a surfer in front of the malibu pier on a sunny day

Paul L. Caron
Dean
Pepperdine Caruso
School of Law

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  • Tax Obligations of Quakers

    Friday, June 25, 2004

    Interesting tax case reported yesterday on law.com about Quakers’ tax obligations. Here is the introduction:

    In a court battle between the IRS and a group of Quakers, a federal judge has ruled that the Quakers must comply with a levy on the wages of a Quaker employee and “war tax protester” and that its refusal to honor the levy makes the Quakers directly liable for all of the employee’s unpaid taxes.

    But in a significant victory for the Quakers, U.S. District Judge Stewart Dalzell ruled that the Internal Revenue Service is not entitled to a 50 percent penalty because the church had “raised novel and important questions” about its rights under the Religious Freedom Restoration Act.

    In his opinion in United States v. Philadelphia Yearly Meeting of the Religious Society of Friends, Dalzell said he agreed with the Quakers’ argument that complying with the levy “substantially burdens its exercise of religion.”

    For the full story, see here. (Thanks to reader Steven Sholk for the tip.]

  • Death of Tax Court Judge Charles Clapp

    Thursday, June 24, 2004

    The Tax Court yesterday announced the death of retired Judge Charles E. Clapp II. Judge Clapp was appointed by President Reagan in 1983 and served until 1993, when he assumed Senior Judge status until his retirement in 1998. Funeral services are Friday, June 25 in Duxbury, MA.

  • IRS Warns About Virgin Islands Tax Scam

    Thursday, June 24, 2004

    In Notice 2004-45 and accompanying press release, the Treasury Department and IRS today warned taxpayers about a tax scam involving phony claims of Virgin Island tax benefits under sections 932(c) and 934(g):

    The Internal Revenue Service is aware that certain promoters are advising taxpayers to take highly questionable, and in most cases meritless, positions … in order to avoid U.S. taxation and claim a tax benefit under the laws of the United States Virgin Islands (USVI). Promoters may also be advising taxpayers to take similar positions with respect to other U.S. possessions. This notice alerts taxpayers that the Service intends to challenge these positions in appropriate cases.

  • Leiter on Easy Law School Tenure

    Thursday, June 24, 2004

    Brian Leiter (Texas) today reprises his piece, Why Is it So Easy To Get Tenure in Law Schools? Here’s a sample:

    [O]utside the ranks of the top 15 or so schools, most law schools tenure almost everyone they hire; and even within the top 15, a tenure review comparable to what one finds at Princeton or MIT is unheard of. One consequence: while the tenured ranks of the best philosophy departments are full of first-rate intellects (even if one might quibble about whether so-and-so’s work is really “that significant”), the tenured ranks of the best law schools (including Yale and Harvard) are uneven, including not only first-rate intellects but also intellectual lightweights.

  • Welcome to the Blogosphere: Bill Clinton

    Thursday, June 24, 2004

    As Tax Prof Jack Bogdanski departs the blogosphere, we welcome to the ranks our newest blogger: President Clinton. Check out his blog here. (P.S. It’s a parody.)

  • Sheppard on Foreign Earned Income Exclusion

    Thursday, June 24, 2004

    Hale Sheppard has published Perpetuation of the Foreign Earned Income Exclusion: U.S. International Tax Policy, Political Reality, and the Necessity of Understanding How the Two Intertwine, 27 Vand. J. Transnat’l L. 727 (2004). Here is the abstract:

    This Article discusses Section 911 of the Internal Revenue Code, also known as the Foreign Earned Income Exclusion (FEIE), as an example of a provision that has been sustained, not on the basis of sound economic analysis and compliance with established U.S. international tax policy, but rather because of effective lobbying and political circumstance. First providing an overview of the U.S. system of worldwide taxation, and the place of the FEIE within that framework, Mr. Sheppard explores the forces underlying the perpetuation of the FEIE. He demonstrates the that FEIE is inconsistent with each of the primary components of U.S. international tax policy, including meeting the revenue needs of the U.S. government in a fair and equitable manner, minimizing the burden of tax compliance and administration by reducing tax complexity, fostering economic efficiency through international tax neutrality, and ensuring the competitiveness of U.S. multinational businesses, but explains that the repeal of the FEIE is nevertheless improbable in the foreseeable future as a result of various political realities, such as the rebuilding of Iraq, the upcoming elimination or radical modification of major tax-based export promotion programs, a dwindling global presence of U.S. citizens due to fatal diseases and terrorism, and significant U.S. unemployment rates. He concludes by reemphasizing the complexity of tax policy issues, and by reminding the tax practitioner that a failure to comprehend the policy rationales behind a particular provision or set of provisions compromises the ability to dispense accurate and thorough advice.

  • IRS Provides Summer Tax Tips

    Thursday, June 24, 2004

    The IRS provides Summertime Tax Tips for:

    • Newlyweds
    • Students with Summer Jobs
    • Parents with Kids in Summer Camps

  • Say It Ain’t So Jack — Jack Bog’s Blog Pulling the Plug

    Wednesday, June 23, 2004

    Tax Prof Jack Bogdanski (Lewis & Clark) is pulling the plug on Jack Bog’s Blog on July 6 (its 2-year anniversary). Although only occasionally about tax law and law schools, Jack Bog’s Blog was one of only three active blogs (to my knowledge) run by tax law professors. With Victor Fleischer’s A Taxing Blog on hiatus since October, Jack’s departure leaves Tax Prof Blog and Mauled Again carrying the Tax Prof blogosphere banner. With nearly 150,000 visitors in its 2-year run, Jack’s Bog’s Blog will be missed.

  • Tax Reform in Iceland

    Wednesday, June 23, 2004

    True to its origins as one of the world’s first tax havens (in the 870s, Vikings fled there from high taxes in Norway), Iceland has staged a remarkable economic turnaround in recent years, which this article attributes to reform of its tax laws, including dramatic reductions in personal and corporate income tax rates. (Apparently, trickle-down economics works even in sub-zero weather.)

  • Professorial Musings on Student Evaluations

    Wednesday, June 23, 2004

    Law professors handle student evaluations of their teaching in various ways. One makes a ceremonial show of tossing them in the trash unopened. Another assiduously pores over each one, trying to extract pearls of wisdom to improve her classroom performance. A third worries that a drop from 4.5 (out of 5.0) to 4.4 will adversely affect his tenure chances.

    Eric Rasmusen (Indiana) muses on his blog:

    Why, then do we rely so heavily on student evaluations? It is hard to believe that professors and administrators do not realize how weakly they measure the amount a teacher has taught his students. Even if they did not, if good teaching was the objective, surely we would pay some attention to the syllabi and what kind of tests were given and use objective evaluators — students or faculty observing single class sessions — which we do not do in any serious way. Rather, I think that “good teaching” means “contented students” for the people who rely on student evaluations. Student evaluations are indeed a good way to measure this. And it is a reasonable objective. Administrators are trying to sell a product, and if you view the student as a customer rather than as someone to whom you have a moral obligation, you want to design a product that he wants. The student will likely want a course that has a low workload and gives him a pleasant feeling of accomplishment while being described as difficult course on an advanced topic. Professors have incentives similar to administrators– it is more fun teaching contented students, and while it is quite difficult to know how to make students learn (I know that after 20 years I still don’t know when I have succeeed and when I have failed, or even whether I, as opposed to the students’ own efforts, make much difference), it is much easier to figure out how to make students pleased.

    Mike Rappaport (San Diego) adds:

    Interestingly, at one law school I know, the student evaluations ask the students many questions. Not a single one of them, though, asks how much the student believes he learned overall in the course. They ask all kinds of things, like how well the professor integrated current events, but not how much was learned. Hard teachers, who give a lot of work, would benefit from this question being asked. And so would the students.

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