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Saturday, January 10, 2015

The IRS Scandal, Day 611

IRS Logo 2Washington Post, Shrinking IRS Struggles to Keep Up With Growing Number of Tax-exempt Charities:

Remember when conservatives accused the Internal Revenue Service of being too aggressive toward nonprofit tea party groups? Now the agency faces criticism for the opposite problem, this time related to a different type of tax-exempt organization.

An independent review released last month faulted the IRS for scant oversight of charities, saying the agency examined the groups less frequently while its budget and workforce steadily shrank in recent years.

The Government Accountability Office said in its report that the IRS audited 0.7 percent of charities in 2013, down from 0.81 percent in 2011. By comparison, the agency audited individuals and corporations at rates of 1 percent and 1.4 percent, respectively, in 2013.

Meanwhile, the IRS’s budget decreased by $900 billion after 2010, and its workforce lost 10,000 full-time employees over the same period, according to the review. The staff reductions included 47 positions within the IRS’s exempt-organizations division, which examines charities, nonprofit advocacy groups and other entities that qualify for tax-free status. ...

But congressional Republicans, who now represent a majority in both chambers, have shown little desire to boost the IRS’s resources. A comprehensive spending bill lawmakers passed in December trimmed $346 million from the agency’s budget.

It’s worth noting that the IRS has shown little appetite for challenging tax-exempt groups after its tea party controversy, in which the agency was found to have targeted nonprofit advocacy groups based on their names and policy positions.

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January 10, 2015 in IRS News, IRS Scandal, Tax | Permalink | Comments (4)

Friday, January 9, 2015

Weekly Tax Roundup

Weekly SSRN Tax Roundup

Weekly Student Tax Note Roundup

Kamin: How to Tax the Rich

Tax Analysys Logo (2013) David Kamin (NYU),  How to Tax the Rich, 146 Tax Notes 119 (Jan. 5, 2015):

In this article, Kamin reviews options for increasing tax liabilities for the richest Americans. He concludes that several options that have received considerable attention and support are not viable as a practical matter -- taking into account amounts of revenue raised and administrative considerations. Those options include taxing capital gains as ordinary income, annual wealth taxes, and broad mark-to-market accounting. Kamin identifies more viable options, including substantially expanding transfer taxes, increasing the tax rate on ordinary income, and taxing -- at least partially -- unrealized gains at death or gift, which may be the most promising.

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January 9, 2015 in Scholarship, Tax, Tax Analysts | Permalink | Comments (2)

Harvard: Corporate Inversions and Tax Reform

Harvard Law School Logo (2014)Tax Turnaround Time? Proposals For Reversing the Corporate Inversion Trend Bring Home the Need for Tax Reform, Harvard Law Bulletin (Fall 2014):

Last summer, as more American companies like Mylan and Walgreen announced plans to relocate their headquarters overseas to avoid paying U.S. taxes—typically through combining under a new foreign holding company—the issue of “tax inversions” gained increasing attention in the media. Some 75 companies have inverted in the past two decades, most in the last seven years, according to the Congressional Research Service. The Joint Committee on Taxation reports that this has resulted in the loss of as much as $20 billion in tax revenue for the U.S. over the past decade. ...

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January 9, 2015 in Tax | Permalink | Comments (0)

Shanske: The Federal Role in Municipal Debt Finance

Darien Shanske (UC-Davis), The Feds Are Already Here: The Federal Role in Municipal Debt Finance, 33 Rev. Banking & Fin. L. 795 (2014):

Should the federal government be involved in the regulation of municipal debt finance? The answer is arguably not. But this theoretical dispute is not the focus of this Article because, in fact, the federal government already regulates municipal debt finance extensively, generally much more extensively than the states regulate their municipalities’ use of debt. The primary source of federal regulation is the securities laws. Less well-known is that federal tax law also serves as an important constraint. This Article surveys and critically evaluates these federal laws, and comes to three tentative conclusions. First, the current federal oversight “system,” unplanned and ad hoc as it is, has been effective. Second, in part because the current system has never been thought of as a comprehensive system, there are low-hanging fruit in terms of making the system work better. To the extent the federal government does not put these reforms in place, states should. Third, even an optimally operating federal overlay does not absolve the states from more careful regulation of the financial affairs of their localities, particularly as to the use of debt. Above all, what the federal government does not — and ought not — do is provide localities with the expertise to use debt optimally; this is another area where the states should focus their reform efforts.

January 9, 2015 in Scholarship, Tax | Permalink | Comments (0)

The IRS Scandal, Day 610

IRS Logo 2National Review, Ask Lynch About the IRS Scandal:

Confirming a new attorney general is near the top of the new Senate's to-do list. The power not to confirm the president's nominees is near the top of the Republicans' new consignment of political clout. ... They should focus on the president’s AG nominee, Loretta Lynch, and they should refuse to confirm her until she commits to appointing a Special Prosecutor to investigate the IRS.

So long as the Justice Department is controlled by the Obama administration, it's going to obstruct any investigation that might embarrass the White House. ... [T]he IRS’s persecution of Americans of a particular political stripe is far and away the most important scandal of the bunch. It's the defining corruption of the era.

Requiring Lynch to promise a full investigation, headed by a special prosecutor, has ironclad precedent. In 1973, the Senate Judiciary Committee threatened to reject the appointment of Elliot Richardson unless he appointed Archibald Cox as a Watergate special prosecutor. Richardson was confirmed as attorney general on May 25, 1973; a week before that, on May 18, it was announced that "Attorney General-designate Elliot L. Richardson" had appointed Cox, and agreed, per the Judiciary Committee's demands, to give him "an unprecedented degree of independence from Federal interference and influence in investigating and prosecuting the case," according to a contemporaneous report in the Harvard Crimson. (Richardson was a Harvard alumnus.)

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January 9, 2015 in IRS News, IRS Scandal, Tax | Permalink | Comments (4)

Thursday, January 8, 2015

Hasen: Income Taxation and Risk-Taking

David Hasen (Colorado), Income Taxation and Risk-Taking:

The literature on income taxation and risk-taking has tended toward the view that a true, or “normative,” income tax is ineffective at taxing the returns to risk-taking. The theory is that investors increase the size of their portfolios in response to the tax, because the tax causes the government both to absorb a portion of the gains realized from risk-based investment and to subsidize in analogous fashion any losses sustained. When the increased investment makes money, the larger return covers the associated tax liability, and when it loses money, the deduction for the enlarged loss compensates for the excess over the loss that would have been realized in a world without the tax. At the end of the day, the investor is mostly returned to the position he occupied in the non-tax world.

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January 8, 2015 in Scholarship, Tax | Permalink | Comments (0)

Houston Business & Tax Journal Publishes New Issue

HB&TJ The Houston Business & Tax Law Journal has published Vol. 14, Part 1 (2014):

January 8, 2015 in Scholarship, Tax | Permalink | Comments (0)

Judge Goldberg and the Federal Tax Law

William D. Elliott, Judge Irving L. Goldberg and the Federal Tax Law, 46 Tex. Tech. L. Rev. 849 (2014):

From 1966 to 1995, Irving Goldberg served as a judge on the United States Court of Appeals for the Fifth Circuit. ... This Article concerns Goldberg's tax opinions. ... Like Henry Friendly of the Second Circuit, Richard Posner of the Seventh Circuit, and a few other circuit judges who have developed a unique reputation and perhaps even a close identity with a certain area of law, Irving Goldberg placed his personal stamp on federal tax law.

January 8, 2015 in Scholarship, Tax | Permalink | Comments (0)

2014 Tax Person of the Year: Dave Camp

Tax Analysys Logo (2013) The 2014 Tax Person of the Year, 146 Tax Notes 7 (Jan. 5, 2015):

It may be a year or two or several before Congress actually passes tax reform legislation, but the plan released in 2014 by recently retired House Ways and Means Committee Chair Dave Camp, R-Mich., will help set the stage for the next tax code overhaul. The tax community's anticipation and ongoing reaction -- both good and bad -- to Camp's plan has earned him the designation of Tax Notes' 2014 Person of the Year.

Other finalists:

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January 8, 2015 in Tax | Permalink | Comments (0)

Shapiro: Anatomy of a Special Tax Break and the Case for Corporate Tax Reform

Robert J. Shapiro (Georgetown), Anatomy of a Special Tax Break and the Case for Broad Corporate Tax Reform:

This essay provides a case study of the difficulties entailed in reforming the corporate tax code by examining the costs and distortions associated with one large special tax preference, Section 199 of the corporate code. Enacted in 2005, this provision provides a special deduction for some of the profits arising from certain designated “domestic production activities.” Our analysis shows that while the provision was originally intended to help manufacturing, it now provides tax benefits for a number of other, selected industries, including the information industry (including film production), mining, and construction. In many cases, eligibility is arbitrary: For example, food processing qualifies but not retail food businesses – unless the food establishment roasts beans used to brew coffee. At the same time, vital areas such as health care, finance, insurance, and educational services receive no benefit, and neither do many labor-intensive industries such as transportation and warehousing, administration and support, retail trade, and accommodations and food services. From 2005 to 2009, for example, Section 199 provided the information and movie industry, on average, 60 times the benefits received by these other vital and job-intensive industries. And within the manufacturing sector, Section 199 provided by far the greatest benefits, relative to the size of manufacturing sub-industries, to beverage and tobacco producers, followed by chemicals, and then by computer and electronic products. Traditional manufacturing industries such as textiles, apparel, wood products, leather products, printing, and furniture cannot claim significant benefits from Section 199. We also show that that while these allocations distort investment, there is no evidence that the provision promotes job creation in those industries that use it most.

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January 8, 2015 in Scholarship, Tax | Permalink | Comments (0)

Hill: Citizens United and § 501(c)(4) Organizations -- Guidance, Compliance, and Enforcement

Frances R. Hill (Miami), Citizens United and Social Welfare Organizations: The Tangled Relationships Among Guidance, Compliance, and Enforcement, 43 Stetson L. Rev. 539 (2014):

This Article explores the roles of the IRS and the Supreme Court in creating the conditions for the redesign of § 501(c)(4) organizations as campaign finance vehicles, which resulted in the current crisis. Part II discusses the long-term failure of the IRS to issue guidance relating to § 501(c)(4), including its failure to issue any guidance in response to Citizens United. Part III discusses the impact of Citizens United on the structure and operation of § 501(c)(4) organizations. Part IV examines the impact of the Court's insistence in Citizens United that regulatory agencies play a limited role in campaign finance regulation and that tests based on facts and circumstances are themselves constitutionally impermissible burdens on political speech. Part V discusses the response of the reconstituted but not yet reformed IRS. Part VI offers a brief conclusion focused on the challenges going forward.

January 8, 2015 in Scholarship, Tax | Permalink | Comments (0)

The IRS Scandal, Day 609

IRS Logo 2Tribune-Review, BNY Mellon Hires Official Who Headed IRS During Tea Party Targeting:

Bank of New York Mellon hired a former Internal Revenue Service commissioner who modernized the agency's infrastructure but later was the subject of criticism from congressional Republicans over his handling of what they believed was a conspiracy targeting conservative groups.

Douglas Shulman, 47, was appointed senior executive vice president and global head of Client Service Delivery at BNY Mellon and joined the firm's executive committee, the bank said Wednesday.

He will oversee more than 18,500 employees at the world's largest custody bank, BNY Mellon said. He brings experience using technology to manage immense amounts of financial data, most notably in his previous job as commissioner of the IRS from 2008 to 2012. ...

Shulman's time at the IRS has been the subject of political controversy. The agency under his watch was accused of targeting conservative groups seeking a tax exemption. Starting in 2010, an IRS unit picked certain organizations for intensive scrutiny based on their politics, particularly those identifying with so-called Tea Party conservatives, according to a May 2013 report from the Treasury Inspector General for Tax Administration.

Shulman, who was appointed by President George W. Bush in 2008, told Congress before the report was released that there was no targeting happening. Once the general inspector's report emerged, he faced skeptical Republicans on the Senate Finance Committee who said he should have known about the practice and moved to shut it down.

Shulman said he was “dismayed” by the report's conclusions, but he admitted no wrongdoing on his part.

“I certainly am not personally responsible for creating a list that had inappropriate criteria on it,” Shulman told the committee, adding “With that said, this happened on my watch. And I very much regret that it happened on my watch.”

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January 8, 2015 in IRS News, IRS Scandal, Tax | Permalink | Comments (3)

Wednesday, January 7, 2015

Cauble Presents Taxing Publicly Traded Entities Today at Toronto

Cauble (2015)Emily Cauble (DePaul) presents Taxing Publicly Traded Entities at Toronto today as part of its James Hausman Tax Law and Policy Workshop Series:

Publicly traded entities are generally treated as corporations for U.S. tax purposes. Under various exceptions, however, publicly traded entities may obtain special treatment if they earn predominately certain specified types of qualifying income. This Article examines potential rationales for granting special tax treatment to certain publicly traded entities. As the analysis in this Article will show, many of the potential rationales are unconvincing. In addition, to the extent that some rationales may be persuasive, the current rules are not designed in a way that best comports with these potential justifications. Therefore, reform is needed.

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January 7, 2015 in Colloquia, Scholarship, Tax | Permalink | Comments (0)

Miller: Reducing the Corporate Tax Rate and Income Inequality

 David S. Miller (Cadwalader, New York), Reducing the Corporate Tax Rate and Income Inequality:

There is broad consensus about the need to reform the international tax system and reduce the corporate tax rate, but great political difficulty in doing so, largely because of the insistence that any changes be revenue neutral, with the offsetting revenue arising from a repeal of tax expenditures that would disproportionately affect purely domestic corporations and require small businesses to fund the corporate tax reduction.

At the same time, the realization requirement allows the very wealthiest individuals to defer or avoid income tax on their investments and contributes significantly, if not overwhelmingly, to income inequality.

Solving the second problem allows a solution to the first.

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January 7, 2015 in Scholarship, Tax | Permalink | Comments (0)

House Adopts Dynamic Scoring For Tax Bills

Mike Livingston: Tax Prof, Blogger, Fiction Writer

LivingstonTax Prof Michael A. Livingston (Rutgers-Camden) has returned to the blogosphere with From Milan to Mumbai 2.  In one of his first posts, he reveals that he has written three short stories:

  • Avi's Story: A Day in the Life of a Middle-Tier (But In All Other Respects Outstanding) Law Professor:  "[A] brief fiction piece describing a day in the life of a professor at a respectable but nonelite law school in the contemporary period. The article uses humor and irony to address several issues in the legal academy including race and gender relations, US News and other law school rankings, and the economic crisis. It spares no one, including the narrator, but does so in a playful and constructive way."
  • The Descent of Man:  "Mordecai Lomza is a tax professor with a family in the suburbs and a subscription to every available magazine. His life is ordinary until Martha Malinconica, an old friend from law school, makes him an unusual proposal. A story about love, work, and gender roles in the 21st century."
  • Iced Cortado: A Twenty-First Century Story:  "Avi Shalatzki is a somewhat cranky law professor and a committed Republican with strong views on race, gender, and just about everything else. His worldview begins to disintegrate when he meets Cassandra Coen, a 20-something entrepreneur who frequents the same cafe. A story about love, politics, and generational differences in a changing--or is it disintegrating?--society."

January 7, 2015 in Legal Education, Tax | Permalink | Comments (1)

Beyond Homo Economicus: The Prosocial Brain & The Charitable Tax Deduction

Ryan S. Keller (Ph.D. 2015, Cambridge), Beyond Homo Economicus: The Prosocial Brain & The Charitable Tax Deduction, 34 Va. Tax Rev. ___ (2014):

Charitable tax policy is at an impasse. Historically, citizens have overwhelmingly supported the charitable tax deduction as a means of fostering diversity, encouraging donations and supporting the nonprofit sector. Yet various policymakers and academics have increasingly disputed the deduction’s cogency and justifiability. In response, legal scholars and economists have offered various defenses and assessments of the deduction, but these have not convinced skeptics or placed the deduction on sufficiently solid theoretical and policy footing. The article adopts a novel approach by instead employing recent research in the neuroscience and psychology of prosocial behavior and charitable giving. Specifically, it identifies structural advantages specific to the deduction, rather than to charity or nonprofits more broadly. It then delineates key neural mechanisms and psychological functions that provide evidence linking dimensions of the deduction to distinct, previously neglected positive externalities. Amidst growing skepticism, developing a more capacious understanding of the deduction’s worth to society is essential. Indeed, failure to consider more robust, innovative analyses of the deduction compels authorities to craft policy without adequate information, and leaves the deduction and thus many philanthropic endeavors needlessly vulnerable.

January 7, 2015 in Scholarship, Tax | Permalink | Comments (0)

The IRS Scandal, Day 608

IRS Logo 2Forbes: Report On IRS Targeting Of Conservatives - No Christmas Pony For Darrell Issa, by Peter J. Reilly:

When I look at the report of Darrell Issa’s Committee on Oversight and Government Reform issued on the eve of Christmas Eve, I can’t help but think of the story of the kid with parents concerned about his excessive optimism.  Their therapist, who must have been quite malevolent, suggested that on Christmas morning, there be no presents under the tree and a stocking filled with horse dung.  That Christmas morning, the house was filled with the delighted shrieks of the young fellow as he ran around the house looking for the pony that Santa Claus must have brought.

Well the report is derived from 1.3 million pages and 52 transcribed interviews.   That’s quite a few stockings full of, well you know.  Still no pony. ... The pony being sought is named Watergate or maybe Watergate Jr. George Will, whose career commenced around the time of Watergate, in February 2014 argued that there have been three major scandals Watergate, IranContra and the IRS Scandal. On the other hand, John Dean, whose career as a public servant was terminated by his Watergate involvement finds comparisons between Watergate and the IRS scandal silly. ...

I recommend that if you are interested in the matter you read the report with an open mind.  Even though it strongly adopts one narrative, all the material for a different narrative is there.  That is why the New York Times can headline its coverage “Probe Fails to Link IRS Scandal to White House”  while Ben Shapiro’s Truth Revolt headlines “Issa Releases Damning Report On IRS Scandal” and leads with “Issa’s report contained emails which seemed to indicate there was visceral hatred of the Tea Party by IRS workers.”  Frankly, even if I just strongly disliked someone, I could come up with something better than calling them “icky”.

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January 7, 2015 in IRS News, IRS Scandal, Tax | Permalink | Comments (2)

Tuesday, January 6, 2015

Chodorow: Should Martians Pay U.S. Taxes?

Mars 3Slate:  Should Martians Pay U.S. Taxes?, by Adam Chodorow (Arizona State):

The dream of sending a manned expedition to Mars has long been with us. Yet, despite periodic enthusiasm, it seems we have made little progress. Until now. Our understanding of the planet’s environment (past and present) increases almost daily. Just recently, we tested a rocket ship capable of taking people to Mars. And a surprising number of people would volunteer to go to Mars, even if it meant not returning. (Elon Musk is fond of saying that he would like “to die on Mars, just not on impact.”) As engineering and other hurdles fall, it is time to address one of the most pressing—and yet least discussed—problems facing such a journey, one that could undermine it almost from the beginning.

Of course, I’m referring to taxes, and in particular to just how Marstronauts and ultimately Martians (assuming they stay) will be taxed on the income they earn while en route to, and living on, the Red Planet. Failure to address this important question now could lead to Martians renouncing their U.S. citizenship, or worse. Let me explain.

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January 6, 2015 in Tax | Permalink | Comments (2)

Villanova Symposium: Selective Issues in Tax Administration

Villanova Law LogoSymposium, Selective Issues in Tax Administration, 59 Vill. L. Rev. 409-648 (2014):

The Increasing Importance of the Whistleblower Provisions in U.S. Tax Administration

The IRS's Efforts to Regulate Unlicensed Tax Return Preparers

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

Do You Want Flowers (And Tweets) From the IRS?

Tax Analysts Blog:  Would You Settle for Flowers in Place of Help From the IRS?, by Christopher Bergin:

Reports from the U.K.  over the New Year holiday weekend detailed how the British government’s tax authority. ... I don’t know about you, but I’d be a little freaked out if I got flowers from the tax collector. According to an HMRC spokesman, “When we let a customer down, we always apologize and put matters right.” ...

This got me to thinking. For months we’ve heard that U.S. taxpayers may be in for one of the most challenging tax return filing seasons in recent memory. And most of those warnings have been coming from the IRS itself. The leader of the better-watch-out-chorus has been none other than IRS Commissioner John Koskinen himself. ... One of the commissioner’s direst warnings is that IRS employees may not be there to answer the phones when taxpayers call with questions about filing their returns this year. Considering that ours is a self-assessment individual income tax system, a little help that way from the tax collector is the least we should expect. Unfortunately, answering the phone is not something the IRS has ever been stellar at, so to think it will get even worse is not great news. But maybe flowers are a less expensive alternative to good customer service. Taking -- and expanding on -- a page from our friends across the pond, we could call them the “Insult to Injury Bouquet” from your government – and adding a bill for taxes owed with the card would be a nice touch as well.

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

A Discussion of Thomas Piketty's Capital in the 21st Century

PikettyAllied Social Science Associations Annual Meeing (Boston Jan 3-5, 2015), A Discussion of Thomas Piketty's Capital in the 21st Century (Harvard University Press, 2014):

New York Times, Talk Turns to Inequality at Annual Meeting of Economists.  For my perspective, see Thomas Piketty and Inequality: Legal Causes and Tax Solutions, 64 Emory L.J. Online ___ (2015):

Thomas Piketty's Capital in the Twenty-first Century has acted as an accelerant fueling the fiery public debate over increasing inequality in America and around the world. Piketty makes the provocative empirical claim that the rate of return to private capital inevitably exceeds the rate of economic growth (r > g) and thus leads to growing concentrations of wealth among the richest members of society. Piketty has spawned heated debates in newspapers, magazines, and blogs, which soon will continue in academic journals and law reviews. Shi-Ling Hsu is one of the first out of the gate with The Rise and Rise of the One Percent: Considering Legal Causes of Wealth Inequality, 64 Emory L.J. Online ___ (2015).

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January 6, 2015 in Book Club, Scholarship, Tax | Permalink | Comments (1)

Kahng: The Taxation of Intellectual Capital

Lily Kahng (Seattle), The Taxation of Intellectual Capital, 66 Fla. L. Rev. 2229 (2014):

Intellectual capital — broadly defined to include nonphysical sources of value such as patents and copyrights, computer software, organizational processes and know-how — has a long history of being undervalued and excluded from measures of economic productivity and wealth. In recent years, however, intellectual capital has finally gained wide recognition as a central driver of economic productivity and growth. Scholars in fields such as knowledge management, financial accounting and national accounting have produced a wealth of research that significantly advances our conceptual understanding of intellectual capital and introduces new methodologies for identifying and measuring its economic value.

This Article is the first to analyze and assess the taxation of intellectual capital within this broader interdisciplinary landscape.

Informed by the recent research and reform efforts in knowledge management, financial accounting and national accounting, the Article finds that the tax law, which allows most investments in intellectual capital to be deducted, is fundamentally flawed. This results in the loss of hundreds of billions of dollars in tax revenues, costly misallocations of resources and a grave deviation from the accurate measure of income. The Article argues that, consistent with the prevailing view in other fields, investments in intellectual capital ought to be capitalized under the tax law. Drawing upon the work of reform proponents in other fields as well as their critics, the Article considers whether and to what extent the advances in other disciplines can be adapted to the tax system. Based on this analysis, it proposes the tax law be reformed to require businesses to capitalize and amortize over five years a broad array of intellectual capital investments including research and development, advertising, worker training and strategic planning.

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

How Can Scandinavians Tax So Much?

Henrik Jacobsen Kleven (London School of Economics), How Can Scandinavians Tax So Much?, 28 J. Econ. Perspectives 77 (Fall 2014):

American visitors to Scandinavian countries are often puzzled by what they observe: despite large income redistribution through distortionary taxes and transfers, these are very high-income countries. They rank among the highest in the world in terms of income per capita, as well as most other economic and social outcomes. The economic and social success of Scandinavia poses important questions for economics and for those arguing against large redistribution based on its supposedly detrimental effect on economic growth and welfare. How can Scandinavian countries raise large amounts of tax revenue for redistribution and social insurance while maintaining some of the strongest economic outcomes in the world? Combining micro and macro evidence, this paper identifies three policies that can help explain this apparent anomaly: the coverage of third-party information reporting (ensuring a low level of tax evasion), the broadness of tax bases (ensuring a low level of tax avoidance), and the strong subsidization of goods that are complementary to working (ensuring a high level of labor force participation). The paper also presents descriptive evidence on a variety of social and cultural indicators that may help in explaining the economic and social success of Scandinavia.

Table 1

January 6, 2015 in Scholarship, Tax | Permalink | Comments (2)

The IRS Scandal, Day 607

IRS Logo 2Forbes:  Enough Already On IRS Targeting! Maybe, But Whose Tax Returns Went To White House And Why?, by Robert W. Wood:

We discussed IRS targeting during 8 months of 2013, and all of 2014. It is now 2015. We are all tired of it. Many Democrats accuse conservatives of blowing the IRS scandal out of proportion, conducting a ‘witch hunt.’ They say, as Mr. Obama said to Fox News, that there is not even a smidgen of corruption. Yet it should be no wonder that some people still aren’t so sure. Transparency hasn’t characterized much of what has happened over the course of these 20 months.

To find the missing emails from the key figure who refused to testify, the IRS said it spent $10 million of taxpayer money. Even those expensive recovery efforts were unsuccessful. Then, embarrassingly, the lost or destroyed Lois Lerner emails were recovered after all by the Treasury Inspector General. Among other things, the emails showed Justice Department involvement. Yet that too has been explained with a spin that seems to point the finger at conservatives.

DOJ had to look into conservative organizations, goes the narrative, because they were so bad. Because the focus isn’t on who did what and why, we are still in the dark about much of it. For there are really two scandals. One is alleged targeting, although it really isn’t alleged any longer. Lois Lerner, the IRS, and the Inspector General all admitted it.

Questions remain how involved the administration was, how one-sided it was solely to conservatives, etc. Still, the administration’s gyrations and shifting stories consumed 20 months. A parade of narratives ranged from confused IRS employees, to rogue IRS employees, to lost emails, recycled backups, $10 million of search efforts, and more. It should be upsetting to every American. And it should be embarrassing to government officials, though they do not show it.

Who can blame Americans for being suspicious? It was a whole year into a Congressional investigation before the IRS first said the emails were ‘lost.’ Would such a belated “oh by the way…” ever be tolerated if an American taxpayer voiced it? Even the ‘take the Fifth’ attitude is disturbing, regardless of one’s understanding of our Constitutional protections. As one report slams ‘culture of bias’, is it over-reacting to be bothered by this?

Even if it is, the second IRS scandal, the alleged release of confidential taxpayer data to the White House, is far more debilitating. It too isn’t just alleged. We know it happened. What we do not know is how much was released, whose tax records they were, or who over at the White House requested them. Even worse, we do not know if we will ever know. ...

White House Press Secretary Mr. Josh Earnest has said the Obama administration “has been very rigorous in following all of the rules and regulations that govern proper communications between Treasury officials and White House officials and the Internal Revenue Service.” Maybe that is all true, but this sure looks sloppy or worse. Especially given all the platitudes about transparency, it would be nice if we could get to the bottom of this and then finally move on. After all, it is 2015.

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

Monday, January 5, 2015

WSJ: The Outlook for Taxes in 2015

Wall Street Journal Tax Report:  The Outlook for Taxes in 2015, by Laura Saunders:

The new year could bring important changes to the tax landscape. Here are several issues that will affect how much taxpayers owe for 2015 and beyond: 

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January 5, 2015 in Tax | Permalink | Comments (0)

Will a Cheap Engagement Ring and Wedding Help Your Marriage?

SSRNThis paper from SSRN's list of the most downloaded papers of 2014 caught my eye:

Andrew M. Francis (Emory University, Department of Economics) & Hugo M. Mialon (Emory University, Department of Economics), ‘A Diamond is Forever’ and Other Fairy Tales: The Relationship between Wedding Expenses and Marriage Duration:

In this paper, we evaluate the association between wedding spending and marriage duration using data from a survey of over 3,000 ever-married persons in the United States. Controlling for a number of demographic and relationship characteristics, we find evidence that marriage duration is inversely associated with spending on the engagement ring and wedding ceremony.

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January 5, 2015 in Legal Education, Tax | Permalink | Comments (7)

NY Times: The Year in Charts

New York Times:  The Year in Charts, by Steven Rattner:

Although developments on the political front were certainly dispiriting, for the first time in years, the economic news was not all gloomy. But with the economy improving, there was less focus on the continuing need to address flagging incomes, rising inequality and unbalanced government spending. Below are 10 charts to illustrate the crosscurrents of the past year in economics and politics:


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January 5, 2015 in Tax | Permalink | Comments (1)

NY Times Debate: Charity v. Socially Responsible Investment

NY Times Room for DebateNew York Times Room for Debate:  Charity vs. Socially Responsible Investment:

  • Scott Harrison (Charity: Water), The World Needs More Charity:  "There’s a great need for nonprofit organizations that seek to spread compassion and empathy, and offer people a way to give without getting anything in return."
  • Ana Oliveira (New York Women's Foundation), When Philanthropy Builds Community:  "Donors, community leaders, researchers, corporate partners and policy makers are all able tSonal Shah, Beeck Center for Social Impact & Innovationo collaborate on solutions in pursuit of a shared goal."
  • Sonal Shah (Beeck Center for Social Impact & Innovation), Charity and Investment Should Work Together:  "Grants and charity are important in providing immediate basic services, but to promote long-term sustainability, market-based solutions can be more effective."
  • Darren Walker (Ford Foundation), Knowing When to Use the Right Approach:  "Socially responsible businesses and charities are only as effective as the women and men who use them."

January 5, 2015 in Tax | Permalink | Comments (0)

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January 5, 2015 in About This Blog, Legal Education, Tax | Permalink | Comments (0)

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January 5, 2015 in About This Blog, Legal Education, Tax | Permalink | Comments (0)

The IRS Scandal, Day 606

IRS Logo 2Human Events, The GOP Controls the Senate: Now What?:

Early in 2015 Republicans in the House and Senate will drive a national debate and actual votes in the House and Senate on the following big five issues—and many more. ...

Reforming the IRS and ending once and for all its abuse of taxpayers by rifling through their tax returns, denying tax status to conservative or tea party groups and their release of confidential donor information to left wing groups. The administration continues to stonewall efforts to investigate the IRS scandal. Now every Democrat congressman and Senator will be able to vote to ally themselves with the American people or with Obama’s politicized IRS. Then they face the voters.

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

TaxProf Blog Holiday Weekend Roundup

Sunday, January 4, 2015

Top 5 Tax Paper Downloads

SSRN LogoThis week's list of the Top 5 Recent Tax Paper Downloads is the same as last week's list. The #1 paper is now #72 in all-time downloads among 10,616 tax papers:

  1. [1543 Downloads]  A Compendium of Private Equity Tax Games, by Gregg D. Polsky (North Carolina)
  2. [294 Downloads]  Piketty in America: A Tale of Two Literatures, by Joseph Bankman (Stanford) & Daniel Shaviro (NYU)
  3. [195 Downloads]  The Rise and Fall of the Consumption Tax: A Historical Perspective, by Reuven Avi-Yonah (Michigan)
  4. [189 Downloads]  Corporate Inversions -- Background, Causes, and Policy Options, by J. Richard (Dick) Harvey (Villanova)
  5. [152 Downloads]  California Dreamin': Tax Scholarship in a Time of Fiscal Crisis, by Joseph Bankman (Stanford) & Paul L. Caron (Pepperdine)

January 4, 2015 in Scholarship, Tax, Top 5 Downloads | Permalink | Comments (0)

The IRS Scandal, Day 605

IRS Logo 2Forbes:  Bungled IRS Liens, Levies, Audits...But No Targeting, Just Ask Christine O'Donnell, by Robert W. Wood:

IRS audits are infrequent, usually impacting only a tiny fraction of the populace. Yet if you are audited multiple times, you might think you were targeted. If you are a Tea Party political candidate like former Senate candidate Christine O’Donnell, you might have good reason, especially when the IRS ‘mistakenly’ penalizes you again. She says the IRS audited her for the second time in five years and erroneously levied her bank accounts.

She couldn’t access her checking account as she was preparing to visit relatives. The tea party figure says the IRS mistakenly levied her accounts.“The day before I was heading out of town for the Thanksgiving weekend, my bank told me the IRS had frozen my accounts,” said Ms. O’Donnell. She called the IRS, who said she owed $30,000 in taxes from a 2008 house transaction (one she had fully reported).

She was eventually told the levy was an error and would be released. But the IRS took all her funds, later saying the funds would be returned. The funds have still not been replaced, Ms. O’Donnell said. “They said it was a mistake, and they removed the levy. I’m grateful, but I also wonder what someone with less government experience might do when they find themselves frozen from their money because the IRS got its paperwork mixed up.”

Ms. O’Donnell was asked where she thought her latest IRS run-in fit in the larger controversy over the IRS’s dealings with conservatives. “While I don’t believe in coincidences, it’s possible that this was just bureaucratic bungling. But either way, the IRS has to be held accountable. It needs to do its job right and not target or inconvenience taxpayers unfairly,” she said.

Since the IRS is made up of humans, sometimes the IRS is wrong. Opinions vary whether the IRS has ever targeted people for improper reasons. Richard Nixon supposedly asked the IRS to audit his political enemies. There has been no proof that President Obama tried to influence the IRS in the Tea Party targeting scandal. Yet lost emails from Lois Lerner and other key IRS employees, and numerous changes in the ‘narrative,’ have generated many conspiracy theories.

The topic is always sensitive, and the more it is pooh-poohed, the more tempers flare. For example, Rep. Paul Ryan, R-WI, said, “Nobody believes you,” to IRS Commissioner John Koskinen when the IRS Chief testified that IRS emails really aren’t official records anyhow. As for Ms. O’Donnell, she already had a run in with the IRS when Delaware state authorities accessed her IRS tax file (!) in 2010, right around the time she announced her candidacy.

A story was leaked alleging that she owed back taxes to the IRS. The story was false, and Delaware authorities claim the records check was routine. Even so, a tax lien was placed on a house she had sold two years earlier. The lien was publicized and used to discredit Ms. O’Donnell’s candidacy even though she no longer owned the home in question. The IRS eventually removed the lien, blaming it on a computer error.

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

Saturday, January 3, 2015

Pepperdine Reception Tonight at the AALS Annual Meeting

Pepperdine LogoIf you are at the AALS Annual Meeting in Washington, D.C.:  please stop by the Pepperdine reception tonight from 5:00 - 7:00 p.m. to say hello (and enjoy some wine and hors d'oeuvres before Markelfest).  The reception is in the Marriott Wardman Park, Center Tower Suite 1022.

Update:  Photo from post-reception Tax Prof dinner:

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January 3, 2015 in Conferences, Legal Education, Tax | Permalink | Comments (0)

Kleinbard: The Trojan Horse of Dynamic Scoring

DynamicNew York Times op-ed:  A Republican Ruse to Make Tax Cuts Look Good, by Edward D. Kleinbard (USC):

As Republicans take control of Congress this month, at the top of their to-do list is changing how the government measures the impact of tax cuts on federal revenue: namely, to switch from so-called static scoring to “dynamic” scoring. While seemingly arcane, the change could have significant, negative consequences for enacting sustainable, long-term fiscal policies. ...

Federal deficits are on an unsustainable path (as it happens, because of undertaxation, not excessive spending). Simply cutting taxes against the headwind of structural deficits leads to lower growth, as government borrowing soaks up an ever-increasing share of savings.

The most optimistic dynamic models get around this by assuming that the world today is in fiscal equilibrium, where the deficit does not grow continuously as a percentage of gross domestic product. But that’s not true. If you add the reality of spiraling deficits into those models, they don’t work. ...

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January 3, 2015 in Tax | Permalink | Comments (1)

The IRS Scandal, Day 604

IRS Logo 2Forbes:  IRS Hid Conservative Targeting Until After 2012 Presidential Election. Smidgen Corrupt?, by Robert W. Wood:

Was the IRS used for politics? It’s a fair question, yet one that suggests an answer when you look at numerous ‘coincidences’ that are too hard to fathom. Add that to that the testimony of key IRS figures and their inconsistent emails. The result is a mismatch revealing an IRS run amok in political spin it later admitted was wrong.

Ironically, a new report issued by the House Oversight and Government Reform Committee concerns some handlers at the IRS who seemed to be playing politics while criticizing conservative organizations for playing politics. That is only one irony wrung from the more than 200 page report. The report summarizes its investigation into the IRS’s treatment of politically active nonprofit groups. ...

Many democrats have dismissed the report as more political theater with facts taken out of context. But it is hard to argue with the facts: A top IRS official considered going public with the agency’s targeting of conservative groups at a hearing just months before the 2012 presidential election. One wonders what might have happened in the election if he had. Ultimately, the IRS official decided against revealing the bombshell news, according to the new House committee report.

The IRS official was none other than the Deputy IRS Commissioner Steven Miller. He would become Acting Commissioner, then would be fired by the President in May of 2013. Would a more prompt disclosure to Congress have made for a different Presidential election?

It is impossible to say, but it is hard to argue with the notion that this truly is political. Mr. Miller wrote to his Chief of Staff in June 2012, a month before a House Ways and Means subcommittee hearing. Significantly, Mr. Miller wrote that he was weighing whether to testify to “put a stake” in the “c4” issue — apparently a reference to allegations about politics playing a role in the agency’s denial of tax-exempt, 501(c)(4) status to conservative groups.

At the very least, the email makes it plain that Mr. Miller was aware of the situation. Mr. Miller ultimately testified on July 25, 2012 but never revealed his knowledge of the IRS misconduct. ...

Mr. Miller testified before Congress six times from May 2012 until May 2013, before being forced to resign. Until the bitter end, Mr. Miller said the targeting was not motivated by politics, but his emails show otherwise. And the administration’s handling of the investigation was appalling, the report claims.

The belated disclosure that emails were destroyed, the who’s-on-first routine about the recycled hard drives, the no smidgen of corruption, were all telling. Too many excuses generally are. How was the administration’s cooperation? The report says that, “Even as recently as July 2014, after the IRS informed Congress that it had destroyed two years of Lerner’s e-mails, the FBI continued its refusal to provide any information about its investigation.”

The Justice Department even considered criminal prosecutions, a topic the Justice Department discussed with disgraced Exempt Organizations Chief Lois Lerner. It’s all rather amazing when one recalls President Obama’s testy “not even a smidgen of corruption” remark to Fox News in February 2014.

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January 3, 2015 in IRS News, IRS Scandal, Tax | Permalink | Comments (2)

Friday, January 2, 2015

Weekly Tax Roundup

The Top 10 Tax Stories Of 2014

Top 10 (2014)Accounting Today, Top Tax Stories of 2014:

Things never get boring in the world of tax. Tax preparers, tax practitioners and taxpayers may all have been hoping for a quiet 2014 after the tumult of 2013, but regulators and legislators weren’t complying. Here are our editors’ picks for the most important stories of the year.

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January 2, 2015 in Tax | Permalink | Comments (0)

The IRS Scandal, Day 603

IRS Logo 2Washington Post, The Year in Review 2014, by Dave Barry:

[I]t was a miserable 12 months. In case you have forgotten why, let’s take one last look back, starting with …

U.S. Secretary of Health and Human Services Kathleen Sebelius, who oversaw the rollout of Obamacare, resigns from the Cabinet to take a position overseeing e-mail storage for the Internal Revenue Service. ...

In Washington scandal news, the Internal Revenue Service, responding to a subpoena, tells congressional investigators that it cannot produce 28 months of Lois Lerner’s e-mails because the hard drive they were stored on failed, and the hard drive was thrown away, and the backup tapes were erased, and no printed copies were saved — contrary to the IRS’s own record-keeping policy, which was eaten by the IRS’s dog. “It was just one crazy thing after another,” states the IRS, “and it got us to thinking: All these years we’ve been subjecting taxpayers to everything short of rectal probes if they can’t produce EVERY SINGLE DOCUMENT WE WANT, and here we lose YEARS’ worth of official records! So from now on, if taxpayers tell us they lost something, or just plain forgot to make a tax payment, we’ll be like, ‘Hey, whatever! Stuff happens!’ Because who are we to judge?”

But all kidding aside, you can bet that before this thing is over there will be a strongly worded report.

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January 2, 2015 in IRS News, IRS Scandal, Tax | Permalink | Comments (0)

Thursday, January 1, 2015

The 10 Most Popular TaxProf Blog Posts Of 2014

  1. Top 10 (2014)Median SAT Scores for the 2015 U.S. News Law School Rankings (Mar. 5, 2014) (158,325 page views)
  2. Details Emerge in Murder of Dan Markel (Aug 31, 2014) (150,744 page views)
  3. Ten Life Lessons From Navy SEAL Training (May 26, 2014) (71,258 page views)
  4. Farewell, My Friend (Apr. 6, 2014) (70,757 page views)
  5. The Most Overrated and Underrated Law Schools (Mar. 13, 2014) (55,853 page views)
  6. Law School Rankings by Graduates in BigLaw Jobs (Feb. 24, 2014) (49,396 page views)
  7. What College Presidents Do While Students Are Away on Winter Break (Jan. 5, 2014) (46,312 page views)
  8. NY Times:  Two Monitors Are Not Better Than One (Mar. 24, 2014) (40,192 page views)
  9. House Releases Report on Lois Lerner's Role in the IRS Scandal (Mar. 11, 2014) (36,875 page views)
  10. 2015 U.S. News Peer Reputation Rankings (v. Overall Rankings) (Mar. 11, 2014) (36,819 page views)

January 1, 2015 in Legal Education, Tax | Permalink | Comments (0)

The Top 10 Tax Cases (And Rulings) Of 2014

Top 10 (2014)Forbes:  The Top Ten Tax Cases (And Rulings) Of 2014, by Anthony J. Nitti (WithumSmith & Brown, Aspen, CO):

  1. Obamacare Endures Additional Attacks (Halbig v. Burwell, 758 F.3d 390 (D.C. Cir. 2014)/King v. Burwell, 759 F.3d 358 (4th Cir. 2014))
  2. Loving And Ridgely Take On The IRS (Loving v. IRS, 742 F.3d 1013 (D.C. Cir. 2014)/Ridgely v. Lew, 2014 U.S. Dist. LEXIS 96447 (D. D.C. 2014))
  3. Aragona Trust Changes The Way We Look At Real Estate Professionals (Aragona Trust v. Commissioner, 142 T.C. 9 (2014))
  4. IRS Rules on Self-Employment Income Of LLC Members (CCA 201436049)
  5. Is The Sale Of A Right To Buy Land Ordinary Income Or Capital Gain? (Long v. Commissioner (11th Cir. 2014), rev'g T.C. Memo. 2013-233)
  6. The IRS (Finally) Figures Out The Real Estate Professional Rules (CCA 201427016)
  7. Buy A Building, Get An Immediate Deduction? (ABC Beverage Corp. v. United States, 113 AFTR 2d 2014-2536 (6th Cir. 2014))
  8. A Big Break For Home Builders (Shea v. Commissioner, 142 T.C. 3 (2014))
  9. Tax Court Further Muddies The 'Dealer Versus Investor' Issue (Allen v. US, 113 AFTR 2d 2014-2262 (DC CA 2014))
  10. IRA and Qualified Plan Rollovers Are More Treacherous Than You Realize (Bobrow v. Commissioner, T.C. Memo. 2014-21)

January 1, 2015 in New Cases, Tax | Permalink | Comments (0)

The IRS Scandal, Day 602

IRS Logo 2Breitbart:  True The Vote Appeals Dismissal of Lawsuit Against IRS:

True the Vote, a Houston, Texas-based non-profit organization focused on “voters’ rights and election integrity,” has appealed a U.S. District Court’s order dismissing their lawsuit against the Internal Revenue Service (IRS), Breitbart Texas has learned. The lawsuit had alleged that the IRS had improperly delayed granting True the Vote’s application for 501(c)(3) status and targeted them as a conservative organization, but the opinion, issued by Judge Reggie B. Walton in October, found that the IRS had taken sufficient “remedial steps to address the alleged behavior.” In an exclusive interview with Breitbart Texas, True the Vote representatives shared why they believe their appeal is valid and represents an important issue for conservative grassroots organizations to follow.

“The IRS targeting scandal is not over and neither is our effort to seek justice in the federal courts,” said True the Vote Founder Catherine Engelbrecht in a statement provided to Breitbart Texas. “Since the dismissal, ‘lost’ emails specific to our case have been found and assertions that the agency changed its ways have yet to prove true by any verifiable manner. Until the Court fully addresses the IRS’ wrongdoing, the risk of future political abuses without consequences will only compound.” ...

True the Vote’s Notice of Appeal was officially filed with the United States Court of Appeals for the District of Columbia on Thursday, December 18.

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January 1, 2015 in IRS News, IRS Scandal, Tax | Permalink | Comments (0)

Wednesday, December 31, 2014

Osofsky Reviews Zelenak's Custom and the Rule of Law in the Administration of the Income Tax

JotwellLeigh Osofsky (Miami), The IRS as Tax Law Nonenforcer (Jotwell) (reviewing Lawrence Zelenak (Duke), Custom and the Rule of Law in the Administration of the Income Tax, 62 Duke L.J. 829 (2012)):

Zelenak laments the difficulty in challenging customary deviations. He usefully explores how the pro-taxpayer nature of customary deviations and limitations on third-party taxpayer standing leave little room for outsiders to step in and prevent customary deviations from going too far. Zelenak leaves the reader with the sense that customary deviations can in some cases be desirable, in some cases problematic, but in all cases difficult to do anything about as a result of limitations on taxpayer standing and the real threat that allowing standing to challenge the deviations may pose to the administrability of the tax system. Zelenak’s most concrete proposal is for “Congress to enact a new Code provision specifically authorizing the Treasury Department to issue regulations narrowing the statutory definition of gross income with respect to non-cash benefits received outside of an employment context, whenever the IRS decides that administrative concerns make such a narrowing advisable,” and that “Congress might decide to give the Treasury Department similar authority to revise by regulation other specified Code sections”  

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December 31, 2014 in Scholarship, Tax | Permalink | Comments (0)

The IRS Scandal, Day 601

IRS Logo 2Washington Free Beacon:  IRS Watchdog Continues to Hide Records on White House Leaks; Of 2509 Documents, Government Agrees to Release 31:

An independent IRS monitor announced Monday it will block the release of roughly 400 more pages of documents related to unauthorized leaks of confidential taxpayer information to the White House.

The Treasury Inspector General for Tax Administration (TIGTA) told the watchdog group Cause of Action it would be withholding nearly all of the 2,500 documents it located that were related to unauthorized IRS leaks to the White House. Earlier this month, TIGTA told Cause of Action it was withholding roughly 2,100 of the documents and said it would take an additional two weeks to review the rest.

TIGTA released 31 pages of documents on Monday to Cause of Action, 27 of which were already publicly available. Most were responses to letters from Republican senators.

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December 31, 2014 in IRS News, IRS Scandal, Tax | Permalink | Comments (2)

Tuesday, December 30, 2014

The Next Moneyball Frontier: Facial Coding?

New York Times, Teams Turn to a Face Reader, Looking for That Winning Smile:

FACSWhen two financiers purchased the Milwaukee Bucks for $550 million last April, they promised to pour not only money and new management into the moribund franchise, but also the same kind of creative and critical thinking that had helped make them hedge fund billionaires.

It was not enough to increase the franchise’s sales force or beef up the team’s analytics department — the Bucks were looking for a more elusive edge. So in May, the team hired Dan Hill, a facial coding expert who reads the faces of college prospects and N.B.A. players to determine if they have the right emotional attributes to help the Bucks.

The approach may sound like palm reading to some, but the Bucks were so impressed with Hill’s work before the 2014 draft that they retained him to analyze their players and team chemistry throughout this season.

With the tenets of “Moneyball” now employed in the front offices of every major sport, perhaps it was inevitable that professional teams would turn to emotion metrics and neuroscience tools to try to gain an edge in evaluating players.

“We spend quite a bit of time evaluating the players as basketball players and analytically,” said David Morway, Milwaukee’s assistant general manager, who works for the owners Wesley Edens and Marc Lasry. “But the difficult piece of the puzzle is the psychological side of it, and not only psychological, character and personality issues, but also team chemistry issues.”

Hill contends that faces betray our true emotions and can predict intentions, decisions and actions. He employs the psychologist Paul Ekman’s widely accepted FACS, or Facial Action Coding System, to decipher which of the 43 muscles in the face are working at any moment. Seven core emotions are identified: happiness, surprise, contempt, disgust, sadness, anger and fear. ...


Hill said he was inspired to take his work into sports after observing “profound sadness” in the face of Rafael Nadal soon before he lost the 2008 United States Open semifinal match to Andy Murray. The epiphany convinced Hill he could help teams find the “heart of a champion” by predicting and improving performance through facial coding. ...

Hill has worked with a few other teams, but the use of facial coding in sports is hardly widespread. Its acceptance may rest on the success of the Bucks. If you want to be creative, Smith, the Bucks’ psychologist, said, “you have to be willing to be ridiculed." "People laugh until they see results.”

New York Times, What Expressions Can Say About a Player:

Many sports teams have adopted advanced data analytics to help determine a player’s athletic abilities and value. Now, some are taking it a step further — trying to analyze psychological aspects as well. These teams are using facial-expression coding, which is based on the premise that human faces cannot hide true emotions, intentions or decisions.

December 30, 2014 in Legal Education, Tax | Permalink | Comments (1)