At Court

Gaylor v. Mnuchin—A Step Toward Greater Clarity on Clergy Tax Exemptions?

On October 6, 2017, the U.S. District Court for the Western District of Wisconsin declared section 107(2) of the Internal Revenue Code unconstitutional. The provision permits “ministers of the gospel” to exclude from income compensation designated as a housing allowance, thus giving churches and other religious organizations the ability to provide tax-free housing to their ordained ministers. The government foregoes around $800 million in revenue per year as a result of this provision, and, if the decision stands, it could have a significant impact on churches and other religious institutions.

Practice Points

Employment Cases and Planning Implications

The self-employment tax issue for closely held businesses has become more important in light of a number of self-employment tax cases decided by the Tax Court in the last year. This article, based on a panel at the Joint Fall meeting in Austin, Texas, looks at the statutory provisions and the impact of three of these cases: Fleischer v. Commissioner; Castigliola v. Commissioner; and Hardy v. Commissioner.

Let’s (Not) Get Physical: States Challenge Physical Presence Sales Tax Nexus Law

To help understand the current and future sales tax nexus landscape, this article will briefly revisit the history of sales tax nexus under Quill and Direct Marketing Association. It will then examine the statutes or rules (referred to as economic nexus laws) that states have enacted in response to Direct Marketing Association in an attempt to overturn the nexus law under Quill. Finally, this article will explore competing congressional proposals that attempt to resolve sales tax nexus issues at the federal level.

Pro Bono Matters

Tax Impacts of Natural Disasters

Natural disasters, such as the recent Hurricanes Harvey, Irma, Jose, and Maria (all Category 3 or higher), can wreak havoc on critical infrastructure, the economy, and the livelihood of scores of individuals. In the wake of such disasters, people from all over the world donate time, money, and services to assist those impacted. While the immediate thoughts are often on providing food, shelter, and medical care, the consequences of a natural disaster can continue for several years and affect individuals in many different areas. One such area relates to taxes.

Tax Bits

In the Stacks

News & Announcements

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Sponsor Acknowledgements

About ABA Tax Times

ABA Tax Times (ISSN 2381-5868) (formerly the NewsQuarterly) reports on developments pertaining to taxation, Tax Section news and meeting updates, and other information of professional interest to Tax Section members and other readers. Questions regarding ABA Tax Times can be sent to: taxweb@americanbar.org.

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