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Winter 2013 Committee on Government Submissions Winter 3 40 2 3 TO MOVE DIRECTLY TO AN ARTICLE CLICK ON THE TITLE TABLE OF CONTENTS FROM OUR LEADER: • The Chair's Message Tina R. Green, Capshaw Green PLLC SPECIAL RECOGNITIONS, UPCOMING EVENTS, AND SECTION INFORMATION: • 2013 Texas State Bar Tax Section Annual Meeting • 2013 Texas State Bar Tax Section Annual Meeting Sponsorship Form • Leadership Academy Graduates ARTICLES: • Catching the Leprechaun: Potential pitfalls and perplexing problems with finding the now-permanent portability pot-of-gold Christian S. Kelso, Malouf, Lynch, Jackson & Swinson P.C. • Defined-Value Transfers Stephen T. Dyer and Richard Ramirez, Baker Botts L.L.P. • Estate Planning Issues With Intra-Family Loans and Notes Steve R. Akers, Bessemer Trust; Philip J. Hayes, First Republic Trust Company • Are The Passive Loss Material Participation Regulations Invalid? Dan G. Baucum, Shakelford, Melton & McKinley • The Tax Court Pro Bono Program Bob Probasco, Thompson & Knight LLP 50606151.1 TEXAS TAX LAWYER – WINTER 2013 COMMITTEE ON GOVERNMENT SUBMISSIONS: • State Bar of Texas, Section of Taxation Comments to Internal Revenue Service on Proposed Regulation Relating to Circular 230 (REG-138367-06), December 14, 2012 David Gair, Looper Reed & McGraw P.C. David Colmenero, Meadows, Collier, Reed, Cousins & Blau, LLP Shawn R. O’Brien, Mayer Brown, LLP • State Bar of Texas, Section of Taxation Comments to Office of Health Plan Standards and Compliance Assistance, Employee Benefits Security Administration on Proposed Regulations Relating to Incentives for Nondiscriminatory Wellness Programs in Group Health Plans, January 25, 2013 Henry Talavera, Polsinelli Shughart PC 15TH ANNUAL INTERNATIONAL TAX SYMPOSIUM, NOVEMBER 1, 2012: • International Tax Update David L. Forst, Fenwick & West LLP • Navigating the Tax Terrain of the Great White North: What Every U.S. Tax Practitioner Should Know About Canadian Federal Income Tax Michael Friedman, McMillan • Doing Business in the Middle East – Key Treasury Anti-Boycott Operational and Compliance Issues Andrius R. Kontrimas and Zhusong Yang, Fulbright & Jaworski L.L.P. • International Investing Inbound and Outbound Considerations & Techniques Todd Keator, John R. Cohn, Todd Lowther, Thompson & Knight LLP • Recent FBAR and FATCA Developments Deidra W. Hubenak and Austin C. Carlson, Looper Reed & McGraw P.C. The name and cover design of the Texas Tax Lawyer are the property of the State Bar of Texas, Section of Taxation 50606151.1 TEXAS TAX LAWYER – WINTER 2013 CHAIR’S MESSAGE The Tax Section has a lot going on as we pass the half-way mark for this fiscal year some of which I will review below. First, however, you should note the following Tax Section events on your calendar: • March 25, 2013 – Property Tax Conference, Austin, Texas • June 20-21, 2013 – Annual Meeting of the State Bar of Texas (including the Tax Section Annual Meeting on June 21 which is discussed in detail below), Dallas, Texas; and • August 13-15, 2013 – Advanced Tax Law Course, Houston, Texas Further details of these upcoming events will be forwarded to you via Section e-blasts and posted on the Tax Section’s website at www.texastaxsection.org. Second, what has been going on in your Section? Continue reading . 2013 Outstanding Texas Tax Lawyer I am pleased to announce that the Tax Section Council has selected Professor Ira Shepard as the 2013 recipient of the Outstanding Texas Tax Lawyer award. This is the highest award that the Tax Section bestows as a recognition honoring recipients for their outstanding reputation, expertise and professionalism in the practice of tax law in Texas. Professor Shepard has been at the University of Houston Law Center since 1975 and has taught thousands of law students tax law during this time. He was a primary force in establishing the LL.M. Taxation program at the University of Houston. Before his tenure at the Law Center, he taught at the University of Georgia School of Law and was a visiting professor at the University of North Carolina Law School. He received his baccalaureate degree from Harvard College in 1958 and his law degree from Harvard University in 1964, where he was an editor of the Harvard Law Review. Following graduation, he practiced in New York City with the firm of Paul, Weiss, Rifkind, Wharton & Garrison. He is a fellow of the American College of Tax Counsel and a frequent speaker at various tax programs including our Advanced Tax Law Course. He is the single most sought after speaker to provide a yearly tax law update for this course. He is knowledgeable and entertaining – a rare combination. He has been the Special Advisor to the Southern Federal Tax Institute since 1974. He has chaired the Continuing Legal Education and Research Committee of the American Bar Association Tax Section and the planning committee for the University of Texas Tax Conference. Congratulations to Professor Shepard. Inaugural Class of the Tax Section Leadership Academy Congratulations to the recent graduates from the Inaugural Leadership Academy. During the past year, these individuals participated in a program consisting of various leadership development events throughout the State of Texas. The graduates are: Christopher A. Cunningham, Sharon L. Ellington, Renesha N. Fountain, David C. Gair, Brent C. Gardner, Megan R. Horn, Matthew C. Hunsaker, Christian S. Kelso, C. Stoddard Lowther, Sam L. Merrill, Robert C. Morris, Ryan L. Morris, Michelle U. Rosenblatt, Ronald J. Rucker, Jeffrey M. Slade, Molly C. Sorg, Michelle L. Terbay, Jaime Vasquez, and Benjamin W. Vesely. For information on these graduates, see a brief bio for each included in this publication of the Texas Tax Lawyer. A huge “THANK YOU” to David Colmenero who served as the program director of the Leadership Academy. He and his committee did an outstanding job in planning the various programs, obtaining presenters, and dealing with the logistics of putting on such a course. Their job was made easier because of the hard work of Susan House who was an indispensable asset to this program. We will hold our next Leadership Academy program beginning in 2014. Be on the lookout for applications and further information. COGS Projects We continually seek to improve the substance and administration of state and federal tax laws through our Committee on Government Submissions (“COGS”) process. The COGS process also enhances the profile of our members within the tax community and furthers the national reputation of the Texas Tax Bar. Currently, the COGS chair is Stephanie Schroepfer who continues to do an incredible job in shepherding through our COGS projects. In addition to the three COGS projects previously reported to you, we have also submitted the following: • Comments on the proposed regulations relating to Circular 230; • Comments on the proposed regulations relating to incentives for non-discriminatory wellness programs and group health plans; and • Comments on the proposed regulations regarding net investment income tax under Section 1411 relating to trusts and estates. Many thanks to David Gair, David Colmenero, Chair of the Controversy Committee, Shawn R. O’Brien, and Mary McNulty for their work on the Circular 230 comments; Henry Talavera, Vice Chair of the Compensation and Employee Benefits Committee, and Stephanie Schroepfer, Susan A. Wetzel, David D’Alessandro, and Josephine Stewart Harvey for their work on the wellness comments; and Melissa Willms, Vice Chair of Estates and Gift Tax Committee, and Amanda Gyeszly, Lora Davis, and Celeste Lawton for their work on the net investment income tax under Section 1411. There are additional COGS projects in the works which will be reported to you at a later date. If you wish to get involved with an ongoing project or have ideas for leading one yourself, please contact Stephanie Schroepfer at (713) 651-5591 or [email protected]. Annual Meeting and Sponsorship Opportunity We have an unbelievable program lined up for our Annual Meeting. YOU WILL NOT WANT TO MISS IT! The meeting will take place on June 21, 2013, at the Hilton Anatole in Dallas. This year’s world-class program will be headlined by Douglas Shulman, Ex-Commissioner of Internal Revenue. Other renowned speakers will include Kathryn Keneally, Mark Matthews, Terence Cuff, Stanley Blend, and Professor Christopher Hanna and our luncheon with a legend – Professor Stanley Johanson. We are offering a $5,000 sponsorship which provides the following: • Five seats at a Speaker’s Dinner, which Ex-Commissioner Shulman will attend and to which all listed speakers are invited • Five tickets to the Annual Meeting’s Tax Legends Luncheon, which will feature an extensive interview with Professor Stanley Johanson • Recognition at the Tax Section Annual Meeting • Recognition in Tax Section Chair introductory remarks • Recognition on Tax Section Annual Meeting handouts • Recognition on Annual Meeting e-blasts from Tax Section leadership to members of the Tax Section • Recognition at each separate Leadership Academy event, including course materials, posters, and in introductory remarks • Recognition on Leadership Academy e-blasts and brochures For more information on this sponsorship, see the announcement and Sponsorship Form included in this issue of the Texas Tax Lawyer. We have had a number of things going on this year with hard work by a number of people. These are just some of the activities of your Tax Section. However, the greatest benefit you can receive as a member is to become involved with one or more of the Section’s many activities. It provides you with a great way to meet fellow tax professionals and make a lasting impact on the practice of tax law – both in Texas and nationally. If you are not sure how to get involved, please contact me at (903)223-9544 or at [email protected]. I look forward to finishing out an active and strong year with your help. The Tax Section of the State Bar of Texas wishes to congratulate the following recent graduates from the inaugural Leadership Development Academy.
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