TaxProf Blog

Editor: Paul L. Caron
Pepperdine University School of Law

Friday, April 22, 2016

The Slow Professor:  Resisting Higher Education's 'Corporatizing Culture Of Speed,' Or 'Self-Indulgent Tenured Faculty Privilege'?

SlowInside Higher Ed, 'The Slow Professor' (reviewing The Slow Professor: Challenging the Culture of Speed in the Academy (University of Toronto Press, Mar. 28, 2016), by Maggie Berg (Queen’s University) & Barbara K. Seeber (Brock University)) (interview):

New book argues that professors should actively resist the "culture of speed" in academe.

In 2013, the jobs website CareerCast named university professor the No. 1 least stressful job, unleashing a torrent of criticism that only grew after Forbes picked up the ranking. Professors -- those with tenure and without -- said the study ignored the changing dynamics of the university, namely the increasingly administrative nature of academic work, the emerging student-as-customer model, unrealistic research expectations and 24-7 contact with colleagues and students via email. Non-tenure-track professors also pointed out that they in many cases lack all job security.

CareerCast evidently learned something from the controversy -- its 2016 least stressful jobs list specifies tenured professor, at No. 3 -- but old notions about what it is to be a professor die hard. And the CareerCast study is just one example. From the running errands to social and family events, someone always seems to be wondering what it’s like to have summers off and “just think” for a living.

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April 22, 2016 in Book Club, Legal Education | Permalink | Comments (2)

WSJ:  Goat Herd Helps Trump Lower Tax Bite

Wall Street Journal, Goat Herd Helps Trump Lower Tax Bite:

Donald Trump has found a solution that cuts both his grass and his tax bill: Goats.

The Republican presidential front-runner’s small goat herd, combined with hay farming and wood cutting, let him qualify for a New Jersey farmland tax break that saves him tens of thousands of dollars a year in property taxes on two golf courses, according to public records.

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April 22, 2016 in Political News, Tax | Permalink | Comments (1)

University of Washington (Seattle) To Open Separate Second Law School In Tacoma

UWThe News Tribune, Law School at UW Tacoma Would be Separate from Seattle Program:

University of Washington officials are moving forward with plans to create a law school at the UW Tacoma and want it to operate separately from the law school at the university’s Seattle campus, UW President Ana Mari Cauce said Wednesday. ...

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April 22, 2016 in Legal Education | Permalink | Comments (2)

Smith:  The PACT Act And The Constitutionality Of The Marketplace Fairness Act

Florida Tax Review  (2015)Eric Smith (Weber State), The PACT Act as Indicium of the Due Process Validity of the Marketplace Fairness Act, 19 Fla. Tax Rev. ___ (2016):

If passed into law, the Marketplace Fairness Act would impose a federal duty on out-of-state sellers to collect a state-defined and state-benefitting use tax. This unique exercise of federal power implicates due process. The PACT Act represents the only other instance in which Congress has similarly compelled state law compliance. Two circuit courts of appeals have found the PACT Act vulnerable on concerns of due process. This Article relies on the PACT Act analogue to simulate how the Marketplace Fairness Act would fare under similar scrutiny. To this end and in this uncommon context, two novel constitutional questions are considered: 1) with which sovereign, the federal government or the state, are minimum contacts measured; and 2) if measured with the state, is a single sale sufficient to meet due process thresholds?

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April 22, 2016 in Scholarship, Tax | Permalink | Comments (0)

The IRS Scandal, Day 1079

IRS Logo 2New York Times, I.R.S. Fights Back Against House Republicans’ Attacks:

For five years, congressional Republicans have taken out their anti-tax wrath on the Internal Revenue Service, cutting its budget by nearly $1 billion, reducing its staff by about 17,000, and even threatening to impeach its chief.

Now they say no one at the agency receives a bonus until customer service improves. And that measure, which the Republican-controlled House easily passed Thursday, was just one of six anti-I.R.S. measures that it approved this week, mostly by party-line votes, to mark the annual tax-filing deadline.

To supporters of the agency — and there are some — years of such attacks have yielded exactly what Republicans seemed to want: a depleted, defanged tax collector.

“I’m appalled, that’s all I can say,” said Lawrence B. Gibbs, a tax lawyer at Miller & Chevalier who joined the I.R.S. during the Nixon administration and was President Ronald Reagan’s choice for commissioner in 1986. “It’s fine to demonize the I.R.S. It has always been a target. Listen, that goes with the job.”

But, he added, given the nation’s challenges, “the one thing people ought to agree on is that we should have a revenue system that works and works well.”

“And if we’re going to create a disrespect for our tax revenue system,” he continued, “I look at it and say I just don’t think it’s in our country’s best interest.”

House Republicans even gave this week a name, “I.R.S. Week,” though the lines of attack began last week, and were many. In debate, multiple hearings (the I.R.S. commissioner, John Koskinen, testified four times over eight days), news conferences and commentary in the news media, the agency even got the blame for the hated tax code, which Congress writes and Republicans have promised for five years to rewrite and simplify.

“Right now, we have a tax code that no one can understand being enforced by an agency that no one trusts,” said Speaker Paul D. Ryan, Republican of Wisconsin, who was the chairman of the tax-writing Ways and Means Committee before taking the House’s top job last fall.

As certain as death and taxes, tax season political attacks on the I.R.S. go back decades. But in recent years, the intensity has grown and the agency’s funding in turn shrank more than any other time in memory. The campaign gained strength in 2013, when Republicans seized on management failures to allege that I.R.S. employees had singled out conservative groups for greater scrutiny and delays in reviewing their applications for tax-exempt status as “social welfare” organizations, though liberal-leaning groups were examined as well, investigations showed.

The assaults and especially the funding cuts have reached a point that the agency’s defenders are speaking out.

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April 22, 2016 in IRS News, IRS Scandal, Tax | Permalink | Comments (6)

Thursday, April 21, 2016

Delaney Thomas Reviews Weeks McCormack's The Childcare Tax Squeeze

Jotwell (Tax) (2016)Kathleen DeLaney Thomas (North Carolina), It's Time to Revisit the Tax Treatment of Working Childcare Costs (reviewing Shannon Weeks McCormack (University of Washington), Over-Taxing the Working Family: Uncle Sam and the Childcare Squeeze, 114 Mich. L. Rev. 559 (2015)):

Childcare costs have soared in recent years while wages remain stagnant. To make matters worse, relief by provided by the tax code is extremely limited. Parents may be able to claim a tax credit for a portion of their childcare costs and may be able to divert limited funds to a pretax flexible spending account. But in many cases, these tax benefits capture only a minor portion of parents’ costs. It is no surprise, then, that with an election year upon us, a number of proposals to expand the current childcare tax credit have resurfaced in recent months. These proposals echo years of debate over whether the tax system discourages work by secondary earners and treats working parents unfairly vis-à-vis their non-parent counterparts.

But current proposals to modestly expand the childcare credit will make only a small dent in working parents’ childcare costs. Recognizing the inadequacy of such an approach, Shannon Weeks McCormack proposes a more fundamental reform in her forthcoming article, Over-Taxing the Working Family: Uncle Sam and the Childcare Squeeze. The childcare tax credit, she argues, should be replaced with an above-the-line deduction for childcare expenses that is not subject to phase-outs or dollar limitations. In essence, Weeks McCormack calls for according childcare expenses the same treatment as deductible trade or business expenses.

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April 21, 2016 in Scholarship, Tax | Permalink | Comments (0)

Gergen:  How To Tax Capital

Mark P. Gergen (UC-Berkeley), How to Tax Capital, 69 Tax L. Rev. ___ (2016):

This paper proposes a new system for taxing capital that can collect the same amount of revenue as the existing system with much lower administrative and compliance costs, and with somewhat lower distortionary impact. Its pillar is a flat annual tax assessed on the market value of publicly traded securities paid by an issuer. Wealth represented by a string of publicly traded securities is taxed once by giving an issuer a credit for amounts remitted with respect to publicly traded securities it owns. The securities tax will cover around 75 to 80 percent of income producing capital that is presently subject to the individual and corporate income taxes.

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April 21, 2016 in Scholarship, Tax | Permalink | Comments (0)

UC-Davis Spent $175,000 To Scrub Pepper Spray Incident From Google Search Results

UC DavidInside Higher Ed, How (Not) to Hide a Scandal:

Google “University of California, Davis.” What do you see? Who controls what you see?

Until last week, here’s what you wouldn’t see: images of a police officer, back in 2011, pepper spraying a group of student protesters. The students are assembled peacefully, sitting in a line on the ground, heads ducked. ...

Here’s the video of the incident, which racked up over a million views in the days after it was posted:

:

Once the video started circulating, the university tried to control the fallout. Over the last five years, it paid contractors at least $175,000 to scrub references to the controversy from the Internet.the video started circulating, the university tried to control the fallout. Over the last five years, it paid contractors at least $175,000 to scrub references to the controversy from the Internet.

But last week, the PR campaign backfired. On the afternoon of April 14, the top search result for “UC Davis” was the headline from The Sacramento Bee, the paper that broke the story through open-records requests: “UC Davis spent thousands to scrub pepper-spray references from Internet.”

Now, lawmakers and students are calling for Chancellor Linda Katehi’s resignation. They see the spending as an ethical breach: in the midst of budget cuts, how can the university use public funds to smooth over a scandal? ...

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April 21, 2016 in Legal Education | Permalink | Comments (6)

NY Times:  $20 Billion In Tax Credits For College Fails To Increase College Attendance

New York Times:  $20 Billion in Tax Credits Fails to Increase College Attendance, by Susan Dynarski:

Taxpayers will file for $20 billion in tax credits for college expenses they paid in 2015, but while those who get them will no doubt be happy, new evidence shows they have no effect on encouraging people to attend college.

The federal government provides over $30 billion annually in tax benefits for college. In addition to the two tax credits — the American Opportunity Tax Credit and the Lifetime Learning Credit — benefits include a deduction for interest paid on student loans, a recently defunct deduction for tuition expenses, and the 529 and Coverdell tax-advantaged savings accounts.

That is a lot of money. It’s about half of what the federal government spends on elementary and secondary education and two-thirds of what it spends on Pell Grants, which subsidize costs for low-income college students. 

The tax benefits were created to get more people into and through college. But researchers at Stanford and the University of California, Santa Cruz, have now shown that the largest tax benefit, the tax credits, have no effect on increasing education [The Returns to the Federal Tax Credits for Higher Education].

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April 21, 2016 in Tax | Permalink | Comments (2)

Wells:  International Tax Reform By Means Of Corporate Integration

Florida Tax Review  (2015)Bret Wells (Houston), International Tax Reform By Means of Corporate Integration, 19 Fla. Tax Rev. ___ (2016):

This Article focuses on a single organizing question, namely how should a dividend paid deduction regime be designed so that it achieves acceptable international tax outcomes. By focusing on the international tax implications attendant with a dividend paid deduction regime, the author is not attempting to minimize the broader benefits of achieving shareholder-corporate integration. The dividend paid deduction proposal, as to distributed earnings, would equate the tax treatment of debt and equity, and in so doing it would reduce distortions that current law creates with respect to debt and equity in the corporate context. Furthermore, recent economic works suggest that the incidence of the corporate income tax burden is partially shifted to labor and away from shareholders whereas a properly designed integration proposal puts the incidence of business taxation squarely on shareholders. Furthermore, shareholder-corporate integration for C corporations harmonizes the divergent tax treatment that currently exists between C corporations and pass-through entities. Thus, a corporate integration proposal provides a broad spectrum of potential benefits, and so not surprisingly significant scholarship has been dedicated towards how to best achieve shareholder-corporate integration. But, in today’s era, the overwhelming tax policy problem that must be solved rests on finding a solution to the systemic international tax challenges that face the country, and so that is where this Article will focus.

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April 21, 2016 in Scholarship, Tax | Permalink | Comments (0)

Islamic State's Income Drops 30 Percent On Lower Oil, Tax Revenue

ISIS FlagReuters, Islamic State's Income Drops 30 Percent on Lower Oil, Tax Revenue:

Islamic State's income and the population under its control have both fallen by about a third, a U.S.-based analysis firm said, describing the declining revenue as a threat to its long-term rule over its self-proclaimed caliphate.

Revenue for the ultra-hardline Sunni Muslim group, also known as ISIS or ISIL, fell to $56 million a month in March from around $80 million a month in the middle of last year, the analysis company IHS said.

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April 21, 2016 in Tax | Permalink | Comments (1)

Pepperdine Symposium:  The Impact Of King v. Burwell On Judicial Deference To IRS Determinations

Pepperdine Law ReviewSymposium, The Impact of King v. Burwell on Judicial Deference to IRS Determinations, 2015 Pepp. L. Rev. 1-81:

I previously blogged the online version of the symposium, published  just four months after the decision in King v. Burwell.  The Pepperdine Law Review has now released a hard copy of the symposium, pictured on the right.  This is the third major tax symposium produced by the Pepperdine Law Review over the past three years:

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April 21, 2016 in Conferences, Scholarship, Tax | Permalink | Comments (1)

NYLJ Special Report:  Law Schools

NYLJ Cover

New York Law Journal Special Report: Law Schools:

  • Jeremy Paul (Dean, Northeastern), Ask What the Bar Can Do for Law Schools:  "Bar leaders have looked to law schools to get better at producing so-called "practice-ready" graduates. But it is the profession's leaders who are best positioned to partner with law schools to solve the very problems legal employers so often identify."

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April 21, 2016 in Legal Education | Permalink | Comments (1)

House Democrats Introduce Bill To Raise Estate Tax Rate

Accounting Today, House Democrats Introduce Bill to Raise Estate Tax Rate:

Rep. Sander Levin, D-Mich., the ranking member of the tax-writing House Ways and Means Committee, and other House Democrats introduced legislation Wednesday to restore the estate tax and gift tax rate and exemption level to the same amounts as in 2009.

At the beginning of January 2013, Congress passed legislation raising the estate tax rate to 40 percent (up from 35 percent), with an exemption for estates below $5 million, but indexed for inflation. Under current law, estates valued at or below $5.45 million ($10.9 million for a couple) are exempt from owing any estate tax.

The proposed legislation, The Sensible Estate Tax Act of 2016, would return the exemption and tax rate to 2009 levels, lowering the estate tax exemption to $3.5 million ($7 million jointly) and increasing the maximum tax rate to 45 percent. The bill would also restore the rates for the gift tax and generation-skipping transfer tax. It would reinstate the $1 million lifetime gift exemption and retain the annual $14,000 gift tax exclusion and unlimited spousal portability. A summary of the bill is available here.

Estate Tax

April 21, 2016 in Congressional News, Tax | Permalink | Comments (3)

Law Revue Video Contest

Above the Law has announced the six finalists in its annual law revue video contest, with entries from students at George Washington, Georgetown, Northwestern, NYU, Texas, and Virginia law schools.  My favorite is from Texas:  Give Me My Grades Today:

For you Hamilton fans, NYU offers Trevor Effin’ Morrison:

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April 21, 2016 in Legal Education | Permalink | Comments (0)

The IRS Scandal, Day 1078

IRS Logo 2The Daily Signal, Jason Chaffetz Wants to Use ‘Atrophied’ Muscle of Impeachment Against IRS Commissioner:

The chairman of the House Oversight and Government Reform Committee wants Congress to impeach wayward government agents more often, and he’d like GOP leadership to start with Commissioner of Internal Revenue John Koskinen.

In an interview with The Daily Signal, Rep. Jason Chaffetz, R-Utah, likened impeachment “to a muscle that has atrophied over time,” and said he wants to “Get that muscle working again—this should be a common occurrence, this shouldn’t be once in a century.”

Chaffetz believes impeachment is within Congress’ Constitutional authority. “This was the safety valve,” he explained, “for somebody who’s not serving the best interest of the United States of America.”

Congress has only impeached

More recently Chaffetz has led the charge to impeach Koskinen, saying he obstructed the congressional investigation into the agency’s targeting of conservative groups. Chaffetz drew up impeachment articles for the taxman last October and directed his staff to hand deliver the papers to each member of Congress. Last year, the Treasury Department issued a statement backing Koskinen, saying that “Commissioner Koskinen is a man of the highest integrity with a steadfast commitment to public service during difficult times,” per the Associated Press.

But so far, House Speaker Paul Ryan, R-Wis., has hesitated to give Koskinen the boot. At a press conference last week, Ryan told reporters he’d rather wait until after the election to fire the top tax agent.

There’s always an election,” Chaffetz said, expressing frustration with Ryan’s decision to punt on the issue.

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April 21, 2016 in IRS News, IRS Scandal, Tax | Permalink | Comments (0)

Wednesday, April 20, 2016

Doran Presents The Puzzle Of Non-Qualified Retirement Pay Today At Penn

Doran (2015)Michael Doran (Virginia) presents The Puzzle of Non-Qualified Retirement Pay: Optimal Contracting, Managerial Power, and Taxes at Pennsylvania today as part of its Center for Tax Law and Policy Seminar Series hosted by Chris Sanchirico and Reed Shuldiner:

Pay arrangements for managers of public corporations typically include substantial amounts of compensation deferred through non-qualified retirement plans. As a departure from the familiar baseline of current payment for current services, this presents a longstanding puzzle. The corporate-governance literature offers two explanations for the practice. The “optimal-contracting account” argues that non-qualified retirement pay represents “inside debt” that aligns the interests of managers with the interests of the corporation’s unsecured general creditors. The “managerial-power account” argues that non-qualified retirement pay represents “stealth compensation” that facilitates managers’ extraction of rents from corporate assets. In this paper, I set out a different explanation based on tax considerations.

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April 20, 2016 in Colloquia, Scholarship, Tax | Permalink | Comments (0)

Clarke:  New Research On The Stubborn Persistence of Tax Expenditures

Conor Clarke (Ph.D. Candidate, Yale Law School), New Research on the Stubborn Persistence of Tax Expenditures, 150 Tax Notes 1462 (Mar. 21, 2016):

In this essay I examine new research on tax expenditures. By utilizing survey experiments, several new studies have explored when and why the public prefers spending programs organized as tax credits rather than direct expenditures, even when the substance and cost of the policies are the same. I argue that this 'framing effects' research can help explain why tax expenditures have continued to grow faster than government spending as a whole, and why tax expenditure budgets have failed to stop this growth.

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April 20, 2016 in Scholarship, Tax | Permalink | Comments (0)

Poverty, Foster Care, Rape, And Taxes

TaxesMelissa Chadburn, The Throwaways:

Strangely, it was for dreams like these—the simplest dreams of rest, of feeling, of safety—that I first began to look at taxes. Taxes are the tool that makes these dreams of ours possible. Shelter for everyone, food for everyone, taxes ensure public safety. And what about love? Love is given and received. Love is not a solitary act. Love requires people to commune with one another.

My previous associations with taxes were shame and guilt and trickery. Then I looked at my history with money and public funding in general. Some people have argued that we are a nation of self-interested people. People who only care about themselves. Their own well-being.

I disagree. I think we are better than that but have been assaulted by the overwhelming personification of Greed. In all the books we read, in all the films we watch, all the stuff in the news and social media, those who possess greed have the characteristic affect of the slow scrape of a Brillo pad against my heart. The most ferocious. The taking of things that do not belong (sex, money, power, children). The taking of too much is greed personified.

It’s our first lesson in pain.

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April 20, 2016 in Tax | Permalink | Comments (0)

Implicit Bias In Law Review Article Selection

Michael J. Higdon (Tennessee), Beyond the Metatheoretical: Implicit Bias in Law Review Article Selection, 51 Wake Forest L. Rev. ___ (2016):

Every year, law review editors around the country are forced to select which authors, out of the hundreds who annually submit articles, to extend offers of publication. For law review editors, these are stressful times given 1) the short time frame they have for reading and assessing this ever growing number of submissions and 2) the fear that a poor selection on their part could potentially embarrass both themselves and their law schools. Although legal scholars sometimes forget about article selection from the perspective of the hurried, stressed law review editor, everyone in the academy should be somewhat concerned about the current process. After all, numerous studies have shown that, when people are asked to make decisions quickly and under stressful conditions, their decision-making is more likely to be influenced by implicit bias.

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April 20, 2016 in Legal Education, Scholarship | Permalink | Comments (1)

Alm & Soled:  Did You Cheat On Your Taxes?

COnversation 2The Conversation: Did You Cheat on Your Taxes? Here’s Why Your Days May be Numbered, by James Alm (Tulane) & Jay Soled (Rutgers):

The so-called Panama Papers span thousands of pages, revealing that many of the world’s elite have been hiding their money in offshore accounts in an attempt to shield their income from taxes.

Their release – the biggest data leak in history – depicts a world of rampant tax noncompliance. However, it also reveals just how vulnerable all electronic data in the 21st century are to discovery.

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April 20, 2016 in Tax | Permalink | Comments (1)

Syracuse Law School Seeks Approval For Nation's Second Hybrid Online J.D. Program

Syracuse Logo (2016)Syracuse University Press Release, College of Law Partners With 2U for Juris Doctor Degree Program:

The College of Law and 2U today announced a partnership to develop a hybrid juris doctor (J.D.) degree program, pending New York State and American Bar Association approval.

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April 20, 2016 in Legal Education | Permalink | Comments (0)

NYU Hosts Book Discussion Today With Anne Alstott On A New Deal For Old Age

AlstottNYU Law Tax Blog, A New Deal for Old Age: Book Discussion with Anne Alstott (today at 12:30 p.m.):

Please join us for a presentation by Anne Alstott, the Jacquin D. Bierman Professor in Taxation at Yale Law School, of her recently published book, A New Deal for Old Age: Toward a Progressive Retirement (Harvard University Press, 2016). ...

As America’s haves and have-nots drift further apart, rising inequality has undermined one of the nation’s proudest social achievements: the Social Security retirement system. Unprecedented changes in longevity, marriage, and the workplace have made the experience of old age increasingly unequal. For educated Americans, the traditional retirement age of 65 now represents late middle age. These lucky ones typically do not face serious impediments to employment or health until their mid-70s or even later. By contrast, many poorly educated earners confront obstacles of early disability, limited job opportunities, and unemployment before they reach age 65.

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April 20, 2016 in Book Club, Scholarship, Tax | Permalink | Comments (0)

University Of Texas Law School Reallocates Tenured And Adjunct Faculty, Suspends Supreme Court Clinic

Texas Logo (2016)The Daily Texan, Students, Alumni Concerned Over Supreme Court Clinic Suspension:

The University’s Supreme Court Clinic has offered law students experience with drafting briefs and researching arguments used in front of the highest court of the country since fall 2006, but for the first time the clinic has been put on hiatus. ...

Current law students and Supreme Court Clinic alumni have said they’re concerned about the sudden semester-long closing, which they noticed a few weeks ago. Law school Dean Ward Farnsworth said a staffing problem had caused the clinic’s sudden suspension. ...

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April 20, 2016 in Legal Education | Permalink | Comments (1)

Joint Tax Committee Releases IRS Disclosures Of Tax Return Information, 2015

Joint Tax CommitteeThe Joint Committee on Taxation has released Disclosure Report for Public Inspection Pursuant to Internal Revenue Code Section 6103(p)(3)(C) for Calendar Year 2015 (JCX-32-16):

Section 6103(p)(3)(C) of the Internal Revenue Code provides that the Secretary of the Treasury shall, within 90 days after the close of each calendar year, furnish to the Joint Committee on Taxation for disclosure to the public a report which provides, with respect to each Federal agency and certain other entities, the number of: (1) requests for disclosure of returns and return information (as such terms are defined in section 6103(b)); (2) instances in which returns and return information were disclosed pursuant to such requests or otherwise; and (3) taxpayers whose returns, or return information with respect to whom, were disclosed pursuant to such requests. In addition, the report must describe the general purposes for which such requests were made

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April 20, 2016 in Gov't Reports, Tax | Permalink | Comments (0)

Clarke Reviews The Hidden Wealth of Nations

HiddenConor Clarke (Ph.D. Candidate, Yale Law School), What Are Tax Havens and Why Are They Bad, 94 Tex. L. Rev. ___ (2016) (reviewing Gabriel Zucman, The Hidden Wealth of Nations: The Scourge of Tax Havens (University of Chicago Press, 2015)):

This essay reviews Gabriel Zucman's The Hidden Wealth of Nations: The Scourge of Tax Havens. Zucman's important new book brings clarity to a confusing subject -- but occasionally does so at the expense of nuance. My review has three goals. First, I summarize and appraise Zucman's central findings, and re-estimate his revenue-loss totals for the United States using tax-rate assumptions that I believe are more realistic. Second, I position Zucman's findings against the backdrop of the wider literatures on tax havens and inequality, and attempt to answer the two questions in this essay's title. Third, I comment on Zucman's call for a global registry covering the ownership of financial securities. I argue that such a proposal must contend with the fact that there is no international legal consensus on what constitutes ownership.

Prior reviews of The Hidden Wealth of Nations:

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April 20, 2016 in Book Club, Scholarship, Tax | Permalink | Comments (0)

The IRS Scandal, Day 1077

IRS Logo 2Townhall op-ed:  Dealing with the IRS Doesn’t Have to Be Hell, by Reps. Kevin McCarthy, Jason Smith, Rick Allen, Kristi Noem, David Rouzer & Glenn Grothman:

[H]ow do we plan to make the IRS more accountable? We have six bills we plan to pass next week.

The first will require the IRS to crack down on their employees who are delinquent on their own taxes. ...

Next, we will consider legislation that creates something that should already exist—a statutory rule blocking the IRS from rehiring employees who were already fired from the IRS for misconduct. ...

Following that, the House plans to pass a proposal that addresses the IRS’s shoddy customer service record in responding to requests for help in preparing tax forms. During some tax-filing seasons, the IRS only answers one in ten calls from taxpayers. This bill will ban IRS employees from getting bonus payments until the agency implements a plan to bring customer service performance levels up to what we expect of customer service in the private sector.

We also have a bill to prevent the IRS from keeping user fees they charge in a slush fund that is neither transparent nor accountable. ...

Lastly, we will be passing two bills that we expect to have wide bipartisan support: the first to stop any IRS funding from being used to target citizens for exercising their First Amendment rights, and the next to provide printed copies whenever requested of the official IRS instructions book on how to file taxes, ensuring those with limited or no Internet access still have everything they need to deal with April 15th.

In the week following Tax Day, House Republicans will send a clear message to the IRS: clean up your act, because this is only the beginning. Accountability isn’t an option in government; it’s a necessity. Only with a thoroughly reformed IRS and eventually a simplified and fair tax code can taxpayers again trust that the government is not only working efficiently, but is working for them.

Then, while we can’t promise that paying taxes will be a good experience, at the very least it won’t feel like being stuck in hell.

Office of Management and Budget, Statement of Administration Policy (Apr. 18, 2016):

The Administration opposes H.R. 1206, the No Hires for the Delinquent IRS Act; H.R. 4890, the IRS Bonuses Tied to Measurable Metrics Act; and H.R. 3724, the Ensuring Integrity in the IRS Workforce Act of 2015. These bills would impose unnecessary constraints on the Internal Revenue Service's (IRS) operations without improving the agency's ability to administer the tax code and serve taxpayers.

H.R. 1206 would prohibit the IRS from hiring any new employees until the Secretary of the Treasury certifies that no IRS employee has a seriously delinquent debt, or provides a report to the Congress that includes an explanation of why certification is not possible and what would be required to provide such a certification. The bill could result in the IRS being prohibited from hiring any new employees for any purpose -- a drastic and counterproductive step that would compromise tax administration and taxpayer services. The bill is also unworkable in operation, as "seriously delinquent" debts could be as low as $1 and tax liens are recorded on a case-by-case basis. This legislation is unnecessary, as strong laws and procedures already exist to ensure that IRS employees comply with their tax obligations. Publicly-available data show that IRS employees are among the most tax compliant groups in the Nation with a delinquency rate of less than 1 percent.

H.R. 4890 would ban performance awards to IRS employees until the Secretary of the Treasury develops and implements a comprehensive customer service strategy. This bill is unnecessary, as the IRS has already developed and has begun to execute a strategy to improve taxpayer services. The real constraint on the IRS's ability to serve taxpayers effectively is severe underfunding, including for taxpayer services. IRS funding is more than $900 million below its 2010 level, before adjusting for inflation. These budget cuts have impeded the IRS's ability to serve taxpayers, including inadequate responses to taxpayer calls and correspondence. Filing season statistics show that taxpayer service has improved this year as a result of a small funding increase provided last year, but more resources are needed to serve all taxpayers effectively and efficiently. Legislation constraining the IRS's ability to retain and recruit highly qualified employees is not needed and could be counterproductive to the Service's mission.

H.R. 3724 would prohibit the IRS from rehiring any employee who was involuntarily separated due to misconduct. The bill as written could force the immediate termination of employees who had been terminated and rehired many years ago, even if their performance since rehiring has been blemish-free. The bill's prohibition is also unnecessary because current IRS processes already ensure the agency does not rehire former employees who had significant conduct or performance problems during prior employment with the agency.

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April 20, 2016 in IRS News, IRS Scandal, Tax | Permalink | Comments (0)

Tuesday, April 19, 2016

Student Activists Demand Free Tuition At Harvard Law School

Harvard Law School (2016)Harvard Crimson, Law School Activists Demand End to Tuition:

In the most recent wave of activism at the Law School, some students are calling on the school to eliminate tuition completely as part of their new campaign for financial justice.

Members of the group Reclaim Harvard Law published an open letter Sunday addressed to Law School Dean Martha L. Minow and members of the Harvard Corporation—the University’s highest governing body—demanding an end to tuition.

The demand is the cornerstone of “Fees Must Fall,” a campaign activists launched several weeks ago during the Law School’s admitted students weekend. The initiative marks a new focus on economic issues in their movement for better treatment of minorities at the Law School, after activists successfully advocated for the school to remove its controversial seal. ...

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April 19, 2016 in Legal Education | Permalink | Comments (20)

Goldin Presents Rethinking The Taxation Of Single Parents Today At Georgetown

GoldinJacob Goldin (Stanford) presents Beyond Head of Household: Rethinking the Taxation of Single Parents (with Zachary Liscow (Yale)) at Georgetown today as part of its Tax Law and Public Finance Workshop Series hosted by John Brooks and Itai Grinberg:

Under current law, unmarried taxpayers with children can take advantage of the head of household filing status (HHFS) to reduce their federal income taxes. We argue that the design of the filing status is largely obsolete, geared toward alleviating a “marriage penalty” in the tax code that is much less important than when the filing status was first established. At the same time, the growth in the fraction of Americans raising children outside of traditional two-parent households has dramatically raised the cost of the filing status to the fisc.

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April 19, 2016 in Colloquia, Scholarship, Tax | Permalink | Comments (0)

Alm Presents Whither The Tax Gap? Today At NYU

AlmJames Alm (Tulane) presents Whither the Tax Gap? (with Jay Soled (Rutgers)) at NYU today as part of its Tax Policy Colloquium Series hosted by Daniel Shaviro and Chris Sanchirico:

For decades, policy makers and politicians have railed against the “tax gap,” or the difference between what taxpayers are legally obligated to pay in taxes and what they actually pay in taxes. To close the gap, Congress has instituted numerous reforms, with varying degrees of success. Notwithstanding these efforts, the tax gap has largely remained intact, and, if anything, its size has gradually grown over the last several decades.

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April 19, 2016 in Colloquia, Scholarship, Tax | Permalink | Comments (0)

Coachella 2016:  Dropping Acid, Listening To Guns N’ Roses, Filing Tax Returns

Coachella2The Daily Beast, Coachella’s Hot New Act: Filing Taxes at the Last Minute:

Almost a dozen concertgoers rushed to Indio, California’s post office to snail-mail returns to the IRS between dropping acid and listening to Guns N’ Roses.

The Coachella music festival’s makeshift post office saw unexpected traffic this weekend, as festival-goers scrambled to file their tax returns last minute from the campground.

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April 19, 2016 in Tax | Permalink | Comments (0)

ABA Continues Inquiry Into BYU Law School’s Expulsion Of Ex-Mormon Students

BYUFollowing up on my previous post, Group Files Complaint With ABA Alleging Discrimination By BYU Law School Against LGTB, Ex-Mormon Students

Wall Street Journal, ABA Reviewing BYU Law’s Policy of Expelling Ex-Mormon Students:

Brigham Young University Law School is coming under fire for a potentially discriminatory practice of expelling ex-Mormons. An alumni group first brought concerns to the American Bar Association in January, and, according to the National Law Journal, the inquiry is still in the works.

National Law Journal, Inquiry Into BYU Law School’s Expulsion of Non-Mormons Proceeds:

Brad Levin, a law graduate and director of FreeBYU—the alumni group that filed a complaint with the ABA’s Section of Legal Education and Admissions to the Bar in January—was informed by letter on April 6 that the complaint survived an initial review by ABA administrators and has been referred to the organization’s accreditation committee for consideration.

FreeBYU’s complaint alleges that the university’s policy of expelling students who leave the Mormon faith runs afoul of ABA rules meant to protect against religious discrimination. Additionally, the group says the university honor code, which bans homosexual behavior, violates the accreditor’s protections of gay, lesbian and transgender students. ...

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April 19, 2016 in Legal Education | Permalink | Comments (1)

Law School Dean Completes Boston Marathon 8 Months Pregnant

WaynePress Release, Wayne Law Dean Completes Boston Marathon 8 Months Pregnant:

Jocelyn Benson, dean of Wayne State University Law School in Detroit, today became one of only a handful of women in history to complete the Boston Marathon in her eighth month of pregnancy.

Benson, 38, of Detroit completed the nation's most-prestigious marathon in 6 hours, 12 minutes, 32 seconds.

She planned to run Boston again, and she qualified at the San Diego Marathon in May with a time of 3 hours, 37 minutes.

"I found out in September that I was accepted to run in Boston, and I found out a month later that I was pregnant," Benson said. "Initially, I thought that eight months would be too far along for me to compete. But then I read a story about Amy Kiel, who had my same due date, was in her mid-thirties and had finished Boston in 2015. Her story inspired me to realize what seemed impossible was possible. So, I started training and, with the blessing of my doctor, flew to Boston to run."

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April 19, 2016 in Legal Education | Permalink | Comments (6)

Law School Rankings By Employment Outcomes:  California

Following up on Sunday's post, Law School Rankings By Employment Outcomes: New York And D.C./Maryland/Virginia:  Derek Muller (Pepperdine) blogs legal employment outcomes among California's 21 ABA-accredited law schools.  Stanford (92.3%, 8 law school funded jobs (LSF)), UCLA (91.3%, 34 LSF), and UC-Berkeley (91.0%, 11 LSF) are head and shoulders above the other California law schools in "total placement" (per U.S. News).

April 19, 2016 in Law School Rankings, Legal Education | Permalink | Comments (2)

Inversions And Viagra

Two very different takes on the Obama Administration's new anti-inversion rules:

Letter From 18 Former Treasury Officials To Treasury Secretary Lew (Apr. 18, 2016)

April 19, 2016 in Tax | Permalink | Comments (1)

Death Of Les Snyder

SnyderTax Prof Lester B. Snyder (San Diego) died on April 11 at the age of 87 (obituary; condolences; memorial gifts).  From San Diego Dean Stephen Ferruolo:

Professor Snyder began his long legal career in 1956 in legal practice in Boston, during which he served as a consultant to attorneys and accountants on tax issues.  He moved to academia in 1957 with an appointment to the law faculty of the University of Connecticut.  He remained at Connecticut until 1983 and held emeritus status.  During a leave of absence from 1968 to 1969, Professor Snyder was Professor-In-Residence in the Tax Division of the U.S. Department of Justice, where he represented the Internal Revenue Service in tax litigation before federal courts. 

Professor Snyder joined the faculty of University of San Diego School of Law in 1983. From 1983 to 1989, he was the director of the graduate tax program. He retired from faculty in 2009. During his 26 years at USD, Professor Snyder taught mostly in the field of tax law, including federal income tax, taxation of corporations and partnerships, tax accounting, federal tax policy, business planning, estate and gift tax planning, and state and local taxation.  Through his teaching, scholarly reputation and leadership, he established the foundation of our graduate tax program.

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April 19, 2016 in Legal Education, Obituaries, Tax | Permalink | Comments (0)

Welcome To The Tax Prof Blogosphere:  The Surly Subgroup

Welcome to the Tax Prof blogosphere, The Surly Subgroup: Tax Blogging on a Consolidated Basis, with Jennifer Bird-Pollan (Kentucky), Sam Brunson (Loyola-Chicago), Philip Hackney (LSU), David Herzig (Valparaiso), Stephanie Hoffer (Ohio State), Leandra Lederman (Indiana), Benjamin Leff (American), Diane Ring (Boston College), and Shu-Yi Oei (Tulane).  From their inaugural post:

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April 19, 2016 in Tax | Permalink | Comments (3)

The IRS Scandal, Day 1076

IRS Logo 2The Blaze, White House Responds to House GOP Calls to Impeach IRS Commissioner:

President Barack Obama has full confidence in Internal Revenue Service Commissioner John Koskinen, even as House Republicans are calling for his impeachment over failing to comply with congressional subpoenas.

“Of course he does” have confidence in Koskinen, White House press secretary Josh Earnest told TheBlaze Monday.

Last week, a group of House Republicans went to the House floor to call for Koskinen’s impeachment. Last year, Republicans on the House Oversight and Government Reform Committee called for charges against the commissioner.

Republicans say Koskinen also failed to testify truthfully and failed to make congressional investigators aware evidence was missing as part of the probe into the IRS targeting of Tea Party and conservative groups — which first came to light in 2013.

Still, Earnest scoffed at the notion of impeachment: “It is ridiculous for Republicans in Congress who seek to gut funding for the IRS, in some cases they call for the outright abolition of the agency, to be a fair arbiter of the effectiveness of the IRS commissioner.”

“The fact is, Mr. Koskinen has an extraordinarily difficult job, and it’s made only more difficult because Republicans seek to cut the funding of the agency,” Earnest continued. “He is someone who undertakes that work with a lot of professionalism and seriousness of purpose, and he deserves our gratitude.”

Breitbart, White House: Republican Calls For IRS Commissioner To Resign ‘Ridiculous’

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April 19, 2016 in IRS News, IRS Scandal, Tax | Permalink | Comments (2)

Monday, April 18, 2016

Blair-Stanek Presents Two Tax Papers Today At Oxford

Blair-Stanek (2016)Andrew Blair-Stanek (Maryland) presents Intellectual Property Law Solutions to Tax Avoidance, 62 UCLA L. Rev. 2 (2015), and Just Compensation for Intellectual Property, 58 Ariz. L. Rev. ___ (2016), at Oxford University today as part of a multidisciplinary workshop on the Technical and Practical Feasibility for a Data Levy:

Multinational corporations avoid taxes on a massive scale by transferring their intangible property -- including data and copyrighted data-derivatives -- to tax havens for artificially low prices. Tax agencies have failed to stop this avoidance, which takes advantage of international tax law norms enshrined in thousands of bilateral tax treaties. These two articles propose an alternative approach: fight this tax avoidance by focusing instead on the law governing the intangible property itself.

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April 18, 2016 in Colloquia, Scholarship, Tax | Permalink | Comments (0)

Call For Papers:  Taxation And Migration Conference At Saint Louis

St. Louis (2016)Call for Papers:  Sanford E. Sarasohn Conference on Critical Issues in Comparative and International Taxation II: Taxation and Migration at Saint Louis University School of Law:

As ever growing numbers of individuals seek economic and political refuge in Europe and North America, and increasing numbers of individuals and businesses seek refuge from the tax burdens of their home jurisdictions in lower tax jurisdictions, these in- and out- migrations strain the national economies of affected countries causing them to modify their taxation rules and structures. This conference will explore the effects of taxation on migration and the effects of migration on taxation. Papers on any topic related to taxation and migration of individuals or entities are welcome but those offering a critical perspective or addressing the impact of taxation on, and taxation changes relating to acceptance of, migrants from conflict areas are preferred. Please submit paper proposal abstracts by e-mail to Professor Henry Ordower at ordoweh@slu.edu no later than May 25, 2016. Notification of proposal acceptance is targeted for July 1, 2016.

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April 18, 2016 in Conferences, Scholarship, Tax | Permalink | Comments (0)

U.S. Wealth And Income Inequality

Markus Poschke (McGill) & Barış Kaymak (Université de Montréal),  US Wealth Inequality: Quantifying the Driving Factors:

Following the publication of Thomas Piketty’s 696-page tome, Capital in the Twenty-First Century, economic inequality is still at the forefront of public debate. In 2015, it has shifted its focus from the distribution of income to that of wealth, as new measures show that the wealthiest have claimed an increasingly larger share of total wealth in recent decades. In their study of US tax records, Saez and Zucman (2015) estimate the share of wealth owned by the wealthiest 1% of tax units (a concept close but not identical to a household) to be 42% in 2012, up from 28% in 1960 (see the blue line in Figure 1).

Figure 1

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April 18, 2016 in Tax | Permalink | Comments (4)

ABA Tax Section Announces 2016-18 Public Service Fellows

ABA Tax Section Logo (2012)The 2016-2018 Christine A. Brunswick Public Service Fellowship Class:

  • Laura LaPrade, a recent graduate of the University of the District of Columbia David A. Clarke School of Law, will be working with Community Tax Aid, Inc., in Washington, DC.
  • Catherine Strouse, who earned her J.D. from Gonzaga University School of Law and an LL.M. in Taxation from the University of San Diego School of Law, will be working with the Legal Aid Society of San Diego.

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April 18, 2016 in ABA Tax Section, Legal Education, Tax | Permalink | Comments (0)

States With The Highest And Lowest Tax Rates

Taxpayer-blue-vs-red-imageWallet Hub, 2016’s States with the Highest & Lowest Tax Rates:

As this year’s tax-filing deadline — April 18 in most states — looms closer, it’s fair to wonder which states have the most and least burdensome tax rates. WalletHub’s analysts searched for answers, comparing state and local tax rates in the 50 states and the District of Columbia against the national median. To illustrate, we calculated relative income-tax obligations by applying the effective income-tax rates in each state and locality to the average American’s income. This approach contrasts with our methodology for the Best States to Be Rich & Poor from a Tax Perspective, which considers tax obligations relative to the average income in each state.

Scroll down for the complete ranking, commentary on state- and local-tax insights from a panel of leading minds in the field, as well as a full description of our methodology.

Source: WalletHub

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April 18, 2016 in Tax | Permalink | Comments (1)

Princeton Review's Best 173 Law Schools (2016 Edition)

Princeton 2The Princeton Review has published the 2016 edition of The Best 173 Law Schools (press release) (FAQs) (methodology):

The Princeton Review surveyed over 19,700 students attending the 173 law schools.  The 80-question survey asked students to rate their schools on several topics and report on their experiences at them. Some ranking list tallies also factored in school-reported data.

Best Professors:  Based on student answers to survey questions concerning how good their professors are as teachers and how accessible they are outside the classroom.

  1. Duke
  2. Boston University
  3. Virginia
  4. Washington & Lee
  5. Chicago
  6. Pepperdine
  7. St. Thomas (Minnesota)
  8. Stanford
  9. Samford
  10. Charleston

Best Quality of Life:  Based on student answers to survey questions on: whether there is a strong sense of community at the school whether differing opinions are tolerated in the classroom, the location of the school, the quality of social life at the school, the school's research resources (library, computer and database resources).

  1. Virginia
  2. Vanderbilt
  3. St. Thomas (Minnesota)
  4. NYU
  5. Florida State

Best Classroom Experience:  Based on student answers to survey questions concerning their professors' teaching abilities and overall accessibility outside of the classroom, the balance of theory and practical skills in the curricula and the range of courses available, the level of tolerance for differing opinions in class discussion, and their assessments of research resources available.

  1. Stanford
  2. Virginia
  3. Chicago
  4. Northwestern
  5. Duke

Best Career Prospects:  Based on school reported data and student surveys. School data include: the median starting salaries of graduating students, the percent of students employed in a job that requires bar passage (and not employed by the school) and the percent of these students who pass the bar exam the first time they take it. Student answers to survey questions on: how much the law program encourages practical experience; the opportunities for externships, internships and clerkships, and how prepared the students feel they will be to practice the law after graduating.

  1. Pennsylvania
  2. NYU
  3. Chicago
  4. Stanford
  5. Columbia

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April 18, 2016 in Law School Rankings, Legal Education | Permalink | Comments (4)

FiveThirtyEight:  Everyone Files Their Taxes At The Last Minute

538 (2015)FiveThirtyEight, Everyone Files Their Taxes At The Last Minute:

Americans are a nation of procrastinators. Our tax returns prove it.

Last year, 21.5 million Americans waited until the last minute – or at least the last week – to submit their tax returns. That’s roughly one in seven filers, according to data from the Internal Revenue Service.

538-2

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April 18, 2016 in IRS News, Tax | Permalink | Comments (2)

IRS Continues To Put Taxpayer Confidential Data At Risk By Not Following 94 GAO Recommendations To Improve Security

GAO (2016)Government Accountability Office, IRS Needs to Further Enhance Controls over Taxpayer and Financial Data (GAO-16-590T):

In March 2016 GAO reported that the Internal Revenue Service (IRS) had instituted numerous controls over key financial and tax processing systems; however, it had not always effectively implemented safeguards intended to properly restrict access to systems and information. In particular, while IRS had improved some of its access controls, weaknesses remained with identifying and authenticating users, authorizing users' level of rights and privileges, encrypting sensitive data, auditing and monitoring network activity, and physically securing its computing resources. These weaknesses were due in part to IRS's inconsistent implementation of its agency-wide security program, including not fully implementing GAO recommendations. The table below shows the status of prior and new GAO recommendations as of the end of its fiscal year (FY) 2015 audit of IRS's information security. GAO concluded that these weaknesses collectively constituted a significant deficiency for the purposes of financial reporting for fiscal year 2015. Until they are effectively mitigated, taxpayer and financial data will continue to be exposed to unnecessary risk.

GAO

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April 18, 2016 in Gov't Reports, Tax | Permalink | Comments (0)

The IRS Scandal, Day 1075

IRS Logo 2Utah Policy, Ryan, Chaffetz Part Ways over Impeachment of IRS Chief:

Reps. Paul Ryan and Jason Chaffetz both believe IRS Commissioner John Koskinen should be fired, but they disagree about the timing. Chaffetz wants to remove Koskinen now, while Ryan says the GOP must win the White House first.

Reports Roll Call:

Oversight Committee Chairman Jason Chaffetz, R-Utah, with support from a majority of Republicans on his panel, introduced a resolution in October to impeach Koskinen. “The framers [of the Constitution] gave us a safety valve to get rid of somebody who is not serving the best interest of the nation and clearly John Koskinen is not,” Chaffetz said in a brief interview Thursday. “His record is clear and he should be removed from office.”

The resolution argues that Koskinen failed to comply with a subpoena requesting certain IRS documents and that he provided false and misleading information to Congress about missing emails sent to and from former IRS official Lois Lerner, a lead figure in the targeting scandal. The Judiciary Committee, which has jurisdiction over impeachments, has not acted on the resolution.

Lerner, the former head of the IRS tax-exempt organizations division, retired from the agency in September 2013. She had been on administrative leave since May 2013 after she revealed during a tax conference that the agency had inappropriately used political terms like “Tea Party” to filter tax-exemption applications for extra scrutiny.

The IRS has said it disputes the resolution's allegations and that it has cooperated with congressional investigations.

Chaffetz said he is working to build broad support for his resolution, which currently has 62 Republican co-sponsors. “It hasn’t been done in 140 years to impeach a civil officer,” Chaffetz said when asked about resistance from colleagues to support the effort. “But we think we’re on firm ground. It is in the Constitution.”

As to Ryan’s idea of waiting for Republicans to win the White House, Chaffetz said, “That’s one path, but I want the bureaucracy to know that if they do something as reprehensible as destroying documents there is an action that Congress can take.”

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April 18, 2016 in IRS News, IRS Scandal, Tax | Permalink | Comments (2)

TaxProf Blog Weekend Roundup

Sunday, April 17, 2016

Law School Rankings By Employment Outcomes:  New York And D.C./Maryland/Virginia

Derek Muller (Pepperdine) has two great posts on visualizing legal employment outcomes among New York's 15 law schools and D.C/Maryland/Virginia's 16 law schools

In New York, Columbia (98.8%, goosed by 31 law school funded jobs (LSF)), NYU (96.7%, 39 LSF), and Cornell (95.5%, 11 LSF) again are head and shoulders above the other New York law schools in "total placement" (per U.S. News).  Cardozo (76.8%, 1 LSF) and Fordham (76.1%, 0 LSF) surprisingly trail St. John's (81.9%, 0 LSF) and Albany (80.3%, 0 LSF).

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April 17, 2016 in Law School Rankings, Legal Education | Permalink | Comments (2)

NY Times:  The Real Welfare Cheats

OxfamNew York Times op-ed:  The Real Welfare Cheats, by Nicholas Kristof:

We often hear how damaging welfare dependency is, stifling initiative and corroding the human soul. So I worry about the way we coddle executives in their suites.

A study to be released Thursday says that for each dollar America’s 50 biggest companies paid in federal taxes between 2008 and 2014, they received $27 back in federal loans, loan guarantees and bailouts.

Goodness! What will that do to their character? Won’t that sap their initiative?

The study was compiled by Oxfam and it comes on top of a mountain of evidence from international agencies and economic journals underscoring the degree to which major companies have rigged the tax code. ... The Oxfam report says that each $1 the biggest companies spent on lobbying was associated with $130 in tax breaks and more than $4,000 in federal loans, loan guarantees and bailouts. ...

One academic study [Kimberly Clausing (Reed College), The Effect of Profit Shifting on the Corporate Tax Base in the United States and Beyond] found that tax dodging by major corporations costs the U.S. Treasury up to $111 billion a year. ... The Panama Papers should be a wake-up call, shining a light on dysfunctional tax codes around the world — but much of the problem has been staring us in the face. Among the 500 corporations in the S.&P. 500-stock index, 27 were both profitable in 2015 and paid no net income tax globally, according to an analysis by USA Today. ...

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April 17, 2016 in Tax | Permalink | Comments (5)