Vol. 24 No. 3 - Spring 2005

From the Chair

Taxation

From the Chair

Kenneth W. Gideon

Secretary of the Treasury John Snow will speak at our May meeting at our breakfast session on May 20, 2005. This timely appearance will provide Tax Section members the opportunity to hear directly from the Secretary about the Administration’s objectives for social security and tax reform. While those wishing to attend must request a ticket, there is no additional charge for attendance. ...

Challenge Point

Taxation

Forgiven Executive Loans: Compensation Income With Some Unsavory Twists

Michael M. Lloyd and Veronica A. Rouse

This article analyzes the federal tax treatment of a discharge of loans made by a corporation to executive officers of the corporation’s wholly owned subsidiary. This issue remains important even though section 402(a) of the Sarbanes-Oxley Act of 2002 prohibits a public company from extending credit to an executive officer or director...

Nominating Committee

Taxation

2005-2006 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 2005 Annual Meeting in August. ...

Points to Remember

Taxation

Supreme Court Rules That Contingent Attorney Fees Are Gross Income to Client

David A. Brennen

In Commissioner v. Banks, 125 S. Ct. 826 (2005), the Supreme Court considered whether the portion of a monetary recovery paid to a litigant’s attorney under a contingency fee agreement constitutes gross income to the litigant under section 61. Although this issue has been around for quite some time, it gained renewed importance as a result of 1996 amendments to section 104(a). ...

Taxation

Recent Code Changes Favorable to REITs

Eric Mikkelson

Real estate investment trusts (“REITs”) offer a tax-advantaged structure, typically by using a domestic corporation or business trust, through which large numbers of investors can own income-producing real estate and real estate mortgages. If REITs comply with several organizational, asset, income, distribution and record-keeping rules...

Taxation

COBRA's Bite: Retiree Medical Benefits in a Chapter 11 Bankruptcy and After Acquisitions

Frank Tripodi

Unlike qualified pension benefits, welfare benefits do not vest automatically. Employee Retirement Income Security Act of 1974 (“ERISA”) §201(1); see also Curtiss-Wright Corp. v. Schoonejongen, 514 U.S. 73, 78 (1995). Accordingly, an employer must typically perform some affirmative act, such as making an irrevocable promise to employees...

Point & Counterpoint: Should the Individual AMT Be Repealed?

Taxation

Point: The Individual AMT Should Not Be Repealed (But Should Be Reformed)

Linda M. Beale

Although the AMT was originally enacted to target the superwealthy, various changes in the early years reflected Congress’ goal of limiting the ability of any taxpayer to reduce his or her federal tax burden by aggregating preferences. The current AMT thus acts as a secondary tax system with flatter rate brackets and a broader tax base...

Taxation

Counterpoint: The Individual AMT Should Be Repealed

Yoram Keinan

The minimum tax, the predecessor to the current AMT, was enacted in 1969 to prevent “higher income individuals from substantially eliminating income tax liability through the excessive use of preferences.” Congress reiterated that objective when it replaced the minimum tax with the AMT in 1978 and when it strengthened and expanded the AMT in the Tax Reform Act of 1986. ...

Interview

Taxation

Professor Michael J. Graetz

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

Michael J. Graetz is Justus S. Hotchkiss Professor of Law at the Yale Law School. He served as Deputy Assistant Secretary of the Treasury for Tax Policy from 1990 to 1992. Professor Graetz has written a new book with Ian Shapiro entitled Death by a Thousand Cuts:The Fight over Taxing Inherited Wealth published in March 2005 by Princeton University Press. ...

Spotlight on Committees

Taxation

Committee on Value Added Tax and Other Consumption Taxes

Alan Schenk, Victoria Perry, and Reuven Avi-Yonah

In 1970, President Nixon considered the possible introduction of a value added tax, with the revenue to be rebated to the states that replaced part or all of their property tax used to finance education. Reportedly, President Nixon was advised that he could not propose a VAT at that time because the tax was unfamiliar to the tax professionals and the public. ...

Pro Bono Update

Taxation

2005 Pro Bono Award Recipient Diana Leyden

Pamela F. Olson

Each year, the Tax Section presents a Pro Bono Award to someone who has devoted time and energy to pro bono representation, particularly representation of low-income taxpayers. ...

Boxscore

Taxation

Government Submissions Boxscore

ABA Section of Taxation

Since January 1, 2005, the Tax Section has coordinated the following government submissions, which can be viewed and downloaded free of charge from the Section’s website.

News Briefs

Taxation

News Briefs

ABA Section of Taxation

Tax Section news and announcements.

American Bar Association TM American Bar Association

Vol. 24 No. 3 - Spring 2005

NewsQuarterly, Vol. 24 No. 3

From the Chair

From the Chair

Challenge Point

Forgiven Executive Loans: Compensation Income With Some Unsavory Twists

Nominating Committee

2005-2006 Nominees

Points to Remember

Supreme Court Rules That Contingent Attorney Fees Are Gross Income to Client

Recent Code Changes Favorable to REITs

COBRA's Bite: Retiree Medical Benefits in a Chapter 11 Bankruptcy and After Acquisitions

Point & Counterpoint: Should the Individual AMT Be Repealed?

Point: The Individual AMT Should Not Be Repealed (But Should Be Reformed)

Counterpoint: The Individual AMT Should Be Repealed

Interview

Professor Michael J. Graetz

Spotlight on Committees

Committee on Value Added Tax and Other Consumption Taxes

Pro Bono Update

2005 Pro Bono Award Recipient Diana Leyden

Boxscore

Government Submissions Boxscore

News Briefs

News Briefs