Friday, August 10, 2018
FROM THE CHAIR
A Time to Reflect
By Karen L. Hawkins (Hawkins Law, Yachats, OR)
A year serving as Chair of this Section seemed like a long time in August of 2017. Now as I approach August of 2018, I feel there is so much I won’t have time to finish (or start). That’s why succession is so important. Building on the positive legacies of those who came before you ensures those coming behind you will do the same.
FROM THE CHAIR-ELECT
The Coming Year
By Eric Solomon (Ernst & Young, Washington, D.C.)
It is an honor for me to be the next Chair of the Tax Section, and a privilege to have the opportunity to serve our members, the tax community, and the public.
PEOPLE IN TAX
Interview with Steve Rosenthal
By Thomas D. Greenaway (KPMG, Boston, MA)
Steven M. Rosenthal is a long-time participant in the Washington D.C. tax community in both public and private roles. He is currently a senior fellow in the Urban-Brookings Tax Policy Center where his research and writing focuses primarily on business tax issues.
Farewell Physical Presence: Was the U.S. Supreme Court’s Decision Way Off, or Way . . . Fair?
By Jennifer Weidler Karpchuk (Chamberlain Hrdlicka, Philadelphia, PA)
Must a taxpayer have physical presence to be subjected to sales tax collection obligations in a state, or is such a requirement antiquated and unrepresentative of the virtual world in which we live? That is the issue the U.S. Supreme Court grappled with in South Dakota v. Wayfair.
AT COURT IN BRIEF
U.S. Tax Court’s Opinion Reversed in Altera by Ninth Circuit Court of Appeals
On July 24, the Ninth Circuit Court of Appeals, in Altera Corp. v. Comm’r, reversed the Tax Court’s Altera ruling that the Treasury’s section 482 transfer-pricing regulations on cost-sharing arrangements was “arbitrary and capricious” under the Administrative Procedure Act.
How the Byrd Rule Might Have Killed the 2017 Tax Bill . . . and Why It Didn’t
By George K. Yin (Edwin S. Cohen Distinguished Professor of Law and Taxation, University of Virginia)
During debate on the 2017 tax bill that was once slated to become the “Tax Cuts and Jobs Act,” the number of stories referencing an arcane budget law known as the “Byrd rule” skyrocketed in publications. This article briefly describes a much more important and little-known aspect of this little-known rule that might have—and perhaps should have—killed the bill altogether.
Executive Compensation for Tax-Exempt Entities After Tax Reform
By Katila Howard (Foster Swift Collins & Smith, Lansing, MI)
While the 2017 tax legislation did not produce all of the changes some had predicted, new rules governing excessive compensation for tax-exempt entities will substantially alter the landscape of executive compensation. Deferred compensation and other executive compensation arrangements for tax-exempt entities differ from those established for taxable for-profit entities.
Section 1202: A Big Deal for Small Business
By Matthew E. Rappaport (Falcon Rappaport & Berkman, New York, NY) & Caryn I. Friedman (Ernst & Young, Washington, D.C.)
Section 1202 was enacted in 1993 as an incentive for taxpayers to start and invest in certain small businesses. Currently, the statute provides an exclusion from income for any gain from the sale or exchange of “qualified small business stock” (QSBS) acquired after the effective date of the statute and held for more than five years.
Wives Need Their Own Lawyers When their Husbands are Accused of Tax Evasion and Other White-Collar Crimes
By Guinevere Moore & Jenny Johnson Ware (Johnson Moore, Chicago, IL)
The Sixth Amendment guarantees the right to conflict-free counsel in a criminal case. In addition to the obvious question of whether an attorney can represent co-defendants in a white-collar criminal case, there is the less obvious question of whether the attorney owes a professional duty to non-clients: the criminal defendant’s spouse and children.
PRO BONO MATTERS
#CriptheCode to Enable Work
By Francine J. Lipman (William S. Boyd School of Law, UNLV) & James E. Williamson (Fowler College of Business, San Diego State University)
Helen Keller would be deeply disappointed to learn that blind individuals in the United States continue to suffer “unaided peculiar expenses,” sky-high unemployment rates and workplace discrimination. The high rates of under and unemployment and lack of livable incomes are due, among other reasons, to the fact that current opportunities for education and employment demand access to technology.
YOUNG LAWYERS CORNER
Save the Date: 18th Annual Law Student Tax Challenge (2018-2019)
An alternative to traditional moot court competitions, the Law Student Tax Challenge asks two-person teams of students to solve a cutting-edge and complex business problem that might arise in everyday tax practice.
You’ll Never Pay Too Much
By Robert S. Steinberg (Law Offices of Robert S. Steinberg, Palmetto Bay, FL)
To tune of, “You’ll Never Walk Alone,” by Richard Rodgers and Oscar Hammerstein II, from the 1945 Broadway musical show Carousel.
NEWS & ANNOUNCEMENTS
Government Submissions Boxscore
Government submissions are a key component of the Section's government relations activities. The full archive is available to the public on our website.
2018-2019 John S. Nolan Fellowships
Named for the late Jack Nolan, a dedicated and respected Tax Section member, the Nolan Fellow distinction is awarded to young lawyers who are actively involved in the Section and have shown leadership qualities.
Accepting Applications for the 2019-2021 Christine A. Brunswick Public Service Fellowship
The American Bar Association Section of Taxation is pleased to announce that it is now accepting applications for its Christine A. Brunswick Public Service Fellowship program class of 2019-2021.