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Saturday, October 4, 2014

Ben Bernanke's Mortgage and Tax Policy

Bloomberg:  Why Does Bernanke Want a Mortgage, Anyway? Low Rates and Tax Breaks, by Richard Rubin:

BernankeBen Bernanke says he can’t refinance his house. ... Speaking at a conference yesterday in Chicago, Bernanke lamented tighter credit rules and said he’d been unsuccessful in trying to refinance his own home loan. “I’m not making that up,” he said when the audience reacted with laughter. ...

With his book advance and speaking fees, why does the former Federal Reserve chairman even want a mortgage? Even for the wealthiest Americans who can afford to buy their houses outright, mortgages come with a double benefit: interest rates low enough that returns on investments can beat them, and a tax subsidy that covers nearly half the interest cost.

A 15-year loan carries a 3.36 percent interest rate this week, according to Freddie Mac. And at the top federal and Washington, D.C., tax rates of 39.6 percent and 8.95 percent, the mortgage interest deduction reduces Bernanke’s real cost of borrowing even further.

Bernanke’s situation highlights a flaw in the tax code, said Harry Stein, associate director for fiscal policy at the Center for American Progress, a Washington group typically aligned with Democrats. “He can do better investing the speaking fees in the stock market than using them to pay his mortgage and own his house outright,” he said. “I can’t imagine the public policy case for subsidizing leveraged investment for affluent people and there’s just no world in which that makes sense.”

October 4, 2014 in Tax | Permalink | Comments (0)

The IRS Scandal, Day 513

IRS Logo 2Wall Street Journal op-ed:  The New Bureaucratic Brazenness: Official Arrogance Is the Source of Public Cynicism, by Peggy Noonan:

We’re all used to a certain amount of doublespeak and bureaucratese in government hearings. That’s as old as forever. But in the past year of listening to testimony from government officials, there is something different about the boredom and indifference with which government testifiers skirt, dodge and withhold the truth. They don’t seem furtive or defensive; they are not in the least afraid. They speak always with a certain carefulness—they are lawyered up—but they have no evident fear of looking evasive. They really don’t care what you think of them. They’re running the show and if you don’t like it, too bad.

And all this is a new bureaucratic style on the national level. During Watergate those hauled in and grilled by Congress were nervous. In Iran-Contra, Ollie North was in turn stoic, defiant and unafraid to make an appeal to the public. But commissioners and department heads now—they really think they’re in charge. They don’t bother to fake anxiety about public opinion. They care only about personal legal exposure. They do not fear public wrath.

All this became apparent in the past year’s IRS hearings, and was pronounced in Tuesday’s Secret Service hearings. ...

Sometimes it looks as if everyone in public life is in showbiz, only showbiz with impermeable employee protections. Lois Lerner of IRS fame planted the question, told the lie, took the Fifth, lost the emails and stonewalled. Her punishment for all this was a $100,000-a-year pension for the rest of her life. Imagine how frightened she was. I wonder what the Secret Service head’s pension will be?

A nation can’t continue to be vibrant and healthy when the government controls more and more, and yet no one trusts a thing the government says. It’s hard to keep going that way.

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October 4, 2014 in IRS News, IRS Scandal, Tax | Permalink | Comments (0)

Friday, October 3, 2014

Weekly Tax Roundup

October 3, 2014 in Tax, Weekly Tax Roundup | Permalink | Comments (0)

Weekly SSRN Tax Roundup

October 3, 2014 in Scholarship, Tax, Weekly SSRN Roundup | Permalink | Comments (0)

Weekly Student Tax Note Roundup

Weekly RoundupChristopher Weeg (J.D. 2015, Florida), Starting with the [Tax] Man in the Mirror: Asking the IRS to Change its Ways of Valuing Postmortem Publicity Rights (Second Place, 2014 Federal Bar Association’s Donald C. Alexander Tax Law Writing Competition):

Legal issues often arise at the intersection between a new legal right and an existing legal framework. In the estate tax world, the relatively new right of publicity clashed with the well-settled statutory language defining the value of a gross estate. In 1994, the court in Estate of Andrews v. United States, addressed the “issue of first impression” of the value of an author’s name as part of her estate for federal tax purposes. Andrews’ ruling demonstrated that publicity rights are (1) includible in a decedent’s gross estate and (2) valued based on a hypothetical sales transaction between a buyer and a seller.

Even after Andrews, the inclusion and valuation of these descendible rights for federal estate tax, as well as the liquidity issues they pose to cash-strapped estates, have continued to be debated by highly regarded scholars and practitioners. Mitchell M. Gans, Bridget J. Crawford, and Jonathan G. Blattmachr advocated for a legislative solution to this problem [Postmortem Rights of Publicity: The Federal Estate Tax Consequences of New State-Law Property Rights, 117 Yale L.J. Pocket Part 203 (2008)]. They proposed a modification to state law, whereby a decedent’s publicity rights automatically pass to a designated statutory heir and, thus, are excluded from the gross estate.6 In response to the proposal, Joshua C. Tate argued that the publicity rights, through the supposed restriction on testamentary control by automatic vesting in the statutory heir, are nonetheless includible in a decedent’s estate because the celebrity enjoyed a property interest in them at the date of death [Marilyn Monroe’s Legacy: Taxation of Postmortem Publicity Rights, 118 Yale L.J. Pocket Part 38 (2008)]. Following Tate’s article, Gans, Crawford, and Blattmachr defended their position that post-death control is a requirement for estate tax inclusion [The Estate Tax Fundamentals of Celebrity and Control, 118 Yale L.J. Pocket Part 50 (2008)]. Tate replied that, in effect, their proposal was an estate tax free lunch for celebrities and, thus, did not serve the broader policy justifications and normative goals of the federal estate tax [Immortal Fame: Publicity Rights, Taxation, and the Power of Testation, 44 Ga. L. Rev. 1 (2009)].

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October 3, 2014 in Scholarship, Tax, Weekly Student Tax Note Roundup | Permalink | Comments (0)

4th Annual NYU/UCLA Tax Policy Symposium: Thomas Piketty’s Capital in the Twenty-First Century

NYU UCLAThe Fourth Annual NYU/UCLA Tax Policy Symposium on Thomas Piketty’s Capital in the Twenty-First Century takes place today at UCLA:

The day-long event will consist of five panels featuring leading scholars who will analyze the book from economic, legal, historical, political science and philosophical perspectives. Thomas Piketty will participate in the discussion and deliver responses to each of the papers presented.

  • Joseph Bankman (Stanford) & Daniel Shaviro (NYU), moderated by Eric Zolt (UCLA)
  • Gregory Clark (UC-Davis), moderated by Joshua Blank (NYU)
  • Wojciech Kopczuk (Columbia), moderated by David Kamin (NYU)
  • Suzanne Mettler (Cornell), moderated by Jason Oh (UCLA)
  • Liam Murphy (NYU), moderated by Kirk Stark (UCLA)

All papers will be published in the Tax Law Review in 2015.

October 3, 2014 in Book Club, Conferences, Scholarship, Tax | Permalink | Comments (0)

University of Washington Hosts 2014 Tax Symposium

UW 3The University of Washington hosts the 2014 Tax Symposium today:

Panel #1:  Neil Buchanan (George Washington) (moderator)

Panel # 2:  Katie Pratt (Loyola-L.A.) (moderator)

  • Andrew Blair-Stanek (Maryland), Crisis-Proofing Tax Law
  • Michelle Drumbl (Washington & Lee), Beyond Polemics: Poverty, Taxes, and Noncompliance
  • Michael Hatfield (Washington), Privacy and IRS Surveillance: An Agenda

Panel #3:  Jasper Smith (Tax Analysts) (moderator)

Incubator Sessions:

  • Neil Buchanan (George Washington), The Impact of Piketty's Bestseller on Tax Policy and Scholarship
  • Heather Field (UC Hastings), The Rhetoric of Tax Loopholes & The Possibility of Meaningful Tax Reform
  • Steve Johnson (Florida State), Is a Value Added Tax Inevitable?
  • Rebecca Morrow (Wake Forest), Accelerating Depreciation in Recession
  • Katie Pratt (Loyola-L.A.), Encouraging Performance and Functional Review of Tax Expenditures

October 3, 2014 in Conferences, Scholarship, Tax | Permalink | Comments (0)

Woman Accused of Filing Fake Tax Return Seeking a $94 Million Refund

Atlanta Journal-Constitution:  Woman Accused of Filing Fake $94 Million Tax Return:

A woman accused of filing a phony state tax return for $94,323,148 was arrested when she attempted to claim her check at a Cobb County bank, Channel 2 Action News reported.

October 3, 2014 in Tax | Permalink | Comments (2)

The IRS Scandal, Day 512

IRS Logo 2The Blaze:  Not Just Lois Lerner? Multi-Million Tax Suit Claims IRS ‘Wiped Clean’ Email Evidence in Separate Case:

An Ohio-based private jet company entangled in a multi-million dollar lawsuit with the Internal Revenue Service filed a motion this week asserting the tax agency is missing emails from three separate employees that would be evidence in the case, the Columbus Dispatch reported.

The court motion and the federal case are unrelated to the IRS targeting scandal. Nevertheless, it comes after extensive congressional inquiries in Washington over missing emails from Lois Lerner, the former head of IRS tax-exempt organizations unit, who last year admitted to giving extra scrutiny to conservative groups applying for exempt status.

The IRS said the subpoenaed Lerner emails were destroyed in a hard drive crash. The agency later admitted that other emails related to the targeting were missing.

The jet company, NetJets, asserts that the IRS “wiped clean a number of computer hard drives containing emails and other electronic documents that the government was required to produce,” according to the motion filed with U.S. District Judge Edmund A. Sargus Jr., the Dispatch reported.

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October 3, 2014 in IRS News, IRS Scandal, Tax | Permalink | Comments (1)

Thursday, October 2, 2014

Georgia Seeks to Hire a Tax Prof

Georgia Law LogoThe University of Georgia School of Law is seeking entry-level and junior lateral candidates in tax.  Course needs are flexible but include Income Tax, Corporate Tax, International Tax, and State & Local Tax.  Interested persons should contact Randy Beck, Chair of the Faculty Recruitment Committee.

October 2, 2014 in Legal Education, Tax, Tax Prof Jobs | Permalink | Comments (0)

Bilgel & Galle: Tax Incentives and Organ Donation

Firat Bilgel (Okan University, Istanbul) & Brian D. Galle (Boston College), Paying for Altruism: The Case of Organ Donation Revisited:

DOnateAlthough many commentators have called for increased efforts to incentivize organ donations, theorists and some evidence suggest these efforts will be ineffective or even could perversely crowd out altruistic efforts. Prior papers examining the impact of tax incentives for donations generally report zero or negative coefficients. We argue these studies incorrectly define their tax variables, and rely on difference-in-differences methods despite likely failures of the requisite parallel trends assumption. We therefore aim to identify the causal effect of tax incentive legislation to serve as an organ donor on living related and unrelated kidney donation rates in the U.S states using more precise tax data and allowing for heterogenous and time-variant causal effects. Employing a synthetic control method, we find that the passage of tax incentive legislation increased living unrelated kidney donation rates by about 52 percent in New York relative to a comparable synthetic New York in the absence of legislation. We show that this causal effect is robust to the exclusion of any particular state as well as to the use of a very small number of comparison states.

October 2, 2014 in Scholarship, Tax | Permalink | Comments (0)

Leff: Preventing Private Inurement in Tranched Social Enterprises

Benjamin M. Leff (American), Preventing Private Inurement in Tranched Social Enterprises, 41 Seton Hall L. Rev. ___ (2015):

Social Enterprises are organizations that are operated for the dual purpose of engaging in profit-making activity and furthering a social good. Because of their “hybrid” nature, social enterprises are perceived to be stymied by a legal system that is overly devoted to defining organizations as either businesses or nonprofits. Legal academics and legislatures have been hard at work trying to make room for social enterprises by experimenting with modifications the laws that constrain both businesses and nonprofits. One significant sector of this reform movement is devoted to making it easier for social enterprises to receive funding from both for-profit investors and charitable non-profits. They argue that social enterprises will not flourish until charitable non-profits are permitted make below-market investments in social enterprises for the purpose of subsidizing the return expected by for-profit investors. This combination of below-market charitable investments and market-rate for-profit investments is generally called a “tranched investment structure.” It is not impossible under current law, but reformers argue that it is unnecessarily difficult, primarily because of federal laws restricting nonprofit activities.

This article addresses the specific legal issues raised by a tranched investment structure. Previous scholarship (and legislative reform) has focused on specific rules that apply only to “private foundations,” a subcategory of § 501(c)(3) organizations, the general federal classification of charities. But, surprisingly, commentators have largely ignored the laws that apply to tranched investment structures involving any § 501(c)(3) organization. This article fills that gap.

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October 2, 2014 in Scholarship, Tax | Permalink | Comments (0)

Avi-Yonah: Reflections on the 'New Wave' Inversions and Notice 2014-52

Reuven S. Avi-Yonah (Michigan), A World Turned Upside Down: Reflections on the 'New Wave' Inversions and Notice 2014-52, 145 Tax Notes 95 (Oct. 6, 2014):

On September 22, 2014, the Treasury issued Notice 2014-52 (the “Notice”). The Notice was intended to fulfill President Obama’s pledge to use executive actions to the extent possible to block the new wave of corporate inversions. To what extent can the Notice succeed?

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October 2, 2014 in Scholarship, Tax | Permalink | Comments (0)

The Tax Status of America's Professional Sports Leagues

SPorts LogosFederation of American Scientists, Legal Sidebar: Questions Raised About NFL’s Tax-Exempt Status (from the Congressional Research Service):

  • MLB:  Voluntarily gave up its § 501(c)(6) tax exempt status in 2009
  • NBA:  Taxable
  • NHL:  Tax-exempt under  § 501(c)(6)
  • NFL:  Tax-exempt under  § 501(c)(6)
  • PGA:  Tax-exempt under  § 501(c)(6)

(Hat Tip: Bruce Bartlett.)

October 2, 2014 in Tax | Permalink | Comments (1)

Do Law Schools Teach (and Model) Inefficiency (Especially in Tax Law)?

SeytLines Blog, Another Reason to Re-Think Legal Education:

EfficiencyLawyers have suggested many reasons for changing legal education. I have another one to add to the list. I think legal education teaches inefficiency. From day one in law school, law students are taught to be inefficient in the practice of law. By the time they hit the world outside academia and start practicing, they have three years of intensive inefficiency training. In a world that has moved towards reducing waste, at least in corporations, having someone join the workforce who has been taught inefficiency adds some complications. At a minimum, it means we will spend years re-training them, at the same time they are learning to practice. More realistically, we will end up with many lawyers who are never re-trained. ...

The good news is that this one issue could be fixed at little or no cost. The first step is teaching law school faculty about the modern practice of law. Seminars, workshops, and other training tools can accomplish that goal. The second step is to have law school faculty start modifying existing courses to reflect these modern practices and incorporate them as part of the core learning experience. My son is taking accounting, yet they don’t have him using accounting ledger paper from the 1930s to learn double-entry bookkeeping. If he can learn the basics of accounting with Excel, I’m not sure why law students can’t learn the basics of contract law in combination with Word and contract automation. Third, law schools should start thinking about law in the context of problems presented by clients. This isn’t a novel suggestion, but it still is a good one. Some classes should be integrated classes where students confront problems that require cross-functional thinking. Three years of training students to think one-dimensionally creates habits that are difficult to break. Problems don’t come neatly sliced into property law, tax, or other substantive areas.

The last point involves a personal pet-peeve, so I’ll share a story about it. As a corporate general counsel, I spent a fair amount of time on tax issues. The companies where I worked had global businesses, so we had plenty of international tax “opportunities.” On more than one occasion, partners from whichever of the Big Four accounting firms my company used would come to us with a tax proposal. They would have spent a fair amount of time working on the proposal and consulting with our tax team. They would invite the corporate lawyers to an overview presentation. We would identify several fatal flaws in the plan almost immediately. Those flaws were missed because the tax practitioners knew nothing about and didn’t take the time to ask about, the corporate law aspects of what they proposed. We would suggest many ways to work around the problem, and usually, after much additional work by the tax practitioners, we would land on a solution. I would always ask why the tax practitioners didn’t come to us right at the start, knowing that the key to the entire plan depended on corporate work, so that we could develop an integrated solution that worked. They always responded, “we were taught to look at the tax issues and let someone else think about the rest.” Not very efficient.

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October 2, 2014 in Legal Education, Tax | Permalink | Comments (2)

The IRS Scandal, Day 511

IRS Logo 2National Review:  IRS Erased Key Records in Lawsuit, NetJets Says, by John Fund:

There may be a pattern involving the IRS losing e-mails and other key computer records. For months, the House Oversight Committee has been pursuing the lost e-mails of Lois Lerner and other figures in the IRS tax-exempt organization scandal. 

Now, the private-jet company NetJets is claiming in a lawsuit that as part of its tax dispute with the agency the IRS “wiped clean a number of computer hard drives containing emails and other electronic documents that the Government was required to produce.”

Washington Free Beacon:  Court: Obama Admin Can’t Hide Investigation into Former White House Adviser; Austan Goolsbee Suspected of Illegally Revealing Koch Tax Details to Press:

The Obama administration must acknowledge the existence of an independent investigation into former White House senior economics adviser Austan Goolsbee’s alleged unauthorized access to the Koch brother’s tax returns, a court ruled Tuesday.

A federal judge ruled the Treasury Inspector General for Tax Administration (TIGTA) must disclose to watchdog group Cause of Action whether records of an investigation exist.

Cause of Action filed a Freedom of Information Act (FOIA) lawsuit after TIGTA refused to confirm or deny the existence of the investigation in what is commonly known as a “Glomar response.”

“The court has ruled that the federal government cannot hide behind confidentiality laws to prevent Americans from knowing if our President has gained unauthorized access to their tax information,” Cause of Action executive director Dan Epstein said in a statement Tuesday. “This is a decisive win for all Americans and for government transparency and accountability.”

Former White House Council of Economic Advisers chairman Austan Goolsbee sparked a mini-scandal in 2010 when he told reporters during a background press briefing that Koch Industries—the company of libertarian philanthropists Charles and David Koch—paid no income taxes.

Conservative lawmakers and activists said Goolsbee’s statements not only unfairly singled out the president’s political opponents but also used confidential IRS documents to do so.

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October 2, 2014 in IRS News, IRS Scandal, Tax | Permalink | Comments (1)

Wednesday, October 1, 2014

Zolt Presents Fiscal Contracting in Latin America Today at Harvard

Zolt (2014)Eric M. Zolt (UCLA) presents Fiscal Contracting in Latin America (with Richard M. Bird (Toronto)) at Harvard today as part of its Tax Law, Policy and Practice Workshop Series hosted by Daniel Halperin and Stephen Shay:

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.

October 1, 2014 in Colloquia, Scholarship, Tax | Permalink | Comments (0)

Schön Presents International Taxation of Risk Today at Toronto

SchoenWolfgang Schön (Max Planck Institute for Tax Law and Public Finance) presents International Taxation of Risk at Toronto today as part of its James Hausman Tax Law and Policy Workshop Series:

The allocation of risk and of the income from risky investment and activities belongs to the central topics of international tax policy today. This fact is highlighted by the current BEPS initiative of G20 and OECD which casts doubt on the recognition of contractual risk allocation within multinational groups and its impact on profit allocation between separate entities within these groups. It is largely felt that “risk shifting” provides the basis for “profit shifting” by multinationals to the detriment of states and domestic competitors.

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October 1, 2014 in Colloquia, Scholarship, Tax | Permalink | Comments (0)

A Mother's Love

(Hat Tip: Naomi Goodno.)

October 1, 2014 in Legal Education, Tax | Permalink | Comments (0)

The Most Underrated and Overrated BigLaw Tax Practices

Above the Law, Over- And Underrated Biglaw Practice Groups:

OuATL’s Insider Survey (17,300 responses and counting — thanks everyone!), whereby practicing attorneys and current students evaluate their own schools or employers. Among other things, our survey asks attorneys to nominate firms with over- and underrated practices within the respondent’s own practice specialty. Litigators nominate litigation departments, etc. ...

Most Overrated Tax Practices
Skadden
Cravath
Davis Polk

Most Underrated Tax Practices
Cooley
White & Case
Cahill Gordon

October 1, 2014 in Tax | Permalink | Comments (0)

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October 1, 2014 in About This Blog, Legal Education, Tax | Permalink | Comments (0)

Orange is the New Black, Tax Edition

OrangeAvalara, Orange is the New Black, Tax Edition:

For most businesses in most states, when you sign up to be a business owner, you sign up to collect and remit sales and use tax. This may not be forefront in the minds of future business owners of America, but it should be. Failure to collect, report and remit sales tax in a timely manner can land you behind bars (the kind that obscure the view, not the kind that serve drinks).

October 1, 2014 in Tax | Permalink | Comments (0)

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October 1, 2014 in About This Blog, Legal Education, Tax | Permalink | Comments (1)

The IRS Scandal, Day 510

IRS Logo 2Daily Caller:  After Holder: Four Things The Next Attorney General Must Address, by Dan Epstein (Executive Director, Cause of Action):

Attorney General Eric Holder may be heading for the exit door at the Department of Justice (DOJ), but numerous gaps in the agency’s enforcement remain. Will the next attorney general address fraud, transparency, and oversight concerns? We recommend four issues the next attorney general can and should resolve. ...

IRS Political Targeting: Americans have known for over a year about the Internal Revenue Service’s political targeting of non-profit groups. Cause of Action first petitioned DOJ to look into this scandal in May 2013. While an investigation has begun, the DOJ assigned an attorney from the Civil Rights Division (CRD), which mostly prosecutes hate crimes cases and conspiracies to violate civil rights, to investigate the IRS. If criminal violations are uncovered in the investigation, the CRD may not have the authority to handle them, given its jurisdiction. That is why the next attorney general should appoint a special counsel to direct the investigation.

Lois Lerner’s Emails: Perhaps the most confounding part of the IRS scandal is the somehow “lost” emails of Lois Lerner, the IRS official at the heart of the scandal. Cause of Action’s investigation indicates that in losing this valuable information, multiple government officials violated the Federal Records Act, which instructs agencies to create their own regulations regarding document retention. IRS regulations, for instance, required Ms. Lerner to print and file her emails and her attachments. By failing to preserve Lerner’s records, the IRS may have violated its own regulations — and therefore the Federal Records Act.

To this day, the Department of Justice refuses to investigate this potential violation of law, so we urge the next attorney general to conduct an investigation to determine if there has been a violation of the Federal Records Act.

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October 1, 2014 in IRS News, IRS Scandal, Tax | Permalink | Comments (0)

The IRS Scandal, Days 401-500

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October 1, 2014 in IRS News, IRS Scandal, Tax | Permalink | Comments (0)

The IRS Scandal, Days 301-400

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October 1, 2014 in IRS News, IRS Scandal, Tax | Permalink | Comments (0)

The IRS Scandal, Days 201-300

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October 1, 2014 in IRS News, IRS Scandal, Tax | Permalink | Comments (0)

The IRS Scandal, Days 101-200

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October 1, 2014 in IRS News, IRS Scandal, Tax | Permalink | Comments (0)

The IRS Scandal, Days 1-100

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October 1, 2014 in IRS News, IRS Scandal, Tax | Permalink | Comments (0)

Tuesday, September 30, 2014

Elizabeth Garrett (USC) Named President of Cornell University

Cornell Press Release, Elizabeth Garrett, USC Provost, Named Cornell's 13th President:

GarrettThe Cornell University Board of Trustees today approved the appointment of Elizabeth Garrett, provost and senior vice president for academic affairs at the University of Southern California, as Cornell’s next president. Garrett will assume the presidency July 1, 2015. ...

Garrett is married to Andrei Marmor, professor of philosophy and the Maurice Jones Jr. Professor of Law at USC, who will be joining the Cornell faculty as a full professor with joint appointments in the College of Arts and Sciences and the Law School. ...

Garrett’s primary scholarly interests include legislative process, the design of democratic institutions, the federal budget process and tax policy. She is the author of more than 50 articles, book chapters and essays, and is co-author of the nation’s most influential casebook on legislation and statutory interpretation, now in its fifth edition. At Cornell, Garrett will be a tenured faculty member in the Law School with a joint appointment in the Department of Government in the College of Arts and Sciences.

Garrett has an exemplary record of public service. In 2005, President George W. Bush appointed her to serve on the nine-member bipartisan Advisory Panel on Federal Tax Reform. ... Before entering academics, Garrett served as budget and tax counsel and legislative director for Sen. David L. Boren (D-Okla.) and clerked for Justice Thurgood Marshall on the U.S. Supreme Court.

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

Singhal Presents Firm Misreporting Behavior and Tax Evasion Substitution Today at Columbia

8171Monica Singhal (Harvard) presents Dodging the Taxman: Evidence on Firm Misreporting Behavior and Evasion Substitution (with Paul Carrillo (George Washington) & Dina Pomeranz (Harvard)) at Columbia today as part of its Tax Policy Colloquium Series hosted by Alex Raskolnikov, David Schizer, and Wojciech Kopczuk:

Reducing tax evasion is a key priority for many governments, particularly in developing countries. A growing literature has argued that the use of third party information to verify taxpayer self-reports is critical for tax enforcement and the growth of state capacity. However, there may be limits to the effectiveness of third party information if taxpayers can substitute misreporting to less verifiable margins. We present a simple framework to demonstrate the conditions under which substitution will occur and provide strong empirical evidence for substitution behavior by exploiting a natural experiment in Ecuador. We find that when firms are notified by the tax authority about detected revenue discrepancies on previously filed corporate income tax returns, they increase reported revenues, matching the third party estimate when provided. Firms also increase reported costs by 96 cents for every dollar of revenue adjustment, resulting in minor increases in total tax collection.

September 30, 2014 in Colloquia, 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:

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.

September 30, 2014 in Scholarship, Tax | Permalink | Comments (0)

Jellum: Codifying and 'Miscodifying' Judicial Anti-Abuse Tax Doctrines

Linda Jellum (Mercer), Codifying and 'Miscodifying' Judicial Anti-Abuse Tax Doctrines, 33 Va. Tax Rev. 579 (2014):

As former President George W. Bush said once, “the tax code is a complicated mess . . . [and] a million pages long.” The length and complexity of the Internal Revenue Code (Code) is largely the result of the U.S. government’s rule-based approach to curtail tax abuse. Taxpayers, aided by literalism, have long found and used language in the tax laws to avoid or minimize their tax obligations. Although complying with the language of the law, abusive tax transactions are nevertheless at odds with the law’s spirit. Historically, the government, specifically Congress and the Department of the Treasury (Treasury), has responded by crafting new rules to stem the abuse.

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September 30, 2014 in Scholarship, Tax | Permalink | Comments (0)

TIGTA: IRS Does Not Adequately Research 57% of Cases, Losing Billions in Taxes Wrongly Labeled Uncollectible

TIGTA The Treasury Inspector General for Tax Administration yesterday released Delinquent Taxes May Not Be Collected Because Required Research Was Not Always Completed Prior to Closing Some Cases As Currently Not Collectible (2014-30-052):

If an IRS employee is unable to contact or unable to locate (UTC/UTL) a delinquent taxpayer, the collection case may be closed as currently not collectible (CNC). If all of the required research steps are not taken prior to the case closure, there is a risk that the Government’s interest may not be protected and that taxpayers will not be treated equitably.

In Fiscal Year 2012, the IRS closed 482,611 tax modules involving approximately $6.7 billion as CNC–UTC/UTL.  This audit was initiated to determine whether these cases were adequately researched, documented, and approved to ensure that all actions were taken to collect outstanding taxpayer liabilities.

Required case actions were not always completed before closing cases as CNC–UTC/UTL.  Of a stratified sample of 250 cases reviewed, there was no evidence that employees completed all of the required research steps for 57 percent of the cases prior to their closing.  Moreover, 7 percent of the cases did not have a Notice of Federal Tax Lien (NFTL) filed on all delinquent tax periods as required. Collection Field function (Field) employees did not complete all research in 165 of the 204 Field cases, while Automated Collection System function employees did not complete all research in eight of the 38 Automated Collection System cases

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September 30, 2014 in Gov't Reports, IRS News, Tax | Permalink | Comments (1)

The IRS Scandal, Day 509

IRS Logo 2Christian Post:  Documentary Highlights First-Hand Accounts of IRS Targeting Conservative, Christian Groups:

A documentary set to be released in October aims to show the American public exactly how the IRS is unfairly treating certain groups by sharing first-hand experiences from those "oppressed" by the IRS.

Bothered by the reports that the IRS was targeting conservative activist groups, Craig Bergman, a former Gulf War veteran and syndicated conservative talk show host, traveled across America to get to the bottom of how the IRS was targeting these groups.

In his travels, Bergam interviewed various leaders of conservative activist groups, religious groups, veterans associations, international adoption parents and other groups. His interviewees detailed on camera how the IRS either forced them to fill out "intrusive" paperwork while filing for tax exempt status, or stalled the paperwork, making it difficult for the groups to grow in size.

The documentary, "UnFair: Exposing the IRS," was screened this past weekend at the Values Voters Summit in Washington D.C. and will premiere on Oct. 14 at over 700 theaters nationwide. The documentary uses the first-hand experiences to transition into a call to action to help abolish the IRS and the income tax and promote the Fair Tax, which would be similar to a national sales tax.

USA Today op-ed:  For Next Attorney General, Reach Across Aisle, by Glenn Reynolds (Tennessee):

Perhaps President Obama — and, for that matter, future presidents — should take a lesson from the way we handle the Department of Defense, and apply it to the Department of Justice: Consider naming someone outside his own party as attorney general.

This frequently happens with secretaries of Defense, and it has been of benefit to the administrations that have done it. FDR picked a Republican, Henry Stimson, to be secretary of War in 1940, and that meant that the war — and the war's casualties — became a bipartisan matter instead of fodder for partisan attacks. President Obama retained George W. Bush's Defense secretary, Robert Gates, for most of his first term. He replaced Gates with another Republican, Chuck Hagel, in that position.

Having a Defense secretary from the other party makes war bipartisan, and reassures members of the opposition that the powers of the sword aren't being abused. Likewise, naming an attorney general from the opposite party would tend to make the administration of justice bipartisan, and would provide considerable reassurance, as Holder's tenure in office emphatically did not, that the powers of law enforcement were not being abused in service of partisan ends. In an age of all-encompassing criminal laws, and pervasive government spying, that's a big deal.

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September 30, 2014 in IRS News, IRS Scandal, Tax | Permalink | Comments (1)

Monday, September 29, 2014

Barry Presents The Foreign Tax Credit and the Limits of Substance Today at Loyola-L.A.

BarryJordan Barry (San Diego) presents The Foreign Tax Credit and the Limits of Substance at Loyola-L.A. today as part of its Tax Policy Colloquium Series:

The foreign income tax credit is a major component of U.S. economic policy and a key provision of the U.S. tax code. Accordingly, when the Supreme Court took up PPL v. Commissioner, which turned on whether a particular tax qualified for the foreign income tax credit, economists and tax experts nationwide paid close attention. Because the Supreme Court decides foreign income tax credit cases so rarely, the Court’s reasoning in PPL will likely influence courts’ thinking—and taxpayers’ pocketbooks—for many years to come. Unfortunately, the Court’s decision in PPL does little to clarify the law and guide taxpayers. Instead, it reveals the fundamentally arbitrary nature of the foreign income tax credit.

The Court justifies its ruling as a triumph of substance over form. But the Court’s opinion itself demonstrates how two taxes can be the same in substance, yet be treated quite differently for purposes of the foreign income tax credit. The Court describes a specific hypothetical tax that would not be creditable—yet there are multiple taxes that are substantively identical to the Court’s hypothetical tax, but qualify for significant foreign income tax credits.

This Article explores these conceptual problems with the foreign income tax credit, as demonstrated by PPL, and suggests several steps that Congress and the IRS might wish to take to ameliorate these problems.

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September 29, 2014 in Colloquia, Scholarship, Tax | Permalink | Comments (0)

WSJ: Fed Questions Banks' Use of 'Dividend Arbitrage' to Cut Hedge Funds' Tax Bills

Wall Street Journal:  Fed Questions Bank Maneuver to Reduce Hedge Funds' Dividend Taxes; 'Dividend Arbitrage' Helps Big Banks Generate More Than $1 Billion in Revenue, Draws Criticism, by Jenny Strasburg:

Large banks generate more than $1 billion a year in revenue by helping hedge funds and other clients reduce taxes through a complicated trading strategy that has drawn criticism from U.S. authorities.

Known as "dividend arbitrage," the strategy is run largely from London, where the banks temporarily transfer ownership of a client's shares to a lower-tax jurisdiction around the time when the client expects to collect a dividend on those shares, according to people familiar with the matter.

The maneuver typically enables bank clients to reduce taxes from as much as 30% of the dividend payment to 10% or so—and sometimes to zero. The savings are divided between the client, bank and entities that take ownership of the shares. The business largely involves tsocks listed in Europe and Asia.

WSJ

Banks and hedge funds say dividend arbitrage is an attractive, legal way to shrink tax bills through the differences in withholding rates around the world. ... But Bank of America recently was questioned by U.S. regulators about potential legal and reputational risks from the maneuver, according to a spokesman for the Federal Reserve Bank of Richmond. ...

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September 29, 2014 in Tax | Permalink | Comments (0)

Graetz: The Bipartisan 'Inversion' Evasion: Meaningful Tax Reform Requires a Different President and a Different Congress

Wall Street Journal op-ed:  The Bipartisan 'Inversion' Evasion: Neither the White House Nor Congress Seems Interested in Tax Reform That Would Make Companies Want to Stay Here, by Michael J. Graetz (Columbia):

Tennessee Williams was famous for concocting American dramas where something is terribly wrong but no one is willing to talk about the underlying problem. That is exactly where we are now with the Obama administration's attack on "corporate inversions"—transactions where a U.S. company merges with a foreign company and locates the parent company abroad to reduce taxes.

This week Treasury Secretary Jack Lew announced new regulations that "will significantly diminish the ability of inverted companies to escape U.S. taxation." For some U.S. companies considering inversion, he said, the new measures will mean inverting will "no longer make economic sense." He admitted, however, that Treasury's moves are just a stopgap measure until Congress enacts corporate tax reform.

President Obama, Mr. Lew and just about everyone in Congress agree that the laws governing corporate taxation need rewriting. Members of both parties say they support reforms that will lower the corporate tax rate—now the highest statutory rate among developed nations—and make our corporate tax system more "competitive." The president points to his Framework for Business Tax Reform, announced in February 2012. Republicans take their cues from a comprehensive tax-reform plan issued in February by outgoing House Ways and Means Committee Chairman Dave Camp. Mr. Obama's plan would lower the corporate tax rate to 28% from 35%. Mr. Camp's plan would lower it to 25%. Both would impose a "minimum" tax rate of around 15% on the foreign earnings of a U.S. multinational corporation.

The Treasury's new regulations are aimed at hindering inverted companies' ability to bring cash back to the U.S. free of corporate taxes. And they would require the new foreign parent to be engaged in real business activities. But the new regulations do not address one of the advantages of inversion—the inverted companies' ability to use debt from their foreign parent to increase interest deductions as a way to strip earnings out of the U.S. ...

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September 29, 2014 in Congressional News, Tax | Permalink | Comments (0)

Symposium on Tax System Complexity Today in Italy

MonashMonash University hosts a two-day symposium beginning today on Tax System Complexity in Prato, near Florence, Italy convened by Chris Evans (University of New South Wales, Australia) and Rick Krever (Monash University. The symposium proceedings will be published by Kluwer in early 2015 in a book edited by Professors Evans and Krever. Speakers include Joel Slemrod (Michigan), Judith Freedman (Oxford), Alex Raskolnikov (Columbia), Philip Baker (London), Francois Vaillancourt (Montreal), Sharon Smulders (Pretoria), Kristin Hickman (Minnesota), John Hasseldine (New Hampshire), Michael Walpole (UNSW Australia), Lynne Oats (Exeter), Pasquale Pistone (Vienna), Cliff Fleming (Brigham Young) and David Ulph (Edinburgh).

 There are three broad themes within which papers will be situated:

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September 29, 2014 in Conferences, Scholarship, Tax | Permalink | Comments (0)

Penalty for Opting Out of the Affordable Care Act Is Large ($12,240) and Growing

Wall Street Journal Tax Report:  Penalty for Not Having Health Coverage Can Be Thousands of Dollars; The ACA Penalty Can Top $12,000 for a High-Income Family of Five, by Laura Saunders:

ObamaCareIf you're opting out of the health-care coverage required by the Affordable Care Act, make sure you understand how much you'll owe Uncle Sam as a result.

For a family of five, the penalty could be as high as $12,240 for the 2014 tax year, experts say. And for many people, the penalty will rise sharply in 2015 and 2016.

The massive health-care changes passed in 2010 are phasing in, and this is the first year most Americans must have approved health insurance. Those who don't will owe a penalty under the Individual Shared Responsibility Provision. It's due with your income taxes, payable by April 15, 2015.

While most people will probably obtain qualified health coverage through an employer or an exchange, there will be others who owe the penalty. Eddie Adkins, a health-care and benefits specialist at Grant Thornton in Washington, says this group will likely include affluent and wealthy people who want to self-insure or use a so-called nonconforming policy that doesn't meet Affordable Care Act standards.

Then there are the "young invincibles": healthy young adults, typically in their late 20s or early 30s, who will get little or no tax credit to reduce their premiums. Many would rather spend the cost of health coverage, which can run from several hundred to several thousand dollars a year, on something else, such as paying off college loans.

For those who are thinking of opting out, here's what you need to know.

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September 29, 2014 in IRS News, Tax | Permalink | Comments (3)

The IRS Scandal, Day 508

IRS Logo 2New York Observer:  Eric Holder Runs from a Ticking Time Bomb: IRS Deadline Approaches Fast, Federal Judges are Furious—and Where’s Andrew Selka?, by Sidney Powell:

The surprise resignation of Eric Holder, the first Attorney General ever to be held in contempt of Congress, exploded in the news today. Holder has been under unrelenting assault for the most egregious politicization and abuse of power in the Department of Justice in history—exceeding that of John Mitchell and Alberto Gonzalez. He has made the Department of Obstructing Justice notorious. Federal judges are stepping in to end his stone walling of Congressional and other investigations on several fronts, and now he’s on the run.

Why now? What is about to blow up? ...

Mr. Holder is about to run out of stalling time on the cover-up in the IRS scandal. He has come under increasingly serious fire for refusing to appoint a real special prosecutor to investigate what the Inspector General of the Treasury has already determined to be improper targeting of conservative groups by IRS officials including Lois Lerner. That bomb could detonate any day now.

The IRS has stonewalled production of the relevant documents, suffered astonishing computer crashes, deliberately destroyed Lois Lerner’s Blackberry with no effort to retrieve the “missing” emails from it, and been deceitful and obstructionist in the lawsuit brought by Judicial Watch to obtain documents that would reveal the target selection process and how high up in the White House the knowledge or direction of it can be traced.

Judicial Watch recently requested additional discovery. Judge Emmet Sullivan, the federal judge in the District of Columbia, has just given the IRS until October 17 to file its response to that motion. Judge Sullivan has the power to appoint—and has previously—appointed a special prosecutor to investigate the Department of Justice. ...

Mr. Holder tasked Barbara Bosserman, a Civil Rights Division attorney, with the Department’s own purported investigation of the IRS abuses. Congress later learned that she had made substantial contributions to the President’s campaign and renewed its demand for Mr. Holder to name a special prosecutor.

As more of the IRS emails have come to light, they have revealed that Mr. Holder allowed a Justice Department lawyer, Andrew Strelka, to represent the IRS in opposing the lawsuit by Z Street—a group allegedly targeted for abusive treatment by the IRS because of its support for Israel. Mr. Strelka used to work with Lois Lerner, engaged in the political targeting himself, and maintained his close relationship with Ms. Lerner after he joined the Justice Department. Congressmen Issa’s and Jordan’s letter of August 25 to the Attorney General revealed that Mr. Strelka was privy to internal communications of the Exempt Office of the IRS long after he left that office. He was even advised immediately of the crash of Ms. Lerner’s hard drive—unlike Congress or any federal judge.

The letter notes: “Curiously, before his withdrawal from the case [forced by a story reporting this conflict], Strelka also completed a detail to the White House Counsel’s Office from December 2013 to June 2014—during which time the White House learned of Lois Lerner’s destroyed emails.”

The Congressional Committee on Government Oversight and Reform has intensified its inquiry into the Department’s conduct. The Congressmen told the Attorney General that their Committee staff should be contacted to arrange transcribed interviews of Mr. Strelka and Ms. Siegel by September 8. Mr. Strelka quickly and quietly left the Department. By September 5, the Department was stonewalling and refusing to assist the Committee in locating Mr. Strelka—who seems to be as missing as the IRS emails. As the Hill has reported, Rep. Jordan complains that the Justice Department “has declined to give Strelka’s contact information to the Oversight Committee and has reprimanded the panel for trying to get in touch with him directly.” Is this an out-take from House of Cards?

Congress also wants to talk to Nicole Siegel, a Department lawyer in the Office of Legislative Affairs. Turns out she also worked for Lois Lerner, shared Ms. Lerner’s views, and kept in touch. Hardly the disinterested person one should have in the Department office that responds to congressional inquiries on the IRS’s target selection.

Then there was the extraordinary accidental or mistaken call to Congressman Issa’s office by the Justice Department’s Office of Public Affairs. The call was intended for Rep. Elijah Cummings, the ranking minority member of the Oversight Committee, and sought to coordinate a leak of selected Committee documents to selected reporters so the Department could comment on them. The subject of the conversation and documents? None other than Andrew Strelka—regarding his representation of IRS Commissioner Koskinen in the Z-Street case. Meanwhile, other emails reveal extensive communications between Rep. Cummings’ staff and the IRS — referred to as an “executive branch agency” — in 2012 and 2013 regarding conservative group True the Vote.

As of September 12, the Department was still obstructing efforts to locate Mr. Strelka. Meanwhile, the Department’s own Inspector General Michael Horowitz testified before the House Judiciary Committee that the FBI and other components of the Department of Justice “have refused our requests for various types of documents. As a result, a number of our reviews have been significantly impeded.” Mr. Horwitz had already joined an unprecedented letter signed by 47 Inspector Generals for various agencies expressing serious concern that their jobs were being undermined and obstructed by multiple agencies of this presidency, including the Department of Justice.

Mr. Strelka can’t hide forever. Judge Bates is fed up with Department’s delays and ordered the list of documents Mr. Holder and Mr. Obama have been hiding for years now on their Fast and Furious scheme. Soon, Judge Sullivan could appoint a special prosecutor or demand production of the back-up server’s emails, or give Judicial Watch additional discovery after October 17.

One thing is for certain. Mr. Holder didn’t just wake up today and decide he wanted to go fishing. There are truths underlying this resignation that will be shocking when they surface. Mr. Holder will no longer have the shield of the Attorney General and the Department of Justice to protect him from congressional, grand jury, or other subpoenas. The next question is: Which criminal lawyer will he hire to defend him and how soon?

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September 29, 2014 in IRS News, IRS Scandal, Tax | Permalink | Comments (2)

TaxProf Blog Weekend Roundup

Sunday, September 28, 2014

Income Gains in the Obama Economic Recovery: +116% to Top 10%, -16% to Bottom 90%

New York Times:  The Benefits of Economic Expansions Are Increasingly Going to the Richest Americans, by Neil Irwin:

Economic expansions are supposed to be the good times, the periods in which incomes and living standards improve. And that’s still true, at least for some of us.

But who benefits from rising incomes in an expansion has changed drastically over the last 60 years. Pavlina R. Tcherneva, an economist at Bard College, created a chart that vividly shows how.

Income Growth

The Rich Are Getting Richer, Part the Millionth, by Kevin Drum:

It's a pretty stunning chart. The precise numbers (from Piketty and Saez) can always be argued with, but the basic trend is hard to deny. After the end of each recession, the well-off have pocketed an ever greater share of the income growth from the subsequent expansion. Unsurprisingly, there's an especially big bump after 1975, but this is basically a secular trend that's been showing a steady rise toward nosebleed territory for more than half a century. Welcome to the 21st century.

September 28, 2014 in Tax | Permalink | Comments (3)

Cass Sunstein's Ode to the Independent Bookstore: 'Church, House of Worship, Sacred Place'

Seminary

Chicago Tribune:  A Treasure-Trove Beyond Words, by Cass Sunstein (Harvard):

I joined the faculty of the University of Chicago Law School in 1981. On the day after I moved to Hyde Park, a young English professor told me, in hushed tones, "The best thing about the University of Chicago is the Sem Co-op." He added, as if he were discussing a legendary priest, or a world leader, or perhaps a spy, "It's run by Jack Cella."

Of course I had no idea what a "Sem Co-op" might be, and I had never heard of Jack Cella — and I was properly intimidated by both. A week later, I discovered the Seminary Co-op Bookstore, and I was able to see, at his small desk on the right as you enter the store, the famous Jack Cella.

Hyde Park's Seminary Co-op Bookstore is not merely a bookstore. It is a community. It is a small town. It is a church, a sacred place. The air is cleaner there, and the people are more gracious, and they move more slowly. It is defined by quiet, and by gentleness, and by respect. No one disturbs anyone there. When they talk, they tend to whisper.

A confession: During my first years at the University of Chicago, I was a bit frightened whenever I entered the Seminary Co-op. I met Jack, or sort of met Jack, but I didn't know if he knew my name. When I saw him, I felt painfully shy. You could find the university's legendary professors there — the people who wrote the books that made it onto the celebrated Front Table (more on that in a minute). Wayne Booth might be there, or Marshall Sahlins, or Wendy Doniger, or David Tracy, or William Julius Wilson, or Gary Becker. (Would one say, "hello, Professor Becker"? "Hi there, Gary?" Nothing at all?)

The Seminary Co-op was a magnet. It was analogous to a great city as memorably described by Jane Jacobs: It was full of life-altering surprises, and unknown treasures, and whenever you turned a corner, you never knew what you would see. ...

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September 28, 2014 in Legal Education, Tax | Permalink | Comments (0)

Top 5 Tax Paper Downloads

SSRN LogoThere is a bit of movement in this week's list of the Top 5 Recent Tax Paper Downloads on SSRN, with a new paper debuting on the list at #5.  The #1 paper is now #19 in all-time downloads among 10,329 tax papers:

  1. [3172 Downloads]  'Competitiveness' Has Nothing to Do with it, by Edward D. Kleinbard (USC)
  2. [333 Downloads]  2013 Developments in Connecticut Estate and Probate Law, by Jeffrey A. Cooper (Quinnipiac) & John R. Ivimey (Reid and Riege, Hartford)
  3. [252 Downloads]  Public Pressure and Corporate Tax Behavior, by Scott Dyreng (Duke), Jeffrey Hoopes (Ohio State) & Jaron Wilde (Iowa)
  4. [185 Downloads]  The OECD'S Flawed and Dated Approach to Computer Servers Creating Permanent Establishments, by Monica Gianni (Florida)
  5. [121 Downloads]  Rights Without Remedies, by Matthew L. M. Fletcher (Michigan State)

September 28, 2014 in Tax, Top 5 Downloads | Permalink | Comments (0)

The IRS Scandal, Day 507

IRS Logo 2The Daily Signal:  Eric Holder’s 7 Worst Actions as Attorney General:

3. Failure to conduct a real, criminal investigation of the IRS targeting of conservative organizations and to enforce the contempt citation issued by the House of Representative against Lois Lerner.

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September 28, 2014 in IRS News, IRS Scandal, Tax | Permalink | Comments (0)

Saturday, September 27, 2014

NY Times: Profits Made in the USA, but Banked Overseas

New York Times:  Made in the U.S.A., but Banked Overseas, by Floyd Norris:

MadeImagine how frustrating it would be to have billions of dollars in cash but be unable to spend it as you wish unless you paid a large part to the Internal Revenue Service.

That could be your problem if you were running a large multinational corporation based in the United States.

Profitable companies that operate only in this country have some tax breaks available and so often pay considerably less than the statutory corporate tax rate of 35 percent. But they still face a significant tax bill.

It is a different story for United States companies that operate internationally.

“U.S. multinational firms have established themselves as world leaders in global tax avoidance strategies,” said Edward D. Kleinbard, a former chief of staff of Congress’s Joint Committee on Taxation who now teaches tax law at the Gould School of Law at the University of Southern California. In a recent article, he sarcastically added that those companies “are burdened by tax rates that are the envy of their international peers.”

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September 27, 2014 in Tax | Permalink | Comments (0)

Morgan Stanley on Income and Wealth Inequality

Morgan Stanley LogoWall Street Journal, Why Wall Street Cares About Inequality:

First, it was Standard & Poor’s. Now, Morgan Stanley weighs in on income inequality in a new report. Why are these Wall Street institutions, normally focused on macroeconomic issues directly related to gross domestic product forecasts, suddenly chiming in on the issue?

Morgan Stanley

Morgan Stanley 2

(Hat Tip: Bruce Bartlett.)

September 27, 2014 in Tax | Permalink | Comments (0)

The IRS Scandal, Day 506

Friday, September 26, 2014

Shay Presents Tax Inversions -- The Problem and Possible Solutions Today at San Diego

Shay (2014)Stephen E. Shay (Harvard) presents Mr. Secretary, Take the Tax Juice Out of Corporate Expatriations, 144 Tax Notes 473 (July 28, 2014), at San Diego today as part of its Tax Law Speaker Series:

This article describes the principal tax benefits companies seek from expatriating and outlines regulatory actions that can be taken without legislative action to materially reduce the tax incentive to expatriate. These proposals for regulations are supported by existing statutory authority. They would be good policy and consistent with, or easily integrated with, publicly proposed tax reform proposals.

Prior TaxProf Blog coverage:

September 26, 2014 in Colloquia, Scholarship, Tax | Permalink | Comments (0)