TaxProf Blog

Editor: Paul L. Caron
Pepperdine University School of Law

A Member of the Law Professor Blogs Network

Saturday, April 7, 2012

ABA, NYSBA Propose Estate & Gift Tax Reforms

ABA Tax SectionThe ABA Tax Section has submitted estate, gift, and generation-skipping transfer tax reform ideas (55 pages) to the House Ways & Means Committee and Senate Finance Committee in the following ten categories:

  1. Need for Predictability and Stability in Federal Transfer Tax System
  2. Unification of the Federal Estate and Gift Tax Exclusion Amounts
  3. Portability of the Exemptions
  4. Section 6166
  5. Valuation of Interests in Closely Held Entities
  6. "Clawback" or "Recapture" of Transfer Tax on Gifts Protected by Gift Tax Unified Credit
  7. Annual Exclusion
  8. Generation-Skipping Transfer Tax Provisions
  9. Inter Vivos QTIP Elections
  10. Marital Deduction and Charitable Giving

NYSBAThe New York State Bar Association Tax Section has released Report on Portability of the Estate Tax Exemption (13 pages)

Unless extended, portability of the estate tax exclusion will sunset on December 31, 2012. In this report, we have recommended several changes to the existing statute that we believe better serve the basic policy objectives of the current portability rules, all based on the assumption that it is extended beyond 2012. Specifically, we recommended that (i) any revised statute retain rather than modify the current definition of DSUEA, (ii) Example 3 from the 2010 JCT Explanation be revised to conform to the unmodified definition of DSUEA, and (iii) any revised statute clarify that taxable gifts on which gift tax was paid by the last deceased spouse are excluded from the Section 2010(c)(4)(B)(ii) amount. We have also recommended that any revised statute clarify certain issues a surviving spouse would face concerning the amount and use of the DSUEA if he or she were to remarry after a valid portability election is in effect.

April 7, 2012 in ABA Tax Section, NYSBA Tax Section, Tax | Permalink | Comments (0) | TrackBack (0)

Tuesday, January 24, 2012

NYSBA Tax Section Panel: Tax Reform -- What’s All the Noise About?

NYSBASeveral Tax Profs spoke at yesterday's NYSBA Tax Section Annual Meeting on a panel on Tax Reform: What’s All the Noise About?:

  • Steven A. Dean (Brooklyn) (Panel Chair)
  • Joseph Bankman (Stanford)
  • Michael Graetz (Columbia)
  • Stephen Shay (Harvard)

January 24, 2012 in Conferences, NYSBA Tax Section, Tax | Permalink | Comments (0) | TrackBack (0)

Monday, July 18, 2011

NYSBA Releases Tax Reports

Sunday, June 26, 2011

NYSBA Releases Tax Reports

Sunday, February 6, 2011

NYSBA Releases Tax Reports

Saturday, December 18, 2010

NYSBA Releases Tax Reports

NYSBA Logo (2) The New York State Bar Association Tax Section has issued tax reports on:

December 18, 2010 in NYSBA Tax Section, Tax | Permalink | Comments (0) | TrackBack (0)

Saturday, September 25, 2010

NYSBA Releases Tax Reports

Saturday, February 27, 2010

NYSBA Tax Section Releases Tax Reports

Wednesday, February 3, 2010

NYSBA Releases Tax Reports

Wednesday, January 6, 2010

NYSBA Releases Tax Reports

Saturday, November 28, 2009

NYSBA Releases Tax Reports

Tuesday, September 29, 2009

NYSBA Releases Tax Reports

Friday, September 4, 2009

NYSBA Releases Tax Reports

Monday, July 20, 2009

WSJ: IRS Uses FBAR to Get Tougher on Offshore Tax Evaders

Wall Street Journal:  IRS Gets Tougher on Offshore Tax Evaders, by Laura Sanders:

The IRS has stepped up scrutiny of offshore accounts and foreign income, an enforcement campaign that could sweep up tens of thousands of taxpayers. ... The IRS is using a once-obscure tax form called the Foreign Bank Account Report, or FBAR, to force taxpayers to provide information on income they earn or bank accounts they hold overseas.

It is threatening tough action against taxpayers who don't file the form and has greatly broadened those subject to filings beyond direct owners of offshore accounts. The requirement applies to U.S. citizens and residents who have offshore accounts totaling $10,000 at any point during the year.

This spring, the IRS announced a Voluntary Disclosure program for people who haven't been paying taxes on overseas income. The agency warned that those who don't confess by Sept. 23 will be hit with far bigger penalties. Recently, the IRS has been asking for face-to-face interviews with many who have come forward.

In June, the agency announced that the filing requirements apply to investors in offshore hedge and mutual funds. That caused a backlash, and the IRS agreed to delay the deadline for filing this year's form to Sept. 23 from the normal due date of June 30. Now, tax lawyers and accountants say they are being deluged by taxpayers with overseas holdings, worried they will face civil penalties -- or even criminal charges.

For more, see:

July 20, 2009 in News, NYSBA Tax Section, Scholarship, Tax | Permalink | Comments (0) | TrackBack (0)

Saturday, July 11, 2009

NYSBA Releases Tax Reports

Monday, May 11, 2009

NYSBA: Tax Issues Faced by Investors in Ponzi Schemes

The New York State Bar Association Tax Section yesterday released a report on Tax Issues Confronting Private Foundation Investors in Ponzi Schemes and Other Frauds.(No. 1183):

Bernard L. Madoff ...  [has] admitted to defrauding investors out of upwards of $65 billion. Although the Madoff fraud has been the main focus of the press and tax commentary, foundations need guidance on how to treat investments in all of the various Ponzi schemes and other frauds that have come to light in connection with the downturn in the economy.

This report primarily is intended to identify the issues that foundations and the IRS need to address in connection with foundation investments in Ponzi schemes. For each of the identified issues, this report will discuss alternative approaches for addressing the issues and, to the extent available, will identify relevant statutes, Regulations, case law or other authorities.

May 11, 2009 in NYSBA Tax Section, Tax | Permalink | Comments (0) | TrackBack (0)

Tuesday, May 5, 2009

NYSBA: Report on Cancellation of Indebtedness and AHYDO Rules

The New York State Bar Association Tax Section has released a Report on the Cancellation of Indebtedness and AHYDO Rules of §§ 108(i) and 163(e)(5)(F) (No. 1182):

This Report provides recommendations for guidance under Sections 108(i) and 163(e)(5)(F), which were enacted as part of the American Recovery and Reinvestment Act of 2009, Pub. L. No. 111-5 (the “Stimulus Bill”). Sections 108(i) and 163(e)(5)(F) are designed (among other things) to help taxpayers who choose to reduce their outstanding debt by repurchasing the debt at a discount and taxpayers who need to modify (or otherwise restructure) the terms of their outstanding debt but wish to do so outside of bankruptcy.

May 5, 2009 in NYSBA Tax Section, Tax | Permalink | Comments (0) | TrackBack (0)

Monday, April 27, 2009

NYSBA: State Should Adopt Appointment Process Like U.S. Tax Court

The New York State Bar Association Tax Section has released a report on  The Process for Making Appointments to the New York Tax Appeals Tribunal (No. 1181):

We believe that the process usually used in the nomination of judges to the U.S. Tax Court can serve as a model for a process that would assist you, as well as your successors, in ensuring that individuals with the characteristics mentioned above are appointed to the Tribunal. The process for selecting U.S. Tax Court judges starts with the administration (i.e., those appointed by the President) developing a list of possible nominees. That list (along with resumes) is furnished to the Appointments to the Tax Court Committee of the ABA's Tax Section. That committee reviews the background and qualifications of those whose names are on the list. This activity is pursued through confidential inquiries; the committee meets in executive sessions only. The committee rates each candidate as "well qualified," "qualified," or "not qualified" and these conclusions are communicated to the administration; the President makes the ultimate decision on whom to nominate; the Senate must confirm a nomination for the process to be completed.

In connection with Tribunal appointments, a number of groups could take the role fulfilled by the ABA Tax Section committee in the federal context, such as the New York State Bar Association, the ABA Tax Section's State and Local Tax Committee, or a New York State Judicial Screening Committee. If you believe that such a process would be worthwhile and feasible, we would be happy to work with your staff in (a) identifying the appropriate review group and (b) developing procedures for the process.

April 27, 2009 in NYSBA Tax Section | Permalink | Comments (0) | TrackBack (0)

Saturday, March 28, 2009

NYSBA Issues Report on Remedying Documentary Noncompliance by § 409A Plans

The New York State Bar Association Tax Section has released a report on Remedying Documentary Noncompliance by Section 409A Plans in Response to Notice 2008-113 (No. 1180):

Notice 2008-113, 2008-51 I.R.B. 1305 (Dec. 22, 2008), requests comments on the possibility of establishing a voluntary compliance program that would provide relief to taxpayers that have established a nonqualified deferred compensation plan that fails by its terms to comply fully with Section 409A ... to bring the plan into compliance. This report responds to Notice 2008-113’s request for comments. ...

[W]e propose below a three-pronged program. The first would set out specific, narrowly targeted types of violations which may be viewed as presenting a low probability of abuse and which we therefore view as appropriate for inclusion in a list of correctable violations. The second would relate to those circumstances in which errors are quickly discovered and corrected. The third involves the establishment of a policy of prospective enforcement and liberal transitional relief to allow taxpayers to adapt to new authorities interpreting Section 409A or changes in enforcement approach. Our proposals are intended to facilitate the establishment of a program consistent with Treasury's and the IRS's two identified general principles, while also addressing over the course of our discussion below the seven issues specifically identified by Treasury and the IRS for comment.
    

March 28, 2009 in NYSBA Tax Section, Tax | Permalink | Comments (0) | TrackBack (0)

Sunday, March 15, 2009

NYSBA Releases Tax Reports

Monday, January 5, 2009

NYSBA Releases Tax Reports

Wednesday, December 3, 2008

NYSBA Releases Report on Proposed Removal of "Temporary Stay" Exception

The New York State Bar Association has issued a letter and report criticizing the proposed removal of the "temporary stay" exception from 20 NYCRR Section 105.20(e)(1) concerning the taxation of a New York state resident (1171).

December 3, 2008 in NYSBA Tax Section | Permalink | Comments (0) | TrackBack (0)

Wednesday, November 19, 2008

NYSBA Releases Tax Reports

Friday, October 17, 2008

NYSBA Releases Tax Reports

Wednesday, August 20, 2008

NYSBA Releases Tax Reports

Thursday, July 10, 2008

NYSBA Issues Tax Reports

Tuesday, May 27, 2008

NYSBA Issues Tax Reports

Tuesday, January 29, 2008

NYSBA Issues Tax Reports

Tuesday, January 15, 2008

NYSBA Issues Tax Reports

Friday, October 26, 2007

NYSBA Submits Comments on Proposed § 901 Regs

The New York State Bar Association Tax Section has sent a letter and report to the IRS and Treasury Department on the proposed § 901 regulations relating to compulsory payments of foreign taxes.

October 26, 2007 in NYSBA Tax Section | Permalink | Comments (0) | TrackBack (0)

Monday, October 15, 2007

NYSBA Submits Reports to IRS on Sales of Bearer Bonds and General Powers of Appointment

The New York State Bar Association Tax Section has sent letter and reports to the IRS and Treasury Department on these two items:

  • 1133:  Restrictions Imposed on Offers and Sales of Bearer Bonds by the Tax Equity and Fiscal Responsibility Act of 1982
  • 1134:  IR-2007-127:  Request for Comments Regarding General Powers of Appointment (§ 2514)

October 15, 2007 in NYSBA Tax Section | Permalink | Comments (0) | TrackBack (0)

Thursday, September 20, 2007

NYSBA Tax Section Submits Comments on the Pension Protection Act of 2006

The New York State Bar Association Tax Section has sent a letter and report to the IRS and Treasury Department on Guidance under the Pension Protection Act of 2006.

September 20, 2007 in NYSBA Tax Section | Permalink | Comments (0) | TrackBack (0)

Wednesday, July 11, 2007

NYSBA Tax Section Submits Comments on Disqualified Investment Corporations

The New York State Bar Association Tax Section has sent a letter and report to the IRS and Treasury Department on disqualified investment corporations as defined in section 355(g).

July 11, 2007 in NYSBA Tax Section | Permalink | Comments (0) | TrackBack (0)

Wednesday, June 20, 2007

NYSBA Tax Section Submits Comments on Proposed Regs on Exchanges of Property for Annuities

The New York State Bar Association Tax Section has sent a letter and report to the IRS and Treasury Department on the proposed regulations regarding exchanges of property for annuities.

June 20, 2007 in NYSBA Tax Section | Permalink | Comments (0) | TrackBack (0)

Wednesday, June 6, 2007

NYSBA Submits Comments on Tax Provision of NYS Budget Bill

The New York State Bar Association Tax Section has sent a letter and report to the New York State Department of Taxation and Finance on the Tax Provisions of the New York State 2007-08 Budget Legislation.

June 6, 2007 in NYSBA Tax Section | Permalink | Comments (0) | TrackBack (0)

Saturday, April 14, 2007

NYSBA Submits Comments on Model Income Tax Convention

Nysba_logoThe New York State Bar Association Tax Section has sent a letter and report to the IRS and Treasury Department on the Model Income Tax Convention Released by the Treasury Department.  The report was prepared by asn ad hoc committee of the NYSBA Tax Section, consisting principally of members of the Committee on Inbound U.S. Activities of Foreign Taxpayers.  The principal draftsman was Willard B. Taylor (Sullivan & Cromwell).

April 14, 2007 in NYSBA Tax Section | Permalink | Comments (0) | TrackBack (0)

Sunday, January 28, 2007

NYSBA Tax Section Submits Comments on Material Advisor Rules

Nysba_logoThe New York State Bar Association Tax Section has sent a letter and report to the IRS and Treasury Department on the proposed regulations regarding portable transaction disclosure and list maintenance rules under §§ 6011, 6111, and 6112.

January 28, 2007 in NYSBA Tax Section | Permalink | Comments (0) | TrackBack (0)

Friday, January 19, 2007

NYSBA Tax Section Urges New Gov. Spitzer to Issue More Tax Regs

Nysba_logoThe New York State Bar Association Tax Section has sent a letter urging new Governor Eliot Spitzer to issue more tax regulations:

Unfortunately, the prior administration viewed regulation as burdensome, and imposed a variety of barriers to the prompt promulgation of interpretive tax regulations.  We are writing to urge that your Administration take a different tack, and instead encourage the Department of Taxation and Finance actively to develop and promulgate regulations explaning our myriad tax statutes.

January 19, 2007 in NYSBA Tax Section | Permalink | Comments (0) | TrackBack (0)

Wednesday, January 3, 2007

NYSBA Tax Section Submits Comments on Differences in Tax Treatment of Domestic and Foreign Partnerships

Nysba_logoThe New York State Bar Association Tax Section has sent a letter and report to the Treasury Department and IRS on Differences in Tax Treatment of Domestic and Foreign Partnerships.

January 3, 2007 in NYSBA Tax Section | Permalink | Comments (0) | TrackBack (0)

Monday, December 11, 2006

NYSBA Tax Section Submits Comments on FPHCs & CFCs

Nysba_logoThe New York State Bar Association Tax Section has sent a letter and report to the Treasury Department and IRS on Section 954(c)(6)’s Exclusion from Foreign Personal Holding Company Income Status for Certain Payments Made by a Controlled Foreign Corporation.

December 11, 2006 in NYSBA Tax Section | Permalink | Comments (0) | TrackBack (0)

Thursday, November 30, 2006

NYSBA Submits Comments on Treatment of Partnership Distributions under Section 751(b)

Nysba_logoThe New York State Bar Association Tax Section has released a letter and report on Notice 2006-14 and the treatment of partnership distributions under Section 751(b). 

November 30, 2006 in NYSBA Tax Section | Permalink | Comments (0) | TrackBack (0)

Monday, November 6, 2006

NYSBA on Treasury's Authority to Issue Regulations

Nysba_logoThe New York State Bar Association Tax Section has released a letter and report sent to the Treasury Department and the IRS on The Authority of the Treasury Department and the IRS to Issue Regulations Under the IRC:

The Report discusses grants of authority given by Congress to the Treasury Department and the IRS to promulgae regulations under the Code, describes some of the problems taxpayers and the courts have had in interpreting these grants, and contains a brief summary of the degree of deference given by courts to these grants of regulatory authority.  The Report then proposes model language to be used in the Code in places where Congress wishes to delegate regulatory authority to the Treasury Department and the IRS.

November 6, 2006 in IRS News, NYSBA Tax Section | Permalink | Comments (0) | TrackBack (0)

Wednesday, October 18, 2006

NYSBA Releases Several Tax Reports

Nysba_logoThe New York State Bar Association Tax Section has released several letters and reports:

  • "Zero Basis" (Report No. 1120, 10/16/06)
  • Two-step "A" Reorganizations (Report No, 1119, 10/13/06)
  • New York Innocent Spouse Relief  (Report No. 1118) (10/10/06)
  • "Stuckless" Proposed Regulations (Report No. 1117) (9/20/06)

October 18, 2006 in NYSBA Tax Section | Permalink | Comments (0) | TrackBack (0)

Monday, August 28, 2006

NYSBA on Prohibited Tax Shelter Activity Under § 4965

Nysba_logoThe New York State Bar Association Tax Section has sent a letter and report to the Treasury Department and IRS on Prohibited Tax Shelter Activity Under § 4965.  Here is the Summary:

This report is submitted in response to Notice 2006-65's request for comments on the new tax shelter provisions.... The first of this report gives an overview of the new law. The report then discusses the background leading up to the new law and what Congress intends to accomplish through the new provisions.  Next, the report discusses the anti-tax shelter provisions of pre-TIPRA law that continue to apply to tax exempts (that reduce the need, from a tax administration point of view, for an expansive reading of the new provisions), as well as some concerns of the tax-exempt community over an expansive interpretation of the law.  Finally, the report addresses specific questions and concerns and gives comments and recommendations on how the new law should be interpreted.  The Appendix to this report briefly summarizes certain listed transactions and other transactions involving exempt organizations which the IRS has determined are abusive.

August 28, 2006 in NYSBA Tax Section | Permalink | Comments (0) | TrackBack (0)

Friday, August 18, 2006

NYSBA Releases Report on Patentability of Tax Advice and Tax Strategies

Nysba_logoThe New York State Bar Association Tax Section has sent a report to the House Ways & Means Committee and Senate Finance Committee on the Patentability of Tax Advice and Tax Strategies.  Here is the Summary:

We think the patenting of tax advice and tax strategies raises a number of difficult policy and practical issues. While the payment of taxes is mandatory, taxpayers are free to arrange their affairs within the bounds of the law in a manner that minimizes their legal liability for taxes. We do not believe that it is sound policy to force taxpayers to choose between paying more tax than they are legally obligated to pay and paying royalties to a third party who has patented a tax strategy.

Continue reading

August 18, 2006 in NYSBA Tax Section | Permalink | Comments (0) | TrackBack (0)

Monday, July 24, 2006

NYSBA Tax Section Calls on Sen. Baucus to End Block of Solomon's Appointment as Assistant Secretary for Tax Policy

Nysba_logoThe New York State Bar Association Tax Section has written a letter to Senate Finance Committee Ranking Minority Member Max Baucus asking that he drop his attempt to block the confirmation of Eric Solomon as Assistant Secretary for Tax Policy unless the Treasury adopts a specific timetable for closing the tax gap [blogged here]:

Although we and the members of the Executive Committee are of all political persuasions, we are united in our belief that Eric is a model public servant and is extraordinarily qualified for this position. We are personally familiar with Eric's beyond-the-call-of- duty dedication to the work of the Treasury Department, and have marveled at his grace under the pressure of working with several Treasury Secretaries while holding down two jobs simultaneously in a department often short on staff. We believe that the government and all taxpayers are extremely fortunate to have Eric in public service, and that it is in the strong interest of the government and of all taxpayers for him to be promptly confirmed for this position.

We agree with you that the tax gap must be reduced. However, we do not believe it is fair to Eric, or in the interest of the government or of taxpayers, for Eric's confirmation to be held up until a specific date for the delivery of a plan to close the tax gap can be set. Eric's appointment will, we believe, increase Treasury's ability to accomplish the formidable task of developing such a plan. As a result, and to further the objective of reducing the tax gap, we respectfully urge prompt confirmation of Eric for this position.

Dan Shaviro has more here.

July 24, 2006 in NYSBA Tax Section | Permalink | Comments (0) | TrackBack (0)

Monday, July 10, 2006

NYSBA Submits Report to IRS on Section 956 and Partnerships

Nysba_logoThe New York State Bar Association Tax Section has submitted a letter (2 pages) (from Chair Kimberly S. Blanchard) and report (20 pages) (drafted by Jeffrey D. Hochberg) to the Treasury Department and IRS on Section 956 and Partnerships.

July 10, 2006 in NYSBA Tax Section | Permalink | Comments (0) | TrackBack (0)

Tuesday, July 4, 2006

NYSBA Submits Letters and Reports to IRS

Nysba_logoThe New York State Bar Association Tax Section has submitted letters and reports to the Treasury Department and IRS on two issues:

July 4, 2006 in NYSBA Tax Section | Permalink | Comments (0) | TrackBack (0)

Tuesday, June 6, 2006

NYSBA Tax Section on Family Trust Companies

Nysba_logoThe New York State Bar Association Tax Section has submitted a letter and report to the Treasury Department and IRS on family trust companies:

June 6, 2006 in NYSBA Tax Section | Permalink | Comments (0) | TrackBack (0)

Friday, May 19, 2006

NYSBA Tax Section on Notice 2005-74

Nysba_logoThe New York State Bar Association Tax Section on Wednesday submitted a letter and report to the Treasury Department and IRS on Notice 2005-74 concerning the effect of common asset reorganizations on gain recognition agreements. 

 

May 19, 2006 in NYSBA Tax Section | Permalink | Comments (0) | TrackBack (0)