Skip to Main Content
 

Tax Notes Interviews Christopher Rizek: IRS Turmoil Likely as Trump, GOP Ready Tax, Agency Reforms

December 30, 2016, Tax Notes

President-elect Donald Trump's tax reform plans, combined with House Republicans' "A Better Way" proposal for IRS restructuring, spell turbulent times ahead for the nation's tax collector.

"As always in tax administration . . . the devil's in the details, and these very broad conceptual things don't tell me how things are going to work in the future," said Christopher S. Rizek of Caplin & Drysdale, Chtd., who was responsible for Treasury regulations in the aftermath of the Internal Revenue Service Restructuring and Reform Act of 1998. The GOP's "Better Way" plans "actually raise more questions than they answer," Rizek said.

The GOP blueprint proposes to restructure the IRS into "families and individuals," "business," and "independent 'small claims court'" units streamlined for "delivering world-class customer service." But there is no mention of enforcement, nor of a taxpayer advocate, and it also lacks a tax-exempt and government entities division, as now exists, Rizek noted. How an "independent" small claims court unit would operate -- when the government already has the U.S. Tax Court to resolve taxpayer disputes -- and whether it would be subordinate or superior to, or simply operate alongside, the Tax Court is left unaddressed, Rizek said.

. . .

Almost nothing is known about Treasury Secretary-designate Steven Mnuchin's perspective on tax administration, but Rizek said the nomination of House Freedom Caucus member Rep. Mick Mulvaney, R-S.C., a proponent of impeaching IRS Commissioner John Koskinen, to head the White House Office of Management and Budget does not sound promising for the IRS.

"They're not going to have a friend at OMB," Rizek said, given that OMB is usually the first to cut the IRS's annual budget request, even before it gets to Congress to be cut some more. "Just from optics, it doesn't look like [Mulvaney] is going to be their friend," Rizek said.

To view to full article, please visit Tax Notes' website (subscription required).

Excerpt taken from the article "IRS Turmoil Likely as Trump, GOP Ready Tax, Agency Reforms" by William Hoffman for Tax Notes.

________________________________________________

About Caplin & Drysdale
Having celebrated our 50th Anniversary in 2014, Caplin & Drysdale continues to be a leading provider of tax, tax controversy, and litigation legal services to corporations, individuals, and nonprofits throughout the United States and around the world. We are also privileged to serve as legal advisors to accounting firms, financial institutions, law firms, and other professional services organizations.

The firm's reputation over the years has earned us the trust and respect of clients, industry peers, and government agencies. Moreover, clients rely on our broad knowledge of the law and our keen insights into their business concerns and personal interests. Our lawyers' strong tactical and problem-solving skills - combined with substantial experience handling a variety of complex, high stakes, matters in a boutique environment - make us one the nation's most distinctive law firms.

With offices in New York City and Washington, D.C., Caplin & Drysdale's core practice areas include:

-Bankruptcy
-Business, Investment & Transactional Tax
-Complex Litigation
-Corporate Law
-Employee Benefits
-Exempt Organizations
-International Tax
-Political Law
-Private Client
-Tax Controversies
-Tax Litigation
-White Collar Defense

For more information, please visit us at www.caplindrysdale.com.

Washington, DC Office:
One Thomas Circle, NW
Suite 1100
Washington, DC 20005
202.862.5000
        New York, NY Office:
600 Lexington Avenue
21st Floor 
New York, NY 10022
212.379.6000

___________________________

Disclaimer
This communication does not provide legal advice, nor does it create an attorney-client relationship with you or any other reader. If you require legal guidance in any specific situation, you should engage a qualified lawyer for that purpose. Prior results do not guarantee a similar outcome.

Attorney Advertising
It is possible that under the laws, rules, or regulations of certain jurisdictions, this may be construed as an advertisement or solicitation.

© 2017 Caplin & Drysdale, Chartered
All Rights Reserved.

Related Professionals

Related Practices