Paul L. Caron
Dean





Monday, May 20, 2024

The Kinder, Gentler IRS? Where?

Harvey Gilmore (Hartford), The Kinder, Gentler IRS? Where?, 21 DePaul Bus. & Com. L.J. 31 (2022): 

IRS Logo 2I was a practicing accountant for the better part of ten years. I prepared income tax returns, sales tax returns, property tax returns, payroll tax returns, and New York City Commercial Rent tax returns. Over the years, I’ve also prepared my own tax returns as well as those of friends, relatives, and other paying clients. Academically, I am in my twenty-fifth year as an undergraduate tax law professor. I have a Master of Science Degree in Taxation and a Master of Law in Taxation. What’s the point of all that? Not much, really, except to say that I know a little something about taxes. The most important thing is this: generally, tax authorities and in particular, the Internal Revenue Service (“IRS”) is NOT the friend of the taxpayer.

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May 20, 2024 in Scholarship, Tax, Tax Daily, Tax Scholarship | Permalink

A Future for Carbon Taxation?

Myanna Dellinger (EinStrong Foundation),  A Future for Carbon Taxation?, 46 Fordham Int'l L.J. 659 (2023): 

Fordham international law journalCarbon taxation has been the topic of academic and political discussions for quite some time. With the exception of some Northern European countries, far too few states or nations have adopted taxation in amounts likely to impact climate change mitigation positively. However, simply writing off a potential governmentally imposed price on carbon as not feasible is not warranted. First, in a world where we need urgent action from all angles, a carbon tax could prove to be one of several inroads on climate change. There is no one “silver bullet” in this area. Second, since the mere phrasing of the issue as one of “taxation” nearly always elicits negativity in the United States, something as simple as reframing the issue in ways palatable to a broader political spectrum could garner more support. Third, as a younger and more environmentally conscious generation comes into voting age and power, opinions about carbon pricing are shifting. 

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May 20, 2024 in Scholarship, Tax, Tax Daily, Tax Scholarship | Permalink

#12 Ranked Alabama Graduate Tax Program Will Not Offer Courses After Spring 2025

University of Alabama Law School Graduate Degree Programs, Tentative LL.M./JM Course Teach-Out Schedule:

Alabama Law (2024)By decision of the Law School Faculty, the LL.M. concentration in Business Transactions and the Juris Masters have been discontinued and the LL.M. in Tax has been placed on inactive status.

Courses will no longer be offered after the Spring 2025 term.

Summer 2024 – Spring 2025:

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May 20, 2024 in Legal Ed News, Legal Education, Tax, Tax News | Permalink

Tax Prof Blog Weekend Roundup

Sunday, May 19, 2024

Hasen: Taxation Of Work In Christian Theology

David Hasen (Florida; Google Scholar), Taxation of Work in Christian Theology:

How should Christian theological principles inform rules for the taxation of work? The answer to this question is ambiguous because work plays an ambiguous role in the life of the believer. Scripture accords dignity to work, but work, like almost any activity, can become an idol; depending on its content, work also can be harmful to the worker or to others. Similarly, work, or certain kinds of work, may be systematically underpaid or overpaid. For these reasons, recommendations about the optimal taxation of work in any given case depend on the larger tax system and indeed on the larger economic, social and political conditions in which the tax system operates.

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May 19, 2024 in Faith, Scholarship, Tax, Tax Daily, Tax Scholarship | Permalink

The Top Five New Tax Papers

This week's list of the Top 5 Recent Tax Paper Downloads is the same as last week's list.

  1. SSRN Logo (2018) [879 Downloads]  Don't Blame the Victims: Individuals and the MRT, by Karen Alpert (FixTheTax Treaty.org), John Richardson (TaxResidentAbroad.com) & Laura Snyder (Association of Americans Resident Overseas)
  2. [569 Downloads]  No More Tax-Free Lunch for Billionaires: Closing the Borrowing Loophole, by Edward Fox (Michigan; Google Scholar) & Zachary Liscow (Yale; Google Scholar)
  3. [507 Downloads]  Taxing People, Not Residents, by Yariv Brauner (Florida, Google Scholar) (reviewed by Mirit Eyal-Cohen (Alabama; Google Scholar) here)
  4. [410 Downloads]  Combining VPFs and Tax-Aware Strategies to Diversify Low-Basis Stock, by Joseph Liberman & Nathan Sosner (AQR Capital Management)
  5. [324 Downloads]  Money Moves: Taxing the Wealthy at the State Level, by Brian Galle (Georgetown; Google Scholar), David Gamage (Missouri-Columbia; Google Scholar) & Darien Shanske (UC-Davis; Google Scholar)

May 19, 2024 in Scholarship, Tax, Tax Daily, Tax Scholarship, Top 5 Downloads | Permalink

Saturday, May 18, 2024

This Week's Ten Most Popular TaxProf Blog Posts

Top 10 Taxprof Blog Posts - LinkedinLegal Education: 

  1. National Law Journal, Sullivan & Cromwell To Ramp-Up Vetting Of New Hires Amid Wave Of Pro-Palestinian Protests 
  2. Michael Simkovic (USC), Columbia Law Professor Says Columbia University Violated Federal Laws, Fostered A ‘Hostile Environment’ On Campus 
  3. ABA Journal, Mississippi College School Of Law Professor Killed In Triple Homicide 
  4. ABA, Biggest Law School Scholarships Disproportionately Go To White Students 
  5. Sarah Lawsky (Northwestern), Law School Entry-Level Faculty Hiring Is Down 26%; FAR Applicants Are Up 28% 
  6. New York Post, Students Sue CUNY Law School Over Ban On Commencement Speakers, Claiming Move Is Anti-Palestinian 
  7. Eli Wald (Denver), A Liberal Theory Of Legal Education 
  8. Dan Rodriguez (Northwestern), Cash-Strapped California Bar May Drop NCBE And Hire Kaplan To Create New Test 
  9. Bloomberg Law, Big Law Recruiting Rush Puts More Pressure On Diverse Students
  10. Bloomberg Op-Ed (William Treanor (Dean, Georgetown) & Amy Mattock (Georgetown), Early Big Law Recruiting Is Ruining The First Year Of Law School 

Tax: 

  1. Miranda Perry Fleischer (San Diego), Taxing Old Money: Considerations In Crafting A Rignano Tax
  2. New York Times, Was The 401(k) A Mistake?
  3. White House, President Biden Nominates Three Tax Court Judges
  4. New York Times & ProPublica, Trump May Owe $100 Million From Double-Dip Tax Breaks
  5. Andy Grewal (Iowa), The Mandatory Repatriation Tax Is Not A Tax
  6. Xavier Oberson (University of Geneva), Taxing Artificial Intelligence
  7. Timothy Todd (Liberty) & Philip Manns (Liberty), Estate Tax Consequences Of Redeeming Stock With Life Insurance Proceeds
  8. Kristin Hickman (Minnesota) & Bridget C.E. Dooling (Ohio State), Competing Narratives In OIRA Review Of Tax Regulations
  9. SSRN, The Top Five New Tax Papers
  10. University of North Carolina, Tax Profs Receive Awards For Teaching And Scholarship

Faith:

  1. Wall Street Journal Op-Ed (Ralph Reed), The Smear Campaign Against ‘Christian Nationalists’
  2. New York Times Op-Ed (Ross Douthat), Can Conservative And Liberal Catholics Coexist?
  3. Robert George (Princeton) & John Inazu (Washington University), On Antisemitism And The Campus Protests
  4. Pepperdine Caruso Law Surf Report, Religious Diversity At Pepperdine Caruso Law
  5. Paul Caron (Dean, Pepperdine), Pepperdine Caruso Law 3L Commissioning Service

May 18, 2024 in About This Blog, Legal Education, Tax, Tax Daily, Weekly Top 10 TaxProf Blog Posts | Permalink

Hatfield: Safeguarding Taxpayer Data

Michael Hatfield (University of Washington; Google Scholar), Safeguarding Taxpayer Data, 26 Fla. Tax Rev. ___ (2023):

Florida tax reviewThe Internal Revenue Service (IRS) collects more information on more individuals than any other government agency. The information is not only financial but personal, potentially including information about health care needs and decisions; the caregivers, disabilities, and foreign birth of children; the educational progress and felony convictions of students; and one’s religious and charitable associations. In acknowledging the vast quantity of information held by the IRS, and the necessity of taxpayers trusting tax administrators with their information, Congress provided greater protection for taxpayer information under the Internal Revenue Code (IRC) than it was provided under the Privacy Act. Congress obligated IRS employees to keep taxpayer information confidential, and authorized felony charges and damages suits, including punitive damages for inappropriate disclosures of taxpayer information. 

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May 18, 2024 in Scholarship, Tax, Tax Daily, Tax Scholarship | Permalink

Friday, May 17, 2024

Weekly SSRN Tax Article Review And Roundup: Roberts Reviews The Missing “T” in ESG By Chaim & Parchomovsky

This week, Tracey M. Roberts (Cumberland; Google Scholar) reviews a new work by Danielle A. Chaim (Bar-Ilan; Google Scholar) and Gideon Parchomovsky (Penn; Google Scholar), The Missing “T” in ESG, 77 Vanderbilt L. Rev. 789 (2024).

Roberts (2020)

In The Missing T in ESG, Danielle Chaim and Gideon Parchomovsky take a magnifying glass to ESG investing and the large asset management firms that have been promoting it in recent years. Environmental Social and Governance or “ESG” standards describe a broad array of criteria. Environmental factors examine environmental impacts (such as waste management and greenhouse gas production). Social factors focus on human rights violations and violations of labor laws (such as human trafficking and child labor in the supply chains), among other things. Governance factors consider longer-term value, positive and negative spillover effects, and whether a corporation has implemented structures and personnel with diverse perspectives to avoid the kinds of group-think that led to the mortgage crisis and Great Recession. Ultimately, ESG ratings allow investors, with an aversion to longer-term risks and with preferences beyond short term profit, to pick and choose where they invest their money.

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May 17, 2024 in Scholarship, Tax, Tax Daily, Tax Scholarship, Weekly SSRN Roundup, Weekly Tax Roundup | Permalink

Tax Policy In The Biden Administration

Volokh: Nonprofits That Help Organize Protests That Break The Law Can Lose Their Tax Exemptions

Eugene Volokh (UCLA; Google Scholar), Can Nonprofits That Help Organize Protests Lose Their Tax Exemptions?:

Senate Republicans have called on the IRS to investigate various nonprofits that have helped organize university protests, and see if they should be stripped of their tax exemptions. Would that be permissible?

[1.] The government can't strip groups of nonprofit status based on their ideological viewpoints. This was first made clear in Justice Brennan's opinion in Speiser v. Randall (1958), which struck down a denial of a property tax exemption to people and organizations that "advocate[] the overthrow of the Government of the United States … by … violence … or who advocate[] the support of a foreign government against the United States in the event of hostilities" ...

[2.] But nonprofits' right to express viewpoints doesn't extend to a right to violate valid laws (such as content-neutral time, place, and manner restrictions). IRS Revenue Ruling 75-384 deals specifically with that. ...

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May 17, 2024 in Legal Ed News, Legal Education, Tax, Tax Daily, Tax News | Permalink

Next Week’s Tax Workshop

Next Week's Tax Workshops - twitterFriday, May 24: Guido Alfani (Bocconi University; Google Scholar) will present Economic Inequality in Preindustrial Times: Europe and Beyond, 59 J. Econ. Lit. 3 (2021), as part of the Oxford-Virginia Legal Dialogs. If you would like to attend, please RSVP

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May 17, 2024 in Colloquia, Legal Education, Scholarship, Tax, Tax Daily, Tax Scholarship, Tax Workshops | Permalink

Thursday, May 16, 2024

Parsons: Cryptocurrency, Legibility, And Taxation

Amanda Parsons (Colorado; Google Scholar), Cryptocurrency, Legibility, and Taxation, 72 Duke L.J. Online 1 (2022):

Duke Law Journal (2022)In Jarrett v. United States, a taxpayer in Tennessee is arguing that staking cryptocurrency did not result in him earning “income” under federal income tax law. This case illustrates the fundamental challenge that cryptocurrency and blockchain technology present for tax law. Wealth creation in the crypto space is not readily legible to the state. This absence of legibility threatens tax law’s reliance on placing economic activities into categories to determine how they should be taxed. Furthermore, this case highlights the harms Congress and Treasury are risking by not taking action on cryptocurrency taxation. The uncertainty and lack of guidance on the appropriate taxation of cryptocurrency is opening the door for a critical juncture in tax law to be decided via strategic litigation. This threatens a jurisprudential evasion of the democratic and administrative process in a high-stakes moment for tax law.

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May 16, 2024 in Scholarship, Tax, Tax Daily, Tax Scholarship | Permalink

Hayashi & Deeks: Tax Sanctions And The Russia-Ukraine Conflict

Andrew T. Hayashi (Virginia; Google Scholar) & Ashley Deeks (Virginia; Google Scholar), Tax Sanctions and the Russia-Ukraine Conflict, 48 N.C. J. Int'l L. 433 (2023):

North carolina journal of international lawThe Russian invasion of Ukraine in 2022 provoked the imposition of economic sanctions that are unprecedented in their swiftness, severity, and novelty. In this essay, we evaluate the possible role of tax law as another sanctions tool for addressing the Russia-Ukraine conflict and discuss a recent legislative proposal to impose tax sanctions.

Conclusion
When we wrote about the need for tax sanctions in January 2022, our primary concern was the need to find alternative points of leverage over foreign targets that would broaden the reach of U.S. sanctions and reduce the pressure being exerted through traditional financial sanctions, which risked divestment from the U.S. financial system and currency over the long term. More generally, we saw the possibility of making more favorable tradeoffs between foreign policy goals and domestic concerns through tax sanctions and through sanctions rules that allowed for finer calibration. 

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May 16, 2024 in Scholarship, Tax, Tax Daily, Tax Scholarship, Tax Workshops | Permalink

Estate Tax Consequences Of Redeeming Stock With Life Insurance Proceeds

Timothy M. Todd (Liberty; Google Scholar) & Philip Manns (Liberty), Seeing Through the Sleight of Hand: Estate Tax Consequences of Redeeming Stock With Life Insurance Proceeds, 183 Tax Notes Fed. 437 (Apr. 15, 2024): 

Tax-notes-federalThe Supreme Court granted certiorari in Connelly v. United States to resolve a circuit court split concerning the federal estate tax valuation of shares in a closely held corporation when that corporation uses life insurance proceeds to satisfy its obligation to redeem the decedent-shareholder’s shares.

We argue that treating the insurance proceeds as suddenly appearing and then quickly disappearing is akin to the magician’s “now you see it, now you don’t” sleight of hand. 

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May 16, 2024 in Scholarship, Tax, Tax Analysts, Tax Daily, Tax Scholarship | Permalink

Wednesday, May 15, 2024

Grewal: The Mandatory Repatriation Tax Is Not A Tax

Andy Grewal (Iowa; Google Scholar), The Mandatory Repatriation Tax Is Not a Tax:

In Moore v. United States, the Supreme Court has agreed to address whether the Sixteenth Amendment allows Congress to tax unrealized sums. The case arises over Section 965(a). Under that section, taxpayers with substantial equity interests in a foreign corporation must immediately include in income their shares of the corporation’s accumulated earnings. The parties and commentators frequently say that Section 965(a) establishes a “Mandatory Repatriation Tax.”

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May 15, 2024 in Scholarship, Tax, Tax Daily, Tax Scholarship | Permalink

NY Times: Was The 401(k) A Mistake?

New York Times Magazine, Was the 401(k) a Mistake?:

Work Retire RepeatHow an obscure, 45-year-old tax change transformed retirement and left so many Americans out in the cold.

With pensions, otherwise known as defined-benefit plans, your employer invests on your behalf, and you are promised a fixed monthly income upon retirement. With 401(k)s, which are named after a section of the tax code, you choose from investment options that your company gives you, and there is no guarantee of what you will get back, only limits on what you can put in. This is why they are known as defined-contribution plans. Pensions still exist but mainly for unionized jobs. In the private sector, they have largely been replaced by 401(k)s, which came along in the early 1980s. Generally, contributions to 401(k)s are pretax dollars — you pay income tax when you withdraw the money — and these savings vehicles have been a bonanza for a lot of Americans.

Not all companies offer 401(k)s, however, and millions of private-sector employees lack access to workplace retirement plans. Availability is just one problem; contributing is another. Many people who have 401(k)s put little if any money into their accounts. With Americans now aging out of the work force in record numbers — according to the Alliance for Lifetime Income, a nonprofit founded by a group of financial-services companies, 4.1 million people will turn 65 this year, part of what the AARP and others have called the “silver tsunami” — the holes in the retirement system are becoming starkly apparent. U.S. Census Bureau data indicates that in 2017 49 percent of Americans ages 55 to 66 had “no personal retirement savings.” 

The savings shortfall is no surprise to Teresa Ghilarducci, an economist at the New School in New York. She has long predicted that the shift to 401(k)s would leave vast numbers of Americans without enough money to retire on, reducing many of them to poverty or forcing them to continue working into their late 60s and beyond. That so many people still do not have 401(k)s or find themselves, like Jen Forbus, in such tenuous circumstances when they do, is proof that what she refers to as this “40-year experiment with do-it-yourself pensions” has been “an utter failure.”

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May 15, 2024 in Tax, Tax Daily, Tax News | Permalink

Law School Entry-Level Faculty Hiring Is Down 26%; FAR Applicants Are Up 28%

Sarah Lawsky (Northwestern; Google Scholar), Lawsky Entry Level Hiring Report 2023:

Lawsky 3

There are four entry-level tax hires:

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May 15, 2024 in Legal Ed News, Legal Education, Tax, Tax Daily, Tax News, Tax Prof Moves | Permalink

Step-Up In Basis: Policy Perspectives On A Longstanding Policy Loophole

Bridget J. Crawford (Pace; Google Scholar), Crystal Lichtenberger (Pace), Kaitlyn Maguire (Pace) & Gigi McQuillan (Pace), Step-Up in Basis: Policy Perspectives on a Longstanding Policy Loophole, 7 Bus. & Fin. L. Rev. __ (2024):

This essay offers three different and conflicting perspectives on the income tax step-up in basis for property acquired from a decedent under IRC § 1041. Arguments in favor of repealing this longstanding tax loophole include increased revenue, elimination of the tax preference for income from capital versus labor, and minimizing tax considerations on economic investment decisions. Arguments against repeal include political infeasibility, administrative convenience, and incentives for middle class investment. These divergent perspectives are concrete examples of robust tax policy analysis guided by commitments to multiple principles at the same time. Those commitments include familiar ones like efficiency, equity, and administrability, but also equity and the real-world human consequences of tax rules.

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May 15, 2024 in Scholarship, Tax, Tax Daily, Tax Scholarship | Permalink

Tuesday, May 14, 2024

University Of North Carolina Tax Profs Receive Awards For Teaching And Scholarship

Unc faculty awards
Kathleen Thomas
and Leigh Osofsky received awards for excellence in teaching and scholarship from the University of North Carolina School of Law:

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May 14, 2024 in Legal Ed News, Legal Education, Tax, Tax Daily, Tax News, Tax Profs, Teaching | Permalink

April's Tax Reflections With Reuven Avi-Yonah

Reuven S. Avi-Yonah (Michigan; Google Scholar):

Avi-YonahIs Treasury Bound by the Arm’s-Length Standard?, 183 Tax Notes Fed. 109 (Apr. 1, 2024):

Avi-Yonah examines the history of the arm’s-length standard and considers whether Treasury can deviate from it if it is necessary to clearly reflect related taxpayers’ income.

Can the United States Curb Its Debt?, 183 Tax Notes Fed. 515 (Apr. 15, 2024):

Avi-Yonah argues that because digital services taxes are used to offset the taxation impediment that “digital giants” cannot be taxed under permanent establishment rules, they should qualify as an in-lieu-of tax and therefore be creditable.

Corporate Taxpayers and Frivolous Arguments, Part 1, 183 Tax Notes Fed. 671 (April 22, 2024):

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May 14, 2024 in Scholarship, Tax, Tax Analysts, Tax Daily, Tax Scholarship | Permalink

NY Times & ProPublica: Trump May Owe $100 Million From Double-Dip Tax Breaks

Trumpo CHicago

New York Times, Trump May Owe $100 Million From Double-Dip Tax Breaks, Audit Shows:

Former President Donald J. Trump used a dubious accounting maneuver to claim improper tax breaks from his troubled Chicago tower, according to an Internal Revenue Service inquiry uncovered by The New York Times and ProPublica. Losing a yearslong audit battle over the claim could mean a tax bill of more than $100 million.

The 92-story, glass-sheathed skyscraper along the Chicago River is the tallest and, at least for now, the last major construction project by Mr. Trump. Through a combination of cost overruns and the bad luck of opening in the teeth of the Great Recession, it was also a vast money loser.

But when Mr. Trump sought to reap tax benefits from his losses, the I.R.S. has argued, he went too far and in effect wrote off the same losses twice.

The first write-off came on Mr. Trump’s tax return for 2008. With sales lagging far behind projections, he claimed that his investment in the condo-hotel tower met the tax code definition of “worthless,” because his debt on the project meant he would never see a profit. That move resulted in Mr. Trump reporting losses as high as $651 million for the year, The Times and ProPublica found.

There is no indication the I.R.S. challenged that initial claim, though that lack of scrutiny surprised tax experts consulted for this article. But in 2010, Mr. Trump and his tax advisers sought to extract further benefits from the Chicago project, executing a maneuver that would draw years of inquiry from the I.R.S. First, he shifted the company that owned the tower into a new partnership. Because he controlled both companies, it was like moving coins from one pocket to another. Then he used the shift as justification to declare $168 million in additional losses over the next decade.

The issues around Mr. Trump’s case were novel enough that, during his presidency, the I.R.S. undertook a high-level legal review before pursuing it. The Times and ProPublica, in consultation with tax experts, calculated that the revision sought by the I.R.S. would create a new tax bill of more than $100 million, plus interest and potential penalties. ...

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May 14, 2024 in Tax, Tax News | Permalink

Monday, May 13, 2024

Smith Presents Taxing Business Owner-Managers Today At Oxford

Kate Smith (London School of Economics and Political Science; Google Scholar) presents It’s All About the Base: Taxing Business Owner-Managers (with Helen Miller (Institute for Fiscal Studies)) at Oxford today as part of its Centre for Business Taxation Seminar:

Kate smithBusiness owner-managers form an important part of the workforce in many countries, including the US and UK. We develop an empirical dynamic model to study the taxation of this group, who commonly benefit from preferential tax rates aimed at boosting entrepreneurship and investment. We study all UK owner-managed businesses, explicitly accounting for heterogeneity in their activities and traits, and allow for a wide range of responses to tax, including avoidance margins. We model a rich set of policy instruments, including tax rates, bases and loans, accounting for how their interaction affects inter- and intra-temporal incentives. Increasing capital gains tax (CGT) rates on business owners raises revenue in a progressive manner and leads to a small drop in aggregate owner-managed business investment. There are large declines in investment for some high income incorporated businesses, because higher rates increase the cost of capital associated with new equity investments. 

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May 13, 2024 in Colloquia, Scholarship, Tax, Tax Daily, Tax Scholarship, Tax Workshops | Permalink

President Biden Nominates Three Tax Court Judges

The White House, President Biden Announces Key Nominees:

ArbeitJeffrey S. Arbeit is a legislation counsel with the staff of the Joint Committee on Taxation. His work focuses primarily on international tax and issues related to financial assets, transactions, and markets. Before joining the staff in 2015, Arbeit was a tax associate at Sullivan & Cromwell LLP in New York and clerked for Judge James S. Halpern at the United States Tax Court. Arbeit received an LL.M. in Taxation from New York University School of Law, where he served on the Tax Law Review; a J.D. from Boston University School of Law, where he served on the Boston University Law Review; and a B.A. in History from Brown University, where he rowed on the crew team.

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May 13, 2024 in Tax, Tax News | Permalink

Taxing Artificial Intelligence

Xavier Oberson (University of Geneva), Taxing Artificial Intelligence (2d ed. 2024):

Taxing Artificial IntelligenceIn this insightful book, a fully updated edition of the author’s Taxing Robots, Xavier Oberson explores taxing Artificial Intelligence (AI) as a potential response to rising workplace disruption and inequality as the use of AI across the economy continues to grow.

Drawing on key legal and economic principles, Xavier Oberson, who may be regarded as a pioneer of the idea of taxing robots, examines diverse tax models that could be applied to either the use of AI, such as a usage or automation tax, or to AI systems directly, and presents a novel argument in favour of taxing AI. Oberson highlights critical issues including definitions of AI and robots, the complexity of granting a tax capacity to AI, and the compatibility of AI taxes with international tax rules. In particular, this cutting-edge new edition analyses how VAT can be applied to enterprises using AI and autonomous AI systems, and reflects on the legal and technological limits facing lawmakers.

Taxing Artificial Intelligence will be essential reading for scholars, policy makers and students across law and economics. It will also be invaluable for law and tax professionals seeking to understand the latest developments in AI, automation, and the future of work.

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May 13, 2024 in Book Club, Scholarship, Tax, Tax Daily, Tax Scholarship | Permalink

TaxProf Blog Weekend Roundup

Sunday, May 12, 2024

The Top Five New Tax Papers

This week's list of the Top 5 Recent Tax Paper Downloads is the same as last week's list.

  1. SSRN Logo (2018) [877 Downloads]  Don't Blame the Victims: Individuals and the MRT, by Karen Alpert (FixTheTax Treaty.org), John Richardson (TaxResidentAbroad.com) & Laura Snyder (Association of Americans Resident Overseas)
  2. [554 Downloads]  No More Tax-Free Lunch for Billionaires: Closing the Borrowing Loophole, by Edward Fox (Michigan; Google Scholar) & Zachary Liscow (Yale; Google Scholar)
  3. [487 Downloads]  Taxing People, Not Residents, by Yariv Brauner (Florida, Google Scholar) (reviewed by Mirit Eyal-Cohen (Alabama; Google Scholar) here)
  4. [402 Downloads]  Combining VPFs and Tax-Aware Strategies to Diversify Low-Basis Stock, by Joseph Liberman & Nathan Sosner (AQR Capital Management)
  5. [318 Downloads]  Money Moves: Taxing the Wealthy at the State Level, by Brian Galle (Georgetown; Google Scholar), David Gamage (Missouri-Columbia; Google Scholar) & Darien Shanske (UC-Davis; Google Scholar)

May 12, 2024 in Scholarship, Tax, Tax Daily, Tax Scholarship, Top 5 Downloads | Permalink

Saturday, May 11, 2024

This Week's Ten Most Popular TaxProf Blog Posts

Top 10 Taxprof Blog Posts - LinkedinLegal Education: 

  1. Law360, UC-Berkeley Law Student Dinner Leads To Lawsuit By Jewish Advocacy Group Over Alleged Antisemitic Campaign Against Dean And University Civil Rights Investigation Of Alleged Harassment Of Muslim Student By His Law Professor Wife
  2. Paul Caron (Dean, Pepperdine), Law Prof Commentary On The Campus Protests
  3. Aaron Sibarium (Washington Free Beacon), 13 Federal Judges Will Not Hire Law Clerks From Columbia: An ‘Incubator Of Bigotry’
  4. Riverfront Times, Wash U Law Faculty, Students, And Alumni Condemn Protest Crackdown
  5. Law360, Law School Class Of 2023 Jobs Rankings For All 195 Law Schools In Seven Categories
  6. Aaron Sibarium (Washington Free Beacon), “Irrevocably Shaken”: Columbia Law Review Editors Demand Cancellation Of Exams Due To Campus Protests
  7. Law.com, Law School Dean Developments
  8. Fordham Symposium, The New AI: The Legal And Ethical Implications Of ChatGPT And Other Emerging Technologies
  9. Tim Rosenberger (Manhattan Institute), The New LSAT Is Bad For America
  10. Above the Law, 2024 ATL Law Revue Video Contest Finalists

Tax: 

  1. Bryan Camp (Texas Tech), Lesson From The Tax Court: When Is An Excise Tax Really A Penalty?
  2. Susan Morse (Texas), The Truth About Safe Harbors
  3. ProPublica, Sports Team Owners Face New Tax Scrutiny From The IRS
  4. Columbia Tax Workshop, Day 1, Day 2
  5. Mirit Eyal-Cohen (Alabama), Review Of Efficiency vs. Welfare In Benefit-Cost Analysis — The Case Of Government Funding By Liscow & Sunstein
  6. Sebastian Dyrda (Toronto) & Benjamin Pugsley (Notre Dame), The Rise Of Pass-Throughs: An Empirical Investigation
  7. SSRN, The Top Five New Tax Papers
  8. Florida, 27th Annual Critical Tax Conference
  9. Wall Street Journal, Reclassifying Marijuana Would Unlock Billions In Tax Savings For Cannabis Companies By Repealing Section 280E
  10. New York Times Op-Ed (Gabriel Zucman, UC-Berkeley), It's Time To Tax The Billionaires

Faith:

  1. Washington Post Op-Ed (Anne Lamott), It’s Not So ‘Terribly Strange To Be 70’
  2. Robert George (Princeton) & John Inazu (Washington University), On Antisemitism And The Campus Protests
  3. Pepperdine Caruso Law Surf Report, Religious Diversity At Pepperdine Caruso Law
  4. Paul Caron (Dean, Pepperdine), Pepperdine Caruso Law 3L Commissioning Service
  5. ABA Journal, 'Friendly Gentile' And Jewish Law Profs, A Rabbi, And A Passover Contract

May 11, 2024 in About This Blog, Faith, Legal Education, Tax, Tax Daily, Weekly Top 10 TaxProf Blog Posts | Permalink

IRS Inconsistencies: Section 213 And The Deductibility Of Assisted Reproductive Technology

Natalie Packard (J.D. 2023, Arizona State), Comment, IRS Inconsistencies: Section 213 and the Deductibility of Assisted Reproductive Technology, 54 Ariz. St. L.J. 1421 (2022): 

Arizona-state-law-journalThe Internal Revenue Code (the “Code”) is a powerful tool that both reflects and shapes public policy. Through its complex set of deductions, tax rates, and credits, the Code creates financial incentives that encourage certain behavior, such as buying a house or donating to charity. While the Treasury Department writes the Code, the Internal Revenue Service (“IRS”) performs the essential role of interpreting its language, hopefully in a way that reflects taxpayers’ values. Thus, as values change, the IRS’s application of the Code or the Code itself should change. Unfortunately, both Congress and the IRS can be slow to accept evolving values. As a result, many Code provisions preserve outdated and inaccurate assumptions about families, resulting in a “landscape of discrimination hidden within the tax code.” Section 213 is one such provision, where the IRS has applied a traditional view of family and medical care that discriminates against same-sex couples who want to have children. 

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May 11, 2024 in Scholarship, Tax, Tax Daily, Tax Scholarship | Permalink

Friday, May 10, 2024

Weekly SSRN Tax Article Review And Roundup: Kim Reviews Raskolnikov's Law For The Rich

This week, Young Ran (Christine) Kim (Cardozo; Google Scholar) reviews a recent paper by Alex Raskolnikov (Columbia), Law for the Rich, 109 Minn. L. Rev. __ (2024).

Kim (2023)

With respect to the heated debate on introducing higher, more effective taxes on the rich, like a wealth tax, Alex Raskolnikov (Columbia) asks a provocative question in his recent essay, Law for the Rich, 109 Minn. L. Rev. (forthcoming 2024)—why not  propose legal reforms to expand the scope beyond tax law and introduce a separate general (non-tax) law for the rich, encompassing property law, contract law, corporate law, antitrust law, IP law, labor law, and so on (collectively, the Law for the Rich (LFR))?

Raskolnikov explains that although there is no such LFR, it is possible to envisage a practicable one and implement it. For example, in property law, "time limits can be shortened or lengthened if the negatively affected party happens to be the rich."

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May 10, 2024 in Scholarship, Tax, Tax Daily, Tax Scholarship, Weekly SSRN Roundup, Weekly Tax Roundup | Permalink

Tax Policy In The Biden Administration

27th Annual Critical Tax Conference At Florida

Florida levin college of lawFlorida hosts the 27th Annual Critical Tax Conference today and tomorrow. If you would like to attend via Zoom, contact David Hasen

Friday 

9:00 AM: Welcome 

9:10 AM: First Morning Session 

10:25 AM: Second Morning Session  

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May 10, 2024 in Conferences, Legal Education, Scholarship, Tax, Tax Conferences, Tax Daily, Tax Workshops | Permalink

Next Week’s Tax Workshop

Next Week's Tax Workshops - twitterMonday, May 13: Kate Smith (London School of Economics and Political Science; Institute for Fiscal Studies; Google Scholar) will present It’s All About the Base: Taxing Business Owner-Managers (with Helen Miller (Institute for Fiscal Studies)) as part of the Oxford Centre for Business Taxation Seminar. If you would like to attend, please RSVP here

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May 10, 2024 in Colloquia, Legal Education, Scholarship, Tax, Tax Daily, Tax Scholarship, Tax Workshops | Permalink

Thursday, May 9, 2024

Competing Narratives In OIRA Review Of Tax Regulations

Kristin E. Hickman (Minnesota; Google Scholar) & Bridget C.E. Dooling (Ohio State; Google Scholar), Competing Narratives in OIRA Review of Tax Regulations, 19 J.L. Econ. & Pol’y __ (2024):

Journal of law economics and policyIn a major retreat for presidential administration, the Biden Administration pulled the plug—at least for now—on Office of Information and Regulatory Affairs (OIRA) review of tax regulations. The interagency memorandum of agreement (the 2023 MOA) ended the OIRA-facilitated interagency review process and compliance with Executive Order (EO) 12,866 for tax regulatory actions. Contrary to some assertions, the 2023 MOA goes further than any of its predecessor agreements by exempting not merely some or most but rather all tax regulatory actions from OIRA review. The move also ended a short-lived effort, memorialized in a 2018 memorandum (the 2018 MOA), that required OIRA review more often in the tax context than had been the case in the past.

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May 9, 2024 in Scholarship, Tax, Tax Daily, Tax Scholarship | Permalink

Fleischer: Taxing Old Money—Considerations In Crafting A Rignano Tax

Miranda Perry Fleischer (San Diego; Google Scholar), Taxing Old Money: Considerations in Crafting a Rignano Tax, 8 L. Ethics & Phil. 86 (2020):

Law ethics and philosophyThis article explores whether it is possible to tax “old money” differently than “new money.” In The Inheritance of Wealth, Daniel Halliday proposes that we tax wealth more heavily the second time it is transferred than the first, and even more heavily the third time. He envisions something like the following: Grandfather builds a business from the ground up and bequeaths $10,000,000 to Mother. No tax is imposed, but if Mother does not create any wealth of her own and simply retransfers $10,000,000 to Daughter, all of Mother’s estate is taxed. In contrast, if Mother creates new wealth, different portions of her estate are treated differently. 

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May 9, 2024 in Scholarship, Tax, Tax Daily, Tax Scholarship | Permalink

Law School Dean Developments

Law.com, 'Dean Developments': Several Deans Move Long Distance:

There may be a calm before the storm with only three dean changes within the past month, but June and July are prime time for dean moves.

The University of Buffalo School of Law has named a permanent dean [S. Todd Brown], as its former dean [Aviva Abramovsky] heads to Idaho. Meanwhile, an Albany Law School professor [Alicia Ouellette] is moving to the West Coast to take on a new role as dean.

Plus, the New York University School of Law has launched a new lab focusing on environmental justice, and Paul Caron celebrates 20 years of publishing the TaxProf Blog. ...

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May 9, 2024 in Legal Ed News, Legal Education, Pepperdine Legal Ed, Pepperdine Tax, Tax, Tax Daily, Tax News | Permalink

Borden: The IRS’s Position On Section 1031 Straddle Exchanges Is Half Wrong

Bradley T. Borden (Brooklyn; Google Scholar), The IRS’s Position on Section 1031 Straddle Exchanges Is Half Wrong, 181 Tax Notes Fed. 1193 (Nov. 13, 2023):

Tax Notes Federal (2022)When a section 1031 exchange straddles tax years and includes liability relief, exchangers must determine whether gain is recognized in the year of disposition of the relinquished property or in the subsequent year when the exchanger acquires replacement property or the exchange terminates. In Rev. Rul. 2003-56, the IRS took the position that the timing of the gain depends upon whether the exchanger replaces the relinquished liability.

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May 9, 2024 in Scholarship, Tax, Tax Analysts, Tax Daily, Tax Scholarship | Permalink

Wednesday, May 8, 2024

Blank & Osofsky: Democratizing Administrative Law

Joshua D. Blank (UC-Irvine; Google Scholar) & Leigh Osofsky (North Carolina; Google Scholar), Democratizing Administrative Law, 73 Duke L.J. 1615 (2024): 

Duke Law Journal (2022)When agencies make statements about the law, people listen. This insight yields a fundamental tension. According to one set of views, such agency statements, and their ability to influence public behavior, are critical not only for a well-functioning bureaucracy but also for our entire system of government. According to another set of views, this agency power, if left unchecked, could border on tyranny.

Administrative law responds to this tension through an extensive, purportedly comprehensive, framework that attempts to police agency statements. The framework places different types of agency statements into different legal categories. On the one hand, legislative rules make new binding law. On the other hand, less formal guidance (including interpretive rules and policy statements) offers an agency’s interpretive or policy positions about the law. Scholars and courts have long debated the categorization effort as well as what legal consequences flow from it.

This Article identifies a striking gap in this categorization framework.

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May 8, 2024 in Scholarship, Tax, Tax Daily, Tax Scholarship | Permalink

Del Wright Leaves UMKC For LSU

LSU Law News, Crypto Scholar, Former US Department of Justice Prosecutor Del Wright Jr. to Join LSU Law faculty in Fall 2024 Semester:

Wright 2Del Wright Jr., a former U.S. Department of Justice (DOJ) prosecutor with the Tax Division and legal scholar whose research focuses on crypto and the regulation of blockchain technologies, will join the LSU Law faculty at the start of the Fall 2024 semester as the Vinson & Elkins Endowed Professor of Law.

Prof. Wright teaches in the areas of tax, finance, business, securities, entrepreneurship, and in the last few years, crypto and blockchain regulation. He began his academic career at Valparaiso University Law School and taught there from 2010 to 2017, then joined the University of Missouri-Kansas City Law School. His earlier scholarship explored the intersectionality of tax and finance, and in 2019 he expanded his focus to include the law and regulation of blockchain technologies.

In 2020, he published his first book, A Short and Happy Guide to Bitcoin, Blockchain and Crypto. He has two additional books in the works—Legal Issues in Blockchain & Crypto In a Nutshell, and Blockchain, Law & Policy: Materials, Problems & Interdisciplinary Considerations—to be published by West Academic Publishers. His articles have been published in academic journals such as the BNA Tax Management Real Estate JournalVirginia Tax Law ReviewAkron Law ReviewArizona State Law Journal, and the University of Missouri Kansas City Law Review. ...

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May 8, 2024 in Legal Ed News, Legal Education, Tax, Tax Daily, Tax News, Tax Prof Moves | Permalink

Layser & Greenlee: Structural Inequality And The New Markets Tax Credit

Michelle D. Layser (San Diego; Google Scholar) & Andrew Greenlee (Illinois; Google Scholar), Structural Inequality and the New Markets Tax Credit, 73 Duke L.J. 800 (2024):

Duke-law-journalThe New Markets Tax Credit (NMTC) is a federal tax incentive used to promote investment in low-income neighborhoods. Many of these neighborhoods are home to historically marginalized communities. However, very few minority-led institutions participate in the NMTC program. This Article provides the first theoretical and empirical exploration of the underrepresentation of minority-led institutions in the NMTC program. Based on original interviews with representatives of Community Development Entities (CDEs), investors, borrowers, and consultants who participate in the NMTC program, this Article describes the “NMTC ecosystem,” a complex, relationship-driven network of NMTC program participants who influence decision making and create opportunities for success within the NMTC program. 

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May 8, 2024 in Scholarship, Tax, Tax Scholarship | Permalink

The Rise Of Pass-Throughs: An Empirical Investigation

Sebastian Dyrda (Toronto; Google Scholar) & Benjamin W. Pugsley (Notre Dame; Google Scholar), The Rise of Pass-Throughs: An Empirical Investigation:

Pass-through entities have emerged as the leading U.S. business organization form in recent decades. Using comprehensive confidential administrative data, this paper highlights five core findings: (1) the rise in pass-throughs is pervasive across industries and states; (2) the pass-through share converges unconditionally across both; (3) 60% of the rise is driven by entrants' organizational choices; (4) shifts in firm and organizational dynamics following the 1986 Tax Reform Act show continued effects through the 2000s; (5) organizational forms exhibit high persistence with little lifecycle variation. Our study implies that tax or regulatory policy changes might take decades to fully manifest.

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May 8, 2024 in Scholarship, Tax, Tax Daily, Tax Scholarship | Permalink

Tuesday, May 7, 2024

Columbia Tax Workshop (Day 2)

Today's Columbia Tax Workshop is being held at its Manhattanville Campus

Columbia (2023)Katarzyna Bilicka (Utah State; Google Scholar), The Role of Intellectual Property in Tax Planning (with Paul Organ (U.S. Treasury Department; Google Scholar) & İrem Güçeri (Oxford; Google Scholar)) 
Discussant: Michael Love (Columbia)

Multinational enterprises (MNEs) that invest in research and development (R&D) and innovation find it easier to shift profits between their subsidiaries located in jurisdictions with different tax rates. While MNEs invest in R&D and develop intellectual property (IP) across multiple jurisdictions, they can also strategically move profits arising from that IP from high- to low-tax jurisdictions to reduce their overall tax bill. In this paper, we analyze and quantify the importance of two different strategies that MNEs use to move their IP to low-tax jurisdictions: selling a patent developed in a high-tax jurisdiction to a low-tax jurisdiction directly, or signing a cost-sharing arrangement (CSA) between those two jurisdictions to cover the costs of developing further IP. Combining administrative data on CSAs, patent applications and transactions, and US tax returns, we provide novel stylized facts on the use of both those strategies by MNEs. We then show that CSAs increase jurisdiction-level patenting activity, royalty payments, profits, and profitability, especially the CSAs signed with low-tax jurisdictions. At the MNE level, a new CSA significantly increases firm sales, profitability, and R&D investment, without affecting the MNE’s effective tax rates. Private firms are the only ones that experience the significant MNE-level effects on sales, profitability, and intangible assets after they sign their first CSA.

Ari Glogower (Northwestern; Google Scholar), Closing the Life Insurance Tax Loophole (with Andrew Granato (J.D.-Ph.D. Candidate, Yale))
Discussant: John Vella (Oxford) 

Permanent life insurance contracts enjoy an unparalleled combination of tax benefits. In a permanent or “cash value” contract, a portion of the premium paid is allocated to an internal savings account or “cash value reserve,” which over time reduces the amount of insured risk in the contract. The cash value reserve enables the policyholder’s beneficiary to ultimately receive a guaranteed “death benefit” that includes the policyholder’s accumulated savings upon the death of the insured person, resulting in an arrangement that resembles an investment account, rather than financial protection in the event of an untimely death.

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May 7, 2024 in Colloquia, Conferences, Scholarship, Tax, Tax Conferences, Tax Daily, Tax Scholarship, Tax Workshops | Permalink

WSJ: Reclassifying Marijuana Would Unlock Billions In Tax Savings For Cannabis Companies By Repealing Section 280E

Wall Street Journal, Reclassifying Marijuana Could Unlock Billions in Tax Savings for Cannabis Companies:

Many U.S. cannabis businesses could become profitable for the first time if the Biden administration follows through on its plan to reclassify marijuana as a less dangerous drug.

That is because the change could lift a heavy income-tax burden: Section 280E of the federal tax code currently bars cannabis businesses from claiming deductions on many basic business expenses. That rule often results in an effective tax rate of 70% or more, wiping out most licensed marijuana retailers’ earnings. ...

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May 7, 2024 in Tax, Tax Daily, Tax News | Permalink

Zucman: It's Time To Tax The Billionaires

New York Times Op-Ed:  It's Time to Tax the Billionaires, by Gabriel Zucman (Paris School of Economics & UC-Berkeley; Google Scholar):

Until recently, it was hard to know just how good the superrich are at avoiding taxes. Public statistics are oddly quiet about their contributions to government coffers, a topic of legitimate interest in democratic societies.

Over the past few years, I and other scholars have published studies and books attempting to fix that problem. While we still have data for only a handful of countries, we’ve found that the ultrawealthy consistently avoid paying their fair share in taxes. In the Netherlands, for instance, the average taxpayer in 2016 gave 45 percent of earnings to the government, while billionaires paid just 17 percent.

Zucman 1

Why do the world’s most fortunate people pay among the least in taxes, relative to the amount of money they make?

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May 7, 2024 in Tax, Tax News | Permalink

Monday, May 6, 2024

Columbia Tax Workshop (Day 1)

Today's Columbia Tax Workshop is being held at its Manhattanville Campus

Columbia (2023)Kimberly Clausing (UCLA; Google Scholar), Capital Taxation and Market Power
Discussant: Wojciech Kopczuk (Columbia; Google Scholar)

In recent decades, market power has increased substantially, according to multiple measures that describe industry concentration, mark-ups, and business profitability. While market power can generate benefits, it also raises vexing policy concerns, including the potential for adverse effects on labor markets, income inequality, and the dynamism of market competition. The concept of market power also has implications for how we conceptualize capital income, making it important to distinguish between normal and above-normal returns to capital. The tax system taxes both types of returns to capital, but often imperfectly and incompletely. Full consideration of the relationship between market power and capital income suggests important implications for optimal capital taxation design, including the role of entity taxation, the use of graduated business tax rates, and international tax reform.

Conor Clarke (Washington University; Google Scholar) & Wojciech Kopczuk (Columbia; Google Scholar), Income Inequality and the Corporate Sector
Discussant: Yair Listokin (Yale; Google Scholar)

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May 6, 2024 in Colloquia, Conferences, Scholarship, Tax, Tax Conferences, Tax Daily, Tax Scholarship, Tax Workshops | Permalink

ABA Tax Section 2024 May Meeting

The ABA Tax Section held its 2024 May Tax Meeting (program) last Thursday-Saturday. A highlight was Friday's Teaching Taxation program on Taxing Litigation Finance:

ABA Tax Section 2024 May MeetingThird-party litigation funding has rapidly grown in recent years. Policy discussion on the proper tax treatment of the parties involved, however, has fallen by the wayside. The problem is acute in classifying litigation financing contracts as nonrecourse loans, immediate sales, or variable prepaid forward contracts, all of which have a discrete impact on the parties’ timing and character of income. Nonetheless, tax authorities have chosen to remain silent on this topic, except for an unhelpful IRS memorandum released in 2015. The U.S. Tax Court’s 2020 decision in Novoselsky v. Commissioner (T.C. Memo. 2020-68, May 28, 2020), the first modern reported case to directly address the tax treatment of a litigation finance contract, has not resolved taxpayer uncertainty. This panel will examine various tax issues in consumer and commercial litigation finance, including preferred tax position by the beneficiaries (lawyers and litigants) and the funders, and the character and timing of income. The panel will also discuss the Novoselsky case, the use of forward contracts, potential compliance issues, and the areas of uncertainty.

  • Young Ran (Christine) Kim (Cardozo; Google Scholar) (moderator)
  • Mark Leeds (Mayer Brown, New York)
  • Eric Schuller (The Alliance for Responsible Consumer Legal Funding)
  • Matthew Stevens (EY, Washington, D.C.)
  • Mohamed Sweify (Hinshaw & Culbertson, New York)

Other Tax Profs with speaking roles included:

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May 6, 2024 in ABA Tax Section, Tax, Tax Daily, Tax News | Permalink

Lesson From The Tax Court: When Is An Excise Tax Really A Penalty?

Lessons From The Tax Court (2024)“The power to tax involves the power to destroy.” Justice John Marshall in McCulloch v. Maryland, 17 U.S. 316, 431 (1819).

“Sometimes a tax is...just a tax.” — Sigmund Freud’s Tax Advisor.

Today’s lesson is about how to tell when an excise tax is really a penalty.  The answer I learn is: “why do you want to know?”  I hope to explain why that answer makes the most sense.

In Clair R. Couturier Jr. v. Commissioner, T.C. Memo. 2024-6 (Jan. 17, 2024) (Judge Lauber), the IRS sent the taxpayer a Notice of Deficiency for over $8 million.  The basis for the proposed deficiency was that Mr. Couturier had made an excess contribution of over $25 million to his IRA, thus triggering the excise tax imposed by §4973 on excess IRA contributions.

In Tax Court, Mr. Courturier—well represented by Taylor, Nelson and Amitrano—argued that the §4973 “tax” was really a “penalty.”  If true, that meant that the IRS needed to have followed the supervisory approval procedures for penalties in §6751(b), which it had not.  The IRS argued that it did not have to follow the §6751(b) supervisory approval procedures before sending out the NOD because the tax was ... just a tax!

Judge Lauber’s opinion explains why the §4973 excise tax was not a penalty for purposes of the §6751(b) supervisory approval requirements.  Keith Fogg has a really good post on this issue here, where he suggests a potential tension between what he describes as the Tax Court’s textual analysis (focusing on the labels) and what he describes as the Supreme Court’s functional analysis about a similar excise tax in U.S. v. Reorganized CF & I Fabricators of Utah, Inc., 518 U.S. 213 (1996), a bankruptcy case.

I see the matter a bit differently than Keith.  Different statutes (e.g., bankruptcy statutes, statutes imposing interest) treat penalties differently than they treat taxes.  The lesson I learn is that looking to see whether an excise tax operates in some abstract sense as a penalty is not the strongest analysis.  Instead, the better analysis is to see whether treating it as a penalty is more appropriate under the relevant statutory scheme than treating it as a tax.  In other words, why do you want to know?

Details, and a fuller explanation, await those intrepid readers who continue below the fold.

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May 6, 2024 in Bryan Camp, New Cases, Scholarship, Tax, Tax Daily, Tax Practice And Procedure, Tax Scholarship | Permalink | Comments (2)

TaxProf Blog Weekend Roundup

Sunday, May 5, 2024

The Top Five New Tax Papers

This week's list of the Top 5 Recent Tax Paper Downloads is the same as last week's list.

  1. SSRN Logo (2018) [873 Downloads]  Don't Blame the Victims: Individuals and the MRT, by Karen Alpert (FixTheTax Treaty.org), John Richardson (TaxResidentAbroad.com) & Laura Snyder (Association of Americans Resident Overseas)
  2. [541 Downloads]  No More Tax-Free Lunch for Billionaires: Closing the Borrowing Loophole, by Edward Fox (Michigan; Google Scholar) & Zachary Liscow (Yale; Google Scholar)
  3. [473 Downloads]  Taxing People, Not Residents, by Yariv Brauner (Florida, Google Scholar) (reviewed by Mirit Eyal-Cohen (Alabama; Google Scholar) here)
  4. [400 Downloads]  Combining VPFs and Tax-Aware Strategies to Diversify Low-Basis Stock, by Joseph Liberman & Nathan Sosner (AQR Capital Management)
  5. [314 Downloads]  Money Moves: Taxing the Wealthy at the State Level, by Brian Galle (Georgetown; Google Scholar), David Gamage (Missouri-Columbia; Google Scholar) & Darien Shanske (UC-Davis; Google Scholar)

May 5, 2024 in Scholarship, Tax, Tax Daily, Tax Scholarship, Top 5 Downloads | Permalink

Saturday, May 4, 2024

This Week's Ten Most Popular TaxProf Blog Posts

Top 10 Taxprof Blog Posts - LinkedinLegal Education: 

  1. Washington Post Op-Ed (Paul Berman), Punish Columbia Professors, Not Students Protesters, For The Intellectual Degeneration On Campus 
  2. Vivia Chen, A 47-Year Old Lawyer Dies. Is Big Law To Blame? 
  3. The Atlantic (Erwin Chemerinsky), No One Has A Right To Protest In My Home 
  4. Law.com, Pro-Palestinian Protests Disrupt Law School Finals And Commencement Ceremonies
  5. Reuters, Law School Class Of 2023 Jobs Rankings: Bar-Passage Required, BigLaw, Federal Judicial Clerkships, And Government|Public Interest 
  6. ABA Journal,  Tenured Law Prof Takes Buyout, Becomes Stand-Up Comic 
  7. Morris Ratner (UC Law SF), Stephen Goggin (San Diego State), Stefano Moscato (UC Law SF), Margaret Greer (UC Law SF) & Elizabeth McGriff (UC Law SF), Determinants Of Success On The Bar Exam: One Law School's Experience 2010-2023 
  8. Reuters, 45% Of Junior Associates: Law School Failed To Prepare Me For Practice  
  9. GW Hatchet, George Washington Law School Relocates Students For Final Exams Due To Pro-Palestinian Encampment On Campus 
  10. Bloomberg Law, The Free Market Hits Big Law On-Campus Recruiting In Race For 1L Talent 

Tax: 

  1. Paul Caron (Dean, Pepperdine), Deanna Newton Joins Pepperdine Tax Faculty 
  2. Haley Ritter (Orrick, Herrington & Sutcliffe, Irvine, CA), The Tax Ramifications Of Name, Image, And Likeness Deals For Student-Athletes 
  3. Shannon Weeks McCormack (University of Washington), America's Failure To Rescue Parents: A Narrative Of Inequitable Tax "Reform" 
  4. In Memoriam, Death Of David Herwitz (Harvard) 
  5. David Gamage (Missouri-Columbia) & Ari Glogower (Northwestern), The Policy And Politics Of Alternative Minimum Taxes 
  6. Arun Advani (Warwick), Presentation of How Responsive Are Top Earners To Tax Rates? At Oxford 
  7. The Athletic, California Legislation Would Ask Congress To Close Shohei Ohtani Tax Loophole 
  8. David Elkins (Netanya), Review Of The Policy And Politics Of Alternative Minimum Taxes By Gamage & Glogower
  9. Michelle Layser (San Diego), Privacy And Tax Information Collection: A Response To Blank And Glogower
  10. Paul Caron (Dean, Pepperdine), Pepperdine Tax Policy Workshop Series (Spring 2024)

Faith:

  1. Washington Post Op-Ed (Anne Lamott), It’s Not So ‘Terribly Strange To Be 70’
  2. ABA Journal, 'Friendly Gentile' And Jewish Law Profs, A Rabbi, And A Passover Contract
  3. Paul Caron (Dean, Pepperdine), Pepperdine Caruso Law 3L Commissioning Service
  4. New York Times & Wall Street Journal Book Reviews, Enslaved Christians And The Making Of The Bible 
  5. NOTUS, How Speaker Mike Johnson’s Faith Changed His Path On Ukraine 

May 4, 2024 in About This Blog, Faith, Legal Education, Tax, Tax Daily, Weekly Top 10 TaxProf Blog Posts | Permalink