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Tuesday, April 7, 2015

South Dakota Seeks to Hire Tax Clinic Director

South Dakota 2The University of South Dakota School of Law seeks to hire a Low Income Taxpayer Clinic (LITC) Director:

The position is non-tenure track and paid out of a federal grant beginning July 2015. Continued employment is contingent on availability of grant funding.

The Director will lead the only LITC in South Dakota. Responsibilities will include representing low-income taxpayers before the IRS and the U.S. Tax Court, teaching and supervising clinical law students in the representation of clients, engaging in outreach to South Dakota communities, developing and coordinating a panel of pro bono attorneys, managing the LITC's docket, and ensuring compliance with the requirements of an IRS-funded LITC.

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April 7, 2015 in Legal Education, Tax, Tax Prof Jobs | Permalink | Comments (0)

The IRS Scandal, Day 698

IRS Logo 2Forbes, Despite Lois Lerner Pass, Judge Orders IRS To Release Key Target List Administration Blocked, by Robert W. Wood:

A federal judge, Judge Susan J. Dlott—ironically in Cincinnati, where the Obama administration’s first bumbling explanation for targeting was “rogue IRS agents”—has ordered the IRS to produce a list of all 298 conservative nonprofits the IRS targeted. ‘Huh, what targeting?’ one can imagine Justice Department officials mumbling. Mr. Obama’s Justice Department fought to keep the list private despite promises his would be the most transparent administration ever.

The lawsuit by conservative groups could end up certified as a class action for violating their constitutional right to equal treatment. The judge determined that the litigants were entitled to know so the judge ordered the IRS to release the list of targeted Tea Party groups. If the judge also certifies the case as a class action, the disclosures could be broader still.

The timing is propitious, coming just as Targeter in Chief Lois Lerner was exonerated by the Obama administration. It has confirmed in a tortured seven-page letter that there will be no criminal charges for Lois Lerner. Meanwhile, controversial IRS Commissioner John Koskinen recently claimed that the changes at the IRS are so significant that “you could hang a sign out at the front of the headquarters saying ‘Under New Management.’” That’s right, any alleged targeting was in the past. ...

On February 26, 2015, the Treasury Inspector General said he is investigating possible criminal activity at the IRS. Remember all the millions and millions in taxpayer money spent looking? One report said over 250 IRS employees spend 100,000 hours, costing taxpayers at least $14 million. IRS Commissioner John Koskinen testified that recovery efforts had been thorough, and the tapes and emails couldn’t be found.

Yet the Inspector General now reports that the IRS had not even asked for the backup tapes when the ‘hard drive crash’ excuse was first used. The tapes were easy to find and the emails were easy to recover. It is astounding, and yet Democrats still pooh-pooh the targeting and imply it is the fault of the conservative groups in the first place. ...

[N]ow Judge Susan J. Dlott has said that Tea Party groups can pursue their claims that the IRS violated their First and Fifth Amendment rights, along with a section of federal law that prohibits the government from releasing private information contained in tax returns. The lawsuit wants a list of ‘all dissenting groups targeted for additional scrutiny by the IRS from January 20, 2009, through July 15, 2013.’ The court said this information was “directly related to the issue of class certification in this federal court proceeding.”

Some names on the list will be no surprise, as a partial list was unearthed by USA Today in September 2013. An IRS spreadsheet characterized the activities of some groups as “propaganda.” Judge Dlott ordered the IRS to tell the court whether or not that list was authentic, The Washington Times reported. It sad to see the IRS used for political purposes, and sad to see the endless difficulty private parties and Congress have had getting answers. Perhaps that will change.

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April 7, 2015 in IRS News, IRS Scandal, Tax | Permalink | Comments (5)

Monday, April 6, 2015

Fleischer Presents Libertarianism and the Charitable Tax Subsidies Today at Pepperdine

MirandaMiranda Perry Fleischer (San Diego) presents Libertarianism and the Charitable Tax Subsidies at Pepperdine today as part of our Tax Policy Colloquium Series:

Although many Americans claim to subscribe to libertarian theories of justice, tax scholarship is largely silent about the interaction between libertarian principles and the structure of our tax system. This is not surprising, for what springs to mind when a legal academic hears the word “libertarianism” is Robert Nozick’s argument that taxation is slavery. If all taxation is indeed slavery, why bother analyzing libertarian principles for insights into our tax system? This dismissal, however, ignores the diversity of libertarian thought. To that end, this Article mines the nuances of libertarian theory for insights into one feature of our tax system: the charitable tax subsidies.

Exploring the nuances of libertarian theory yields some surprising results. Some strands of libertarian thought suggest that the charitable tax subsidies are in and of themselves illegitimate. These strands of libertarianism forbid not only redistribution but also anything except the most minimal provision of public goods needed to protect life and property, such as defense. Yet several other strands do see a role for the state to engage in a varying amount of redistribution or to provide varying amounts of public goods. On one spectrum are interpretations that admit that the state should play a role in providing public goods (strictly defined) and/or provide a provide a safety net to the very poorest but no more, and on the other is an interpretation of left-libertarianism that might support something akin to our current structure.

Update:  Post-presentation lunch:

Fleischer Lunch

April 6, 2015 in Colloquia, Scholarship, Tax | Permalink | Comments (0)

Scamming the IRS With Losing Lottery Tickets

IRSThe Daily Beast, Scamming the IRS With Losing Lotto Tix:

Here’s one way to dodge the taxman—buy thousands of losing lottery tickets.

It’s true. Gamblers have concocted a scheme to repurpose the dud ducats to offset their winnings. A winner can go online and get $5,000 worth of losing lottery tickets to cover their $5,000 in gambling winnings. The lottery tickets serve as a sort of security blanket if the auditor comes calling.

Ads captured on Craigslist and eBay from Florida to California hawk the tickets so the potential lotto buyer can defraud Uncle Sam. ...

“There is a gray market out there for these lottery tickets,” said Reece Morrel Jr., an Oklahoma-based CPA who files taxes for some high rollers and oversees the online Lady Luck Diary website, where gamblers can get schooled on tax laws.

But hoarding stacks of scratchers or Powerball game tickets to prove that you suffered losses could very well land you in trouble with the IRS. ...

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April 6, 2015 in IRS News, Tax | Permalink | Comments (3)

HBO’s ‘Going Clear’ Triggers New Scrutiny of Scientology’s Tax-Exempt Status

Scientology 2The Wrap, HBO’s ‘Going Clear’ Triggers New Scrutiny of Scientology’s Tax-Exempt Status:

HBO’s Sunday airing of documentary film “Going Clear” has reignited interest in the tax-exempt status afforded the Church of Scientology by its classification as a nonprofit.

In fact, actress Mia Farrow tweeted damning words about the organization and shared a petition to revoke its tax-exempt status to her more than 640,000 followers on Monday.

“#Scientology is a thuggish, dangerous, cruel cult. Sign petition to revoke their tax exempt status https://petitions.whitehouse.gov/petition/revoke-scientologys-tax-exempt-status … #GoingClear,” she wrote.

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April 6, 2015 in Tax | Permalink | Comments (0)

Morse Reviews Bird, Edwards & Shevlin's Does the U.S. System of Taxation on Multinationals Advantage Foreign Acquirers?

JotwellSusan Morse (Texas), Non-U.S. Acquirers: Clients for U.S. Targets' "Locked Out" Earnings? (Jotwell) (reviewing Andrew Bird (Carengie Mellon), Alexander Edwards (Toronto) & Terry Shevlin (UC-Irvine), Does the U.S. System of Taxation on Multinationals Advantage Foreign Acquirers?:

Did Burger King submit to acquisition by a Canadian donut chain for tax reasons? Or, at least, once Burger King and Tim Hortons decided to merge, did they choose to have a Canadian parent for tax reasons? A recent empirical study by Andrew Bird, Alexander Edwards and Terry Shevlin suggests that one tax factor—the existence of “locked out” offshore earnings—increases the likelihood that a non-U.S. acquirer will acquire a U.S. target. Bird, Edwards and Shevlin analyze thousands of merger transactions, without regard to whether the transactions might be labeled “inversions.” Their paper contributes to the considerable literature that tests the idea that accounting and tax disparities affect firm prices and transaction decisions. ...

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April 6, 2015 in Scholarship, Tax | Permalink | Comments (0)

The IRS Scandal, Day 697

IRS Logo 2Legal Insurrection, Judge Orders IRS to Release Tea Party Target List:

If Bush had done this to liberals, people would be in jail by now.

The Department of Justice may have let Lois Lerner off the hook, but a judge has ordered the IRS to release the names of the Tea Party groups that were singled out for scrutiny. ..

I still enjoy wondering how different this would be if it happened on Bush’s watch. Do you think the media might be more interested?

Hot Air, Judge Orders IRS to Release List of Targeted Conservative Nonprofit Groups:

Lois Lerner didn’t care to speak when she was invited for tea before congressional committees, and it turns out that no charges will be filed against her over her shyness. But that may not be the end of the story for the IRS scandal. A judge in Ohio has consented to a request filed by representatives of several Tea Party groups which calls for the IRS to turn over the full list of conservative groups selected for extra special scrutiny when they filed for nonprofit status. ...

There are several layers to this particular onion. The White House fought back from day one against any such disclosures, saying that releasing the requested information would require exposing private data which the IRS is forbidden to reveal. But that’s only intended to protect individuals, businesses and groups from having all the particulars about their internal business exposed, not the simple fact that they exist and pay taxes. In this suit, rather than asking for all of the numbers, the IRS is simply being asked to provide a spreadsheet containing the identities of the groups under scrutiny. The judge agreed that the case couldn’t be decided without that bare minimum data.

More interesting are the possibilities which follow if the data finally comes to light. If the groups can establish that they all fall under the same umbrella of potential discrimination, they can be bound together in a class action suit. This opens up a range of possibilities, including the hope that the secretive agency will be forced to expose their practices to the public.

Exit question: The Feds are, at this point, refusing to go after Lerner. If this suit succeeds and all of the internal workings of the system are brought to light, including how they selected the groups singled out for “special attention” in the application process, is there another bite at the apple in the offing? Could Lerner wind up back before Congress? And if so, will she just plead the 5th again?

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April 6, 2015 in IRS News, IRS Scandal, Tax | Permalink | Comments (4)

TaxProf Blog Weekend Roundup

Sunday, April 5, 2015

The Top 5 Tax Paper Downloads

The IRS Scandal, Day 696

IRS Logo 2National Review, Making the Lois Lerner Problem Disappear, by Hans von Spakovsky:

On March 31, Ronald Machen, the outgoing U.S. attorney for the District of Columbia, wrote House Speaker John Boehner to inform him that the Justice Department would not present Lois Lerner’s contempt citation to a federal grand jury.

The letter explaining his decision is an exercise in misdirection—the kind of misdirection that magicians use to fool an audience. Why? Because at no point in his detailed, seven-page legal analysis does Machen mention the most important point demonstrating that Lerner did, in fact, waive her Fifth Amendment right. ...

In the March 31 letter, although acknowledging that the House Committee found that Lerner’s “opening statement was the equivalent of ‘voluntary’ testimony,” Machen concludes that, in declaring her innocence, Lerner did not waive her Fifth Amendment privilege because “case law establishes that Ms. Lerner’s general denials of wrongdoing did not amount to ‘testimony’ about the actual facts under the Committee’s review.”

Having decided that Lerner did not waive her Fifth Amendment privilege, Machen goes on to claim that it is within his discretion not to present the House’s May 7 contempt citation to a federal grand jury. He bases that claim on his reading of a 1984 legal opinion from the Justice Department’s Office of Legal Counsel. That despite the federal law, which provides that, once the House of Representatives has voted to find a witness in contempt, the speaker of the House must certify the matter to the “appropriate United States Attorney, whose duty it shall be to bring the matter before the grand jury for its action” (emphasis added).

Although this is debatable from a legal standpoint, and lawyers can disagree on whether Lerner’s declaration of innocence at the public hearing was or was not testimony that waived her Fifth Amendment privilege, what is not debatable is that there is a gaping hole in Machen’s recitation of the facts and his legal analysis.

According to The Wall Street Journal, right after Lerner’s frustrating March 5, 2014 appearance before the House committee, her lawyer, William Taylor III, told reporters at a press conference that Lerner had given a “lengthy interview” to Justice Department prosecutors “within the last six months, as part of the agency’s investigation into IRS targeting of conservative tea-party groups.” Taylor even admitted that Lerner had freely given DOJ her testimony without getting any promise of immunity from prosecution.

Why is this significant? Because, if Taylor is to be believed, Lerner obviously did not assert her Fifth Amendment privilege when she gave Justice prosecutors a “lengthy interview” about the very subject she had been subpoenaed to discuss with the House Oversight and Government Reform Committee. While the prevailing rule in most federal courts is that a waiver of the Fifth Amendment privilege at one proceeding does not carry through to another proceeding, that is not the rule in the District of Columbia. ...

Ignoring highly relevant, although perhaps inconvenient, facts, outgoing U.S. Attorney Ronald Machen has issued a flawed legal analysis. It reaches an erroneous, but politically expedient, conclusion—one that gives Lerner a pass and further hinders congressional efforts to get to the bottom of this scandal. It’s a pretty slick trick. No wonder Machen’s pulling a disappearing act.

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April 5, 2015 in IRS News, IRS Scandal, Tax | Permalink | Comments (1)

Saturday, April 4, 2015

18th Annual Critical Tax Theory Conference Concludes Today at Northwestern

Northwestern (2014)The 18th Annual Critical Tax Theory Conference concludes today at Northwestern:

Critical tax scholarship aims at looking beyond the language of the Code and regulations to examine what the tax law actually does. It has roots in critical legal studies generally, and therefore Critical tax scholars frequently ask why the tax laws are the way they are and what impact tax laws have on historically disempowered groups, such as people of color; women; lesbian, gay, bisexual, and transgendered individuals; low-income and poor individuals; the disabled; and nontraditional families. But Critical tax scholarship is not limited either to those topics or to any particular methodology.

Critical tax scholarship shares the following goals: (1) to uncover bias in the tax laws; (2) to explore and expose how the tax laws both reflect and construct social meaning; and (3) to educate nontax scholars and lawyers about the interconnectedness of taxation, social justice, and progressive political movements. Critical tax scholars employ a variety of methods to achieve these goals such as bringing "outsider" perspectives to the study of tax law; using historical material, contemporary case studies, and personal or fictional narratives to illustrate the practical impact of the tax laws on individuals and groups; interpreting social science and economic data to show how the tax laws impact groups differently; and exploring the interconnectedness of tax laws with economic forces such as the labor market and international financial and political development.

Panel #6:  General Tax Base (Moderator: Alice Abreu (Temple))

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April 4, 2015 in Conferences, Scholarship, Tax | Permalink | Comments (1)

Weekly SSRN Tax Roundup

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April 4, 2015 in Scholarship, Tax, Weekly SSRN Roundup | Permalink | Comments (0)

The IRS Scandal, Day 695

IRS Logo 2Daily Mail, Tea Party Groups Win Round 1 in Court as Federal Judge Demands IRS's List of All 298 Conservative Nonprofits It Targeted:

  • Right-wing groups want court to let them sue the IRS in a class-action lawsuit for violating their constitutional right to equal treatment
  • IRS applied different criteria to right-wing groups, holding up their applications for years while liberal organizations skated through
  • Obama administration fought the release of a list of 298 groups it denied tax-exempt status beginning in 2010, citing privacy concerns
  • Judge in Cincinnati overruled the government and ordered the IRS to hand over the list
  • If court 'certifies' class-action status, the tea party groups will be free to demand emails, phone records and other documents

Additional press and blogosphere coverage:

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April 4, 2015 in IRS News, IRS Scandal, Tax | Permalink | Comments (1)

Friday, April 3, 2015

18th Annual Critical Tax Theory Conference Kicks Off Today at Northwestern

Northwestern (2014)The 18th Annual Critical Tax Theory Conference kicks off today at Northwestern:

Critical tax scholarship aims at looking beyond the language of the Code and regulations to examine what the tax law actually does. It has roots in critical legal studies generally, and therefore Critical tax scholars frequently ask why the tax laws are the way they are and what impact tax laws have on historically disempowered groups, such as people of color; women; lesbian, gay, bisexual, and transgendered individuals; low-income and poor individuals; the disabled; and nontraditional families. But Critical tax scholarship is not limited either to those topics or to any particular methodology.

Critical tax scholarship shares the following goals: (1) to uncover bias in the tax laws; (2) to explore and expose how the tax laws both reflect and construct social meaning; and (3) to educate nontax scholars and lawyers about the interconnectedness of taxation, social justice, and progressive political movements. Critical tax scholars employ a variety of methods to achieve these goals such as bringing "outsider" perspectives to the study of tax law; using historical material, contemporary case studies, and personal or fictional narratives to illustrate the practical impact of the tax laws on individuals and groups; interpreting social science and economic data to show how the tax laws impact groups differently; and exploring the interconnectedness of tax laws with economic forces such as the labor market and international financial and political development.

Panel #1:  Exemptions and Subsidies (Moderator: Evelyn Brody (Chicago-Kent))

  • Neil Buchanan (George Washington), Social Security Is Fair to Future Generations
  • Darryll Jones (Florida A&M), Payments in Lieu of Taxes: The Canary in the Mine of Charitable Property Tax Exemption
  • Richard Schmalbeck (Duke), Declaratory Judgments and Charitable Borders
  • Nancy Shurtz (Oregon) & Maria Di Miceli (IRS), Tax-Exempt Status of Hospitals: Addressing Accountability after the ACA

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April 3, 2015 in Conferences, Scholarship, Tax | Permalink | Comments (0)

Ex-IRS Ethics Office Lawyer Disbarred For … Ethics Violations

Washington Times, Ex-IRS Ethics Office Lawyer Disbarred For … Ethics Violations:

A lawyer who worked in the IRS ethics office was disbarred Thursday by the District of Columbia Court of Appeals, which concluded she misappropriated a client’s funds from a case she handled in private practice, broke a number of ethics rules and showed “reckless disregard for the truth” in misleading a disbarment panel looking into the matter.

The lawyer, Takisha Brown, reportedly had bragged that she would never be punished because her boss would protect her, but an IRS spokesman said Wednesday that she was no longer an employee at the agency.

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April 3, 2015 in IRS News, Tax | Permalink | Comments (7)

The IRS Scandal, Day 694

IRS Logo 2Investor's Business Daily editorial, Lois Lerner Gets Off - Hillary Clinton Breathes Easier:

The Justice Department says Lois Lerner, who used her IRS office to target the Tea Party, didn't waive her Fifth Amendment rights before Congress and won't be prosecuted for contempt over her missing emails. ...

Lois Lerner, poster child for hard-drive crashes and missing emails, won't face charges for contempt of Congress. ... After pleading her innocence at that 2013 hearing, Lerner went on to invoke her Fifth Amendment right to remain silent. This raised the question of whether the Constitution let her remain silent after she was not silent and pleaded her case.

The House decided that no, it doesn't. In May of last year it voted to hold her in contempt of Congress. The Ways and Means Committee went so far as to send the Justice Department a criminal referral with potential charges that could have meant 11 years in jail.

Lerner waived her rights not only when she pleaded her innocence before Congress, but also when she shared with DOJ information she was withholding from Congress.

Hans Von Spakovsky, senior legal fellow at the Heritage Foundation, says government officials can't pick and choose when and where they invoke their Fifth Amendment rights. They can't legally give information to the DOJ that they withhold from Congress. "When Lerner gave a lengthy interview to the government, she waived the Fifth. There's no doubt about it," says Von Spakovsky. "The law is crystal clear here in the District of Columbia."

But not so clear, it seems, to the political wagon circlers at the Justice Department.

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April 3, 2015 in IRS News, IRS Scandal, Tax | Permalink | Comments (0)

Thursday, April 2, 2015

Hickman Presents Treasury's Retroactivity Today at Northwestern

Hickman 2014 2Kristin Hickman (Minnesota) presents Treasury's Retroactivity at Northwestern today as part of its Tax Colloquium Series hosted by Lawrence Zelenak:

In Bowen v. Georgetown University Hospital, the Supreme Court described retroactivity as "not favored in the law" and generally rejected allowing federal administrative agencies to adopt regulations "altering the past legal consequences of past actions."  Unlike most regulatory agencies, Treasury and the IRS are expressly authorized by Congress to adopt regulations with precisely such primary retroactive effect.  Specifically, IRC § 7805(b) grants Treasury and the IRS the power to backdate tax regulations under a variety of circumstances.  Preliminary analysis shows that Treasury and the IRS utilize this authority regularly with little judicial oversight for abuse of discretion.  Using empirical data, this article will explore more fully Treasury and IRS utilization of the authority to adopt retroactively effective regulations interpreting the Internal Revenue Code.

April 2, 2015 in Colloquia, Scholarship, Tax | Permalink | Comments (1)

Lederman Presents Does the IRS Need Reform? Or Does IRS Oversight? Today at DePaul

LedermanLeandra Lederman (Indiana) presents Does the IRS Need Further Reform? Or Does IRS Oversight? at DePaul today as part of its Faculty Workshop Series:

The IRS has a difficult mission and sometimes has failed quite publicly. It last underwent a major structural reform in the late 1990s, in accordance with the Internal Revenue Service Restructuring and Reform Act of 1998. The restructuring imposed major costs on the IRS’s tax collection mission. The reform was spurred in part by horror stories solicited by Congress, to which the IRS could not respond for fear of disclosing confidential taxpayer information. More recently, the IRS did not respond effectively to accusations that it inappropriately scrutinized and delayed the tax-exemption applications of right-wing organizations. Numerous Congressional committees held hearings regarding the alleged targeting, and Congress’s rhetoric was quite partisan.

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April 2, 2015 in Colloquia, Scholarship, Tax | Permalink | Comments (0)

The Historical Origins of the Debt-Equity Distinction

Florida Tax ReviewCamden Hutchison (Wisconsin), The Historical Origins of the Debt-Equity Distinction, 16 Fla. Tax Rev. ___ (2015):

The U.S. tax code favors corporate debt over corporate equity, a distinction long criticized by economists, legal scholars, and other tax commentators as both theoretically and practically unsound. For decades, academics and policymakers from a variety of disciplinary and political backgrounds have argued that this so-called “debt-equity distinction” distorts corporate financing decisions, encourages excess borrowing, and invites troublesome tax-avoidance behavior. Surprisingly, despite widespread critical attention, the origins of this policy remain a mystery. Primarily focused on its contemporary significance, scholars have disregarded the distinction’s past.

This article uses historical evidence to trace the debt-equity distinction’s origins, development, and continuing evolution.

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April 2, 2015 in Scholarship, Tax | Permalink | Comments (0)

Parrillo Reviews Mehrotra's Law, Politics, and the Rise of Progressive Taxation

AjayNicholas R. Parrillo (Yale), Book Review, 101 J. Am. Legal Hist. 1225 (2015) (reviewing Ajay Mehrotra (Indiana), Making the Modern American Fiscal State: Law, Politics, and the Rise of Progressive Taxation, 1877-1929 (Cambridge University Press, 2013)):

This book deserves to be (and, I predict, will become) the standard account of a major transition in the history of American governance: from a tax regime that was predominantly regressive, indirect, and centered on federal customs duties to one far more progressive, direct, and centered on the federal income tax.

Ajay K. Mehrotra's story opens with a survey of American taxation circa 1877. Federal taxation consisted of customs duties on imported goods to protect domestic producers, plus excises on liquor and tobacco. These levies fell (or at least were understood to fall) largely on consumers. At the state and local levels, taxation consisted mainly of a general property tax that nominally covered all property but, in practice, fell on land while allowing financial assets to escape.

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April 2, 2015 in Book Club, Scholarship, Tax | Permalink | Comments (0)

Motro: Scholarship Against Desire

Shari Motro (Richmond), Scholarship Against Desire, 27 Yale J.L. & Human. 115 (2015):

How do ego-driven fears and ambitions influence intellectual life in our law schools? How do law review placements, promotion applications, and faculty workshops skew the questions we law professors ask and the conclusions we reach? In my own case, they led me to frame my last project before tenure — which at its heart is about intimate relationships — through a tax policy analysis. Instead of writing about “sex against desire” I wrote about “preglimony.”  [Preglimony, 63 Stan. L. Rev. 647 (2011).]  I stand behind the result, but the exercise also left me feeling incomplete. This article reflects on the price of strategically motivated scholarship and articulates a vision for what a more authentic ethos may bring to students, to the profession, and to the world we help shape.

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April 2, 2015 in Legal Education, Scholarship, Tax | Permalink | Comments (1)

How the Tax Code Hurts Artists

New York Times op-ed:  How the Tax Code Hurts Artists, by Amy Sohn (author and television writer):

With tax day looming, you can practically hear the cries of creative professionals across the country. That’s because the tax code hits many right where it hurts, by penalizing them for the distinctive way they make money.

The biggest offender is still the alternative minimum tax, despite the American Taxpayer Relief Act of 2012, which brought long-overdue reform. Two provisions of the AMT hit a disproportionate number of actors, screenwriters and directors: In calculating it, taxpayers can’t deduct employee business expenses, nor can they deduct state, local and property taxes.

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April 2, 2015 in Tax | Permalink | Comments (3)

Marian: Reconciling Tax Law and Securities Regulation

Omri Y. Marian (Florida), Reconciling Tax Law and Securities Regulation, 48 U. Mich. J.L. Reform 1 (2014):

IRS SECIssuers in registered securities offerings are required to disclose, among other tax matters, the expected tax consequences to investors that result from investing in the offered securities (“nonfinancial tax disclosure”). I advance three arguments in this regard. First, nonfinancial tax disclosure practice, as sanctioned by the SEC, does not achieve its intended regulatory purposes. Nonfinancial tax disclosures provide irrelevant information, sometimes fail to provide material information, create unnecessary transactions costs, and divert valuable administrative resources to the enforcement of largely-meaningless requirements. Second, I suggest that the practical reason for this regulatory failure is an unsuccessful attempt by tax practitioners and the SEC to address investors’ heterogeneous tax preferences. Specifically, nonfinancial tax disclosure practice assumes the existence of a “reasonable investor” who is also an “average taxpayer”, and tax disclosures are drafted for the benefit of such average taxpayer. The “average taxpayer”, however, is not a defensible construct. Third, the theoretical reason for the dysfunctionality of the regulatory regime is misapplication of mandatory disclosure theory to tax rules. I argue that given the special nature of tax laws, mandatory disclosure theory — even if accepted at face value — does not support current regulatory framework. To remedy this failure, I describe the types of tax-related disclosures that would be supported by mandatory disclosure theory. Under my suggested regulatory reform, nonfinancial tax disclosure will only include issuer-level tax items, (namely, items at the company level not otherwise disclosed in the financial statements), that affect how “reasonable investors” calculate their own individual tax liabilities. Under such a regime, there is no need to rely on the “average taxpayer” construct.

April 2, 2015 in Scholarship, Tax | Permalink | Comments (0)

The IRS Scandal, Day 693

IRS Logo 2On his final day in office as the U.S. Attorney for the District of Columbia, Ronald Machen Jr. sent this 7-page letter to Speaker John Boehner informing him that the Department of Justice will not pursue contempt of Congress charges against Lois Lerner.

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April 2, 2015 in IRS News, IRS Scandal, Tax | Permalink | Comments (6)

Wednesday, April 1, 2015

Repeal, Lawsuit Pose Challenge to FATCA

FATCAWall Street Journal editorial, Checking the IRS Overseas:

Senator Rand Paul this month introduced a bill to repeal Fatca, and a coalition of U.S. taxpayers will soon challenge its constitutionality in federal court. ...

Fatca has created a wave of Americans renouncing their citizenship—a record 3,415 last year, up from 482 on average during the George W. Bush years. A University of Kent study last month concluded that 31% of American expats have considered handing in their passports. “In contrast to what is commonly thought, income is not a key factor,” the study found. More significant are “increasing reporting requirements, fears of ‘draconian’ penalties and increasing inability to hold a bank account.”

For all these costs, Fatca promises little benefit to Washington, unless you think hiring 800 new IRS agents is progress. Even the Obama Administration says the law would capture only $870 million a year in additional tax revenue, which is probably overstated given changes in behavior by Americans and their overseas employers.

Mr. Paul has some backing in the House for his repeal effort, but American expats vote across the 50 states and have little muscle in Congress. Most U.S. residents may not realize that the U.S. is the only developed country that taxes its citizens at U.S. rates no matter where they reside and earn income.

The other challenge to the law is a court case to be filed in May by plaintiffs supported by Republicans Overseas, including Roger G. Johnson, a retired U.S. Army major living in the Czech Republic, and Marc Zell, a lawyer in Israel. Among their claims: Fatca violates Fourth Amendment privacy rights and Eighth Amendment protections against “excessive fines.”

April 1, 2015 in Tax | Permalink | Comments (1)

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April 1, 2015 in About This Blog, Legal Education, Tax | Permalink | Comments (0)

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April 1, 2015 in About This Blog, Legal Education, Tax | Permalink | Comments (0)

The IRS Scandal, Day 692

IRS Logo 2Bloomberg, IRS Chief Says Agency’s High-Profile Mistakes Are Behind It:

The IRS has fixed its errors, such as improper extra scrutiny of Tea Party groups, and they won’t happen again, the tax agency’s commissioner said Tuesday.

“The changes are so significant throughout the agency that you could hang a sign out at the front of the headquarters saying ‘Under New Management,’” Internal Revenue Service Commissioner John Koskinen said in a speech at the National Press Club in Washington.

The IRS has imposed limits to prevent problems such as overspending on conferences and videos, and inappropriate scrutiny of politically oriented nonprofit groups, he said.

“The problems do come from a prior era. We have addressed them so we think they won’t happen again,” he said. “It really is a new day at the IRS. It’s not the IRS of 2010, 2011 or even 2012.”

To bolster his point, Koskinen said 46 percent of the agency’s executives -- including two-thirds of the senior leadership team -- have left since October 2011. While the IRS is a large agency and will always have some problems, the key is to find and address them quickly, he said.

Congress has been investigating the IRS and restricting its budget since May 2013, when the agency revealed it had given extra scrutiny to the applications of Tea Party groups seeking tax-exempt status. Other issues -- including lavish conferences, an embarrassing Star Trek-themed video and bonuses paid to tax-delinquent employees -- emerged after that.

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April 1, 2015 in IRS News, IRS Scandal, Tax | Permalink | Comments (1)

Tuesday, March 31, 2015

Hayashi Presents Phantom Income and the Simple Economics of Paying In Kind Today at Georgetown

HayashiAndrew T. Hayashi (Virginia) presents Taxing Committed Consumption and the Simple Economics of Paying in Kind at Georgetown today as part of its Tax Law and Public Finance Workshop Series hosted by John BrooksItai Grinberg, and David Schizer:

This article explores the effects of taxing committed consumption, that is, consumption which can only be adjusted at a cost. Two examples of committed consumption, housing services from homeownership and future consumption from savings, make up a significant share of many households’ consumption profile. In the presence of adjustment costs, the form in which a tax is remitted—whether the tax is paid “in kind” or not—affects both behavioral responses to and welfare effects of the tax. My analysis quantifies and evaluates these effects, which have been introduced in many tax policy contexts under the heading of taxpayer liquidity concerns. These concerns have shaped tax law and loom large in current debates about wealth taxation, tax accounting, and mark-to-market reforms, but have not been analyzed for their welfare effects.

March 31, 2015 in Colloquia, Scholarship, Tax | Permalink | Comments (0)

Oei Presents Can Sharing Be Taxed? Today at NYU

OeiShu-Yi Oei (Tulane) presents Can Sharing Be Taxed?, 93 Wash. U. L. Rev. ___ (2016) (with Diane M. Ring (Boston College)), at NYU today as part of its Tax Policy Colloquium Series hosted by Daniel Shaviro and Alan Viard:

The past few years have seen the rise of a new model of production and consumption of goods and services, often referred to as the “sharing economy.” Fueled by startups such as Uber and Airbnb, sharing enables individuals to obtain rides, accommodations, and other goods and services from peers via the Internet or mobile application in exchange for payment. The rise of sharing has raised questions about how it should be regulated, including whether existing laws and regulations can and should be enforced in this new sector or whether new ones are needed.

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March 31, 2015 in Colloquia, Scholarship, Tax | Permalink | Comments (0)

The Bipartisan Push For Consumption Taxes As Path For Tax Reform

Wall Street Journal, Tax Proposals Would Move U.S. Closer to Global Norm; Proposals For a Consumption Tax Gain Traction in Both Parties:

U.S. lawmakers on both sides of the aisle increasingly are finding appeal in an ambitious concept for overhauling the nation’s income-tax system: a tax based on consumption, a tool long used around the world.

The tax-writing Senate Finance Committee is giving new consideration to the consumption-tax idea with the hope that its promised boost to economic growth would ease the way to a revamp.

As lawmakers have examined a tax overhaul, “it becomes extremely difficult to see a political path to accomplish it” within the confines of the current income-tax system, said Sen. Ben Cardin (D., Md.), co-chairman of a Finance Committee working group negotiating a possible overhaul of business taxes. As a result, the idea of a consumption tax “is getting a great deal more respect, and it is in the discussions,” he said.

Mr. Cardin introduced legislation last year to create a type of consumption tax known as a value-added tax and at the same time lower business taxes and scrap income taxes completely for lower-income Americans.

Republicans on the working group also are interested in the concept, including a proposal put forward recently by GOP Sens. Marco Rubio of Florida and Mike Lee of Utah. That plan would make several changes to the tax code that would move the nation closer to a consumption-based system. ...

The talks open up a possible new direction in slow-moving discussions about rewriting the U.S. tax system. Enactment of a broad-based federal consumption tax would align the U.S. with a global trend. In the U.S., most of those taxes now are in the form of state and local sales taxes.

WSJ

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March 31, 2015 in Congressional News, Tax | Permalink | Comments (3)

Andrew Sullivan: Blogging Nearly Killed Me

SullivanCNN, Andrew Sullivan: Blogging Nearly Killed Me:

For years, Andrew Sullivan blogged at a prolific rate. ... "The truth is, I had to stop primarily because it was killing me," Sullivan said Sunday night at the 92nd Street Y in Manhattan. "I used to joke that if blogging does kill someone, I would be the first to find out."

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March 31, 2015 in Legal Education, Tax | Permalink | Comments (0)

Robin Williams Left Publicity Rights (Restricted For 25 Years) to Charity, Avoiding IRS Dispute Embroiling Michael Jackson's Estate

WilliamsHollywood Reporter, Robin Williams Restricted Exploitation of His Image for 25 Years After Death:

[O]ne of the more innovative aspects of Robin Williams' estate planning ... might just might become a model for other celebrities preparing for their demise. ... According to a review of the Robin Williams Trust — filed as an exhibit last Wednesday — Williams bequeathed rights to his name, signature, photograph and likeness to the Windfall Foundation, a charitable organization set up by Williams' legal reps at the law firm of Manatt, Phelps.

There are two important facets of this provision.

First, the Trust restricts exploitation of Robin Williams' right of publicity for 25 years after his death. ...

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March 31, 2015 in Celebrity Tax Lore, IRS News, Tax | Permalink | Comments (0)

NY Times: Income Inequality Is Also Bad for Your Health

New York Times, Income Inequality: It’s Also Bad for Your Health:

We know that living in a poor community makes you less likely to live a long life. New evidence suggests that living in a community with high income inequality also seems to be bad for your health.

A study from researchers at the University of Wisconsin Population Health Institute examined a series of risk factors that help explain the health (or sickness) of counties in the United States. In addition to the suspects you might expect — a high smoking rate, a lot of violent crime — the researchers found that people in unequal communities were more likely to die before the age of 75 than people in more equal communities, even if the average incomes were the same.

NY Times 1

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March 31, 2015 in Tax | Permalink | Comments (1)

Joint Tax Committee: Overview Of The Federal Tax System

The Joint Committee on Taxation yesterday released Overview Of The Federal Tax System As In Effect For 2015 (JCX-70-15):

The current Federal tax system has four main elements: (1) an income tax on individuals and corporations (which consists of both a “regular” income tax and an alternative minimum tax); (2) payroll taxes on wages (and corresponding taxes on self-employment income) to finance certain social insurance programs; (3) estate, gift, and generation-skipping taxes, and (4) excise taxes on selected goods and services. This document provides a broad overview of each of these elements. 

JCT

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March 31, 2015 in Congressional News, Tax | Permalink | Comments (0)

The IRS Scandal, Day 691

IRS Logo 2Forbes, How Obama's IRS And Justice Department Killed The Targeting Scandal, by Robert W. Wood:

The IRS applied extra scrutiny because Mr. Obama’s IRS and Justice Department didn’t like the Supreme Court’s decision, presumably fearing that organizations could exercise free speech rights the Supreme Court said they had. Five years later, and two years after the planted bar association question, we remain partly in the dark. Ms. Lerner won’t testify, and we are still told, including by the President of the United States, that there was not a smidgen of corruption at the IRS.

We are told that the IRS is fixed, the targeting will never happen again, and this was not audit targeting anyhow. Some say these organizations shouldn’t be exempt in any event. Now, though, a comprehensive and disturbing report from Politico enumerates the results the IRS has actually achieved despite platitudes from the Obama administration that the system is fixed.

Far from fixed and never happening again, Politico has exposed the seemingly well designed IRS action of death by delay. It is just one more nail in the coffin Professor Paul Caron catalogs in the IRS scandal, now in day 689. Politico painstakingly describes the tale of woe by at least a half-dozen conservative applicants who, amazingly, are still waiting for an answer. The extent of their hardship varies, and some may still receive relief.

Yet we have by now so often been told by IRS Commissioner John Koskinen that the good works of un-targeting the targeted is done. Maybe, but some people are waiting still five years on.  ... Many conservative groups withdrew their applications and gave up. Others changed their names and focus. Some went belly-up while waiting. Of course, in all this recent history, it is worth recalling that in March 2012, former IRS Commissioner Doug Shulman testified there was “absolutely no targeting” by the IRS of conservative and/or Tea Party organizations. On November 9, 2012, Mr. Shulman stepped down as Commissioner, replaced by Steven Miller.

On May 14, 2013, four days after Ms. Lerner’s planted question and feigned lament about it, the Inspector General issued a report confirming targeting. On May 22, 2013, Ms. Lerner professed her innocence, then took the Fifth. Next day, she was placed on administrative leave. On June 20, 2013, the IRS paid $70 million in bonuses. Ms. Lerner received $42,000, and former Commissioner Miller received $100,000.

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March 31, 2015 in IRS News, IRS Scandal, Tax | Permalink | Comments (1)

Monday, March 30, 2015

Thomas Presents User-Friendly Taxpaying Today at Indiana

Thomas (2015)Kathleen DeLaney Thomas (North Carolina) presents User-Friendly Taxpaying at Indiana today as part of its Tax Policy Colloquium hosted by Leandra Lederman:

Our income tax system is notoriously complex. The sheer volume of the tax code, along with the technical nature of its provisions, means that many individuals don’t fully understand the tax rules that apply to them. This Article refers to this type of tax complexity as “substantive complexity.” Although many commentators have argued for reforms that would simplify the substance of our tax laws, others have argued that substantive complexity is necessary if we want to tax each person according to his or her individual circumstances.

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March 30, 2015 in Colloquia, Scholarship, Tax | Permalink | Comments (0)

Mehrotra Presents Corporate Taxation and the Regulation of Early 20th Century American Business Today at Indiana

MehrotraAjay K. Mehrotra (Indiana) presents Corporate Taxation and the Regulation of Early Twentieth-Century American Business (with Steven A. Bank (UCLA)) at Indiana today as part of its Ostrom Political Theory and Policy Analysis Workshop Series:

In the early twentieth century, the taxation of modern business corporations became increasingly important to the development of American democracy. During that time, governments at all levels began to view business corporations not only as sources of badly needed public revenue, but also as potentially dangerous wielders of concentrated economic power. To combat the growing dominance of corporations, many fiscal reformers sought to use corporate taxation as a mode of regulatory governance. This paper explores the motives and intentions of fiscal reformers during critical junctures in the development of early twentieth-century U.S. corporate taxation. It seeks to explain how changing historical conditions shaped corporate tax law and policy. More specifically, this paper investigates why activists at certain times turned to taxation as a mode of corporate control, and why at other times they used tax policy to promote corporate growth. By focusing on the pivotal ideas and actions of key political economists, social commentators, and lawmakers, this paper attempts to answer the question: why did reformers see taxation as a viable form of public control over corporate power?

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March 30, 2015 in Colloquia, Scholarship, Tax | Permalink | Comments (0)

Hayashi: The Legal Salience of Taxation

Andrew T. Hayashi (Virginia), The Legal Salience of Taxation, 81 U. Chi. L. Rev. 1443 (2014):

Before an injury becomes a legal dispute, the injury must be named, a party must be blamed, and a right against that injury must be claimed. What motivates people to do these things and use legal institutions to seek redress? I provide a partial answer to this question, using a unique dataset to identify the effect that the salience of a tax—that is, its psychological prominence—has on whether a taxpayer will use legal means to lighten the tax’s burden. I term this effect its “legal salience.” I find that reducing property tax salience makes homeowners less likely to appeal their property-value assessments, making it more likely that homeowners will remain overassessed and overtaxed. These overtaxed homeowners never perceive—are never able to “name”—their injury and consequently never obtain the relief to which they might be entitled. Moreover, I show that the selective use of appeals caused by legal salience shifts the tax burden to racial minorities, immigrants, and working families with children. Scholars and lawmakers operate as if only substantive law drives the distribution of a tax burden. But I show that legal salience is one of a number of factors that also affects the tax distribution by motivating only certain individuals to seek tax relief, and I argue that tax laws should be evaluated after taking into account the effects of legal salience.

March 30, 2015 in Scholarship, Tax | Permalink | Comments (0)

Bird & Zolt: Fiscal Contracting in Latin America

Richard M. Bird (Toronto) & Eric M. Zolt (UCLA), Fiscal Contracting in Latin America, 67 World Dev. 323 (2015):

Latin America has long been characterized as a region of high income inequality. In recent years, however, many countries have seen a decrease in income inequality and poverty levels and an increase in economic mobility. Fiscal policies have played a role in achieving these results. One important explanation for changing fiscal policies is the increasing economic and political role played by the growing middle class in shaping the level and quality of collective goods and services and the types of taxes and relative tax burdens to fund these expenditures. Through a process we call “fiscal contracting,” less unequal societies may be willing to pay more in taxes for expanded, relatively universal public services.

March 30, 2015 in Scholarship, Tax | Permalink | Comments (0)

Schenk: The Role for Subchapter S in Entity Tax Reform

Deborah Schenk (NYU), Reforming Entity Taxation: A Role for Subchapter S?, 146 Tax Notes 1237 (Mar. 9, 2015):

The article asks whether a role remains for subchapter S in reforming the taxation of corporations. It considers whether all three approaches to taxing entities — subchapters C, K, and S — remain necessary and whether as part of reform, some simplification is possible or desirable. The conclusions are summarized as follows: (1) Corporate tax reform for large publicly held corporations cannot be divorced from individual tax reform — the relationship of rates matters. (2) In the absence of corporate integration (that is, two levels of tax are retained), conduit taxation for some business entities is desirable. (3) While ideally, one uniform system of conduit taxation for entities not subject to subchapter C might be highly attractive, any uniform system complex enough to deal with complicated business arrangements is too complex for simple arrangements. Thus, a two-track conduit system is appropriate. (4) While subchapter S might not have been the design choice ex ante, it has become a coherent and administrable version of a simpler conduit system. (5) Subchapter S should not be turned into subchapter K. 

March 30, 2015 in Scholarship, Tax | Permalink | Comments (2)

Pew: Federal Tax System Seen in Need of Overhaul

Pew Research Center, Federal Tax System Seen in Need of Overhaul:

Chart 1The public sees the nation’s tax system as deeply flawed: 59% say “there is so much wrong with the federal tax system that Congress should completely change it.” Just 38% think the system “works pretty well” and requires “only minor changes.” These opinions have changed little since 2011.

With the April 15 filing deadline approaching, Americans’ top complaint about the tax system is not the amount that they pay in taxes. Rather, it is the feeling that some corporations and wealthy people do not pay their fair share of taxes.

Just 27% are bothered “a lot” by the amount they pay in taxes. By contrast, 64% say they are bothered a lot by the feeling that some corporations do not pay their fair share of taxes, and 61% say the same about some wealthy people failing to pay their fair share. In views of other aspects of the tax system, 44% say they are bothered a lot by the complexity of the system, while just 20% are bothered a great deal by the feeling that some poor people are not paying their fair share of taxes.

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March 30, 2015 in Tax | Permalink | Comments (0)

The IRS Scandal, Day 690

Scientology 2Wall Street Journal, Some Things to Fear in ‘Going Clear’:

Watching Going Clear: Scientology and the Prison of Belief can be a depressing experience, and not just for the two hours in which the HBO documentary runs. The haunting archival imagery—a powerful element here—fades after a few days, and much of what is said has been said before. Yet whether you come away seeing Scientology as a cult that ensnares vulnerable people or as a faith of self-empowerment, the film leaves a terrible taste of too much information. This must be its point, but take heed just the same.

The documentary is based on the 2013 book, Going Clear: Scientology, Hollywood and the Prison of Belief, by Lawrence Wright, who provides on-screen commentary here. It was directed by Alex Gibney, who also made the 2012 HBO documentary Mea Maxima Culpa: Silence in the House of God, about sexual abuse in the Catholic church. ...

As grim and creepy as much of “Going Clear” is, nothing is more disturbing than the account of how Scientology heavies bullied the IRS—using some 2,400 lawsuits and personal investigations of agency officials—into granting Scientology tax-exempt status as a church in 1993. What does it tell you that even back then, some unelected folks in California had more power than members of the U.S. Congress do today as they attempt to investigate the IRS—for using targeting tactics to intimidate people.

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March 30, 2015 in IRS News, IRS Scandal, Tax | Permalink | Comments (0)

TaxProf Blog Weekend Roundup

Sunday, March 29, 2015

The Top 5 Tax Paper Downloads

The IRS Scandal, Day 689

IRS Logo 2Politico, From IRS: 'Death by Delay':

Nearly two years after the IRS was exposed for improperly sidetracking requests for tax exemptions from tea party groups, POLITICO has learned that at least a half-dozen conservative applicants are still waiting for an answer.

This challenges repeated assertions by IRS Commissioner John Koskinen that his embattled agency has “completed” a set of recommendations to fix the problem and address a backlog of nearly 300 applications, some of which had been pending already for three years.

The groups that are still waiting include Karl Rove’s giant Crossroads GPS, which spent at least $26 million against Democrats in the last election cycle. But most of the half dozen are mom-and-pop outfits from New Mexico to New Jersey, run by volunteers out of their own houses and operating at a fraction of Crossroads’ budget.

The years-long delay has gutted these groups’ membership, choked their ability to raise funds, forced them to reserve pots of money for possible back taxes and driven them into debt to pay legal bills. ...

The agency said it cannot comment on specific cases, but it deflected blame, in part, to the Justice Department. When an applicant is suing the IRS, Justice also has a say in whether to issue a final ruling during litigation. Almost all the groups in limbo have taken the IRS to court.

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March 29, 2015 in IRS News, IRS Scandal, Tax | Permalink | Comments (3)

Saturday, March 28, 2015

Low Income Taxpayer Clinic Grant Recipients For 2015

LITC LogoThe IRS announced yesterday (IR-2015-61) that it has awarded $10.25 million in matching grants to 132 Low Income Taxpayer Clinics (LITCs) for the 2015 grant cycle (Jan. 1, 2015 through Dec. 31, 2015). Through the LITC program, the IRS awards matching grants of up to $100,000 a year to qualifying organizations. For the 2015 grant cycle, the IRS awarded LITC grants to 132 organizations. For the full list of grant recipients, see here. For a list of the 39 law school tax clinic grant recipients, and the amount of their grants, see below the fold:

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March 28, 2015 in IRS News, Tax | Permalink | Comments (0)

WSJ: Last-Minute Tax Moves

Wall Street Journal, Last-Minute Tax Moves: As April 15 Nears, Here’s How to Maximize Savings and Avoid Pitfalls:

[D]on’t overpay Uncle Sam by forgoing a tax break to which you are entitled. Here are tips for coping with new and recurring issues this year.

  • Understand the new health-care provisions
  • Beware of new rules on employee stock options
  • Double-check W-2s, 1099s and other income reports
  • Got charitable donations? Get proof.
  • Maximize medical deductions
  • Take the right education break
  • Disclose foreign accounts and payments
  • Update logs and records
  • Gauge the year ahead

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March 28, 2015 in Tax | Permalink | Comments (0)

The IRS Scandal, Day 688

IRS Logo 2Forbes, House Considers Bill To Stop IRS Targeting, Fire IRS Employees Who Do, by Robert W. Wood:

The House Committee on Ways and Means is busy with a bill that could change the IRS. H.R. 709, the Prevent Targeting at the IRS Act, calls for firing IRS employees who take certain official actions for political purposes. The fact that such a bill has been introduced makes you wonder. Isn’t that the law already? Not really.

Everyone wants to feel secure that they will be dealt with fairly by the IRS. The tax system is full of special rules, and no one can master them all. Thus, one taxpayer may be treated very differently from another who is seemingly in the same position. That probably isn’t fair, but don’t confuse this with fundamental procedural fairness and non-discrimination. That is at the heart of the IRS targeting debate, and why the issue is so terribly important to the tax system as a whole. ...

The proposed law would expand the scope of the violation concerning an IRS employee threatening to audit a taxpayer for the purpose of extracting personal gain or benefit. It would also cover an IRS employee who threatens to audit someone for political purposes.

The proposal requires the IRS to terminate an employee who, for political purposes or personal gain, undertakes official action with respect to a taxpayer or, depending on the circumstances, fails to do so, delays action or threatens to perform, delay or omit such official action. An ‘official action’ here would include an audit or examination.

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March 28, 2015 in IRS News, IRS Scandal, Tax | Permalink | Comments (1)

Friday, March 27, 2015

Weekly Tax Roundup