It’s a chilly Sunday morning here in Philadelphia. I thought a bit of housekeeping might be in order, so I’m opening up the ol’ taxgirl (e)mailbag. I have a bunch of non-technical tax questions which were submitted as “ask the taxgirl” questions but I thought it made more sense to answer them in one big post. So grab a cup of coffee and pull up a chair!

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Taxpayer asks:

Dear taxgirl, why did you decide to become a lawyer? I’m thinking about going to law school this fall and I’d love your thoughts.

taxgirl says:

I watched a lot of TV. Seriously. I didn’t really know any lawyers growing up so I based most of my impressions of lawyers on what I saw on TV or read in books. I was a big fan of Perry Mason and, of course, Nancy Drew’s dad, Carson (what girl didn’t have a crush on him?). But mostly, I loved the idea of doing something that made a difference. Remember that great scene in To Kill a Mockingbird?

I wanted to be able to stand tall like Gregory Peck (the tall never happened) and say things that mattered, take a stand for justice. Of course, that’s not exactly what happens in the legal profession – it took me awhile to figure that out. But at the end of the day, despite the lawyer jokes and bad press, I love what I do. I help people. And that matters to me.

That said, the legal market is really tough now. Law school can be expensive (I’m still paying off my loans) and jobs can be hard to come by. Make sure that you really want to go – and you’re not just going because your parents want you to (we had a lot of that in law school) or because you’re a smart kid and don’t know what else to do (we also had a lot of that in law school).

If you’re not completely sure, my advice is to talk to a bunch of lawyers: small firm lawyers, big firm lawyers, government lawyers. Intern in a law office. Sit in on a law school class or two. Then make your decision. Good luck!

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Taxpayer asks:

Have you ever filed your taxes late or owed taxes? I’m just wondering.

taxgirl says:

Yes and yes. Our tax system, as it exists, is self-governing. That means there’s no one standing over you screaming at you to file and pay every year – or every quarter in the case of small businesses and those who owe estimated taxes – and I’ve been both. Sometimes the mistake is on the employer side (as when I was first in Philly, my NJ boss didn’t withhold wage tax) and sometimes the mistake is on the employee side (as when you just get overwhelmed and forget a deadline). Mistakes happen. I always tell clients that there’s no shame in it: just fix them.

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Taxpayer asks:

I’m a 2L and am thinking about classes for next semester. Which tax classes do you recommend? Any to avoid?

taxgirl says:

I loved Federal Estate and Gift Tax and Tax Policy, hated Partnership Tax (though it is handy). I’d recommend starting off with baby tax (federal income tax) and seeing which aspects of tax law appeal to you. I also recommend taking some non-tax courses, too. I never intended to be a tax lawyer but I really enjoyed a class that I signed up for just because it fit my schedule and it wasn’t litigation-related. So don’t stack up on tax in the beginning, you never know. Try a bit of everything.

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Taxpayer asks:

You talk a lot about living in Philadelphia but you call yourself a Southern girl. What am I missing?

taxgirl says:

Easy. I grew up in North Carolina. I’ve lived in Hampstead (early years), Durham (high school) and Raleigh (college). I moved to Philadelphia to go to law school and loved it so much that I stayed.

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Taxpayer asks:

What’s the strangest deduction that you’ve ever seen on a tax return?

taxgirl says:

Hmm. I’ve seen some odd things. But one that jumps out at me is pet therapy – as in therapy for a pet. While I understand that pets are like children (we joke that our dog is our first born), you can’t claim pets or related expenses on your tax return.

And then there’s flat out lies like the guy who claimed his Disney cruise was a business expense (he ran a car dealership).

One thing you can say about tax law: it’s never boring.

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Taxpayer asks:

I see you practice with your husband. Do you talk tax at home? Just curious.

taxgirl says:

Yes, but he doesn’t listen. My husband isn’t a tax lawyer, he practices international and corporate law. But that doesn’t stop me.

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Taxpayer asks:

I saw this and thought of you: http://www.abajournal.com/magazine/the_25_greatest_legal_tv_shows What’s your favorite TV law show? Are there any tax lawyers on TV?

taxgirl says:

I did see it, thanks. Um, my favorite? I used to love LA Law – what a great cast! I also used to watch Perry Mason reruns with my grandfather and Matlock since it was filmed in my hometown. In law school, I watched Ally McBeal and The Practice even though they were completely unrealistic. I actually don’t watch any legal shows now that I practice, they drive me nuts.

I can’t think of any tax lawyers on TV off the top of my head. My guess is that the work doesn’t seem glamourous enough. “Watch me research this deduction!” It just doesn’t have the same on air appeal as, say, defense work. But hey, Hollywood, I am available.

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That was fun and the mailbag is a little bit lighter now… Thanks for writing in!Similar Posts:

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The Internal Revenue Service invites proposals for original papers for the 2010 IRS Research Conference. Topics can include tax compliance, taxpayer burden, improving tax administration, and the nature and behavior of the taxpayer population.

You don’t have to be a tax pro to enter. Proposals are welcome from government and non-government researchers. One author from each winning paper will receive funding for travel and possibly, honoraria.

The proposal deadline is December 1, 2009. The deadline for the actual conference papers will be in May with time for revisions through August.

To make a submission, send:

• A title
• An abstract not to exceed two pages in length
• Names and affiliations for all authors
• An e-mail address and phone number for at least one contact author
• Proposals for complete sessions of three papers, a session organizer, and a discussant are also invited.

Please e-mail your submission with “proposed paper” in the subject line. For more info, see the IRS web site.

Janice M. Hedemann
Chair, 2010 IRS Research Conference

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The University of Southern California Gould School of Law has announced that it will now offer a graduate Tax Law program. Upon completion of 24 units, students will receive a Master of Laws (LL.M.) in Taxation degree. Students may begin applying for fall 2010 enrollment on a full-time or part-time basis in October 2009.

“We are very pleased to add this exciting new degree program to our repertoire,” said USC Law Dean Robert Rasmussen. “Through our program, students will gain a deep understanding of the policies that form the basis of tax laws. And in these tough economic times, lawyers will definitely benefit from specializing in this key area.”

The LL.M. in Taxation program includes a variety of courses ranging from Bankruptcy Taxation and Tax Policy to International Taxation and Income Tax Timing Issues.

USC Law is the only top 20 law school on the West Coast and one of only six of the top 20 law schools in the nation to offer an LL.M. in Taxation.Similar Posts:

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More back to school!

The ABA Section of Taxation Young Lawyers Forum has released the 2009 Tax Challenge Problems, as well as lots of updated info for the 9th Annual Law Student Tax Challenge. An alternative to traditional moot court competitions (and boy, as someone who hated the entire moot court experience, I think this is great) the Annual Law Student Tax Challenge challenges teams of students to solve problems that might arise in the practice of tax law.

I’ve read the problems – they’re fun! You can win a free trip (including airfare and accommodations for two nights) to the Section’s 2010 Midyear Meeting, January 21-23 at the Grand Hyatt in San Antonio, TX. On the plus side, it’s a free trip to somewhere warm in the middle of January. On the down side? You’ll have to defend your submissions before a panel of some of the country’s top tax lawyers. But that’s not much of a down side when you consider the tremendous exposure you’ll gain.

Check out the competition’s web site for more information. And be mindful of these upcoming deadlines:

Nov. 13, 2009: Written Submissions Due

Dec. 21, 2009: Semi-Finalists Notified

Jan. 22, 2008: Oral Rounds at Section of Taxation Midyear Meeting

Good luck!Similar Posts:

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Taxpayer asks:

Hi taxgirl,

I love reading your blog. I think you’re funny and insightful. I’ve learned more from your site than from a whole semester of tax law.

I actually just graduated from law school and I am really interested in writing for your site. I checked out the “about” and “find me” tabs but I don’t see any information about how you can apply for an internship. So, what does a soon to be lawyer have to do to work for you?

Taxgirl says:

Gosh. *blushing* Thanks so much for the kind words.

Wait a sec and I’ll forward your email to my staff… Done. And um, got it. You see, I’m taxgirl.com, the whole taxgirl.com. Just me. There is no staff. Nobody else writes or researches anything on my site as taxgirl. No ghost writers. No editors (clearly). No interns. And I don’t expect that to change any time soon, though I am flattered that you asked.

I do accept guest posts from other writers. You don’t have to be a tax attorney to submit something. I’ve published freelancers, CPAs and law students on my site – each of whom is clearly identified as a guest author when their piece is published. If you have something in mind that you’d like to work on and send (maybe a resume builder, since I’m guessing that you’re waiting for the bar results?), please do pass it along.

And that goes for everyone. If you have a guest post in mind, drop me a note. I don’t expect a thesis or a white paper but I do look for a well written piece that shows thoughtfulness and point of view.

Best of luck in your legal career and again, thanks for the charitable comments. I appreciate it very much!

Like any good lawyer, I need to add a disclaimer: Unfortunately, it is impossible to give comprehensive tax advice over the internet, no matter how well researched or written. Before relying on any information given on this site, contact a tax professional to discuss your particular situation.

Have a question? Ask the taxgirl! – Now on Facebook!

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ask the taxgirl, internships, guest posts, blogging

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The American Bar Association Section of Taxation has announced that it is accepting applications for its Public Service Fellowship program.

The Section will award two fellowships for 2010-2012 to recent law school graduates or judicial clerks. To qualify, you need to obtain a position with a qualifying “sponsoring organization” before applying for the program. Both LLM and JD candidates are eligible to apply.

There’s lots of good stuff about the program on the ABA’s official announcement, so check it out.

Applications are due August 1, 2009, so hurry!Similar Posts:

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New job opportunities have been posted on the tax jobs page – take a peek!Similar Posts:

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Congrats to Jerome Glasser, a 3rd-year law student in the Virginia Law Reader Program Sponsored by Juan Chardiet, Esq

“I’m a-livin’ in a box… I’m a-livin’ in a cardboard box…”

Lyrics to a real, 1987 song entitled: “LIVING IN A BOX” (Vere/Piggot)

Condolences on the death of your spouse;
Now get crackin’ on sellin’ your house;
Oh, you thought you’d retire…?
No! Like your spouse, your grace period’ll expire,
So get going, there’s no time to grouse!

The adage that “the only things sure in life are death and taxes” long ago became hackneyed. A twist on this notion, however, is the actual tax fact that in our American life, it is quite likely that your spouse will “bet the farm”, if you “buy the farm”…

You’ve worked hard, lived the American dream, got married, bought a house, fretted over finances, saved-up a nest egg, generally stressed out and unfortunately-you’ve just keeled over. It was a good life. Let’s say you’re the male breadwinner leaving a widow. Now the house is too big for your sole surviving partner–and filled with too many memories, as well, and she decides that she wants to sell. Guess what? The friendly IRS has already contemplated this situation! Incredibly, though, the IRS has perversely structured a policy that no reasonable person would have imagined possible, by setting up a de facto deadline for the grief-stricken surviving spouse to sell the couple’s primary residence within an arbitrarily established time frame in order to avoid draconically adverse tax consequences.

Just so that no one can say that the IRS doesn’t have a “heart”, apparently the powers-that-be in this august institution did see fit to modify this policy so that as of December 31, 2007, a surviving spouse could qualify for the up-to-$500,000 exclusion on sales and exchanges of the primary residence if the sale occurred not later than 2 years–rather than the original 1 year!–after the spouse’s death, provided the requirements for the $500,000 exclusion were met immediately before the spouse’s death and the survivor has not remarried as of the date of the sale. (Code Sec. 121(b)(4)). Prior to December 31, 2007, the up-to-$500,000 exclusion was available only if a husband and wife filed a joint return for the year of sale; thus, if the home was sold in a year subsequent to the year of a spouse’s death–when a joint return could no longer be filed–the surviving spouse could only get a maximum homesale exclusion for him or herself in the amount of $250,000.

Yes, unless your (now ex-)wife gets-a-move-on her plans to sell the house, she could wind-up getting socked with a heavy tax punch if the sale is not made prior to 2 years following your death. It should be emphasized that the measuring period is from the time of your death, and a sale or exchange in the second tax year following your death will not qualify for the relief provision if it is made more than 2 years from the actual date of your death.

Why is this? (Translation: This is not necessary!) If the IRS is actually willing to grant relief, it is borderline unconscionable to impose upon a grieving person the need to quickly make important life decisions, such as determining if he or she wishes to sell the couple’s primary residence, purchase or rent a new residence, or even move into a retirement community. It is unjust to burden a surviving spouse who typically is older, mentally frail, lonely and depressed, grappling with a new identity in the world, concerned about making every dollar count for the rest of his or her life, with the additional anxiety of having to figure out whether even to attempt to grab the “brass ring” of potential tax savings. The operative word in the previous sentence is “potential”, because even if the surviving spouse elects to try to sell the home in order to try to benefit from the current IRS policy, there is no guaranty that those efforts will ultimately yield a successful outcome…

Dangling the option of typically substantial tax savings in the face of a wounded person in order to unnecessarily induce prompt action might conceivably be interpreted as “sadistic”. Certainly, the “positive” spirit of the recent policy modification-which appears to be a concession to the ludicrous original 1-year time limitation-is lost in light of the continued existence of ANY time frame related to this circumstance. It seems clear that the IRS recognized that the 1-year time frame was unreasonable, so it modified the grace period to 2 years instead of acting as it should have by granting a lifetime relief provision to the surviving spouse; either hunt the prey, or confer upon it amnesty, because a “head start” extension in the hunt from 1 to 2 minutes neither grants solace to the prey, nor permits the hunter to be depicted in a positive fashion.

No suggestion is espoused that no tax be levied on the sale or transfer of the marital residence; this would be as imprudent as trying to deny the Reaper his due. Regulations ought to be structured, though, so that if the IRS does indeed recognize the appropriateness of extending a concession and wishes to do so, it should be offered absent any time constraints relative thereto.

If the IRS will not remedy this blatantly unfair policy, since death is often unforeseen, if I might put my future wife-if I can ever get one (I’m saving up now so I can get a really good one)-in the position of having to make the decision whether to sell our future marital residence within the acutely truncated period of 2 years after my death, I’m going to propose to her that we adopt one of two options, either: 1) we keep our home perpetually in sell-ready condition in anticipation of my unexpectedly kicking the bucket; or 2) we live together in a valueless, easily discardable cardboard box. To act otherwise would be simply inconsiderate.

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If you’re currently a law or paralegal student, don’t forget to enter the “Win an A in Tax Law” contest on taxgirl! You can win some amazing prizes including books, speakers and computer storage. And oh, yeah, an A.

To clarify (since I’ve been asked):

• Yes, LLM students can apply.
• No, you don’t have to be taking tax this semester.
• And no, you don’t have to use Blue Book cites (shudder). It’s a blog post, not a brief. Source appropriately, but seriously, don’t overdo it (nobody wants to read that).

For more information, including a list of prizes, refer to the original post. Hurry, contest ends April 10. I’ll leave the post up as a sticky until then…Similar Posts:

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Taxpayer asks:

Can lawyers, students studying for their bar check into others tax returns and see how much they received back from their taxes for any given year?

Taxgirl says:

As I understand it, you’re asking whether you can snoop around and see how much other people paid or received in taxes…

Um, no. A big no. Tax returns are not public record unless voluntarily disclosed to the public for purposes of, say, running for office.

Even a tax pro representing a client cannot have access to taxpayer records without the express written consent of the taxpayer via form 2848 (IRS form of Power of Attorney). In some cases, a non-IRS Power of Attorney may be accepted.

Those eligible to sign a form 2848 are:

• Attorney
• Certified Public Accountant
• Enrolled Agent
• Officer of a corporation
• Certain Full-Time Employees (for example, Comptroller or Accountant)
• Family Member (spouse, parent, child or sibling).
• Enrolled Actuary
• Unenrolled Return Preparer
• Enrolled Retirement Plan Agent

The only exceptions on the form 2848 for students are those participating in LITCs and STCPs.

And just because I used to be a law student and I know how you think, an attorney is defined as “a member in good standing of the bar of the highest court of any state, possession, territory, commonwealth, or of the District of Columbia” – so law students sitting for the bar do not qualify.

Like any good lawyer, I need to add a disclaimer: Unfortunately, it is impossible to give comprehensive tax advice over the internet, no matter how well researched or written. Before relying on any information given on this site, contact a tax professional to discuss your particular situation.

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