Taxation-Federal Commons^™

Table Of Contents, Seattle University Law Review

Seattle University Law Review

Table of Contents

Corporate Governance Speech, Sarah C. Haan

Seattle University Law Review

The State has always regulated the intra-firm communications that make corporate governance possible, most commonly by mandating disclosures of information by a corporation to its shareholders. Some such laws are labeled “securities regulation,” but securities regulation is a broad category that extends to speech by actors who are outside the corporate enterprise as well. Also, the conventional securities regulation category does not capture all such laws; other examples, including informationforcing mandates, can be found in state corporate law. This Article uses the term “corporate governance speech” to describe the communications among shareholders, directors, and officers through which corporate governance is …

Green Dividends: A Case Study In Green Dividends And The Conditions For Private Ordering Solutions, Anne M. Tucker

Seattle University Law Review

This Essay introduces a novel private ordering solution to facilitate corporate investments in pro-social and environmental initiatives: Green dividends. Green dividends are an optional increase in shareholder dividends that are returned to the company to be reinvested in environmental initiatives or kept by a shareholder.

Green dividends pose an alternative to the current gridlocked debate that corporations can’t, won’t, shouldn’t, and shouldn’t even try to act in pro-social or environmental ways. Turning the common refrains on their head converts each narrative into an element for a successful private ordering solution: authority, accountability, shareholder buy-in, and government- backed enforcement. With Green …

Does Climate Disclosure Work To Reduce Greenhouse Gas Emissions? Emerging Evidence Suggests Cautious Optimism, Cynthia A. Williams

Seattle University Law Review

Significant regulatory resources have been spent developing global, voluntary climate and sustainability disclosure standards, such as the TCFD, TNRD, and ISSB’s Sustainability and Climate Disclosure standards, or domestically required disclosures, such as in the EU and in the U.S. Thus, it is important to evaluate whether this disclosure, particularly voluntary, qualitative disclosure, will have the power to shift the allocation of capital, will have a significant effect on the management of climate risk within firms, and ultimately will reduce climate change risk and biodiversity loss.

In this Article, several interrelated questions will be discussed. First, what does the empirical evidence …

Volume 48 Masthead, Seattle University Law Review

Seattle University Law Review

Volume 48 Masthead

In (Tax) Hindsight: When Should The Tax System Ease Taxpayer Regrets?, Charlene Luke

UF Law Faculty Publications

A brief review of, Emily Cauble, Taxpayers’ Tax Election Regrets, 77 The Tax Law. 77 (2023), that focuses on § 754 elections.

Taxing People, Not Residents, Yariv Brauner

UF Law Faculty Publications

Essentially all states tax their residents’ worldwide income. This norm is difficult to justify beyond vague notions of state provided benefits enjoyed by residents. Recent increased mobility (particularly tax-motivated mobility of wealthy individuals) and the growing importance of remote work and digital nomadism present a serious challenge to this linking of residence and taxing rights. This article examines whether exclusive source taxation of individuals could replace the existing rules which are based on a compromise between residence and source taxation. The article concludes that exclusive source taxation of individuals is both feasible and desirable, mainly due to its fairness and …

The Service’S Overgenerous Tax Treatment Of Crowdfunding, Jeffrey H. Kahn

Cardozo Law Review de•novo

The Internal Revenue Service released a fact sheet that defines crowdfunding as a method to raise money on websites by soliciting contributions from a large number of people. This article considers how crowdfunding is treated for tax purposes and argues that, contrary to the fact sheet's determination, all donations collected by commercial websites should be income to the recipient.

Foreword: Moore, Loper Bright, Corner Post, And The Future Of The Federal Tax System, David Hasen

UF Law Faculty Publications

In the 2023 Term, the Supreme Court decided three cases that are likely to have significant implications for the federal tax system. Moore v. United States presages a resuscitated constitutional realization requirement for the income tax—a requirement long thought moribund, if not dead, by most commentators and policymakers. Loper Bright Enterprises v. Raimondo jettisoned the Chevron doctrine’s deferential standard of review of agency rulemaking, returning the standard to some perhaps modified version of its more searching pre-Chevron status. And Corner Post, Inc. v. Board of Governors of the Federal Reserve System held that the statute of limitations for most …

Volume 48 Masthead, Seattle University Law Review

Seattle University Law Review

Volume 48 Masthead

Corporate Scenarios: Drawing Lessons From History, Madison Condon

Seattle University Law Review

As corporations are increasingly pressed to reveal information about their exposure to climate-related risks, they are often asked to undertake and disclose the outcome of “scenario analysis.” In this exercise, corporations, including financial institutions, examine how their business would fare under different pathways the future may take. One oft-used scenario, for example, is the International Energy Agency’s “Net-Zero by 2050: A Roadmap for the Energy Sector.” This Essay presents a history of the use of scenarios as a corporate planning tool, particularly in the oil industry, arguing that it is key for understanding our present moment and the role of …

Dark Accounting Matter, Colleen Honigsberg

Seattle University Law Review

Physicists calculate that approximately 85% of the matter in the universe is composed of “dark matter” that “does not absorb, reflect, or emit electromagnetic radiation and is therefore difficult to detect.” The S&P 500 currently trades at a price-to-book value of 4.2, suggesting that book value accounts for less than 20% of the S&P 500’s market value. The remaining 80% appears nowhere in these firms’ balance sheets—it is invisible to contemporary accounting techniques and constitutes “dark accounting matter.”

Some “dark accounting matter” is composed of factors commonly described as components of “ESG.” Human capital, for example, is an intangible asset …

The President’S Authority To Impose Tariffs, Chad Squitieri

Scholarly Articles

The International Emergency Economic Powers Act (“IEEPA”) empowers the President to “regulate . . . importation.” In Learning Resources v. Trump, the United States District Court for the District of Columbia ruled that such language did not empower the President to impose tariffs. The District Court reasoned that there was a distinction between the power to “regulate” and the power to “tax,” and that tariffs required a power to tax. This Essay explains why the District Court was wrong.

The Constitution’s original meaning and Supreme Court precedent indicate that tariffs can be an exercise of Congress’s power to regulate …

Fiscal Citizenship And Taxpayer Privacy, Alex Zhang

Faculty Articles

Should individual tax data be public or confidential? Within the United States, secrecy has been the rule since the Tax Reform Act of 1976. But at three critical junctures—the Civil War, the 1920s, and the 1930s—Congress made individual tax records open for public inspection, and newspapers published the incomes of the billionaires of the time. Today, Finland, Norway, and Sweden all mandate significant transparency for individual tax information.

This Essay intervenes in the tax-confidentiality debate by building a new analytical framework of fiscal citizenship. Until now, scholars have focused on compliance—whether disclosure incentivizes honest reporting of income, and if it …

Carried Interest: Recent Tax Holding Envisions Need For New Legislation, Patrick Lucas

FIU Law Review

In the financial world, carried interest represents the share of the profits of a private equity fund allocated to its manager which is disproportionate when compared to the manager’s relative capital contribution. On May 3, 2023 the Tax Court issued its memorandum opinion in ES NPA Holding, LLC v. Commissioner. The decision quickly became popularized as providing reassurance to sponsors of private equity funds that they will rarely, if ever, realize income as a result of the issuance of a profits/carried interest (the so-called front-end issue for carried interest). The so-called back-end issue is how the income arising from a …

Refundable Tax Credit Design: Cohabitating Parents And Gender Presumptions, Michelle Lyon Drumbl

Scholarly Articles

This Essay is meant to encourage further thinking to improve upon design options for unmarried cohabitating parents. Are there better ways to recognize the needs of unmarried co-parents (whether living together or not) and to provide support for shared parenting? The policy considerations for providing support to unmarried cohabitating parents are different than those for supporting married couples, given that these individuals lack the financial protections of a formal partnership.

One solution is to have a default rule whereby the CTC is awarded to the primary caregiver. Canada’s gender presumption provides a degree of administrative simplicity, but the IRS could …

Delay, Deny, Tax, Samuel D. Brunson

Faculty Publications & Other Works

Health insurance companies are having a moment in the United States. Their moment involves widespread public objections to their seemingly random and increasing willingness to deny coverage and reimbursement to insureds. These denials are in large part not part of a program to improve health coverage but, rather, to reduce insurance companies’ expenses and, in turn, increase their profits.

There is broad consensus that something has to change. The public demands it. Bipartisan groups of senators and representatives have investigated it. Even the health care industry acknowledges that something needs to change. To actually make the health care system better …

A New Johnson Amendment: Subsidy, Core Political Speech, And Tax-Exempt Organizations, Samuel D. Brunson

Faculty Publications & Other Works

Seven decades ago, Congress enacted the so-called Johnson Amendment. This provision of tax law forbids tax-exempt public charities from endorsing or opposing candidates for office. Under the plain language of the Internal Revenue Code, an organization that violates the Johnson Amendment does not qualify as tax-exempt.

The legislative history underlying the Johnson Amendment is sparse, and it provides few clues as to Congress’s reason for enacting it. In the ensuing years, though, it has become clear that Congress does not want to subsidize campaigning activities, and this has become the most convincing justification for the Johnson Amendment. However, the design …

Volume 48 Masthead, Seattle University Law Review

Seattle University Law Review

Volume 48 Masthead

The Irs's Misguided Playbook For Nil Collectives, Olivia M. Lubarsky

American University Law Review

Since the emergence of name, image, and likeness (NIL) opportunities for NCAA student-athletes, the IRS continues to scrutinize and ultimately deny many NIL collectives’ claims for section 501(c)(3) tax-exempt status, particularly questioning their asserted charitable purposes. This Note explores the foundation of the IRS's reasoning and argues that the IRS tangles key legal requirements, undervalues the public benefits generated by NIL collective activities, and applies inconsistent standards that overlook the educational and amateur sports charitable purposes these collectives can serve. By addressing the inconsistencies in the IRS's reasoning, NIL collectives may chart a viable path toward securing tax-exempt status.