Federal Tax Research Articles

The problem of the Federal budget deficit and tax mechanisms for resource provision of economic development

The problem of the Federal budget deficit and tax mechanisms for resource provision of economic development

Nondelegation, Original Meaning, and Early Federal Taxation: A Dialogue With My Critics

Nondelegation, Original Meaning, and Early Federal Taxation: A Dialogue With My Critics

Online Appendix to "Nondelegation, Original Meaning, and Early Federal Taxation: A Dialogue with My Critics"

Online Appendix to "Nondelegation, Original Meaning, and Early Federal Taxation: A Dialogue with My Critics"

Traditional and GenAI Text Analysis of COVID-19 Pandemic Trends in Hospital Community Benefits IRS Documentation

The coronavirus disease 2019 (COVID-19) pandemic presented unique challenges to the U.S. healthcare system, particularly for nonprofit U.S. hospitals that are obligated to provide community benefits in exchange for federal tax exemptions. We sought to examine how hospitals initiated, modified, or disbanded community benefits programming in response to the COVID-19 pandemic. We used the free-response text in Part IV of Internal Revenue Service (IRS) Form 990 Schedule H (F990H) to assess health equity and disparities. We combined traditional key term frequency and Hierarchical Density-Based Spatial Clustering of Applications with Noise (HDBSCAN) clustering approaches with a novel Generative Pre-trained Transformer (GPT) 3.5 summarization approach. Our research reveals shifts in community benefits programming. We observed an increase in COVID-related terms starting in the 2019 tax year, indicating a pivot in community focus and efforts toward pandemic-related activities such as telehealth services and COVID-19 testing and prevention. The clustering analysis identified themes related to COVID-19 and community benefits. Generative Artificial Intelligence (GenAI) summarization with GPT3.5 contextualized these changes, revealing examples of healthcare system adaptations and program cancellations. However, GPT3.5 also encountered some accuracy and validation challenges. This multifaceted text analysis underscores the adaptability of hospitals in maintaining community health support during crises and suggests the potential of advanced AI tools in evaluating large-scale qualitative data for policy and public health research.

Federal Tax Procedure (2024 Student Ed.)

Federal Tax Procedure (2024 Student Ed.)

Автоматизация налогового администрирования как инструментарий налоговой политики государства

The scientific article presents the formation and application of digital tax administration tools within the framework of the implementation of the strategic concept of the Federal Tax Service of the Russian Federation, thanks to which informed tax decisions can be made. An effective tax system is considered as an integral part of a functioning economy aimed at maintaining a stable tax policy of the state and creating the basis for long-term economic growth. Automation of tax administration is equally important for increasing decentralized tax relations, reducing the management burden for the taxpayer based on digital technologies between various participants in business processes.

Strengthening fiscal decentralization in Russia: causes of the 2020 failure and prospective directions

Relevance. Strengthening fiscal decentralization is viewed as a crucial strategy to foster the economic development of Russian regions. Research Objective. The research aims to assess the potential impact of redistributing tax revenues, particularly VAT, among various budget levels. Data and Methods. The study employs regression analysis to investigate the correlation between the Gross Regional Product (GRP) of Russian regions and the expenditures of their consolidated budgets. A comparative analysis is also conducted, using data from the Federal Tax Service on VAT receipts to the federal budget and data from the Federal State Statistics Service on GRP and expenditure components of regional budgets from 2005 to 2021. Results. The research confirms the Russian government’s concerns regarding a possible increase in economic disparities if 40% of VAT is shifted to sub-federal levels. It reveals the negative impact that such a measure would have on specific regions. Instead, a more promising approach is to implement a special budgetary regime in select regions to stimulate their development. Conclusions. The study showcases adverse effects associated with transferring 40% of VAT to the sub-federal level. It proposes a mechanism to enhance fiscal decentralization in Russia, aiming to advance regional economic development, address economic disparities among regions, and offset any potential reduction in federal budget revenues.

ЦИФРОВАЯ ТРАНСФОРМАЦИЯ КАК ОСНОВА МОДЕРНИЗАЦИИ НАЦИОНАЛЬНОЙ НАЛОГОВОЙ СИСТЕМЫ

The article discusses the main functions and services of tax administration, as well as the possibilities of their modernization as a result of the introduction of digital technologies. It has been proven that digital tax transformation is a continuous process that requires the implementation of strategic plans, pilot programs, as well as attracting large investments not only for the tax administration system, but also for the e–government project. The roadmap for digitalization of tax administration should not be limited to technological progress of the federal tax service alone, but should also apply to the financial system of the state as a whole.

К вопросам обращения взыскания по налоговой задолженности в исполнительном производстве

The positions of various authors on the issues of enforcement measures and actions used by bailiffs and tax officials to collect tax debts are considered. The possibility of collecting tax debt from a debtor-citizen for his economic activities in a liquidated, bankrupt company or in the absence of its property, when the citizen appropriated financial amounts for himself without paying taxes on them, is touched upon. It is proposed to transfer the powers to foreclose on tax debts and compile statistical reports from the Federal Tax Service to the Federal Bailiffs Service, leaving the function of “seizure” of the debtor’s property at the claim stage of settling tax debts to the Federal Tax Service, so that the debtor would subsequently be unable to avoid its collection by a bailiff. In this regard, it is expected to be quite logical to reduce the number of staff in the Federal Tax Service and increase it in the Federal Bailiffs Service. The introduction of a ban on registration of shell companies is justified by the insufficiency of insurance financial and (or) property assets. The position of the inexpediency of judicial collection of funds by a bailiff due to a debtor from a third party under judicial acts is substantiated, if there is confirmation of financial or property funds due to the debtor by documentary evidence collected at the request of a bailiff or provided by the recoverer – the Federal Tax Service, since foreclosure by a bailiff on these funds is possible and without legal recourse.

Проблемы и перспективы налоговой политики в целях устойчивого развития регионов

The subjects of the research are the policy of the federal center in relation to the regions and its impact on ensuring sustainable development and economic growth in Russia. The purpose of the work is to identify the reasons for the insufficient effectiveness of regional tax policy, in the development and justification of measures that contribute to solving existing problems in ensuring sustainable economic development. The essence of two terminologically similar concepts is analyzed: "regional tax policy" and "regional tax policy" – and it is proved that they have a fundamentally meaningful difference. The substantiations are given, indicating that the current regional tax policy does not fully contribute to increasing economic activity, strengthening the responsibility of regional and municipal authorities, ensuring the sustainable development of the relevant territories and generates dependency. It has been established that the achievement of sustainable development of the territory can be ensured on condition of increasing the level of independence of regional and local budgets and increasing the share of their own, and primarily tax, revenues. It is proved that a shift in emphasis is required from financial assistance to regions and municipalities towards increasing the share of their own tax revenues, as well as decentralizing the tax powers of government authorities by giving regions and municipalities their rights to tax administration and management of elements of federal taxes received by the relevant budgets. Conclusions are drawn that further improvement of regional tax policy should be carried out by practical solutions to the problem of increasing the budgetary independence of regional and local authorities, increasing the efficiency of their activities, responsibility and interest in the sustainable development of the economy of the territories and accelerating the pace of development of the Russian economy as a whole.

Development of the methodology of taxation of agricultural enterprises in the context of digitalization

According to the norms of Russian legislation taxpayers by default fall under the general system of taxation. Developing financial and economic activities, enterprises, including agricultural enterprises can apply different tax regimes: the transition, for example, to a simplified taxation system, unified agricultural tax, patent system, etc., is carried out at the initiative of the payer, i.e. is of notification nature. Since for the business owner the decisive moment is the total tax payments (tax burden), the issues of its optimization are of particular relevance. In the course of work we analyzed and systematized the norms of tax legislation of the Russian Federation and the Republic of Tatarstan, processed data on taxes and fees posted on the official website of the Federal Tax Service of Russia, using the economic and statistical method. The result of the research is the choice of optimal tax burden for agricultural enterprises of small business including the use of information technologies in order to increase the efficiency of their activities.

Amicus brief of the center for taxpayer rights, the community tax law project, the UC Hastings low-income taxpayer clinic and the Villanova Federal Tax Clinic in support of the petitioner (no.12982-20)

Amicus brief of the center for taxpayer rights, the community tax law project, the UC Hastings low-income taxpayer clinic and the Villanova Federal Tax Clinic in support of the petitioner (no.12982-20)

Federal Tax Procedure (2024 Practitioner Ed.)

Federal Tax Procedure (2024 Practitioner Ed.)

Особенности налогообложения операций с цифровой валютой

The subject of the study is the taxation of transactions with digital currency. The objectives of the work are to establish the key features of taxation of transactions with digital currency in the Russian Federation, to determine approaches to making changes to regulatory legal documents. The relevance of the work is due to the accelerating development of digital technologies, in which the legislator does not have time to develop and adopt appropriate legislative acts. Based on the analysis of the legislation of the Russian Federation, draft laws, letters from the Ministry of Finance and the Federal Tax Service of Russia, program documents of the Bank for International Settlements, scientific publications of Russian and foreign researchers, the concepts of cryptocurrency, digital currency, digital financial assets, mining of cryptocurrencies for tax purposes have been clarified. The differences in the interpretations of the concepts of various types of digital assets according to the method of creation and the purposes of their use are highlighted. The features of taxation of transactions with digital assets in terms of value added tax, corporate income tax, and tax paid under the simplified taxation system are described. It is concluded that for the purposes of calculating VAT, digital currency can be qualified as property. Cryptocurrency should be defined as a digital currency. When mining cryptocurrencies using mining equipment that is actually located on the territory of the Russian Federation, the service for organizing the issuance of digital currency takes place on the territory of the Russian Federation. It is proposed to exclude contradictions in the definition of the law enforcement of new digital technologies in the country's economy from the legislation, which will allow subjects of foreign economic activity to use digital technologies in the legal field, without expecting possible negative legal consequences.

Organization of the VAT taxation and tax control system in the digital economy

In the article, the author investigates the question of the possibility and necessity of using innovative digital solutions in organizing the procedure of work of tax authorities with taxpayers in terms of applying the 0% rate and reimbursement of value added tax. The relevance of the study is justified by the changed conditions for the application of the VAT refund application procedure, the reduction of the period of desk inspection and the preparation of registers of documents confirming the 0 percent rate through the use of information services of the Federal Tax Service. The research methodology is based on the generalization and analysis of regulatory documents, as well as the practical experience of maritime transport enterprises, customs and tax authorities in terms of digitalization of individual processes. To achieve this goal, the author has considered in detail the new procedure for VAT refund. The legal justification of the procedure and reasons for carrying out tax control measures aimed at confirming the right to apply the 0 percent tax rate and tax deductions is analyzed.The necessity of further transformation of interaction between taxpayers and tax authorities in the direction of the use of digital technologies, including in the organization of tax control, is substantiated. Based on the results of the study, the author made reasonable conclusions about the need for further research and elaboration of issues on the implementation of the possibility of assessing the application of a new declarative procedure for tax refund before filing a value-added tax declaration, the legal status of the "Office – Exporter" service and the possibility of using participants in foreign economic activity providing transshipment and forwarding services in order to form a register documents confirming the 0 percent rate. The improvement of the existing information services of the Federal Tax Service and the introduction into commercial operation of the new service "Exporter's Office" will provide comfortable conditions for tax administration to conscientious taxpayers, reduce the administrative burden, shorten the period of desk inspection, eliminate technical errors and stop intentional actions aimed at illegal VAT refund and the application of the 0% rate.

Not Granting Installment Payments of Federal Taxes or Revocation of Tax Incentives or Public Subsidies as a Non-monetary Antitrust Penalty

Not Granting Installment Payments of Federal Taxes or Revocation of Tax Incentives or Public Subsidies as a Non-monetary Antitrust Penalty

ИНСТРУМЕНТЫ НАЛОГОВОГО АДМИНИСТРИРОВАНИЯ В ПРОЦЕДУРЕ БАНКРОТСТВА НЕСОСТОЯТЕЛЬНЫХ ОРГАНИЗАЦИЙ

The article analyzes the current tools of tax administration in the bankruptcy procedure of insolvent organizations to ensure bankruptcy procedures, as well as the results of the work of the Federal Tax Service of Russia to ensure bankruptcy procedures for 2022-2023. As a result of the study, some aspects of the low efficiency of the functioning of the bankruptcy institution in the Russian Federation were identified, new tools were proposed to improve the tax administration of bankruptcy procedures for insolvent organizations in order to form a balance of interests of participants in the bankruptcy procedure. The implementation of the proposed priority directions will allow to identify circumstances that negatively affect the effectiveness of tax administration in the bankruptcy process of insolvent organizations, increase the level of confidence in the Federal Tax Service of Russia as an authorized body in the bankruptcy procedure and in the institution of bankruptcy as a whole. This step will reduce the working time of tax officials, minimize paper document flow between participants in the bankruptcy procedure, and narrow the “gray” field in the field of bankruptcy of insolvent organizations. To date, bankruptcy has become a macroeconomic factor that has a significant impact on a significant part of the country’s economy.

SPATIAL AND REGRESSION ANALYSIS OF PROVISION OF COMMERCIAL LEGAL SERVICES IN RUSSIAN CITIES

The article examines the relationship between the number of employees at law firms, or lawyers, and the provision of legal services in Russian cities. It aims to identify whether the increase in the number of lawyers leads to an enhanced level of legal services provision. In addition, it attempts to discern geographical patterns in the provision of legal services in Russia. To achieve these objectives, open data from the Federal Tax Service of Russia is utilized as the primary source of information. Linear regression is employed to estimate the hypothesized relationship, and data plotting and mapping are used to visualize it. The study demonstrates an overall positive square root relationship between the number of lawyers and the provision of legal services in cities, as well as a linear relationship between these variables in distinct city population size groups. It supports a widely held proposition about the pivotal role of the largest cities in the provision of services and also offers partial confirmation of the commonly accepted view about the positive impact of service concentration on their delivery. However, the study argues that there are multiple approaches to achieving a high level of legal services provision, with an increase in the number of lawyers being only one of the potential options. The findings of this research may serve to inform data-driven policymaking decisions of governmental bodies.

Keeping the Perpetual in Florida's Conservation Easements

Hundreds of millions of dollars are being invested in the protection of the Florida Wildlife Corridor and other environmentally sensitive lands. One of the primary tools being used to accomplish this protection is the perpetual conservation easement, which is touted to landowners and the public as providing a permanent guarantee that the subject lands will never be developed. There is a very real danger, however, that perpetual conservation easements in Florida may not, in fact, be perpetual, and the protections put in place today will vanish over time—along with the public funds invested therein—as government and nonprofit holders “release” the easements in the face of economic, political, and development pressures. Florida landowners may also find themselves unable to benefit from the subsidies offered through federal tax incentive and purchase programs due to an inability to qualify for those programs, which mandate that strict limits be placed on the release or extinguishment of conservation easements. This Article raises the alarm regarding the potential lack of durability of conservation easements in Florida, and explains the significant disconnect between what landowners and the public are being told about the permanence of conservation easements and the realities of existing law. This article also seeks to address these problems by recommending two steps that should be taken now to ensure that perpetual conservation easements in Florida will, in fact, be perpetual: (i) revise Florida law to place clear limits on the extinguishment or amendment of perpetual conservation easements, as has been done in several other states, and (ii) draft conservation easements to make clear that the grantor, the grantee, and their successors in interest are bound by the easement terms. With hundreds of landowners reportedly waiting to grant perpetual conservation easements to protect the Florida Wildlife Corridor, the time to act is now.

A study of macroeconomic variables that effected employment in the United States from 1948 to 2021

The paper provides an analysis of important U.S. macroeconomic variables that effect aggregate employment. The paper seeks to answer the question “What are the deter¬minants of changes in aggregate employment in the United States of America (U.S.)?” This is an important research topic because significant increases in unemployment can have a profound effect on an entire society, not just on its unemployed workers. When employment declines, public health declines, crime increases, suicides increase, and public revenues decrease. This paper uses quarterly data from 1948-2021 to estimate the effect of important macroeconomic variables on aggregate employment. The macroeconomic variables include personal consumption expenditures, U.S. federal government expenditures, nominal GNP, international trade (imports plus exports), M3 money stock, the mini-mum wage level, non-residential fixed investment, non-manufacturing employment, and U.S. federal tax receipts.