TaxProf Blog

ABA Tax Section Submits Comments on § 355(d) Regs

The ABA Tax Section has submitted comments on § 355(d) to the IRS:

In these Comments, we identify certain specific areas in which the regulations do not adequately address inconsistencies between the mechanical rules and the purposes underlying § 355(d), and we request new guidance to eliminate these inconsistencies.

ABA Tax Section Submits Comments on 2011-12 Guidance Priority List

The ABA Tax Section has submitted this 18-page comment letter to the IRS with recommendations for the IRS's 2011-2012 Guidance Priority List:

As requested in Notice 2011-39, the ABA Section of Taxation has identified the following tax issues that we recommend be addressed through Regulations, rulings or other published guidance in 2011-2012. In each case, the name and contact information for a representative of the committee making the suggestion are provided.

ABA Tax Section Submits Comments on Final Circular 230 Regs

The ABA Tax Section has submitted this comment letter to the IRS on the final Circular 230 regulations:

The final Regulations included significant changes with regard to which there was no opportunity to comment. We believe that some of the changes may have unintended negative consequences. Specifically, the removal of references to the Office of Professional Responsibility (“OPR”) is of concern.

ABA Tax Section Chair Challenges Congress: Put Tax Lawyers Out of Business

Amy S. Elliott, ABA Tax Section Chair Challenges Congress to Put Tax Lawyers Out of Business, 2011 TNT 112-8 (June 10, 2011):

The chair of the ABA Section of Taxation, unfazed by the prospect of losing 22% of the section's membership -- which occurred after the enactment of the Tax Reform Act of 1986 -- said June 9 that the tax code is in desperate need of another overhaul.

"The goal that Congress ought to have is to put as many of us out of business as possible. Now I say that with full confidence that it's not going to happen," said Charles H. Egerton. Although Congress may stop short of completely restructuring the code, he said, "we'll have to reinvent ourselves. That's a price we need to be willing to pay."

All Tax Analysts content is available through the LexisNexis® services.

ABA Tax Section Publishes Spring 2011 Issue of News Quarterly

The ABA Tax Section has published 30 News Quarterly No. 3 (Spring 2011):

• Tax Link Live: What If Uncle Jim Is Undr Audit or Your Client Wants to Give You a Porsche? Ethical Issues When There Is a Personal Connection with a Client, by Lance E. Rothenberg (Hodgson & Ross, New York, NY), pp. 1, 24-25
• Section Meeting Calendar, p. 2
• From the Chair, by Charles H. Egerton (Dean, Mead, Egerton, Bloodworth, Capouano & Bozarth, Orlando), pp. 3, 26
• Report of the Nominating Committee, p. 4
• Letter to the Editor, p. 4
• Interview with Grover Norquist, by  Jasper L. Cummings, Jr. (Alston & Bird, Washington, D.C.) & Alan J.J. Swirski (Skadden, Washington, D.C.), pp. 5-10
• Points to Remember: Do Treasury and the Service have to Explain Their Choices?, by Steve R. Johnson (UNLV), pp. 11-13
• Points to Remember: The Service Traces Clearer Definitions in the Proposed Regulations on “Publicly Traded” Debt Instruments, by A.J. Picchione (KPMG, Boston, MA), pp. 13-15 
• Points to Remember: Is Your Client Planning to Expatriate? Why the HEART Act May Cause a Change of Heart, by Vlad Frants (J.D. & M.S.T., New York Law School), pp. 15-16 
• Points to Remember: Mayo v. United States: Treasury Earns Chevron Deference, by Matthew R. Sontag (KPMG, Houston, TX), pp. 17-18
• Opinion Point: The Time for Tax Reform Is Now, by Chris Pietruszkiewicz (LSU), pp. 19-21
• Government Submissions Boxscore, p. 21
• Pro Bono Matters: "Be the Change You Want to See in the World", by Francine J. Lipman (Chapman), pp. 22-23
• 2010 Member Survey Results, pp. 27-28
• Tax Bites: Tax: That Three Letter Hour Letter Word, p. 28
• CLE Calendar, p. 29
• Government Submissions Boxscore, p. 30

Jerry Cohen Receives ABA Tax Section Distinguished Service Award

N. Jerold Cohen (Sutherland Asbill & Brennan, Atlanta), former IRS Chief Counsel (1979-81), received the 2011 Distinguished Service Award from the ABA Tax Section today at the conclusion of its annual May Meeting in Washington, D.C. From the press release:

“Jerry Cohen is an outstanding and committed tax lawyer,” said Charles Egerton, chair of the Section of Taxation.  “His work in the tax profession and his public service to the tax system and to the broader community is an inspiration to all.  Jerry has achieved the highest levels of success in the profession, and respect among his peers. He continues to work toward improving the legal system and to mentor and inspire young lawyers.”

Prior winners:

• 2010              Ronald A. Pearlman
• 2009              Irwin L. Treiger
• 2008              M. Carr Ferguson, Jr. (Acceptance Remarks)
• 2007              Loretta Collins
• 2006              Martin D. Ginsburg (Acceptance Remarks)
• 2005              Jere D. McGaffey
• 2004              K. Martin Worthy
• 2003              M. Bernard Aidinoff
• 2002              James P. Holden
• 2001              Sherwin P. Simmons
• 2000              Frederick G. Corneel
• 1999              Boris Kostelanetz
• 1998              Judge Theodore Tannenwald
• 1997              Edwin S. Cohen
• 1996              Randolph W. Thrower
• 1995              John S. Nolan

ABA Tax Section May Meeting

The ABA Tax Section May meeting concludes today in Washington, D.C. The full program is here; Tax Profs with speaking roles today include:

• Foreign Lawyers Forum: Exploring the Terrain of Territorial Exemption Systems -- Stephen Shay (Harvard)
• Low Income Taxpayers: Opening Remarks by the Chair: Kathryn Sedo (Minnesota)
• Low Income Taxpayers: What's Next? -- Kristin Hickman (Minnesota), Kathryn Sedo (Minnesota), Carlton Smith (Cardozo)
• Pro Bono: Update on Projects -- Francine Lipman (Chapman)
• Pro Bono: Role of the National Taxpayer Advocate -- Leslie Book (Vilanova), Bryan Camp (Texas Tech)
• Sales, Exchanges & Basis: Non-§ 1031 Current Developments -- Erik Jensen (Case Western)
• Sales, Exchanges & Basis: Section 1031 Developments -- Brad Borden (Brooklyn)

ABA Tax Section May Meeting

The ABA Tax Section May meeting continues today in Washington, D.C. The full program is here; Tax Profs with speaking roles today include:

• Banking and Savings Institutions, Financial Transactions, Insurance Companies, Investment Management and Tax Exempt Financing Committees Luncheon --Richard Harvey (Villanova)
• Bankruptcy & Workouts: IRS Expense Standards -- Kristin Hickman (Minnesota)
• Court Procedure & Practice: Common Evidentiary Issues In Tax Cases -- Joni Larson (Thomas Cooley)
• Employee Benefits Distributions Update -- Kathryn Kennedy (John Marshall)
• Financial Transactions: Upfront Payments: Cash Without Taxation? -- Dana Trier (Miami)
• Individual and Family Taxation: Divorce Taxation -- Patricia Cain (Santa Clara), David Rice (Pomona)
• Individual and Family Taxation: Tax Simplification: Individuals and Families -- Adam Chodorow (Arizona State), Martin McMahon (Florida)
• Partnerships & LLCs: To Book-Up, or Not to Book-Up, That is the Question -- Howard Abrams (Emory)
• Standards of Tax Practice: Ethical Implications of DOJ Decision Not to Enforce the “Defense of Marriage Act” -- Linda Beale (Wayne State)
• Standards of Tax Practice: Resolved: That the Standards for Tax Return Positions of Circular 230 Section 10.34 Should Conform in All Respects to the Standards Prescribed by § 6694 -- Linda Beale (Wayne State)
• Task Force on Patenting Tax Strategies -- Ellen Aprill (Loyola-L.A.) (Co-Chair)
• Tax Policy and Simplification: Opening Remarks by Chair -- Reuven Avi-Yonah (Michigan)
• Tax Policy and Simplification: Tax Reform and Deficit Reduction: Proposals, Implementation, and Policy Considerations, Part I (Administrative and Legislative Perspectives) -- John Buckley (Georgetown), Jonathan Forman (Oklahoma)
• Tax Policy and Simplification: Tax Reform and Deficit Reduction: Proposals, Implementation, and Policy Considerations, Part II (Policy Commentary) -- Mona Hymel (Arizona), David Cay Johnston (Syracuse), Martin McMahon (Florida)
• Teaching Taxation: Opening Remarks by the Chair -- Tracy Kaye (Seton Hall)
• Young Lawyers Forum & Diversity; The Defense of Marriage Act (DOMA) and the Internal Revenue Code -- Patricia Cain (Santa Clara)

ABA Tax Section Publishes Winter 2011 Issue of News Quarterly

The ABA Tax Section has published 30 News Quarterly No. 2 (Winter 2011):

• Points to Remember: What Is the Value of a “Should” Opinion?, by Kathryn Morrison Sneade (Miller & Chevalier, Washington, D.C.), pp. 1, 15
• Section Meeting Calendar, p. 2
• From the Chair: A Renewed Call for Tax Simplification, by Charles H. Egerton (Dean, Mead, Egerton, Bloodworth, Capouano & Bozarth, Orlando), p. 3
• Interview with Dan Rostenkowski, by  Jasper L. Cummings, Jr. (Alston & Bird, Washington, D.C.) & Alan J.J. Swirski (Skadden, Washington, D.C.), pp. 4-7
• Special Report: Update on Employee Benefits and Retirement Plans:
• Employee Benefit Plans: Recent Developments, by David Pratt (Albany), pp. 8-10
• Some Immediate and Long-Term Advantages of a Roth IRA Conversion, by William K.S. Wang (UC-Hastings), pp. 10-12
• In-Plan Roth Conversions, by Scott D. McMillen (Ernst & Young, Cleveland), pp. 12-14
• Points to Remember: Just A Matter of Fairness -- Tax Consequences of the Service’s Revised Community Property Treatment of California Registered Domestic Partners (RDPs), by Francine J. Lipman Chapman) & Rebecca J. Kipper (Chapman), pp. 16-18
• Government Submissions Boxscore, p. 18
• Book Review: Why Every Lawyer Needs the New Edition of Employee vs. Independent Contractor Guidebook, by Jonathan R. Flora (Schnader, Harrison, Segal & Lewis, Philadelphia) (reviewing Legal Guide to Independent Contractor Status (5th ed. 2010) by Robert W. Wood), pp. 18-19
• 10th Annual Law Student Tax Challenge, pp. 19-20
• Tax Bites: Tax Bites Takes Another Law School Exam, p. 21
• CLE Calendar, p. 24

ABA Tax Section May Meeting

The ABA Tax Section May meeting kicks off today in Washington, D.C. The full program is here; Tax Profs with speaking roles today include:

• Low Income Taxpayers Representation Workshop: Communicating by Mail with the IRS -- Keith Fogg (Villanova)
• Low Income Taxpayers Representation Workshop: Face to Face Meetings in Audits and Appeals, including CDP Hearings -- Diana Leyden (UConn), Kathryn Sedo (Minnesota)
• Low Income Taxpayers Representation Workshop: IRS E-Services -- George Willis (Chapman)

Francine Lipman (Chapman) is spearheading an effort on behalf of the Pro Bono Committee to have ABA Tax Section members work with local organizations today in providing free tax assistance to D.C. area residents. For more details or to volunteer, email Francine.

ABA Tax Section Submits Comment Letters

The ABA Tax Section has submitted these comment letters:

• Proposed Regs on Domestic Series Organization Series (Apr. 29, 2011)
• Interim Final Rules for Group Health Plans and Health Insurance Coverage Relating to Status as Grandfathered Plan (Mar. 22, 2011)
• IRS Funding (Mar. 16, 2011)
• The Foreign Account Tax Compliance Act Offset Provisions Relating to Beneficiaries of Trusts (Feb. 14, 2011)
• Draft Form 8939, Allocation of Increases in Basis for Property Acquired From a Decedent (Jan. 31, 2011)

A Practitioner's Guide to Innocent Spouse Relief

The ABA has published A Practitioner's Guide to Innocent Spouse Relief, by Robert B. Nadler (Tennessee taxpayer Project):

Thousands of Innocent Spouse claims are filed each year -- this comprehensive and concisely written guide provides you with the framework for representing your client successfully. In straightforward language, the Guide takes you step-by-step through the Innocent Spouse claim process, from information gathering, to administrative proceedings, to determination, to trial, and to refund relief. Learn:

• How to advise clients going through a divorce on whether to file a joint or a separate return.
• How to represent the client who did not meet his or her "duty to inquire" when he or she signed the return.
• When to argue duress and when to argue abuse in innocent spouse cases.
• When the IRS can grant innocent spouse relief even though the tax is attributable to your client's income.
• When it might be in your client's best interests to oppose the IRS granting relief.
• When it is possible to file a claim for innocent spouse relief after the two-year limitations period has expired.
• How to use discovery to identify which equitable relief factors are in dispute.
• When to file a motion to shift the burden of proof to the IRS.
• How to recover reasonable costs and attorney fees in innocent spouse cases.
• When and how to recover refunds in innocent spouse controversies.

Table of Contents, Foreword

The Tax Lawyer Publishes New Issue

The Tax Lawyer has published Vol. 64, No. 1 (Fall 2010):

• Willard B. Taylor (Sullivan & Cromwell, New York), “Blockers,” “Stoppers,” and the Entity Classification Rules, 64 Tax Law. 1 (2010)
• Deborah L. Paul (Wachtell, Lipton, Rosen & Katz, New York), The Taxation of Distressed Debt Investments: Taking Stock, 64 Tax Law. 37 (2010)
• Shin-yi Peng (National Tsing Hua University, Taiwan), Taxing Innovation?—The Evolving Coverage of the Information Technology Agreement, 64 Tax Law. 79 (2010)
• Gregg D. Polsky (North Carolina), Deterring Tax-Driven Partnership Allocations, 64 Tax Law. 97(2010)
• Michael Louis Minns (Minns Law Firm, Houston, TX), Cross-Examination of the Government’s Witnesses in a Criminal Tax Defense Case, 64 Tax Law. 125 (2010)
• Sarah Grandfield (J.D. 2011, Georgetown), Comment, A Foolish Inconsistency? The Differential Treatment of Recurring Obligations in Treasury Regulation Sections 20.2053-1 and 20.2053-4, 64 Tax Law. 161 (2010)
• Mhairi Collins (J.D. 2011, Georgetown), Note, Right Answer, Wrong Questions: Rethinking Private Letter Ruling 2008-22-041 and Its Implications for Supporting Organizations Seeking Excess Business Holdings Exemptions, 64 Tax Law. 175 (2010)
• Edward B. Dix (J.D. 2011, Georgetown), Note, From General to Specific: The Arm’s-Length Standard’s Evolution and Its Relevancy in Determining Costs to Be Shared in Cost-Sharing Agreements, 64 Tax Law. 197 (2010)
• Jennifer Rothschild (J.D. 2011, Georgetown), Note, Pitt County v. Hotels.com: The Dormant Commerce Clause and State Taxation of Online Travel Companies, 64 Tax Law. 223 (2010)

ABA Tax Section Awards Two Public Service Tax Fellowships

The ABA Tax Section yesterday announced the winners of its two Public Service Tax Fellowships:

Anna Tavis, scheduled to earn her J.D. from the Boston College Law School in May 2011. After graduating, Tavis will be working on tax-related matters at the South Brooklyn Legal Services in Brooklyn, N.Y. ... Anna Tavis will work with the Immigrant Workers’ Tax Advocacy Project to provide community education, outreach and representation to low-income immigrants in Brooklyn. Anna’s project will focus on Russian- and Spanish-speaking workers who encounter barriers to obtaining tax credits, and who are involved in controversies with the IRS. Anna is fluent in both Russian and Spanish. ...

Sean Norton, currently a lawyer in private practice in Jenkintown, Pa. Norton will be returning to his native state of Maine to work with Pine Tree Legal Assistance, Inc. ... to expand federal tax assistance in Maine and to implement an outreach program that will increase the organization’s panel of volunteer tax lawyers and allow the organization to offer services to the mentally ill. ...

The Public Service Fellowships were developed in 2008 to address the need for tax legal assistance, and to foster an interest in tax-related public service among those individuals who participate. The fellowships provide funding for the Fellows’ salaries and benefits, as well as law school debt assistance, by means of charitable contributions to the sponsoring organizations. All applications were reviewed and the successful applicants selected by the Tax Section’s Public Service Fellowship Committee. The section plans to award as many as two fellowships each year.

ABA Submits Comments on Tax Court's Proposed Rules Changes

The ABA Tax Section has submitted a comment letter to the Tax Court on its proposed amendments to its rules:

The Section commends the Court on the proposed amendments to its Rules and endorses the Court’s efforts to provide clarity with regard to its procedures and promote efficiency in case administration and resolution. The amendments proposed on December 20, 2010, include modifications and clarifications of several of the Court’s discovery rules, timing and filing rules, and the rules regarding alternative dispute resolution. We believe that these proposed amendments further the Court’s efforts in achieving expeditious and balanced review of tax disputes, while taking into account the varying nature of the taxpayers that appear before the Court and the types and sizes of cases that the Court hears. The following comments summarily reflect the Section’s understanding of how the new provisions work, why they are necessary, and/or the problems they seek to address, as well as issues and suggestions that may assist the Court in refining the proposed amendments.

ABA Division Adopts 'Truth in Legal Education' Resolution

National Law Journal, ABA Division Adopts Resolution for Truth in Law School Education:

The Young Lawyers Division of the ABA has joined the chorus of voices calling for more accurate job data for would-be law students.

The division on Saturday adopted the Truth in Law School Education resolution: a six-point resolution urging law schools to beef up the availability and accuracy of information on the cost of legal education and the job and salaries of graduates. ... For instance, the resolution urges law schools to stipulate on their websites and acceptance notices what percentage of graduates are in full-time, part-time and temporary positions. It also calls for schools to provide median salary statistics for different types of employment rather than provide a single median covering both private law firms jobs and other jobs such as public interest -- a statistic that can be misleading to prospective law students since law firm jobs typically pay more than public interest jobs. Additionally, the resolution calls on law schools to report the "actual" cost of legal education by disclosing the per-credit costs, and average cost of living expenses.

The resolution goes beyond simply asking law schools to comply, however. The final two provisions urge the ABA's Section on Legal Education and Admissions to the Bar to consider requiring law schools to comply with these conditions and have its questionnaire committee include more detailed job information on the survey each ABA-approved law school must fill out every year. ...

The ABA's questionnaire committee, which devises the annual survey each accredited law school must complete, is in the process of overhauling the questionnaire. "What we'd like to see is that the information we gather deals with jobs in individual categories," said chairman Art Gaudio, dean of Western New England College School of Law. "Job information would be school specific. For instance, you could look up the median income for graduates in a specific state working at law firms of 2 to 10 lawyers." ...

Similarly, the ABA committee charged with revising accreditation standards is also looking into the accuracy and transparency of cost and employment data. "This resolution is largely consistent with the direction the Standards Review Committee is taking," said member David Yellen, dean of Loyola University Chicago School of Law. "So although I don't know whether or how schools will respond to the resolution, I believe that fairly soon most of this data will be required to be disclosed, assuming the [council of the Section on Legal Education] adopts the [committee's] proposal."

ABA Tax Section Submits Comment Letters

The ABA Tax Section has submitted these comment letters:

• Permission For Late Filing (Jan 20, 2011)
• Requirements For Tax- Exempt Hospitals (Jan. 20, 2011)
• Codification of Economic Substance (Jan. 18, 2011)
• Grandfathering Rules In The HIRE Act (Jan. 10, 2011)
• Bond-Financed Grants (Jan. 5, 2011)
• PBGC Proposed Rule on Reportable Events (Dec. 22, 2010)
• Circular 230 (Dec. 7, 2010)
• The Effective Date of § 909 (Nov. 15, 2010)

ABA Tax Section Hosts Webcast Today With Lindy Paull, Eric Solomon

The ABA Tax Section offers a teleconference and webcast today on Legislative and Tax Policy Discussion with Lindy Paull and Eric Solomon from 1:00 - 2:30 p.m. EST:

Please join Lindy Paull, former Chief of Staff of the Joint Committee on Taxation, and Eric Solomon, former Assistant Secretary for Tax Policy, as they discuss the latest legislative and tax policy developments over the past year and offer their thoughts and insights on the upcoming tax policy debate, including the possibility of fundamental tax reform. This discussion will not only look back to 2010. Even more it will look forward to the tax policy agenda for 2011. The discussion will include the tax legislative agenda for 2011, including issues around tax reform generally and business tax reform in particular.

Samford, Northwestern Win 2010 ABA Law Student Tax Challenge

The ABA Tax Section has released the list of winners of the 2010 Law Student Tax Challenge:

The contest features J.D. and LL.M. divisions, both of which compete in two person teams that research the tax issues involved, and then submit technical memoranda and client letters with their solutions. The teams’ written submissions are judged by tax practitioners from across the country; the teams with the best written submissions are chosen to present their tax planning strategies before the competition judges at the section’s Midyear Meeting in Boca Raton, Florida.

“We were pleased this year to have a record number of entries,” said Charles H. Egerton, chair, ABA Section of Taxation. “Ninety-five J.D. teams and 31 LL.M. teams, from 55 law schools, submitted their solutions to a challenging, complex tax planning problem that involved individual and business entity issues.”  

J.D. Division:

• 1st Place:  Samford -- Wes Hill & Sims Rhyne III (Brannon Denning, faculty coach)
• 2nd Place:  Cleveland State -- Caryn Gross & Michael Tangry (Deborah Geier, faculty coach)
• 3rd Place:  William & Mary -- Peter Farrell & Jonathan Puvak (William Richardson, faculty coach)
• Best Written Submission:  William & Mary -- Peter Farrell & Jonathan Puvak (William Richardson, faculty coach)
• Runner-Up Best Written Submission:  Cleveland State -- Caryn Gross & Michael Tangry (Deborah Geier, faculty coach)
• Semi-finalist #1: Kentucky -- Leah Chalkley & Patrick Kern (Jennifer Bird-Pollan, faculty coach)
• Semi-finalist #2:  Florida -- Ben Friedman & Christopher Mikes (Charlene Luke, faculty coach)
• Semi-finalist #3:  Liberty -- Tim Todd & Melissa Ogden (Philip Manns, faculty coach)

LL.M. Division:

• 1st Place:  Northwestern -- Judson Bryant & John Goodell (Robert Wootton, faculty coach)
• 2nd Place:  Temple -- Travis Wheeler & Jeanmarie Dunn-Kane (Andrea Monroe, faculty coach) 
• Best Written Submission:  Missouri-K.C. -- Nicholas Bracco & Samuel Burnett (Judith Wiseman, faculty coach)
• Finalist #1:  Missouri-K.C. -- Nicholas Bracco & Samuel Burnett (Judith Wiseman, faculty coach)
• Finalist #2:  Denver -- Jennifer Jewkes & Matthew Wiseman (Alicia Buckingham, faculty coach)

ABA Tax Section Hosts Webcast Today on Recent Tax Developments

The ABA Tax Section offers a teleconference and webcast today on Current Developments in Individual, Corporate, and Partnership Taxation from 1:00 - 2:30 p.m. EST:

Please join Professors Martin J. McMahon, Jr. and Ira B. Shepard as they review the most significant statutory enactments, judicial decisions, IRS rulings, and Treasury regulations promulgated during the last twelve months that affect general income taxation, transfer taxation, and tax procedure.

• Martin J. McMahon Jr. (Florida)
• Ira B. Shepard (Houston)

ABA Tax Section Names 2011 Nolan Fellows

The ABA Tax Section today announced the recipients of its 2011 Nolan Fellowships on the final day of its midyear meeting in Boca Raton:

• Chad R. DeGroot (Bryan Cave, St. Louis)
• Stacey Delich-Gould (Cahill Gordon & Reindel, New York)
• Melissa L. Galetto (Skadden, Arps, Slate, Meagher & Flom, Washington, D.C.)
• Vanessa A. Scott (Southerland Asbill & Brennan, Washington, D.C.)
• Lisa M. Stern (Proskauer Rose, New York)
• Mark E. Wilensky (Roberts & Holland, New York)

Named for the late Jack Nolan, the fellowship is awarded to young lawyers who are actively involved in the Section and have shown leadership qualities. Each one-year fellowship includes waived Meeting registration fees and assistance with travel to some Section meetings. For a list of prior winners, see here.

Fulbright & Jaworski Receives Janet Spragens Pro Bono Award

The ABA Tax Section today presented Fulbright & Jaworski with the annual Janet Spragens Pro Bono Award on the final day of its midyear meeting in Boca Raton. From the press release:

The Janet Spragens Pro Bono Award, named after the late American University Law professor who greatly contributed to ensuring representation for low-income taxpayers, is presented each year to an individual lawyer or law firm that has demonstrated outstanding and sustained commitment to pro bono (free) legal services, particularly with respect to federal and state tax law. ...

Fulbright provides support for the U.S. Tax Court Pro Bono Programs in Texas and New York. The program encourages lawyers to offer pro bono consultation services to unrepresented or pro se, taxpayers at calendar calls. Lawyer volunteers mediate disputes between the IRS and Tax Court petitioners. A number of Fulbright & Jaworski’s tax attorneys have participated in the programs sponsored by the State Bar of Texas and the New York County Lawyer’s Association.

For a list of prior winners, see here.

ABA Tax Section Midyear Meeting

The ABA Tax Section midyear meeting concludes today in Boca Raton. The full program is here; Tax Profs with speaking roles today include:

• Low Income Taxpayers -- Leslie Book (Villanova), Kathryn J. Sedo (Minnesota), William N. Timm, Jr. (Georgia State)
• Pro Bono: Tax Counseling for the Exploding Population of Elderly -- Francine J. Lipman (Chapman)
• Sales, Exchanges & Basis: Non-§ 1031 Current Developments -- Erik M. Jensen (Case Western)
• Sales, Exchanges & Basis: § 1031 Current Developments -- Bradley T. Borden (Brooklyn)
• Section Program: Current Developments in Individual, Corporate, Partnership and Estate & Gift Taxation -- Elaine Hightower Gagliardi (Montana), Martin J. McMahon, Jr. (Florida), Ira B. Shepard (Houston), Daniel L. Simmons (UC-Davis)
• Tax Policy & Simplification: Options for Corporate Tax Reform in 2011 -- Rosanne Altshuler (Rutgers), Reuven Avi-Yonah (Michigan), Michael Graetz (Columbia), Edward Kleinbard (USC)
• Tax Policy & Simplification: Coordinating Federal and State Tax Policy --  Brian Galle (Boston College), Roberta Mann (Oregon), John Swain (Arizona)

Photos from last night's Tax Prof dinner:

 
 

ABA Tax Section Midyear Meeting

The ABA Tax Section midyear meeting continues today in Boca Raton. The full program is here; Tax Profs with speaking roles today include:

• Exempt Organization Committee Luncheon -- Frances R. Hill (Miami)
• Foreign Activities of US Taxpayers: Foreign Tax Credit Panel -- Robert J. Peroni (Texas)
• Individual and Family Taxation: Elder Law Taxation -- David Rice (Pomona)
• State & Local Taxes: Current Developments in State & Local Taxation -- Richard D. Pomp (Connecticut)
• Teaching Taxation: Tax Policy Responses to the Current Economic Climate and the Long-Term Fiscal Crisis -- Tracey Kaye (Seton Hall), Edward Kleinbard (USC), Rebecca Kysar (Brooklyn), Daniel N. Shaviro (NYU)
• Young Lawyers Forum & Diversity: To Recognize Or Not to Recognize Gain or Loss on Corporate Formation -- Don Leatherman (Tennessee)

ABA Tax Section Midyear Meeting

The ABA Tax Section midyear meeting kicks off today in Boca Raton. The full program is here; Tax Profs with speaking roles today include:

• Low Income Taxpayers Representation Workshop -- Keith Blair (District of Columbia), Sandy Freund (Rutgers-Newark), Michelle Kwon (Texas Tech), Jan Pierce (Lewis & Clark), Kathryn J. Sedo (Minnesota)

ABA Submits Comments on Codification of Economic Substance Doctrine

The ABA Tax Section yesterday submitted this 65-page comment letter on Notice 2010-62 and Implementation of the Economic Substance Legislation:

In Notice 2010-62, the Treasury and the IRS requested comments on certain aspects of the economic substance legislation contained in the Health Care and Education Reconciliation Act of 2010. These comments, which have been prepared by members of the ABA Section of Taxation and by members of the AICPA,   generally address the need for prompt guidance on the implementation of the statutory provisions, comment on the interim guidance set forth in Notice 2010-62, and make recommendations to promote fair and consistent application of the economic substance legislation. Both of our organizations are separately submitting these comments to Treasury and the Service.

ABA Hosts Webcast Today on Planning Under the New Estate Tax Law

The ABA Real Property, Trust and Estate Law Section offers a teleconference and webcast today on Planning with the TRA 2010 Transfer Tax Rules: The Sun Has Risen from 1:00 - 2:30 p.m. EST:

The dust is settling on the flurry of year-end estate planning activity resulting from the Tax Relief Act of 2010. For the estates of decedents who died in 2010, executors must determine whether to use the default provisions of a $5 million exemption and 35% rate or make the election to have no estate tax and the modified carryover-basis regime. Other clients must determine how to take advantage of the $5 million exemption, reunified gift and estate tax exemptions, and portability that may only be available for two years.

• Jonathan G. Blattmachr (Eagle River Advisors, New York, NY)
• Robert Keebler (Keebler & Associates, Green Bay, WI)
• Martin M. Shenkman (Martin M. Shenkman PC, Tenafly, NY)

ABA Tax Section Hosts Webcast Today on Estate Planning Under the 2010 Act

The ABA Tax Section offers a teleconference and webcast today on Moving Forward (2 Years at a Time) With Estate Planning Under the 2010 Act from 1:00 - 2:30 p.m. EST:

With the wonderland year of 2010 behind us and all last-minute gifts to grandchildren safely protected from GST tax, we can now settle back and enjoy estate planning with certainty in the law – at least for the next two years. This panel will review the estate, gift and GST tax provisions of the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 (the “2010 Act”), with an emphasis on its practical impact on estate planning going forward. Apart from reviewing the 2010 Act and how we arrived where we are, the panel will discuss the planning issues and opportunities with respect to portability of the estate tax exclusion amount, the increased GST tax exemption and gift tax exclusion, and the now familiar sunset provision.

• Ronald D. Aucutt (McGuireWoods, McLean, VA)
• T. Randolph Harris (McLaughlin & Stern, New York, NY)
• David Pratt (Proskauer Rose, Boca Raton, FL)
• Paul E. Van Horn (McLaughlin & Stern, New York, NY) (Moderator)

The Tax Lawyer Publishes New Issue

The Tax Lawyer has published Vol. 63, No. 4 (Summer 2010), The State & Local Tax Edition:

• Richard D. Pomp (Connecticut), The Unfulfilled Promise of the Indian Commerce Clause and State Taxation, 63 Tax Law. 897 (2010)
• Anthony Ciolli (Suffolk), The Power of United States Territories to Tax Interstate and Foreign Commerce: Why the Commerce and Import-Export Clauses Do Not Apply, 63 Tax Law. 1223 (2010)
• Darren Azman (J.D. 2011, Georgetown), Comment, Don’t Tell Mom I Didn’t Pay My Taxes!: The Efficacy of State Shaming Campaigns on Taxpayer Compliance and Ideas for the Future, 63 Tax Law. 1251 (2010)
• Zelda Ferguson (J.D. 2011, Georgetown), Note, Is the Tax Holiday Over for Online Sales?, 63 Tax Law. 1279 (2010)
• Chaim Gordon (J.D. 2011, Georgetown), Note, Protecting Peter When the Legislature Robs Peter to Pay Paul After Empress Casino v. Giannoulias, 63 Tax Law. 1299 (2010)
• Amy Jupin (J.D. 2011, Georgetown), Note, The Resurrection of the Tonnage Clause and the Death of Fair Apportionment in Polar Tankers v. City of Valdez, Alaska, 63 Tax Law. 1319 (2010)

ABA Tax Section Submits Comments on Circular 230

The ABA Tax Section has submitted this comment letter on Circular 230:

Under the proposed amendments to Circular 230 the definition of “Practitioner” is expanded to include a new category of “Registered Tax Return Preparers,” defined by reference to § 7701(a)(3) and Reg. § 301.7701-15. This new category of practitioners is estimated to include 900,000 to 1.2 million individuals.

We concur in the proposed amendments to sections 10.2, 10.3, 10.4, 10.5 and 10.6 of Circular 230 providing jurisdiction to OPR to determine the competency and suitability of a Registered Tax Return Preparer. We believe regulation of tax return preparers by OPR to be an essential and long overdue component of an effective national tax compliance program. We also strongly support an increased enforcement program which will include increased oversight of paid tax preparers. A core of competent and ethical paid preparers must be a part of any strategy to strengthen the integrity of the tax system.

ABA Hosts Webcast Today on Conservation Easement Donations

The ABA Real Property, Trust and Estate Law Section offers a teleconference and webcast today on Pleasing Mother Earth and the IRS: Conservation Easement Donations in the New Age of IRS Oversight Lessons from Recent Court Developments and Practical Drafting Advice from 1:00 - 2:30 p.m. EST:

The IRS has been aggressively auditing taxpayers who have donated conservation easements and claimed federal tax benefits, with a reported 1,459 landowners having been audited during 2005 to 2009. In addition, since 2006, the Tax Court, District Courts, and Circuit Courts have collectively issued fifteen court decisions addressing various issues relating to compliance with the federal tax law requirements applicable to conservation easement donations.

• David J. Dietrich (Dietrich and Associates, Billings, MT)
• Nancy A. McLaughlin (University of Utah SJ Quinney College of Law)

ABA Tax Section Hosts Webcast Today on Planning for Debt Discharge Income

The ABA Tax Section offers a teleconference and webcast today on Planning for Debt Discharge Income and Section 108 Relief: Part II from 1:00 - 2:30 p.m. EST:

Using a unique problem format that continues the discussion from Part I of this presentation, this panel returns to further discuss the tax aspects of the realization of debt discharge for COD income and the planning opportunities available for exclusion or deferral under Section 108. Special emphasis will be placed on real estate and partnership debt workouts and current developments and emerging trends will be identified as well. This teleconference is fully self-contained and so is appropriate for those who joined the first conference as well as for those who missed it.

• Fred T. Witt (Deloitte Tax, Phoenix) (Moderator)
• Howard E. Abrams (Emory)

National Institute on Criminal Tax Fraud

The ABA Tax Section's two-day 27th Annual National Institute on Criminal Tax Fraud kicks off today in San Francisco:

[T]he Institute will offer the most knowledgeable panelists from the defense bar, the government, and the judiciary.  The sessions are regularly attended by judges, federal, state and local prosecutors, other law enforcement officials, defense attorneys, corporate in-house counsel, accountants, and members of the academic community.  The audience includes attorneys and accountants just beginning to practice in the tax fraud area, as well as highly experienced practitioners.  The program will provide valuable updates on new developments and strategies, along with the opportunity to meet colleagues, renew acquaintances and exchange ideas.    

This year the Institute will include a criminal tax roundtable discussion with senior representatives from the IRS and the Department of Justice together with panels focusing on

• the enhancement of the government's enforcement efforts targeting offshore accounts;
• the use of foreign evidence at trial;
• an Ask the Experts panel presentation encompassing the "Top 5" practice tips for the criminal tax practitioner;
• handling the sensitive issue examination and the impact of IRS Fraud Technical Advisors during the civil examination;
• the future, if any, of voluntary disclosures;
• defending the target;
• civil penalty relief  following the criminal prosecution and
• the continuing controversy regarding the application of the federal sentencing guidelines.

In addition, the program will provide an annual general overview of nuts and bolts techniques for responding to a criminal tax fraud investigation.

For a list of the speakers and their topics, see here.

ABA Submits Comments to Congress on Estate and GST Taxes

The ABA Section on Real Property, Trust & Estate Law and ABA Tax Section have submitted a letter to Congress requesting action on pending Estate & Generation-Skipping Transfer Tax legislation:

We urge that Congress, before adjournment, address the limbo that legislative inaction has created for the nation's taxpayers. Specially, we ask Congress to resolve the systemic uncertainties resulting from the one-year suspension of the estate and generation-skipping transfer (“GST”) taxes in 2010 and reinstatement of the 2001 transfer tax laws as of January 1, 2011, under the “sunset” provisions of Section 901 of the 2001 Economic Growth and Tax Relief Reconciliation Act (“EGTRRA”). Our comments reflect our belief that taxpayers should not suffer worse tax consequences due to this one-year limbo than they would have otherwise, under either the pre-2010 or post-2010 law. We are concerned that the current uncertainty regarding application of the estate, gift and GST tax laws has created substantial obstacles for families and business owners trying to plan for the orderly transfer of their assets. Because the uncertainty was created legislatively, we believe its resolution requires legislative action, as it does not appear that the Treasury Department or the IRS would have the authority to resolve all of the numerous issues through rulings, regulations or other issuances.

By this letter, we seek to identify several of the most urgent issues requiring immediate resolution. We do not seek to review the extensive discussion of the numerous technical issues described in the comprehensive report that we submitted on December 7, 2004, as two of the sponsoring organizations of the Report on Reform of Federal Wealth Transfer Taxes. ...

Members of Congress have voiced many different positions about the proper approach to the transfer tax laws during the past several years. We do not take a position on the policy decisions that Congress must make in fashioning these tax laws, but believe that Congress must provide certainty regarding the general structure of the unified estate, gift and GST tax system. Attorneys around the country tell us that many Americans have been paralyzed in their basic estate planning, for fear that the final regime that Congress enacts may result in adverse tax consequences or require a new estate plan.

An initial uncertainty that Congress should address is whether any legislative changes in the transfer tax system will be applied retroactively to events that occurred prior to the enactment of such changes. Given the significant time that has elapsed since the estate and GST tax were suspended on January 1, many of your colleagues have suggested that retroactive estate or GST taxation is no longer feasible. Alternatively, some have suggested that if the estate tax will be imposed retroactively, such taxation might be elective, so that an estate could opt for the estate tax with the normal basis adjustment rules of § 1014 or elect to be subject to the modified carryover basis rules of new § 1022. Although such an election might mitigate the public perception of unfairness and avoid the attendant litigation resulting from retroactive application of the federal estate tax, it would not resolve the myriad technical problems with application of modified carryover basis detailed in the Report.

However Congress chooses to proceed with respect to a retroactive application of estate or GST taxation, there are many technical issues that are important to resolve, the most significant of which are described below.

ABA Tax Section Submits Comment Letters

The ABA Tax Section has submitted these comment letters:

• The Effective Date of § 909 (Nov. 15, 2010)
• Treaty Override Provisions of the Health Bill (Nov. 12, 2010)
• Issue Price Under Reg. § 1.148-1(b) (Nov. 11, 2010)
• Carried Interest Proposals in Senate Amendment 4386 to H.R. 4213 (Nov. 5, 2010)
• The Taxation of Dividend Equivalent Under § 871(l) (Oct. 22, 2010)
• Form 990-PF and Related Instructions (Sept. 28, 2010)
• The Patient Protection and Affordable Care Act (Sept. 15, 2010)
• Capitalization of Tangible Property Expenditures Under § 263(a)  (Aug. 23, 2010)
• Foreign Account Tax Compliance Offset Provisions of the HIRE Act (Aug. 16, 2010)
• Stripping Tax Credits and Notice 2010-28 (Aug. 5, 2010)
• Department of Labor Proposed Regs on Participant Fee Disclosure (Aug. 2, 2010)
• The Heroes Earnings Assistance and Relief Tax Act and Notice 2010-15 (July 30, 2010)

ABA Business Law Section Submits Comments on Form 990

Following up on last week's post, Has the IRS Usurped the Business Judgment of Tax-Exempt Organizations?: the ABA Business Law Section and the Nonprofit Organizations Committee of the Business Law Section of the California State Bar have submitted comments to the IRS Draft Form 990:

[A]s attorneys who work regularly with nonprofit organizations, especially in the areas of entity formation, organization and governance, we are concerned about a number of the provisions dealing with these areas.

(Hat Tip: Patrick Sternal.)

ABA Tax Section Publishes Fall 2010 Issue of News Quarterly

The ABA Tax Section has published 30 News Quarterly No. 1 (Fall 2010):

• Special Report: The Internal Revenue Code: Looking Ahead to 2010
•   Three Once and Future Issues, by Charlene Luke (Florida), pp. 1, 20
•   Wish-List for the Federal Tax System in the Year 2020, by Joseph M. Dodge (Florida State), pp. 20-21
• Section Meeting Calendar, p. 2
• From the Chair (Charles H. Egerton) (Dean, Mead, Egerton, Bloodworth, Capouano & Bozarth, Orlando), p. 3
• Interview with Steven A. Musher (Associate Chief Counsel (International), IRS), by  Jasper L. Cummings, Jr. (Alston & Bird, Washington, D.C.) & Alan J.J. Swirski (Skadden, Washington, D.C.), pp. 4-5
• Points to Remember: Temporary Regulations on NOL Carrybacks for Taxpayers Filing Consolidated Returns, by Andrew Reiter (Washington, D.C.) & Michael G. Lapidus (Washington, D.C.), pp. 6-7 
• Points to Remember: Limitation by Regulation: Heads the Service Wins, Tails the Taxpayer Loses?, by Leandra Lederman (Indiana-Bloomington) & Stephen W. Mazza (Kansas), pp. 7-8
• Special Report: Retirement Planning: From the Last Day at Work Until the Last Day of Life
•   Why Retirement Planning Is Preferable to Death: Taxes, by Alyssa A. DiRusso (Cumberland), pp. 9-10
•   Social Security Spouse and Survivor Benefits 101: Practical Primer Part II, by Francine J. Lipman (Chapman) & James E. Williamson (San Diego State), pp. 10-13
•   401(k) Follies: A Proposal to Reinnvigorate the United States Annuity Market, by Paul M. Secunda (Marquette), pp. 13-15
•   Durable Power of Attorney, Health Care Power of Attorney, and Advance Directives, by Don R. Castleman (Wake Forest), pp. 15-17
•   Tax Bites: Tax Bites Makes Movies for Tax Lawyers, p. 17
• Book Review: The Supreme Court's Federal Tax Jurisprudence (by Jasper L. Cummings, Jr.), pp. 18-19
• CLE Calendar, p. 19
• Government Submissions Boxscore, p. 22.

ABA Tax Section Hosts Webcast Today on The Impact of Schedule UTP

The ABA Tax Section offers a teleconference and webcast today on The Rubber Meets the Road: Understanding the Impact of Schedule UTP from 1:00 - 2:30 p.m. EST:

The IRS has finalized Schedule UTP for the 2010 tax year and set forth procedures for implementation, but there are still lurking questions about the schedule, its requirements, and how the IRS will use the information. Panelists will explore these issues and the policy and practical implications and will discuss what the new Schedule UTP means to you and your clients.

• Cary Pugh (Skadden, Washington, D.C.) (Moderator)
• Kevin Brown (PricewaterhouseCoopers, Washington, D.C.)
• Mike Desmond (Bingham McCutchen, Washington, D.C.)
• Brian Meighan (PricewaterhouseCoopers, Washington, D.C.)

ABA Tax Section Solicits Nominations for Janet Spragens Pro Bono Award

The ABA Tax Section is accepting nominations for the Janet Spragens Pro Bono Award to be presented at the Midyear Meeting in Boca Raton on January 20-22, 2011. The award is given to one or more individuals or law firms that have provided meritorious pro bono service in the representation to low-income taxpayers, based on these criteria:

• Handling a significant number of tax controversies for low-income taxpayers on a pro bono basis over an extended period of time, or intensive involvement over a limited time with significant impact
• Voluntarily forming, operating or participating in organizations, such as low-income taxpayer clinics (LITCs) devoted to representation of low-income taxpayers, particularly if such participation is over an extended period
• Formation, supervision and participation in programs to assist tax controversies, including “attorney of the day” programs for the Tax Court
• Mentoring law students and other individuals who work for LITCs
• Preparation of resource materials for LITCs and other low-income programs
• Providing pro bono legal assistance to tax-exempt organizations, especially those formed to help low-income taxpayers

The deadline for nominations is Monday, November 15, 2010.

ABA Tax Section Hosts Webcast Today on The Implications of Citizens United on Exempt Organizations

The ABA Tax Section offers a teleconference and webcast today on Citizens United -- Implications of Corporate Political Free Speech for the EO Sector from 1:00 - 2:30 p.m. EST:

Earlier this year, in the Citizens United case, the Supreme Court held that corporations (and, by extension, unions) cannot constitutionally be prevented from expressing support for or opposition to candidates. Taken together with lower court decisions in other cases and some recent Federal Election Commission rulings, this marks a dramatic shift in the landscape for federal campaign finance laws.

Reports are already coming in of unprecedented spending by business corporations and labor unions on electoral advocacy, and exempt organizations are at the center of much of the attention. The prior prohibition on corporate spending applied equally to nonprofits, so they are now freed up to engage in political campaign activities as never before. In addition, many businesses shy away from putting their name on expressly political messages, preferring to fund electoral advocacy through § 501(c)(4) social welfare organizations or § 501(c)(6) trade associations.

This panel discussion will provide an overview of the recent campaign finance law changes and tease out the tax implications for nonprofits who may be ramping up their political engagement. Topics covered will include the “primary purpose” test and the effect of additional electoral spending on § 501(c) qualification; uses of separate segregated funds, including the possibility of creating new “super PACs” to make independent expenditures; and how §§ 527(f) and 162(e) may apply to tax some of these activities.

• Rosemary E. Fei (Adler & Colvin, San Francisco) (moderator)
• Greg Colvin (Adler & Colvin, San Francisco)
• Elizabeth J. Kingsley (Harmon Curran Spielberg & Eisenberg, Washington, D.C.)
• Holly Schadler (Lichtman Trister & Ross, Washington, D.C.)

ABA Tax Section Hosts Webcast Today on Planning for Debt Discharge Income and § 108 Relief

The ABA Tax Section offers a teleconference and webcast today on Planning for Debt Discharge Income and § 108 Relief from 1:00 - 2:30 p.m. EST:

Using a unique problem format, this panel will discuss the tax aspects of the realization of debt discharge for COD income and the planning opportunities available for exclusion or deferral under § 108. Special emphasis will be placed on real estate and partnership debt workouts. The current developments and emerging trends will be identified as well.

• Fred T. Witt (Deloitte Tax, Phoenix) (Moderator)
• Howard E. Abrams (Emory)
• John Aramburu (IRS Office of Chief Counsel)

ABA Tax Section Fall Meeting

The three-day fall meeting of the ABA Tax Section kicks off today in Toronto. Tax Profs with speaking roles include:

• Court Procedure & Practice:  Litigating The Application of Anti-Tax Avoidance Statutes – Learning From The Canada Experience -- Martin J. McMahon, Jr.)
• Employee Benefits:  Distributions Update -- Kathryn Kennedy (John Marshall)
• Employee Benefits:  Litigation Update -- Joshua Erlich (Georgetown)
• Exempt Organizations:  Colleges and Universities – Current Audit Activity and What We Have Learned from the IRS Interim Report -- Bethany Bridgham (American)
• Fiduciary Income Tax:  Rethinking Roth IRA Conversions in 2010 -- Christopher Hoyt (UMKC)
• Individual & Family Taxation:  Collection – Current Issues and Comparative Perspectives -- Leslie Book (Villanova)
• Individual & Family Taxation:  Tax Consequences of Disasters -- Francine Lipman (Chapman)
• Low Income Taxpayers:  History of Low Income Tax Clinics -- Nancy Abramowitz (American), Keith Fogg (Villanova), Kathryn Sedo (Minnesota)
• Low Income Taxpayers:  How to Start a Low Income Tax Clinic -- Nicole Appleberry (Michigan)
• Partnerships & LLCs:  Don’t Get Carried Away by Carried Interests -- Howard Abrams (Emory)
• Partnerships & LLCs and Real Estate:  How Canada’s Experience with the General Anti-Abuse Rule Might Inform US How to Live with the Codified Economic Substance Doctrine -- Martin J. McMahon (Florida)
• Pro Bono: US and Canadian Approaches to Tax Litigation Involving Unrepresented Taxpayers -- Andre Lareau (Laval University)
• Sales, Exchanges & Basis:  Current Non-Section 1031 Developments -- Erik Jensen (Case Western)
• Sales, Exchanges & Basis:  Like-Kind Exchange Current Developments -- Bradley Borden (Brooklyn)
• Section Program:  Innocent Spouse – Administrative and Litigation Issues in Innocent Spouse Cases -- Chris Pietruszkiewicz (LSU), Scott Schumacher (U. Washington)
• Section Program:  Innocent Spouse – Legislative Solution to Issues Raised in Innocent Spouse Cases -- Alice Abreu (Temple), Carl Smith (Cardozo)
• Standards of Tax Practice:  Ethics and the Codification of Economic Substance -- Linda Galler (Hofstra)
• Task Force on Patenting Tax Strategies:  The Bilski Case -- Ellen Aprill (Loyola-L.A.), John Duffy (George Washington)
• Tax Practice Management:  Beyond the Basics – Understanding Financial Statements for Tax Lawyers -- Michael Lang (Chapman)
• Teaching Taxation:  Employing Stock – US and Foreign Taxation of Employee Stock Options -- Barry Kozak (John Marshall), Jinyan Li (Osgoode Hall), Lisa Philipps (Osgoode Hall)
• Young Lawyers Forum & Diversity:  Diversity – A Comparative Analysis of the Canadian and US Tax Bars -- Vern Krishna (University of Ottawa)

ABA Releases Law Student Tax Challenge Problem

The ABA Tax Section has released the problem (J.D.; LL.M.) and updated rules (J.D.;LL.M.) for the 10th Annual Law Student Tax Challenge:

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.

J.D.: This year's J.D. problem focuses on the personal income tax effects of a famous athlete's divorce from his wife, as well as his subsequent attempts to repair his marriage and his professional sports career. The problem asks participants to evaluate alternate property settlement proposals from his wife's lawyer and analyze the deductibility of certain expenses incurred by the client.

LL.M: This year's LL.M problem focuses on a wealthy energy tycoon's attempt to reorganize his existing investments and acquire an interest in the burgeoning electric car business. The problem asks participants to recommend the best structure for: the tycoon's purchase of the oil rig business owned and operated by one of his current investments, the reorganization of his investments into an S corporation, and his new investment in the electric car business.

Teams are initially evaluated on two criteria: a memorandum to a senior partner and a letter to the client explaining the result. Based on this written work product, 6 teams from the J.D. Division and 4 teams from the LL.M. Division will receive a free trip (including airfare and accommodations for two nights) for the Section's 2011 Midyear Meeting, January 20-22 at the Boca Raton Resort & Club in Boca Raton, FL, where they will defend their submissions before a panel of some of the country's top tax lawyers.

The competition is a great way for law students to showcase their knowledge in a real-world setting and gain valuable exposure to the tax law community. On average, more than 40 teams compete in the J.D. Division and more than 20 teams compete in the LL.M. Division.

At several institutions, the competition is used as a learning tool. The competition offers motivated students a tremendous opportunity to learn more about tax law, interact with professionals in the world of tax, and earn credit while doing so.

Upcoming Deadlines:

• Nov. 5, 2010:  Written Submissions Due
• Dec. 6, 2010:  Semi-Finalists and Finalists Notified
• Jan. 21, 2011: Semifinal and Final Oral Rounds at Section of Taxation Midyear Meeting

For the results, problems, winning answers, judges, and entrants for the prior competitions (2001-2009), see here. For TaxProf Blog coverage of prior winners, see 2009, 2008, 2007, 2006, and 2005.

ABA Tax Section Hosts Webcast Today on Tax Strategy Patents After Bilski

The ABA Tax Section offers a teleconference and webcast today on Is This the Beginning or Is It the End? -- Implications of Bilski on Patenting Tax Strategies from 1:00 - 2:30 p.m. EST:

Are tax planning methods patentable? This question has concerned tax practitioners for years. Tax patents are part of a broader group known as business method patents. On June 28, 2010, the U.S. Supreme Court handed down its long-awaited decision in Bilski v. Kappos. The case addressed whether certain hedging strategies -- arguably, a type of business method -- could be patented. The Court ruled unanimously that they were not patentable. The majority opinion, rejecting the test used below by the Court of Appeals for the Federal Circuit, concluded on the basis of long-standing Supreme Court precedent that the patent claims at issue represented mere abstract ideas. The majority, however, did not foreclose the possibility that some business methods may be patentable, leaving open the question of whether tax planning methods are patentable.

This program will explore the Bilski case and its implications for tax strategy patents. The history of business method patents will be examined. The subject will be considered from the perspectives of both tax professionals and intellectual property lawyers. Panelists will address possible future judicial developments and how the U.S. Patent and Trademark Office may respond to Bilski. Finally, potential Congressional legislative reactions will be discussed.

• Dennis B. Drapkin (Jones Day, Dallas) (moderator)
• Ellen P. Aprill (Loyola-L.A.)
• Barry L. Grossman (Foley & Lardner, Milwaukee)
• Matthew T. Young (Director, AICPA Congressional and Political Affairs)

Charles Egerton Named ABA Tax Section Chair

The ABA announced today that Charles H. Egerton (Mead, Egerton, Bloodworth, Capouano & Bozarth, Orlando, FL) has been selected to chair the 22,000-menber ABA Tax Section. He will serve a one-year term, to be succeeded by William M. Paul of Covington & Burling (Washington, D.C.), who was chosen to serve as chair-elect. From the ABA press release:

Egerton is a tax and corporate attorney whose work emphasizes tax planning for real estate transactions. His practice areas include tax free exchanges; tax structuring of joint ventures; negotiating and drafting partnership and LLC agreements, mergers, sales nd acquisitions of businesses; and handling tax controversies at the audit, trial and appeals levels.

ABA Tax Section Hosts Webcast Today on The Coming Regulation of Federal Tax Return Preparers

The ABA Tax Section offers a teleconference and webcast today on Be Prepared: A [Scout's] Guide to the Coming Regulation of Federal Tax Return Preparers from 1:30 - 3:00 p.m. EST:

The IRS has completed its study of Federal tax return preparers and has concluded that Federal regulation is warranted. As the IRS and Department of Treasury wrestle with developing the details of this historic and unprecedented effort that is scheduled to take effect in 2011, Federal tax practitioners are asking, "What does this mean to me?" Do not get lost in a forest of uncertainty. Prepare yourself and your firm by joining government decision-makers and practitioners as they discuss the policy and practical implications of Federal tax return preparer regulation:

• Rochelle L. Hodes (PricewaterhouseCoopers, Washington, D.C. (Moderator)
• Bryon Christensen (Attorney-Advisor, Office of Tax Policy, U.S. Treasury Department)
• Karen L. Hawkins (Director, Office of Professional Responsibility, IRS)
• Leann Ruf (Communications Project Lead, Electronic Tax Administration Office (ETA), IRS, Nashville, TN)
• Todd Steinberg (Greenberg Traurig, McLean, VA

ABA Tax Section Publishes Summer 2010 Issue of News Quarterly

The ABA Tax Section has published 29 News Quarterly No. 4 (Summer 2010):

• Opinion Point: The Ethereal Angel List, by Thomas Greenaway (KPMG, Boston), pp. 1, 21-22
• Section Meeting Calendar, p. 2
• From the Chair (Stuart M. Lewis) (Buchanan Ingersoll & Rooney, Washington, D.C.), pp. 3,
• From the Chair-Elect (Charles H. Egerton) (Dean, Mead, Egerton, Bloodworth, Capouano & Bozarth, Orlando), pp. 4-5.
• Interview with William J. Wilkins (Chief Counsel, IRS), by  Jasper L. Cummings, Jr. (Alston & Bird, Washington, D.C.) & Alan J.J. Swirski (Skadden, Washington, D.C.), pp. 6-8
• Points to Remember: Correcting Code Section 409A Document Failures, by Brian A. Benko (McDermott Will & Emery, Washington, D.C.), pp. 9-10. 
• Points to Remember: Academic Tracks? The Tax Attorney as Accounting Professor, by Cheryl Crespi (Central Connecticut State University, School of Business), pp. 10-12.
• Points to Remember: FATCA Provisions of the HIRE Act: Possible Effects on International Disclosure Norms, by Vlad Frants (New York), pp. 12-13.
• Points to Remember: Tax Court Invalidates New Section 6501(e) Regulations, by Steve R. Johnson (UNLV), pp. 13-15.
• Points to Remember: Social Security Benefits Formula 101: A Practical Primer, by Francine J. Lipman (Chapman) & James E. Williamson (San Diego State University, College of Business Administration), pp. 15-17.
• Ronald A. Pearlman— 2010 Distinguished Service Award Recipient, by Susan P. Serota (Pillsbury Winthrop Shaw Pittman, New York), pp. 18-19.
• Laura Newland— 2009 Public Service Fellow, pp. 20-22.
• CLE Calendar, p. 23.
• In Remembrance: Martin D. Ginsburg, 1932 – 2010, pp. 24-25.
• News Briefs, p. 25.
• Government Submissions Boxscore, p. 26.

ABA Tax Section Submits Comment Letters

The ABA Tax Section has submitted these comment letters:

• Notice 2009-93 and the Pilot Program to Truncate Taxpayer ID Numbers on Payee Statements (July 22, 2010)
• Qualification of S Corporation Debt to Shareholders (July 26, 2010)
• Recommendations for the 2010-11 Treasury-IRS Guidance Priority List (July 28, 2010)

ABA Tax Section Hosts Webcast Today on Tax Strategy Patents After Bilski

The ABA Tax Section offers a teleconference and webcast today on Is This the Beginning or Is It the End? -- Implications of Bilski on Patenting Tax Strategies from 1:30 - 3:00 p.m. EST:

Are tax planning methods patentable? This question has concerned tax practitioners for years. Tax patents are part of a broader group known as business method patents. On June 28, 2010, the U.S. Supreme Court handed down its long-awaited decision in Bilski v. Kappos. The case addressed whether certain hedging strategies -- arguably, a type of business method -- could be patented. The Court ruled unanimously that they were not patentable. The majority opinion, rejecting the test used below by the Court of Appeals for the Federal Circuit, concluded on the basis of long-standing Supreme Court precedent that the patent claims at issue represented mere abstract ideas. The majority, however, did not foreclose the possibility that some business methods may be patentable, leaving open the question of whether tax planning methods are patentable.

This program will explore the Bilski case and its implications for tax strategy patents. The history of business method patents will be examined. The subject will be considered from the perspectives of both tax professionals and intellectual property lawyers. Panelists will address possible future judicial developments and how the U.S. Patent and Trademark Office may respond to Bilski. Finally, potential Congressional legislative reactions will be discussed.

Faculty:

• Dennis B. Drapkin (Jones Day, Dallas) (moderator)
• Ellen P. Aprill (Loyola-L.A.)
• Barry L. Grossman (Foley & Lardner, Milwaukee)
• Matthew T. Young (Director, AICPA Congressional and Political Affairs)

ABA Tax Section Submits Comment Letter on Contingent Fees in Circular 230

The ABA Tax Section has submitted a comment letter on Contingent Fees in Section 10.37 of Circular 230 (July 15, 2010):

Section 10.27 of Circular 230 regulates fees charged by tax practitioners concerning matters before the IRS and restricts the use of unconscionable or contingent fees in tax-related representations. In general, these Comments discuss the provisions in § 10.27 addressing “contingent fees,” defined in § 10.27(c)(1) to include “a fee that is based on a percentage of the refund reported on a return, that is based on a percentage of the taxes saved, or that otherwise depends on the specific result attained.” In 2009, the Service and the Department of the Treasury proposed three clarifying changes to § 10.27, all of which we believe would be improvements.

As a general matter, however, we believe that § 10.27 remains too narrow in identifying circumstances when a tax practitioner may agree with a client to be compensated based on the result obtained in a tax matter. We believe that § 10.27 should permit tax practitioners to charge a result-based fee (in whole or in part) in matters before the Service when the taxpayer’s position will be transparent and subject to direct scrutiny by the Service. These cases would include requests for private letter rulings, claims for refund and the like. Moreover, we believe that one of the proposed changes to § 10.27 may have the unintended consequence of prohibiting a relatively common practice, which is an agreement between a tax practitioner and a client, in determining the final fee in a tax matter, to consider the tax result attained. In addition, because the definition of “contingent fee” in § 10.27(c)(1) significantly differs from the common understanding of that term, we believe the title of § 10.27(b) should be changed to minimize confusion; we recommend that the word “Contingent” in both the title of § 10.27(b)(1) and in the defined term in § 10.27(c)(1) be changed to “Prohibited” and that conforming changes be made in the text of § 10.27(b) and 10.27(c)(1).

Finally, we urge the Service and Treasury to repeal the “120-day rule,” which currently prohibits a contingent fee in a matter if a claim for refund or amended return is filed more than 120 days following the commencement of an examination or a challenge to an original return.