Vol. 32 No. 1 - Fall 2012

Thinking About Tax Malpractice

Michael B. Lang

When tax practitioners think of who addresses substandard behavior by their colleagues they think of the IRS Office of Professional Responsibility (OPR) and they are right to do so. OPR’s mandate, funding and staffing have expanded greatly in recent years as part of an effort to hold those who work in the tax field to higher standards. ...

Section Meetings Calendar

A calendar of Section Meetings.

From the Chair

Rudolph R. Ramelli

The Tax Section had a very active and productive summer. In July, the Council and Officers met to review the task force reports generated during the long-range planning project. The purpose of the review was to prioritize the numerous recommendations and to develop action plans to implement the recommendations. ...

Interview: Mark Prater

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

Mark Prater is the Deputy Staff Director and Minority Chief Tax Counsel on the Senate Finance Committee. He served as the Staff Director of the Joint Select Committee on Deficit Reduction. ...

Health Insurance Tax (Penalty) Upheld

Jasper L. Cummings, Jr.

Professor Eustice used to say that an expert is one who gets the details right, but sweeps on to the grand fallacy. He usually meant a fallacy such as the deal not working economically, even though it was tax free; or at a more granular level, that you missed section 304. ...

It’s Not a Tax (Statutorily), but It Is a Tax (Constitutionally)

Steve R. Johnson

On June 28, 2012, the Supreme Court handed down its decision on the validity of the individual mandate, a key portion of so-called ObamaCare. National Federation of Independent Business v. Sebelius (NFIB), 132 S. Ct. 2566. The sharply divided Court held that, constitutionally, Congress does not have authority to compel persons to purchase medical insurance but does have authority to impose a non-coercive tax on persons who choose not to purchase such insurance. ...

Taxation

The Supreme Court Has Spoken: Now What Should Employers Do About Their Group Health Plans?

David Pratt

As discussed elsewhere in this issue, the Supreme Court has now upheld the constitutionality of the individual mandate and most other provisions of the Affordable Care Act. Although this is a major development, the future of the legislation, in anything like its current form, is still uncertain. ...

Diagnosis of and Proposed Remedies for Structural Problems in the Federal Tax System

Jarvis J. Lagman

Under the 2012 rate schedule, the federal income tax system is nominally progressive, but actually operates as a dual tax system. Although the rate schedule is progressive for all taxable income up to $388,350, it functions as a flat tax for higher income levels. ...

The Postman (Usually) Rings Twice: Resolving State Tax Liabilities After a Federal Tax Adjustment

Jay Maschas

An audit of a taxpayer’s federal income tax return can result not only in a federal tax liability, but also in a state tax liability. Too often, a tax practitioner who is experienced in resolving appeals with the Service may be unfamiliar with state tax procedures even in the practitioner’s home state. ...

Validity of Guidance Questioned by the Courts

Adam C. Silva

Two recent court decisions call into question the validity of administrative guidance issued by Treasury and the Service. In one case, the District Court for the District of Columbia held that an IRS Notice violated the Administrative Procedure Act (APA) because it failed to comply with the APA’s notice-and-comment require-ments. ...

Entergy v. Commissioner: The “Untenable” Circuit Split

Matthew R. Sontag

In a prime example of the incongruous outcomes that can flow from the U.S. circuit court system, on June 5, 2012, the Fifth Circuit split from recent Third Circuit precedent and allowed a U.S. foreign tax credit for the U.K. Windfall Profits Tax (Windfall Tax). ...

Diagnosis of and Proposed Remedies for Structural Problems in the Federal Tax System

Jarvis J. Lagman

Under the 2012 rate schedule, the federal income tax system is nominally progressive, but actually operates as a dual tax system. Although the rate schedule is progressive for all taxable income up to $388,350, it functions as a flat tax for higher income levels. ...

The ABA Property Tax Deskbook

Walter Hellerstein

One of the most difficult and time-consuming tasks for the state and local tax practitioner, who often faces questions with multistate implica-tions, is to find a reliable source of information on the law and practice in states other than his or her own. ...

Boxscore

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

CLE Calendar

Upcoming CLE Events.