Paul L. Caron
Dean




Sunday, December 6, 2020

Rossotti, Sarin & Summers: A Comprehensive Approach To Shrinking The Tax Gap

Charles O. Rossotti, Natasha Sarin (Pennsylvania) & Lawrence H. Summers (Harvard), Shrinking the Tax Gap: A Comprehensive Approach, 169 Tax Notes Fed. 1467 (Nov. 30, 2020):

Over the course of the past year, we have written independently about the substantial revenue potential of a significant investment in tax compliance. In several articles, we have estimated that overhauling the IRS — by increasing effectively allocated examination resources, filling the holes in information reporting of income that cannot now be cross-checked against third-party reports, and investing in technology so the IRS is better able to leverage the information it collects — can raise well over $1 trillion.

Table 2

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December 6, 2020 in Scholarship, Tax, Tax Analysts, Tax Scholarship | Permalink | Comments (0)

Thursday, December 3, 2020

Mazur & Thimmesch: Closing The State Tax Digital Divide — A Consumption Tax Agenda

Orly Mazur (SMU) & Adam Thimmesch (Nebraska), Closing the Digital Divide in State Taxation: A Consumption Tax Agenda, 98 State Tax Notes ___ (Nov. 30, 2020):

Tax Notes StateIn this installment of Academic Perspectives on SALT, Mazur and Thimmesch argue that while taxing digital goods and services presents practical and legal challenges for states, it is still a worthwhile measure to address the pandemic and related budget problems.

Conclusion
Expanding the consumption tax base to digital consumption is a relatively easy way for states to raise essential tax revenue as they cope with the pandemic and its accompanying economic downturn. Although a digital tax is an imperfect solution and requires overcoming some practical and legal issues, implementing one on consumption is better than the alternative of maintaining the status quo. Under the current patchwork of state laws, digital activities either escape taxation or are only partially and inconsistently taxed. This complex system can place onerous burdens on suppliers, results in governments losing out on a growing revenue stream, contributes to discriminatory and multiple taxation, and does not reflect the economic realities of the digital era. Given the current situation and the tough times ahead, it is worthwhile for states to implement digital taxes on consumption now.

The digital tax debate is far from over, and expanding the consumption tax base is just the first step. The wide range of attention being paid to DSTs and their various forms should not detract from this basic point: A broad, neutral, and strong state tax base is one that includes digital transactions.

December 3, 2020 in Scholarship, Tax, Tax Analysts, Tax Scholarship | Permalink | Comments (0)

Wednesday, December 2, 2020

Tax Notes Issues Call For Papers

Tax Notes Editors' Wish List:

Tax Notes (2021)In the past year, our quarterly call for entries has been answered by academics, lawyers, researchers, policymakers, and analysts from all over the world. We will always review any tax-related article, but we recognize this call can be daunting with so many areas of tax to explore. While each of our magazines, Tax Notes Federal, State, and International share contributor guidelines, the content can vary greatly. ...

Tax Notes Federal: Editor in Chief, Ariel Greenblum
A good length for Tax Notes Federal articles is between 4,000 and 14,000 words. The Tax Notes Federal team is looking for articles on the following topics: ...

Tax Notes State: Editor in Chief, Jéanne Rauch-Zender
A good length for Tax Notes State articles is anything that meets the 1,500-word minimum. The Tax Notes State team is looking for articles on the following topics: ...

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December 2, 2020 in Tax, Tax Analysts, Tax Scholarship | Permalink | Comments (0)

Tuesday, December 1, 2020

2019 Tax Journal Rankings: Tax Notes #1, Florida Tax Review #2

Here are the Washington & Lee tax law review rankings of the six major tax journals:

  • Columbia Journal of Tax Law ("Columbia")
  • Florida Tax Review ("Florida")
  • Tax Law Review ("NYU")
  • Tax Lawyer ("ABA")
  • Tax Notes
  • Virginia Tax Review ("Virginia")

The rankings are based on citations to articles published in 2015-2019 (methodology):

 

Combined

Impact

Journals

Cases

Currency

1. Tax Notes

15.16

0.02

406

5

0.03

2. Florida

14.30

0.75

188

1

1.45

3. NYU

12.29

0.65

161

0

1.16

4. Virginia

8.52

0.46

108

2

0.61

5. Columbia

6.98

0.45

69

0

0.53

6. ABA

5.82

0.16

115

4

0.23

As I have previously noted, Tax Notes fares poorly in the Impact Factor category (citations/number of articles published) because W&L apparently counts as "articles" all of the advance sheet material in Tax Notes. Tax Notes is #1 by a wide margin in the number of citations in law reviews, with more than double the citations of its nearest competitor.

December 1, 2020 in Law Review Rankings, Law School Rankings, Legal Ed Rankings, Legal Education, Tax, Tax Analysts, Tax Rankings, Tax Scholarship, W&L Tax Journal Rankings | Permalink | Comments (0)

Tuesday, November 17, 2020

Clausing: 5 Lessons On Profit Shifting From U.S. Country-By-Country Data

Kimberly A. Clausing (UCLA), 5 Lessons on Profit Shifting From U.S. Country-by-Country Data, 169 Tax Notes Fed. 925 (Nov. 9, 2020):

Tax Notes Federal (2020)One of the signature achievements of the base erosion and profit-shifting project is the collection of multinational enterprises’ country-by-country reporting data for government use in tax enforcement efforts. In late 2019 the United States became the first country to release a complete set of those data, in aggregate form, for 2017.

This article analyzes those data, demonstrating five important lessons for scholars investigating international corporate tax avoidance.

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November 17, 2020 in Scholarship, Tax, Tax Analysts | Permalink | Comments (0)

Saturday, November 14, 2020

Thompson: Congress And Treasury's Federal Income Tax COVID-19 Initiatives

Samuel C. Thompson, Jr. (Penn State), Congress and Treasury's Federal Income Tax COVID-19 Initiatives, 167 Tax Notes Fed. 2067 (June 22, 2020):

Tax Notes FederalIn this article, Thompson principally focuses on the business tax provisions of the CARES Act.

The article is based on a chapter in a published special supplement (titled The Deal Lawyer’s Weapons in the War on COVID- 19) to Thompson’s Mergers, Acquisitions and Tender Offers: Law and Strategies — Corporate, Securities, Taxation, Antitrust, Cross Border (updated semi-annually).

November 14, 2020 in Scholarship, Tax, Tax Analysts, Tax Scholarship | Permalink | Comments (0)

Thursday, November 12, 2020

Shanske & Gamage: The Case For State Borrowing As A Response To The Pandemic

Darien Shanske (UC-Davis) & David Gamage (Indiana), The Case for State Borrowing as a Response to the Current Crises, 97 Tax Notes State 1137 (Sept. 14, 2020): 

Tax Notes StateThis essay explains how and why U.S. state governments can and should borrow funds in the absence of sufficient federal aid during the COVID-19 pandemic. ...

Introduction
The coronavirus pandemic is a national emergency that requires a national response. Asking states to absorb the budgetary losses caused by the pandemic while they are tasked with providing essential frontline services is comparable to asking states during World War II to pay for the landing in Normandy.

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November 12, 2020 in Scholarship, Tax, Tax Analysts, Tax Scholarship | Permalink | Comments (0)

Thursday, November 5, 2020

Lipman: Rep. John Lewis Making 'Good Trouble' In Georgia

Francine J. Lipman (UNLV), Rep. John Lewis Making 'Good Trouble' in Georgia, 168 Tax Notes Fed. 681 (July 27, 2020):

Tax Notes Federal“Get in good trouble, necessary trouble, and help redeem the soul of America.” Rep. John Robert Lewis (1940-2020)

It seems fitting that the civil rights movement was born in the district that John Robert Lewis represented in Congress for 34 years until his death on July 17. In the 1960s, Atlanta boasted a vibrant Black professional middle-class that became a cultural catalyst for civil rights activities. Reverend Dr. Martin Luther King Jr.’s Ebenezer Baptist Church, the headquarters of Southern Christian Leadership Conference (SCLC), the Student Nonviolent Coordinating Committee (SNCC), and several historically Black colleges and universities were located there. Dr. King, who inspired, motivated, and mentored Rep. Lewis from an early age was also Atlanta-born.

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November 5, 2020 in Legal Education, Scholarship, Tax, Tax Analysts, Tax Scholarship | Permalink | Comments (0)

Wednesday, November 4, 2020

Johnson: Repeal Opportunity Zones

Calvin H. Johnson (Texas), Repeal Opportunity Zones, 169 Tax Notes Fed. 625 (Oct. 26, 2020):

Tax Notes FederalIn this article, Johnson argues that Opportunity Zone incentives do the poor more harm than good because they destroy affordable housing and increase tenant rents. Even if Congress is unwilling to enact negative income tax or housing vouchers, which would do the most to help tackle poverty, it needs to stop Opportunity Zones now. The first rule of the medical profession is “first, do no harm.” That rule can be generalized and applied to everything. Simple repeal of the Opportunity Zones would at least stop the harm they do.

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November 4, 2020 in Scholarship, Tax, Tax Analysts, Tax Scholarship | Permalink | Comments (2)

Tuesday, November 3, 2020

Avi-Yonah & Mazzoni: Biden’s International Tax Plan

Reuven S. Avi-Yonah (Michigan) & Gianluca Mazzoni (S.J.D. 2020, Michigan), Biden’s International Tax Plan, 169 Tax Notes Fed. 593 (Oct. 26, 2020):

Tax Notes FederalIn this article, Avi-Yonah and Mazzoni review the tax plan of Democratic presidential candidate Joe Biden and vice presidential candidate Kamala Harris, focusing on proposed changes to the U.S. international tax system.

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November 3, 2020 in Scholarship, Tax, Tax Analysts, Tax Scholarship | Permalink | Comments (0)

Wednesday, September 30, 2020

Shay: Turning To The Government (For PPP Money) In Time Of Need

Stephen E. Shay (Boston College), Turning to the Government (for PPP Money) in Time of Need, 168 Tax Notes Fed. 841 (Aug. 3, 2020):

Tax Notes FederalThis article examines the financial relationship between Americans for Tax Reform (ATR) and Paycheck Protection Program (PPP) borrower Americans for Tax Reform Foundation (ATRF). ATRF is an apparently insolvent “zombie” foundation heavily indebted to ATR. ATR indirectly benefits from the ATRF PPP loan through the support for ATR employees who simultaneously are ATRF employees, though ATR was itself ineligible for a PPP loan under the CARES Act.

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September 30, 2020 in Scholarship, Tax, Tax Analysts, Tax Scholarship | Permalink | Comments (0)

Tuesday, September 29, 2020

Aprill & Brunson: The University, Ideology, And Tax Exemption

Ellen P. Aprill (Loyola-L.A.) & Samuel D. Brunson (Loyola-Chicago), The University, Ideology, and Tax Exemption, 168 Tax Notes Fed. 1037 (Aug. 10, 2020):

Tax Notes FederalIn this article, Brunson and Aprill argue that the tax law and other considerations undermine President Trump’s position that academic institutions can lose their tax-exempt status as a consequence of indoctrinating their students with liberal values.

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September 29, 2020 in Scholarship, Tax, Tax Analysts, Tax Scholarship | Permalink | Comments (1)

The Supreme Court’s 2019 Term In Tax

Jasper L. Cummings, Jr. (Alston & Bird, Raleigh, NC), The Supreme Court’s 2019 Term in Tax, 168 Tax Notes Fed. 2175 (Sept. 21, 2020):

Tax Notes FederalIn this ninth annual review of Supreme Court opinions involving tax matters, Cummings notes that the Court has mostly abandoned standard legal decisions to focus on political themes, which he identifies in several decisions. ...

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September 29, 2020 in New Cases, Scholarship, Tax, Tax Analysts, Tax Scholarship | Permalink | Comments (0)

Thursday, September 24, 2020

Zelenak: Examining The Internal Revenue Code For Disparate Racial Impacts

Lawrence Zelenak (Duke), Examining the Internal Revenue Code for Disparate Racial Impacts, 168 Tax Notes Fed. 1807 (Sept. 7, 2020):

Tax Notes FederalIn this article, Zelenak considers how a legislature committed to racial justice should respond to a convincing statistical demonstration that a particular provision of the Internal Revenue Code has disparate racial impacts. He says there are several steps between a demonstration that a provision (for example, the charitable deduction) disproportionately benefits white taxpayers in nominal terms, and the conclusion that it should be repealed or reformed to eliminate the disparate impact. He argues it is necessary (1) to establish a normative baseline from which the current provision departs, (2) to determine the race-based distribution of the ultimate benefits and burdens of the provision (as contrasted with the provision’s nominal impacts), and (3) to determine that a focus on the provision (rather than a broader or narrower focus) is at an appropriate level of analytical granularity. He concludes that the most important use of evidence of disparate racial impacts of tax provisions will almost certainly be as an argument for repealing or reforming a provision that constitutes bad tax policy even apart from its racial effects.

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September 24, 2020 in Scholarship, Tax, Tax Analysts, Tax Scholarship | Permalink | Comments (1)

Friday, July 7, 2017

Tax Reform Is Hard (#TRIH)

With the looming deadline on both the debt ceiling and the tax reconciliation bill (not to be confused with the ACHA reconciliation instructions), taxes and, hopefully, tax reform are moving to the top of the legislative agenda.   The rhetoric of tax reform is heating up.  Yesterday Paul Ryan tweeted:

Screen Shot 2017-07-06 at 9.43.05 AM

Speaker Ryan is not the only member of GOP leadership discussing tax reform.  News last week broke that Steve Bannon wants to raise the top bracket rate to a number that has ”a 4 in front of it”. So, the GOP continues to a least float the idea of substantive tax reform measures.  

I don't want to get too carried away about tax reform. Despite my optimism for "reform season," others does not seem to have the same zeal. First there is no "plan" to discuss.  Second, the House Appropriations Bill (which I wrote about at Surly) does not seem to be too keen on the chances of real reform measures.  For example, the Appropriations Bill addresses estate tax regulations and ACA penalties.  If the estate tax and the ACA are on the chopping block, then why worry about the measures in the Appropriations Bill?

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July 7, 2017 in Congressional News, Political News, Tax, Tax Analysts, Tax Policy in the Trump Administration, Tax Profs | Permalink | Comments (1)

Thursday, February 16, 2017

Woman Sues Howard Stern For Airing Her Phone Call With IRS Agent Discussing Her Taxes

HIRSRadio Ink, “Hello Howard, This Is the IRS …”:

In a fact pattern worthy of a law school exam question, an IRS employee calls the Howard Stern Show and is put on hold. The IRS employee on a different line, apparently either using fat fingers on a conference call feature, or on a speakerphone, takes a call from a taxpayer while on hold with Stern. The Howard Stern Show then picks up, hears the IRS employee talking with the taxpayer and puts the nearly hour-long conversation on the air live. The law school question is … in how many ways might the Howard Stern Show be civilly and criminally liable?

The question will likely be answered by the courts. The taxpayer has sued both the IRS for violations of the Federal Tort Claims Act and unlawful disclosure of tax returns and personal information, the Howard Stern Production Company, and Stern individually, for negligence, invasion of privacy, and the intentional infliction of emotional distress.

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February 16, 2017 in IRS News, Tax Analysts | Permalink | Comments (11)

Monday, April 25, 2016

2016 Outstanding Women In Tax

Tax Notes LogoTax Notes, 2016 Outstanding Women in Tax:

Several months ago, we decided to honor some of today's outstanding women in tax. We asked Tax Notes readers and other Tax Analysts stakeholders to nominate women from the public and private sectors who have had a significant impact on tax practice and policy.

We expected dozens of nominations; we received more than 300.

We should have expected such a large response. There are many noteworthy women in the tax world. We're fortunate to be working closely with some of them, including Tax Notes contributing editor Lee A. Sheppard and Tax Analysts board members Pamela Olson and Deborah Schenck (all of whom were nominated multiple times but who were ineligible because of their affiliation with Tax Analysts).

Selecting only 10 out of such a distinguished list was a daunting task. So we assembled a committee of editors, reporters, and executives who reviewed and carefully examined each of the more than 300 nominees before coming to the difficult decision.

This year's honorees include government trailblazers, rising stars, and women who have been the distinguished standard-bearers in the tax field for years. Those being recognized include the leader of a key congressional tax committee, a distinguished jurist, an IRS official, scholars from around the world, and accomplished partners in major accounting and law firms.

Individually and collectively they influence tax administration and policy globally every day. They inspire, educate, and empower people in their areas of tax.

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April 25, 2016 in Tax, Tax Analysts | Permalink | Comments (0)

Friday, December 18, 2015

Tax Analysts Annual Student Writing Competition

Tax Analysys Logo (2013)Tax Analysts Annual Student Writing Competition:

Tax Analysts is pleased to announce the opening of its annual student writing competition for 2016. This global competition enables students who win to publish a paper in Tax Notes, State Tax Notes, or Tax Notes International and receive a 12-month online subscription to all these weekly magazines after graduation.

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December 18, 2015 in Legal Education, Tax, Tax Analysts | Permalink | Comments (0)

Monday, February 16, 2015

Yin: Goodbye to Tax Notes?

Yin (2015)TaxProf Blog op-ed:  Goodbye to Tax Notes?, by George K. Yin (Virginia):    

In Goodbye to Tax Notes, Michael Graetz bids adieu to one of my favorite sources of tax information because of dramatic changes in their subscription practices. He states that “there are many alternative sources of information and new outlets to publish the kinds of short articles that Tax Notes contains.” He mentions SSRN, ITPF, Paul Caron’s blog, and other possibilities. While I and my school are not happy with the subscription changes, I am not sure there are good alternatives available and would be happy to learn otherwise.

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February 16, 2015 in Scholarship, Tax, Tax Analysts | Permalink | Comments (0)

Wednesday, February 11, 2015

Graetz: Goodbye to Tax Notes

Graetz (2015)TaxProf Blog op-ed:  Goodbye to Tax Notes, by Michael J. Graetz (Columbia):

Today, I received the following email from the Columbia Law librarian announcing a new policy of Tax Analysts:

Tax Analysts is in the process of eliminating their complementary professorial accounts. They have presented us with the following terms, and they will maintain your access for the rest of this work week.

In this case, the alternatives are the library paying $8,500 a year for an broad account shared by the library with individual direct access limited to three professors, or you paying $780 a year for your individual access to Tax Notes and Tax Notes International .... They will not sell access to the “Lawref” e-dress because that is a shared account.....

When Tom Field started a nonprofit publisher and public interest law firm in 1969, he could not have imagined the success Tax Analysts would enjoy. It has for nearly a half century provided a unique and invaluable service to the tax community. I have long relied on it myself for timely information and have had many students use its resources for their papers and publications, even though much of its most useful content is in the public domain. And I have frequently published there and speak often with its correspondents. But with this latest turn, Tax Analysts may be losing sight of its mission. According to its Form 990 for the fiscal year ending June 30, 2013 (which is the most recent readily available) Tax Analysts had over $23 million in revenues from its publications, cash and securities on hand exceeding $40 million and more than $60 million in total assets. Its revenue exceeded its expenses by nearly $4 million. It is difficult to believe that this change in policy is prompted by financial necessity. And the timing is especially unfortunate for many law schools around the country.

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February 11, 2015 in Legal Education, Tax, Tax Analysts | Permalink | Comments (6)

Tuesday, January 20, 2015

Watson: SFRs and Problems in Tax Administration and Enforcement

Tax Analysys Logo (2013)Camilla E. Watson (Georgia), SFRs and Problems in Tax Administration and Enforcement, 146 Tax Notes 363 (Jan. 20, 2015):

When the IRS prepares substitutes for returns (SFRs) for a married couple, it prepares separate returns for each of the parties and considers them married filing separately. It will then send separate notices of deficiency to the parties. If only one of the spouses petitions the Tax Court, this could be problematic for both, even if the court’s decision is favorable to the petitioner. The problems identified in this report, while narrow in scope, highlight broader issues in the administration of the tax system. This report proposes reforms to correct the problems in the SFR process, but these proposals apply more broadly to address general problems in the administration of the tax system.

January 20, 2015 in Scholarship, Tax, Tax Analysts | Permalink | Comments (0)

Tuesday, January 13, 2015

Johnson: The Circular 230 Regulations May Be Invalid

Tax Analysys Logo (2013) Steve Johnson (Florida State), How Far Does Circular 230 Exceed Treasury's Statutory Authority?, 146 Tax Notes 221 (Jan. 12, 2015):

In this report, Johnson discusses the future of Circular 230 and argues that if the approach of recent cases is confirmed by litigation and if Congress chooses not to act, significant portions of the circular may be at risk of invalidation.

January 13, 2015 in Scholarship, Tax, Tax Analysts | Permalink | Comments (1)

Friday, January 9, 2015

Kamin: How to Tax the Rich

Tax Analysys Logo (2013) David Kamin (NYU),  How to Tax the Rich, 146 Tax Notes 119 (Jan. 5, 2015):

In this article, Kamin reviews options for increasing tax liabilities for the richest Americans. He concludes that several options that have received considerable attention and support are not viable as a practical matter -- taking into account amounts of revenue raised and administrative considerations. Those options include taxing capital gains as ordinary income, annual wealth taxes, and broad mark-to-market accounting. Kamin identifies more viable options, including substantially expanding transfer taxes, increasing the tax rate on ordinary income, and taxing -- at least partially -- unrealized gains at death or gift, which may be the most promising.

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January 9, 2015 in Scholarship, Tax, Tax Analysts | Permalink | Comments (2)

Tuesday, December 23, 2014

The Top 10 Tax Presidents

Tax Analysys Logo (2013) Joseph J. Thorndike (Tax Analysts), The Top 10 Tax Presidents, 145 Tax Notes 1303 (Dec. 22, 2014):

[I]n the service of inspiration -- and perhaps consternation -- I've compiled a list of influential tax presidents. It bears repeating: This is not a roster of good tax presidents. It's an assessment of presidential influence on the development of the federal tax system, whether for good or bad. Indeed, given the politicization of tax policy, it's likely that several of these presidents will be judged as both heroes and villains, depending on who's doing the judging.

  1. Ronald Reagan
  2. Franklin Roosevelt
  3. Woodrow Wilson
  4. George Washington
  5. Thomans Jefferson
  6. George W. Bush
  7. Calvin Coolidge
  8. William Howard Taft
  9. John F. Kennedy
  10. George H.W. Bush

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December 23, 2014 in Tax, Tax Analysts | Permalink | Comments (1)

Wednesday, December 17, 2014

Shaviro: The Case for 1986-Style Corporate Tax Reform

Tax Analysys Logo (2013)Daniel N. Shaviro (NYU), Evaluating the Case for 1986-Style Corporate Tax Reform, 145 Tax Notes 1267 (Dec. 15, 2014):

Shaviro explores the relationship between taxing corporate income at the entity level and the difficulties in evaluating whether a corporate rate cut would be desirable without significant structural changes.

December 17, 2014 in Scholarship, Tax, Tax Analysts | Permalink | Comments (0)

Tuesday, December 2, 2014

Driessen: Corporate Tax Fate May Hinge on Modeling Omission

Tax Analysys Logo (2013)Patrick Driessen (former revenue estimator, Joint Committee on Taxation and Treasury Department), Corporate Tax Fate May Hinge on Modeling Omission, 145 Tax Notes 1043 (Dec. 1, 2014):

By omitting corporate income, traditional distribution models overstate the U.S. corporate tax rate and overall tax progressivity. The prevailing capital gains realization approach could be replaced by an inclusive corporate income method that would correctly show corporate equity owners as more lightly taxed than capital gains realization models indicate. That replacement would accord with how the individual tax is modeled for distribution as well as with results from corporate tax studies conducted outside the distribution context. Augmenting corporate income in distribution models would also enable proper reflection of proposals, such as corporate integration, and provide a better perspective on how much corporate tax is borne by labor.

(Hat Tip: David Cay Johnston.)

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

Wednesday, November 26, 2014

Hoenig: What's Wrong With Trafficking in NOLs?

Tax Analysys Logo (2013)Mark Hoenig (Weil, Gotshal & Manges, New York), Trafficking in Net Operating Losses: What's So Bad?, 145 Tax Notes 919 (Nov. 24, 2014):

Hoenig examines the almost century-long history of Congress’s efforts to allow tax losses and limit their transfer. He explores the rationale for those efforts, assesses the system now in place, and asks whether an alternative set of rules might better serve policy and the economy.

November 26, 2014 in Scholarship, Tax, Tax Analysts | Permalink | Comments (0)

Friday, November 21, 2014

Viard: Moving Away From the Realization Principle

Tax Analysys Logo (2013)Alan D. Viard (American Enterprise Institute), Moving Away From the Realization Principle, 145 Tax Notes 847 (Nov. 17, 2014):

Viard describes the realization principle’s flaws and the federal tax system’s incremental movement toward mark-to-market taxation.

November 21, 2014 in Scholarship, Tax, Tax Analysts | Permalink | Comments (0)

Monday, November 10, 2014

Graetz & Warren: Unlocking Business Tax Reform

Tax Analysys Logo (2013)Michael J. Graetz (Columbia) & Alvin C. Warren Jr. (Harvard), Unlocking Business Tax Reform, 145 Tax Notes 707 (Nov. 10, 2014):

In this article, Graetz and Warren explain why integration should be on today’s tax reform agenda and discuss how that change could be structured.

In conjunction with this article, Tax Analysts is republishing as an eBook, now available on Amazon, the 1998 volume of Integration of the U.S. Corporate and Individual Income Taxes: The Treasury Department and American Law Institute Reports:

Integration 2Business tax reform now seems stymied despite important proposals from prominent political leaders in both parties, including the president and the chairs of the House and Senate tax writing committees. Each represents a serious effort to reform business taxation. But those proposals have failed to advance in either the House or Senate.

Integration of corporate and shareholder taxes offers a straightforward approach that could help resolve many of the most difficult issues and provide the key to unlocking business tax reform. The general idea is to convert at least part of the corporate tax into a withholding tax that would be credited against individual shareholder taxes due on dividends.

The United States has long had what is called a classical income tax system, under which income is taxed to corporations and shareholders as distinct taxpayers. As a result, taxable income earned by a corporation and then distributed as a dividend may be taxed twice, once to the corporation and once to the shareholder on receipt of a dividend. In contrast, earnings on corporate debt are not taxed at the corporate level because, unlike dividends, interest is deductible. And businesses taxed as partnerships can benefit from lower total taxes than those taxed as corporations. This incoherent combination of results creates undesirable distortions in corporate and investor behavior.

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November 10, 2014 in Scholarship, Tax, Tax Analysts | Permalink | Comments (0)

Monday, November 3, 2014

Sullivan: The Tax Aspects of Immigration Reform

Tax Analysys Logo (2013)Martin A. Sullivan (Tax Analysts), The Tax Aspects of Immigration Reform, 145 Tax Notes 463 (Nov. 3, 2014):

Against all odds, Obama, who would love to include immigration reform as part of his legacy, and Republican leaders in Congress, who want their party to be competitive in the 2016 presidential election and to show they can get things done, are likely to make a serious attempt at putting together a bipartisan, bicameral deal on immigration in 2015. The estimates presented in this article are based on numerous assumptions about which there is considerable uncertainty, so they can hardly be taken as gospel. But the central finding, concerning the large difference in the revenue effects between legal and unauthorized immigration, is difficult to dispute given the differences in average income levels and the fact that many currently unauthorized immigrants already pay tax. As Congress struggles to fix our broken immigration system, it is likely to consider many variations of S.744 and its components. Those proposals that allow a large influx of new legal immigrants — particularly immigrants with high skills—will significantly increase tax revenue. Providing new legal status for current unauthorized immigrants will not.

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November 3, 2014 in Scholarship, Tax, Tax Analysts | Permalink | Comments (0)

Wednesday, October 29, 2014

Rosenzweig: Revisiting the Law of Moses' Rod -- The Case of Inversions

Tax Analysys Logo (2013)Adam Rosenzweig (Washington University), Revisiting the Law of Moses' Rod: The Case of Inversions, 145 Tax Notes 429 (Oct. 27, 2014):

This article revisits Marty Ginsburg’s law of Moses’ rod in the context of inversions, in particular how proposed revisions to the antiinversion rules could be used to justify new, or even more aggressive, expatriation strategies. While not advocating that any taxpayer or other party pursue specific strategies or that they are ‘‘good’’ from a tax policy standpoint, the goal in examining potential inversion strategies even in the face of anti-inversion rules is to help find ways to incorporate antiabuse provisions into the larger structural goals of the income tax.

October 29, 2014 in Scholarship, Tax, Tax Analysts | Permalink | Comments (0)

Monday, October 20, 2014

Gupta: Will eBay's Spinoff of PayPal Result in an Inversion?

Tax Analysys Logo (2013)Ajay Gupta (Tax Analysts), Will PayPal's Spinoff End in an Inversion -- or Two?, 76 Tax Notes Int'l 188 (Oct. 20, 2014):

Ajay Gupta discusses how Treasury's anti-inversion guidance [Notice 2014-52] could affect PayPal's announced spinoff from parent company eBay.

October 20, 2014 in Tax, Tax Analysts | Permalink | Comments (0)

Tuesday, October 14, 2014

Thimmesch: The Tax Hangover -- Trailing Nexus

Tax Analysys Logo (2013)Adam B. Thimmesch (Nebraska), Evaluating the Tax Hangover: Trailing Nexus, 74 State Tax Notes 83 (Oct. 13, 2014):

In this article, which is adapted from a longer law review article [The Tax Hangover: Trailing Nexus, 33 Va. Tax Rev. 497 (2014)], Thimmesch examines the concept of trailing nexus. He argues that the concept is consistent with the physical presence standard and proposes an economic latency approach, which he asserts is consistent with both constitutional principles and economic reality.

October 14, 2014 in Scholarship, Tax, Tax Analysts | Permalink | Comments (0)

Monday, October 13, 2014

Christians: It's Time to Fix FBAR

Tax Analysys Logo (2013)Allison Christians (McGill), Paperwork and Punishment: It's Time to Fix FBAR, 76 Tax Notes Int'l 147 (Oct. 13, 2014):

Allison Christians argues that the U.S. Foreign Bank Account Report regime is excessive and offers suggestions to narrow its scope and ease compliance burdens.

October 13, 2014 in Scholarship, Tax, Tax Analysts | Permalink | Comments (0)

Saturday, October 11, 2014

Ryan: Valuation Lessons From Estate of Adell

Tax Analysys Logo (2013)Kerry A. Ryan (St. Louis), Valuation Lessons From Estate of Adell, 144 Tax Notes 1455 (Sept. 22, 2014):

In Estate of Adell [T.C. Memo. 2014-155], the Tax Court determined that the correct value of a decedent’s interest in a closely held corporation was the figure reported on the original estate tax return. The court rejected alternative values as either using the incorrect valuation method or failing to account for the significant value of a key employee’s personal goodwill. 

October 11, 2014 in Scholarship, Tax, Tax Analysts | Permalink | Comments (0)

Monday, October 6, 2014

Blanchard: Notice 2014-52 and the New Anti-Inversion Rules

Tax Analysys Logo (2013) Kimberly S. Blanchard (Weil, Gotshal & Manges, New York), Extensive New Anti-Inversion Rules Issued, 145 Tax Notes 89 (Oct. 6, 2014):

Blanchard summarizes the provisions of anti-inversion guidance Notice 2014-52 and suggests some practical tips for what it might mean in the future.

October 6, 2014 in Scholarship, Tax, Tax Analysts | Permalink | Comments (0)

Monday, September 15, 2014

Blanchard Takes Issue With Kleinbard's Call for Anti-Inversion Legislation

Tax Analysys Logo (2013) Kimberly S. Blanchard (Weil, Gotshal & Manges, New York), Blanchard Argues Against More Anti-Inversion Rules, 144 Tax Notes 1335 (Sept. 15, 2014):

I write to comment on Edward D. Kleinbard's recent article ['Competitiveness' Has Nothing to Do With It, 144 Tax Notes 1055 (Sept. 1, 2014)] on the subject of "inversions." Kleinbard is, as usual, erudite and funny, but all the erudition and humor in the universe cannot hide the hole in his argument.

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September 15, 2014 in Scholarship, Tax, Tax Analysts | Permalink | Comments (0)

Thursday, September 11, 2014

State Tax Haven Laws

Tax Analysys Logo (2013) Daniel M. Dixon, Michael A. Jacobs, Michael I. Lurie & Jack Trachtenberg (all of Reed Smith), To Blacklist or Not to Blacklist -- The Trend Toward State Tax Haven Laws, 73 State Tax Notes 635 (Sept. 8, 2014):

In this article, the authors discuss tax havens and how states are cracking down on multinational corporations that are perceived as abusing the tax laws of tax haven nations. The authors argue that both of the tax haven tests used by states -- the factor test and tax haven blacklist -- have constitutional issues.

September 11, 2014 in Scholarship, Tax, Tax Analysts | Permalink | Comments (0)

Wednesday, September 10, 2014

ABA Tax Section Releases 2014-15 Law Student Tax Challenge Problem

Lstc-14thThe ABA Tax Section has released the J.D. Problem (rules; entry form) and LL.M. Problem (rules; entry form) for the 14th Annual Law Student Tax Challenge (2014-2015):

An alternative to traditional moot court competitions, the Law Student Tax Challenge asks two-person teams of students to solve a cutting-edge and complex business problem that might arise in everyday tax practice. Teams are initially evaluated on two criteria: a memorandum to a senior partner and a letter to a client explaining the result. Based on the written work product, six teams from the J.D. Division and four teams from the LL.M. Division receive a free trip (including airfare and accommodations for two nights) to the Section of Taxation 2015 Midyear Meeting, January 29-31 in Houston, TX, where each team will defend its submission before a panel of judges consisting of the country’s top tax practitioners and government officials, including tax court judges. The competition is a great way for law students to showcase their knowledge in a real-world setting and gain valuable exposure to the tax law community. On average, more than 60 teams compete in the J.D. Division and more than 40 teams compete in the LL .M. Division. For examples of the "Best Written" winners from past competitions, please click here.

IMPORTANT DATES

  1. Submission Deadline: November 7, 2014
  2. Notification of Semifinalists and Finalists: December 19, 2014
  3. Semifinal and Final Oral Defense Rounds: January 30, 2015 in Houston, TX

September 10, 2014 in ABA Tax Section, Legal Education, Tax, Tax Analysts, Teaching | Permalink | Comments (0)

Tuesday, September 9, 2014

COD Income and Student Loan Debt Forgiveness

Tax Analysys Logo (2013)Kiran Sheffrin, Trapped by Forgiveness: Taxing COD Income, 144 Tax Notes 1191 (Sept. 8, 2014):

In this article, Sheffrin discusses the student loan debt crisis and problems with the current proposals for reform. She identifies two ways that the tax treatment of forgiven student loans can be used to achieve policy goals: partial recognition of cancellation of indebtedness income based on a household’s ability to pay, and spreading the payment of amounts owed over a fixed number of years.

September 9, 2014 in Scholarship, Tax, Tax Analysts | Permalink | Comments (1)

Wednesday, September 3, 2014

Yin: Stopping Corporate Inversions Sensibly and Legally

Tax Analysys Logo (2013)George K. Yin (Virginia), Stopping Corporate Inversions Sensibly and Legally, 144 Tax Notes 1087 (Sept. 1, 2014):

A recent article by Mindy Herzfeld, What Can Treasury Do About Inversions?, 144 Tax Notes 895 (Aug. 25, 2014), overlooks a simple and sensible alternative available to the Treasury Department that is not of questionable legality. Treasury could submit a proposal to Congress to redefine a corporation's "residence" for tax purposes -- which determines whether the entire panoply of U.S. tax rules applies to it -- based on the location of the enterprise's principal customer base.

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September 3, 2014 in Scholarship, Tax, Tax Analysts | Permalink | Comments (1)

Tuesday, September 2, 2014

Kennedy: DOMA Implications for Employee Benefit Plans

Tax Analysys Logo (2013)Kathryn J. Kennedy (John Marshall), DOMA Implications for Employee Benefit Plans: Round 2, 144 Tax Notes 947 (Aug. 25, 2014):

This report updates Kennedy’s earlier Tax Notes article on employee benefits guidance issued by the IRS and the Department of Labor soon after the Supreme Court’s 2013 decisions in Hollingsworth v. Perry and United States v. Windsor on the constitutionality of the Defense of Marriage Act. The IRS has since issued additional helpful guidance, and there has been a groundswell of federal and state litigation contesting states’ same-sex marriage bans. In this report, Kennedy discusses the current state of affairs and highlights many of the questions not addressed by the IRS and Labor Department guidance. She argues that without additional regulatory guidance, which appears unlikely, those questions will have to be resolved through future litigation.

September 2, 2014 in Scholarship, Structuring a Tax Workshop Series, Tax Analysts | Permalink | Comments (0)

Tuesday, August 19, 2014

Johnston: Kinder Morgan’s Evolving Tax Strategy

Tax Analysys Logo (2013)David Cay Johnston (Syracuse), Kinder Morgan’s Evolving Tax Strategy, 144 Tax Notes 881 (Aug. 18, 2014):

Johnston looks at Kinder Morgan’s recent announcement that it would be folding two master limited partnerships into a C corporation holding company.

August 19, 2014 in Scholarship, Tax, Tax Analysts | Permalink | Comments (0)

Friday, August 15, 2014

Johnson: Repealing the Tax Subsidies to Qualified Retirement Plans

Tax Analysys Logo (2013)Calvin H. Johnson (Texas),  Amazing Waste: Tax Subsidies To Qualified Retirement Plans, 144 Tax Notes 727 (Aug. 11, 2014):

The proposal would repeal the tax advantages given to qualified retirement plans. Qualified plans are ineffective or counterproductive for their given rationales, which makes them a rich source of revenue when the United States needs money. Johnson argues that qualified plans provide a safety net where there is little need for it and provide no safety net where it is needed. Qualified plans are said to improve the value of a dollar by moving it from high-income working years to low-income retirement years. However, the tax advantages are distributed under a reverse-Robin Hood pattern to high income groups (many with soaring salaries) and by negating the tax brackets. That distribution of benefits can be expected to reduce the utility of a dollar. Qualified plans are said to be an incentive for savings, but when government cost and deficits are considered, the plans reduce net national savings. It would be cost free and effective to increase retirement savings by mandating savings for retirement or by imposing default rules without a tax subsidy.

August 15, 2014 in Scholarship, Tax, Tax Analysts | Permalink | Comments (1)

Tuesday, August 12, 2014

Zelinsky: Wynne and the Double Taxation of Dual Residents

Tax Analysys Logo (2013)Edward A. Zelinsky (Cardozo), Wynne and the Double Taxation of Dual Residents, 73 State Tax Notes 259 (July 28, 2014):

Zelinsky discusses Maryland State Comptroller of the Treasury v. Wynne [431 Md. 147 (2013), cert. granted (May 27, 2014)]. He writes that the U.S. Supreme Court should decide the case narrowly and in a way that does not prevent it from ruling later that the dormant commerce clause requires tax credits to abate the double taxation of individuals who are residents of two or more states but lack the ability to vote in a state that taxes them as residents on their worldwide income.

August 12, 2014 in Scholarship, Tax, Tax Analysts | Permalink | Comments (0)

Monday, August 11, 2014

Schler: International Mismatches on Hybrid Instruments

Tax Analysys Logo (2013)Michael L. Schler (Cravath, New York), OECD vs. D/NI: International Mismatches on Hybrid Instruments, 75 Tax Notes Int'l 485 (Aug. 11, 2014):

Michael L. Schler discusses technical and policy issues, as well as unexpected results, that arise under the OECD's proposals to eliminate mismatches of income and deduction resulting from hybrid instruments.

August 11, 2014 in Scholarship, Tax, Tax Analysts | Permalink | Comments (0)

Thursday, August 7, 2014

Taylor: Closing the Gap Between Private Letter Rulings and Regulations

Tax Analysys Logo (2013)Willard Taylor (Sullivan & Cromwell & NYU), Closing the Gap Between Private Letter Rulings and Regulations, 144 Tax Notes 597 (Aug. 4, 2014):

In this article, Taylor summarizes and comments on proposed regulations that would redefine real property for real estate investment trusts, and he argues that there should be more (and earlier) guidance on these and similar issues to close the gap between private letter rulings and published guidance affecting REITs and publicly traded partnerships in the natural resources sector.

August 7, 2014 in Scholarship, Tax, Tax Analysts | Permalink | Comments (0)

Wednesday, August 6, 2014

Christians: Regulating Return Preparers -- A Global Problem for the IRS

Tax Analysys Logo (2013)Allison Christians (McGill), Regulating Return Preparers: A Global Problem for the IRS, 75 Tax Notes Int'l 391 (Aug. 4, 2014):

The IRS is in charge of a juggernaut of a tax system, the likes of which there truly is no equal in the world. And as all too often appears to be the case, in the enthusiasm to improve the functioning of this regime, its authors and enforcers appear to have forgotten that this unique system is perfectly global in reach, thanks to its unique inclusion of citizens and others with legal residence status no matter where in the world they live.

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August 6, 2014 in Scholarship, Tax, Tax Analysts | Permalink | Comments (0)

Monday, July 28, 2014

Shay: Take the Tax Juice Out of Corporate Expatriations

Tax Analysys Logo (2013)Stephen E. Shay (Harvard), Mr. Secretary, Take the Tax Juice Out of Corporate Expatriations, 144 Tax Notes 473 (July 28, 2014):

Shay describes the principal tax benefits companies seek from expatriating, and he outlines regulatory actions that can be taken without legislative action to materially reduce the tax incentive to expatriate.

Bloomberg, Lew Can Use Tax Rule to Slow Inversions, Ex-Official Says:

The U.S. Treasury Department should use immediate stopgap regulations to make offshore transactions known as corporate inversions less lucrative, said the department’s former top international tax lawyer.

The administration can unilaterally limit inverted companies from taking interest deductions in the U.S. or from accessing their foreign cash without paying U.S. taxes, Stephen Shay said in an interview and in an article published today in Tax Notes.

July 28, 2014 in Scholarship, Tax, Tax Analysts | Permalink | Comments (0)

Saturday, July 19, 2014

Blair-Stanek: Intellectual Property Law Solutions to Transfer Pricing Abuse

Tax Analysys Logo (2013)Andrew Blair-Stanek (Maryland), IP Law Solutions to Transfer Pricing Abuse, 143 Tax Notes 175 (June 30, 2014):

The article discusses a new way to attack transfer-pricing abuse: change intellectual property (IP) law.

July 19, 2014 in Scholarship, Tax, Tax Analysts | Permalink | Comments (0)