Federal

Another Mess

Congress has only a few days to avert a “shutdown” of the federal government.[i]

It’s not looking good in the House, as Speaker McCarthy has struggled to bring certain members of the majority into line, while more moderate members of his party have displayed a willingness to reach across the aisle to secure a temporary funding bill.[ii]

Meanwhile, it seems that the members of the minority[iii] have been content to watch the GOP’s drama unfold.…

Continue Reading Open Transaction Treatment for The Liquidation of a Partner’s Interest

“Once More Into the Breach”[i]

Last week, the IRS announced “the start of a sweeping, historic effort to restore fairness in tax compliance by shifting more attention onto high-income earners, partnerships, large corporations and promoters abusing the nation’s tax laws.”[ii]

The IRS added that its efforts “will be driven with the help of improved technology as well as Artificial Intelligence that will help IRS compliance teams better detect tax cheating.”…

Continue Reading Self-Employment Tax and the Limited Partner – Substance Over Form, or Something Else?

Approaching Year End

Which holiday do you dread the most? For me, it has always been, and likely will always be, Labor Day. Of course, with each passing year, anything that I describe as “always” is less meaningful than it was the year before, at least to the extent it relates to me. That said, there is something about entering the final “stretch” of the year that makes me more anxious than usual.  

After years of trying to determine the root cause of this condition, I recognized that it had nothing to do with the beginning of the school year, as I had initially surmised,[i] nor with the pressure to collect delinquent accounts before the year end,[ii] which I find to be the most unpleasant of responsibilities.[iii]…

Continue Reading Withholding Taxes: Deferred Comp and Services Overseas

The Supremes

The Constitution has figured prominently in the news of late. In the days preceding the initial discussions among members of the Administration and the Congressional leadership regarding the debt ceiling, several prominent Democrats stated that the President has the authority under the 14th Amendment to the Constitution[i] to unilaterally raise the debt ceiling. Last Sunday, the President himself told reporters he believes he has this authority, though “he acknowledged potential legal challenges could still lead the nation to default if he went that route.”[ii]…

Continue Reading Supreme Court Upholds IRS Collections Summons Without Notice

Don’t Wait for Us

On March 20, 2023, Senators Warren, Sanders, Van Hollen, and Whitehouse addressed a letter to Treasury Secretary Yellen in which they urged Yellen “to use [her] existing authority to limit the ultra-wealthy’s abuse of trusts to avoid paying taxes.”[i]…

Continue Reading The Federal Attack on Grantor Trusts: The Demise of Basis Step-Up at Death?

Every year, the IRS compiles a list of common scams that taxpayers may encounter – its so-called “Dirty Dozen.”

Today, the Service wrapped up the annual Dirty Dozen list of tax scams for 2023 with a reminder for taxpayers, businesses and tax professionals to watch out for these schemes throughout the year, not just during tax season.

To help folks with identifying, and staying away from, these scams, the IRS has provided an overview recapping this year’s Dirty Dozen scams.[i]…

Continue Reading IRS Wraps Up Its 2023 Dirty Dozen List

Annual Ritual

The Budget and Accounting Act of 1921 established the requirement that the President submit a budget to Congress for the upcoming fiscal year.[i] Among other things, the proposed federal budget affords the President an opportunity to identify priorities for the next fiscal year, to quantify how much the Administration expects it will cost the government to attain the President’s goals, and to explain how and from what sources the funds needed to cover these expenses will be raised.…

Continue Reading The President’s 2024 Federal Budget: “Reforming” the Taxation of High-Income Taxpayers

On Monday, February 20, we celebrate the birthday of George Washington.[i]

We honor this extraordinary individual who, in 1775, was unanimously selected by the otherwise fractious Continental Congress as the commander in chief of the Continental Army, whose dedication to the Cause and loyalty to his men held the Army together during the most challenging times of the Revolution, who voluntarily returned to private life following the surrender of the British,[ii] who was unanimously chosen to preside over the Constitutional Convention of 1787, who was unanimously elected[iii] in 1789 as the first President of the United States, who served two four-year terms[iv] as President before voluntarily returning once again to private life, who was posthumously promoted in 1976 to the rank of General of the Armies of the United States, and whose birthday the U.S. Senate has observed every year since 1896 with the reading of his Farewell Address.[v]…

Continue Reading George Washington on Debt and Taxes

Lately I’ve been thinking about the many ways by which members of the public transfer funds to government and the many reasons for which such transfers are made. After all, we’re still in the “season of giving.”[i]…

Continue Reading New York’s “No-Longer-a-Sin” Taxes – Effective? Progressive? Neither?

I am guessing that, later this week, many if not most of us will celebrate our uniquely American holiday, Thanksgiving Day. Hopefully, we will be fortunate enough to spend the day and share a meal with family and friends. With a bit of luck, politics will not find its way into our conversations and work will not intrude upon our time at home.

I’m willing to bet that turkey[i] will be on the menu – whether roasted or fried, whole, quartered, or segmented in some other way[ii] – alongside lasagna, moussaka, tandoori chicken, sauerbraten, rice and beans, perogy, goulash, couscous, kebab, borscht, empanada, chicken teriyaki, falafel, lamb, or whatever else our people brought with them when they came to this country.

As wonderful as the Thanksgiving holiday is, for historical reasons I have always associated it with federal taxes. Wait a minute, just hear me out.…

Continue Reading Thanksgiving and. . . Taxes?