Vol. 27 No. 1 - Fall 2007

A Reply to Professor McIntyre

Richard L. Schmalbeck

It is far from clear that the Sarkozy plan would provide the stimulus he seeks, and unclear as well whether the plan would have the unfortunate effects on the French labor market that Professor McIntyre predicts. If adopted, the plan would be appropriately viewed as an experiment, and its consequences would require close monitoring...

The Sarkozy Proposal is Worth a Try

Richard L. Schmalbeck

There is much to be said for this plan on grounds of efficiency. Oversimplifying more than a bit, one can say that taxes tend to be less efficient if they distort...

Creating Tax Unfairness

Michael J. McIntyre

President Nicolas Sarkozy’s promise to change the famously relaxed French way of life by inducing French workers, through a tax exemption for overtime pay, to spend more time in paid employment presents two public-policy issues. The first, of great concern to France, is whether a tax subsidy for overtime pay will benefit the French economy...

From the Chair - Stanley L. Blend

Stanley L. Blend

I am pleased to be writing my first column as Chair of the Section of Taxation, and to follow on the terrific leadership of our immediate past chair, Susan Serota. As you may know, the Section’s activities over the last year were prolific...

News Briefs

Brief items of interest.

Interview: Sheldon S. Cohen

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

Sheldon Cohen is a director of Farr, Miller & Washington, PC, Investment Counsel, in Washington, DC. He is a certified public accountant and an attorney and served as Commissioner of the Internal Revenue Service in 1965-1969 and as Chief Counsel in 1964-1965...

Health Savings Accounts: A Primer

Jennifer R. Noel

In the Medicare Prescription Drug, Improvement, and Modernization Act of 2003, Congress permitted the creation of Health Savings Accounts (“HSAs”) by adding section 223. In Notice 2004-50 and Rev. Rul. 2005-25, the Service provided further guidance on the requirements and administration of HSAs. Most recently, in the Health Opportunity Patient Empowerment Act of 2006 (included in the Tax Relief and Health Care Act of 2006), Congress significantly expanded the attractiveness of HSAs. The discussion below is based on the law in effect following the 2006 legislative changes and includes the 2007 inflation-adjusted amounts provided in Rev. Proc. 2006-53...

Guidance on Sections 403(b) and 409A

David Pratt

This article covers two compensation-related topics, the long-awaited final regulations under section 403(b) and compliance with section 409A. On September 10, 2007, the Service issued Notice 2007-78, which extends the section 409A document compliance deadline by one year, to December 31, 2008. The Notice does not extend the January 1, 2008, effective date of the final regulations...

Shrinking Boomer Social Security Retirement Benefits

Francine J. Lipman

In 2008, the oldest of 78 million baby boomers will celebrate their 62nd birthdays. Before they blow out their birthday candles, they will have considered and likely decided whether to elect to take early Social Security retirement benefits. For the next 20 years, a record number of seniors will face this and related retirement issues...

Tax Section Survey Report on Independence of IRS Appeals

The Section recently surveyed its membership to determine their experience relating to the perceived independence of the Internal Revenue Service’s (“IRS” or “Service”) Appeals Division (“IRS Appeals” or “Appeals”). The Committee on Administrative Practice and a “Blue Ribbon” panel of members developed a seven-page survey instrument to solicit opinions from Section members who have had experience with Appeals in the recent past...

National Conference on the Tax Gap

Ellen Aprill

On June 21-22, the Section, along with the American Institute of Certified Public Accountants, the American Tax Policy Institute, the Tax Executives Institute, and the American College of Tax Counsel, sponsored the National Conference on the Tax Gap. It brought together government officials, academics, and private practitioners, from both the United States and abroad, with the goal of helping policymakers address this difficult and important issue...

Boxscore

Submissions and comments on government regulations, administrative rulings, ABA policy and blanket authorities.

CLE & Section Meeting Calendars

Calendars of upcoming CLE opportunities & Section meetings.

At the Ballgame

Gail L. Richmond

T he World Series is upon us, and this Tax Bites features taxpayers who had at-bats against the Service. In addition to a bit of baseball tax history, readers will discover a case in which the Section's current chair participated...

State and Local Tax Committee

Stephanie Lipinski Galland

The State and Local Tax Committee (SALT) is an active part of the Tax Section, with almost 400 members. The SALT Committee focuses on the growing and challenging issues of state taxation for all 50 states and the District of Columbia. The Committee is made up of private practitioners, state tax department staff, corporate in-house counsel and tax department professionals, academics, and trade association members...