Considering "Citizenship Taxation": In Defense Of Fatca, 2017 University of Utah, SJ Quinney College of Law
Considering "Citizenship Taxation": In Defense Of Fatca, Young Ran Kim
Utah Law Faculty Scholarship
Inspired by Ruth Mason’s recent article, Citizenship Taxation, which reaches a general conclusion against citizenship taxation, this Article also questions citizen taxation under the same normative framework, but with a particular focus on efficiency and administrability, and takes a much less critical stance towards the merits of citizenship taxation. First, neither citizenship taxation nor residence-based taxation can completely account for the differences between residents’ and nonresidents’ ability to pay taxes under the fairness argument. Second, the efficiency argument, that citizenship taxation may distort both Americans’ and non-Americans’ citizenship decisions, is not convincing. The American citizenship renunciation rate is not ...
Consumer-Based Use Tax Enforcement And Taxpayer Compliance, 2017 Indiana University Maurer School of Law
Consumer-Based Use Tax Enforcement And Taxpayer Compliance, David Gamage, Adam Thimmesch, Darien Shanske
Articles by Maurer Faculty
This essay explains how current state government approaches to use-tax enforcement undermine tax morale and taxpayer compliance. This essay further argues that these threats to tax morale and taxpayer compliance will become even more severe as many states are moving toward adopting notice and reporting statutes for their sales and use taxes.
The Great Etf Tax Swindle: The Taxation Of In-Kind Redemptions, 2017 Fordham University School of Law
The Great Etf Tax Swindle: The Taxation Of In-Kind Redemptions, Jeffrey Colon
Since the repeal of the General Utilities doctrine over 30 years ago, corporations must recognize gain when distributing appreciated property to their shareholders. Regulated investment companies (RICs), which generally must be organized as domestic corporations, are exempt from this rule when distributing property in kind to a redeeming shareholder. In-kind redemptions, while rare for mutual funds, are a fundamental feature of exchange-traded funds (ETFs). Because fund managers decide which securities to distribute, they distribute assets with unrealized gains and thereby significantly reduce the future tax burdens of their current and future shareholders. Many ETFs have morphed into investment vehicles that ...
Achieving American Retirement Prosperity By Changing Americans' Thinking About Retirement, 2017 University of Colorado Law School
Achieving American Retirement Prosperity By Changing Americans' Thinking About Retirement, Peter H. Huang
There are many decisions that Americans have to make about retirement before, at, and after retirement. For example, Americans have to decide when to start saving for retirement, how much to save, how to invest those savings, when to retire, when to claim social security, and how to take required minimum distributions from 401(k) plans or Individual Retirement Accounts. Different things can go wrong at each of these decisions for different reasons. Many Americans, for various reasons, including insufficient energy, money, motivation, time, and understanding, do no retirement planning. Some Americans do some retirement planning, yet worry they are ...
The Expatriation Tax, Deferrals, Mark To Market, The Macomber Conundrum And Doubtful Constitutionality, 2017 Saint Louis University School of Law
The Expatriation Tax, Deferrals, Mark To Market, The Macomber Conundrum And Doubtful Constitutionality, Henry M. Ordower
All Faculty Scholarship
Taxpayers shift income offshore with lawful devices like operating through a foreign corporation. Taxpayers have enhanced the amount of that income lodged outside the U.S. with transfer pricing strategies. Andtaxpayers have evaded U.S. taxation of their worldwide income by secreting assets and income in tax haven, bank secrecy jurisdictions. Statutes, regulations and litigation seek to limit use of offshore opportunities toavoid the U.S. income tax. Penalties for taxpayers and their foreign hosts have been enacted to prevent thehiding of assets offshore. This article reviews many of those techniques and statutory or regulatory responses in the context of ...
Putting The Substance Back Into The Economic Substance Doctrine, 2017 Brooklyn Law School
Putting The Substance Back Into The Economic Substance Doctrine, Nicholas Giordano
Brooklyn Journal of Corporate, Financial & Commercial Law
The foreign tax credit, which saves U.S. taxpayers from paying both foreign and domestic income taxes on the same income, is critical to facilitating global commerce. However, as savvy taxpayers discover increasingly complicated ways to abuse the foreign tax credit regime through the structuring of business transactions, courts have become increasingly skeptical of the validity of those transactions. Using the economic substance doctrine, a common law doctrine codified in 2010 at I.R.C. § 7701(o), courts will disallow tax benefits stemming from a transaction that is not profitable absent its tax benefits, and which the taxpayer had no ...
Tax Treatment Of A Marijuana Business, 2017 University of Michigan Law School
Tax Treatment Of A Marijuana Business, Douglas A. Kahn, Howard Bromberg
Currently, twenty-eight states and the District of Columbia allow the use of marijuana for medical purposes and permit the conduct of a business marketing of marijuana for that purpose. Eight of those states and the District of Columbia permit the recreational use of marijuana. There is reason to believe that more states will decriminalize the marketing of marijuana. However, marijuana is listed in Schedule 1 of the federal Controlled Substances Act of 1970 (CSA) which makes it illegal under federal law to manufacture or distribute marijuana even when it is legal to do so under local state law. In a ...
Taxing Social Impact Bonds, 2017 Southern Methodist University, Dedman School of Law
Taxing Social Impact Bonds, Orly Mazur
An exciting new way to fund social services has recently emerged. This new financing mechanism, called a social impact bond (SIB), has the potential to help us tackle some of our nation’s most challenging social problems. Broadly speaking, a SIB is a type of “pay for success” contract where private investors provide the upfront capital to finance a social program, but only recoup their investment and realize returns if the program is successful. Like any new financing instrument, SIBs create numerous regulatory challenges that have not yet been addressed. One unresolved issue is the tax implications of a SIB ...
Reforming The Tax Incentives For Higher Education, 2017 University of Georgia School of Law
Reforming The Tax Incentives For Higher Education, Camilla E. Watson
Federal spending on higher education has long been controversial, primarily because it has grown exponentially since the 1950s but it has produced a system which many regard as too expensive and grossly inefficient. The soaring costs are placing higher education beyond the reach of many Americans, and of those who enter college, less than half complete their degrees. Particular criticism has been directed toward the education tax incentives, enacted mostly in the late 1990s, which shifted federalfunding for higher education from direct benefits to students in the form of grants, loans and work-study programs to indirect benefits through the tax ...
The Importance Of A Participatory Charitable Giving Incentive, 2017 The Catholic University of America, Columbus School of Law
The Importance Of A Participatory Charitable Giving Incentive, Roger Colinvaux
Scholarly Articles and Other Contributions
Leading tax reform proposals contemplate a charitable deduction claimed by just five percent of taxpayers. Such a limited deduction would fatally undermine the foundations of a giving incentive that has fostered an altruistic and pluralistic society through its broad-based participation and would seriously harm the charitable sector. Section 501(c)(3) would recede in importance as setting the standard for a public benefit organization. More gifts would go to private benefit and political organizations. The article argues that a charitable deduction for the few should be rejected. Instead, Congress should consider expanding the charitable giving incentive by extending it to ...
A Consumer Protection Rationale For Regulation Of Tax Return Preparers, 2017 Alexander Blewett III School of Law at the University of Montana
A Consumer Protection Rationale For Regulation Of Tax Return Preparers, Pippa Browde
Faculty Law Review Articles
Of the 150 million tax returns filed each year, approximately fifty-six percent are prepared with the help ofa paid preparer. Although state-licensed lawyers and certified public accountants may prepare tax returns for clients, the vast majority ofpaid tax return preparers are completely unregulated. For low-income taxpayers who are eligible for refundable tax credits, these unregulated tax return preparers do more than just fill out tax returns. Return preparers who serve low-income taxpayers often also market consumer credit products, such as refund anticipation loans or checks. Government agencies and consumer advocates have documented widespread problems with the tax return preparer industry ...
Simplexity: Plain Language And The Tax Law, 2017 New York University School of Law
Simplexity: Plain Language And The Tax Law, Joshua D. Blank, Leigh Osofsky
In recent years, federal government agencies have increasingly attempted to use plain language in written communications with the public. The Plain Writing Act of 2010, for instance, requires agencies to incorporate "clear and simple" explanations of rules and regulations into their official publications. In the tax context, as part of its "customer service" mission, the Internal Revenue Service bears a "duty to explain" the tax law to hundreds of millions of taxpayers who file tax returns each year. Proponents of the plain language movement have heralded this form of communication as leading to simplicity in tax compliance, more equitable access ...
Government As Investor: The Case Of Immediate Expensing, 2017 Wake Forest University
Government As Investor: The Case Of Immediate Expensing, Rebecca N. Morrow
Kentucky Law Journal
For more than sixty years, tax scholars have recognized conditions under which the government ceases to be a mere taxing entity—imposing a rate of tax on a business’s profits—and through the operation of tax law becomes more like an investment partner—contributing its fair share of capital to new investments and proportionately sharing in losses as well as gains. These conditions, which are satisfied by immediate expensing policies, are now common.
The investment partner analogy has been analyzed from the perspective of a taxpayer who, as a result of partnership-like treatment, enjoys returns on investment that are ...
R&D Tax Incentives--Growth Panacea Or Budget Trojan Horse?, 2016 Harvard Law School
R&D Tax Incentives--Growth Panacea Or Budget Trojan Horse?, Stephen E. Shay, J. Clifton Fleming Jr., Robert J. Peroni
No abstract provided.
When Helpers Hurt: Protecting Taxpayers From Preparers, 2016 Washington and Lee University School of Law
When Helpers Hurt: Protecting Taxpayers From Preparers, Michelle L. Drumbl
Michelle L Drumbl
Joint Statement Of The Ncc And The Uscc Regarding Tax Reforms, 2016 St. John's University School of Law
Joint Statement Of The Ncc And The Uscc Regarding Tax Reforms
The Catholic Lawyer
No abstract provided.
The Tax Definition Of "Medical Care:" A Critique Of The Startling Irs Arguments In O'Donnabhain V. Commissioner, Katherine Pratt
Michigan Journal of Gender and Law
This Article critiques the startling arguments made by the Internal Revenue Service (“IRS”) in O’Donnabhain v. Commissioner, a case in which the issue was whether a person diagnosed with gender identity disorder (“GID”) could take a federal tax deduction for the costs of male-to-female medical transition, including hormone treatment, genital surgery, and breast augmentation. Internal Revenue Code § 213 allows a deduction for the costs of “medical care,” which (1) includes costs incurred for “the diagnosis, cure, mitigation, treatment, or prevention of disease, or for the purpose of affecting any structure or function of the body,” but (2) generally excludes ...
Country By Country Reporting And Corporate Privacy: Some Unanswered Questions, 2016 University of Michigan Law School
Country By Country Reporting And Corporate Privacy: Some Unanswered Questions, Reuven S. Avi-Yonah
Corporate privacy is an oxymoron. Individuals have a right to privacy, which the Supreme Court has recognized at least since Griswold v. Connecticut (1965). Warren and Brandeis’ famous defense of the right to privacy (1890) clearly applied only to individuals, because only individuals have the kind of feelings that are affected by invasions of privacy. Corporations are legal entities, and the concept of privacy does not apply to them, as the Supreme Court held in 1906. Thus, any objection to making corporate tax returns public cannot rest on the right to privacy. In fact, corporate returns were made public in ...
We Believe In Being Honest: Dependency Exemptions For Lds Missionaries, 2016 Brigham Young University Law School
We Believe In Being Honest: Dependency Exemptions For Lds Missionaries, Annalee Hickman Moser
Brigham Young University Journal of Public Law
No abstract provided.
The Mapmaker’S Dilemma In Evaluating High-End Inequality, 2016 University of Miami Law School
The Mapmaker’S Dilemma In Evaluating High-End Inequality, Daniel Shaviro
University of Miami Law Review
The last thirty years have witnessed rising income and wealth concentration among the top 0.1% of the population, leading to intense political debate regarding how, if at all, policymakers should respond. Often, this debate emphasizes the tools of public economics, and in particular optimal income taxation. However, while these tools can help us in evaluating the issues raised by high-end inequality, their extreme reductionism—which, in other settings, often offers significant analytic payoffs—here proves to have serious drawbacks. This Article addresses what we do and don’t learn from the optimal income tax literature regarding high-end inequality, and ...