Trump’s Upcoming Refusal to Leave Office: The Good News

NEIL H. BUCHANAN

In this two-part series of columns, UF Levin College of Law professor Neil H. Buchanan discusses some new reasons for guarded optimism that Americans are beginning to recognize—and thus might be able to mitigate—the danger Donald Trump represents to American democracy. In this first part, Buchanan grounds his guarded optimism in Joe Biden’s expressly voicing concern that Trump will not leave the White House if he loses the election.

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How the President and Attorney General Could Have Avoided the Geoffrey Berman Debacle

VIKRAM DAVID AMAR

Illinois Law dean and professor Vikram David Amar comments on the recent dispute over the U.S. Attorney for the Southern District of New York and explains what President Trump and Attorney General Barr could have done to avoid the problem altogether. Amar describes a process that, if followed, could have allowed the administration to appoint their first-choice candidate without causing the controversy in which it now finds itself.

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Estate of Arthur E. Kechijian v. Commissioner

Dockets: 18-2277, 18-2402

Opinion Date: June 23, 2020

Judge: James Harvie Wilkinson, III

Areas of Law: Business Law, Tax Law, Trusts & Estates

After the tax court determined that petitioners failed to report approximately $41.2 million of compensation income that they realized when certain restricted stockholdings that they owned became substantially vested in January 2004, the tax court upheld the Commissioner's decision to impose accuracy-related penalties for negligence and substantial understatement of tax liability, and denied petitioners' post-trial attempt to offset their underreported income with various net operating loss carrybacks. The Fourth Circuit affirmed the tax court, holding that the tax court did not err in holding that petitioners each realized and were required to report $45.7 million of taxable income when their UMLIC S-Corp. stock substantially vested in taxable year 2004. In this case, even if the Surrender Transactions could somehow be seen as rescinding petitioners' employment and compensation agreements with UMLIC S-Corp., the court agreed with the tax court's conclusion that those transactions were totally devoid of economic substance and must be disregarded for federal income tax purposes. The court also held that the tax court did not err in upholding the accuracy-related penalties imposed by the Commissioner. Finally, the court rejected petitioner's claim that the tax court erred in refusing to consider their net operating losses (NOL) carryback claim during post-trial computation proceedings conducted pursuant to Tax Court Rule 155.