Vol. 30 No. 2 - Winter 2011

What Is the Value of a “Should” Opinion?

Kathryn Morrison Sneade

The Tax Court’s August 2010 decision in Canal Corporation v. Commissioner, and in particular, its imposition of penalties under section 6662 despite the taxpayer’s receipt of a “should” opinion from PricewaterhouseCoopers (PwC) has attracted significant commentary, much of it negative, in the blogosphere. The Tax Court (Judge Diane L. Kroupa) recharacterized the contribution...

From the Chair

Charles H. Egerton

As I write this column, President Obama’s National Commission on Fiscal Responsibility and Reform (the “Fiscal Commission”) has just issued its report. Although the report failed to garner the required supermajority approval of the Fiscal Commission, its recommendations have nevertheless served the salutary purpose of focusing public attention and debate on the need to reform the nation’s tax laws. ...

Interview: The Hon. Dan Rostenkowski

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

The Honorable Dan Rostenkowski served as Chairman of the Committee on Ways and Means, United States House of Representatives, 1981-1994. Mr. Rostenkowski was first elected to Congress in 1958 from the 8th District of Illinois. Before assuming Chairmanship of the Ways and Means Committee..

Employee Benefit Plans: Recent Developments

David Pratt

ERISA section 3(21)(A) provides that a person is a fiduciary with respect to an ERISA plan to the extent that, inter alia, it renders investment advice for a fee or other compensation, direct or indirect, with respect to any moneys or other property

Some Immediate and Long-Term Advantages of a Roth IRA Conversion

William K.S. Wang

Suppose I have three bank accounts, each with $100. The first two bank accounts are in traditional IRA accounts with a zero basis. (These traditional IRA accounts may have been converted from 401(k) accounts at a prior employer.) The third account I own outright. For simplicity, assume the federal income tax rate is a flat 50% and will remain at that level forever. ...

In-Plan Roth Conversions

Scott D. McMillen

On September 27, 2010, Congress enacted the Small Business Jobs Act of 2010 (Pub. L. No. 111-240) (“the Act”). Sections 2111 through 2112 of the Act contain plan participant friendly provisions for certain types of retirement plans. Specifically, Section 2112 of the Act amends section 402A, which allows plan participants to make Roth contributions to retirement plans. ...

Just A Matter of Fairness: Tax Consequences of the Service’s Revised Community Property Treatment of California Registered Domestic Partners (RDPs)

Francine J. Lipman and Rebecca J. Kipper

For Mr. Eric Rey, it was just a matter of fairness. “For the first time ever, I’m able to file federal taxes that, in a small way, acknowledges what’s going on in my relationship,” he exclaimed after the Service issued its historic rulings on May 28, 2010. It had been a long journey for Mr. Rey as he fought for—and ultimately won—the right to split community property income with his RDP for federal tax purposes. ...

Boxscore

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

Why Every Lawyer Needs the New Edition of Employee vs. Independent Contractor Guidebook Review of Legal Guide to Independent Contractor Status (5th ed. 2010) by Robert W. Wood

Jonathan R. Flora

A perennial problem for employers (and their advisors) is classifying workers. Every worker must be slotted into one of two fixed categories: employee or independent contractor. And let’s face it—there’s a lot of incentive for an employer to prefer the fruits of ...

10th Annual Law Student Tax Challenge

The Section of Taxation would like to congratulate all of the J.D. and LL.M. teams who participated in the 10th Annual Law Student Tax Challenge competition. A total of 95 J.D. submissions and 31 LL.M. submissions were received, making this year’s Challenge the most competitive to date. ...

Tax Bites Takes Another Law School Exam

Barry Kozak

The Winter 2009 Tax Bites included several clever student responses to Professor Kozak’s request for song lyrics with a tax theme. His 2010 summer school exam offered them a similar opportunity: “Because of Steve’s stellar guitar playing skills and knowledge of federal income tax law, the chair of the American Bar Association Section of Taxation asks him to sing a song at their September 2010 meeting in Toronto that summarizes some of the tax advantages Congress can provide to taxpayers through the Internal Revenue Code.” ...

Why Every Lawyer Needs the New Edition of Employee vs. Independent Contractor Guidebook Review of Legal Guide to Independent Contractor Status (5th ed. 2010) by Robert W. Wood

Jonathan R. Flora

A perennial problem for employers (and their advisors) is classifying workers. Every worker must be slotted into one of two fixed categories: employee or independent contractor. And let’s face it—there’s a lot of incentive for an employer to prefer the fruits of ...

ABA Section of Taxation CLE Calendar

A calendar of upcoming CLE opportunities.