Paul L. Caron
Dean





Wednesday, June 22, 2022

Free Webinar Today On Job Opportunities In The Office Of Tax Policy (U.S. Treasury Department)

The ABA Tax Section is hosting a free webinar today at 1:00 PM ET on Opportunities to Influence Change: Legal Jobs in the Office of Tax Policy (register here):

ABA Tax SectionThe Office of Tax Policy at the Treasury Department is responsible for developing and implementing the tax policies and programs of the United States, drafting tax regulations, negotiating tax treaties, and providing legal analysis of tax policy decisions. But what does all of that really mean? Please join members of the Office of Tax Policy to learn about the day-to-day experience of working as an attorney-advisor, and to discover potential career opportunities that let you be on the forefront of developments in tax law, all while serving the public interest.

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June 22, 2022 in ABA Tax Section, IRS News, Legal Education, Tax | Permalink

Tuesday, June 21, 2022

Tax Harmony: The Promise And Pitfalls Of The Global Minimum Tax

Reuven S. Avi-Yonah (Michigan; Google Scholar) & Young Ran (Christine) Kim (Utah, moving to Cardozo; Google Scholar), Tax Harmony: The Promise and Pitfalls of the Global Minimum Tax, 43 Mich. J. Int'l L. __ (2022):

The rise of globalization has become a double-edged sword for countries seeking to implement a beneficial tax policy. On one hand, there are increased opportunities for attracting foreign capital and the benefits that increased jobs and tax revenue brings to a society. However, there is also much more tax competition among countries to attract foreign capital and investment. As tax competition has grown, effective corporate tax rates have continued to be cut, creating a “race-to-the-bottom” issue.

In 2021, 137 countries forming the OECD/G20 Inclusive Framework on BEPS passed a major milestone in reforming international tax by successfully introducing the framework of a global minimum corporate tax, known as Pillar Two. It aims to set a floor for corporate tax rates with various corrective measures so that multinational enterprises’ income will be taxed once in either source country or residence country at a substantive tax rate. Hence, Pillar Two is the first implementation of the “single tax principle” at the global level. Because Pillar Two requires an unprecedented amount of coordination among countries, it is important to understand Pillar Two thoroughly so that countries can maneuver the challenges of implementation, while still enjoying the ultimate benefit that would come from this global tax harmony.

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June 21, 2022 in Scholarship, Tax, Tax Scholarship | Permalink

Legal Ed News Roundup

Tax Prof Debby Geier Retires After 33 Years At Cleveland State

Lee Fisher (Dean, Cleveland-Marshall), Changing of the Guard:

GeierProfessor Geier clerked for the Honorable Monroe G. McKay of the United States Court of Appeals for the Tenth Circuit. She worked in the tax group of the Wall Street firm of Sullivan & Cromwell in New York before joining the CSU C|M|LAW faculty to teach Tax law. In an effort to reduce student textbook costs, she is the sole author of U.S. Federal Income Taxation of Individuals, an e-textbook that students can download for free. Professor Geier has been a Visiting Professor of Law at Washington University, the University of Michigan, the University of Florida in Gainesville and the University of Alabama. She is a member of the American Law Institute and has served both as a member of the Executive Committee and as Chair of the Tax Section of the Association of American Law Schools.

In retirement, Professor Geier plans to continue updating her e-textbook in addition to teaching. She intends to do more traveling and develop her photography skills.

What have you enjoyed most about your time at C|M|LAW?
"What I have enjoyed the most in my 33 years at Cleveland State University's College of Law is its students. I have had the privilege of being a visiting professor at four other law schools, and I was always happy to come home. As I say in the Preface to my textbook, which is dedicated to my CSU students, 'you rock!'."

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June 21, 2022 in Legal Education, Tax, Tax Prof Moves | Permalink | Comments (2)

After Failed Search Following Resignation Of Dean Due To Mishandling Of Sexual Misconduct Allegations, Tax Prof Elaine Gagliardi Named Interim Dean At Montana Law School

Following up on my previous post, Montana Law School Dean, Associate Dean Resign Following Student Walkout Over Mishandling Of Sexual Misconduct Allegations; Provost Temporarily Takes Control:  Missoulian, University of Montana Law School Names Interim Dean After Search Comes Up Short:

GagliardiThe search for a new dean for the University of Montana’s Alexander Blewett III School of Law returned to square one after offers to some of the finalists were rejected.

Dave Kuntz, the university’s director of strategic communications, confirmed that the university did make offers to finalists that visited campus, but did not specify how many offers were made or other details. ...

Beginning July 1, the law school will be led by Elaine Gagliardi as interim dean. Gagliardi has served as a faculty member at the university since 2001, including a wide range of administrative capacities such as Associate Dean of Academic Affairs from 2007-2010 and Associate Dean of Students from 2015-2017...

Former law school Dean Paul Kirgis resigned from the position in early October following a student-led walkout after women from the law school said that he and Associate Dean Sally Weaver discouraged them from reporting allegations of sexual harassment and assault to the university’s Office of Equal Opportunity and Title IX, initially reported by the Daily Montanan.

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June 21, 2022 in Legal Ed News, Legal Education, Tax, Tax Prof Moves | Permalink

Lesson From The Tax Court: How To Tell When Land Is Held As A Capital Asset

Camp (2021)When a taxpayer buys land and later sells it, the character of the resulting gain or loss will depend on whether taxpayer held the land as an investment or instead held it like inventory, to be sold to customers as part of a trade or business.  It is not always easy to tell how the land is being held and courts look at a variety of factors.

The lesson I take from William E. Musselwhite Jr. and Melissa Musselwhite v. Commissioner, T.C. Memo. 2022-57 (June 8, 2022) (Judge Ashford), is that how the taxpayer self-reports the activity in years prior to the year of disposition is one important factor in determining when land is held as investment.  There, Mr. Musselwhite acquired four lots in what was to become a residential development.  No development happened.  For years he consistently reported holding the lots for investment.  But when he eventually sold them for a big loss he and his wife reported the loss as ordinary, claiming on that return that he held the land for development.  In an informative opinion, Judge Ashford held Mr. Musselwhite to his prior reporting position.  Details below the fold.

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June 21, 2022 in Bryan Camp, New Cases, Scholarship, Tax, Tax Scholarship | Permalink | Comments (2)

Texas Southern Law School Replaces Dean After Less Than Three Years Amidst Continued Bar Challenges, Fallout From Admissions Scandal

Following up on my previous posts (links below):  Houston Chronicle, TSU Replaces Law School Dean After Continued Troubles, Low Bar Scores:

Thurgood Marshall Logo (2017)Texas Southern University’s law school dean is out of the job, signaling continued tumult for a program recovering from an admissions scandal that toppled the former university president.

Joan R.M. Bullock served almost three years as the Thurgood Marshall School of Law’s first female dean - and tenth dean overall. While she took the job intending to improve the school’s standards, Bar rates remain low: Between one-third and one-half of Texas Southern students pass each qualifying exam, regularly ranking last among the state's schools.

Texas Southern on Thursday announced professor Okezie Chukwumerije as the law school’s interim dean. In an email to students, faculty and staff, the university did not mention Bullock and only confirmed that the change is effective immediately. ...

The reason for Bullock’s departure is unclear, as TSU refused to comment on the personnel issue. Bullock also declined to comment. ...

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June 21, 2022 in Legal Ed News, Legal Education | Permalink

TaxProf Blog Holiday Weekend Roundup

Monday, June 20, 2022

Osofsky & Thomas: Implicit Legislative Bias — The Case Of The Mortgage Interest Deduction

Leigh Osofsky (North Carolina; Google Scholar) & Kathleen DeLaney Thomas (North Carolina; Google Scholar), Implicit Legislative Bias: The Case of the Mortgage Interest Deduction, 56 U.C. Davis L. Rev. ___ (2022):

UC Davis Law ReviewThe home mortgage interest deduction is over 100 years old. The deduction has been subject to increasing and, at times, withering criticism from commentators. Scholars have argued that the mortgage interest deduction may be a particularly ineffective and regressive way to subsidize homeownership. Other scholars have made the important point that the mortgage interest deduction has a disparate racial impact: homeowners are disproportionately white, so the deduction disproportionately benefits white people at the expense of people of color. Yet, the mortgage interest deduction has retained remarkable and costly staying power despite all the critiques.

How has the mortgage interest deduction persisted over a century, despite extensive critique? We argue that an underappreciated part of the story of the mortgage interest deduction is how its very creation arose out of implicit racial bias and other cognitive biases. First, scholars and policymakers ignored the racialized history of homeownership in the United States and relied on racist tropes in studying the potential economic benefits of the deduction. After such associations occurred, policymakers misattributed to homeownership benefits that were really, at least in part, benefits that flowed from whiteness. Perceiving positive benefits from homeownership, legislators viewed it as a good worth subsidizing through the tax system. Cognitive biases such as confirmation bias then made it unlikely that, once in place, the mortgage interest deduction would be substantially changed.

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June 20, 2022 in Legal Education, Scholarship, Tax, Tax Scholarship | Permalink

Juneteenth And Tax Law

Kay Bell (Don't Mess With Taxes), Juneteenth: A Time to Celebrate and Move Forward, Including Within the Tax Code:

JuneteenthIt's the second year of Juneteenth being celebrated as a federal holiday. Since today is Sunday, federal offices will observe it on Monday, June 20. ...

Now national, but not recognized in all states:  While Texas' continued enslavement of its Black residents was the awful reason for the order, at least my home state was the first to make Juneteenth an official state holiday. That happened in 1980. However, federal June 19 action notwithstanding, today isn't recognized as a legal holiday in most states.

The Pew Charitable Trusts story on Juneteenth and where it is and isn't celebrated at the state level earns the ol' blog's first Sunday Shout Out. ...

Taxes and racial bias: Finally, since this is a tax blog, today's third Juneteenth shout out goes to Brooklyn Law School professor Steven Dean's paper Filing While Black: The Casual Racism of the Tax Law [2022 Utah L. Rev. __ (reviewed by Young Ran (Christine) Kim (Utah, moving to Cardozo; Google Scholar) here):

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June 20, 2022 in Legal Education, Tax | Permalink

Are Legal Lessons Learned In The Trenches More Valuable Than Those Learned In Law School?

ABA Journal Op-Ed:  Are Legal Lessons Learned in the Trenches More Valuable Than Those Learned in Law School?, by Marcel Strigberger ("after 40-plus years of practicing civil litigation in the Toronto area, [he] closed his law office and decided to continue to pursue his humor writing and speaking passions"; author, Boomers, Zoomers, and Other Oomers: A Boomer-biased Irreverent Perspective on Aging (2021)):  

BoomersIs law school learning always practical? According to Albert Einstein, “Education is what remains after one has forgotten what one has learned in school.”

Hmmm. ...

I remember our first torts class. We studied an 1800s British case, Winterbottom v. Wright. Winterbottom was a postal coach driver who sued Wright, whose job it was to repair coaches, after Winterbottom sustained injuries he attributed to Wright’s faulty repair of the vehicle. He sued Wright but lost, as the court ruled there was no privity of contract between him and the repairman. Wright owed no duty to Winterbottom. Badda boom. Badda bing. (The latter are my judicial words.)

At the end of the class, I was proud of my new acquired knowledge, knowing I was on my way to becoming a lawyer. ...

[D]oes this exciting academic inculcation prepare us sufficiently for practice in the real world? The next stage after law school was articling at a law firm. A seasoned trial lawyer named Hank interviewed me.

I proudly handed him my law school transcript, showing great grades—the highest being an A in admiralty (maritime) law. Hank chuckled and said, “Next time two ships collide on the streets of downtown Toronto, you’ll be the first person I’ll call.”

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June 20, 2022 in Legal Ed News, Legal Education | Permalink

Town And Gown, Malibu And Pepperdine

Wall Street Journal, The New HOTTER Malibu:

Decades after Larry Ellison started buying up Malibu real estate, a new group of billionaires is sending prices in the famed beach city higher. Not everyone is happy about it. ...

WSJMalibu, a beach city about 30 miles from downtown Los Angeles, has changed drastically over the last few decades, morphing from a largely undeveloped surf mecca into a pricey playground for celebrities and the uber-wealthy. The change—spurred in part by investment from tech titan Larry Ellison—has sent Malibu real-estate values skyward.

Malibu home prices have climbed even higher since the Covid-19 pandemic. As it became clear that the crisis would continue for some time, some of the country’s wealthiest people fled to Malibu, lured by its uncrowded beaches, sunny weather and relaxed, surftown vibe. They vied to purchase the most sought-after beachfront and blufftop properties, picking over the already small number of available homes for sale. Much like other high-end markets across the country with limited inventory, the Malibu market “took off like a rocket ship” .... And despite mounting evidence that wealthy buyers are starting to pull back from luxury markets across the county, activity in Malibu shows little sign of letting up.

Malibu residents say they are accustomed to celebrities and billionaires moving in from out of town, but even they are shocked by the city’s newest round of big-ticket home sales. The Bohemian character that lured wealthy buyers to Malibu in the first place, some locals said, is on the verge of being irrevocably lost. ...

MalibuOverall, the number of Malibu home sales of $5 million and up swelled to 81 last year, up from 39 in 2019, according to appraisal firm Miller Samuel. In the first quarter, the median price for a single-family home shot to $6.99 million, compared with $4.25 million during the same period of 2021. ...

For many wealthy buyers, the allure of Malibu is its relaxed atmosphere, which allows them to disappear from public view. “When these people come here, they are different,” Mr. Stern said. “People who you normally see on TV all dressed up, here they don’t shave or comb their hair.”

Another reason for Malibu’s popularity among the uber-wealthy is that its beaches are significantly less crowded than those in Santa Monica or Venice Beach, and lack souvenir stands, beach vendors and amusements.

And then there’s Larry Ellison, the co-founder of tech giant Oracle. Mr. Ellison became synonymous with Malibu starting in the early 2000s, when he started buying up numerous homes in the beach city. He now owns around 10 homes on Carbon Beach, and locals say they occasionally spot Mr. Ellison around town or on his yacht docked off Paradise Cove.

But Mr. Ellison didn’t stop at buying homes. He also has ownership stakes in multiple buildings and commercial ventures that helped convert Malibu from a rustic and rundown surf city into an upscale destination, according to his real-estate agent, Kurt Rappaport of Westside Estate Agency. Mr. Ellison turned the PierView Restaurant and Cantina, a casual local eatery popular with students from nearby Pepperdine University, into a high-end Asian restaurant before turning it over to the private club Soho House. Another casual restaurant, known as the Windsail, was transformed into a Nobu restaurant, attracting celebrities such as the Kardashians and Justin Bieber. The Casa Malibu Inn, a low-key 1950s hotel, became the Japanese-inspired Nobu Ryokan Hotel, where rates start at a minimum of $2,000 a night. ...

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June 20, 2022 in Legal Education, Pepperdine Legal Ed | Permalink

Sunday, June 19, 2022

Father's Day And The Prodigal Son

The Federalist Op-Ed:  What I Learned From My Father About The Prodigal Son, by Mike Kerrigan (Hunton Andrews Kurth, Charlotte, NC):

Prodigal SonI was driving home from Mass with my family on Sunday morning. There the readings had included the Gospel of Luke’s parable of the prodigal son [Luke 15:11-32]. It’s the tale of the headstrong son who demanded and squandered his inheritance and then begged for forgiveness, his older brother who never rebelled, and the father who loved them both.

I had always identified with the prodigal son, and figured everyone else did, too. ... I said this to my wife, Devin, as we drove home from church. She said she understood the sentiment, but admitted at times feeling a certain kinship with the dutiful elder son. We clearly had interpreted the lesson differently, which surprised me. I decided to consult my father to break the tie.

I called him from the car, asking which character in the parable he identified with most. “Easy,” he answered. “The father.” Believing God alone had been, well, perpetually cast in that role, I never thought picking the father was an option. It seemed my dad, when faced with multiple-choice options (a) or (b), was puckishly choosing (c) as a write-in answer. Or so I thought.

Weeks later I shared the breezy exchange with Dr. William Muse of Knoxville, Tennessee. Muse, a contemporary of my father. ... “Read this,” he said, pitching me Catholic priest and writer Henri Nouwen’s spiritual classic The Return of the Prodigal Son. ... “Your dad is not wrong. None of you are.”

I devoured the book. It taught me that while we tend to be each actor — prodigal son, elder son, even the father — at different stages of life, we ultimately are called to progress to spiritual fatherhood. That is, we’re called to love one another exactly as the compassionate father did, with self-emptying hearts of mercy.

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June 19, 2022 in Faith, Legal Education | Permalink

'I Can Think Of No Better Father’s Day Gift' Than Passage Of Markel Act Giving Child Visitation Rights To Grandparents Of Deceased Parent

Florida Politics, Advocates Urge Governor to Take Stand for Florida Dads with ‘Markel Act’:

Markel & ParentsOn the eve of Father’s Day weekend, Gov. Ron DeSantis is requesting all remaining bills to be sent his way, including at least two that relate directly to Florida dads.

One — HB 1119, known as the ‘Markel Act’ — has a particular focus on the protection of parental rights, and parental life.

How does a bill that creates limited access to courts for grandparents who have lost a child serve to protect the rights of parents? Here’s how: it creates a disincentive for families to see murder as a viable solution to custody battles. ...

The bill was inspired by the 2014 murder of FSU law professor Dan Markel, who authorities say was murdered by hitmen hired by his ex-wife’s family to secure her ability to move to Miami with her and Markel’s two sons. To date, the three hired accomplices have been brought to justice, while the ex-wife, Wendi Adelson, her brother Charlie Adelson, and her mother Donna Adelson, have been named by prosecutors as co-conspirators. Just after the initial set of arrests, when authorities implicated the Adelson family in the murder plot, Wendi cut off all contact between Markel’s parents and their grandsons. ...

“I can think of no better Father’s Day gift than creating hope for reunification between family members, who as victims of crime themselves, deserve each other’s comfort,” said Karen Cyphers, on behalf of the grassroots group Justice for Dan.

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June 19, 2022 in Legal Ed News, Legal Education | Permalink

Gallup: Belief In God Falls To All-Time Low In U.S.: 81%, Down 6 Percentage Points (12 Percentage Points Among Democrats)

Gallup, Belief in God in U.S. Dips to 81%, a New Low:

The vast majority of U.S. adults believe in God, but the 81% who do so is down six percentage points from 2017 and is the lowest in Gallup's trend. Between 1944 and 2011, more than 90% of Americans believed in God. ... 

Gallup

Belief in God has fallen the most in recent years among young adults [down 10 percentage points] and people on the left of the political spectrum (liberals [down 11 percentage points] and Democrats [down 12 percentage points]). ...

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June 19, 2022 in Faith, Legal Education | Permalink

NY Times: State Judge Rules Yeshiva University Must Recognize LGBTQ Student Club

New York Times, Yeshiva University Must Recognize L.G.B.T.Q. Club, Judge Says:

YU Pride AllianceStudents at Yeshiva University in New York have tried for years to get their school to recognize an L.G.B.T.Q. student club, pushing back on the administration’s argument that its status as a Modern Orthodox Jewish school exempted it from the city’s human rights law.

Last year, a group of students and alumni filed a lawsuit, and on Tuesday a state judge ruled in their favor, declaring that Yeshiva is not a religious institution and so must follow the law and recognize the club [YU Pride Alliance v. Yeshiva University].

Bina Davidson, who had been the co-president of the Y.U. Pride Alliance until she graduated in January, said she and other students were thrilled about the ruling. But their victory may be short lived.

Administrators at Yeshiva, which is named after a type of traditional Jewish religious school that is found all over the world, vowed to appeal. They also said they would ask the courts to stay the decision.

“Any ruling that Yeshiva is not religious is obviously wrong,” said Hanan Eisenman, a university spokesman, in a statement. “As our name indicates, Yeshiva University was founded to instill Torah values in its students while providing a stellar education, allowing them to live with religious conviction as noble citizens and committed Jews.”

The court’s decision, he said, “violates the religious liberty upon which this country was founded” and “permits courts to interfere in the internal affairs of religious schools, hospitals and other charitable organizations.” (While many non-Orthodox Jewish congregations are supportive of L.G.B.T.Q. rights, Orthodox leaders tend to interpret the Torah as promoting more traditional ideas of gender and sexuality.)

The dispute at Yeshiva is the latest front in a heated nationwide debate over the limits of religious freedom and whether houses of worship, religiously affiliated companies and organizations or even pious individuals can be compelled to provide employment or other public accommodations to people with differing views. ...

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June 19, 2022 in Faith, Legal Education | Permalink

The Top Five New Tax Papers

There is quite a bit of movement in this week's list of the Top 5 Recent Tax Paper Downloads, with a new #1 paper and new papers joining the list at #3, #4, and #5:

  1. SSRN Logo (2018)[463 Downloads]  A Matter of High Interest: How a Quiet Change to an Actuarial Assumption Turbocharges the Life Insurance Tax Shelter, by Andrew Granato (J.D.|Ph.D., Yale; Google Scholar)
  2. [364 Downloads]  Tax Neutrality Regimes and GloBE, by Leopoldo Parada (Leeds; Google Scholar)
  3. [209 Downloads]  Designing an Equitable Border Carbon Adjustment Mechanism, by Ivan Ozai (Osgoode Hall; Google Scholar)
  4. [207 Downloads]  Tax Harmony: The Promise and Pitfalls of the Global Minimum Tax, by Reuven Avi-Yonah (Michigan; Google Scholar) & Young Ran (Christine) Kim (Utah; Google Scholar; moving to Cardozo)
  5. [162 Downloads]  Preventing Unacceptable Tax Treaty Overrides, by Craig Elliffe (Auckland; Google Scholar)

June 19, 2022 in Scholarship, Tax, Tax Scholarship, Top 5 Downloads | Permalink

Saturday, June 18, 2022

This Week's Ten Most Popular TaxProf Blog Posts

How Introverted Law Students Can Thrive: Become Tax Lawyers|Tax Professors (And Deans)

John Lande (Missouri), Introversion, the Legal Profession, and Dispute Resolution:

Quiet Introverted LawyerThis article analyzes introversion and discusses the implications of the large proportion of people who are introverted, including many lawyers and other dispute resolution professionals. It relies on two analytical books, Quiet: The Power of Introverts in a World That Can't Stop Talking by Susan Cain and The Introverted Lawyer: A Seven-Step Journey Toward Authentically Empowered Advocacy by Brooklyn Law Professor Heidi K. Brown. It also uses insights from two memoirs: Sorry I’m Late, I Didn’t Want to Come: One Introvert's Year of Saying Yes by Jessica Pan, and Playing with Myself by Randy Rainbow.

There is no agreement about the definition of introversion, but it is a very real phenomenon, even though there isn’t a consistent definition and people may experience and manifest it differently. Introverted people often struggle because of what Susan Cain calls the “extrovert ideal,” which dominates much of Western society. In this context, introversion is viewed as a “second-class personality trait, somewhere between a disappointment and a pathology.” Based on her review of psychological research, she says that introverts can consciously organize their lives to operate at “optimal levels of arousal.”

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June 18, 2022 in Legal Ed Scholarship, Legal Education, Tax | Permalink

Katherine Magbanua To Be Sentenced in Dan Markel's Murder On July 29—Same Time, Day, And Courtroom As Charlie Adelson's Hearing; Will She Cut A Deal And Implicate Adelsons?

WCTV, Magbanua To Be Sentenced July 29 In Dan Markel Murder:

Magbanua AdelsonKatherine Magbanua is now set to be sentenced on July 29 for the murder of Florida State University law professor Dan Markel. ... Magbanua faces a life sentence on the first-degree murder conviction and up to 30 years in prison on the other charges. The state did not seek the death penalty against her.

Court records show the sentencing hearing is set at the same time, day and courtroom as a case management hearing for newly arrested co-defendant Charlie Adelson.

WTXL, Sentencing Date for Katherine Magbanua Set

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June 18, 2022 in Legal Ed News, Legal Education | Permalink

17th Annual Junior Tax Scholars Workshop Concludes Today At Illinois

Ariel Jurow Kleiman (Loyola-L.A.; Google Scholar), Crisis Lawmaking, Automatic Stabilizers, and Democracy
Commentators: Blaine Saito (Northeastern; Google Scholar), Christine Speidel (Villanova; Google Scholar)

Andrew Appleby (Stetson; Google Scholar), Digital Property Taxation
Commentators: Hayes Holderness (Richmond), Shelly Layser (Illinois; Google Scholar; moving to San Diego)

Amanda Parsons (Colorado), The Economic Allegiance of Capital Gains
Commentators: Jonathan Choi (Minnesota; Google Scholar), Eleanor Wilking (Cornell)

Jeesoo Nam (USC; Google Scholar), Just Taxation of Crime: Should the Commission of Crime Change One’s Tax Liability?
Commentators: Blaine Saito, Gaga Gondwe (NYU, moving to Wisconsin)

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June 18, 2022 in Conferences, Legal Education, Scholarship, Tax, Tax Conferences, Tax Scholarship | Permalink

Friday, June 17, 2022

Weekly SSRN Tax Article Review And Roundup: Speck Reviews Galler's Tax Opinion Policies And Procedures

This week, Sloan Speck (Colorado; Google Scholar) reviews a new work by Linda Galler (Hofstra), Tax Opinion Policies and Procedures, 75 Tax Law. 443 (2022).

Sloan-speckIn Tax Opinion Policies and Procedures, Linda Galler analyzes and discusses the results of a 2021 survey of tax professionals’ approaches to opinion practice. In this fourteen-question survey, the American College of Tax Counsel (ACTC) asked its limited membership of lawyers and accountants about their firms’ procedures for reviewing and issuing opinions. Although the ACTC survey’s results are more impressionistic than comprehensive, Galler notes that the survey “provides an excellent starting point” for establishing the current landscape of tax opinion practice (473). After detailing the form and function of tax opinions, as well as ethical considerations in opinion practice, Galler highlights the ACTC survey’s critical results and offers various recommendations for firms and future study.

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June 17, 2022 in Scholarship, Sloan Speck, Tax, Tax Scholarship, Weekly SSRN Roundup, Weekly Tax Roundup | Permalink

Weekly Legal Education Roundup

Tax Policy In The Biden Administration

17th Annual Junior Tax Scholars Workshop Kicks Off Today At Illinois

Illinois college of lawGaga Gondwe (NYU, moving to Wisconsin), The Black Tax: How the Charitable Contribution Subsidy Reinforces Black Poverty, 76 Tax L. Rev. ___ (2023)
Commentators: Jeesoo Nam (USC; Google Scholar), Goldburn Maynard (Indiana-Kelley; Google Scholar)

Hayes Holderness (Richmond), Individual Home-Work Assignments for State Taxes
Commentators: Andrew Appleby (Stetson; Google Scholar), Shelly Layser (Illinois; Google Scholar; moving to San Diego)

Shelly Layser, Fighting the Affordable Housing Crisis Through State-Federal Tax (Dis)Conformity
Commentators: Andrew Appleby, Hayes Holderness

Blaine Saito (Northeastern; Google Scholar), Public Tax Actors
Commentators: Ariel Jurow Kleiman (Loyola-L.A.; Google Scholar), Jeesoo Nam

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June 17, 2022 in Conferences, Legal Education, Scholarship, Tax, Tax Conferences, Tax Scholarship | Permalink

Federal District Court Allows Linda Mullenix's Gender Discrimination Equal Pay Claim To Proceed Against The University Of Texas Law School

Litigation Bias

Adam Eckart (Suffolk), Litigation Bias, 101 Or. L. Rev. __ (2022):

Oregon Law ReviewThere is pervasive litigation bias in law schools. Despite significant interest in transactional law fields among law students, law schools disproportionately teach to the student interested in litigation: litigation-based legal writing assignments outnumber transactional-based ones 19 to 1; litigation-based clinics outnumber transactional ones 9 to 1; and doctrinal classes focus primarily on appellate court cases, often failing to entertain substantive discussion on the creation or content of the documents that led to the dispute. As a result, law school graduates are 44% less prepared for transactional careers than litigation careers.

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June 17, 2022 in Legal Ed Scholarship, Legal Education, Scholarship | Permalink

Thursday, June 16, 2022

Mason: Does The Prohibition Of State Aid Limit Tax Competition?

Ruth Mason (Virginia; Google Scholar), Does the Prohibition of State Aid Limit Tax Competition?:

At the inception of a new and potentially transformative type of tax enforcement, this Article reviews the goals underlying the prohibition on state aid and whether they properly encompass limitations on tax competition. To explore this question, this Article examines treaty text and structure, doctrine, and policy arguments for and against using state aid to curb tax competition. It concludes that the Commission’s expansion of state-aid doctrine to limit tax competition improperly constrains Member State tax autonomy, arrogates tax policy power to the unelected Commission, and increases legal uncertainty. This Article urges the Court of Justice to clarify that preventing tax competition is not an independent goal of state-aid enforcement, although limits on tax competition may arise instrumentally via a free-trade interpretation of the prohibition of state aid. Unlike the anti-tax-competition interpretation, the free-trade interpretation of the prohibition of state aid is well grounded in history, text, and regulatory guidance.

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June 16, 2022 in Scholarship, Tax, Tax Scholarship | Permalink

A Supreme Dilemma: Admissions v. Representation In Law School And Legal Profession

Ahmuan Williams (Oklahoma), A Supreme Dilemma: Admissions v. Representation in Law School and Legal Profession:

Diversity in the legal profession does not have to be a myth, but we have to put in the effort to do it. A Supreme Dilemma: Admissions v. Representation in Law School and Legal Profession gives you an idea of the challenges and history of being a minority in the legal profession created exclusively for white men. This paper examines affirmative action and its need to diversify the legal profession. It starts by examining the controversies in diversity and the legal profession. Then it acknowledges the positive impacts of diversity initiatives in the legal profession. It concludes by recommending that we adopt long-term diversity initiatives through our state constitutions, amendments, and education.

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June 16, 2022 in Legal Ed Scholarship, Legal Education, Scholarship | Permalink

Zelinsky: The Case For Letting States Experiment With Private Sector Retirement Savings Plans

Edward A. Zelinsky (Cardozo), How Should Congress Respond to Jarvis? The Case for Letting States Experiment With Private Sector Retirement Savings Plans:

The U.S. Supreme Court has ended the saga of Howard Jarvis Taxpayers Association v. California Secure Choice Retirement Savings Program by declining to review the decision of the U.S. Court of Appeals for the Ninth Circuit. By refusing to review this circuit court decision, the Supreme Court left intact that decision and its holding that ERISA does not block the CalSavers IRA program.

In the wake of these events, some urge the federal government to move into the space occupied by CalSavers and other state programs encouraging less affluent Americans to save for retirement. I instead propose that, the post-Jarvis world, Congress should eschew any mandate that private employers adopt IRAs or other retirement programs for their employees. The states should continue to experiment in this area rather than the federal government imposing a single national pattern. Different states will pursue different courses, thereby testing alternative possibilities. Experimentation by the states will provide information about diverse approaches.

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June 16, 2022 in Scholarship, Tax, Tax Scholarship | Permalink

HBCU Law Schools Face Severe Underfunding

Law.com, HBCU Law Schools Face Severe Underfunding: 'Do We Have a Belt' Left to Tighten?:

HBCU (2019)There are six Historically Black Colleges and Universities law schools in the U.S., established because Black students were denied access to law school, and each is struggling due to underfunding.

The six HBCU law schools and deans are as follows: Florida A&M University College of Law with dean Deidre Keller; Howard University School of Law with dean Danielle Holley-Walker; North Carolina Central University School of Law, where dean Browne C. Lewis recently died; Southern University Law Center with John Pierre as chancellor; Texas Southern University Thurgood Marshall School of Law with dean Joan R.M. Bullock; and the University at the District of Columbia David A. Clarke School of Law with dean Renee McDonald Hutchins. ...

The six HBCU law schools are responsible for approximately 25% of the law degrees earned by Black students, while the six accredited law schools make up just 3% of the nation’s law schools, Pierre wrote in an article published in The National Jurist in April [The Value of HBCU Law Schools]. ...

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June 16, 2022 in Legal Ed News, Legal Education | Permalink

Piketty Calls For 'Participatory Socialism': $150,000/Person Universal Inheritance, 'Confiscatory' Income And Wealth Taxes

New York Times, Thomas Piketty's Case For 'Participatory Socialism':

Brief History of InequalityThe French economist Thomas Piketty is arguably the world’s greatest chronicler of economic inequality. For decades now, he has collected huge data sets documenting the share of income and wealth that has flowed to the top 1 percent. And the culmination of much of that work, his 2013 book Capital in the Twenty-First Century, quickly became one of the most widely read and cited economic texts in recent history.

Piketty’s new book, A Brief History of Equality, is perhaps his most optimistic work. In it, he chronicles the immense social progress that the U.S. and Europe have achieved over the past few centuries in the form of rising educational attainment, life expectancy and incomes. Of course, those societies still contain huge inequalities of wealth. But in Piketty’s view, this outcome isn’t an inevitability; it’s the product of policy choices that we collectively make — and could choose to make differently. And to that end, Piketty proposes a truly radical policy agenda — a universal minimum inheritance of around $150,000 per person, worker control over the boards of corporations and “confiscatory” levels of wealth and income taxation — that he calls “participatory socialism.”

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June 16, 2022 in Book Club, Scholarship, Tax, Tax Scholarship | Permalink

The ABA Proposes Eliminating Standardized Tests For Law School Admissions

Following up on my previous post, ABA Council Votes 20-1 To Advance Proposal Permitting Law Schools To Go Test Optional. What Are The Implications Of Admitting Students Who Don't Take The LSAT Or GRE?:  Inside Higher Ed, The ABA Proposes Eliminating Standardized Tests For Law School Admissions:

ABA Legal Ed (2021)The leading law school accreditor has proposed eliminating the standardized test requirement for admissions. Proponents argue it would increase diversity, but detractors fear a loss of accountability.

In April, the American Bar Association’s Council on Legal Education, which accredits 196 law schools across the U.S., proposed eliminating a requirement that accredited schools use the Law School Admission Test or some equivalent “valid and reliable” standardized test in their admissions process. The ABA council clarified that law schools “would remain free to require a test if they wish.”

If accepted, the proposal would take effect for law school classes beginning in fall 2023.

The LSAT is by far the most widely used assessment for law school admissions, and any aspiring lawyer can attest to the weight a good LSAT score can have on a school’s decision. But as consensus builds for a re-evaluation of the role of standardized testing in other areas of higher education, the debate over its benefits has reached law school admissions. Opinion is sharply divided—and impassioned on both sides.

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June 16, 2022 in Legal Ed News, Legal Education | Permalink

Wednesday, June 15, 2022

Saito: Tax Coordination

Blaine Saito (Northeastern; Google Scholar), Tax Coordination, 38 Ga. St. U. L. Rev. 735 (2022) (reviewed by Hayes Holderness (Richmond) here):

The United States implements much of its social policy through its income tax laws. The Code is rife with tax expenditures for education, housing, community economic development, retirement savings, and health care to name a few. But the IRS is not an agency with expertise in any of these areas and developing such expertise would draw resources away from its core tax administration mission. Commentators have thus called for a series of changes from turning these tax expenditures into outlays for these programs to divesting the IRS/Treasury of most of the administration of social policy tax expenditures. Yet, given American politics and the institutional structure of the federal government, these moves are both unlikely to occur and unwise.

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June 15, 2022 in Scholarship, Tax, Tax Scholarship | Permalink

How COVID-19 Made Me A Better Law Teacher

Amy Soled (Rutgers), How COVID-19 Made Me a Better Teacher, 34 The Second Draft 1 (2021):

COVID-19 has caused havoc in the world as we know it, altering every aspect of life, including education. The pandemic forced me and other educators to teach online, and by doing so, it has made me a better teacher. I now (1) employ more teaching techniques; (2) assess more frequently; and (3) engage every student. As I emerge from the COVID-19 pandemic, I have reflected on the positive lessons I learned from teaching online, lessons that I plan to bring with me when I return to the classroom.

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June 15, 2022 in Legal Ed Scholarship, Legal Education, Scholarship, Teaching | Permalink

GOP Eyes Tax Changes As Roe v. Wade Hangs In The Balance

Law360, GOP Eyes Tax Changes As Roe Hangs In Balance:

Republicans could push to implement changes in the tax code that would restrict access to abortion and incentivize childbirth if the U.S. Supreme Court overturns Roe v. Wade and the GOP regains control of Congress and the White House.

Carliss Chatman, an associate professor at the Washington and Lee University School of Law, told Law360 that Republicans will likely try to codify anti-abortion language in the tax code in a post-Roe world. They've signified their intent to do so in several proposals introduced during the current legislative session, despite Democratic majorities in the House and Senate and Democratic President Joe Biden in the White House.

However, if the balance of power changes, Republican proposals introduced this session could provide a blueprint for policy changes to come.

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June 15, 2022 in Tax, Tax News | Permalink

Harvard-led Citation Cartel Rakes in Millions From Bluebook Manual Monopoly, Masks Profits

Dan Stone, Harvard-led Citation Cartel Rakes in Millions from Bluebook Manual Monopoly, Masks Profits:

According to the financial statements of the Harvard Law Review, 12 the Bluebook’s net profits were $1.2 million in 2020 and totaled $16.0 million in the ten years between 2011 and 2020. ...

The Harvard Law Review administers the Bluebook and manages its distribution. For its work, the HLR receives a 8.5% cut of the Bluebook’s net profits as “administrative fees.” (Historically it has been higher, and prior to a 1974 revolt by the other law reviews Harvard took all the money.) After the HLR takes its administrative fees, the remaining profits are distributed equally among all four law reviews.

Bluebook

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June 15, 2022 in Legal Ed News, Legal Education | Permalink

Avi-Yonah & Salaimi: A New Framework For Taxing Cryptocurrencies

Reuven Avi-Yonah (Michigan; Google Scholar) & Mohanad Salaimi (S.J.D. 2022, Michigan), A New Framework for Taxing Cryptocurrencies, 175 Tax Notes Fed. 1391 (May 30, 2022):

Tax Notes Federal (2020)In this article, Avi-Yonah and Salaimi propose a new framework for taxing cryptocurrency throughout its life cycle. This article summarizes Avi-Yonah and Salaimi, A New Framework for Taxing Cryptocurrencies (Mar. 31, 2022).

This article describes a proposal to tax cryptocurrencies based on their unique features.1 It argues that while various ways of earning or receiving crypto tokens (for example, mining in proof-of-work (PoW) protocols like bitcoin and staking in proof-of-stake (PoS) protocols like ether) generate taxable income, the tax results should take into account positive and negative externalities. It also claims that because of its volatility, crypto should not be taxed until tokens are exchanged for real-world items like fiat currency or goods and services. Finally, this article argues that when crypto tokens are exchanged for fiat currencies or goods and services, they should be treated as foreign currency if held for less than one year. ...

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June 15, 2022 in Scholarship, Tax, Tax Analysts, Tax Scholarship | Permalink

Reflections On Legal Education In The Aftermath Of A Pandemic

Timothy Casey (California Western), Reflections on Legal Education in the Aftermath of a Pandemic, 28 Clinical L. Rev. 85 (2021):

This essay considers two significant changes to legal education in the aftermath of the COVID-19 pandemic. First, on-line programs will expand, based on the largely successful experiment in delivering legal education on-line during the pandemic. But this expansion must be thoughtful and deliberate. The legal education curriculum could include more on-line courses, but only if the learning outcomes and the pedagogy are aligned with on-line education. Experiential courses may not be the best fit for on-line given the specific learning outcomes and the benefits of in-person instruction in those courses.

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June 15, 2022 in Legal Ed Scholarship, Legal Education, Scholarship | Permalink

Tuesday, June 14, 2022

Choi: Beyond Purposivism In Tax Law

Jonathan H. Choi (Minnesota; Google Scholar), Beyond Purposivism in Tax Law, 107 Iowa L. Rev. 1439 (2022):

Iowa Law Review 2 (2022)Conventional wisdom holds that purposivist theories of statutory interpretation solve the problem of tax shelters, because shelters comply with the text but not the purpose of tax statutes. But the predominant form of purposivism in tax scholarship, which combines specific statutory purposes with general structural principles of tax law, cannot separate shelters from ordinary tax planning. Although tax shelters claim benefits that exceed specific purposes and do not align with objective general principles, so do some widely accepted tax strategies.

This Article therefore proposes a new framework to go beyond purposivism in tax law, complementing purposivist techniques with pragmatism or doctrinalism. Pragmatism applies explicit policy judgments when statutory purposes run out; doctrinalism applies rules, like canons of construction, that provide determinate answers when statutory purpose is ambiguous. Pragmatism generally leads to better results in any particular case, while doctrinalism provides taxpayers certainty in planning legitimate transactions.

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June 14, 2022 in Scholarship, Tax, Tax Scholarship | Permalink

Deo: The End of Affirmative Action

Meera E. Deo (Southwestern), The End of Affirmative Action, 100 N.C. L. Rev. 237 (2021):

We have arrived at the end of affirmative action. Now, more than ever, institutions of higher learning must move beyond a single-minded focus on educational diversity, which admits students of color primarily to enrich the classroom experiences of their white peers and then ignores what they may need to maximize both engagement and retention. Instead, affirmative action programs need an immediate update; they should take contemporary issues of race and racism into account, as well as the lived realities of students of color—by including multiracial students, recognizing diversity beneath the student of color umbrella, acknowledging intra-racial differences in pan-ethnic groups, and accepting that the resources and realities of Black immigrants differ from native-born Black Americans. Furthermore, to maximize the benefits of educational diversity, institutions must also prioritize equity and inclusion once students are enrolled.

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June 14, 2022 in Legal Ed Scholarship, Legal Education, Scholarship | Permalink

Practical Considerations In Starting And Operating An Academic Low-Income Taxpayer Clinic

Amy Spivey (UC-Hastings) & Manoj Viswanathan (UC-Hastings; Google Scholar), Practical Considerations in Starting and Operating an Academic Low-Income Taxpayer Clinic, 76 Tax Law. __ (2022):

ABA Tax Lawyer (2022)Low-income taxpayer clinics (“LITCs”) provide legal assistance to underserved clients with active federal tax controversies, conduct educational outreach to low-income and English-as-a-second-language taxpayers, and work to ensure the fairness and integrity of the tax system. Despite the availability of IRS grant funding for LITCs and the alignment of LITC goals with the core values that underlie clinical legal education, a relatively small percentage of U.S. law schools currently operates an LITC. Moreover, many law school LITCs have closed within the past ten years, demonstrating that even if started, academic LITCs are challenging to sustain.

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June 14, 2022 in ABA Tax Section, Legal Ed Scholarship, Legal Education, Scholarship, Tax, Tax Scholarship | Permalink

Assessing Affirmative Action's Diversity Rationale: Student-Run Law Reviews

Adam Chilton (Chicago; Google Scholar), Justin Driver (Yale), Jonathan S. Masur (Chicago; Google Scholar) & Kyle Rozema (Washington University; Google Scholar), Assessing Affirmative Action's Diversity Rationale, 122 Colum. L. Rev. 331 (2022):

Columbia Law ReviewEver since Justice Lewis Powell’s opinion in Regents of the University of California v. Bakke made diversity in higher education a constitutionally acceptable rationale for affirmative action programs, the diversity rationale has received vehement criticism from across the ideological spectrum. Critics on the right argue that diversity efforts lead to “less meritorious” applicants being selected. Critics on the left charge that diversity is mere “subterfuge.” On the diversity rationale’s legitimacy, then, there is precious little diversity of thought. In particular, prominent scholars and jurists have cast doubt on the diversity rationale’s empirical foundations, claiming that it rests on an implausible and unsupported hypothesis.

To assess the diversity rationale, we conduct an empirical study of student-run law reviews.

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June 14, 2022 in Legal Ed Scholarship, Legal Education, Scholarship | Permalink

Blue J's AI Prediction Of Result Of Tax Court Appeal Faces First Test In Federal Circuit Court

Benjamin Alarie (Osler Chair in Business Law, University of Toronto; CEO, Blue J Legal) & Christopher Yan (Senior Legal Research Associate, Blue J Legal), Disguised Distributions and Management Fees: Aspro Revisited, 175 Tax Notes Fed. 1401 (May 30, 2022):

Tax Notes Federal (2020)In this article, Alarie and Yan analyze the Eighth Circuit’s recent decision in Aspro concerning the deductibility of management fees the business paid to its shareholders.

In our Blue J Predicts column we use advances in machine learning to analyze pending or recently decided federal income tax cases. This month we follow up on the appeal of a Tax Court decision that we first examined in October 2021. In Aspro, the taxpayer challenged the IRS’s determination that the “management fees” it paid were not deductible because they were disguised corporate distributions of profits. Our initial analysis focused on the pending appeal and on April 26 the Eighth Circuit released its opinion, upholding the Tax Court’s decision. This is the first time a case we have examined in Blue J Predicts has been decided by an appellate court since we began the column in mid-2021.

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June 14, 2022 in Scholarship, Tax, Tax Analysts, Tax Scholarship | Permalink

Mitchell|Hamline Is First ABA-Accredited Law School To Enroll Prison Inmate In JD Program; Student Serving Life Sentence Without Parole For First Degree Murder Will Take Classes Online

Reuters, A Law Degree From Prison? Minnesota School Says Enrollee Is a First:

Onyelobi 1A Minnesota law school is poised to become the first American Bar Association-accredited law school with a J.D. student attending class from inside prison.

Mitchell Hamline School of Law said Monday that Maureen Onyelobi, who is serving a sentence of life without parole for aiding and abetting a 2014 murder, will be the school's first incarcerated student this fall.

Officials at the St. Paul school last month received permission from the ABA to enroll up to two incarcerated students in each of the next five years and is allowing them to attend class fully online. The Minnesota Department of Corrections has also granted its approval.

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June 14, 2022 in Legal Ed News, Legal Education | Permalink

Monday, June 13, 2022

Virginia Tax Review Publishes New Issue

Virginia Tax Review (2016)The Virginia Tax Review has published Vol. 41, No. 1 (Fall 2021):

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June 13, 2022 in Scholarship, Tax, Tax Scholarship | Permalink

Legal Ed News Roundup

Death Of John Simon (Yale)

YLS Today, Yale Law School Mourns the Loss of Professor Emeritus John G. Simon (New York Times Obituary):

SimonJohn G. Simon ’53 LL.B., the Augustus Lines Professor Emeritus of Law at Yale Law School, died on Feb. 14, 2022 at the age of 93 in Hamden, Connecticut.

“John Simon was a beloved teacher, colleague, and friend,” said Dean Heather K. Gerken. “His devotion to the School was unparalleled, he pioneered the study of nonprofits and philanthropy, and he shaped the careers of generations of students. We have lost a giant, and we mourn his loss throughout our community.”

Born Sept. 19, 1928, Simon graduated from Harvard College, where he was the president of the Harvard Crimson, before earning his law degree from Yale Law School in 1953. After law school, Simon served in both military and civilian capacities in the Office of General Counsel, Office of the Secretary of the Army, and practiced law in New York with the firm of Paul, Weiss, Rifkind, Wharton & Garrison from 1958 to 1962.

Simon joined the Yale Law School faculty in 1962, specializing in teaching and research related to the nonprofit sector and philanthropy, as well as elementary and secondary school education. He also taught courses in contracts, aging and the law, and family law. Simon served as Deputy Dean from 1985–1990, and Acting Dean in 1991.

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June 13, 2022 in Legal Education, Obituaries, Tax | Permalink

David Lat Interviews Ilya Shapiro About His 'Constructive Cancellation' At Georgetown Law School

David Lat (Original Jurisdiction), Constructive Cancellation: An Interview With Ilya Shapiro:

Georgetown (2016)There’s a term in employment law called “constructive dismissal,” “constructive discharge,” or “constructive termination.” It happens “when an employee resigns as a result of the employer creating a hostile work environment. Since the resignation was not truly voluntary, it is, in effect, a termination.”

This concept came to mind as I followed the saga of Ilya Shapiro, the prominent libertarian legal scholar who just resigned from Georgetown Law. ...

I largely agree with Shapiro’s second WSJ op-ed and the commentary supporting his decision to part ways with GULC—e.g., a WSJ staff editorial, a National Review piece by Dan McLaughlin, and a Legal Insurrection post by William Jacobson. But just as I wondered why GULC took four months to decide it wouldn’t fire Shapiro based on a technicality, I wondered: why did Shapiro quit Georgetown Law just four days after celebrating his reinstatement in the pages of the Wall Street Journal?

Earlier today, I connected with Shapiro by phone to discuss this and other topics. Here’s a (lightly edited and condensed) write-up of our conversation. ...

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June 13, 2022 in Legal Ed News, Legal Education | Permalink

Lesson From The Tax Court: Ask The Right Court

Camp (2021)It’s sweet to beat the tax man.  It’s even sweeter when you can make the government pay your litigation costs and attorneys fees under §7430.  But the bitter lesson for today is that you must be careful to ask the right court.  Law is hierarchical.  You can appeal a lower court’s adverse decision to a higher court.  But you cannot appeal a higher court’s adverse decision to a lower court!

In Celia Mazzei v. Commissioner, T.C. Memo. 2022-43 (May 2, 2022) (Judge Thornton), the taxpayer asked the wrong court for attorneys fees and because of that had nowhere to go when the court denied fees.  Ms. Mazzei had fought the IRS for over 10 years, losing in Tax Court in a reviewed opinion in 2018.  Undaunted, she appealed to the Ninth Circuit.  She won!  Yay!  Her attorneys then filed a “protective” motion with the Ninth Circuit for both her appellate litigation costs (about $70,000) and her trial court litigation costs (some $330,000).  The government argued that its litigating position was substantially justified.

The Ninth Circuit’s response was disappointingly succinct: “denied.”  Undaunted, Ms. Mazzei’s attorneys then asked the Tax Court for the $330,000 in trial court litigation costs.  The government opposed the motion for the same reason it gave the Ninth Circuit.  Judge Thornton, however, rejected the §7430 request for a different reason.  He ruled that the  Ninth Circuit’s single word left the Tax Court powerless to act on the request.  Appeals go up the hierarchy, not down.  The taxpayer had asked the wrong court.  Details below the fold.

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June 13, 2022 in Bryan Camp, New Cases, Scholarship, Tax Practice And Procedure, Tax Scholarship | Permalink | Comments (0)