IRS Rules Research Articles

Brief of Amicus Curiae Kristin E. Hickman In Support of Petitioners, CIC Services, LLC v. Internal Revenue Service, et al., No. 19-930 (U.S. Supreme Court)

This amicus brief was filed before the United States Supreme Court in CIC Services, LLC v. Internal Revenue Service, No. 19-930, supporting the petitioners on the merits. The issue in the case is whether the Anti-Injunction Act, 26 U.S.C. s. 7421(a), precludes pre-enforcement judicial review of Administrative Procedure Act challenges against Treasury and IRS rules and regulations -- specifically in this case, IRS Notice 2016-66. Building on previous scholarship, the brief argues that statutory text, history, and purpose support a narrow interpretation of the Anti-Injunction Act that harmonizes with the Administrative Procedure Act and allows pre-enforcement judicial review.

Brief of Amicus Curiae Professor Kristin E. Hickman In Support of Petitioners, CIC Services, LLC v. Internal Revenue Service (U.S. Sup. Ct.)

This amicus brief was filed before the United States Supreme Court, supporting the petition for certiorari in CIC Services, LLC v. Internal Revenue Service, No. 19-930. The issue in the case is whether the Anti-Injunction Act, 26 U.S.C. s. 7421(a), precludes pre-enforcement judicial review of Administrative Procedure Act challenges against Treasury and IRS rules and regulations -- specifically in this case, IRS Notice 2016-66. The brief summarizes and expands upon issues raised and arguments made in some of my previous scholarship.

IRS Rules as to Computation of VEBA's UBTI

The IRS ruled that a voluntary employees' beneficiary association may, in computing its unrelated business taxable income, include in its applicable account limit, with respect to medical benefits provided through its plan, a reserve and, as to its set‐aside, the applicable account limit may include medical insurance premiums as qualified direct costs (Priv. Ltr. Rul. 201844005).

IRS Rules (Incorrectly) That Volunteer Time Is Disregarded in Measuring Exempt Functions

IRS Rules (Incorrectly) That Volunteer Time Is Disregarded in Measuring Exempt Functions

IRS Rules Will Not Stop Unfair Hospital Billing and Collection Practices.

New Internal Revenue Service rules that ostensibly limit harsh hospital billing practices provide inadequate protection for many patients by excluding for-profit hospitals and allowing hospitals to determine eligibility for financial assistance.

Oklahoma Establishes Standing to Challenge the Affordable Care Act: District Court Says IRS Rule May Injure Oklahoma as an Employer – Oklahoma ex. rel. Pruitt v. Sebelius

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Likely Benefits from HIFO Accounting

New IRS rules on accounting for cost basis often impose on investors a decision regarding cost basis when selling shares. We investigate in a very practical way the likely benefits from choosing the highest-in, first-out (HIFO) method for tracking shares. Our results show that for realistic scenarios where investors plan for retirement, HIFO accounting can add about 2% to the investor’s total wealth at the retirement date. Above average tax rates and greater volatility increase the value of using HIFO accounting.

More Efficiency and Increased Equity in Taxation under Mayo

This paper addresses the impact of Mayo Foundation primarily from a Public Choice perspective analyzing the impact of the case on the behavior of the major actors in this case specifically and in tax policy generally. The paper suggests that rent-seeking behavior will shift increasing the focus on regulator rent-seeking at the IRS. Furthermore, the IRS's procedures will likely take center stage in light of the increased deference. While it is too early to tell how Congress and the Court will deal with procedural issues that will likely arise as a result of the increased deference, this paper suggests that the IRS will likely bolster its notice-and-comment procedures. There will also be further scrutiny of the IRS position that its regulations are predominantly interpretative and exempt from certain procedures. This paper suggests that the ultimate result will be slightly reduced and altered rent-seeking behavior. Pressure for increased procedure in IRS rule making. Finally the paper looks at the specific facts of the case and analyzes the choice to exclude medical residents from the student exemption. The paper suggests that increasing the sunk cost investment necessary to become a doctor will likely result in higher medical costs. Due to the increased barrier to entry it is plausible that this policy could not only be socially unproductive but could lead to a net loss for taxpayers. The increased deference will likely make tax policy more effective, efficient and consistent. It will also likely reduce rent-seeking in tax policy. That said, the particular case of FICA taxes on medical residents should be empirically studied because while there are strong policy reasons supporting allowing young doctors to begin building social security credits, it plausible that this tax could ultimately net a loss for tax payers as a whole. Ultimately it is an empirical question that should be answered. As a final matter, it is likely that such cost/benefit analysis for tax policy might be advantageous to ensure that policies are in the best interest of tax payers. Such cost/ benefit analyses are required by executive order for other regulations. This order should perhaps be expanded to cover IRS interpretative rule making, or even better congress should include IRS rule making in their bill on the matter.

The Big, Bad FBAR: Reporting Foreign Bank Accounts to the U.S. IRS

The IRS and other U.S. agencies have long seen foreign bank accounts of U.S. persons as potential instruments for tax evasion and other violations of U.S. law. A significant tool for uncovering these violations is a requirement that persons 'subject to the jurisdiction of the United States' must annually report to the IRS any 'financial interest in, or signature or other authority over, a bank, securities or other financial account in a foreign country.' This annual report is made to the IRS on Form TD F 90-22.1 ('Report of Foreign Bank and Financial Accounts'), often known as FBAR. Although the FBAR is filed with the IRS, subject to IRS rules, governmental uses of the reported information are not limited to tax enforcement.The IRS revised its rules on FBARs for the calendar year 2008, significantly increasing the number of people required to file it and the number of foreign accounts required to be reported. Because penalties for failing to file complete and accurate FBARs can be heavy, these revisions have provoked widespread concern among lawyers, accountants, and their clients. This paper, an except from the treatise, Boris I. Bittker & Lawrence Lokken, Federal Taxation of Income, Estates & Gifts, explains the current rules on FBARs.

US Tax Scene: IRS Rules on Check-the-Box Status of Japanese TYKs

US Tax Scene: IRS Rules on Check-the-Box Status of Japanese TYKs

The Ratings Implications of the IRS's Changes of the Simplified Service Cost Method Rules for Electric Utilities

A number of electric utilities have recently disclosed that they would be affected by changes in the IRS's simplified service cost method rules, resulting in repayment of tax benefits claimed in prior years. Based on disclosures to date, although these payments will affect key credit metrics, they do not appear to be large enough to affect ratings.

US Tax Scene: IRS Rules Treaties Allow Taxation of Non-US Partners

US Tax Scene: IRS Rules Treaties Allow Taxation of Non-US Partners

US Tax Scene: IRS Rules Foreign Insurers Must Account for Trusteed and Non-Trusteed Assets Not Listed in NAIC Statement in Determining ECI

US Tax Scene: IRS Rules Foreign Insurers Must Account for Trusteed and Non-Trusteed Assets Not Listed in NAIC Statement in Determining ECI

US Tax Scene: IRS Rules on Captive Insurance Arrangements

US Tax Scene: IRS Rules on Captive Insurance Arrangements

IRS rules organlzation exempt from conversion rule, imposes unnecessary filing requirement

IRS rules organlzation exempt from conversion rule, imposes unnecessary filing requirement

An overview of ERISA

Provides a brief history of the Employee Retirement Income Security Act (ERISA). Briefly covers the four main issues of employee benefits protection, IRS rules, jurisdiction and termination insurance. Outlines the position of pension and then goes on to consider recent updates to the law. Discusses the main problems of the act and attempts to predict the likely future over the next 25 years. Concludes that there are several potential developments still pending but the best course for any business is to concentrate on looking after its most valuable asset, the employee.

IRS rules that utility services are excludible rental income, flowing through joint ventures

IRS rules that utility services are excludible rental income, flowing through joint ventures

IRS rules on health care joint venture involving public charities

IRS rules on health care joint venture involving public charities

IRS rules on health care ancillary joint venture involving ch arltab le organization and physicians

IRS rules on health care ancillary joint venture involving ch arltab le organization and physicians

Irs rules physician compensation not private inurement nor undue benefit

Irs rules physician compensation not private inurement nor undue benefit