminent tax faculty in the country; a first-rate J.D. program with particular expertise in corporate and tax-related subjects; a stellar coterie of business school offerings at Stern that augment the Law School's rich tax curriculum and operates as a resource for our students; a myriad of substantive and cutting-edge lectures, workshops, and panel discussions featuring leading academics and practitioners from across the country and the world; a 10,000+ national and international alumni base that is passionate about and proud of the Program's heritage; New York City and its extraordinary tax practitioners to be available for our adjunct faculty; and a 60-year history.

August 27, 2004 in Tax Profs | Permalink | Comments (0) | TrackBack (0)

SOI Releaes Study of Individual Tax Returns

Friday, August 27, 2004

The just-released Statistics of Income Bulletin (Spring 2004) includes Individual Income Tax Rates and Shares, 2001, by David Campbell (SOI) & Michael Parisi (SOI). Here is the abstract:

This report features information on individual income tax rates and shares for tax year 2001. There were 130.3 million individual tax returns, of which almost 94.8 million, or 72.8 percent, were classified as taxable returns. Adjusted gross income (AGI) on taxable returns fell 4 percent to $5,847 billion. Total income tax fell 10.4 percent.
For related tables of data, see here.

August 27, 2004 in Gov't Reports | Permalink | Comments (0) | TrackBack (0)

Lustig on Corporate Law Perspective on IRS Oversight Board

Friday, August 27, 2004

Eric Lustig (New England) has published IRS, Inc.--The IRS Oversight Board--Effective Reform or Just Politics? Some Early Thoughts from a Corporate Law Perspective, 42 Duq. L. Rev. 725 (2004). Here is part of the Introduction:

This article examines the new IRS Oversight Board as a governance device, particularly in light of corporate governance in the private sector. The article will first trace the history of the IRS and explore past organizational and governance problems. Focus will then shift to the reforms enacted in the 1998 IRS Restructuring and Reform Act, with particular attention paid to the structural changes and establishment of the IRS Oversight Board. The article will then examine the process of seating the initial board as well as its foray into the 2002 IRS budget battle and the search for the new IRS Commissioner. The article will review the IRS Oversight Board from a corporate perspective by examining the role of directors in governing private corporations. The analysis tests the corporate analogy and considers recent criticisms of the corporate board model of governance in light of the current corporate scandals.

This article will conclude that the IRS Oversight Board as a governance mechanism does not approach the reform suggested by the political rhetoric and does not significantly improve governance shortcomings. This article argues that the corporate board analogy is misplaced. The IRS is not a private corporation. Nor is it a government corporation. Moreover, the characteristics which make a private corporation's board of directors effective are not present. Specifically missing is the plenary power of a corporate board of directors.
This article ultimately concludes that to the extent that the creation of the IRS Oversight Board rests on a corporate analogy, its reform power ends up as ineffective and a failure of tax policy.

August 27, 2004 in Scholarship | Permalink | Comments (0) | TrackBack (0)

Thursday, August 26, 2004

SOI Releases Study of Federal Empowerment Zone Employment Credit

Thursday, August 26, 2004

The just-released Statistics of Income Bulletin (Spring 2004) includes Use of the Federal Empowerment Zone Employment Credit for Tax Year 1997: Who Claims What?, by Andrew Bershadker (Office of Tax Analysis) & Edith Brashares (Horst Frisch, Inc.). Here is the abstract:

For Tax Year 1997, there were 1,168 individual income tax returns that showed EZE credits of $10.9 million against regular tax. In addition, 278 taxable corporations claimed $8.6 million in EZE credit.
For related tables of data, see here.

August 26, 2004 in Gov't Reports | Permalink | Comments (0) | TrackBack (0)

Murphy on Political Activity of Churches

Thursday, August 26, 2004

Ann Murphy (Gonzaga) has published Campaign Signs and the Collection Plate--Never the Twain Shall Meet?, 1 Pitt. Tax. Rev. 35 (2003). Here is part of the Introduction:

Churches, houses of worship, and other tax-exempt entities must refrain from participating in political activity and endorsing or opposing political candidates if they wish to maintain their tax-exempt status. If a tax-exempt organization violates this proscription, the penalty is the revocation of the entity's tax-exempt status. Representative Jones' resolutions lift this ban for churches and other houses of worship, but not for any other tax-exempt entities. This article finds it inadvisable to lift the current ban both because churches and other houses of worship should not become campaign outlets for politicians, and because "political activity" would be impossible to monitor, potentially allowing churches to easily skirt campaign finance laws....

August 26, 2004 in Scholarship | Permalink | Comments (0) | TrackBack (0)

WSJ/Deloitte Analysis of Bush/Kerry Tax Plans

Thursday, August 26, 2004

Tom Herman has an interesting report in today's Wall Street Journal of a Deloitte & Touche comparison of how 5 hypothetical households would fare under the Bush and Kerry tax plans:

Taxpayer.....Income.....Bush Law.....Kerry Plan.....Difference
Married.....$190,000.......$30,500.......$30,500..............0
Single.......$275,000.......$59,800.......$62,300.......$2,500
Married.....$500,000.....$111,350.....$118,450......$7,100
Married.....$750,000.....$167,250.....$190,450....$23,200
Married..$1,000,000.....$215,250.....$250,100....$34,850

August 26, 2004 in News | Permalink | Comments (0) | TrackBack (0)

New Book: OECD's Taxing Wages 2002-2003

Thursday, August 26, 2004

Book CoverOECD has published Taxing Wages 2002-2003. Here is OECD's description of the book:

Taxing Wages provides unique information on income tax paid by workers and social security contributions levied on employees and their employers in OECD countries. In addition, this annual publication specifies family benefits paid as cash transfers. Amounts of taxes and benefits are detailed program by program, for eight household types which differ by income level and household composition. Results reported include the marginal and effective tax burden for one- and two-earner families, and total labor costs of employers. These data on tax burdens and cash benefits are widely used in academic research and the preparation and evaluation of social and economic policy-making. This year issue includes a Special feature entitled "Thresholds for paying income tax and social security contributions."
For the underlying data set, see here.

August 26, 2004 in Book Club | Permalink | Comments (0) | TrackBack (0)

NY Times: KPMG Discussed Selling OPIS Tax Shelter Variant

Thursday, August 26, 2004

Today's New York Times contends that KPMG discussed selling a new shelter highly similar to the banned OPIS tax shelter. The paper also reports that "KPMG's efforts to create and sell dozens of tax shelters appear much more rigorous and extensive than detailed in documents made public last fall by the Senate Permanent Subcommittee on Investigations."

August 26, 2004 in News | Permalink | Comments (0) | TrackBack (0)

More on Tax Deduction for M.B.A. Expenses

Thursday, August 26, 2004

Following up on posts last Thursday and Monday on the Tax Court's recent denial of claimed education expense deductions for M.B.A. expenses: Leonard Goodman (Rutgers) & Jay Soled (Rutgers) passed on their excellent article, Tax Consequences Associated with Obtaining an MBA Degree, 79 Taxes 43 (July 2001), which suggests ways in which "proper tax planning can lighten this economic burden."

August 26, 2004 in News | Permalink | Comments (0) | TrackBack (0)

New 3rd Edition of Third Party and Self-Created Trusts

Thursday, August 26, 2004

Photo of book coverThe ABA has published the 3rd edition of Third Party and Self-Created Trusts, by Clifton Kruse. Here is the ABA's description:

This practical handbook provides expert advice on drafting the most effective trusts for elderly and disabled clients. Written by Clifton B. Kruse, Jr., a well-known expert in the fields of estate planning and elder law, this new edition of Third-Party and Self-Created Trusts explains the effect that governmental legislation has had on trust law and guides you through the maze of federal laws that affect planning for the elderly and disabled.

Focusing on the effect of the Omnibus Budget Reconciliation Act of 1993 on trusts for older and disabled Americans, this guide includes the full text of this act and outlines how it affects the drafting of trusts, illustrated by a comprehensive chart showing OBRA 1993's effect on nine commonly used trusts.

Third-Party and Self-Created Trusts includes sample forms and language reflecting the most current rulings, dozens of real-world examples, and detailed endnotes.

For the table of contents, see here.

August 26, 2004 in Book Club | Permalink | Comments (0) | TrackBack (0)

Wednesday, August 25, 2004

Samansky v. Tobin on Political Activities of Churches

Wednesday, August 25, 2004

Allan Samansky and Donald Tobin square off in a Point-Counterpoint debate on the Election Law web site at Ohio State over the permissible political activities of churches.

Point, Counterpoint photo

In one corner, Allan argues that "a strict and absolute prohibition of campaign activity by religious institutions that supports or opposes candidates is neither desirable nor possible."

In the other corner, Donald argues that "[t]he intervention in political campaigns by religious institutions and other 501(c)(3) organizations, not only violates the law, but poses great risks to both the charity and the election system....If religious intuitions are allowed to use tax-deductible contributions to influence elections, I can see two new religions on the horizon – The Church of Bush and The Church of Kerry."

And the winner? You decide.

August 25, 2004 in Tax Profs | Permalink | Comments (0) | TrackBack (0)

ABA Teleconference and Webcast Today on Hedge Fund Taxation

Wednesday, August 25, 2004

The ABA Tax Section's "Last Wednesday of the Month" Teleconference and Webcast will be held today from 1:00 - 2:30 pm EST on Hedge Fund Taxation.

August 25, 2004 in ABA Tax Section, Conferences | Permalink | Comments (0) | TrackBack (0)

Back to School Special: The Tax Canon

Wednesday, August 25, 2004

With the start of another year, I want to point out to new tax faculty and tax students the wonderful "Tax Canon" developed by Vic Fleischer (UCLA) and maintained as one of the permanent left column resources on TaxProf Blog. The Tax Canon is a list of 10 articles (and a couple of books) comprising "essential reading for those interested in developing a cultural literacy about tax policy." As a bonus, Vic includes a list of 7 articles comprising the "established" Tax Canon:

These articles are impressive, of course, and each deserves the attention and recognition it receives. As a descriptive matter, those articles would land on almost anyone’s top 10 list of highly influential articles, and each has the citations to prove it. As a foundation for future study of the tax system, however, a reader who stuck to the established canon would miss out on newer trends in tax scholarship, especially the influence of interdisciplinary work (law & economics, critical legal studies, and modern theories of moral philosophy and distributive justice). My list is an attempt to fill out and update the list without expanding it beyond a useful size.
Vic's colleague Stephen Bainbridge maintains a similar "Corporate Law Canon" on his blog.

August 25, 2004 in Scholarship | Permalink | Comments (0) | TrackBack (0)

Taxpayer Files Brief in Banaitis

Wednesday, August 25, 2004

Jack Bogdanski (Lewis & Clark) passed along the taxpayer's brief in Commissioner v. Banaitis (03-907), one of the two consolidated contingent fees cases pending in the U.S. Supreme Court. Tax Profs have filed amicis briefs in Benaitis and the companion case of Commissioner v. Banaitis (03-907):

Brant Hellwig (South Carolina) & Gregg Polsky (Minnesota) filed an amicus brief on June 11
Stephen Cohen (Georgetown) filed an amicus brief on August 16
For other amicus briefs, see here and here. For the joint appendix, see here. For other briefs and documents, see here.

August 25, 2004 in News | Permalink | Comments (0) | TrackBack (0)

Kaplan on Auditors and Their Clients

Wednesday, August 25, 2004

Richard Kaplan (Illinois) has posted The Mother of All Conflicts: Auditors and Their Clients on SSRN. Here is the abstract:

This Article examines three major problems that contributed to the wave of corporate audit failures that ravaged investors in recent years: (1) auditing firms are too cozy with corporate management to provide a truly independent check on management's abuse of corporate financial reports, (2) auditors have further compromised their independence by offering nonaudit services to audit clients, and (3) audits have failed to uncover colossal frauds and major financial misstatements. After explaining the nature of each of these three problems, the Article considers and evaluates the responses of the Sarbanes-Oxley Act of 2002 - namely, mandatory rotation of partners within the audit firm, restrictions on client hiring of audit firm personnel, prohibition of certain nonaudit services, allowance of other nonaudit services (including tax advice) with prior approval, regulation of accountants by a new oversight board, and formulation of audit standards by an organization not dominated by accountants. The Article concludes that the Sarbanes-Oxley Act represents a largely missed opportunity for serious reform of the auditor-client relationship, adopting half-hearted measures that are unlikely to make a significant difference in the vital function of providing credibility to corporate financial reporting.

August 25, 2004 in Scholarship | Permalink | Comments (0) | TrackBack (0)

Tuesday, August 24, 2004

Property Taxes on the Rise

Tuesday, August 24, 2004

Today's Wall Street Journal reports that property and sales taxes have increased as a share of state and local tax revenues, while income taxes have fallen:

Tax..........1Q 2001..........1Q 2004
Income.......22.4%.............19.4%
Property......25.5%.............28.2%
Sales..........31.4%.............32.2%
The Journal reports that property taxes overall have increased 10% during this period, reversing the trend during the 1990s of declining property taxes and sparking ballot initiatives this November in Maine, New Jersey, Ohio, Texas, and other states seeking to cap the growth of property taxes.

August 24, 2004 in News | Permalink | Comments (0) | TrackBack (0)

Kennedy Visits at Catholic

Tuesday, August 24, 2004

Photo of Professor KennedyDarlene Kennedy, Chief of Staff and Counsel to the Assistant Attorney General, Tax Division, U.S. Department of Justice, is visiting this fall at Catholic where she will be teaching Corporate Tax and Trusts & Estates.

August 24, 2004 in News | Permalink | Comments (0) | TrackBack (0)

Barysch on Tax Competition in the EU

Tuesday, August 24, 2004

Katinka Barysch (Chief Economist, Center for European Reform) has posted Is Tax Competition Bad? on the CER web site. Here is the opening:

EU enlargement was meant to be a cause for celebration. But one seemingly esoteric issue is threatening to spoil the fun: taxation. West Europeans fear that low tax rates in the new member-states will lure companies eastward, taking jobs and investment with them. To add insult to injury, the richer EU countries complain that ­through their contributions to the EU budget ­ they will end up paying for tax cuts in the new members.

Gerhard Schröder, the German Chancellor, thundered in April that it was unacceptable "that Germany, as the EU's biggest net payer, finances unfair tax competition against itself". Germany has openly threatened to cut EU regional aid unless the new members rethink their tax policies. Germany and France have dusted off old plans to introduce a minimum rate of corporation tax in the EU. Are the two governments right to push for tax harmonisation in the enlarged EU? No, because their claims of 'tax dumping' rest on three highly questionable assumptions.

August 24, 2004 in Think Tank Reports | Permalink | Comments (0) | TrackBack (0)

McCaffery on Fair Timing of Tax

Tuesday, August 24, 2004

Edward McCaffery (USC) has posted The Fair Timing of Tax on SSRN. Here is the abstract:

The traditional understanding of broad-based tax systems contrasts an income tax with all forms of a consumption tax. The income tax, alone, includes the yield to capital in its base; consumption taxes do not. Simple financial analysis demonstrates the equivalence of the two most common classes of consumption taxation - prepaid, or wage-based, and postpaid, or sales taxes - under certain assumptions, most importantly including constant tax and interest rates between the periods in the model. Advocates of redistributive taxes insist on both progressive rates and an income base, in large part to tax the yield to capital; opponents clamor for flat-rate consumption taxes, often invoking Mill's celebrated argument against the income tax's double taxation of savings to support their case. Once progressivity is presumed, however - as its enduring popular appeal suggests it ought be - the traditional understanding is flawed. Asking a different timing question, when, in a taxpayer's flow of funds, ought progressive taxes be imposed?, casts tax systems in a new light. The present tax system emerges as an onerous wage-based one. A progressive cash-flow consumption tax, in contrast, emerges as the best - most consistent and principled - tax on the yield to capital, under just the conditions in which it is fair and appropriate to tax such yield. This gives a further reason to support a progressive cash-flow consumption tax, sounding in reasons familiar to income tax supporters. A consistent progressive cash-flow consumption tax will lower the burden of taxation when capital transactions (borrowing, saving, and investing) are used to smooth labor earnings within or between lifetimes (or taxpayers), and will increase the burden of taxation when capital transactions are used to enhance labor earnings within or between lifetimes (or taxpayers). Critical reflection based on a near century of experience reveals such a tax to give form to attractive normative ideals. The new understanding helps to show that the traditional and most common arguments for consumption taxation are not compelling. The best, most appealing case for a consumption tax does not rest on simple horizontal equity models, nor on claims about the economic, consequentialist importance of savings on an individual or an aggregate social level. Rather it is claims of fairness, in a social contractarian sense in the manner of John Rawls and other liberal theorists, that argue for a properly designed consumption tax - in part precisely because of the way such a tax sometimes but not all the times burdens capital and its yield, and in greater part because such a tax points the way towards greater, more meaningful progressivity in tax. The new understanding of tax yields important insights into pressingly practical matters of tax policy and design, and opens up an important window to critique contemporary trends in tax reform. The battle in tax policy should not be over income versus consumption taxation - as it has been for centuries - but rather over what kind of consumption tax to choose. Failure to address this question head-on has led tax policy to move, seemingly inexorably, towards the wrong choice, with the fate of progressive, redistributive taxation hanging in the balance.

August 24, 2004 in Scholarship | Permalink | Comments (0) | TrackBack (0)

Bittker's Perspective on Black Reparations

Tuesday, August 24, 2004

Photo of Book CoverFollowing up on Illinois Republican Senate candidate Alan Keyes' proposal to exempt African-Americans from the income tax (see TaxProf Blog here and here): Mary Heen (Richmond) notes that Boris Bittker, one the preeminent Tax Profs of all time, wrote a classic book on the subject, The Case for Black Reparations (1973), which was reissued in 2003 by Beacon Press with a preface to the revised ed. by Bittker and a foreward by Drew Days. Among the many favorable reviews of the book:

• New York Review of Books: "Professor Bittker's purpose here is to show that the concept of black reparations 'is far from bizarre or unprecedented,' and in this he has succeeded with unusual force."
• Toni Morrison (who was an editor when the book was originally published in 1973): “Publishing Boris Bittker’s The Case for Black Reparations in 1973 seemed to me an important contribution to the fledgling reparations debate. Now with its focus on the legal hurdles of such compensation, his work is more than significant—it is vital.”

August 24, 2004 in News | Permalink | Comments (3) | TrackBack (0)

SOI Releases Partnership Tax Data

Tuesday, August 24, 2004

The SOI has released 12 tables with data from 2002 partnership tax returns.

August 24, 2004 in Gov't Reports | Permalink | Comments (0) | TrackBack (0)

Monday, August 23, 2004

IRS Names Rocen Acting Deputy Chief Counsel

Monday, August 23, 2004

The IRS announced today (IR-2004-111) that it has named Donald Rocen Acting Deputy Chief Counsel for Operations. He will direct 1,000 attorneys serving the IRS operating divisions and other specialized areas and oversee the Office of Chief Counsel’s nationwide tax litigation, non-tax legal services, and managerial support programs. Rocen joined the Office of Chief Counsel in May as Special Counsel to the Chief Counsel after serving in the Washington, D.C., office of PricewaterhouseCoopers, LLP, since 1989. He received his tax LL.M. from Georgetown and his J.D. from Northwestern.

August 23, 2004 in News | Permalink | Comments (0) | TrackBack (0)

IRS Attorneys Disbarred for Misconduct in Tax Shelter Case

Monday, August 23, 2004

David Cay Johnston has a fascinating article in the New York Times about 2 former IRS attorneys who have been disbarred by their respective state jurisdictions (Oregon and Arkansas) following the 9th Circuit's ruling in Dixon v. Commissioner, 316 F3d 1041 (9th Cir. 2003), that they defrauded the Tax Court by making a corrupt deal with a few tax shelter investors in exchange for their testimony, which was to be used against other tax shelter investors. The case sparked a spirited discussion on the TaxProf E-mail Discussion Group, and Leandra Lederman (George Mason) has given me permission to share her thoughts with the broader tax community:

The case involved more than just bargained-for testimony; it involved what the Ninth Circuit found amounted to a fraud on the Tax Court by the two IRS attorneys discussed in the Johnston article, McWade and Sims. The Ninth Circuit case is Dixon v. Commissioner, which reversed T.C. Memo. 1999-101. (These are two decisions of many in a group of consolidated cases.) The cases relate to a tax shelter promoted by Henry Kersting in the 1970s and 80s. About 1,300 taxpayers who made Kersting investments and received notices of deficiency agreed to a test case approach whereby they entered "piggyback" agreements, agreeing to be bound by the decision of the court with respect to a representative group of eight taxpayers.

According to the 9th Circuit, the two attorneys, one of which was trying the case and the other of which was a supervising attorney, entered into secret settlement agreements with two of the test case petitioners. The settlement required the two taxpayers to remain test case petitioners until after trial. The IRS attorney litigating the case also apparently convinced one of those taxpayers to proceed pro se and agreed to reduce the deficiency of the other taxpayer (Thompson) by the amount of his attorneys' fees (over $60,000). The taxpayers' testimony apparently mattered in part because one of the issues was whether the taxpayers had a profit motive in making the Kersting investments.

Based on facts found by the Tax Court, the Ninth Circuit found that the IRS attorney litigating the case, McWade, misled the Tax Court by failing to disclose the settlement at various points, e.g., when moving to set aside the piggyback agreement of one of the 2 taxpayers, in order for that taxpayer to be a test case petitioner, and when, at trial, the taxpayer started to testify about the settlement and the IRS attorney shifted the line of questioning. The Tax Court also found that a Counsel Settlement Memorandum the IRS attorneys filed with respect to a third taxpayer contained two false statements. The Tax Court found for the IRS in the test cases and entered judgment against the taxpayers under the piggyback agreements. The IRS attorneys then moved to set aside the judgments relating to the two taxpayers with whom they had settled, so it could honor the settlements. IRS officials who were asked to approve the motions to set aside the judgment first learned of the settlements at that point, informed the Tax Court of the settlements, and asked for an evidentiary hearing to determine whether the settlements had affected the Tax Court trial or opinion.

With respect to the IRS attorneys' conduct and IRS sanctions, the Tax Court stated:

Mr. Sanchez [Regional Counsel for the Western Region of the IRS] sent Notices of Proposed Disciplinary Action to Messrs. Sims and McWade. The notices asserted that Messrs. Sims and McWade had violated: (1) Department of the Treasury Minimum Standards of Conduct, section 0.735-30(a)(2) (an employee shall avoid any action which might result in or create the appearance of giving preferential treatment to any person); (2) Department of the Treasury Minimum Standards of Conduct, section 0.735-30(a)(6) (an employee shall avoid any action that might adversely affect the confidence of the public in the integrity of the Government); and (3) Internal Revenue Service Rule of Conduct 214.5 (an employee will not intentionally make false or misleading verbal or written statements in matters of official interest). The notices proposed to suspend both Messrs. Sims and McWade for 14 calendar days without pay.
Mr. Sanchez' Notices of Proposed Disciplinary Action to Messrs. Sims and McWade listed the following reasons for the proposed disciplinary actions: (1) Negotiating an unauthorized settlement agreement with the Thompsons; (2) basing the Thompson settlement on unaudited and insufficiently documented losses from an unrelated shelter; (3) allowing the Thompsons a settlement that provided them more favorable treatment than other taxpayers; (4) compensating the Thompsons for their attorney's fees; and (5) not informing the Tax Court of the Thompson settlement arrangements.
Dixon v. Commissioner, T.C. Memo. 1999-101. With respect to sanctions, the 9th Cir. stated:
McWade and Sims were both suspended for two weeks without pay and transferred out of the Honolulu division. Sims accepted this censure and was transferred to the San Francisco Regional Counsel Office, where he was assigned nonsupervisory duties. McWade retired from the IRS, choosing not to accept the terms of the proposed disciplinary action but keeping the $1,000 bonus earlier paid him for his performance in the original Tax Court proceedings. We note that counsel for the Hongsermeier test case petitioners recently filed a grievance against McWade and Sims with the attorneys' respective Bars.
Dixon v. Commissioner, 316 F.3d 1041, 1047 n.10 (9th Cir. 2003).

In terms of the outcome of the case, the Tax Court denied the IRS' request for an evidentiary hearing and enforced the terms of the secret settlements. The other test case petitioners appealed, arguing that the trial of the test cases had been tainted by the secret settlement agreements. The 9th Circuit remanded and ordered the Tax Court to conduct a hearing. The Tax Court found that the IRS attorneys' misconduct did not constitute a structural defect in the trial and that it constituted harmless error rather than reversible error. The Tax Court also held that the taxpayers' claims of fraud on the court did not warrant renunciation of its deficiency determinations. It therefore reinstated most of its original decision. On appeal, the Ninth Circuit reversed, finding that the two IRS attorneys perpetrated a fraud on the taxpayers and the Tax Court. It chose to order the Tax Court to enter judgment in favor of the taxpayers on terms equivalent to those of the settlement agreement with Thompson.

August 23, 2004 in News | Permalink | Comments (0) | TrackBack (1)

Back to School Special: Can You Pass Mundstock's Quiz on U.S. Taxation of Multinational Businesses?

Monday, August 23, 2004

Photo of Professor Munstock Can you pass the 13-part quiz on U.S. tax treatment of multinational businesses from George Mundstock (Miami)?


Part 1Part 2Part 3Part 4Part 5Part 6Part 7
Part 8Part 9Part 10Part 11Part 12Part 13

August 23, 2004 in Tax Profs | Permalink | Comments (0) | TrackBack (0)

Dynarski on Education Savings Inventives

Monday, August 23, 2004

Susan Dynarski (Harvard University, Kennedy School) has published Who Benefits from the Education Saving Incentives? Income, Educational Expectations and the Value of the 529 and Coverdell, 57 Nat'l Tax J. 359 (2004). Here is the abstract:

This paper examines the incentives created by the 529 and Coverdell tax–advantaged savings accounts. I find that the advantages of the 529 and Coverdell rise sharply with income for three reasons. First, those with the highest marginal tax rates benefit the most from sheltering income, gaining most in both absolute and relative terms. Second, the tax penalties that are assessed on families whose children do not use their Coverdell accounts to pay for college hit some families harder than others. Strikingly, those in the top two tax brackets benefit more from non–educational use of a Coverdell than those in the bottom bracket gain from its educational use. Finally, the college financial aid system reduces aid for those families that have any financial assets, including an ESA or 529. Since the highest–income families are unaffected by this aid tax, this further intensifies the positive correlation between income and the advantages of the tax–advantaged college savings accounts.

August 23, 2004 in Scholarship | Permalink | Comments (0) | TrackBack (0)

Washington Post on Tax Court's Denial of M.B.A. Expense Deductions

Monday, August 23, 2004

Following up on Thursday's post about the Tax Court's recent denial of claimed education expense deductions for M.B.A. expenses: Sunday's Washington Post included A Little Learning Is a Dangerous Thing to Deduct, an article critical of the Tax Court's approach in these cases. (Thanks to reader Steven Sholk for the tip.)

August 23, 2004 in News | Permalink | Comments (1) | TrackBack (0)

Weekend Roundup

Sunday, August 22, 2004

Top 5 Tax Paper Downloads

Sunday, August 22, 2004

There is a new entry in this week's list of the Top 5 Tax Paper Downloads on SSRN at #5:

1. The Estate Planning Implications of Goodridge v. Department of Public Health for Massachusetts Same-Sex Couples, by Jeremy Marr (Boston College)

2. E-Commerce and International Tax Planning, by Carla Carnaghan (University of Waterloo, School of Accountancy) & Kenneth J. Klassen (University of Waterloo, School of Accountancy)

3. Effective Tax Rate Changes and Earnings Stripping Following Corporate Inversion, by Jim Seida (Notre Dame, Dep't of Accounting) & William Wempe (TCU, Dep't of Accounting)

4. Quantifying the Costs of Intertemporal Taxable Income Shifting: Theory and Evidence from the Property-Casualty Insurance Industry, by Gerald Salamon (Indiana-Bloomington, Dep't of Accounting), Jim Seida (Notre Dame, Dep't of Accounting), & David Randolph (Dayton, Dep't of Accounting)

5. Conceptualizing the Fat Tax: The Role of Food Taxes in Developed Economies, by Jeff Strnad (Stanford)

August 22, 2004 in Top 5 Downloads | Permalink | Comments (0) | TrackBack (0)

Book Review: Taxation in a Global Economy

Sunday, August 22, 2004

Photo Book CoverTimothy J. Goodspeed (CUNY, Dep't of Economics) has published a book review of Taxation in a Global Economy (Cambridge University Press, 2001), by Andreas Haufler, in 57 Nat'l Tax J. 349 (2004). Here is the abtsract of the review:

This book discusses tax competition between countries, a topic of considerable importance in today’s world, and provides a nice overview of the large theoretical literature. The book is theoretically oriented as Andreas Haufler brings together a wide body of tax competition models, draws on his own theoretical research in this area, and offers some new insights. Although he aims the book at an academic audience, the author does a good job of making the theory accessible to economists who do not specialize in theory, and is also comprehensive in his coverage of the theoretical literature.

August 22, 2004 in Book Club | Permalink | Comments (0) | TrackBack (0)

Poterba on Valuing Assets in Retirement Savings Accounts

Sunday, August 22, 2004

James Poterba (MIT, Dep't of Economics) has published Valuing Assets in Retirement Saving Accounts, 57 Nat'l Tax J. 489 (2004). Here is the abstract:

This paper compares the value of one dollar of an asset held in a tax–deferred account with one dollar of a similar asset held in a taxable account from the standpoint of providing future retirement income. Taxes that are due when assets are withdrawn from some retirement saving plans can make a dollar held inside a retirement account less valuable than a dollar held in a similar asset outside these accounts, particularly for those who are considering withdrawing assets from the tax–deferred accounts in the near future. This effect is more than offset, however, particularly for younger workers, by the benefits of many years of asset growth at pre–tax rates of return. This paper calibrates the value of the tax burden, and the benefit of compound growth, for assets held in retirement accounts, and describes the differences in relative valuation for households of different ages.

August 22, 2004 in Scholarship | Permalink | Comments (0) | TrackBack (0)

Saturday, August 21, 2004

Tax Prof Spotlight: Bradley Myers

Saturday, August 21, 2004

Photo of Professor MyersThis week's Tax Prof Spotlight continues our series of profiles of folks starting their careers this fall as tenure-track tax professors at American law schools. We hope the profiles will help introduce our newest tax colleagues to the academic tax community.

Brad Myers came to tax law as a second career. After completing bachelors and masters degrees in Kinesiology at UCLA, he started the Ph.D. program in Animal Physiology at UC Davis, working with Dr. Ray Burger investigating ventilatory control in birds (Chicken Intrapulmonary and Cardiac Nerve Afferents Interact in Ventilatory Control, 98 Respiration Physiology 283 (1994)). When Dr. Burger passed away one year into the program, Brad decided to abandon the sciences and attend law school. "While I really enjoyed the teaching and research, being a scientist requires an endless pursuit of funding and I really did not enjoy that aspect of the career."

Brad began law school at the University of Oregon with the expectation of entering the environmental law field. "I believed that the disconnect between environmental laws and environmental science had to be because the lawyers and the scientists had trouble communicating with one another. Only when I took environmental law did I discover that the lawyers generally understood the science, they just viewed it as one more fact to be used in achieving their larger goals and not has something that should drive policy."
Searching for some new area in which to focus, Brad had the good fortune of working as a research assistant for Professor Leslie Harris and taking Federal Income Tax from Professor Nancy Shurtz. "I really took tax to fill out my course schedule with something I thought would be easy. I was good at math. That had to be an advantage, didn’t it?" Professors Harris and Shurtz also were part of the core faculty for a Certificate of Completion in Estate Planning offered by the University of Oregon, which he completed. "I found that I enjoyed the 'Where’s Waldo' aspects of researching tax law. You can usually find an answer if you stare at the resources enough. More importantly, the idea of practice that helped people plan to achieve results, rather than helping people who have suffered a calamity, appealed to me."

After law school, Brad traveled to NYU to complete an LL.M. in Taxation. His wife enrolled in the MSW program at the Columbia School of Social Work at the same time. "NYU was a wonderful experience, not only because of the faculty, but because of the high quality of the students. I know that reads like one of the sappy quotations from a school catalog, but I really feel the atmosphere helped me develop a deeper understanding of the subject matter."

After NYU, Brad worked for Hale Lane in Reno, Nevada. "I really looked hard for a firm that would give me the opportunity to do significant work in a number of different areas. Most of the firms with large tax departments did not seem to want their tax lawyers to do anything but tax work. At Hale Lane I mostly did tax, business, and estate planning, but I also had the opportunity to conduct some litigation research and even argued once in Bankruptcy Court." Eventually, Brad developed a specialization in housing development using Section 42 low-income housing tax credits and tax exempt bond financing.

So how did he come to teaching? "Although I gave up the sciences, I never really gave up the idea of returning to higher education. I just love the academic environment. My original plan was to work for a couple of years, publishing a couple of articles a year, and then moving into teaching. Apparently I had no idea how much work a law firm actually expects an associate to do." Finding time to publish actually required changing firms a couple of times, but he eventually got some work published:

Tax Treatment of Investment in Infrastructure Agreements, 29 Real Estate Tax'n 81 (2002)
Revisiting the Commerciality Doctrine, 10 J. of Affordable Housing & Community Development Law 2 (2001)
Estate Planning and Probate for the Paralegal/Legal Assistant in Oregon (NBI, Inc., 1999)
8 Things Non-Estate Planning Attorneys Should Know About Estates, Oregon Bar Bulletin (Nov. 1999).
Brad got the opportunity to join the faculty at the University of North Dakota School of law in 2001. "The AALS Conference is the not the most fun I have ever had, but NYU really provides it graduates with a lot of support at the conference and made the process I lot less stressful than it could have been." The small size of the faculty allowed him the same variety in courses to teach as he sought out in practice. "They brought me in to cover Trusts and Estates, but I have also been able to teach Tax Policy, Intellectual Property, Estate Planning, International Law, and International Business Transactions, as well as working with the summer school program we offer in Oslo, Norway. This fall I am taking over the Income Taxation course and I expect to take over more of the tax courses in the future."

Each Saturday, TaxProf Blog shines the spotlight on one of the 700+ tax professors in America's law schools. We hope to help bring the many individual stories of scholarly achievements, teaching innovations, public service, and career moves within the tax professorate to the attention of the broader tax community. Please email me suggestions for future Tax Prof Profiles, particularly for our series on new tax professors. For prior Tax Prof Profiles, see here.

August 21, 2004 in Tax Prof Spotlight | Permalink | Comments (0) | TrackBack (0)