Vol. 32 No. 3 - Spring 2013

International Tax: A Quest to Resolve Overlap Between Foreign Base Company Sales and Foreign Base Company Services

Scott M. Klein, Michael R. Perez, Patricia M. Iribarren, and Michael J. Beeman

The classification of a controlled foreign corporation’s (CFC) gross income as either foreign base company sales income (FBCSI) or foreign base company services income (FBCSvI) is often uncertain, and yet proper characterization may be crucial to its U.S. tax implications. This article explores the potential overlap between these two types of Subpart F income, including the causes and consequences of the current uncertainty as well as a possible resolution thereof. ...

Identity Theft: A Case Study of the Service’s Unequal Treatment of Similarly Situated Taxpayers

Tracy L. Derteen

In 2010, several individuals in a Northeast Ohio community were approached and told they qualified for a stimulus check from the government. The individuals had to give their names, addresses and Social Security numbers to the individual who approached them. They were then told they would receive the stimulus check but were given no further information as to its origin. ...

Using “Spurious” Leverage to Reduce Personal Income Taxes When One Has the Maximum Allowed in an IRA/401(k)

William K.S. Wang

This article describes a strategy that extends two other means of reducing personal income tax after they have reached their maximum utility. The two techniques are...

Section Meetings Calendar

A list of upcoming Section Meetings.

From the Chair

Rudolph R. Ramelli

Rarely does one person have an impact on an institution that can be clearly seen and felt. The Tax Section has clearly seen and felt the impact of Chris Brunswick. Chris passed away on February 25, 2013, after serving 27 years as the Section’s Executive Director. ...

Interview: Ward M. Hussey

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

Ward Hussey retired in 1989 as House Legislative Counsel and the principal specialist in drafting tax legislation. Sam Rayburn appointed him to work in the Counsel’s office in 1946. His tax work before 1952 included the retroactive taxation of life insurance in 1947 and a new provision for appeals of Tax Court decisions. ...

Restaurant Week Re-examined: A Month of Eating Within the IRS Collection Financial Standards

Jane Zhao

A few months ago, I was sitting at a reasonably casual restaurant in Chicago’s West Loop, waiting for one of my favorite burgers in the city. Two prime beef patties, lightly-toasted bun freshly made from a local bakery, topped with an over easy egg (perfect burger-to-egg-to-bun ratio), $10. I washed it down with one of those fancy microbrews, $9. Including tax and tip, it was almost a $25 weeknight dinner. ...

Report of the Nominating Committee: 2013-2014 Nominees

In accordance with Sections 4.2, 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 2013 Annual Meeting in August. Under the Section Bylaws, the current Chair-Elect, Michael Hirschfeld of New York, NY, becomes Chair of the Section at the close of the Annual Meeting. ...

In Honor of Carlton Smith— Co-Recipient of the 2013 Janet R. Spragens Pro Bono Award

Leslie Book

In 1997, Janet Spragens testified before the IRS Restructuring Commission about the need for legal representation in light of changes in national welfare and tax laws that put increasing pressure on the tax system. Janet directed the tax clinic at American University’s Washington College of Law (since named in her honor), and her writing, testimony and good works at the ABA contributed to many efforts that improved the tax system for lower-income taxpayers. ...

In Celebration of Mark Moreau—Co-Recipient of the 2013 Janet R. Spragens Pro Bono Award

Francine J. Lipman

In America today the New York Times, Wall Street Journal, Above the Law and many other resources decry that

A Look at the Tax Section’s Newest Committee—Indian Tribal Tax

Interview with Wendy Pearson, Chair, Indian Tribal Tax Committee, and Derrick Beetso, Counsel for the National Congress of American Indians and a citizen of the Navajo Nation.

Boxscore

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

Taxation

CLE Calendar

Upcoming CLE Events.

Law Student Tax Challenge Winners

The Tax Section congratulates the winners of its 12th Annual Law Student Tax Challenge. An alternative to traditional moot court competitions, the Law Student Tax Challenge asks two-person teams of students to solve a cutting edge and complex business problem that might arise in everyday tax practice. ...

Fellowship Announcements

Announcements regarding the 2013-2015 Public Service Fellows and 2013-2014 Nolan Fellows,