Vol. 27 No. 2 - Winter 2008

Are Type III Supporting Organizations the New Private Foundations?

Jocelyne C. Miller

Recent legislation and an Advance Notice of Proposed Rulemaking (ANPR) issued by the Treasury Department seem to pull certain public charities effectively out of the public charity world and into the more restrictive world of private foundations.

Facade Easements Get a Facelift

Monica D. Armstrong

The Pension Protection Act of 2006 (PPA) includes changes to the charitable contribution rules that affect, either directly or indirectly, the facade easement deduction. One significant provision, PPA section 1213, amends the section 170(h)(4)(B) rules concerning donations of facade easements of certified historic property. As discussed below, these changes are designed to halt the longstanding abuse of facade easement deductions.

Proposed Regulations Regarding Property Distributions Following Assets-Over Partnership Mergers

Joseph Vetting, Matthew Belcher, and Glenn E. Mincey

On August 22, 2007, the Service published proposed regulations (the “Proposed Regulations”) addressing property distributions following “assets-over” partnership mergers. 72 Fed. Reg. 46932 (Aug. 22, 2007), as amended in 72 Fed. Reg. 62608 (Nov. 6, 2007).

The Selective Enforcement Defense in Civil and Criminal Tax Cases

Steve R. Johnson

A recognized defense in non-tax prosecutions, both federal and state, is that the Government discriminatorily and invidiously targeted the defendant. Although it fails far more often than it succeeds, the defense has been accepted in many non-tax cases. See, e.g., Annotation, What Constitutes Such Discriminatory Prosecution or Enforcement of Laws as to Provide Valid Defense in Federal Criminal Proceedings, 45 A.L.R. Fed. 732 (1979, as currently revised). The defense is constitutional in nature, implicating the Equal Protection and Due Process guarantees.

Notice 2007-69 Grants Temporary Relief for Plans Needing to Amend Definition of Normal Retirement Age

Barbara E. Ruiz-Gonzalez

On May 22, 2007, the Service issued final regulations relating to distributions from a pension plan upon attainment of normal retirement age. T.D. 9325, 72 Fed. Reg. 28606 (May 22, 2007). These final regulations modified Treas. Reg. § 1.401(a)-1 by adding new paragraphs (b)(2)-(4) and amending paragraph (b)(1).

From the Chair

Stanley L. Blend

Happy New Year! We hope that your holiday season was a happy and healthy one, and that the new year brings more of the same. If the past several months are any measure, we expect that the Section of Taxation will continue to be very busy.

Interview: Karen Gilbreath-Sowell

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

Karen Gilbreath-Sowell is Deputy Assistant Secretary of the Treasury for Tax Policy. She previously was co-head of the M&A Group at the E&Y National Tax Office. She served as chair of the ABA Tax Section Corporate Tax Committee.

News Briefs

Brief items of interest.

Boxscore

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

CLE Calendar

Upcoming CLE events.

Tax Bites: An "Ernest" Approach to Federal Income Taxation

Anthony E. Rebollo

Even today, there seems to be a never-ending fascination with just about anything concerning Ernest Hemingway and his larger-than-life exploits. His frustrations with tax season — or the “bastardly income tax epoch” as he once referred to it — are no exception.

2008-2009 Nominees

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 2008 Annual Meeting in August. Under the Section Bylaws, the current Chair-Elect, William J. Wilkins, of Washington, DC, will become Chair at the conclusion of the 2008 Annual Meeting.