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Paul L. Caron
Dean
Pepperdine Caruso
School of Law

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  • Tax Prof Spotlight: Alice Abreu

    Saturday, May 22, 2004

    Photo of Professor AbreuAlice Abreu returns to Temple from her Spring 2004 stint as the William K. Jacobs, Jr. Visiting Professor of Law at Harvard Law School, where she taught the basic tax course as well as a tax policy seminar (Policy Issues in Tax System Redesign). She has visited at other top law schools in recent years, including Yale and Penn, and was the Howard H. Rollap Distinguished Visiting Scholar at Utah. She calls her Harvard stint “an amazing experience”:

    I found the faculty, students and staff to be both welcoming and intellectually exciting. The students are interesting, engaged, and not at all arrogant. It has also been an exciting time to be in Massachusetts; in addition to the Kerry candidacy, the impending reality of gay and lesbian marriage in Boston gave discussions about the ways in which the Code both privileges and penalizes marriage, and the effect of DOMA, especial currency. [Editor’s note: What about the Red Sox?]

    Professor Abreu is an important scholar. She is the co-author of a leading casebook (Federal Income Taxation (Foundation Press, 5th ed. 2004) (with Paul McDaniel (Florida), Martin McMahon, Jr. (Florida) & Daniel Simmons (UC-Davis)), as well numerous articles (including Tax Counts: Bringing Money-Law to Lat-Crit, 78 Denv. U. L. Rev. 575 (2001); Winner-Take-All Markets: Easing the Case for Progressive Taxation, 4 Fla. Tax Rev. 1 (1998) (with Martin McMahon, Jr. (Florida)); Untangling Tax Reform: Simple Taxes, Complex Choices, 33 San Diego L. Rev. 1 (1997); and Taxing Exits, 29 U.C. Davis L. Rev. 1087 (1996)).

    Professor Abreu has held important leadership positions within the academy and profession, and at Temple. She chaired the AALS Tax Section in 1997 and is the Supervising Editor of the ABA Tax Section News Quarterly. Professor Abreu was the catalyst for change in the Temple law school writing curriculum and chaired the Faculty Selection Committee from 1995-97. She held the Charles Klein Chair of Law and Government during the 1993-96 rotation and was the 1992 Law School nominee for the University Lindback Award for Excellence in Teaching. Professor Abreu is a frequent speaker at tax conferences and served as Chair of the 47th Annual Penn State Tax Conference in 1993.

    From June 1-10, Professor Abreu will be in Rome, helping to direct Temple’s summer program. She notes that “it’s been a great year. I even indulged in flying to Rome during the HLS spring break and running, and finishing, the Rome marathon. For an over 50 law professor who burned her AARP card, that’s not too bad!” Not bad indeed!

    Each Saturday, TaxProf Blog shines the spotlight on one of the 700+ tax professors in America’s law schools. We hope to help bring the many individual stories of scholarly achievements, teaching innovations, public service, and career moves within the tax professorate to the attention of the broader tax community. Please email me suggestions for future Tax Prof Profiles. For prior Tax Prof Profiles, see here.

  • Joint Committee on Taxation Releases Revenue Estimates

    Saturday, May 22, 2004

    The Joint Committee on Taxation released revenue estimates for:

    • H.R. 4359, Child Credit Preservation and Expansion Act of 2004, as passed by the House (JCX-37-04)

    • H.R. 1528, Tax Administration Good Government Act, as passed by the Senate (JCX-35-04)

    • S. 1637, Jumpstart Our Business Strength (“JOBS”) Act, as passed by the Senate (JCX-36-04)

  • Concord Coalition Criticizes Budget Resolution

    Friday, May 21, 2004

    In a press release, the Concord Coalition said that the pay-as-you-go (PAYGO) rule for tax cuts and entitlement expansions included in the budget resolution now before the House and Senate fails to provide meaningful fiscal discipline.

  • Stanley Fish on Role of Higher Education

    Friday, May 21, 2004

    No tax content here, but Stanley Fish has a very thoughtful op-ed in today’s New York Times on the proper role of higher education (including law schools). He advises those of us in the higher ed biz not to “confuse [our] academic obligations with the obligation to save the world…. In short, don’t cross the boundary between academic work and partisan advocacy, whether the advocacy is yours or someone else’s.” He concludes that “[i]f we aim low and stick to the tasks we are paid to perform, we might actually get something done.”

  • Treasury Releases Clarification of U.S.-Japan Tax Treaty

    Friday, May 21, 2004

    The Treasury Department today released technical clarifications relating to the U.S.-Japan income tax treaty. See the press release and the Record of Discussion.

  • IRS Loses Family Limited Partnership Case in Fifth Circuit

    Friday, May 21, 2004

    The IRS yesterday lost an important family limited partnership case in the Fifth Circuit: Estate of Kimbell v. U.S (No. 03-10529) (5th Cir. May 19, 2004). The case comes on the heels of the IRS’s successful challenges to family limited partnerships in Tax Court cases like Estate of Strangi, T.C. Memo. 2003-145 (coincidentally decided precisely one year earlier and on appeal in the Fifth Circuit). Perhaps the most significant aspect of Estate of Kimbell is that it lays out a four-part roadmap for avoiding section 2036 in family limited partnership cases:

    • Parent retains sufficient non-partnership assets for her support and avoids commingling of personal assets with partnership assets.

    • Partnership formalities are followed.

    • Assets contributed to partnership require active management.

    • Parent had non-tax business reasons for forming partnership.

    Thanks to tax valuation guru Jack Bogdanski (Lewis & Clark) for the tip.

  • Taxes, Government & Religion: Part Two

    Friday, May 21, 2004

    A Colorado Catholic Church Diocese raised quite a ruckus here and elsewhere this week with its anti-Kerry pastoral letter. We and others noted the strict tax rules keeping religion out of government/politics.

    Yet a story out of Texas illustrates that danger lurks in the other direction as well, when government intrudes on religion. The state comtroller denied tax-exempt status to a local Unitarian church because it lacked “one system of belief.” As the local paper notes: “What constitutes religion? When and how should government make that determination? Questions that for years have vexed the world’s great philosophers have now become the province of the state comptroller’s office.”

    Since 1999, Texas has denied tax-exempt status to 17 churches and granted them to more than 1,000. (Thanks to reader Stuart Levine for passing on the lead.)

  • Lavoie on Judiciary’s Role in Fostering Unethical Behavior: Tax Shelters

    Friday, May 21, 2004

    Richard Lavoie (Northwestern) has published Subverting the Rule of Law: The Judiciary’s Role in Fostering Unethical Behavior, 75 U. Col. L. Rev. 115 (2004). Here is part of the Introduction:

    …Enron’s unethical behavior was seemingly promoted by a legal system that the company perceived to be constrained to a literal interpretation of the law.

    The remainder of this article explores these themes in more detail and illustrates them in the context of corporate tax shelter activity. Part II examines the nature of morality and demonstrates that unethical behavior is attributable to situational factors, rather than to intrinsic character. This portion of the article lays the philosophical and social science foundation required to understand why New Textualism’s focus on strict statutory construction has such a significant adverse impact on ethical behavior. Part III examines New Textualism’s reliance on promoting the Rule of Law as the justification for insisting on strict statutory interpretation. This part demonstrates that strict statutory interpretation in fact harms the Rule of Law because it severs the symbiotic relationship between a society’s laws and its values and results in heightened unethical behavior. Conversely, it is shown that a more inclusive interpretive approach would satisfy New Textualism’s Rule of Law requirements while still maintaining close links to societal beliefs and promoting ethical behavior. Part IV reviews these concepts in the context of corporate tax shelter activity and demonstrates how a move toward literal interpretations of the tax laws has led to increased levels of unethical behavior. This part also appraises the efficacy of various techniques that could be used to dissuade such unethical behavior in light of the philosophical and social science considerations discussed in Part II. Part V concludes that the attitudes of the judiciary and the bar regarding statutory interpretation have a significant impact on the level of unethical behavior. As a consequence of the recent ascendance of strict statutory construction, moral and legal norms have begun to diverge in a manner that fosters unethical behavior. Consequently, corporate America’s ethical crisis should be addressed by narrowing the gap between moral and legal norms and by altering the situational considerations of corporate managers. This requires judicial rejection of strict statutory construction and utilization of professional advisors to promote ethical client behavior.

  • NTA Symposium: Tax Policy in Transition

    Friday, May 21, 2004

    The National Tax Association concludes its 34th Spring Symposium on Tax Policy in Transition today at the Holiday Inn Capitol in Washington, D.C. with these panel programs and speakers:

    9:00-10:30am
    Corporate Tax Reporting and Compliance
    Moderator: George Plesko (MIT)
    Presenters:
    • Corporate Tax Avoidance and the Properties of Corporate Earnings (George Plesko, MIT)
    • Lost in Translation: Detecting Tax Shelter Activity in Financial Statements (Gary McGill , Florida; & Edmund Outslay, Michigan State)
    • The Evolving Schedule M-3: A New Era of Corporate Show and Tell? (Charles Boynton, Office of Tax Analysis, U.S. Treasury Department; & Lillian Mills, Arizona)

    10:45am-12:15pm
    International Tax Roundtable
    Moderator: Peter Orszag (The Brookings Institution)
    Presenters:
    • Jane Gravelle (Congressional Research Service)
    • Gary Hufbauer (Institute of International Economics)
    • Jonathan Talisman (Capitol Tax Partners)

  • Statutory Language Released for Senate-Passed JOBS Act

    Thursday, May 20, 2004

    The 1008-page statutory language of Senate-passed S. 1637, the Jumpstart Our Business Strength (JOBS) Act, is now available on the Thomas web site. (Thanks to Donald Tobin (Ohio State) for the tip.)

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