TaxProf Blog

Editor: Paul L. Caron, Dean
Pepperdine University School of Law

Wednesday, November 30, 2016

More Law Degrees For Women, But Fewer Good Jobs

NY Times Dealbook (2013)New York Times Deal Book: More Law Degrees for Women, but Fewer Good Jobs, by Elizabeth Olson:

Women currently occupy nearly half of all the seats in American law schools, gaining credentials for a professional career once all but reserved for men. But their large presence on campus does not mean women have the same job prospects as men.

New research indicates that female law students are clustered in lower-ranked schools, and fewer women are enrolled in the country’s most prestigious institutions. Such distribution can make a significant difference in whether female law graduates land legal jobs that pay higher wages and afford long-term job security and professional advancement.

Women “are less likely than men to attend the schools that send a high percentage of graduates into the profession,” said Deborah J. Merritt, a law professor at the Moritz College of Law at Ohio State University, who co-wrote the report called The Leaky Pipeline for Women Entering the Legal Profession.

Continue reading

November 30, 2016 in Legal Education | Permalink | Comments (2)

CBO & Joint Tax Committee:  Factors Affecting Revenue Estimates Of Tax Compliance Proposals

The Congressional Budget Office and Joint Committee Taxation have released Factors Affecting Revenue Estimates of Tax Compliance Proposals (CBO Working Paper 2016-05; JTX-90-16):

This paper examines various factors that affect estimates made by the Congressional Budget Office and the staff of the Joint Committee on Taxation of the budgetary savings from tax compliance proposals. Affecting the current law baseline, against which proposed changes are measured, are the size of the tax gap and the amount of Internal Revenue Service (IRS) resources. Other considerations that affect the revenue estimates for either appropriation proposals or changes to the tax code include the distinction between detection and deterrence, the budget scorekeeping guidelines, and the constraints faced by the IRS when trying to obtain a higher return on investment from new initiatives than from the activities allowed under current law. In addition to those common considerations, there are factors unique to proposals to increase funding and to those that would expand the IRS’s enforcement tools allowed under the tax code. Those unique factors are illustrated by two examples—first, the Administration’s proposal to increase funding for IRS enforcement actions that was included in its fiscal year 2016 budget submission and second, legislation enacted in 2016 to reduce identity fraud in the tax system.

Continue reading

November 30, 2016 in Congressional News, Gov't Reports, IRS News | Permalink | Comments (0)

Dyreng Presents Trade-offs In The Repatriation Of Foreign Earnings Today At Pennsylvania

DyrengScott D. Dyreng (Duke) presents Trade-offs in the Repatriation of Foreign Earnings (with Kevin S. Markle (Iowa) & Jon C. Medrano (Iowa)) at Pennsylvania today as part of its Tax Policy Workshop Series hosted by Chris Sanchirico and Reed Shuldiner:

We examine repatriations of foreign earnings that have been designated as indefinitely reinvested. U.S. firms can repatriate foreign earnings without an immediate tax cost when there is a domestic loss, which frees the earnings to be used domestically. But using the domestic loss to offset repatriation taxes reduces financial accounting income, and removes a real option to tax deferral. We show that firms are more likely to repatriate indefinitely reinvested foreign earnings in domestic loss years, but they are less likely to repatriate when financial reporting incentives are strong.

Continue reading

November 30, 2016 in Colloquia, Scholarship, Tax | Permalink | Comments (0)

ABA Blawg 100 And Blawg Hall Of Fame

Top 100 2The ABA Journal has released its annual list of the Top 100 Blawgs.  I am delighted that five members of our Law Professor Blogs Network are honored:

Three members of our Law Professor Blogs Network are in the ABA Journal Blawg 100 Hall of Fame:

Continue reading

November 30, 2016 in Legal Education, Tax | Permalink | Comments (0)

Several Law Profs Named On Watchlist Of Academics Who Advance 'Leftist Propaganda'

PWFollowing up on last week's post, New Website Seeks To Register Professors Accused of Liberal Bias:  New York Times, Professor Watchlist Is Seen as Threat to Academic Freedom:

A new website that accuses nearly 200 college professors of advancing “leftist propaganda in the classroom” and discriminating against conservative students has been criticized as a threat to academic freedom.

The site, Professor Watchlist, which first appeared Nov. 21, says it names those instructors who “advance a radical agenda in lecture halls.”

“We aim to post professors who have records of targeting students for their viewpoints, forcing students to adopt a certain perspective, and/or abuse or harm students in any way for standing up for their beliefs,” wrote Matt Lamb, an organizer of the site.

ABA Journal, Several Law Profs Land on Watchlist of Academics Who Advance 'Leftist Propaganda':

Harvard law professor Mark Tushnet says he isn’t bothered by his inclusion on a conservative group’s new watchlist of leftist professors. “It’s not a big deal,” Tushnet tells the Harvard Crimson. “It comes with the territory.” ... The watchlist targets Tushnet for a May 2015 blog post saying conservatives lost the culture wars, and it’s time to take a hard line with the losers. ...

Continue reading

November 30, 2016 in Legal Education | Permalink | Comments (8)

Tax Policy In The Trump Administration

Grand Jury Charges Katherine Magbanua With First Degree Murder In Killing Of Dan Markel

MagnaubaFollowing up on yesterday's post:  Tallahassee Democrat, Katherine Magbanua Indicted on First-Degree Murder Charges in Dan Markel Case:

Prosecutors secured a murder indictment of Katherine Magbanua, a prime suspect in orchestrating the July 2014 shooting of Florida State University law professor Dan Markel.

After hearing from police investigators and Luis Rivera, one of two men suspected of carrying out the murder-for-hire, grand jurors Tuesday charged the 31-year-old with first-degree murder.

She is the suspected link between Markel’s former in-laws and two men, Sigfredo Garcia and Rivera, charged with his murder.

Magbanua has two children with Garcia, who has an extensive criminal record. She was arrested on Oct. 1 in Broward County and is being held in the Leon County Jail.

Investigators believe she is the go-between for the family of Markel's ex-wife Wendi Adelson, whose brother, Charlie Adelson, and mother, Donna Adelson, have been linked to the murder-for-hire plot by investigators but have not been charged. ...

Continue reading

November 30, 2016 in Legal Education | Permalink | Comments (7)

The IRS Scandal, Day 1301:  If Koskinen Is Impeached Or Fired, Trump Could Appoint New IRS Commissioner To Go Easy On His Taxes

IRS Logo 2USA Today, Trump Faces Potential Decision on IRS:

President-elect Donald Trump could face a decision that may affect whether his tax returns will continue to be audited throughout his four-year term of office.

IRS regulations call for annual audits of tax returns filed by U.S. presidents and vice presidents. But those rules, in place roughly 40 years, theoretically could be changed by the tax agency — whose current leader is under fire from Capitol Hill. ...

Trump has not publicly discussed future leadership for the IRS, which is part of the Department of the Treasury. ... Current IRS Commissioner John Koskinen, serving a five-year term that's set to end in November 2017, has been under pressure from congressional Republicans angered by what they contend was the tax agency's politically motivated delays of applications for non-profit status submitted by conservative Tea Party organizations. They say Koskinen misled Congress and obstructed committees that investigated the issue, allegations he has denied. ...

House Republicans started the process of initiating impeachment proceedings against Koskinen with a Judiciary Committee hearing in September. But no votes were held during the session. If he leaves through impeachment or resignation after Trump takes office, Trump would nominate a successor, subject to Senate confirmation.

"I serve at the pleasure of the President and a new President can always ask me to step aside sooner," Koskinen said in part of a statement prepared for a House hearing in July.

IRS commissioners haven't always stepped down for a new White House administration. Shirley Peterson, appointed in 1992 by President George H.W. Bush, officially left as of January 1993, as Bill Clinton took office. But Charles Rossotti, appointed by Clinton in 1997, stayed on for the opening two years of President George W. Bush's first term following enactment of the law that established five-year terms for IRS commissioners.

In a move to guard against any interference with the IRS, a 1998 federal law makes it illegal for executive branch officials to ask the tax agency to initiate or terminate an audit or investigations, Leas said. Convicted violators are subject to a maximum $5,000 fine and five-year prison term.

Several tax law experts recently told Politico the statute wouldn't necessarily stop the appointment of a nominee who might seek easier or tougher treatment of certain audits.

However, Robert McKenzie, a tax expert at the Arnstein & Lehr law firm's Chicago office, theorized that "a conscientious IRS employee would come forward and report it if someone tried to influence him or her on an audit."

Continue reading

November 30, 2016 in IRS News, IRS Scandal, Tax | Permalink | Comments (2)

Tuesday, November 29, 2016

Will Nick Saban Sack The IRS In Tax Court?

SabanWall Street Journal, The Rise of Nick Saban Incorporated:

Over the past decade, Saban has created a modern football dynasty at Alabama, with four national titles in seven years and another possibly in the offing as it gears up for the annual showdown with archrival Auburn.

With considerably less fanfare, Saban has also built a business empire off the field, a collection of investments and projects that roughly traces the path of his 40-year career: A strip mall outside East Lansing, Mich. Apartment complexes around Houston, Texas. A pair of small apartment buildings in Baton Rouge, La. An upscale residential development in Tuscaloosa, Ala. And a growing collection of Mercedes-Benz dealerships. ... On a state disclosure form filed in May 2016, Saban listed 23 entities, some with names like Blitzmore LLC and First Down LLC, in which he or his wife, Terry—a licensed real estate professional—hold 5% or more of the stock, or serve as officers. ...

Continue reading

November 29, 2016 in Celebrity Tax Lore, Tax | Permalink | Comments (2)

After Big Associate Salary Boost In June, Cravath Holds Year-End Bonuses Steady ($15k-$100k)

CravathOn the heels of its big June increase in associate salaries, Cravath Swaine & Moore announced yesterday that is is awarding the same amount of associate bonuses as last year:

Class of 2016 — $15,000 (pro-rated) (on top of $180,000 salary)
Class of 2015 — $15,000 (on top of $190,000 salary)
Class of 2014 — $25,000 (on top of $210,000 salary)
Class of 2013 — $50,000 (on top of $235,000 salary)
Class of 2012 — $65,000 (on top of $260,000 salary)
Class of 2011 — $80,000 (on top of $280,000 salary)
Class of 2010 — $90,000 (on top of $300,000 salary)
Class of 2009 — $100,000 (on top of $315,000 salary)
Class of 2008 — $100,000

Continue reading

November 29, 2016 in Legal Education | Permalink | Comments (4)

Tax Reform May Determine Fate Of Trump's Push For Carrier To Keep U.S. Plant Open

CarrierWall Street Journal, Deal for Carrier to Keep U.S. Plant Open May Hinge on Tax Overhaul:

President-elect Donald Trump’s campaign pledge to save jobs at a Carrier plant in Indiana was framed around free trade, but negotiations about corporate tax law changes could be just as important to any possible deal.

Representatives for the incoming administration, including Vice President-elect Mike Pence, have held wide-ranging policy talks with top-ranking executives at Carrier’s parent company, United Technologies Corp., said a person familiar with the discussions.

The discussions include the conglomerate’s plans to shift more than 2,000 jobs from Indiana to Mexico, but have covered other issues, including the company’s wishes for a tax overhaul that Mr. Trump and Republicans have promised to pursue early in his administration, this person said. ...

Continue reading

November 29, 2016 in Tax | Permalink | Comments (1)

Brooklyn Law School Sues Property Professor For Refusing To Vacate Rental Apartment After School's Sale Of Building To Developer

MurumbaThe Real Deal, Law Professor’s Eviction Fight Complicates Billionaire’s Plans for Brooklyn Rental Building:

A Brooklyn Law School professor is refusing to vacate a Brooklyn Heights rental building that a billionaire investor snapped up last year, setting in motion a flurry of lawsuits.

Professor Samuel Murumba asserted his tenants rights and would not vacate his combined apartments at 2 Pierrepont Street in time for renovations, the New York Post reported. The owner of the building, billionaire Vincent Viola, bought the 12-story rental from the Brooklyn Law School for $35 million in September last year.

Continue reading

November 29, 2016 in Legal Education | Permalink | Comments (6)

Prosecutors To Seek First Degree Murder Charge Today Against Katherine Magbanua In Grand Jury Proceedings In Dan Markel's Murder

MagnaubaTallahassee Democrat, Grand Jurors Weighing Magbanua's Connection to Markel Murder:

Leon County grand jurors will decide Tuesday whether to indict Katherine Magbanua in connection with the murder of Florida State law professor Dan Markel. ...

Investigators believe she is the go-between for the family of Markel's ex-wife Wendi Adelson, whose brother, Charlie Adelson, and mother, Donna Adelson, have been linked to the murder-for-hire plot by investigators but have not been charged. ... The Adelsons, through their attorneys, have called investigators’ theories “fanciful fiction.”

WCTV, Case Against Katherine Magbanua Headed to Grand Jury:

Assistant State Attorney Georgia Cappleman says the grand jury is scheduled for November 29th and she will seek a first-degree murder indictment against Magbanua. ...

Continue reading

November 29, 2016 in Legal Education | Permalink | Comments (8)

Korb & Solomon:  What Donald Trump’s Election Means For U.S. Tax Policy

Tax JournalDonald Korb (Sullivan & Cromwell; former IRS Chief Counsel (2004-08)) & Andrew Solomon (Sullivan & Cromwell), What Donald Trump’s Election Means for U.S. Tax Policy, Tax Journal (Nov. 18, 2016):

After last week’s stunning result in the US presidential election, the stage is now set for the most comprehensive rewrite of the US tax code since 1986.

Continue reading

November 29, 2016 in Tax | Permalink | Comments (0)

Law School Dean Wants al-Qaeda To Go After The U.S. News Rankings

EnginesFollowing up on my previous post, The U.S. News Law School Rankings: Engines Of Anxiety: Washington Post, Law School Administrators Would Like Al-Qaeda To Go After U.S. News & World Report. This Is Why.:

Wendy Nelson Espeland and Michael Sauder’s new book, Engines of Anxiety, explains how law schools try to game the U.S. News & World Report’s academic rankings to attract students. I interviewed them by email to understand why these rankings are so important, and what law schools do to try to improve their rating. ...

HF — Most law school deans seem to detest these rankings — you quote one who compares the rankings to a cockroach infestation, and another who wishes that al-Qaeda would go after U.S. News. Why do deans pay so much attention to the rankings if they hate them so much?

WNE & MS — The primary reason most deans pay attention to the rankings is that there are a number of external audiences — prospective students, current students, employers, boards of trustees — who either take the rankings at face value or use them to make decisions. Deans believe that rankings (no matter how questionable their methodology) can have real effects on their school as these external audiences decide where to go to school or whom to hire based on them. Many deans also fear losing their jobs if they don’t produce good numbers. This fear is warranted, given the number of deans and administrators who have lost their jobs as a result of not meeting expectations in the rankings. ...

Continue reading

November 29, 2016 in Legal Education | Permalink | Comments (4)

The IRS Scandal, Days 1201-1300

November 29, 2016 in IRS News, IRS Scandal, Tax | Permalink | Comments (0)

The IRS Scandal, Day 1300:  The IRS Scandal And The DOJ's Ban On U.S. Citizens Only Hiring Practices

IRS Logo 2Patriot Post, DOJ Levies Fines for Respecting Rule of Law:

While Lois Lerner and her acolytes at the Internal Revenue Service got away with unlawfully blocking the tax-free applications of conservative groups — which the agency is still doing, by the way — Obama’s Justice Department is busy punishing those who actually take Rule of Law seriously.

The latest example comes from Colorado, where the Denver Sheriff Department was handed 
"a $10,000 fine after it required applications for deputy sheriff jobs to be U.S. citizens when hiring from the beginning of 2015 through March 2016," the Washington Examiner says. ...

Heritage Foundation fellow Hans von Spakovsky outlines the reasons the statue likely isn’t applicable in this case. Also, don’t miss the irony here. The IRS, to name just one example, spent years circumventing the law in order to subjugate Tea Party groups. But when it comes to the DOJ, its behavior is hardly different; the agency is selectively enforcing rules based entirely on whether it benefits the Left. Spakovsky writes, “Given the importance of the job done by law enforcement officers throughout all levels of government to protect the public from those who would harm them … requiring citizenship seems like a basic, commonsense qualification.”

“The federal government certainly thinks so,” he adds, “because it does not apply this statute to itself. If you want to be a special agent for the Federal Bureau of Investigation, which often works closely with local law enforcement, including sheriff’s departments like Denver’s, the FBI website specifically says that you ‘must be a United States citizen.’ The same is true of the U.S. Secret Service, which routinely discriminates against noncitizens in a manner that no doubt horrifies the DOJ’s Office of Special Counsel for Immigration-Related Unfair Employment Practices.” You know what else requires U.S. citizenship? Yep — the DOJ.

Federal agencies are hardly immune to corruption. They never have been. But when the Justice Department bends the rules — for example, by refusing to prosecute IRS bureaucrats and enforcing rules from which it exempts itself only so far as the outcome comports with an agenda — the administration can hardly be considered “the most transparent in history.” It’s a slow track to tyranny.

Continue reading

November 29, 2016 in IRS News, IRS Scandal, Tax | Permalink | Comments (1)

Monday, November 28, 2016

Morse Presents Trickle-Down Consumption Today At NYU

MorseAdair Morse (UC-Berkeley) presents Trickle-Down Consumption (with Marianne Bertrand (Chicago)) at NYU today as part of its High-End Inequality Colloquium Series (more here) hosted by Robert Frank (Cornell) and Dan Shaviro (NYU): :

Have rising income and consumption at the top of income distribution since the early 1980s induced households in the lower tiers of the distribution to consume a larger share of their income? Using state-year variation in income level and consumption in the top first quintile or decile of the income distribution, we find evidence for such "trickle-down consumption." The magnitude of effect suggests that middle income households would have saved between 2.6 and 3.2 percent more by the mid-2000s had incomes at the top grown at the same rate as median income.

Continue reading

November 28, 2016 in Colloquia, Scholarship, Tax | Permalink | Comments (0)

OECD:  Trump Tax And Spending Plans Will Double U.S. Economic Growth, Lift Global Economy

Texas Legislators Push For New Public Law School In The Rio Grande Valley Because 'Everybody Has A Law School'

Rio GrandeThe Monitor, Valley Legislators File Bills Asking For a Law School in the Area:

A new legislative year is bringing renewed hope for Rio Grande Valley representatives who hope to establish a law school in the area.

“The law school is a natural progression as our demographics grow, as our population grows,” said Eddie Lucio III, D-Brownsville. “There are some great, very talented young professionals who for financial reasons or reasons related to family cannot travel to San Antonio, which is our nearest law school.”

Lucio III and Armando “Mando” Martinez, D-Weslaco, both filed legislation — House Bill 169 and 46, respectively — last week calling for the establishment of a public law school in either Cameron or Hidalgo County.

Continue reading

November 28, 2016 in Legal Education | Permalink | Comments (4)

The Investment Tax Credit And Immediate Expensing: Lessons In Cyclical Fiscal Activism

Mirit Eyal-Cohen (Alabama), Lessons in Cyclical Fiscal Activism, 48 Conn. L. Rev. 873 (2016):

This Article highlights an anomaly. It tells a story of two tax rules that were introduced at the same time to achieve a similar goal. Both were meant to be temporary and stimulate economic growth but received dramatically different outcomes. The Article reviews the reasons for this paradox. It demonstrates that the causes are structural, ideological, and political. It argues that the historical support the two mechanisms received diverged in accordance with their complexity, the perceptions they epitomized, and their instrumental role in society.

Continue reading

November 28, 2016 in Scholarship, Tax | Permalink | Comments (0)

Trump’s Emolument Tax Problem

TrumpAndy Grewal (Iowa), The Trump Hotel Isn’t Unconstitutional, Yale J. on Reg.: Notice & Comment (Nov. 22, 2016):

Over the last few days, commentators have argued that President-Elect Trump’s business interests in the D.C.-based Trump Hotel may create constitutional problems under the Emoluments Clause. See, e.g., [Noah Feldman (Harvard)], Trump’s Hotel Lodges a Constitutional Problem, Bloomberg View (Nov. 21, 2016). As relevant here, the Emoluments Clause prevents a person holding a federal office from accepting any “present”  or “emolument” of any kind from any foreign country, unless Congress consents. Foreign diplomats have recently stayed at the Trump Hotel and this raises questions about whether, if this practice continues after inauguration, any lodging fees collected in connection with their stays would constitute the acceptance of a present (gift) or emolument by Trump.

Continue reading

November 28, 2016 in Political News, Tax | Permalink | Comments (0)

Public Opinion Survey:  Should Governments Tax The Rich And Subsidize The Poor?

Robert W. McGee (Fayetteville State), Should Governments Tax the Rich and Subsidize the Poor? An Empirical Study of Opinion in the United States:

The present study reports the findings of a survey conducted by the World Values Survey scientists in the United States on the question of whether governments should tax the rich and subsidize the poor. The sample size of 2166 consisted of individuals from all parts of the United States. A 10-point Likert Scale was used to determine the extent of agreement or disagreement with the question. Various demographic variables were also examined to determine whether differences between groups were significant. Demographic variables included gender, age, marital status, social class, education level, region of the country, religion and ethnicity.

This study examines opinion in the United States on the question of whether it is a legitimate function of government to confiscate the property of the rich and distribute that property to the poor. ...

The questions asked:  Many things are desirable, but not all of them are essential characteristics of democracy. Please tell me for each of the following things how essential you think it is as a characteristic of democracy. Use this scale where 1 means “not at all an essential characteristic of democracy” and 10 means it definitely is “an essential characteristic of democracy”: Governments tax the rich and subsidize the poor.

Responses were measured on a 10-point Likert scale where 1 is “Not an essential characteristic of democracy” and 10 is “An essential characteristic of democracy.” The sample size was 2166.

Table 1 shows the overall results. The mean score of 5.04 indicates strong support for the view that confiscating the wealth of the rich to subsidize the poor is a legitimate function of democracy.

Table 1

Robert W. McGee (Fayetteville State), Should Governments Tax the Rich and Subsidize the Poor? An Empirical Study of Opinion in 59 Countries:

Continue reading

November 28, 2016 in Scholarship, Tax | Permalink | Comments (5)

The IRS Scandal, Day 1299:  Ways & Means Chair Brady On How The House Has Reined In The IRS

IRS Logo 2Houston Chronicle op-ed: Reining In the IRS, by Kevin Brady (Chair, House Ways & Means Committee):

Over the last year, the Ways and Means Committee has led the "IRS Accountability Agenda" where House Republicans have approved a series of aggressive, Constitution-restoring legislation to reform the IRS and hold it accountable to the American taxpayer.

Our actions include:

Passing into law the first ban against the IRS targeting taxpayers or organizations based on their political beliefs. In June 2016, the House passed the Preventing IRS Abuse and Protecting Free Speech Act, which protects the identities of those who donate to tax-exempt organizations. This was in response to more IRS targeting of Americans.

Passing into law the Stolen Identity Refund Fraud Prevention Act which directs the IRS to take aggressive action to combat the growing problem of identity theft of confidential taxpayer information.

In April the U.S. House passed the Ensuring Integrity in the IRS Workforce Act, which prohibits the IRS from rehiring employees for misconduct, and the No Hires for the Delinquent IRS Act, which suspends the hiring of new IRS employees unless the Treasury Secretary certifies that no IRS employees have serious delinquencies with respect to their own tax obligations.

The same month the U.S. House passed legislation that prohibits the IRS from paying bonuses to employees until the Secretary of the Treasury implements a comprehensive customer service strategy that puts hardworking taxpayers first. And the House approved a bill that repeals the IRS's authority to spend the user fees it collects – restoring to Congress the full authority over how the IRS spends those resources. ... 

One of the most offensive actions by the IRS is its continued unlawful seizures of money and assets of innocent Americans, called civil asset forfeiture. After two years of aggressive oversight by the Ways and Means Committee in which IRS Commissioner John Koskinen apologized for the agency's actions, the U.S. House approved the Clyde-Hirsch-Sowers RESPECT Act, which puts in place important measures to prevent the IRS from wrongfully seizing the assets of law-abiding taxpayers. Since then, under bipartisan pressure the IRS has agreed to review its seizures of assets against hundreds of American taxpayers, and has begun to return the money stolen from these innocent Americans, many of them small business people and farmers merely depositing their daily and weekly receipts. Finally, some justice for those who have been harmed. And perhaps fewer Americans hurt in the future by unlawful seizures.

Continue reading

November 28, 2016 in IRS News, IRS Scandal, Tax | Permalink | Comments (0)

TaxProf Blog Holiday Weekend Roundup

Sunday, November 27, 2016

Tax Policy In The Trump Administration

The Top 5 Tax Paper Downloads

SSRN LogoThis week's list of the Top 5 Recent Tax Paper Downloads is the same as last week's list. The #1 paper is now #9 in all-time downloads among 12,361 tax papers:

  1. [5,543 Downloads]  Families Facing Tax Increases Under Trump's Latest Tax Plan, by Lily L. Batchelder (NYU)
  2. [580 Downloads]  Aggressive Tax Planning & the Ethical Tax Lawyer, by Heather M. Field (UC-Hastings)
  3. [311 Downloads]  The Up-C Revolution, by Gregg D. Polsky (Georgia) & Adam H. Rosenzweig (Washington University)
  4. [280 Downloads]  Estate Planning for Digital Assets: Assigning Tax Basis and Value to Digital Assets, by Elizabeth Ruth Carter (LSU)
  5. [254 Downloads]  IRS Issues Final and Temporary Debt-Equity Regulations Under Section 385, by David S. Miller (Proskauer, New York) & Janicelynn Asamoto Park (Proskauer, New York)

November 27, 2016 in Scholarship, Tax, Top 5 Downloads | Permalink | Comments (0)

Kaplan:  Religion And Advance Medical Directives—Formulation And Enforcement Implications

Richard L. Kaplan (Illinois), Religion and Advance Medical Directives: Formulation and Enforcement Implications, 2016 U. Ill. L. Rev. 1737:

This Article examines the role of religion in the creation and enforcement of advance medical directives. It begins by setting out the principal similarities and differences between the two types of such directives—namely, living wills and health care proxies (or powers of attorney). It then considers the formulation of religiously oriented advance directives and their incorporation of religious doctrine and imperatives. The Article then addresses the impact that the religious views of an individual patient’s treating physician might have on such directives.

Continue reading

November 27, 2016 in Scholarship, Tax | Permalink | Comments (0)

The IRS Scandal, Day 1298: The IRS Scandal And A Trump-Ryan Constitutional Revival

IRS Logo 2Wall Street Journal op-ed: A Trump-Ryan Constitutional Revival: Wariness of Trump Might Inspire Republicans in Congress to Give Up Lazy Delegation and Relearn the Art of Legislating, by Christopher DeMuth (Hudson Institute):

A central purpose of the American scheme of checks and balances is to draw out the distinctive strengths of the two political branches, executive and the legislature, while containing their distinctive weaknesses.

The scheme has not been working well of late. The consequences are unbridled executive growth into every cranny of commerce and society, and a bystander Congress. We have lapsed into autopilot government, rife with corruption and seemingly immune to incremental electoral correction.

These pathologies were a significant cause of the Trumpian political earthquake. And one of the many astonishing results of Donald Trump’s presidential campaign and the Republican sweep on Election Day is that they have set the stage for a constitutional revival. ... [T]he new president and Congress are poised to revive constitutional practices in their own branches.

One of these practices is results-oriented policy making—so-called transactional politics—an approximation of what the Founders meant by “deliberation.” Another, “checks and balances,” is vigorous policy competition between the executive branch and Congress. Both practices have fallen into disuse in what had seemed, until now, to be a continuing downward spiral of dysfunctional government. ...

Congress is bound to recover and assert many of its long-neglected legislative prerogatives. In recent decades, our scheme of separated powers has been supplanted by party solidarity between presidents and their congressional co-partisans. (Separation of Parties, Not Powers is the title of an influential 2006 study of this development by Daryl J. Levinson and Richard H. Pildes.)

Members of Congress have increasingly acted out of loyalty to party rather than to Congress as an independent constitutional branch. They support or obstruct administration initiatives along partisan lines, and when in support they receive fundraising and bureaucratic favors from the president in return. During periods of party-unified government, congressional majorities delegate broad lawmaking powers to the executive, as in the Affordable Care and Dodd-Frank acts, that are almost impossible to recover when divided government returns. Congressional minorities allied with the president, employing the Senate filibuster and other supermajority rules, ensure that Congress turns a blind eye to executive abuses, as in the recent IRS and Veterans hospital scandals. ...

If [congressional Republicans] want to participate in charting new courses for health-care, tax and immigration policy and financial regulation, they are going to have to give up lazy policy delegation to the executive and relearn the arts of legislating and collective choice. And if President Trump should try to settle these and similarly momentous matters through Obama-style executive decrees, they are going to have to cry foul and make it stick.

The hard intraparty contention of the 2016 campaign has prepared the congressional Republicans for this. President-elect Trump’s obvious relish for transactional politics, and the largeness of his ambitions, suggests that he is prepared as well. The likely evanescence of Barack Obama’s Congress-free domestic and foreign initiatives—the already voided immigration policies, the Clean Power Plan, the Iran deal, national rules for bathroom etiquette—should inspire everyone to stay at the table. ...

These would be healthy developments for our constitutional order. Presidents have the strengths of action, decisiveness, high aspiration and a national political mandate—along with the weaknesses of overreaching, insularity and concentration of power. They oversee a bureaucratic empire too vast for any one man to keep track of, and so powerful that abuse and corruption are commonplace.

Congresses have the strengths of full-spectrum political representation, 535 state and local mandates, and responsiveness to shifting popular concerns and a soft spot for human-rights minorities at home and abroad—along with the weaknesses of parochialism, irresolution, decision-by-committee and herd mentality.

We need more of the strengths and less of the weaknesses. But transactional politics and interbranch rivalry are no guarantee of happy outcomes, which depend ultimately on the constitution of the participants. The record of tough-guy political outsiders is less than great. Businessman Silvio Berlusconi in Italy, and muscleman Arnold Schwarzenegger in California, came to office promising to upend the status quo. But when they discovered how entrenched and hard-bitten the status quo really was, they promptly folded, contented themselves with mere celebrity, and accomplished nothing.

Continue reading

November 27, 2016 in IRS News, IRS Scandal, Tax | Permalink | Comments (0)

Saturday, November 26, 2016

This Week's Ten Most Popular TaxProf Blog Posts

Law Student Loan Forgiveness 'May Be In Crosshairs' Of Trump Administration, Republican Congress

Trump (President Elect)National Law Journal, Trump's Election Fuels Worry Over Lawyer Loan Forgiveness:

President-elect Donald Trump offered few specifics on the campaign trail about student debt and the government's role in aiding those saddled with massive educational loans.

Now, student loan experts and public-interest advocates are parsing those sparse comments on the subject for clues about what a Trump administration means for current and future borrowers, lawyers and law students included.

Their takeaway? Good news for attorneys already practicing, and a precarious position for lawyers-to-be, especially those wanting public-interest jobs.

Continue reading

November 26, 2016 in Legal Education | Permalink | Comments (6)

What Would A Libertarian Tax Look Like?

LibertarianJohn R. Dorocak (California State University, San Bernardino), What Would a Libertarian Tax Look Like?, 57 S. Tex. L. Rev. 147 (2015):

Libertarian ideas have been given attention, particularly recently, in academic, judicial, and political areas. Those who have been involved with taxation as practitioners or academicians at some point in time likely wrestle with the question of what should "fair" taxation look like. The goal here is not to discuss all philosophical underpinnings of a tax system, but rather to discuss how libertarians might frame a tax system.

Continue reading

November 26, 2016 in Scholarship, Tax | Permalink | Comments (4)

The IRS Scandal, Day 1297: The Scorecard

IRS Logo 2Newsmax, IRS Denies Tax Exempt Status to 2 Tea Party Groups — After 7 Years:

After up to 7 years of intentionally delaying their cases, the IRS denied two Tea Party groups tax exempt status while approving one, The Washington Times reports.

The scorecard, published Monday by the Times, shows:

  • 2 denials (Albuquerque Tea Party and Tri Cities Tea Party from Washington).
  • 2 pending, including Texas Patriots Tea Party, part of a class action lawsuit.
  • 1 approval (Unite in Action from Michigan).

Continue reading

November 26, 2016 | Permalink | Comments (1)

Friday, November 25, 2016

Weekly Tax Highlight And Roundup

This week, Joe Kristan (CPA & Shareholder, Roth & Company (Des Moines, Iowa); Editor, Tax Update Blog) discusses the importance of not paying other creditors before you pay payroll taxes to the IRS.

KristanNo good deed goes unpunished if you owe payroll taxes.

IRS>Employees. Pay the payroll taxes to the IRS, no matter who else you have to stiff. That’s the lesson of a sad court case out of Houston last week.

Dr. McClendon ran Family Practice Associates for 20 years. Sometime along the way his CFO started keeping the payroll taxes the practice was supposed to remit to the IRS for himself, until by 2009 $10 million was unpaid. The U.S. District Court Judge takes up the story (my emphasis, citations omitted):

Family Practice stopped operating and remitted its remaining receivables to the IRS to pay toward the tax liability. Dr. McClendon made a $100,000 personal loan to Family Practice “for the restricted purpose of . . . using the funds to pay the May 15, 2009 payroll.” Family Practice used that loan to pay its employees.

Continue reading

November 25, 2016 in New Cases, Tax, Weekly Tax Roundup | Permalink | Comments (0)

Weekly SSRN Tax Article Review And Roundup

This week, Ari Glogower (Ohio State) reviews a new article by Lily Batchelder (NYU), The “Silver Spoon” Tax: How to Strengthen Wealth Transfer Taxation, in Delivering Equitable Growth: Strategies for the Next Administration (Washington Center for Equitable Growth, Fall 2016).

Glogower (2016)Lily Batchelder’s new work examines the reform options for taxing wealth transfers. 

The argues that that wealth transfer taxes are an essential tool for mitigating economic inequality – as measured by both disparities of wealth, income and other measures of economic well-being, and by disparities of economic opportunity. Wealth transfer taxes are also relatively efficient, since taxpayers save for the purposes of enjoying wealth while they are alive (and the social benefits wealth affords) and for retirement needs, in addition to merely accumulating bequests for future generations. Batchelder argues that wealth transfer taxes may also efficiently counter the decreased work incentive among heirs. 

Continue reading

November 25, 2016 in Scholarship, Tax, Weekly SSRN Roundup | Permalink | Comments (0)

Weekly Legal Education Roundup

The IRS Scandal, Day 1296: Will Koskinen Resign As IRS Commissioner At Trump's Request?

IRS Logo 2Politico Morning Tax, It’s On. Still:

If you thought Donald Trump’s win last week might soften Rep. Jim Jordan’s desire to impeach IRS Commissioner John Koskinen — well, you were wrong.

As our Katy O’Donnell reports, Jordan (R-Ohio), the chairman of the House Freedom Caucus, used the occasion of the IRS denying the Albuquerque Tea Party tax-exempt status to put a jolt into his impeachment efforts. Jordan called that decision just the latest sign that “Koskinen continues in his dereliction of duty. Congress must move forward on impeaching him.”

As Katy also notes, Koskinen isn’t likely to sound daunted by the threat, having noted previously that the votes just don’t seem to be there in the House for impeachment. He’s also said that a federal judge’s recent statement that the IRS might still be improperly singling out tea party groups — which Jordan cited on Monday — was mistaken.

What does it all mean? It’s pretty clear that House GOP leaders really don’t feel the need to tackle impeachment. But Koskinen, who has about a year left on his term, has also suggested that he’d leave if the next president doesn’t want him to lead the agency — which certainly seems like a possibility, at least.

Continue reading

November 25, 2016 in IRS News, IRS Scandal, Tax | Permalink | Comments (9)

Thursday, November 24, 2016

Law Profs: Take The Pledge For The Public Good

TakeAlexi Freeman (Denver) & Katie Steefel (Denver), The Pledge for the Public Good: A Student-Led Initiative to Incorporate Morality and Justice in Every Classroom, 22 Wash. & Lee J. C.R. & Soc. Just. 49-106 (2016):

"The first thing I lost in law school was the reason I came." This is the disheartening reality for countless law students. While legal education has made great strides towards diversifying its offerings and expanding its focus over time, the struggle to maintain one's vision and identity, especially if such things connect to the public interest, remains challenging. Some notable exceptions exist, but overall, law schools often still underserve those who are public interest focused and fail to graduate many students who devote themselves to serving the public good.

While the climate at our school is supportive and embracing of public interest, and efforts to do even more are on the rise, the University of Denver Sturm College of Law (Denver Law) is no exception. To move any law school to "the other side" that only a few are privileged to be a part of, large-scale, long-term transformation is needed to connect public interest to all aspects of culture and curriculum. The consumers of legal education—the students—can play a major role in jumpstarting this transformation. At Denver Law, the Chancellor's Scholars did just that with the creation of the Pledge for the Public Good.

Continue reading

November 24, 2016 in Legal Education | Permalink | Comments (2)

Penn State Issues Call For Tax Papers

Penn StateThe Penn State Journal of Law & International Affairs has issued a call for tax papers:

The Penn State Journal of Law & International Affair (“JLIA”) is conducting a call for papers for an upcoming publication in spring 2017. The publication will focus on areas of taxation, corporate law, banking and finance, and related subject areas. Current papers accepted for publication cover areas of international taxation, international financial regulation for cryptocurrencies, and regulations resulting from the global financial crisis.

Continue reading

November 24, 2016 in Scholarship, Tax | Permalink | Comments (0)

WKRP in Cincinnati Thanksgiving Turkey Drop

November 24, 2016 in Legal Education, Tax | Permalink | Comments (1)

The IRS Scandal, Day 1295: If Koskinen Is Impeached Or Fired, Trump Could Appoint New IRS Commissioner To Go Easy On His Taxes

IRS Logo 2Politico, Trump Gets to Pick His Own Auditor: Lawyers Say There's Nothing to Stop Him From Appointing an IRS Chief Who Will Go Easy on Him:

President-elect Donald Trump will soon be able to appoint a new director of the agency auditing his taxes, a potential political minefield after his writeoffs and his refusal to release his returns were repeatedly questioned in the campaign.

The president is barred from directing how the IRS treats specific taxpayers, but lawyers say there’s nothing to stop Trump from appointing an IRS chief who will go easy on him while scrutinizing his political enemies.

“There is precious little statutorily that prohibits that,” said Caplin & Drysdale tax lawyer Chris Rizek, who served in the Treasury Department’s Office of Legislative Counsel under former president Clinton.

Trump could have the opportunity to put his own IRS chief into place quickly, even though the IRS commissioner serves a fixed five-year term to shield the agency from presidential politics. Current Commissioner John Koskinen, whose term ends next November, is facing potential impeachment in the House over his handling of investigations, and he could come under pressure to resign before Trump takes office. House Freedom Caucus Chairman Jim Jordan reiterated his call for impeachment this month, and lobbyists expect Trump to give Koskinen the boot to throw conservatives a bone. ...

The IRS also reviews the president’s and vice president’s returns each year, but those audits aren’t required by law, and Trump could stop them. “They don’t need Congress’ approval to change that,” [Valparaiso Law Professor David] Herzig said. “It might raise red flags politically. But you could just change it, or you could just not enforce that part about presidential audits.” ...

Trump is taking office at a time when the IRS has already been weathering accusations that its audits are politically motivated.

The IRS admitted to using “Be On the Lookout” lists to target political groups seeking tax-exempt status in May 2013, after an inspector general audit found the agency was using “inappropriate criteria” to flag “Tea Party and other organizations…based upon their names or policy positions.” No evidence was ever uncovered the White House had anything to do with scandal, but some conservatives argue President Obama in effect sent a dog whistle audit plea by publicly criticizing political social welfare groups, prodding former IRS official Lois Lerner to take it upon herself to act.

Koskinen himself says that the tea party controversy, which he was brought in to clean up, should illustrate the importance of a nonpolitical, independent IRS.

“It’s reemphasized the importance of making sure that there isn’t a question about the IRS being political,” Koskinen maintained.

For the most part, the IRS has gotten pretty good at shrugging off political pressures, tax lawyers said.

“It is not at all uncommon for people to clamor for IRS or DOJ activity or criminal investigation, and the IRS kind of takes the position that they ignore that political pressure. I have not heard of any instance since 1973 of anyone at the White House calling anyone at the IRS to ask for an audit or put pressure on a taxpayer,” [Chris Rizek, who served in the Treasury Department’s Office of Legislative Counsel under former president Clinton] said. “Because if that got out it would be a pretty outrageous news story.”

Continue reading

November 24, 2016 in IRS News, IRS Scandal, Tax | Permalink | Comments (3)

Wednesday, November 23, 2016

Will Trump Treat The Presidency As A Part-Time Job For Tax Purposes?

White House LogoWashington Post: Will Trump Claim That Being President Is a Part-Time Job — For Tax Purposes?, by Allan Sloan:

Can you imagine anyone saying that being president of the United States is only a part-time job? Well, Donald Trump might have an incentive to say just that.

That sounds bizarre. But I think it’s within the realm of possibility for Trump to claim in future years that things such as living in Trump Tower rather than the White House and mentioning his properties at every opportunity are promotional activities. If he can show that he spends more than half his time developing, managing and promoting real estate, it could shelter millions of dollars of his non-real-estate income from federal income tax.

I’m not saying that Trump plans to play this particular tax game. But given that he won’t disclose his tax returns, as presidents and presidential candidates have done for decades — and given how aggressive he’s been about cutting his personal tax bill — it doesn’t seem so far-fetched. ...

Continue reading

November 23, 2016 in Political News, Tax | Permalink | Comments (2)

Shearman & Sterling Joins Growing BigLaw Trend In De-Equitizing Partners: 'Shearminations'

ShearmanNew York Times: Law Firms, Struggling Financially, Cull Partner Ranks, by Elizabeth Olson:

Wrestling with a difficult market, some big law firms are demoting partners — meaning they are no longer owners in the firm who share in annual profits.

The latest to publicly weigh such a step is Shearman & Sterling, a powerhouse New York firm that indicated recently that it would revamp itself, primarily through demotions and delays in promotions to full partnership status.

Demoting, or even cutting, partners is not new in the legal industry. A decade ago, the efforts at Shearman & Sterling to jettison unproductive partners were called “Shearminations.” But it is a tool the legal industry once wielded sparingly.

“It’s back now because there is a growing recognition that demand for legal services is not picking up and firms are facing overcapacity issues,” said Peter Zeughauser, a law firm consultant.

Some firms have been quietly weeding their partner ranks as a result. In a process called de-equitizing, law firms set retirement dates for certain equity partners or reduce them to salaried status, cutting them out of the yearly profit distribution. ...

Continue reading

November 23, 2016 in Legal Education | Permalink | Comments (0)

Concord Law School Seeks Permission For Its Graduates To Take The Bar Exam In States Other Than California

Concord Logo (2016)ABA Journal, For-Profit Concord School of Law Seeks More State Bar Exam Opportunities For its Grads:

The Concord Law School of Kaplan University, which offers online courses, in the past month has filed petitions in Arizona, New Mexico and Connecticut, asking the states to change existing rules that restrict its graduates from taking bar exams.

California is currently the only state that allows Concord graduates to sit for its state bar exam as first-time test takers, says Martin Pritikin, the for-profit law school’s dean and vice president. He expects to file more petitions on other states.

Continue reading

November 23, 2016 in Legal Education | Permalink | Comments (0)

Kaplan:  The Cadillac Tax And Its Potential To Transform How Americans Purchase Health Care Services

Richard Kaplan (Illinois), The Cadillac Tax and Its Potential to Transform How Americans Purchase Health Care Services, 2016 NYU Rev. Em. Ben. & Exec. Comp.:

This Article examines one of the most contentious provisions of the Affordable Care Act — namely, the 40% excise tax on high-value health insurance provided by employers. This levy, commonly denominated the “Cadillac” tax, is scheduled to take effect in 2020 but has already induced many employers to raise annual deductibles on the health insurance they provide to reduce the value of such insurance and thereby lower their exposure to this new tax.

Continue reading

November 23, 2016 in Scholarship, Tax | Permalink | Comments (0)

Law School Student Debt Rankings

2017 U.S. News LogoJD Journal, Law School Debt Rankings — Law Schools with the Highest Debt:

U.S. News and World Report analyzed the indebtedness of law school graduates in 2015, and they discovered a huge gap between the school with the highest student debt, Thomas Jefferson School of Law, and the least, University of Hawaii-Manoa. To no one’s surprise, the majority of graduates had student loan debt, but what was shocking about this list was that even the non-top ranked schools came with a heavy price tag for students.

Here are the ten law schools with the highest student debt, and the ten law schools with the lowest student debt:

Top 10

Continue reading

November 23, 2016 in Law School Rankings, Legal Education | Permalink | Comments (6)

Trump Foundation Form 990-PF Admits To Violating Ban On ‘Self-Dealing’

WSJ:  Many Deans Resist Law School Accreditors Raising The Bar—'Nobody Looks At Job Outcomes Of PhDs, MBAs'

WSJWall Street Journal, Law School Accreditors Raising the Bar:

With the percentage of fledgling lawyers failing state licensing exams on the rise, national accreditors are getting tough and telling law schools to better prepare students for legal practice or risk losing their accreditation.

The American Bar Association, which oversees the nation’s more than 200 accredited law schools, is working on a new rule that would require 75% of a law school’s graduates sitting for a bar exam to pass it within two years.

The proposal, which recently cleared a key administrative hurdle and could be implemented early next year, is rankling some law schools that say it will unfairly hurt those institutions with a mission of increasing access to legal education to a more diverse array of students.

Others say a national standard makes little sense when some states, such as California and New York, have notoriously more difficult bar exams than others.

“Nobody looks at what percentage of Ph.D.s end up as college professors, or what percentage of M.B.A.s achieve their goal,” said Gilbert Holmes, the dean of University of La Verne College of Law in California, who opposes the rule.

Continue reading

November 23, 2016 in Legal Education | Permalink | Comments (8)

The IRS Scandal, Day 1294: House Republicans Will Try To Oust IRS Commissioner Koskinen This Month

IRS Logo 2Washington Examiner, Conservatives Will Try to Oust IRS Chief This Month:

Rep. Tim Huelskamp will call for a post-election vote to impeach IRS Commissioner John Koskinen when Congress returns from Thanksgiving recess, he told the Washington Examiner.

Huelskamp, R-Kan., said he has no plans to drop his effort to oust Koskinen, whose term does not expire until November 2017. "We need to clean house, especially at the IRS," Huelskamp said.

Huelskamp said Koskinen could pre-empt a vote by announcing he will retire when Republican President-elect Trump takes office in January. "But barring that, I anticipate that two weeks from now we will introduce that resolution," Huelskamp said.

Continue reading

November 23, 2016 in IRS News, IRS Scandal, Tax | Permalink | Comments (9)

Tuesday, November 22, 2016

July 2016 California Bar Exam Carnage

The California State Bar has released the results from the July 2016 bar exam.  The overall pass rate was 43%, the lowest in 32 years.  For California ABA-accredited law schools, the pass rate fell 6.2 percentage points from 2015, to 62%, down 21 percentage points from 2008. 

California Bar

Continue reading

November 22, 2016 in Legal Education | Permalink | Comments (10)