A Year Of Lessons From The Tax Court (2023)

Here is a chronological listing of all the Lessons From The Tax Court I posted in 2023, with links to the Lesson, the primary case discussed, and its author.  I have also listed the primary Code sections mentioned or discussed in the Lesson.  At the end of the chronological listing, you will find a table listing the posts by which Tax Court Judge authored the Court's opinion.

January 23: The Meaning Of 'Business Premises' In §119, Cory H. Smith v. Commissioner, T.C. Memo. 2023-12 (Jan. 12, 2023) (Judge Toro) — §119

January 30: Corporations In The Bardo, XC Foundation v. Commissioner, T.C. Memo. 2023-2 (Jan. 5, 2023) (Judge Lauber) — §7428, Rule 60(a), California Revenue and Taxation Code (RTC) §23301 - §23311, §4941, §7428, §4941

February 6: The Tax Court Is Not Your Advocate, Robert B. Lucas v. Commissioner, T.C. Memo. 2023-9 (Jan. 17, 2023) (Judge Urda) — §72(t), §213

February 13: Mortgage Interest Deductions When The Payor Is Not The Borrower, Hrach Shilgevorkyan v. Commissioner, T. C. Memo. 2023-12 (Jan. 23, 2023) (Judge Ashford) — §163, §280A(d)(1), Treas. Reg. 1.121-2(b)(2)

 

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A Year Of Lessons From The Tax Court (2022)

Here is a chronological listing of all the Lessons From The Tax Court I posted in 2022, with links to the Lesson, the primary case discussed, and its author.  I have also listed the primary Code sections mentioned or discussed in the Lesson.  At the end of the chronological listing, you will find a table listing the posts by which Tax Court Judge authored the Court's opinion.

January 18: The Tacit Consent Rule, Om P. Soni and Anjali Soni v. Commissioner, T.C. Memo. 2021-137 (Dec. 1, 2021) (Judge Copeland) — §6013, §223, §51(b), §301(d), §6061(b), §6651, §6662

February 7: The Innocence Requirement In § 6015(c) Proportional Relief, Tara K. Tobin (Petitioner) and Jeffrey Tobin (Intervenor) v. Commissioner, T.C. Summ. Op. 2021-36 (Nov. 16, 2021) (Judge Guy) — §6015(c) 

February 14: The Proper Baseline For Offers In Compromise, Edmund Gerald Flynn v. Commissioner, T.C. Memo. 2022-5 (Feb. 3, 2022) (Judge Urda) — §7122

February 22: The Tax Liabilities You Leave Behind, Estate of Anthony K. Washington v. Commissioner, T.C. Memo. 2022-4 (Feb. 2, 2022) (Judge Toro) — §6323

 

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The Tax Consequences Of Name, Image, And Likeness Rules For College Athletes

Following the Supreme Court’s decision in National Collegiate Athletic Association v. Alston, 594 U.S. ___ (2021), the NCAA started allowing college athletes to accept payments for use of their name, image and likeness, effective July 1, 2021. That change in policy has created a host of various compliance issues, such as trademark licensing issues. It also has created tax issues for the student-athletes. Frank Messina (Alabama) and Marena M. Messina (Alabama) address the basics in their article “A Primer on the Income Tax Consequences of the NCAA’s Name, Image, and Likeness (NIL) Earnings for College Athletes,” 4 Journal of Athletic Development and Experience 189 (2022).  From the article's abstract: "Athletes must learn to understand the tax rules associated with the income from the NIL.”  Click the "continue reading" button for the full abstract .

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A Year Of Lessons From The Tax Court (2021)

Here is a chronological listing of all the Lessons From The Tax Court I posted in 2021, with links to, the Lesson, the primary case discussed and its author.  I have also listed the primary Code sections mentioned or discussed in the Lesson.  At the end of the chronological listing, you will find a table listing the posts by which Tax Court Judge authored the Court's opinion.

January 11: Too Much Control Over IRA Distribution Makes It Income (Brett John Ball v. Commissioner, T.C. Memo. 2020-152 (Nov. 10, 2020) (Judge Halpern) — §72, §408, §451, §671, §4975)

January 19, 2021: The CDP Silver Linings Playbook (Wiley Ramey v. Commissioner, 156 T.C. No. 1 (Jan. 14, 2021) (Judge Toro) — §6320, §6330)

January 25, 2021: No Deduction for Disguised Dividends (Aspro, Inc. v. Commissioner, T.C. Memo. 2021-8 (Jan. 21, 2021) (Judge Pugh) — §162)

February 1: No Product? No §162 Deduction! (William Bruce Costello and Martiza Legarcie v. Commissioner, T.C. Memo. 2021-9 (Jan. 25, 2021) (Judge Halpern) — §162, §212)

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A Year Of Lessons From The Tax Court (2019)

Here is a chronological listing of all the Lessons From The Tax Court I posted in 2019, with links to, the Lesson, the primary case discussed and its author.  I have also listed the primary Code sections mentioned or discussed in the Lesson.  

January 7: The Cheeky' Way To Avoid The Fraud Penalty, Richard C. Mathews v. Commissioner, T.C. Memo 2018-212 (Judge Vasquez) — §6663, §6501(c), §6663(a), 91(f)(3)

January 14: OIC Rejection Is No Basis For Wrongful Collection Suit Under §7433, Morales v. United States (Morales I) & Morales v. United States (Morales II) (Judge Martinotti) — §7433, §7122, Treas. Reg. 301.7433-1(e)

January 22: Court Budgets (Lesson from the Shutdown) 

January 28: Overbearing Oversight? (Lesson from Congress)

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Lesson From Congress: Overbearing Oversight?

Today’s lesson comes from Congress.  It is a primer on IRS oversight.  It was prompted by an amazing letter I found buried on my desk.  

In an October 2015 hearing, House Ways and Means Committee member Diane Black questioned then IRS Commissioner John Koskinen about the lack of IRS responses to 10 GAO oversight recommendations from July 2015. 

On October 23, 2015, Koskinen sent her a letter.  The letter explained the status of the 10 oversight recommendations.  It then also explained the status of 200 additional recommendations from the prior three years, recommendations the IRS had also not responded to.  Of the 210 total, 167 had not yet reached their original due dates for responsive actions.  The other 43 were late but had received extensions from the oversight bodies who had made the recommendations: the Government Accountability Office (GAO) and the Treasury Inspector General for Tax Administration (TIGTA). 

The number 210 is not the amazing part.  The amazing part is that the letter explained that during that same three-year period, the IRS has dealt with some 1,240 oversight recommendations just from GAO and TIGTA.  That number does not even include the myriad directives and orders from various Congressional oversight committees, nor the yearly Congressional-mandated oversight from the National Taxpayer Advocate.  Thinking about the FTE’s needed to address just these 1,240 recommendations makes me dizzy. 

I think you will be impressed by the amount of oversight the IRS is subject to; I make no prediction on whether your impression will be good or bad.  But I hope today's lesson helps you understand that, as the IRS re-opens with its depleted workforce, it faces more than the tsunami of correspondence from worried taxpayers, and a first return filing season under the wicked complexities of the Tax Cuts and Jobs Act.  It must also keep responding to a relentless review of every facet of its operations.  Most of the review is done in good faith.  Some of it is not, as I explain below the fold.  But either way, one can reasonably ask how much is too much.  Does the amount of oversight truly make for better tax administration, or not.

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Lesson From The Shutdown: Court Budgets

The partial government shutdown has affected different courts differently.  Readers likely know that the Tax Court closed December 28th but still held trial calendars the week of January 14.  For a while the Court said that later calendars would also go forward but as the shutdown wore on the Court wore down: it has now cancelled the trial calendars for January 21, 28, and February 4th and 11th.  The Court issued its last pre-shutdown opinion on December 27th.  It has since continued issuing orders as needed for pending cases but has issued no opinions or designated orders.  

In contrast to the Tax Court, all other federal courts remained open.  The Administrative Office of the U.S. Courts (AO) administers the federal judicial branch, both the Article III judges and their Article I adjuncts, such as magistrates and bankruptcy judges.   It has made several announcements on its website about those courts' operation during the shutdown.  The current announcement says those courts will remain open through January 25th.  In addition, the other Article I courts have remained open: (1) the Court of Appeals for the Armed Forces; (2) the Court of Appeals for Veterans Claims; and (3) the Court of Federal Claims; and (4) the Court of International Trade. 

I was curious, particularly about why the Tax Court was closed when the other Article I courts remained open.  It turns out the reason has to do with funding.  It is not intuitive.  I share my results below the fold.  As usual, I invite those with deeper knowledge to help out by using the comment function to correct any error or to give further explanation. 

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A Year Of Lessons From The Tax Court (2018)

Here is a chronological listing of all the Lessons From The Tax Court I posted in 2018, with links to, the Lesson, the primary case discussed and its author.  I have also listed the primary Code sections mentioned or discussed in the Lesson.  

January 8: Reporting Income v. Reporting Information, Mehrdad Rafizadeh v. Commissioner, 150 T.C. No. 1 (January 2, 2018) — IRC §6038D, §6501

January 15: What Are They Thinking?, Curtis Eugene Ankerberg v. Commissioner, T.C. Memo. 2018-1 (Jan. 8, 2018) (Judge Cohen) & Joan Farr f.k.a. Joan Heffington v. Commissioner, T.C. Memo. 2018-2 (Jan. 9, 2018) (Judge Chiechi) — IRM 4.10.4.6.4, §4958

January 22: Treasury Regulations And The APA, SIH Partners LLLP, et al. v. Commissioner, 150 T.C. No. 3 — Treas. Reg. 1.217-2(b)(1), Treas. Reg. 1.162-6, Section 951, §956, 1.956-1, 1.956-2, 29 Fed. Reg. 2591, 2599

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Can 'Dumb' Contracts Be Made 'Smart'?

I don't know if it's ready for Broadway, but the article I mentioned in a post a while back (it's gained two quotation marks since then:  The Persistence of "Dumb" Contracts) is all set for out-of-town previews on SSRN.  

There is a group calling themselves Blockgeeks, and one of their number shows up in footnote 1 for this headline from its website: “Smart Contracts: The Blockchain Technology That Will Replace Lawyers”.

The theme of the article is: "could that be?"  Spoiler alert: Probably not. Here is the abstract:

“Smart contracts” are a hot topic. Presently, smart contracts mostly consist as evidence of property, like crypto-currencies or mortgages, created and/or transferred on blockchain technology. This is an exploration of the theoretical possibilities of artificial intelligence in a far broader range of complex and heretofore negotiated transactions that occur over time. My goal is to understand what it means to make a contract smarter, i.e. to delegate more and more of the creation, performance, and disposition of legally binding transactions to machine thinking. Moreover, I want to do so from the perspective of one who is neither a true believer in the purported technological singularity to come nor a digital Luddite.

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The Rule Of Law Is Not A Rule Of Law: Thoughts On Solum And Meyer

Pardon me while I diverge from the topic of legal education to talk about something abstract like "the rule of law," provoked by recent work of two of my favorite legal educators.  

On April 4, Larry Solum (Georgetown) delivered the Regula Lecture at the University of Akron on "Surprising Originalism", which you can watch here.  I am always interested in what Larry has to say, first, because we share some common interests in language and philosophy, and, second, because he delivers it so well.  If I can summarize his point quickly, it is that (1) sensible originalism is possible if we look not at the founders' intentions, but what the words of the constitutional text actually meant at the time they were uttered; and (2) that originalism in constitutional interpretation is preferable to alternatives like the "living constitution" because the former is more likely to preserve the rule of law - that is, as a restraint on rule by pure power and might.  Larry's particular contribution is the application of the work of the philosopher of language H.P. Grice to the constitutional text - looking not merely at the semantics of the sentences as written, but at their pragmatics as well.  At the time they were written, what did they say but, more importantly, what did they implicate to the public that would have read or heard the words?

I am not a constitutional scholar, but I have my own reasons for being interested in Grice.  Robin Bradley Kar and Margaret Radin have just placed the first Harvard Law Review article on contract law in over ten years.  They use Grice's principles to argue that extensive boilerplate and click-throughs in consumer and other contracts ought not to be considered part of the parties' actual agreement.  I wrote a response, not necessarily disagreeing with the policy issues regarding boilerplate, but taking issue with, among other things, the references to Grice.

I didn't take issue with Larry Solum's point (1) above, at least in terms of thinking about constitutional meaning as guided by Grice.  What I wondered about, as I listened to his lecture, was the move in point (2) - that hewing to a philosophy of constitutional originalism was central to the rule of law.  What went through my head was a line I have used before: "the rule of law is not a rule of law."

So I was delighted to see that Linda Meyer (Quinnipiac) happens to have just posted an essay that expands far more eloquently on that thought.  It is not a direct response to Larry Solum's argument; I'm the one making that connection!  Her essay is Sisyphus and the Clockmaker: Two Views of the Rule of Law in Keally McBride's 'Mr. Mothercountry: The Man Who Made the Rule of Law.'  You can see from the abstract why it caught my eye:

This essay is an engagement with Keally McBride's excellent book, "Mr. Mothercountry: The Man Who Made the Rule of Law," and argues that the rule of law is not a law of rules, but a culture of self-restraint and humility.

Some comments below the break.

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Classic Lesson From The Tax Court: Twitty Burgers!

The Tax Court issued no opinions last week, likely because it was holding its Judicial Conference at Northwestern School of Law in Chicago. Our colleagues over at Procedurally Taxing attended and blogged about it here. Les Book reports (here) that the last session of the Conference was looking forward to the future of the Tax Court.

Future, Schmoocher. My love of history keeps my head buried firmly in the sands of the past. For not only is the past prologue, it’s also epilogue. That’s the lesson I take away from this Tax Court classic: Harold Jenkins v. Commissioner, T.C. Memo. 1983-667, a case I teach as an epilogue to the Supreme Court's classic Welch v. Helvering, 290 U.S. 111 (1933).The Jenkins case deserves your attention not only because of its lesson about the difference between business and personal deductions but also because of the poetry (?) it inspired both from Tax Court Judge Leo H. Irwin and from the IRS Office  of Chief Counsel 

All that, and more, below the fold.

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The Effect Of A Government Shutdown On The IRS: Not What You Think

Machines are cheap. Humans are expensive. The IRS depends upon both to administer the fiendishly complex tax code that Congress tirelessly re-scrambles every year. This year is, of course, much, much worse. And everyone seems at least aware that a government shutdown will hurt the IRS’s ability to implement the new law. Here’s a recent WaPo article on the subject.

But the effect of a government shutdown on IRS operations is worse than is being reported.  More below the fold.

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A Year Of Lessons From The Tax Court (2017)

Here is a chronological listing of all the Lessons From The Tax Court I posted in 2017, with links to, the Lesson, the primary case discussed and its author.  I have also listed the primary Code sections mentioned or discussed in the Lesson.  

September 29: The Overlooked Power Of Offset, Williams v. Commissioner, T.C. Memo 2017-182

October 2: When Precedent Is A Game Of Telephone, Fansu Camara and Aminata Jatta v. Commissioner — IRC §6013(b)

October 9: What Is 'Away From Home'?, John S. Barrett and Maria T. Barrett v. Commissioner, T.C. Memo 2017-195 — §262, Rev. Rul. 99-7

October 14: The Downside of Easy Tax Exemption Approval, Creditguard of America, Inc. v. Commissioner, 149 T.C. No. 17 — 6601(a)

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A 'Marvel'ous Dinner

On October 19th the Tax Court was in Lubbock in the person of Chief Judge Paige Marvel.  The Court’s involvement with the ABA Tax Section is well known, but I did want to give a shout-out to its equally important involvement with legal education.  Each year the tax faculty at Tech Law (myself, Alyson Outenreath, Steve Black, Vaughn James, and Terri Morgeson) hold a Tax Careers Panel at the Law School (graciously sponsored in recent by the Texas State Bar Tax Section). We always time it so that we can invite the Tax Court Judge to be on the panel. We are delighted that every judge has participated.

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It's Bigger Than Bitcoins: The Matrix Is Here

ABA Tax Section meetings are fun!  Last week I attended a fascinating panel presentation at the Austin meeting titled "Beyond Bitcoin: Blockchain and the Tax System."  The panel was moderated by Stow Lovejoy, of Kostelanetz & Fink, LLP and included Amanda Wilkie, CIO of Withum Smith & Brown; Tony Tuths, of KMPG in Short Hills; and Lisa Zarlenga, of Steptoe & Johnson.

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A Personal Tribute To Judge Posner And The Life Of The Mind

Back in September 2004, when I was still the general counsel of a corporation, I had begun to dip my toes into legal academia some twenty-five years after graduating from law school.  I eventually told some of that story in How Not to "Retire and Teach" (and its sequel six years later).  I didn't include it in the essays, but I have occasionally told friends this heretofore unpublished story involving Judge Posner.

The great change between 1979 and 2004 was, of course, the rise of interdisciplinarity in legal scholarship. It didn't take me long to figure out that law-and-economics and Judge Posner's contribution were the models par excellence of the shift in emphasis from doctrine to theory.  My first re-introductions to the theoretical perspective came from books like The Problematic of Moral and Legal Theory and The Problems of Jurisprudence.  I didn't necessarily agree with them; my experience was too many other factors intervened to make microeconomics meaningful in the extension from transactions to subjective decision making.  Indeed, from the beginning, I was more interested in what was going on in the head of the utilitarian "rational frog" (Judge Posner's wonderful coinage in Economic Analysis of Law) whose decision-making could be plotted on a curve.  Clearly, I thought moral theory was less problematic.

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Crossroads Cincinnati

I learned this week that Crossroads, our former church in Cincinnati, is now the fastest growing church and the ninth largest church in America. This is a special weekend at Crossroads, as they cast their vision for the future:

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ABA 'Encourages' Law Schools to Offer Debt Counseling to Students

ABA Journal, Counsel Young Lawyers About Debt, ABA Policymakers Urge Law Schools and Bar Groups:

The ABA House of Delegates unanimously adopted a resolution on Monday urging law schools and bar associations to counsel young attorneys on student loan debt.

Resolution 106 urges law schools to provide “comprehensive debt counseling and debt management education” to law students, and urges bar associations to provide the same services to their young and newly admitted lawyers.

Chris Rogers of Texas, speaking in favor of the resolution, pointed to the dismal employment statistics young lawyers have confronted in recent years. The Section of Legal Education and Admissions to the Bar reported in 2013 that 56.2 percent of law graduates held full-time, long-term jobs requiring a law degree, excluding jobs created by law schools. The advocacy group Law School Transparency put that number at 55.1 percent.

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Farewell, San Diego!

After seven wonderful weeks in San Diego, I am back in Malibu. This was my eleventh summer teaching at the University of San Diego School of Law, and I am grateful to Dean Stephen Ferruolo and the kind folks at USD for having me back again. My 65 Tax I students were a joy, as they worked diligently in teams to answer 300 clicker questions over the 21 class sessions. It is a treat to spend seven weeks each year in "America's Finest City" and see our many friends there. It is a time of transition for the USD tax faculty, as Karen Burke, Mark Hoose, and Grayson McCouch have departed and Howard Abrams, Miranda Perry Fleischer, and Vic Fleischer have joined Jordan Barry and Bert Lazerow on the tax faculty.

Christmas Gifts for that Special Tax Person

Continuing a TaxProf Blog holiday tradition, I will offer some gift ideas for that special tax person in your life. Today's suggestion is from Derek Muller (Pepperdine):  figurines and trading cards for all U.S. Supreme Court Justices:

Patric Verrone. (For background, see this 2009 Wired interview here.) Mr. Verrone has developed a number of Marx-like historical figures, including a remarkable feat: every justice in the history of the Supreme Court of the United States. ... Each figure is just under 3 inches in height and includes a gold-colored base with name. ...Mr. Verrone includes baseball cards with a brief biographical sketch of each justice. (For instance, I didn't know that Justice Story argued Fletcher v. Peck in the United States Supreme Court.)

Unfortunately, Mr. Verrone does not offer figurines and trading cards for Tax Court Judges.

Our Purpose Driven Sunday

My wife, daughter, and I (and our house guest) drove 80 miles yesterday to hear Rick Warren preach at Saddleback Church.  The trip was at the top of my Southern California to-do list, as I had read Warren's wonderful book, The Purpose Driven Life (the best-selling book in American history, apart from the Bible) at the inauguration of my time in a men's group in Cincinnati.

We heard an incredibly moving message on Surrender: The Path to Peace, part of a series on The Six Phases of Grief, as Warren and his wife Kay spoke about how they have dealt with the suicide of their 27 year old son Matthew four months ago, ending a life-long struggle with mental illness. It was an especially timely message for us, as the Pepperdine community is still reeling from this month's tragedy involving the Adamson family.

Josie

Yet another example of how special our rescue dog Josie is:  One of my quiet joys is how Josie will sleep at my feet in our family room as I blog late into the night.  Last night, I noticed that Josie was not in her usual spot.  I investigated and found her asleep in the adjoining living room, which is next to the guest room and the front door.  Yesterday afternoon, a friend of a friend from church moved into our guest room for a few weeks as she recovers from surgery and looks for a new apartment.  One of the attributes of Josie's breed (Black Mouth Cur) is that she is "fiercely loyal to, and protective of, her pack."  So Josie expanded her zone of protection, choosing to sleep between me and our new pack member, ready to protect us from intruders. (Of course, any intruders would have faced only an exuberant volley of excited licking, but you get the idea.)

In my previous post written on Christmas Day 2009 when we adopted Josie for our then-high school senior daughter, I wrote that "our empty nest years will be more complicated, and fuller, now." I can state unequivocally that Josie indeed has made the past three years since our daughter left for college "more complicated, and fuller" (although I fear for the long-range health implications).

Farewell, San Diego!

After seven glorious weeks in San Diego, my wife and I are hitting the road today back to Malibu. This was my tenth summer teaching at the University of San Diego School of Law, and I am grateful to Dean Stephen Ferruolo and the kind folks at USD for having me back again. My 74 Tax I students were a joy, as they worked diligently in teams to answer 300 clicker questions over the 21 class sessions. My wife and I cherish our chance to spend seven weeks each year in "America's Finest City" and see our many friends there. It is a time of transition for the USD tax faculty, as Karen Burke, Mark Hoose, and Grayson McCouch depart and Howard Abrams, Miranda Perry Fleischer, and Vic Fleischer join Jordan Barry and Bert Lazerow on the tax faculty.  It speaks volumes about USD's bright future that they are able to attract and retain such a talented crop of students and faculty, especially in this difficult environment for law schools.

An Epic Day

Today is a momentous day for the Caron family:

My son Reed begins his job today at Epic Systems, a health care software company outside Madison, Wisconsin.  My wife and I could not be any prouder of Reed or more excited about this wonderful opportunity. His 60 credit hours of math at Grinnell College have prepared him well. We loved helping him get settled in Madison and learning about Epic (NY Times; Forbes) and seeing its amazing campus (links here, here, and here).  If you are a regular reader of TaxProf Blog, you have indulged me in the past as I have recounted various milestones in my son's life, including:

• Happy 16th Birthday, Reed (June 25, 2006)
• Opening Day and the Passage of Time (Apr. 2, 2007)
• A Father's Strange Bliss (Apr. 16, 2007)
• The Tax Prof Circle of Life (May 13, 2007)
• Belated Thanksgiving (Dec. 1, 2008)
• Graduation Day (June 5, 2009)
• A Bittersweet Day (Aug. 17, 2009)
• Tax Stories in Paradise (Mar. 22, 2010)
• Sending Your Child Into a Hurricane (July 4, 2010)
• Farewell, San Diego! (July 28, 2010)
• GOOOAAALLL!!! (Oct 31, 2010)
• What Does $49,144 Tuition Buy? A Mohawk. (Oct. 3, 2011)
• Farewell, 3810 Miami Road (Aug. 10, 2012)
• GOOOAAALLL!!! (Sept. 4, 2012)
• The Last Game (Nov. 3, 2012)
• Our Christmas Gift (Dec. 23, 2012)
• Graduation Day (May 21, 2013)

Today also marks my first day on the tenured faculty at Pepperdine University School of Law. As I wrote when I announced my move in April:

After 23 years at the University of Cincinnati College of Law and the past four Spring semesters at Pepperdine University School of Law, I have accepted an offer to join Pepperdine's tenured faculty beginning in the Fall 2013 semester.

My wife and I loved our time in Cincinnati, as we launched our careers, raised our children, and found our faith there. We will be forever grateful that the University of Cincinnati College of Law and the United States District Court for the Southern District of Ohio took a chance on us 23 years ago.

I am honored to join the line of lateral faculty that Pepperdine has hired in recent years, including Doug Kmiec (Dean, Catholic), Ed Larson (Georgia), Grant Nelson (UCLA), Bob Pushaw (Missouri), and Tom Stipanowich (Kentucky). Indeed, Brian Leiter (Chicago) recently noted Pepperdine's "steep upward trajectory of both lateral and junior hiring over the last decade," which is reflected in Pepperdine's dramatic rise in the U.S. News rankings, caused in large part by the third-largest increase in academic reputation among 172 law schools over the past 16 years (A Longitudinal Analysis of the U.S. News Law School Academic Reputation Scores between 1998 and 2013, 40 Fla. St. L. Rev. ___ (2013)).  

Although it is a Christian university, Pepperdine welcomes faculty of all faiths. Pepperdine's other lateral tenured hire this year is Ahmed Taha (Wake Forest), who will be the law school's first Muslim professor.

Graduation Day

Reed Caron, B.S. Mathematics, Grinnell College:

For more on my journey with my son, see:

• Off to the Ranch (July 1, 2005)
• Goodbye Sandy (June 6, 2006)
• Happy 16th Birthday, Reed (June 25, 2006)
• Opening Day and the Passage of Time (Apr. 2, 2007)
• A Father's Strange Bliss (Apr. 16, 2007)
• The Tax Prof Circle of Life (May 13, 2007)
• Schadenfreude at the Hampton Inn (Oct. 5, 2008)
• Belated Thanksgiving (Dec. 1, 2008)
• Graduation Day (June 5, 2009)
• Breakthrough Cincinnati (Aug. 1, 2009)
• A Bittersweet Day (Aug. 17, 2009)
• The Reach of the Blogosphere (Sept. 2, 2009)
• The Good and the Bad in Sports (Nov. 7, 2009)
• Off to the Big Dance (Nov. 9, 2009)
• Tax Stories in Paradise (Mar. 22, 2010)
• Farewell, Malibu (Mar. 30, 2010)
• Sending Your Child Into a Hurricane (July 4, 2010)
• Farewell, San Diego! (July 28, 2010)
• GOOOAAALLL!!! (Oct 31, 2010)
• What Does $49,144 Tuition Buy? A Mohawk. (Oct. 3, 2011)
• Farewell, 3810 Miami Road (Aug. 10, 2012)
• GOOOAAALLL!!! (Sept. 4, 2012)
• The Last Game (Nov. 3, 2012)
• Our Christmas Gift (Dec. 23, 2012)

Mother (and Father) and Child Reunion

My wife and I are spending the weekend with our daughter at her college. It has been absolutely wonderful to spend time with her and her friends and to get a too-brief snapshot into her life here (more than compensating for the 3,000 non-Wi-Fi miles it took to get here -- shame on you, United) :

My wife and I bawled like babies last night at the college's showing of Any Day Now:

 

Tax Prof Seder

My wife and I went to our first Passover Seder last night, graciously hosted by tax prof Ellen Apill (Loyola-L.A.) and tax lawyer Sandy Holo (Musick Peeler & Garrett, Los Angeles):

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TaxProf Blog Named Best Law Professor Blog of 2012

I am delighted that TaxProf Blog has been named the Best Law Professor Blog by Dennis Kennedy in his ninth annual Best of Law-related Blogging Awards (the “Blawggies”):

Best Law Professor Blog – Paul Caron’s The TaxProf Blog

The Blawggies have always had a spot for the best law professor blog. In part, it’s my little effort to bridge the great divide between practicing lawyers and law professors.

I have a repeat winner here and it’s a great blog to read as we approach the fiscal cliff. As I said last year, the test of a great blog is how it keeps me returning to it time after time because of its great posts when it’s outside my subject matter. The topic here is U.S. tax, but Paul ventures into the real word with regular, thoughtful posts. It’s a blog with an academic focus and a a real world impact. My greatest compliment: reading this blog makes me want to take a class from Paul. I hope he’s thinking about doing some online courses.

I am also pleased that our sister Legal Skills Prof Blog was the runner up:

Yes, I know, I’m involved in this one, but I don’t post very often, so I can pretend to be objective. This blog has great coverage of the current debate about what needs to be done with the current approach to legal education and what law schools are doing in the area of skills education.

Santa Claus Arrested by the IRS

Santa Claus Arrested Following Joint Investigation by IRS, INS, and FWS:

U.S. Federal agents arrested Santa Claus earlier today at the North Pole. ... [The Acting IRS Commissioner] has released the following statement:

At long last, the notorious tax cheat, Santa Claus, has been apprehended.  He has been living in a foreign country for the last 50 years and during that time he has not filed his US taxes even once.  It has become clear, however, that he has run a lucrative business at the North Pole and has never reported any of the income.  In addition to criminal tax evasion, we intend to charge Santa Claus with 190 counts of criminal failure to file Foreign Bank Account Reports (FBAR), as we found evidence in his papers that he is operating or has signing authority on bank accounts in 190 different countries.  It is our contention that the fines alone could help us bring billions in revenue into the United States government.

According to United States law, all United States Citizens are required to pay taxes to the IRS and to report any foreign bank accounts.  Failure to obey these filing requirements may result in civil and criminal penalties including imprisonment.

The Obama administration declared that they were very pleased with the news..  ”It is about time,” Obama said from his Hawaiian retreat, “that the United States returned those who have fled the country just because they don’t feel like paying their fair share anymore.”

(Hat Tip: Andy Morriss.)

The Last Game

Reed, congratulations on your final college soccer game yesterday. It has been a joy to drive the 30,000 miles over the past four years to watch your games. I have never seen anyone whose play more perfectly captures who he is as a person -- you play (and live) with joy, passion, perseverance, humility, and selflessness. Your special gift is that you make those around you better, on the athletic field and off.

Yesterday also marked the end of seventeen years (and thousands of hours) of watching you play baseball, basketball, soccer and tennis. My heart aches that I will no longer be able to sit in the stands and cheer on my son, but I am comforted by Ecclesiastes 3:1:

There is a time for everything, and a season for every activity under heaven.

So now that we're moving on to the next season, I can let you in on a secret: it was never about the games. Rather, sports provided me with the excuse to simply spend time with you. In many ways, sports have been the soundtrack of our lives, playing in the background while we spent precious time together as you grew into the remarkable young man you are today.

Your mother and I will never forget our tearful embrace after yesterday's game and the tender words we exchanged. It was a wonderful capstone to a senior year we will always cherish. Although the games have been great, better still have been the many breakfasts and dinners (and shivering nights at the Dairy Barn) with you and your friends.

Remember always that your mother and I love you beyond all measure. And that God loves you infinitely more. Being your parents has been the great honor and privilege of our lives.

Tax Prof Cuts a Rug

I am awaiting a call from Dancing with the Stars (if Tom DeLay can do it, why not me?):

GOOOAAALLL!!!

More here.

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Tech News You Use: Extend the Range of Your Wi-Fi Network

PC World: How to Extend Your Wi-Fi Network: Tips and Tricks to Boost Your Wireless Network Range at Home or in the Office:

If you’re not getting the range you want from your home or office wireless network, there are many ways you can go about expanding your coverage. In this guide we’ll discuss some of the most popular methods, many of which involve upgrading and purchasing new gear (always a fun topic). Before you spend a cent, make sure to check out our tips on how to fix your Wi-Fi network to see how you may be able to get better Wi-Fi coverage from changing your router’s channel or placement. If those tips don't do the trick, keep reading for a few more specific ways to extend the range of your wireless network.

Farewell, 3810 Miami Road

Yesterday was a bittersweet day for my wife and me:  with our two kids off to college, we sold our family home of 22 years. We left Boston in 1990 to move to Cincinnati to start a family, and we were blessed to buy a wonderful home in Mariemont, Ohio. We celebrated many wonderful events there -- baby's first day home from the hospital, toddler's first steps, first day of school, birthdays, sleepovers, proms, graduations, Easter, Thanksgiving, Christmas. But what I remember most is the simple joy of turning into the driveway after a long day, into the warm embrace of home and family. Our laughter often bounced off the walls. Other times, the floors absorbed our tears. But all somehow ennobled our home, enriching our lives. My wife and I held hands and prayed as we left 3810 Miami Road for the last time, thanking God for the incredible blessing of our time there. We tried to be good stewards, taking the opportunity with every repair, improvement, and addition through the years to strengthen the home for her future journey. I remember a scene from Thirtysomething, in which Hope sat at a window seat, seeing the ghosts of the prior families that had lived in their home. As we turn our home over to the fifth owners in her 62-year life. we pray that they will love her as we have, and will appreciate her many blessings.

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The 10 Best Websites for Law Students

I am thrilled that our Law Professor Blogs Network has been named one of The 10 Best Websites for Law Students by The National Jurist:

For law students who know what legal field they are interesyted in Law Professor Blogs is a great resource. Broken down by specialty, the blogs on the site are created by law professors, for law professors. The blogs contain links to recent news in their fields, as well as abstracts of newly published papers.

The other sites in the Top 10 are:

• ABA Journal
• Above the Law
• The Careerist
• Jurisprudence on Slate.com
• Legal Blog Watch
• Lowering the Bar
• SCOTUSblog
• The Prime Time Crime Review
• Wall Street Journal Law Blog

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• All Posts will send you all blog posts
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Subscribing to TaxProf Blog

We offer two ways to have TaxProf Blog content automatically delivered to your computer or smart phone, as explained in the left column of the blog, "Subscribe to TaxProf Blog Via RSS Feed or Email":

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• Legal Education will send you only law school-related blog posts

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• TaxProf Blog Email Service:  Email me to be added to my twice daily (during the week) and once daily (on the weekend) emails to the TaxProf Discussion Group with titles and links to recent TaxProf Blog posts.

Santa Claus Arrested by the IRS

Santa Claus Arrested Following Joint Investigation by IRS, INS, and FWS:

U.S. Federal agents arrested Santa Claus earlier today at the North Pole. ... Douglas Shulman, Commissioner of the IRS, has released the following statement:

At long last, the notorious tax cheat, Santa Claus, has been apprehended.  He has been living in a foreign country for the last 50 years and during that time he has not filed his US taxes even once.  It has become clear, however, that he has run a lucrative business at the North Pole and has never reported any of the income.  In addition to criminal tax evasion, we intend to charge Santa Claus with 190 counts of criminal failure to file Foreign Bank Account Reports (FBAR), as we found evidence in his papers that he is operating or has signing authority on bank accounts in 190 different countries.  It is our contention that the fines alone could help us bring billions in revenue into the United States government.

According to United States law, all United States Citizens are required to pay taxes to the IRS and to report any foreign bank accounts.  Failure to obey these filing requirements may result in civil and criminal penalties including imprisonment.

The Obama administration declared that they were very pleased with the news..  ”It is about time,” Obama said from his Hawaiian retreat, “that the United States returned those who have fled the country just because they don’t feel like paying their fair share anymore.”

(Hat Tip: Andy Morriss.)

'Twas the Night Before Christmas (Legal Version)

Check out the original and legal versions of the classic poem, 'Twas the Night Before Christmas [click on chart to enlarge]:

Continue reading

Christmas Gifts for that Special Tax Person

Tax Lawyer, Dude ($2.99 digital book):

Taxes for individuals are more complicated than ever. American lifestyles include changing jobs, being more mobile and selling homes more often. Companies are more complex with mergers, multinational systems, and takeovers. And to fill the need, came individuals with an assortment of training and backgrounds to help individuals and corporations with taxes.

Tax preparers who can range from having no training to extensive training, accountants and CPAs, and tax attorneys all help individuals and corporations with taxes, both national and state. Those who help with taxes range from the individual sitting at a folding table in Wal-Mart or Sears to tax attorneys who can earn up to more than a million dollars per year practicing tax law. The tax attorneys are at the top of the professionals doing tax work.

You get the impression from skits on TV that those who deal with taxes whether from the IRS side or representing individuals and business are heavy handed brutes, but in fact this occupation requires a keen and subtle mind. While tax attorneys make up only a small percentage of practicing attorneys, this specialized field is highly respected. It takes an astute person to understand the complicated and ever changing tax codes. It is a personally and professionally challenging field.

Tax attorneys whether they do actual litigation or in-court representation, work for large corporations as in house counsel, represent clients in a private practice, or work for the government all do basically the same things:

• Clarify tax laws for the interests of the client.
• Represent the government or the client in dealing with tax issues.
• Make recommendations and develop strategies optimizing tax savings.

This report will introduce you to this personally and financially rewarding field. You will be able to see if this intellectually challenging vocation is the place for you.

Now would be a good time to find out if you have the aptitude, intellect, and personality traits to become a tax attorney. Many are lured by the movie and TV images of lawyers and go into the field only to find they are not suited to the career. Before you invest a minimum of seven years in college getting a bachelor's degree and a law degree, you should participate in some exploring and self-discovery.

Christmas Gifts for that Special Tax Person

For Counsel (Products and Gifts for Lawyers) sells an exact reproduction of the original 1913 Form 1040 (for $245):

Four pages long, including one page of instructions. Impressively framed in classic mahogany with beaded edge and segmented mat of ivory. Brass plate mounted on the mat states: "1913 Inaugural Form 1040." Framed dimensions are 30" by 24". Comes with Plexiglas and all accessories for hanging.

Unframed copies of the 1913 Form 1040 can be downloaded for free at the IRS and the Tax History Project.  There are also copies available on eBay (here and here).

Christmas Gifts for that Special Tax Person

Death and Taxes: 2012 Poster -- $19.99 (24" x 36"):

Christmas Gifts for that Special Tax Person

Form 1040 Toilet Paper ($4.49 per roll):

Does it pain you to fill out a tax form each year? Does knowing that the IRS takes a large chunk of your salary give you the runs? This product isn't deductible, but it'll sure make you feel better. A collage of the 1040 IRS Form is printed throughout the whole roll!

Christmas Gifts for that Special Tax Person

IRS Chocolate Bars ($1.45 each; $72.50 for case of 50):

Christmas Gifts for that Special Tax Person

Tax neckties:

1. What Did You Bring Me?
2. zazzle
3. ties.com

  
 
 

Christmas Gifts for that Special Tax Person

For sale on eBay:  items related to IRS action figure Irwin R. Schyster (modeled after WWF wrestler Mike Rotunda):

• Action figure (here, here, here, here)
• Autographed photograph (here)
• Trading card (here, here, here)

His signature lines:

• "I'm gonna write you off!"
• "You can pay me now, or you will pay me later!"
• "It's time to cut the crying, and start paying!"
• "Even the dead have to pay taxes!"

Christmas Gifts for that Special Tax Person

On eBay:

This an original set of six photogravure prints from 1930 showing various views of the Internal Revenue Service Building in Washington, D.C. This set consist of 6 individual prints. Condition is EXCELLENT

The Photogravure printing process produces a superior image that registers a wide variety of tones and shades. These photogravures were created from an engraved plate and show detail, contrast, and depth similar to a fine photograph. Perfect for framing collecting and displaying.

The over all size of the paper is approximately 12.25 inches by 9.25 inches. The approximate size of the images are 9.5 inches by 7.25 inches. There are SIX separate pages. These were printed in 1930. They are NOT a modern reproduction.