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Spring 20143 Vol. 41 No. 3 4 All articles following “411 on Fundraising for Charitable Organizations” will appear in part II TO MOVE DIRECTLY TO AN ARTICLE CLICK ON THE TITLE TABLE OF CONTENTS FROM OUR LEADER: The Chair's Message Elizabeth A. Copeland, Strasburger & Price LLP SPECIAL RECOGNITIONS, UPCOMING EVENTS, AND SECTION INFORMATION: Leadership Roster (2013-2014) Committee Chairs and Vice Chairs (2013-2014) Calendar (2013-2014) 2014 Texas State Bar Tax Section Annual Meeting, June 26-27, 2014 ARTICLES: Income Taxation of Trusts and Estates – Things Tax Professionals Need To Know Mickey R. Davis and Melissa J. Willms, Davis & Willms, PLLC Joint Ventures of Nonprofits and For-Profits Terri Lynn Helge, Texas A&M University School of Law, Fort Worth “PPACA” Play or Pay Mandate and “ERISA” Section 510 Claims for Interference with Protected Rights Hannah Deluca and Henry Talavera, Polsinelli PC PRACTITIONER’S CORNER: Texas Tax Issues – Current Developments for Business in Texas Jay M. Chadha, Norton Rose Fulbright Tax Privilege – New Developments Andrew W. Steigleder and Michelle A. Spiegel, Mayer Brown LLP TAX LAW SURVEY IN A DAY: Tax Considerations in Choice of Entity Sam Merrill, Thompson & Knight LLP Estate and Gift Tax – Where Are We Now? Wesley L. Bowers, Fizer Beck Like-Kind Exchanges with Special Focus on the Energy Industry Todd D. Keator, Thompson & Knight LLP 411 on Fundraising for Charitable Organizations Terri Lynn Helge, Texas A&M University School of Law, Fort Worth State and Local Tax – Overview and Update Sam Megally, K&L Gates LLP 50757726.1 TEXAS TAX LAWYER –WINTER 2014 The IRS: A Former Insider’s View of How it is Organized and How it Works Richard L. Hunn, Norton Rose Fulbright IRS Collections – Liens, Levies, Trust Fund Recovery: What to Do? Dustin Whittenburg, The Law Offices of Dustin Whittenburg Employee Benefits – Basic Overview and Effect of Windsor Rob Fowler, Baker Botts A Rundown of the Top 10 International Tax Traps Deidra W. Hubenak and Austin C. Carlson, Gray Reed & McGraw, P.C. Partnership and Limited Liability Companies 101 Chester Grudzinski, Jr., Kelly, Hart & Hallman COMMITTEE ON GOVERNMENT SUBMISSIONS: State Bar of Texas, Section of Taxation, Comments on Proposed Treasury Regulations Section 1.704-3, May 5, 2014 Brandon Bloom, Thompson & Knight LLP State Bar of Texas, Section of Taxation, Comments on Income, Gift and Estate Tax; OMB Number: 1545-1360; Regulation Project Number: PS-102-88 (T.D. 8612), March 19, 2014 Catherine C. Scheid, Scheid Law Austin Carlson, Gray Reed & McGraw P.C. State Bar of Texas, Section of Taxation, Response to Texas Comptroller Request for Comments Pertaining to New Rule 3.11, April 4, 2014 Ira A. Lipstet, Dubois, Bryant & Campbell, L.L.P. Sam Megally, K&L Gates LLP Charolette Noel, Jones Day Alyson Outenreath, Texas Tech University School of Law The name and cover design of the Texas Tax Lawyer Are the property of the State Bar of Texas, Section of Taxation 50757726.1 TEXAS TAX LAWYER –WINTER 2014 A Word from the Chair Elizabeth A. Copeland This year has been another amazing year for the Tax Section. First and foremost, we officially changed our name to the “Tax Section” as opposed to the “Section of Taxation.” The change comports with a longstanding history whereby we were often publicized as the Tax Section in official bar events and publications. The Section’s Leadership Academy completed its first CLE and networking event in San Antonio. It was very well received. The Leadership Academy assists young tax lawyers in the development of leadership skills and provides an opportunity to network with other tax lawyers throughout the state. The next event is scheduled for June 26, 2014 in Austin. The Section’s Committee on Government Submissions (COGS) prepared and submitted seven significant comment projects this year addressing the Affordable Care Act, material advisor penalty regulations, proposed innocent spouse regulations, proposed Treasury Regulations on basis adjustments for oil & gas properties, proposed Treasury Regulations on QDOTs, charitable remainder trusts and the net investment income tax, and a proposed rule change by the Texas Comptroller of Public Accounts regarding settlements on redeterminations. The tax attorneys participating in the COGS projects were Co‐Chairs Stephanie Schroepfer and Robert (Bob) Probasco, with help from draftspersons Brandon Bloom, Sibyl Bogardus, Christopher Bourell, Wesley Bowers, Austin Carlson, David Colmenero, Lora Davis, David Gair, David Gilliland, Richard Hunn, Eleanor Kim, Celeste Lawton, Ira Lipstet, Sam Megally, Charolette Noel, Shawn O’Brien, Alyson Outenreath, Catherine Scheid, Michelle Spiegel, Henry Talavera, Rob Fowler, Susan Wetzel, Melissa Willms, and me. In addition to the COGS Chairs, reviewers were Tina Green, Riva Johnson, J.F. (Jack) Howell III, Mary McNulty, Dan Micciche, Jeffrey Myers, and Alyson Outenreath. The Section continued its award winning pro bono program of assisting pro se litigants during U.S. Tax Court Calendar Calls throughout Texas. In addition, we provided lawyer assistance to the St. Mary’s Low Income Taxpayer Clinic in its first‐ever problem solving day, set up with the cooperation of the IRS. Its goal was to resolve cases in advance of the Tax Court’s small case calendar in San Antonio set for March 12th. The new program was a huge success. Many thanks to Bob Probasco and Mel Meyers for assisting and Juan Vasquez, Jr. and Rachael Rubenstein for coordinating the event. The Section also completed a new basics course in February, “Tax Law Survey in a Day.” Many thanks to Course Directors Lora Davis and Amanda Traphagan. The program was very well received and is soon to be rebroadcast on the 24/7 CLE library available on the Section’s website, texastaxsection.org. See also the many other valuable CLE programs available on our website. Michael Threet does a superior job keeping the CLE programing relevant and up to date. 1531137.1/SPSA/00002/0020/050614 The Section also continued its long‐standing tradition of live CLE events, including the International Tax Symposium presented in Plano and in Houston; the Property Tax Conference and the State and Local Committee’s program with the Texas Comptroller. This year Christi Mondrik has coordinated an outstanding lineup for the Tax Section Annual Meeting that will be held on June 27, 2014 at the Austin Convention Center. We will have a special joint session with the LGBT Law Section on the taxation and federal benefits for same‐sex couples in light of the Supreme Court’s Windsor decision. Other programs will include a Tax Court update, cross‐border taxation, the ABA State Tax Tribunal Act, Lunch with Legend Ken Gideon, changes at the IRS, and tax considerations relating to operations in the Eagle Ford Shale. Finally, the 2014 Advanced Tax Law course is scheduled to be held August 28‐29 at the Westin Galleria in Dallas; Course Directors are Amanda Traphagan and James Roberts. The Section’s Law School Outreach Program held luncheons this year at law schools throughout Texas, which this year included Southern Methodist University Dedman School of Law, University of Texas School of Law, University of Houston Law Center, and Texas Tech University School of Law. New this year, the Section is sponsoring up to three law student scholarships for demonstrated excellence and desire to practice in the field of tax law. The scholarships will be awarded at our Annual Meeting in June. Finally, the Section selected United States Tax Court Judge Juan Vasquez as the recipient of the 2014 Outstanding Texas Tax Lawyer Award. The Honorable Judge Vasquez is the 11th lawyer selected to receive this prestigious award. As a closing note, always be on the lookout for the Section’s electronically published newsletter, The Texas Tax Lawyer, which contains current development articles and other articles of interest, as well as a practitioner’s corner with forms and other useful information. It has been wonderful serving as your Chair and I look forward to seeing all of you at our Annual Meeting on June 27, 2014. 1531137.1/SPSA/00002/0020/050614 SECTION OF TAXATION OF THE STATE BAR OF TEXAS 2013-2014 LEADERSHIP ROSTER Officers Elizabeth A. Copeland (Chair) Alyson Outenreath (Secretary) Strasburger Price Oppenheimer Blend Texas Tech University 711 Navarro Street, Suite 600 School of Law San Antonio, Texas 78205 1802 Hartford Ave. 210-250-6121 Lubbock, Texas 79409-0004 210-258-2732 (fax)\ 806-742-3990 Ext. 238 210.710.3517 (mobile) 806-742-1629 (fax) [email protected] [email protected] Andrius R. Kontrimas (Chair-Elect) David E. Colmenero (Treasurer) Norton Rose Fulbright Leadership Academy Program Director 1301 McKinney, Suite 5100 Meadows, Collier, Reed, Cousins, Houston, Texas 77010-3095 Crouch & Ungerman, LLP 713-651-5482 901 Main Street, Suite 3700 713-651-5246 (fax) Dallas, Texas 75202 [email protected] 214-744-3700 214-747-3732 (fax) [email protected] Appointed Council Members Stephanie M. Schroepfer J. Michael Threet COGS Chair CLE Chair Norton Rose Fulbright Akin Gump Strauss Hauer & Feld, LLP 1301 McKinney, Suite 5100 1700 Pacific Avenue, Suite 3900 Houston, Texas 77010-3095 Dallas, Texas 75201 713-651-5591 214-969-2795 713-651-3246 (fax) 214-969-4343 (fax) [email protected] [email protected] Robert C. Morris Juan F. Vasquez, Jr. Newsletter Editor Chamberlain, Hrdlicka, White, Williams & Aughtry, LLP Norton Rose Fulbright 1200 Smith Street, 14th Floor 1301 McKinney Suite 5100 Houston, Texas 77002-4310 Houston, Texas 77010-3095 713.654.9679 713-651-8404 713.658.2553 (fax) 713-651-5246 (fax) [email protected] [email protected] Daniel G. Baucum Leadership Academy Shackelford, Melton & McKinley, LLP 3333 Lee Parkway, Tenth Floor Dallas, Texas 75219 214-780-1470 214-889-9770 (fax) [email protected] TRG/Tax Section/2012 1 1269644.1/SPSA/00002/0020/082813 Elected Council Members Matthew L.