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2008

Taxation-Federal

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Articles 1 - 30 of 31

Full-Text Articles in Law

Recent Developments In Federal Income Taxation, Ira B. Shepard Nov 2008

Recent Developments In Federal Income Taxation, Ira B. Shepard

William & Mary Annual Tax Conference

No abstract provided.


Capturing Capital Gain While Staying In The Deal, Thomas P. Rohman, Todd D. Golub Nov 2008

Capturing Capital Gain While Staying In The Deal, Thomas P. Rohman, Todd D. Golub

William & Mary Annual Tax Conference

No abstract provided.


Enforcing Dividend Withholding On Derivatives, Reuven S. Avi-Yonah Nov 2008

Enforcing Dividend Withholding On Derivatives, Reuven S. Avi-Yonah

Articles

The United States imposes a 30 percent withholding tax on dividends paid to nonresident aliens. However, this tax is rarely paid by portfolio investors because they can swap into U.S. securities, receiving payments to match both capital gain and dividends. Treasury has ruled that swap payments have an origin in the taxpayer’s residence so there is no withholding obligation on payments that match dividends. The proposal would impose withholding tax on dividend equivalents on the ground that there is no policy justification for a distinction between dividends, substitute dividends under securities lending transaction (which are treated as dividends ...


The Taxation Of Private Equity Carried Interests: Estimating The Revenue Effects Of Taxing Profit Interests As Ordinary Income, Michael S. Knoll Nov 2008

The Taxation Of Private Equity Carried Interests: Estimating The Revenue Effects Of Taxing Profit Interests As Ordinary Income, Michael S. Knoll

Faculty Scholarship at Penn Law

In this Article, I estimate the tax revenue effects of taxing private equity carried interests as ordinary income rather than as long-term capital gain as under current law. Under reasonable assumptions, I conclude that the expected present value of additional tax collections would be between 1 percent and 1.5 percent of capital invested in private equity funds, or between $2 billion and $3 billion a year. That estimate, however, makes no allowance for changes in the structure of such funds or the composition of the partnerships, which might substantially reduce tax revenues below those estimates.


Determining The Character Of Section 357(C) Gain, Fred B. Brown Oct 2008

Determining The Character Of Section 357(C) Gain, Fred B. Brown

All Faculty Scholarship

Under section 351, a person transferring property to a controlled corporation generally recognizes no gain or loss on the transaction. An exception to tax-free treatment is contained in section 357(c), which generally provides that a transferor in a section 351 transaction recognizes gain to the extent that any liabilities assumed by the corporation on the transfer exceed the transferor's aggregate adjusted basis in the assets transferred. An issue under section 357(c) is whether the recognized gain should be capital gain or ordinary income. The statute suggests that the character of section 357(c) gain should be based ...


Will The Tax Man Cometh To Coach Rodriguez?, Jeffrey H. Kahn, Douglas A. Kahn Aug 2008

Will The Tax Man Cometh To Coach Rodriguez?, Jeffrey H. Kahn, Douglas A. Kahn

Scholarly Publications

No abstract provided.


Will The Tax Man Cometh To Coach Rodriguez?, Douglas A. Kahn, Jeffrey H. Kahn Aug 2008

Will The Tax Man Cometh To Coach Rodriguez?, Douglas A. Kahn, Jeffrey H. Kahn

Articles

There has been much in the news recently about coaches of major college sports teams moving to a new school and incurring an obligation to make payment to their old school under a buyout provision in their contract. The most recent example is the highly publicized move of Richard Rodriguez from West Virginia University to the University of Michigan. Coach Rodriguez had a contract with his former employer that required him to pay $4 million dollars to West Virginia if he left for another coaching position. After a suit was filed, it was reported that the parties agreed that the ...


Give The Tax Court Transfer Power And Plenary Civil Tax Jurisdiction, Steve R. Johnson Jul 2008

Give The Tax Court Transfer Power And Plenary Civil Tax Jurisdiction, Steve R. Johnson

Scholarly Publications

A recent decision again raises questions about the powers that the Tax Court does and should possess. In Mobley v. Commissioner, No. 07-2019 (6th Cir. July 8, 2008), Doc 2008-14970, 2008 TNT 132-13, the Sixth Circuit affirmed a procedural decision of the Tax Court. The Tax Court dismissed a petition because it lacked jurisdiction, and it rejected the taxpayers’ request to transfer the case to a district court. The Tax Court concluded, and the Sixth Circuit agreed, that the Tax Court lacks transfer power. Under 28 U.S.C sections 1631 and 610, the power to transfer cases is conferred ...


Study Of The Role Of Preparers In Relation To Taxpayer Compliance With Internal Revenue Laws, Leslie Book Jun 2008

Study Of The Role Of Preparers In Relation To Taxpayer Compliance With Internal Revenue Laws, Leslie Book

Working Paper Series

The use of paid tax return preparers has grown steadily. All paid return preparers, including those who are not regulated by any licensing entity or subject to competency or continuing education requirements, must comply with certain requirements in connection with the preparation of a tax return, including signing the return and providing a copy of the return to taxpayers. Preparers are also subject to civil and even criminal penalties for improper conduct and the Code provides that the United States may bring a civil action to enjoin tax preparers if preparers engage in certain types of impermissible conduct.

As discussed ...


Corporate Taxation And International Charter Competition, Mitchell Kane, Edward B. Rock May 2008

Corporate Taxation And International Charter Competition, Mitchell Kane, Edward B. Rock

Faculty Scholarship at Penn Law

Corporate Charter competition has become an increasingly international phenomenon. The thesis of this article is that this development in the corporate law requires a greater focus on the corporate tax law. We first demonstrate how a tax system’s capacity to distort the international charter market depends both upon its approach to determining corporate location and the extent to which it taxes foreign source corporate profits. We also show, however, that it is not possible to remove all distortions through modifications to the tax system alone. We present instead two alternative methods for preserving an international charter market. The first ...


Valuation Discounting Techniques: Terms Gone Awry, Wendy G. Gerzog Apr 2008

Valuation Discounting Techniques: Terms Gone Awry, Wendy G. Gerzog

All Faculty Scholarship

Fair market value is defined in the section 2031 Regulations. For its validity, that definition of fair market value relies on the normal definitions of its significant terms: a seller is someone who is seeking the highest price for her product and a buyer is someone who wants to obtain the lowest price for his purchase. It is only that tension that creates the realistic, and fair, market value of that asset. Indeed, without that conflict, the definition is comprised of hollow words.

In the context of family limited partnerships, terms have been misused. By utilizing the limited partnership shell ...


Quantifying The Tax Advantage Of Deferred Compensation, Eric D. Chason Jan 2008

Quantifying The Tax Advantage Of Deferred Compensation, Eric D. Chason

Faculty Publications

No abstract provided.


Recent Developments In Federal Income Taxation: The Year 2007, Martin J. Mcmahon Jr., Ira B. Shepard, Daniel L. Simmons Jan 2008

Recent Developments In Federal Income Taxation: The Year 2007, Martin J. Mcmahon Jr., Ira B. Shepard, Daniel L. Simmons

UF Law Faculty Publications

This recent developments outline discusses, and provides context to understand the significance of, the most importnat judicial decisions and administrative rulings and regulations and promulgated by the Internal Revenue Service and Treasury Department during 2007- and sometimes a little farther back in time if we find the item particulary humourous or outrageous. Most Treasury Regulations, houever, are so complex that they cannot be dicussed in detail and, anyway, only a devout masochist would read them all the way through; just the basic topic and fundamental principles are highlighted. Admendmentsto the Internal Revenue Code generally are not dicussed except to the ...


Charitable Deductions For Rail-Trail Conversions: Reconciling The Partial Interest Rule And The National Trails System Act, Scott Andrew Bowman, Danaya C. Wright Jan 2008

Charitable Deductions For Rail-Trail Conversions: Reconciling The Partial Interest Rule And The National Trails System Act, Scott Andrew Bowman, Danaya C. Wright

UF Law Faculty Publications

This Article examines an undeveloped legal topic at the intersection of tax law and real property law: charitable deductions from income tax liability for donations of railroad corridors that are to be converted into recreational trails. The very popular rails-to-trails program assists in the conversion of abandoned railroad corridors into hiking and biking trails. However, the legal questions surrounding the property rights of these corridors have been complex and highly litigated. In 1983, Congress amended the National Trails System Act to provide a mechanism for facilitating these conversions, a process called railbanking. In essence, a railroad transfers its real property ...


Exempt Organizations In The 2008 Election: Will Wisconsin Right To Life Bring Changes?, Frances R. Hill Jan 2008

Exempt Organizations In The 2008 Election: Will Wisconsin Right To Life Bring Changes?, Frances R. Hill

Articles

No abstract provided.


Forging Fiscal Reform: Constitutional Change, Public Policy, And The Creation Of Administrative Capacity In Wisconsin, 1880-1920, Ajay K. Mehrotra Jan 2008

Forging Fiscal Reform: Constitutional Change, Public Policy, And The Creation Of Administrative Capacity In Wisconsin, 1880-1920, Ajay K. Mehrotra

Articles by Maurer Faculty

In 1911, Wisconsin became one of the first U.S. states to adopt an effectively administered income tax. Wisconsin reformers were able to overcome several institutional barriers to create the administrative capacity necessary to assess and collect a graduated income tax that in time raised significant revenue, but did not supplant the property tax. With this limited success, the Wisconsin income tax soon became a model for other states and even the national government. In this sense, Wisconsin was a leader in forging fiscal reform. Political activists, lawmakers, and other government actors in the Badger State led a turn-of-the-century property ...


Book Review. Einhorn, Robin L., American Taxation, American Slavery, Ajay K. Mehrotra Jan 2008

Book Review. Einhorn, Robin L., American Taxation, American Slavery, Ajay K. Mehrotra

Articles by Maurer Faculty

No abstract provided.


Time To Start Over On Deferred Compensation, Michael Doran Jan 2008

Time To Start Over On Deferred Compensation, Michael Doran

Georgetown Law Faculty Publications and Other Works

Writing good regulations--"good" in the sense of promoting the public interest--always presents challenges. Regulators must hit a small but important target where private conduct is brought within appropriate government control, but unnecessary compliance burdens and other deadweight costs are minimized. Even if they see the government's objectives clearly, regulators often have only a limited understanding of the underlying private activities. Moreover, regulators may be unaware of how their rules disrupt or distort those activities in socially harmful ways.

Regulators occasionally hit the target exactly. More often, they miss--though not by an intolerably wide margin (good enough for government ...


Back To The Future? The Potential Revival Of Territoriality, Reuven S. Avi-Yonah Jan 2008

Back To The Future? The Potential Revival Of Territoriality, Reuven S. Avi-Yonah

Articles

Since 1994, the trend in the United States and other developed countries appears to be to reduce the scope of residence jurisdiction and increase the emphasis on source jurisdiction. If this trend continues, these countries are likely to move toward territoriality and decrease the emphasis on their CFC rules. In the author’s opinion, the reason for this trend is political and economic, not legal. It is part of tax competition, specifically the competition to be the headquarters jurisdiction for multinationals. The author also thinks, however, that it is not necessary to go down this road because the solution to ...


Third-Party Tax Administration: The Case Of Low- And Moderate-Income Households, Michael S. Barr, Jane K. Dokko Jan 2008

Third-Party Tax Administration: The Case Of Low- And Moderate-Income Households, Michael S. Barr, Jane K. Dokko

Articles

Using a unique household-level data set, this article investigates the taxfiling experiences and refund behavior of low- and moderate-income (LMI) households. We document households' tax-filing behavior, attitudes about the withholding system, use of tax refunds to consume and save, and the mechanisms by which households would prefer to receive their income. We also document the prevalence of the use of tax-preparation services and the receipt of tax refunds and refund-anticipation loans. Finally, we argue that there may be a role for tax administration to enable LMI households to make welfare-improving financial decisions.


The Proper Tax Treatment Of The Transfer Of A Compensatory Partnership Interest, Douglas A. Kahn Jan 2008

The Proper Tax Treatment Of The Transfer Of A Compensatory Partnership Interest, Douglas A. Kahn

Articles

If a person receives property as payment for services, whether for past or future services, the receipt typically constitutes gross income to the recipient. If a person performs services for a partnership or agrees to perform future services, and if the person receives a partnership interest as compensation for the past or future services, one might expect that receipt to cause the new partner to recognize gross income in an amount equal to the fair market value of the partnership interest. After all, if a corporation compensated someone for services rendered or to be rendered by transferring the corporation's ...


Senator Mccain's Corporate Tax Proposals A Critical Examination, Reuven S. Avi-Yonah Jan 2008

Senator Mccain's Corporate Tax Proposals A Critical Examination, Reuven S. Avi-Yonah

Other Publications

Senator John McCain (R-AZ) has proposed two major changes to the corporate tax code: cutting the corporate tax rate from 35 percent to 25 percent and allowing corporations to deduct the full cost of investments in technology and equipment in the first year, an accounting process known as expensing. The first proposal aims to enhance U.S. economic competitiveness, create jobs, and increase wages. The second proposal aims in particular to boost capital expenditures and “reward investment in cutting-edge technologies.”1


Comment On Yin, Reforming The Taxation Of Foreign Direct Investment By Us Taxpayers, Reuven S. Avi-Yonah Jan 2008

Comment On Yin, Reforming The Taxation Of Foreign Direct Investment By Us Taxpayers, Reuven S. Avi-Yonah

Articles

In this excellent article, George Yin addresses an important proposal by the President's Advisory Panel on Federal Tax Reform. The Advisory Panel proposed that the United States should permanently switch from taxing the parent corporation of U.S. multinationals on worldwide income to a modified territorial regime under which dividends paid out of active business income would be exempt from U.S. tax.' The Joint Committee on Taxation made a similar recommendation.2


The Tax Treatment Of Advance Receipts, David Hasen Jan 2008

The Tax Treatment Of Advance Receipts, David Hasen

Articles

Under the present income tax, some advance receipts are neither taxable on receipt nor deductible on repayment, while others are taxable when received and deductible when repaid or paid for. From a purely theoretical perspective, it remains unclear why different sets of rules apply in different cases. For example, if the fact of unrestricted control over the payment compels the conclusion that it is income, then most advance receipts, including loan proceeds, should be included in income immediately. Conversely, if the presence of an offsetting liability compels the conclusion that the payment is not (yet) income, then most advance receipts ...


Unwinding Unwinding, David Hasen Jan 2008

Unwinding Unwinding, David Hasen

Articles

"Unwinding" is a common, if not ubiquitous, feature of tax practice. In a successful unwind, parties to a prior transaction or arrangement back out of it by means of a later transaction and are treated for tax purposes as having engaged in no transactions at all. In a failed unwind, the parties undertake the later transaction, but it is not treated as nullifying the effects of the first transaction; rather, two separate transactions are deemed to have taken place, each with its own tax consequences.

This Article develops the first unified theoretical framework for analyzing tax unwinding. It also provides ...


Why And How To Tax Carbon, Michael Waggoner Jan 2008

Why And How To Tax Carbon, Michael Waggoner

Articles

Increased concern about possible global warming due to rising levels of greenhouse gases such as carbon dioxide ("CO2") suggests the need to control emissions of CO2. This article explores a system of revenue-neutral carbon taxes as a supplement or alternative to other CO2 control systems such as subsidies, regulation, and cap-and-trade. A system of carbon taxation should be, the Article suggests, sufficiently fairer and simpler and more efficient than the other possible systems of CO2 control and that it merits serious consideration. Because the carbon tax that is suggested would be revenue neutral, it should be politically acceptable. Problems with ...


From The Greedy To The Needy, Wendy G. Gerzog Jan 2008

From The Greedy To The Needy, Wendy G. Gerzog

All Faculty Scholarship

In some instances when the taxpayer makes a charitable donation, the loss of revenue to the government, and the corresponding gain to the taxpayer, far exceeds the benefit to the charity. Some of these losses may be generated by government sanctioned complex transactions and even government created devices. This article proposes a new way to examine "quid pro quo" charitable gifts that reflects the rationale for the charitable deduction.The article analyzes various charitable donations in terms of the dollars gained by the taxpayer, the dollars lost by the government, and the dollars received by the charity. After considering a ...


The Elusive Cap And Gown: The Impact Of Tax Policy On Access To Higher Education For Low-Income Individuals And Families, Phyllis C. Smith Jan 2008

The Elusive Cap And Gown: The Impact Of Tax Policy On Access To Higher Education For Low-Income Individuals And Families, Phyllis C. Smith

Journal Publications

The education incentive provisions in the Taxpayer Relief Act of 1997 were drafted to facilitate access to higher education for low and middle income individuals and families. This was an admirable goal given that low-income families need higher education to emerge from poverty. Despite President Clinton's expressed belief that the education incentive provisions of the Taxpayer Relief Act of 1997 would benefit all families, this Article will demonstrate that this law, as well as other contemporaneous legislation operating in concert with it, actually inhibits access to postsecondary education for low-income individuals. Even more pointedly, the Taxpayer Relief Act of ...


Tax Equity, Anthony C. Infanti Jan 2008

Tax Equity, Anthony C. Infanti

Articles

Simply put, this article stands the traditional concept of tax equity on its head. Challenging the notion that tax equity is an unequivocal good, this article deconstructs the concept of tax equity to reveal the subtle, yet pernicious ways in which it shapes tax policy debates and impinges upon contributions to those debates. The article describes how tax equity, with its narrow focus on income - as the sole relevant metric for judging tax fairness, presupposes a population that is homogeneous along all other lines. Through this insidious homogenization, tax equity performs both a sanitizing and a screening function in the ...


A Multilateral Solution For The Income Tax Treatment Of Interest Expenses, Michael J. Graetz Jan 2008

A Multilateral Solution For The Income Tax Treatment Of Interest Expenses, Michael J. Graetz

Faculty Scholarship

Recent developments – including greater taxpayer sophistication in structuring and locating international financing arrangements, increased government concerns with the role of debt in sophisticated tax avoidance techniques, and disruption by decisions of the European Court of Justice of member states' regimes limiting interest deductions – have stimulated new laws and policy controversies concerning the international tax treatment of interest expenses. National rules are in flux regarding the financing of both inbound and outbound transactions.

Heretofore, the question of the proper treatment of interest expense has generally been looked at from the perspective of either inbound or outbound investment. As a result, the ...