Tax Law Commons^™

Analyzing The Schizoid Agency: Achieving The Proper Balance In Enforcing The Internal Revenue Code, Richard Lavoie

Akron Tax Journal

The purpose of this article is to examine the considerations that should influence the development of appropriate controversy position standards for the Service. In this regard it is crucial to understand the inherent duality in the Service's role. On one hand it is charged with enforcing the Internal Revenue Code (the "Code"), and as a result it attempts to maximize the collection of all legally owed taxes. On the other, the Service is charged with maintaining the efficient and fair operation of the tax system as a whole. The United States federal income tax system is premised on voluntary taxpayer …

Treble Damages In National Health Service Corps Contracts, Public Policy, And Hawronsky V. Commissioner, Richard C.E. Beck

Akron Tax Journal

The main thesis of this article is that Hawronsky v. Commissioner is erroneous and the deduction should be allowed because I.R.C. § 162(f) does not apply. The taxpayer did pay a "fine or similar penalty to the government," but he did not pay it "for the violation of any law," which is a necessary element of I.R.C. § 162(f). The taxpayer merely breached his NHSC contract. This crucial issue went completely unnoticed by the court and the parties. Because I.R.C. § 162(f) does not apply, the treble damages are (except for the original tax-free scholarship itself) a deductible business expense …

Repairing Facade Easements: Is This The Gift That Launched A Thousand Deductions?, Martha Jordan

Akron Tax Journal

This article explores the impact of such a covenant on the characterization for tax purposes of expenditures to maintain the façade. In particular this article explores the following question: Given that the charitable easement holder owns a nonpossessory interest in the façade, which imposes on the charity an obligation to repair and maintain the façade and entitles it to benefit from increases in the value of the façade, is a donor's assumption of the charity's obligation to repair the façade an additional charitable contribution to the charity? If a donor gratuitously makes improvements to property owned outright by a charity, …

Tax Treatment Of Damages Awarded For Age Discrimination, Gerald A. Madek

Akron Tax Journal

Since the inception of anti-discrimination laws, the degree to which victims should be compensated has been a subject of debate. Legislators have always been acutely aware of competing pressures in this area. Civil rights advocates have persistently lobbied for generous compensatory awards for emotional distress, while businesses have lobbied just as persistently against these awards which threaten their ability to do business profitably. The result of these competing pressures has been a set of anti-discrimination statutes offering inconsistent remedies.

The Interpretation Of Taxing Statutes: The English Perspective, Nicola Preston

Akron Tax Journal

Revenue law is entirely a creature of statute. The maxim that there is "no equity in tax" is embodied in the Bill of Rights 1689 which provided for "no taxation without legislation." This principle was of major political importance in 1689 because prior to the English Civil War 1642-49, Charles I had attempted to raise funds without the aid of Parliament, by inter alia, levying a window tax' and imposing the payment of ship money nationwide. The authors of the Bill of Rights were keen to ensure that the monarch would be unable to exercise such absolute power in the …

Deductibility Of Mandatory Donations To Religious Organizations Under The Internal Revenue Code, Sandra Machan

Akron Tax Journal

Church of Scientology members discovered their "inner selves" through "auditing" I and studied Church doctrines and tenets during "training" sessions. To participate in the auditing and training sessions, members paid mandatory or fixed fees to the Church.

In a recent United States Supreme Court Case, the Court considered whether the mandatory donations made to the Church of Scientology constituted a charitable deduction. The Court determined that the members made the mandatory donations with the expectation of a commensurate return benefit (i.e., a quid pro quo). and disallowed the charitable contribution deductions.

Although the Court's decision to disallow the deductions affected …

Passive Activity Losses In Light Of The New Section 469 Temporary Regulations, Hans-Dieter Sprohge

Akron Tax Journal

The Tax Reform Act of 1986 created Internal Revenue Code (I.R.C.) Section 469.' The purpose of this Section is to prevent certain taxpayers from sheltering income with non-cash losses from businesses in which the taxpayers do not participate. The new Regulations are intended to provide taxpayers with guidance on compliance with the rules of Section 469. Taxpayer compliance is difficult for two reasons: First, the Regulations do not address some of the key Section 469 concepts and rules. The Section 469 concepts and rules omitted by the first set of Section 469 Regulations will be discussed in future regulations. The …