In two follow-up tweets (here and here), he clarified and doubled-down on his position: essentially, he argues that (a) without the 16th Amendment, the country couldn’t have enacted an income tax, (b) without an income tax, we couldn’t have afforded to enter World War I, (c) if we hadn’t entered the war, the Versailles Treaty wouldn’t have happened,[fn1] and (d) without the Versailles Treaty, World War II, with all of its attendant evils, wouldn’t have happened.[fn2] Continue reading “Grover and Godwin”→
On Friday, the Senate confirmed Neil Gorsuch as the newest Justice on the Supreme Court, and today he was officially sworn in, taking the seat that Justice Scalia’s passing left vacant.
When Justice Scalia passed away, I looked at the tax opinions he had authored. It turns out, Justice Scalia didn’t author a whole lot of tax opinions, and those that he did author were, as I said, “workmanlike,” without the verbal pyrotechnics, wit, and flair he was known for.
I was curious whether Justice Gorsuch would bring anything different to that seat, so I looked for tax opinions he had authored.[fn1] My search terms brought up 34 hits; the vast majority were not actually cases dealing with the federal income tax.[fn2] In fact, I only saw two cases dealing with federal income tax issues, and neither of them really dealt with the tax law. Continue reading “Neil Gorsuch and the Tax Law”→
In the aftermath of Chuck Berry’s death on March 18, I learned that I’m way more familiar with his music than I had realized. I’ll confess that I never spent a lot of time thinking about Chuck Berry, but his songs (it turns out) were an accidental soundtrack to my growing up. My dad had two or three oldies stations programmed into the radio, and Berry’s music was ubiquitous on their playlists. And many songs I’m partial to have turned out to be his. (I’m thinking particularly of Nina Simone’s cover of “Brown-Eyed Handsome Man.”)
I previously wrote about the fact that Treasury and the IRS were going to essentially stop issuing guidance in light of the Trump administration’s one-in-two-out rule for regulations.[fn1]
There seems to be some movement on this front. Yesterday, Commissioner Koskinen announced that the IRS was set to begin issuing “subregulatory” guidance again. He didn’t define what he meant by subregulatory, but it probably includes revenue procedures, notices, and revenue rulings, at least. (Interestingly enough, the Tax Notes reporting doesn’t mention revenue rulings,[fn2] while the BNA reporting does. I don’t know if that difference is accidental, or if the two organizations are interpreting differently what Commissioner Koskinen means by subregulatory.) Continue reading “Update on the Future of Treasury Regulations”→
Did you hear that the IRS granted a Satanic cult tax-exempt status in ten days?!? Meanwhile, Tea Party groups’ exemption applications languished for months or even years?!?
I know, it sounds pure conspiracy theory: the IRS loves Satan and hates conservatives. But it’s true! Or, at least, kind of! But it needs to be contextualized, because comparing the exemption application of Reason Alliance, Ltd. (the putative Satanic cult) and Tea Party groups is inapposite.[fn1] Continue reading “Satan, Tea Parties, and the IRS”→
Okay, maybe it wasn’t entirely a bombshell; in our leak–happy environment, it was almost inevitable that we’d eventually see some of Trump’s returns. And this barely counts as a return: it’s just his Form 1040 from 2005 (that is, the first two pages of a return). When I grade voluntary presidential candidate tax disclosures, one year’s Form 1040 realistically gets you a D+; the 1040 says how much you ultimately paid in taxes, but very little more than that. (For example, you can see that Trump had itemized deductions of just over $17 million, but you can’t tell what itemized deductions he took. I mean, is it mortgage interest? state and local taxes? charitable contributions? some combination? Without the full return, we have no way of knowing.) Continue reading “Did Rachel Maddow Break the Law? #TrumpTaxReturns”→
Yesterday, driving my son to swim lessons, I flipped my radio to WDCB, Chicagoland’s jazz radio station. An organ trio was playing something that sounded vaguely familiar. And then they returned to the melody, and it was the Beatles’s “Taxman.” And just like that, two of my favorite things—jazz and taxes—intersected.
Several months ago, Leandra did a great post on the history and context of “Taxman.” And her post yesterday on taxes in a series of novels got me thinking about how often tax shows up in jazz. When I posted about the musical tax canon, I mentioned Fats Waller’s “We the People,” but here, I specifically wanted to look for jazz covers of “Taxman.” And I found two: Continue reading “The Taxman and Jazz Radio”→
On my previous post talking about the the IRS’s announcement that it was putting a moratorium on issuing new regulations and formal guidance, a commenter asked if it was such an odd thing for a new Administration to temporarily pause guidance. After all, who wants to issue guidance before the new Administration’s people are in place and agenda is set, lest the new Administration change its priorities and positions in the coming months?
I didn’t remember any such (formal, at least) pause in 2009, but, when I got home, I decided to look back a few years. I looked at new regulations and revenue rulings in the first month of the Obama, George W. Bush, Clinton, and Reagan presidencies (I didn’t bother with George H.W. Bush, because that was a Republican to Republican switch). Also, because we don’t know how long the current limitations on regulations and other guidance will last, I also expanded my search of revenue rulings for the first three months of the new administrations.[fn1] Continue reading “Past Moratoria on Tax Guidance and Regulations(?)”→
Today’s Tax Notesreports[fn1] that the IRS has announced that it will not release pretty much any new formal guidance (including revenue rulings and revenue procedures) for the foreseeable future.[fn2]
In case you’re unfamiliar with the name “Johnson Amendment” (and I kind of hope you are—it’s a stupid name), that refers to the phrase in section 501(c)(3) that prohibits tax-exempt organizations from endorsing or opposing candidates for office. It was proposed by Senator Lyndon Johnson in 1954, and inserted into the tax code with little fanfare and no legislative history.