SubscribeThere has been a growing trend of US taxpayers contributing non-cash assets, such as appreciated property, securities and cryptocurrency, into Maltese pension plans since the US-Malta Tax Treaty went into effect in 2011. These transactions were marketed to many US taxpayers as a way to cash in on their earnings without being subject to US federal taxation. The Internal Revenue Service (IRS) is now investigating these transactions as possible tax fraud and evasion.
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President Biden Announces IRS Chief Counsel Nominee
On June 2, 2023, US President Joe Biden announced that he has picked Marjorie Rollinson as the Internal Revenue Service (IRS) Chief Counsel, the top attorney position at the IRS. Rollinson has had a distinguished career in tax service, both in the public and private sectors, and would be the first woman to serve in the role if confirmed by the US Senate. She began her career at Ernst & Young (EY) in 1987, became a partner in 1997 and was eventually named Deputy Director of the National Tax Department where she also led the International Tax Technical Committee.
In 2013, she left EY and joined the Office of Chief Counsel as the Technical Deputy Associate Chief Counsel in the Office of the Associate Chief Counsel International. In 2016, she was named Associate Chief Counsel International where she oversaw 100 tax lawyers responsible for issuing published guidance and providing technical guidance.
Practice Point: The Chief Counsel position has been vacant since Michael Desmond stepped down on January 20, 2021. It took nearly a year for the Senate to confirm his appointment. Senate Finance Committee Chairman Ron Wyden made a statement that he hopes the Senate will be able to process the nomination quickly given the complexity and demands of leading the IRS’s legal team.
Senate Confirms New IRS Commissioner
The US Senate has confirmed Daniel Werfel as the next commissioner of the Internal Revenue Service (IRS). The Senate voted 54-42, achieving bipartisan support for the nominee.
Undoubtedly on top of Werfel’s priority list will be how to deploy the agency’s $80 billion in new funding provided by the Inflation Reduction Act of 2022. During his confirmation hearing, Werfel said he did not plan to boost audit rates for taxpayers making less than $400,000 a year but would focus on compliance for the highest income earners. He also mentioned modernizing taxpayer service at the IRS.
Werfel is not new to the commissioner post as he previously served as acting commissioner from May to December 2013 during the Obama administration. He also previously served in the Office of Management and Budget. Werfel’s new appointment will run until November 2027.
Practice Point: We are interested to see how the IRS will be administered under Werfel. The IRS has numerous challenges ahead, but we are hopeful that Werfel, along with the additional funding allotted by US Congress, will usher in a new era for the agency.
McDermott Named #1 Firm for Tax Thought Leadership
We greatly appreciate our readers over the past year and are pleased to share that we were recently recognized as the #1 firm for tax thought leadership in the 2023 JD Supra Readers’ Choice Awards, which acknowledge top authors and firms for their thought leadership in key topics during all of last year. Partner and blog editor Andrew Roberson was also recognized as a “Top Author” for tax.
Through our various blogs, thought leadership pieces and tax-focused events, we are dedicated to maintaining our position as a leading firm for tax work and keeping clients abreast of significant and relevant topics in the industry.
President Biden to Nominate New IRS Commissioner
On November 10, 2022, US President Joe Biden announced his intent to nominate Danny Werfel to serve as Commissioner of the Internal Revenue Service. US Secretary of the Treasury Janet Yellen has expressed her support for Werfel’s nomination. Charles Rettig, whose term expires on November 12, 2022, is the current IRS Commissioner and Doug O’Donnell has been selected to serve as acting IRS Commissioner until the position is formally filled.
The White House press release provides the following background on Werfel:
Danny Werfel is a public and private sector leader who has served under both Democratic and Republican administrations. Across more than 15 years of government service, Werfel served President Barack Obama and President George W. Bush to lead some of the governments’ most complex management challenges as the Internal Revenue Service (IRS) Acting Commissioner and Office of Management and Budget (OMB) Controller. In the wake of an Inspector General report alleging various forms of mismanagement and bias in the determination of tax-exempt status for non-profit organizations, President Obama appointed Werfel to serve as Acting Commissioner of IRS in 2013. Werfel provided immediate stability to the IRS, effectively responding to numerous Congressional investigations, successfully launching the Affordable Care Act technology that IRS was responsible for, and navigated the IRS through a multi-week government shutdown. At the end of his tenure, both the majority and minority leaders of the Senate Finance Committee publicly recognized his contribution and performance. As OMB Controller, Werfel successfully led a cross-government effort to ensure the $787 billion American Recovery and Reinvestment Act was implemented transparently and with minimal fraud or error. He also led the government-wide efforts to prepare for and implement the budget sequester of FY2013. Werfel played a key role under the Bush Administration in the implementation of the Emergency Economic Stabilization Act of 2008, overseeing the efforts of the Office of Financial Stability to achieve a clean financial statement audit in its first year of existence.
Werfel has spent the last nine years at Boston Consulting Group where he helped launch their U.S. public sector practice. He holds a Bachelor of Science in Industrial and Labor Relations (with honors) from Cornell University, a Juris Doctor (with honors) from the University of North Carolina, Chapel Hill, and a Master of Public Policy from Duke University. Werfel lives in the District of Columbia with his wife and two children.
Former Tax Court Judge Herbert Chabot Passes Away
The US Tax Court announced that former Judge Herbert Chabot passed away on October 11, 2022.
Judge Chabot joined the Tax Court in 1978, serving as a regular judge and then as a senior judge for almost 40 years. Before being appointed to the Tax Court, he served on the staff of the Congressional Joint Committee on Taxation for over a dozen years. Prior to that, he clerked at the Tax Court, served on the Legal Staff of the American Jewish Congress and served in the US Army and the Army Reserves.
We both knew Judge Chabot well during our time clerking at the Tax Court. He was very thoughtful and cared deeply about reaching the correct result in each case. The Tax Court’s announcement aptly states: “He was a delightful storyteller and often regaled his colleagues and law clerks with wonderful stories. His charm, humor, and ubiquitous bowtie will be missed.”
Pro Bono as a Business Development Tool
In this ABA Tax Times article, McDermott Partner Andrew Roberson discusses the benefits of taking on pro bono work and how it functions as a business development tool.
“In my opinion, the motivation for doing pro bono work is to assist those in need who cannot afford our services. But if you need a little extra motivation to assist the needy, think about the ways that doing pro bono work can help you in your day-to-day practice. The benefits are numerous, from honing your skills to developing important relationships. During that process, you might even find an ancillary business development benefit.”
McDermott Will & Emery Named Top Firm for Tax Thought Leadership
We are pleased to share that for the third year in a row, we were recognized as the #1 firm for tax thought leadership in the 2022 JD Supra Readers’ Choice Awards, which acknowledges top authors and firms for their thought leadership in key topics during all of last year.
In addition, Partner and Blog Editor Kevin Spencer was recognized as a “Top Author” for tax.
Through our various blogs, thought leadership pieces and tax-focused events, we are dedicated to maintaining our position as a leading firm for tax work and keeping clients abreast of significant and relevant topics in the industry.
Former Tax Court Judge Gerber Passes Away
The US Tax Court announced that former Judge Joel Gerber passed away on March 4, 2022. Judge Gerber retired from the Tax Court on July 16, 2020.
Prior to his appointment to the Tax Court, Judge Gerber spent several years working for the Internal Revenue Service (IRS) in several cities around the country, including as Acting Chief Counsel. He was then appointed to the Tax Court in 1984, serving as Chief Judge from June 1, 2004, to May 31, 2006. Both before and after his appointment, Judge Gerber was a frequent participant in tax seminars and professional programs, including as a lecturer of law at Vanderbilt School of Law and the University of Miami School of Law Graduate Program.
We both knew Judge Gerber well during our time clerking at the Tax Court. He was always engaging and enjoyed talking about many things outside of tax. As the Tax Court’s announcement states: “Judge Gerber had a zest for life and was a humble, humorous, and unabashedly compassionate man who endeared himself to colleagues, employees, and all those fortunate enough to cross his path.”
Former Tax Court Judge Robert P. Ruwe Passes Away
We are deeply saddened to report that retired US Tax Court Judge Robert P. Ruwe passed away on February 12, 2022. The Tax Court’s press release aptly stated: “Judge Ruwe was known for his extraordinary memory and grasp of tax law, and for the valuable experience that he brought to his work.”
We both clerked for Judge Ruwe in the early 2000s and will never forget his mentorship, dedication to service and love of tax. Judge Ruwe was fond of going for walks with his clerks, whether to talk about pending cases, sports, politics or family life. He also enjoyed giving history lessons during those walks, pointing out lesser-known monuments or memorials and sharing the background of various government buildings. Most walks also ended with the purchase of roses from street vendors to give to his wife MaryKay that evening. Judge Ruwe will be sorely missed.
Below are links with further information about Judge Ruwe and his legacy:
- The End of An Era—Senior Judge Robert P. Ruwe Retires from US Tax Court
- 3 Key Opinions by Retired Tax Court Judge Robert Ruwe
- Alumni Profiles – Roger Bacon High School
- US Tax Court Press Release on J. Edgar Murdock Award
- Presentation of the J. Edgar Murdock Award to The Honorable Robert P. Ruwe, United States Tax Court
- United States Senate Committee on Finance Hearing on Nomination Laurence J. Whalen and Robert P. Ruwe to be Judges on the United States Tax Court (Nov. 3, 1987)
