Correction to Federal Tax Procedure Editions on the Late/Former Commissioner Billy Long's Credible Experience--Actually None (8/22/25)

A friend pointed out that, in my Federal Tax Procedure Book Editions, I misdescribed Billy Long, the recently departed Commissioner of Internal Revenue, as having “credible experience in either tax or management experience.” (See Student Ed., pp. 26-27; Practitioner Ed. p. 45.) I left out “no” before “credible.” So, with apologies to the readers of the editions, I have revised the paragraph in the 2026 Working Draft as follows (with changes in redline; text only).

          On June 12, 2025, the Senate confirmed Billy Long, President Trump’s choice, for Commissioner of Internal Revenue. The nomination and confirmation were controversial because (i) the confirmation was preceded by chaos among the acting IRS leadership, and (ii) more importantly, Long had no credible experience in either tax or management experience. Apparently, for that reason and probably also other disqualifying factors, President Trump removed Commissioner Long, dressing up that removal as a move to permit him to serve as Ambassador to Iceland (rather than a mistake in the first place). Treasury Secretary Scott Bessent is now Acting Commissioner.

 I also note that I did get it right in a footnote which ends as follows:

JAT Editorial Comment: Long appears to have no relevant qualifications to be Commissioner of Internal Revenue other than sycophancy to President Trump which is the only credential he needed to be approved by the Senate on a party-line vote.

Federal Tax Procedure Book 2025 Editions on SSRN (8/9/25)

The 2025 versions of the Federal Tax Procedure Book are now posted on SSRN. SSRN still has to approve them, but those interested can view or download them in the interim. The SSRN editions can be linked on the page in the column to the right titled “Federal Tax Procedure Book (2025 Editions),  here.

Those using the 2025 versions should consult the Update page in the column to the right here.

ABA Tax Section Comments on VDP Disclosure Form 14457, Voluntary Disclosure Practice Preclearance and Application (1/5/25)

I previously expressed concerns about the IRS VDP Practice reflected in Form 14457, Voluntary Disclosure Practice Preclearance and Application (November 2024) I was concerned with the requirement that the taxpayer admit criminal willfulness in order to complete parts of the application. IRS Voluntary Disclosure Practice (VDP) Requires Taxpayer Admit Criminal Willfulness (11/29/24; 1/5/25), here.

The purpose of this post is to alert practitioners of the ABA Tax Section’s Comments on the Form 14457. See 12/20/24 Abreu Cover Letter to Werfel, Commissioner, with Comments on VDP and Streamlined Filing, TN here.

I do not offer further comments principally for lack of time and energy (I came down with a significant serious flue-type affliction shortly after Christmas, and have not regained full energy but should later next week (in which I case I might offer comments by expanding this blog entry)). In addition, I am not yet sure that my comments could add anything material to the ABA Tax Section comments. See the list of persons contributing to the comments.

I also alert readers that I have significantly revised (or re-revised) the VDP discussion in my Federal Tax Procedure Book. The revisions are here. See also Federal Tax Procedure Book 2024 Editions Updates (7/26/24; 1/5/25), here.

Treasury Promulgates Syndicated Easement Listed Transaction Regulations (10/13/24)

The IRS long identified certain syndicated conservation easements as potentially abusive tax shelters. One prong of that attack Notice 2017-10 designating such transactions as “listed transactions” which carried certain reporting requirements with heavy potential penalties. Courts declared that designating a transaction as a “listed transaction” must be by notice and comment regulation rather than Notice or Revenue Ruling. E.g., Mann Constr., Inc. v. United States, 27 F.4th 1138 (6th Cir. 2022), here; and Green Rock LLC v. IRS, 104 F. 4th 220 (11th Cir. 2024), here. The statutory path the courts followed to justify the holding is a feasible one but another feasible interpretation would have sustained the IRS use of Notices. See Sixth Circuit Invalidates Notice Identifying Listed Transaction Requiring Reporting and Potential Penalties (Federal Tax Procedure Blog 3/3/22); here, and Eleventh Circuit Invalidates IRS Designation of Listed Transaction by Notice; Designation Must be by Notice and Comment Regulation (Federal Tax Procedure Blog 6/16/24), here.

The IRS promulgated final regulations treating certain syndicated conservation easement transactions as listed transactions. Reg. § 1.6011-9, titled “Syndicated conservation easement listed transactions,” effective 10/8/24, TN here. The regulation grandfathers prior disclosures under Notice 2017-10. Reg § 1.6011-9(g). The regulations incorporate provisions fleshing out the addition § 170(h)(7)(A) in 2022 which limits the charitable deduction if the amount of the deduction exceeds 2.5  times the sum of each partner's relevant basis in such partnership or S Corporation.

I offer here only a general notice of the regulation. Those interested can parse the regulations for the details.