Vol. 23 No. 3 - Spring 2004

From the Chair

Taxation

From the Chair

Richard A. Shaw

The Tax Section has been busy since my last Report. Much of the focus has been on professional responsibility and qualifying tax opinions. ...

Council Actions

Taxation

Section Chair Dick Shaw presented testimony to the IRS Oversight Board on January 26, 2004, and testimony to the Service on Regulations Governing Practice Before the IRS on February 19, 2004 (the Section having submitted comments on Proposed Revisions to Circular 230 on February 12, 2004). ...

Nominating Committee

Taxation

2004-2005 Nominees

ABA Section of Taxation

In accordance with sections 6.1 and 6.3 of the Section of Taxation Bylaws, the following nominations have been submitted by the Nominating Committee for terms beginning at the conclusion of the 2004 Annual Meeting in August. ...

Points to Remember

Taxation

The Financial Inability Defense to Tax Crimes

Steve R. Johnson

Your client files an income tax return correctly stating her tax liability, but she does not pay the reported liability. Usually, this is a civil matter, implicating the failure-to-pay penalty of section 6651(a)(2). In aggravated circumstances, it can become criminal under either section 7201 or section 7203. ...

Taxation

New Pressures on Executive Compensation

Dianne Bennett

Executive compensation is under attack from a variety of sources, including the Service’s pilot comprehensive audit project, which could result in more taxes for both companies and executives. Although any one company’s chances of being part of the initial audit project are small, the type of initiative, the manner in which it was announced, and the eight areas it targets...

Taxation

IRS Issues Proposed Regulations on Application of Section 704(c) to Installment Obligations and Contributed Contracts

Monte A. Jackel and Glenn E. Mincey

On November 24, 2003, the Service and the Treasury Department (“Treasury”) promulgated proposed regulations relating to the treatment under sections 704(c) and 737 of installment obligations and property acquired pursuant to a contract. REG–160330–02, 68 Fed. Reg. 65,864 (Nov. 24, 2003). ...

Point & Counterpoint: Revaluing Partnership Interests on Admission of a Profits-Only Service Partner: Bad Idea or Logical Necessity?

Taxation

Point: Revaluation Rules Should Not Be Changed to Allow Revaluations Upon the Admission of a Profits-Only Partner

Jim Lynch

Currently, partnerships can revalue their assets to fair market value and adjust the partners’ capital accounts to reflect the fair market value of the underlying assets. Treas. Reg. § 1.704–1(b)(2)(iv)(f). The adjustment requires “a substantial non-tax business purpose” and may occur upon...

Taxation

Counterpoint: Booking Up on Issuance of a Partnership Interest to a Service Partner Is a Valuable Addition

Paul Carman

In July 2003, the Service proposed adding the issuance of a partnership interest to a service partner to the current list of times at which a partnership may revalue its assets as reflected in the partnership’s capital accounts. The Proposed Regulation is a welcome addition and will help partnerships implement the intent of Rev. Proc. 93–27, 1993–2 C.B. 343. ...

Interview

Taxation

David Cay Johnston

Jasper L. Cummings, Jr. and Alan J.J. Swirski

David Cay Johnston is a Pulitzer Prize winning journalist with The New York Times. He writes about tax matters and has recently authored a book about the federal tax system, Perfectly Legal. He spoke about his book at the January 2004 ABA Tax Section Meeting and has served as a panelist and commentator at other Section meetings as well. ...

Distinguished Service Award

Taxation

2004 Distinguished Service Award Recipient: K. Martin Worthy

N. Jerold Cohen

Much care and consideration go into the Tax Section’s selection of its Distinguished Service Award recipient. The list of past recipients represents a group of tax lawyers whose distinguished careers and professional acclaim made them naturals for this award. This year’s award goes to another natural—K. Martin Worthy. ...

Spotlight on Committees

Taxation

Teaching Taxation

Linda Galler

The Committee on Teaching Taxation serves four basic functions. First, the Committee is home base to tax academics who participate in Section activities. Our meetings are places to learn and share ideas. By participating in Committee activities, professors gain access to a solid support network of colleagues throughout academia on whom they may rely for advice in teaching and scholarly endeavors. ...

News Briefs

Taxation

News Briefs

ABA Section of Taxation

Tax Section news and announcements.

Tax Bites

Taxation

Dance to the (Tax Bites) Music

Don Bly

Associate Editor Don Bly suggests the Top 10 Tax terms to use in naming a modern-day rock & roll band...

American Bar Association TM American Bar Association

Vol. 23 No. 3 - Spring 2004

NewsQuarterly, Vol. 23 No. 3

From the Chair

From the Chair

Council Actions

Council Actions

Nominating Committee

2004-2005 Nominees

Points to Remember

The Financial Inability Defense to Tax Crimes

New Pressures on Executive Compensation

IRS Issues Proposed Regulations on Application of Section 704(c) to Installment Obligations and Contributed Contracts

Point & Counterpoint: Revaluing Partnership Interests on Admission of a Profits-Only Service Partner: Bad Idea or Logical Necessity?

Point: Revaluation Rules Should Not Be Changed to Allow Revaluations Upon the Admission of a Profits-Only Partner

Counterpoint: Booking Up on Issuance of a Partnership Interest to a Service Partner Is a Valuable Addition

Interview

David Cay Johnston

Distinguished Service Award

2004 Distinguished Service Award Recipient: K. Martin Worthy

Spotlight on Committees

Teaching Taxation

News Briefs

News Briefs

Tax Bites

Dance to the (Tax Bites) Music