Paul L. Caron
Dean




Friday, November 5, 2021

Next Week’s Tax Workshops

Next Week's Tax Workshops - linkedinMonday, November 8: Michael Graetz (Columbia) will present Origins of the Antitax Movement as part of the Loyola-L.A. Tax Policy Colloquium. If you would like to attend, please RSVP here

Tuesday,  November 9: Audrey Guo (Santa Clara; Google Scholar) will present Payroll Tax Incidence: Evidence from Unemployment Insurance as part of the Georgetown Tax Law and Public Finance Workshop. If you would like to attend, please contact Brian Galle.

Tuesday,  November 9: Ruth Mason (Virginia; Google Scholar) & Michael Knoll (Penn) will present Unbundling Undue Burdens as part of the NYU Tax Policy and Public Finance Colloquium. If you would like to attend, please contact Daniel Shaviro

Tuesday,  November 9: Jill R. Horwitz (UCLA) will present Why We (Still) Need Non-Profit Hospitals as part of the San Diego Tax Law Speaker Series. If you would like to attend, please RSVP here.

Thursday,  November 11: David Hasen (Florida; Google Scholar) will present Interest Deductibility Under the Income Tax as part of the Indiana Tax Policy Colloquium. If you would like to attend, please contact Leandra Lederman.

Thursday,  November 11: Dina Pomeranz (Zurich; Google Scholar) will present Ghosting the Tax Authority: Fake Firms and Tax Fraud with Paul Carrillo (George Washington; Google Scholar), Dave Donaldson (MIT; Google Scholar) & Monica Singhal (UC-Davis) as part of the OMG Transatlantic Tax Talks. If you would like to attend, see here.

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November 5, 2021 in Colloquia, Legal Education, Scholarship, Tax, Tax Workshops | Permalink

Does Shaming Pay? Evaluating California's Top 500 Tax Delinquent Publication Program

Chad Angaretis (California Franchise Tax Board), Brian D. Galle (Georgetown; Google Scholar), Paul Organ (Michigan; Google Scholar) & Allen C. Prohofsky (California Franchise Tax Board), Does Shaming Pay? Evaluating California's Top 500 Tax Delinquent Publication Program:

Many U.S. states and countries around the world publicly disclose tax debtors to encourage compliance. Little is known about the effectiveness of these programs. Using administrative tax microdata from California’s “Top 500” disclosure program, we study whether notices of imminent publication affect payment and other compliance outcomes, as well as whether these notices affect subsequent reported earnings. We estimate the direct effect of the letter sent to the 500 highest-balance, publication-eligible taxpayers to be additional revenue of between $2.8 and $7.2 million annually, with no evidence of an impact on subsequent reported earnings. We also estimate an upper bound on the deadweight loss caused by publication of non-compliers, and conclude that the program generates positive net social welfare. Together, these results suggest that delinquent taxpayer disclosure can be an efficient tax enforcement tool, at least among the relatively high-income population we study.

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November 5, 2021 in Scholarship, Tax, Tax Scholarship | Permalink

ProPubica: How These Ultrawealthy Politicians Avoided Paying Taxes

ProPubica, How These Ultrawealthy Politicians Avoided Paying Taxes:

Pro PublicaIRS records reveal how Gov. Jim Justice, Gov. Jared Polis, former Education Secretary Betsy DeVos and other wealthy political figures slashed their taxes using strategies unavailable to most of their constituents. ...

The records show that rich Democrats and Republicans alike have slashed their taxes using strategies unavailable to most of their constituents. Among them are governors, members of Congress and a cabinet secretary. ...

As ProPublica has revealed in a series of articles this year, these tactics, if sometimes aggressive, are completely legal. And they’re not universal among wealthy politicians. ProPublica reviewed tax data for a couple dozen wealthy current and former government officials. Their data shows that many of them paid relatively high tax rates while employing more modest use of the fairly standard deductions of the rich.

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November 5, 2021 in Tax, Tax News | Permalink

Thursday, November 4, 2021

Crane Reviews Mason's The 2021 BEPS Compromise

Charlotte Crane (Northwestern; Google Scholar), Change in International Tax (JOTWELL) (reviewing Ruth Mason (Virginia; Google Scholar), The 2021 Compromise, 172 Tax Notes Fed. 569 (2021)):

Jotwell (2019)Only a fraction of tax law professors teach the course usually called “international tax.” For the rest of us teaching tax at a law school, the effort that technical competency in international tax requires is unsustainable, especially given the instability of that part of the law that most affects US multinational business. But every tax professor should understand at least a little bit about the ways that international tax law is changing. I recommend reading Ruth Mason’s work, most recently The 2021 Compromise, as a great way to gain competency regarding this evolution.

Mason’s goal in this piece is to contextualize recent developments in the OECD/G20’s BEPS project against the backdrop of her extensive prior work on the subject (see especially The Transformation of International Tax), and to put into perspective the changes currently underway in the international tax space. On July 1, 2021, 130 countries reached agreement in principle to Pillars 1 and 2 of the G20/OECD Base Erosion and Profits Shifting (BEPS) project. Pillar 1 concerns the allocation of taxing authority after the emergence of the digital economy and Pillar 2 is a proposal for a global minimum tax. This two-Pillar OECD project represents a second phase of the G20/OECD work on BEPS.

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November 4, 2021 in Scholarship, Tax, Tax Scholarship | Permalink

Blank & Glogower: Progressive Tax Procedure

Joshua Blank (UC-Irvine; Google Scholar) & Ari Glogower (Ohio State; Google Scholar), Progressive Tax Procedure, 96 N.Y.U. L. Rev. 668 (2021):

Abusive tax avoidance and tax evasion by high-income taxpayers pose unique threats to the tax system. These strategies undermine the tax system’s progressive features and distort its distributional burdens. Responses to this challenge generally fall within two categories: calls to increase IRS enforcement and “activity-based rules” targeting the specific strategies that enable tax avoidance and evasion by these taxpayers. Both of these responses, however, offer incomplete solutions to the problems of high-end noncompliance.

This Article presents the case for “progressive tax procedure”—means-based adjustments to the tax procedure rules for high-income taxpayers. In contrast to the activity-based rules in current law, progressive tax procedure would tailor rules to the economic circumstances of the actors rather than their activities. For example, under this approach, a high-income taxpayer would face higher tax penalty rates or longer periods where the IRS could assess tax deficiencies. Progressive tax procedure could also allow an exception for low-value tax underpayments, to avoid excessive IRS scrutiny or unduly burdensome rules for less serious offenses.

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November 4, 2021 in Scholarship, Tax, Tax Scholarship | Permalink

Subsidizing Economic Segregation Through The State And Local Tax Deduction

Gladriel Shobe (BYU; Google Scholar), Subsidizing Economic Segregation Through the State and Local Tax Deduction, 11 U.C. Irvine L. Rev. 539 (2020):

Economic segregation has increased over the past half-century. The trend of rich localities getting richer while poor localities get poorer is particularly concerning because it limits upward mobility and perpetuates intergenerational income inequality. This Article makes the novel argument that the state and local tax deduction subsidizes economic segregation. It arrives at that conclusion by showing that the “local tax deduction” provides a greater subsidy, per capita, for wealthy, economically segregated localities because only those localities have a critical mass of wealthy taxpayers who claim the deduction. This allows wealthy localities, but not poor localities, to provide services at a cost less than face value to their residents. 

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November 4, 2021 in Scholarship, Tax, Tax Scholarship | Permalink

Hasen: Three Cheers For Proposed Changes To Partnership Debt Basis Allocation Rules

David Hasen (Florida), Three Cheers for Proposed Changes to Partnership Debt Basis Allocation Rules, 173 Tax Notes Fed. 489 (Oct. 25, 2021):

Tax Notes Federal (2020)In this article, Hasen explains problems with the rules regarding the allocation of basis credit among partners for the partnership’s third-party debt, and why the proposed change from Senate Finance Committee Chair Ron Wyden, D-Ore., would go a long way toward solving them.

Conclusion
Enactment of proposed section 752(e)(1) would represent a substantial improvement over existing law. The PPR aligns basis credit with economic reality; it eliminates tax-motivated manipulations of essentially meaningless risk-of-catastrophic loss allocations; and it eliminates the tax disparity between economically similar recourse and nonrecourse debt arrangements. These reasons alone would suffice to recommend the provision.

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November 4, 2021 in Scholarship, Tax, Tax Analysts, Tax Scholarship | Permalink

ProPublica: 18 Billionaires Received Taxpayer-Funded Stimulus Checks During The Pandemic

ProPublica, These Billionaires Received Taxpayer-Funded Stimulus Checks During the Pandemic:

Pro PublicaProPublica, using its trove of IRS records, identified at least 18 billionaires who received stimulus payments, which were funded by U.S. taxpayers, in the spring of 2020. Hundreds of other ultrawealthy taxpayers also got checks.

The wealthy taxpayers who received the stimulus checks got them because they came in under the government’s income threshold. In fact, they reported way less taxable income than that — even hundreds of millions less — after they used business write-offs to wipe out their gains.

ProPublica found 270 taxpayers who collectively disclosed $5.7 billion in income, according to their previous tax return, but who were able to deploy deductions at such a massive scale that they qualified for stimulus checks. All listed negative net incomes on tax returns.

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November 4, 2021 in Tax, Tax News | Permalink

Wednesday, November 3, 2021

Oei Presents World Tax Policy In The World Tax Polity Today At Utah

Shu-Yi Oei (Boston College; Google Scholar) presents World Tax Policy in the World Tax Polity? An Event History Analysis of OECD/G20 BEPS Inclusive Framework Membership, 47 Yale J. of Int'l L. __ (2022), at Utah today as part of its Faculty Workshop Series hosted by Young Ran (Christine) Kim: 

Shuyi-oeiThe last decade has seen the emergence of a new global tax order characterized by increased multilateral consensus and cooperation. World polity theory appears to be an obvious theoretical fit for conceptualizing this new order, which has been spearheaded by the OECD and G20. But what are the pathways by which this new “world tax polity” has emerged? Using event history regression methods, this Article investigates this question by studying the case of the OECD/G20 BEPS Inclusive Framework, a multilateral framework that currently includes 140 member countries, including 96 non-OECD, non-G20 countries.

How did these countries come to join the BEPS Inclusive Framework? World polity theory posits that the new multilateral Inclusive Framework could have been driven by normative, coercive, or mimetic processes. Of these possibilities, my Article finds that Inclusive Framework membership seems to have proliferated through a combination of normative and coercion-based pathways. Specifically, acculturation through prior involvement in certain OECD tax initiatives and inclusion in contemporaneous European Union tax haven “listing” (naming and shaming) processes was associated with a significantly higher hazard of Framework membership. By contrast, imitation of other countries did not appear to be a significant pathway.

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November 3, 2021 in Colloquia, Scholarship, Tax, Tax Workshops | Permalink

Dagan Presents Cooperation And Its Discontents Today At UC-Irvine

Tsilly Dagan (Oxford; Google Scholar) presents Cooperation and its Discontents from International Tax Policy: Between Competition and Cooperation (Cambridge University Press 2017) at UC-Irvine today as part of its Tax Policy Colloquium

Tsilly-daganIn this session of the UCI Tax Policy Colloquium, Professor Dagan will present a chapter from her book, International Tax Policy: Between Competition and Cooperation. The chapter examines why some countries participate in multilateral cooperative tax efforts that do not serve their best interests. The analysis reviews key multilateral efforts including double-taxation prevention, the campaign against harmful tax competition, information-sharing initiatives, and efforts countering base erosion and profit-shifting.

About Professor Tsilly Dagan
Professor Tsilly Dagan is Professor of Taxation Law at Oxford University and a Fellow of Worcester College. Professor Dagan’s main fields of research and teaching are tax law and policy (both domestic and international) and the interaction of the state and the market. Her book International Tax Policy: Between Competition and Cooperation (Cambridge University Press) is the winner of the 2017 Frans Vanistendael Award for International Tax Law.

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November 3, 2021 in Colloquia, Scholarship, Tax, Tax Workshops | Permalink

Goldin & Kleiman: Whose Child Is This? Improving Child-Claiming Rules In Safety Net Programs

Jacob Goldin (Stanford; Google Scholar) & Ariel Jurow Kleiman (Loyola-L.A.; Google Scholar), Whose Child is this? Improving Child-Claiming Rules in Safety Net Programs, 131 Yale L. J. ___ (2022):

To address the staggering problem of child poverty in the United States, Congress may soon enact a child allowance akin to those in other high-income countries. As lawmakers debate doing so, they must consider the design of rules that determine how benefits are distributed. Among the more important of these are “child-claiming” rules. These rules determine which adults can receive benefits for which children, driving how well a program helps recipients and satisfies public goals.

To address the staggering problem of child poverty in the United States, Congress may soon enact a child allowance akin to those in other high-income countries. As lawmakers debate doing so, they must consider the design of rules that determine how benefits are distributed. Among the more important of these are “child-claiming” rules. These rules determine which adults can receive benefits for which children, driving how well a program helps recipients and satisfies public goals.

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November 3, 2021 in Scholarship, Tax, Tax Scholarship | Permalink

Blue J Predicts With 74% Confidence That 8th Circuit Will Find Customary/Usual Management Fees Are Deductible Under § 162

Benjamin Alarie & Christopher Yan (Blue J Legal), Would Management Fees by Any Other Name Still Be Deductible?, 173 Tax Notes Fed. 499 (Oct. 25, 2021):

Tax Notes Federal (2020)In this article, Alarie and Yan examine Aspro [T.C. Memo. 2021-8 (Jan. 21, 2021)] and use machine-learning models to evaluate the strength of the appellant’s arguments in its appeal to the Eighth Circuit concerning the deductibility of management fees the business paid to its shareholders. ...

Conclusion
Blue J
 predicts with 74 percent confidence that the expenses in connection with the set of services provided to Aspro that are customary or usual will be found to be ordinary and necessary expenses. Blue J also predicts with 56 percent confidence that expenses in connection with the set of services that Aspro has failed to establish are customary or usual will be found not to be ordinary and necessary expenses.

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November 3, 2021 in New Cases, Scholarship, Tax, Tax Analysts, Tax Scholarship | Permalink

When $200k Is Taxed Like $10 Million: Latest Tax Plan Targets Less Affluent With Trusts

Lynnley Browning (Financial Planning), When $200k Is Taxed Like $10 Million: Latest Tax Plan Targets Less Affluent With Trusts:

Democrats have pivoted to the wallets of the working wealthy in their hunt for cash to fund a winnowing social spending agenda. Their latest proposals could lead to higher taxes on working professionals and business owners who earn good money but aren’t crazy-rich — a stark contrast to their earlier focus on billionaires.

After scrapping efforts aimed at the very richest Americans, lawmakers last week proposed new surcharges that would affect certain trusts and estates with annual income as little as over $200,000. While millionaires to the richest billionaires would also pay the new surcharges, their taxes would kick in at far greater thresholds while they’re alive.

“The people who are going to get hurt are not the really wealthy people doing sophisticated planning but the ordinary taxpayer,” including “mass affluent” individuals worth between $100,000 and $1 million and the would-be rich with small businesses, farms and properties, said Martin Shenkman, an estate planning lawyer based in Fort Lee, New Jersey. ...

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November 3, 2021 in Tax, Tax News | Permalink

Tuesday, November 2, 2021

Abreu & Greenstein Present Beyond Binary: The Normative Perfect Should Not Be The Enemy Of The Demonstrably Good Today At Georgetown

Alice Abreu (Temple) & Richard Greenstein (Temple; Google Scholar) present Beyond Binary: The Normative Perfect Should Not Be The Enemy Of The Demonstrably Good today at Georgetown as part of its Tax Law and Public Finance Workshop hosted by Brian Galle:

Abreu-greensteinIntroduction
Our normative claim in this Essay is straightforward: Not only should it not be “hornbook law that informal publications all the way up to revenue rulings are simply guides to taxpayers, and a taxpayer relies on them at his peril,” it should not be the law at all. If the IRS interprets the tax law, in writing, in a document intended to provide guidance to taxpayers or in a document addressed to a specific taxpayer, not only should the taxpayer be entitled to rely on what the IRS has said, but a court ought not dismiss it out of hand as having no bearing on its decision in the case. What is at stake is the legitimacy of an agency that needs legitimacy to promote taxpayer compliance.

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November 2, 2021 in Colloquia, Scholarship, Tax, Tax Workshops | Permalink

Taite Presents How The TCJA Fortified The Great Wealth Divide Today At UC-Hastings

Phyllis Taite (Oklahoma City) presents May the Odds Be Ever in Your Favor: How the Tax Cuts and Jobs Act Fortified the Great Wealth Divide, 48 Pepp. L. Rev. 1023 (2021), at UC-Hastings today as part of its Tax Speaker Series hosted by Heather Field and Manoj Viswanathan:

Phyllis-taiteHave Americans become so desensitized to inequality that we have morphed into a state of dystopia, and vast inequalities have become normalized? Discussions of dystopia typically describe acts of oppression, tyranny, inequality, and an overall undesirable societal state. Dystopia analysis also requires a hard look at societal values to determine ways to avoid adverse outcomes that vast inequalities may produce. By identifying the undesirable outcome, there is an opportunity to avoid or reverse it by enacting laws to combat inequalities.

The Hunger Games is a fictional tale of wealthy society members enjoying the rewards of high society while using the poor societal members for labor and entertainment. This illustration may also depict American realities. For example, Panem is described as a country consisting of twelve districts and the Capitol. The Capitol is the power center where the wealthiest reside. While decisions regarding the entire society are made by a select few, namely the President, those decisions primarily benefit the wealthy, and they intentionally contribute to a state of inequality and selective oppression.

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November 2, 2021 in Colloquia, Scholarship, Tax, Tax Workshops | Permalink

Death Of Doug Kahn (Michigan)

Kahn, Douglas Allen 11/7/1934 - 10/22/2021 Tallahassee, FL:

KahnDouglas Allen Kahn, age 86, passed away peacefully on October 22, 2021, at his home in Tallahassee, Florida.

Doug (as he was called by friends) grew up in Charlotte, North Carolina and was a graduate of the University of North Carolina and George Washington University Law School. After law school, he worked first at the Department of Justice and then at a small private firm in DC doing tax law work.

In 1964, Doug joined the faculty at the University of Michigan Law School. He taught there for 52 years until his retirement in 2016. Considered a giant in the field of tax law, he was a prolific scholar of both books and articles on a wide range of topics in tax. However, his first love was always his students. Although he visited at several outstanding law schools throughout his career, the University of Michigan held a special place in his heart. When explaining why he never left despite offers from other schools, he remarked that "I have never had any group of students that I have enjoyed as much as the ones that I've had here."

He was a gifted teacher in the classroom and inspired generations of students, many of whom became tax experts in their own right. More importantly, many of those students also became his lifelong friends.

He also loved (and loved to argue with) his colleagues and could often be found socializing with them in the faculty lounge or at a hosted dinner party with his wife, Mary. He was happy to discuss any topic, be it law, politics, the works of Noel Coward, the tax consequences of a triangular reorganization, or Michigan athletics, just to name a few.

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November 2, 2021 in Legal Education, Obituaries, Tax | Permalink

L.A. Times: California Tried To Save The Nation From The Misery Of Tax Filing — Then Intuit Stepped In

Following up on my previous posts (links below):  L.A. Times, California Tried to Save the Nation From the Misery of Tax Filing — Then Intuit Stepped In:

An unexpected letter from the state tax board is the kind of thing known to spike blood pressure. But the note that arrived in tens of thousands of Californians’ mailboxes in 2005 promised to ease anxiety.

The state proposed that these mostly modest-income taxpayers skip the aggravations of hunting for W-2s, the hassling with tax software, the lost evenings and weekends completing returns. Instead, the state could do it for them.

Californians participating in this test run of a “return free” tax system — a goal tax reformers had been chasing since President Reagan proposed it to the nation in 1985 — were so impressed that the thousands of comments that poured into a survey brought tears of joy to Joe Bankman, the Stanford law professor who guided the state’s effort, which was branded “ReadyReturn.”

“They were just so touching,” he said of the comments about ReadyReturn, which was designed as a voluntary offering targeted at taxpayers on the lower end of the income scale. “One said, ‘Finally the government is doing something to make my life better for a change.’ Almost all the comments had the words ‘thank you.’ People were thanking the government for taking something that drove them crazy and improving it.”

Yet not everyone was thankful. Tax software firms faced an existential threat if the federal government were to follow California’s lead. Over the next decade and a half they worked relentlessly — and successfully — to stymie the California project and prevent others like it. They persuaded the Internal Revenue Service for more than a decade to pledge in writing not to adopt California’s innovation or develop any other offerings that threatened their business model. ...

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November 2, 2021 in Tax, Tax News | Permalink

Monday, November 1, 2021

Nam Presents Just Taxation Of Crime: Should The Commission Of Crime Change One’s Tax Liability? Today At Loyola-L.A.

Jeesoo Nam (USC) presents Just Taxation of Crime: Should the Commission of Crime Change One’s Tax Liability? at Loyola-L.A. today as part of its Tax Policy Colloquium:

Jeesoo-namThe tax law treats criminals differently from non-criminals. Should it? Under the public policy doctrine, various tax deductions are disallowed if they are closely tied to criminal activity. Running a criminal enterprise is thus tax disadvantaged compared to running a non-criminal enterprise.

This Article considers a variety of possible explanations. (1) The tax disadvantage provides an incentive not to commit crime. (2) The tax disadvantage helps to bring deserved punishment to the criminal. (3) Criminals have given up their right not to be taxed. (4) Criminals have taken an unfair advantage and so must be stripped of that unfair advantage. (5) Taxpayers deserve to bear the full cost of their criminal activities with no help from others.

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November 1, 2021 in Colloquia, Scholarship, Tax, Tax Workshops | Permalink

Dean: Can The Most Powerful Global Tax Organization Shed Its Racist Ways?

The Nation:  Can the Most Powerful Global Tax Organization Shed Its Racist Ways?, by Steven Dean (Brooklyn):

The NationThe Organization for Economic Cooperation and Development insists it’s “inclusive,” but it’s still strong-arming countries in the Global South.

We tax lawyers take pride in the complexity of our handiwork. The website of the US Internal Revenue Service quotes no less than Albert Einstein for the proposition that “the hardest thing in the world to understand is the income tax.” We take comfort in the notion that its complexity shields tax law from the damage done by ordinary human foibles. How could rules so byzantine possibly be distorted by racism?

As much as we might like to imagine otherwise, however, tax laws do not operate like the laws of physics. Not even the most brilliant tax expert will discover a universal truth like E = mc. Law professor Dorothy Brown has shown that US “taxpayers bring their racial identities to their tax returns,” so that “being black is more likely to hurt and being white is more likely to help.”

In global tax policy, anti-Black racism continues to be exploited to craft a system that will favor the haves (generating hundreds of billions in revenues for the United States) at the expense of the have-nots (banning a tax that would generate hundreds of millions for countries like Kenya and Nigeria).

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November 1, 2021 in Tax, Tax News | Permalink

Lesson From The Tax Court: Whistleblower Died, But His Claim Survived

Camp (2021)The IRS has long been authorized to award informants a fee for information.  Informants unhappy with their awards, however, have not always had easy access to judicial review.  That changed in 2006 when Congress modified §7623 to permit taxpayers to ask the Tax Court to review “any determination regarding an award.” §7623(b)(4).  Tax Reform and Health Care Act of 2006, 120 Stat. 2922, 2959.  For a description of how the program works, see Lesson From The Tax Court: The Slippery Slope Of Tax Court Review, TaxProf Blog (Oct. 12, 2020).

Getting that Tax Court determination can take a long, long time.  That is because awards are first determined by the IRS Whistleblower Office (WBO) as a percentage of the proceeds collected from the taxpayer and collection can take a long, long time (hello CDP!).  At the end of all that time, if the whistleblower is not happy with the award, they can petition the Tax Court.  And obtaining a final decision from Tax Court can take a long, long, time as well.  Put those two long processes together and you are easily looking at 20 years from the first blow of the whistle to the final strike of the judicial gavel.

So what happens to the whistleblower’s claim if the whistleblower dies during that long, long time?  In Joseph A. Insinga v. Commissioner, 157 T.C. No. 8 (Oct. 27, 2021) (Judge Gustafson), we learn that a whistleblower’s Estate can continue to assert a claim for an award even after the whistleblower dies.  It's a seemingly simple lesson, but one that not as straightforward as you might expect, requiring the Tax Court to discern and apply common law doctrines.  Details below the fold. 

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November 1, 2021 in Bryan Camp, New Cases, Scholarship, Tax, Tax Practice And Procedure, Tax Scholarship | Permalink | Comments (0)

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November 1, 2021 in About This Blog, Legal Education, Tax | Permalink

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November 1, 2021 in About This Blog, Legal Education, Tax | Permalink

TaxProf Blog Weekend Roundup

Sunday, October 31, 2021

The Top Five New Tax Papers

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

  1. SSRN Logo (2018)[425 Downloads]  Mega-IRAs, Mega-401(k)s, and Other Mega-Retirement Accounts: Statement for the Record, by Daniel Hemel (Chicago; Google Scholar) & Steven Rosenthal (Tax Policy Center)
  2. [278 Downloads]  Has Cross-Border Arbitrage Met Its Match?, by Ruth Mason (Virginia; Google Scholar) & Pascal Saint-Amans (OECD) (reviewed by Young Ran (Christine) Kim (Utah; Google Scholar) here)
  3. [238 Downloads]  Closing Gaps in the Estate and Gift Tax Base, by Daniel Hemel (Chicago; Google Scholar) & Robert Lord (Americans for Tax Fairness)
  4. [187 Downloads]  The 2021 Compromise, by Ruth Mason (Virginia; Google Scholar)
  5. [152 Downloads]  Prepaid Death, by Victoria Haneman (Creighton; Google Scholar) (video here)

October 31, 2021 in Scholarship, Tax, Tax Scholarship, Top 5 Downloads | Permalink

Saturday, October 30, 2021

Avi-Yonah: U.S. International Tax Law

Reuven Avi-Yonah (Michigan; Google Scholar):

Slicing the Shadow: A Proposal for Updating U.S. International Taxation:

This article advances a proposal for market-based formulary apportionment.

International Tax Law: Status Quo, Trends And Perspectives:

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October 30, 2021 in Scholarship, Tax, Tax Scholarship | Permalink

Friday, October 29, 2021

Weekly SSRN Tax Article Review And Roundup: Sarkar Reviews Rationalizing The Arbitrary Foreign Tax Credit By Barry And Kleiman

This week, Shayak Sarkar (UC-Davis) reviews Jordan Barry (USC) & Ariel Jurow Kleiman (Loyola-L.A.; Google Scholar), Rationalizing the Arbitrary Foreign Tax Credit, 74 Tax L. Rev. __ (2022).

Sarkar-shayakIn a globalized world, taxpayers often answer to multiple sovereigns. The United States, with its unique worldwide taxation system, addresses this reality with the century-old Foreign Tax Credit (FTC).  In Rationalizing the Arbitrary Foreign Tax Credit, 74 Tax L. Rev. ___ (2022), Jordan Barry and Ariel Jurow Kleiman provide a far-reaching but precise perspective on this credit’s many limitations.

They begin by taking the Supreme Court to task for its questionable algebra in the primary case on the foreign tax credit, PPL v. Commissioner, 569 U.S. 329 (2013). o There, the Justices characterized the United Kingdom’s Windfall Tax as a creditable “pure” income tax, despite a similar tax that the regulations deemed noncreditable.  From this tenuous distinction (given the possibility of infinite algebraic manipulation), Barry and Kleiman revisit and rebuild the foundations of the FTC.

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October 29, 2021 in Scholarship, Tax, Tax Scholarship, Weekly SSRN Roundup, Weekly Tax Roundup | Permalink

Tax Policy In The Biden Administration

Next Week’s Tax Workshops

Next Week's Tax Workshops - linkedinMonday, November 1: Jeesoo Nam (USC) will present Just Taxation of Crime: Should the Commission of Crime Change One’s Tax Liability? as part of the Loyola-L.A. Tax Policy Colloquium. If you would like to attend, please RSVP here.

Tuesday, November 2: Phyllis Taite (Oklahoma City) will present May the Odds Be Ever in Your Favor: How the Tax Cuts and Jobs Act Fortified the Great Wealth Divide, 48 Pepp. L. Rev. 1023 (2021), as part of the UC-Hastings Tax Speaker Series. If you would like to attend, please contact tax@uchastings.edu

Tuesday, November 2: Alice Abreu (Temple) & Richard Greenstein (Temple; Google Scholar) will present Beyond Binary: The Normative Perfect Should Not Be The Enemy Of The Demonstrably Good as part of the Georgetown Tax Law and Public Finance Workshop. If you would like to attend, please contact Brian Galle

Wednesday, November 3: Tsilly Dagan (Oxford; Google Scholar) will present Cooperation and its Discontents (International Tax Policy: Between Competition and Cooperation (Cambridge University Press 2017)) as part of the UCI Tax Policy Colloquium. If you would like to attend, please contact taxpolicy@law.uci.edu

Wednesday, November 3: Shu-Yi Oei (Boston College; Google Scholar) will present World Tax Policy in the World Tax Polity? An Event History Analysis of OECD/G20 BEPS Inclusive Framework Membership, 47 Yale J. of Int'l L. __ (2022) as part of the Utah Faculty Workshop Series. If you would like to attend, please contact Young Ran (Christine) Kim.

Friday, November 5: Rick Pildes (NYU) will present Political Fragmentation in Democracies of the West as part of the Oxford-Virginia Legal Dialogs. If you would like to attend, please contact Tsilly Dagan or Ruth Mason.  

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October 29, 2021 in Colloquia, Legal Education, Scholarship, Tax, Tax Workshops | Permalink

ABA Tax Section Women's Tax Forum Hosts Women In Tax Law Student Outreach Panel

Women in Tax

ABA Tax Section Women's Tax Forum: Women In Tax Law Student Outreach Panel:

Join the Women in Tax Forum today at 3:00 pm ET (free registration here) for a panel as they provide insight into their careers, advice for how to pursue a career in tax, and share ideas on ways of making tax more inclusive.

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October 29, 2021 in ABA Tax Section, Legal Education, Tax | Permalink

Florida Hosts 17th Annual International Tax Symposium

The University of Florida Graduate Tax Program hosts its Seventeenth International Taxation Symposium virtually today:

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October 29, 2021 in Conferences, Scholarship, Tax, Tax Conferences, Tax Scholarship | Permalink

Thursday, October 28, 2021

Abreu & Greenstein Present Beyond Binary: The Normative Perfect Should Not Be The Enemy Of The Demonstrably Good Today At Indiana

Alice Abreu (Temple) & Richard Greenstein (Temple; Google Scholar) present Beyond Binary: The Normative Perfect Should Not Be The Enemy Of The Demonstrably Good today at Indiana as part of its Tax Policy Colloquium hosted by Leandra Lederman:

Abreu-greensteinIntroduction
Our normative claim in this Essay is straightforward: Not only should it not be “hornbook law that informal publications all the way up to revenue rulings are simply guides to taxpayers, and a taxpayer relies on them at his peril,” it should not be the law at all. If the IRS interprets the tax law, in writing, in a document intended to provide guidance to taxpayers or in a document addressed to a specific taxpayer, not only should the taxpayer be entitled to rely on what the IRS has said, but a court ought not dismiss it out of hand as having no bearing on its decision in the case. What is at stake is the legitimacy of an agency that needs legitimacy to promote taxpayer compliance.

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October 28, 2021 in Colloquia, Scholarship, Tax, Tax Workshops | Permalink

Abandoning Realization And The Transition Tax: Toward A Comprehensive Tax Base

Henry Ordower (Saint Louis), Abandoning Realization and the Transition Tax: Toward a Comprehensive Tax Base, 67 Buff. L. Rev. 1371 (2019):

The Tax Cuts and Jobs Act of 2017 imposed a tax, the “transition tax,” on as much as 31 years of undistributed, accumulated corporate income. This article focus on that transition tax as it evaluates the function and constitutionality of the tax and considers whether the transition tax might serve as a model for addressing the broader problem of deferred income in the United States. The article views the transition tax as joining the expatriation tax and other mark to market inclusion provisions in abandoning any pretext that there is continued vitality in the realization principle as something more compelling than any other longstanding and obsolescing tax principle. Recommending that Congress seize the Tax Cuts and Jobs Act moment and discard the general rule deferring the inclusion of gain in income through a realization requirement in favor of the annual marking to market of all the taxpayer’s property, the article models a general mark to market transition tax after the new transition tax on deferred foreign income.

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October 28, 2021 in Scholarship, Tax, Tax Scholarship | Permalink

NY Times: Tax Profs Rebecca Kysar And Itai Grinberg — 'Invaluable Partners' In Negotiating The Global Tax Deal

New York Times, Pastries and Persuasion: How a Global Tax Deal Got Done:

Kysar GrinbergTreasury Secretary Janet L. Yellen has relied on two tax experts, Rebecca Kysar and Itai Grinberg, calling them “invaluable” partners in navigating international negotiations and crafting the agreement’s fine print.

Nearly 140 countries agreed to adopt a global minimum tax of 15 percent and settled on terms to tax large, profitable multinational corporations based on where their goods and services are sold, rather than where they operate. The agreement aims to end corporate tax havens that have for decades siphoned tax revenue away from governments, leaving infrastructure and public health needs languishing.

“I think the world had come to understand that at the end of the day, all the countries trying to raise tax revenue are the losers, the companies are the winners, and the workers are the losers,” Ms. Yellen said in an interview on Tuesday. “No country really feels it can act independently to raise taxes because its firms will be uncompetitive, so the only way to do this is to hold hands and say enough is enough.”

The deal is a signature achievement for Ms. Yellen, who has spent the past eight months trying to persuade nations to agree on a global tax pact that sputtered during the Trump administration.

The push to reach a deal stemmed from the administration’s concerns about a global race to the bottom on corporate taxation, a phenomenon that was viewed as a big obstacle to Mr. Biden’s plan to increase corporate taxes domestically. ...

To get the deal over the finish line, Ms. Yellen relied on two tax experts, Itai Grinberg and Rebecca Kysar, whom she tapped in early February and describes as “invaluable” partners in navigating international negotiations.

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October 28, 2021 in Legal Education, Tax | Permalink

Wallace & Davis Submit Amicus Brief In South Carolina Amazon Sales Tax Case

Clint Wallace (South Carolina) & Tessa Davis (South Carolina), Brief of Amici Curiae in Support of Respondent:

Amazon (2021)In 2016, Amazon decided that it was not responsible for collecting and remitting South Carolina sales and use tax for sales it made to South Carolina residents through its website if those sales were supplied by third-party merchants. The South Carolina Department of Revenue (DOR) was promptly alerted to this practice by confused Amazon customers who noticed some of their Amazon purchases did not include sales tax, and after an examination the DOR determined Amazon owes tax liability plus penalties and interest of over $12 million for the first quarter of 2016. Amazon continued the practice at issue here into 2019. In the pending litigation, Amazon asserts that South Carolina's 2019 marketplace facilitator legislation, which followed the U.S. Supreme Court's Wayfair decision, was necessary to enable South Carolina to require Amazon to collect sales tax on all in-state transactions completed through its website, and that the DOR’s position that Amazon was responsible for collecting sales tax for all transactions on its website—including those supplied by third-party merchants--amounts to retroactive taxation.

Amazon misinterprets the relevant law and ignores the historical development of federal constitutional jurisprudence on nexus and South Carolina’s sales tax statutes. Further, Amazon’s assertions are contrary to sound tax policy and administration.

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October 28, 2021 in Tax | Permalink

Wednesday, October 27, 2021

Tax Policy Design With Low Interest Rates

Alan J. Auerbach (UC-Berkeley; Google Scholar) & William G. Gale (Tax Policy Center; Google Scholar), Tax Policy Design with Low Interest Rates, Tax Policy and the Economy (University of Chicago Press): 

Interest rates on government debt have fallen in many countries over the last several decades, with markets indicating that rates may stay low well into the future. It is by now well understood that sustained low interest rates can change the nature of long-run fiscal policy choices. In this paper, we examine a related issue: the implications of sustained low interest rates for the structure of tax policy. We show that low interest rates (a) reduce the differences between consumption and income taxes; (b) make wealth taxes less efficient relative to capital income taxes, at given rates of tax; (c) reduce the value of firm-level investment incentives, and (d) substantially raise the valuation of benefits of carbon abatement policies relative to their costs.

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October 27, 2021 in Scholarship, Tax, Tax Scholarship | Permalink

Hemel: A Wealth Tax Is A Good Idea — If We Had A Different Supreme Court

Washington Post op-ed:  A Wealth Tax Is A Good Idea — If We Had a Different Supreme Court, by Daniel Hemel (Chicago; Google Scholar):

Senate Democrats and the Biden administration are reportedly nearing a deal on a new “billionaire tax” to pay for the package of spending programs that is stalled in Congress. The tax — which would apply annually to the increase in the value of stocks and other assets held by taxpayers with a net worth of $1 billion or more — appears to be one of the few revenue-raising measures that Sen. Kyrsten Sinema (D-Ariz.), a key swing vote, is willing to countenance. But there is a potentially fatal flaw in the proposal that should cause progressives to view it as a Trojan horse: The current Supreme Court is quite likely to strike it down as unconstitutional.

To be sure, the constitutional case against the proposed billionaire tax isn’t open and shut. If I were on the Supreme Court, I would say that the tax is constitutional and ought to be upheld. But I’m not on the Supreme Court — and six conservative justices appointed by Republican presidents are. Faced with a genuinely unresolved legal question for which there are plausible arguments on both sides, those justices would not have a hard time saying that the billionaire tax flunks the constitutional test.

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October 27, 2021 in Tax, Tax News | Permalink

U.S. Tax Court's Tax Trailblazers: George Yin

U.S. Tax Court's Diversity & Inclusion Series, Tax Trailblazers: Mentoring the Next Generation:

Yin (2019)Please join the United States Tax Court for the next in its Tax Trailblazers Series. Judge Albert G. Lauber will interview George K. Yin about his path to—and success in—the field of tax law. Today at 7:00-8:15 PM EST (register here).

George K. Yin is the Edwin S. Cohen Distinguished Professor of Law and Taxation Emeritus at the University of Virginia School of Law. He attended the Bronx High School of Science in New York City, graduated from the University of Michigan’s honors program with a degree in mathematics and economics, earned his JD with honors from the National Law Center at George Washington University, and holds a Master’s Degree in Education from the University of Florida, Gainesville.

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October 27, 2021 in Legal Ed News, Legal Education, Tax, Tax News | Permalink

SSRN Tax Professor Rankings

SSRN Logo (2018)SSRN has updated its monthly ranking of 750 American and international law school faculties and 3,000 law professors by (among other things) the number of paper downloads from the SSRN database.  Here is the new list (through October 1, 2021) of the Top 25 U.S. Tax Professors in two of the SSRN categories: all-time downloads and recent downloads (within the past 12 months):

    All-Time     Recent
1 Reuven Avi-Yonah (Michigan)  203,021 1 Reuven Avi-Yonah (Michigan) 8,169
2 Dan Shaviro (NYU) 123,632 2 Lily Batchelder (NYU) 4,631
3 Lily Batchelder (NYU) 122,814 3 Daniel Hemel (Chicago) 4,249
4 Daniel Hemel (Chicago) 121,537 4 David Kamin (NYU) 4,208
5 David Gamage (Indiana-Bloom.) 119,865 5 Bridget Crawford (Pace) 4,106
6 Darien Shanske (UC-Davis) 112,892 6 Kim Clausing (UCLA)     3,968
7 David Kamin (NYU) 110,570 7 D. Dharmapala (Chicago) 3,483
8 Cliff Fleming (BYU)    106,449 8 Ruth Mason (Virginia) 3,301
9 Manoj Viswanathan (Hastings) 103,339 9 Richard Ainsworth (Boston U.) 2,700
10 Rebecca Kysar (Fordham) 102,432 10 David Gamage (Indiana-Bloom.) 2,506
11 Ari Glogower (Ohio State) 101,619 11 Zachary Liscow (Yale) 2,474
12 Michael Simkovic (USC) 45,935 12 Margaret Ryznar (Indiana-Indy)   2,377
13 D. Dharmapala (Chicago) 45,534 13 Robert Sitkoff (Harvard) 2,278
14 Paul Caron (Pepperdine) 38,734 14 Darien Shanske (UC-Davis)  2,229
15 Louis Kaplow (Harvard) 35,749 15 Dan Shaviro (NYU) 2,144
16 Richard Ainsworth (Boston U.) 33,420 16 Yariv Brauner (Florida) 2,141
17 Bridget Crawford (Pace) 29,103 17 Louis Kaplow (Harvard) 2,013
18 Ed Kleinbard (USC) 28,021 18 Hugh Ault (Boston College) 1,923
19 Vic Fleischer (UC-Irvine) 27,793 19 Brad Borden (Brooklyn) 1,780
20 Robert Sitkoff (Harvard) 27,160 20 Ari Glogower (Ohio State) 1,614
21 Brad Borden (Brooklyn) 26,944 21 Francine Lipman (UNLV) 1,482
22 Jim Hines (Michigan) 26,139 22 Diane Ring (Boston College) 1,467
23 Ted Seto (Loyola-L.A.) 25,211 22 Gregg Polsky (Georgia) 1,460
24 Katie Pratt (Loyola-L.A.) 24,769 24 Shu-Yi Oei (Boston College)  1,455
25 Ruth Mason (Virginia) 24,675 25 Michael Simkovic (USC) 1,411

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October 27, 2021 in Legal Education, Scholarship, Tax, Tax Prof Rankings, Tax Scholarship | Permalink

Tax Policy Center Hosts Virtual Conference Today On U.S. Energy Tax Policy And Climate Change

Us-energy-tax-policy-and-climate-change
The Tax Policy Center hosts a virtual conference on US Energy Tax Policy And Climate Change today at 10:30 a.m. - 12:00 p.m. EDT (registration): 

The Biden administration has committed to reducing US greenhouse gas emissions to half of 2005 levels by 2030. To help meet that goal, the Democratic fiscal strategy relies heavily on increased infrastructure spending financed by higher corporate and individual income taxes. This proposed policy focuses on subsidizing alternative energy sources and conservation rather than relying on carbon pricing. What are the pros and cons of this approach, and is the strategy adequate to achieve targeted emissions reductions?

On October 27, ahead of the 2021 United Nations Climate Change Conference in Glasgow (October 31 to November 12), the Urban-Brookings Tax Policy Center and the Brookings Institution Center on Regulation and Markets will bring together climate and tax policy experts to examine recent proposals for US energy tax policy. Catherine Wolfram, deputy assistant secretary for climate and energy economics at the US Department of the Treasury, will share her perspective on the Biden administration’s climate strategy. Following her keynote, an expert panel consisting of Gilbert Metcalf, Carole Nakhle, Sanjay Patnaik, and Kurt Van Dender and moderated by Thornton Matheson will further discuss the United States’ approach to energy tax policy.

Speakers:

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October 27, 2021 in Conferences, Tax, Tax Conferences | Permalink

Tuesday, October 26, 2021

Viswanathan Presents Retheorizing Progressive Taxation Today At NYU

Manoj Viswanathan (UC-Hastings) presents Retheorizing Progressive Taxation at NYU today as part of its Tax Policy and Public Finance Colloquium hosted by Daniel Shaviro:

Manoj-viswanathanTax progressivity is undeniably central to both the detailed analytics of tax policy and the rhetorical arguments commonly used in public discourse. Yet there are surprisingly inconsistent and inaccurate uses of this seemingly objective term. By theorizing progressivity’s constitutive elements and identifying its shortcomings, this Article offers a novel taxonomy of how progressivity is assessed and why contradictory assessments are common.

This Article argues that, as a theoretical matter, accurately characterizing tax provisions as progressive (or regressive) requires assessing their burdens beyond simply the tax payments remitted. By failing to account for effects such as economic incidence and inefficiency costs, traditional progressivity analyses are incomplete. Relatedly, since the spending side of the budget process is functionally indistinguishable from taxation, accurate progressivity analyses must also consider where tax revenues are spent. This Article suggests that earmarked tax assessments—taxes allocated to specific purposes—could overcome some of these challenges.

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October 26, 2021 in Colloquia, Scholarship, Tax, Tax Workshops | Permalink

Manoli Presents The Effects Of EITC Correspondence Audits On Low-Income Earners Today At Georgetown

Day Manoli (Georgetown; Google Scholar) presents The Effects of EITC Correspondence Audits on Low-Income Earners (with John Guyton, Kara Leibel, Mark Payne, Brenda Schafer (IRS) & Ankur Patel (US Treasury)) at Georgetown today as part of its Tax Law and Public Finance Workshop hosted by Brian Galle:

Day-manoliThis paper studies the impacts of IRS EITC correspondence (mail) audits on taxpayer behaviors. The analysis documents widespread disallowance of EITC benefits due to nonresponse and insufficient response. Relative to similar nonaudited taxpayers, audited taxpayers over the years after being audited are less likely to claim EITC benefits and file tax returns, and qualifying children claimed on their returns are more likely to be claimed by other taxpayers. Audited taxpayers also appear less likely to have third-party and self-reported wages, with larger decreases for self-reported wages and for wage levels in the maximum EITC benefit region.

Conclusion
This paper presents an empirical analysis of the impacts of EITC correspondence audits on taxpayers. The primary goal of EITC correspondence audits is revenue protection by stopping erroneous EITC claims. Do EITC correspondence audits achieve this goal?

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October 26, 2021 in Colloquia, Scholarship, Tax, Tax Workshops | Permalink

Deeks & Hayashi: Tax Law As Foreign Policy

Ashley Deeks (Virginia; Google Scholar) & Andrew T. Hayashi (Virginia; Google Scholar), Tax Law as Foreign Policy:

The use of economic statecraft is at a high-water mark. The United States uses sanctions, tariffs, and import and export controls more than ever before. But these tools have problems. They impose financial costs on domestic interests. They can induce retaliation by target states. And overuse of these tools could drive the United States from its central position in the global financial and economic system, undermining the effectiveness of U.S. economic statecraft in the long run. But there is a different and underappreciated tool that could perform valuable foreign policy work: tax law. We argue that tax law holds promise to advance U.S. foreign policy interests and that it is especially important to deploy tax tools now. Tax law has distinctive features that make it both a partial substitute and a partial complement to other tools of economic coercion, which means that it can extend the influence of U.S. economic power while reducing the risk of overusing other economic tools.

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October 26, 2021 in Scholarship, Tax, Tax Scholarship | Permalink

The Hidden Ways The Ultrarich Pass Wealth To Their Heirs Tax-Free

Bloomberg Businessweek, The Hidden Ways the Ultrarich Pass Wealth to Their Heirs Tax-Free:

An inside look at how Nike founder Phil Knight is giving a fortune to his family while avoiding billions in U.S. taxes.

Sitting in the bleachers by the University of Oregon’s running track, Nike Inc. founder Philip Knight offered the sort of lofty promise many other super rich Americans have made over the past decade. The bulk of his money, he told CBS News that day in 2016, would be given away—eventually. “By the time the lives of my children and their kids run out, I will have given most of it to charity,” he said. What Knight didn’t mention was that, for years, he’d been using a range of legal techniques to ensure his heirs keep control of most of his assets and profit from them in the process, quietly transferring vast piles of money in a textbook example of how the rich avoid taxes.

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October 26, 2021 in Tax, Tax News | Permalink

Monday, October 25, 2021

Taite Presents The Impact Of Tax Code Bias On The Racial Wealth Gap Today At Loyola-L.A.

Phyllis Taite (Oklahoma City) presents Inequality by Unnatural Selection: The Impact of Tax Code Bias on the Racial Wealth Gap at Loyola-L.A. today as part of its Tax Policy Colloquium:

Phyllis-taiteOne of the underlying principles of social Darwinism is the belief that people are inherently strong or weak and those strengths and weaknesses determine their fate in life through the process of natural selection.  Wealthy taxpayers support the ideals of social Darwinism because it maintains the class divide and strengthens the racial divide through oppressive acts, particularly toward Black people.   Others likely support the principles based on their perceptions that everyone would start at the same position and competitors would face similar obstacles.  Based on the belief that the strongest will, and should survive, it is easy to promote the ideals of social Darwinism because fair competition should yield a just outcome.  Even when two people are planted in the same location, their backgrounds will likely determine their respective readiness for competition.  America has a history of deeply rooted racial oppression that built the foundation for one community and destroyed the foundation of others.  It is inherently unfair to place obstacles in the path of one group, and not the other, and expect the same level of performance.

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October 25, 2021 in Colloquia, Scholarship, Tax, Tax Workshops | Permalink

Soled: Workplace Transformation And Its Tax Compliance Implications

Jay A. Soled (Rutgers; Google Scholar), Workplace Transformation and Its Tax Compliance Implications, 66 Vill. L. Rev. 575 (2021):

Due to technological advances and the COVID-19 pandemic, taxpayers are increasingly utilizing their homes as a focal point from which to conduct their business affairs. On the one hand, the nation should applaud this workplace transformation insofar as it may enhance job performance and efficiency, reduce product cost and overhead, and improve work–life balance. On the other hand, this transformation process may open the door to rampant tax abuse as taxpayers alone or in collusion with their employers seek to transform home usage into a tax shelter refuge.

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October 25, 2021 in Scholarship, Tax, Tax Scholarship | Permalink

Lesson From The Tax Court: Of Distributive Shares And The CDP Mashup

Camp (2021)Sometimes our biggest problems are self-created. In Taryn L. Dodd v. Commissioner, T.C. Memo. 2021-118 (Oct. 5, 2021) (Judge Lauber), the taxpayer was attempting to repudiate a tax liability she had self-reported but had not paid.  Her multi-year slog through Collection Due Process (CDP) involved three trips to the Tax Court.  Only in the third trip do we learn this basic lesson about passthrough entities: a partner must report as income her distributive share of partnership income, whether or not that share is actually received.  So now Ms. Dodd not only has her 2013 liability to pay off, she also has all the additions to tax and interest that continues to accrue.

We also learn a second lesson, a lesson about the structure of CDP.  The difference between Appeals Officers (AOs) and Settlement Officers (SOs) is more than just the title.  Each has different subject matter competencies but only SO's conduct CDP hearings, which are generally all about collection issues.  Sometimes, however, taxpayers can raise substantive tax issues, creating a CDP mashup.  When a taxpayer uses CDP to contest the merits of a liability, the lesson here is to be sure to ask the SO to confer with an AO.  Otherwise you get stuck like Ms. Dodd.  Details below the fold.   

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October 25, 2021 in Bryan Camp, New Cases, Scholarship, Tax, Tax Practice And Procedure, Tax Scholarship | Permalink | Comments (1)

TaxProf Blog Weekend Roundup

Sunday, October 24, 2021

The Top Five New Tax Papers

There is a bit of movement in this week's list of the Top 5 Recent Tax Paper Downloads, with a new paper debuting on the list at #5:

  1. SSRN Logo (2018) [589 Downloads]  Federal Tax Procedure (2021 Practitioner Ed.), by John Townsend (Houston)
  2. [413 Downloads]  Mega-IRAs, Mega-401(k)s, and Other Mega-Retirement Accounts: Statement for the Record, by Daniel Hemel (Chicago; Google Scholar) & Steven Rosenthal (Tax Policy Center)
  3. [266 Downloads]  Has Cross-Border Arbitrage Met Its Match?, by Ruth Mason (Virginia; Google Scholar) & Pascal Saint-Amans (OECD) (reviewed by Young Ran (Christine) Kim (Utah; Google Scholar) here)
  4. [230 Downloads]  Closing Gaps in the Estate and Gift Tax Base, by Daniel Hemel (Chicago; Google Scholar) & Robert Lord (Americans for Tax Fairness)
  5. [181 Downloads]  The Inequity of Informal Guidance, by Joshua D. Blank (UC-Irvine; Google Scholar) & Leigh Osofsky (North Carolina; Google Scholar) (reviewed by Sloan Speck (Colorado) here)

October 24, 2021 in Scholarship, Tax, Tax Scholarship, Top 5 Downloads | Permalink

Saturday, October 23, 2021

This Week's Ten Most Popular TaxProf Blog Posts

Break Into Tax: Tax Papers Unlocked — Victoria Haneman

Tax Papers Unlocked offers a "micro-workshop," breaking down current tax scholarship. This video, the fifth in this series, features Prof. Victoria Haneman from Creighton Law School. The featured paper is Prepaid Death, 59 Harv. J. on Legis. ___ (2022).

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October 23, 2021 in Legal Education, Tax | Permalink