TAX TALK
Published by the Section of Taxation of the Maryland State Bar Association, Inc.
• Brian Oliner, Chair •
Jim Liang, Editor
Volume XXI
Number 1
Fall 2012
FROM THE CHAIR
By Brian Oliner
W
hen asked why he became a scientist, Isidor Isaac
Rabi, the 1944 Nobel Prize winner in physics, said
his mother made him so. Every day when he returned home from school she did not ask him what he learned
in school that day. She asked him – “Izzy, did you ask a good
question today?” Asking good questions is what made him a
good scientist.
This axiom is not just for scientists. In the midst of a heated
presidential election in which the economy is front and center,
and tax reform is an essential part of that debate, we as lawyers
and tax professionals have an important role to play. Regardless
of where we personally may fall on the political spectrum, we
have the background and experience to ask the good questions.
What is the role of government? What are the government’s
spending priorities? What are the sources of revenue for the
government? Who or what should bear the burden of paying
for the government’s functions? Etc.
Our profession and specialized knowledge give us a unique
opportunity to probe the solutions proposed by those who have
been elected or otherwise called upon to find solutions. We
don’t necessarily have to have answers to the good questions,
but the good questions should get to the details, expose the
consequences, intended and unintended, and reveal the pros
and cons of the proffered solutions. And the good questions
should facilitate a civil discourse, not a discordant, acrimonious yelling match that leaves the electorate disenchanted and
turned off.
At the MSBA’s Annual Convention, the Tax Section sponsored
an education session, “Do Ask, Do Tell.” The session addressed
the numerous tax, health care, estate and retirement planning
issues confronting same sex couples in an ever changing legal
landscape. The session provided the right type of forum for
asking the good questions and generating considered, thoughtful answers.
In the upcoming months, the Tax Section will continue its tradition of creating forums for asking the good questions: from
our annual Tax Networking Night scheduled for November
15, 2012 at the Diamondback Tavern Inn in Ellicott City, to
the December 19, 2012 joint educational meeting with the
Health Care Section at the Coho Grill in Columbia to discuss
the implications of health care reform, to our annual Shulbank
Dinner in the Spring.
The Tax Section encourages you to continue to ask the good
questions, be a part of the discussion, and make possible a civil
path towards resolution of the hard issues we face today.
Keep up to date by visiting the Taxation Section's webpage:
www.msba.org/sec_comm/sections/taxation
Quality Stores Generates Renewed Interest in
FICA Refund Claims on Severance Payments
By Megan Marlin
In Brief
Conclusion
The IRS filed a petition on October 18, 2012 for en banc review
by the U.S. Court of Appeals for the Sixth Circuit of a key decision in favor of the taxpayer on the tax treatment of supplemental
unemployment compensation benefits ("SUB pay"). The Sixth
Circuit recently held on September 7, 2012 in United States v.
Quality Stores, Inc. that the SUB payments made to former employees were not wages subject to social security and Medicare
("FICA") tax. As a result, Quality Stores and its former employees were entitled to a refund of all FICA taxes paid on the SUB
payments. This decision could have far reaching implications
to all employers that made severance payments.
The Quality Stores decision
reinvigorated the focus on the
SUB pay controversy. The
petition for full court review
noted that $120 million is at
stake in pending refund suits
with over $1 billion at issue
when the IRS takes into account all potential claims.
Accordingly, the scope of
this decision is broader than
the Sixth Circuit jurisdiction
that includes Michigan, Ohio,
Tennessee, and Kentucky.
Background
SUB pay is a severance payment made due to an employee's
involuntary separation from employment that results directly
from a reduction in force. SUB pay is treated as if it were wages
for federal income tax withholding purposes, and the issue
currently being litigated is whether SUB pay is included in the
definition of FICA wages. The IRS longstanding position is
that SUB pay is subject to FICA tax unless the payments are
linked to the receipt of state unemployment compensation and
are not received in lump sum.
In the recent case, Quality Stores, Inc. made severance payments to certain former employees, withheld federal income
tax and FICA tax from those payments, and reported the remuneration as wages on the recipients' Forms W-2, Wage and
Tax Statement. Upon appeal, the Sixth Circuit unanimously
upheld the decisions of the Michigan Bankruptcy Court and
U.S. District Court for the Western District of Michigan in
favor of the taxpayer. In re: Quality Stores, Inc., 383 B.R. 67
(Bkrtcy. W.D. Mich. 2008); In re: Quality Stores, 424 B.R.
237 (W.D. Mich. 2010). The court concluded that because
SUB pay is not wages for purposes of income tax withholding, then the same definition applies and it is not wages for
purposes of FICA. Since there is no corresponding provision
to subject SUB pay to FICA tax withholding, like with income
tax, withholding is not required. The result is that there is now
disparate treatment in two of the U.S. Courts of Appeals due
to a contrary decision in 2008 by the U.S. Court of Appeals
for the Federal Circuit. CSX Corp. v. United States, 518 F.3d
1328 (Fed. Cir. 2008).
2 • TAX TALK
While the rehearing petition is pending, employers need to
ensure that the necessary steps have been taken to protect the
right to file a claim for FICA on its own behalf as well as on
behalf of employees who received the SUB pay. A protective
claim preserves an employer's right to claim a refund when the
contingency is resolved. Moreover, because of the continuing
uncertainty, employers that make severance payments in the
coming months, including those in the jurisdiction of the Sixth
Circuit, should continue to withhold and remit the employee
and employer portions of FICA tax on severance payments that
do not fit the IRS' narrowly construed exception.
For more information, please contact:
Megan Marlin (202) 346-5144, megan.e.marlin@us.pwc.com
Kathy Mort (412) 355-6064, kathy.mort@us.pwc.com
Megan Marlin is a manager at PricewaterhouseCoopers
LLP in the Tax Controversy and Dispute Resolution (TCDR)
group of the Washington National Tax Services office. As
a member of the Global Information Reporting and Employment Tax team within TCDR, Megan advises clients
on domestic and global employment tax and information
reporting issues. Megan earned a B.A. in International
Relations from the College of William and Mary, a J.D.,
cum laude, from Suffolk University Law School, and a
LL.M. in Taxation with a Certificate in Employee Benefits
from Georgetown University Law Center. She is a member
of the bar in Maryland.
Fall 2012
Is the Limited Scope Marketed Opinion
Preparing for a Comeback?
By Alina Marshall and Travis Greaves
The Circular 230 tides are shifting again. Proposed changes
aim to ease certain burdens imposed on practitioners in 2004.
Among the many complaint-inducing changes made at the time,
the reigns were tightened on marketed opinions. Proposed
regulations won’t release those reigns, but would loosen them
– perhaps to the point of comfort.
Marketed opinions are any written advice that the practitioner
knows or has reason to know will be used or referred to by a
person other than the practitioner (or his firm) in promoting,
marketing or recommending an entity, investment plan, or
arrangement. This includes not only formal written opinions,
but also emails and casual correspondence. It also goes
beyond capital markets and bond issuances. The broad language may include third party inducement opinions, issued to
one’s client to induce a third party to accept a certain course
of action. Small syndicated loans, asset and stock sales and
concerns about reporting requirements, for example, could
bring small firm clients into the same sticky situation as big
firm opinion-buyers.
Why sticky? Well, if a significant purpose of a transaction is
income tax avoidance, and the attorney seeks to issue a marketed opinion, then he is facing a covered opinion for Circular
230 purposes. He has a choice: (1) he can include the infamous,
detested Circular 230 disclaimer or (2) he can issue a “more
likely than not” opinion (over 50% certainty) as to each and
every significant federal income tax issue in the transaction
and the overall treatment of the transaction. Limited scope
opinions are not an option. The client faces a difficult choice:
no penalty protection or pay exorbitant fees.
Proposed regulations would eliminate the concept of a
covered opinion and therefore lessen this predicament.
Under the new section 10.37, a practitioner may give written advice subject to one uniform set of requirements. The
practitioner must (1) make only reasonable factual and legal
assumptions, (2) reasonably consider facts that he knows
or should know, (3) use reasonable efforts to identify and
ascertain relevant facts, (4) avoid unreasonably relying on
representations, statements, findings or agreements, and (5)
not consider the audit lottery. A practitioner may reasonably
rely on the advice of another practitioner if he does so in
good faith considering all the facts and circumstances. These
concepts go to the heart of Circular 230’s opinion-writing
goals. They focus the practitioner’s legal and ethical core
without tying his hands.
Fall 2012
The twist is section
10.37(c). The IRS
would evaluate whether
a practitioner’s written
advice satisfied these
requirements under a
reasonableness standard.
A “heightened standard
of review” would apply,
however, in reviewing a
marketed opinion. Written advice will receive
extra scrutiny if it will or
reasonably may be used
in promoting, marketing or recommending to
one or more taxpayers
an entity, plan or arrangement a significant purpose of which
is the avoidance or evasion of federal tax. The stated reason
makes sense: “the greater risk caused by the practitioner’s lack
of knowledge of the taxpayer’s particular circumstances.” The
application, inevitably, will depend heavily on the interpretation
and vision of the evaluator.
The proposed regulations would give a prudent counselor some
options and flexibility to
meet his client’s needs
with carefully prepared
written guidance. Moreover, a client may soon
have a range of choices
that fall between the
dreaded disclaimer and
the unwieldy, cost-prohibitive covered opinion. And who doesn’t
like options?
Alina Marshall is an associate at West & Feinberg, P.C., and
advises clients on an array of tax, financing, business and commercial matters. Travis Greaves is an associate at Reed Smith
LLP in the firm’s Tax, Benefits & Wealth Planning group. Ms.
Marshall and Mr. Greaves also serve as Adjunct Professors
of Law at Georgetown University Law Center teaching "Tax
Penalties and Tax Opinions."
TAX TALK • 3
The New 1099-K: No Longer to be Ignored
By Glen E. Frost and Kaitlyn Loughner
This year, thousands of business owners were puzzled upon
receiving a Form 1099-K from their credit card processors.
The ability to accept credit cards as a form of payment is an
opportunity for business owners to expand. According to the
American Bankers Association, there are more than $2.5 trillion in credit card transactions every year. Businesses utilizing
this convenient payment method are now subject to a new IRS
requirement – Section 6050W.
In 2011, taxpayers were told by the IRS to disregard the 1099K. However, the reporting requirements will go into effect
starting with the 2012 tax year. Section 6050W creates an issue
for business owners because many of them do not keep track
of the method of collecting receipts and making payments.
Beginning with the 2012 tax year, business owners will need
to keep more thorough records of how payments are received
in order to verify the accuracy of the amount reported on the
1099-K.
Section 6050W was added to the Internal Revenue Code as a
result of Section 3091(a) of the Housing Assistance Tax Act
of 2008 as an effort to reduce the tax gap. Section 6050W
requires payment settlement entities (PSEs), such as merchant
acquiring entities and third party settlement organizations, to
file an information return for each calendar year reporting all
credit card and third party transactions with respect to each
participating payee. Merchant acquiring entities include banks
or other organizations which have the contractual obligation
to make payment in settlement of credit card transactions.
These include credit card processing companies such as First
Data and TSYS. All transaction amounts through a merchant
acquiring entity must be reported on a 1099-K by that entity.
Third party settlement organizations, such as PayPal, are the
central organizations with the contractual obligation to make
payment to payees of third party network transactions. Third
party network payments only need to be reported on a 1099-K
if there are $20,000 or more in total transaction amounts and
over 200 transactions.
All credit card and third party payment processors are required
to report to the IRS the gross amount of all transactions on a
1099-K. The gross transactions are broken down by month.
According to the final regulations, the gross amount is the total
amount of payments to a participating payee “without regard
to any adjustments for credits, cash equivalents, discount
amounts, fees, refunded amounts, or any other amounts.” The
Regulations provide that the gross amounts of transactions are
“not intended to be an exact match of the net, taxable, or even
4 • TAX TALK
the gross income of a payee.” For
tax year 2011 the IRS deferred the
many problems associated with
the new reporting requirements.
See Notice 2011-89.
Despite not requiring an exact
match, differences between gross
receipts on tax returns, and the
amount reported by PSEs on the
1099-K, could raise red flags and
possibly trigger an audit. For example, the 1099-K reports gross
transactions on a cash basis of
accounting. Matching issues will arise for taxpayers using
the accrual basis to account for income. Additional matching
issues arise for taxpayers that use a fiscal year because the
1099-K is reported on a calendar year basis. An additional
concern will arise if the taxpayer does not file a return. In
the case of a Schedule C filer,
if the IRS prepares a Substitute
for Return (“SFR”) for that taxpayer, it is likely that the entire
amount reported on the 1099-K
will be picked up as income on
the SFR.
Another serious concern is double
counting of income. For example,
if a company accepts credit card
payments for work done or services provided, it will be issued
a 1099-K; however, the company may also be issued a 1099MISC for the same payment. The IRS has stated that payments
that could be reported on both a 1099-MISC and 1099-K should
now be reported only on a 1099-K. If, however, a business
tracks payments on accounting software, and makes payments
through credit cards and by other means, a 1099-MISC may be
erroneously issued. If this is the case, the business or individual
who issued the 1099-MISC should be notified and the payee
should be issued a revised 1099-MISC.
Section 6050W will create a particular burden for attorneys
because it does not make a distinction between credit card
deposits made to an operating account and those made to a
trust or IOLTA account. Reporting only the taxable portion of
(continued on Page 6)
Fall 2012
The Implications of the Fiscal Cliff
By Darrell Rico Doss
Congress is staring into the abyss and the reflection we see is
not pretty. The dark waters of the fiscal cliff swirl as families
in Maryland and across the country are still feeling the sting
of the recent recession and struggling to make ends meet. Tax
increases and the pending budget sequestration promise to make
life unpleasant as thousands of federal workers living in Maryland, District of Columbia, and Virginia could be furloughed or
even laid off. Indeed the cloud looming over this Congress is a
veritable “triple-witching hour” of tax increases and spending
reductions, scheduled to take effect January 2013.
The fiscal cliff consists of the (1) tax hikes due to the expiration of the Bush Tax Cuts, the Payroll Tax Cut, Unemployment Insurance, the AMT patch, lower Estate Tax rates, and
a batch of tax preferences known as the “Extenders,” and (2)
sequester, as dictated by the Budget Control Act (BCA). The
BCA mandates across-the-board spending cuts, split between
the budgets of defense and nondefense programs. In addition,
tax cuts from the 2009 American Recovery and Reinvestment
Tax Act: EITC, Child Tax Credit, and American Opportunity
Tax Credit, are also scheduled to end.
A critical question facing Congress is whether to risk a double
dip recession by allowing the Bush Tax Cuts, inter alia, to
expire, the truly fiscally conservative policy line, or extending them again under a supply-side view. Most experts agree
that our tax code has to be reformed but with loud debt and
deficit concerns looming, the timing for reform is awkward.
Is base-broadening, bipartisan 1986-style reform achievable in
the short term? Will a two-term President Obama inherit the
Reagan tax reform mantle? And who will be the Tip O’Neill
of her generation?
Like a bad reality show, a number of “not-ready-for-primetime” scenarios could play out once Members of Congress
return from the election rodeo. Discussions are already
taking place but it appears that leaders in both parties have
divergent views of how to manage the fiscal cliff, even
within their own party Caucuses. The suspense is heightened
because the likely outcomes could differ widely depending
on whether President
Obama is reelected or
a “supply-side sounding” Romney assumes
the position.
But the real boogeyman
in all of this is sequestration: the across-theboard spending reductions as ordered by the
BCA. Once the election
is over, Congress will
turn its attention to the fiscal cliff—and not a moment too soon.
The mere prospect of workers losing their jobs, experiencing
wage reduction, and coupled with the threat of tax hikes could
spook the capital markets and dampen consumer spending
heading into the busy retail season.
Hence after the elections the onus is on Congress to enact
bi-partisan legislation post-haste which addresses the budget
sequestration and the expiring tax provisions, while being
mindful of the deficit. It has happened before and could certainly happen again.
Anything less and a run on pitchforks could be sparked.
As Economic Policy Counsel for Rep. Sheila Jackson Lee of
Texas, Doss is responsible for tax and a broad array of legislation and policy. Doss also worked for the Honorable Judge
Reginald Gibson on the U.S. Court of Claims. Doss worked
at Citigroup and Morgan Stanley as an Investment Advisor. A
native Chicagoan, Doss earned his B.A. at the University of
Illinois at Champaign-Urbana, and attended the University Of
Oregon School Of Law, and earned an LL.M. in Taxation at
the University Of Washington School Of Law in Seattle. Doss
taught high-school French and speaks Japanese and some
Chinese. Doss serves on the board of Montgomery Countybased Arts For The Aging.
MSBA CLE: Raising the Bar for Education
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Live Programs
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Live Webcasts
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MP3 Downloads
Publications & Course Materials
http://www.legalspan.com/msba/intro.asp
Fall 2012
TAX TALK • 5
THE NEW 1099-K...
(continued from Page 4)
credit card transactions will result in a discrepancy between
the amount reported on the 1099-K and the amount entered on
the taxpayer’s return. While the IRS maintains that the 1099-K
is intended to be informational, attorneys may want to clarify
that the amount reported on the 1099-K is not all income. This
can be done by attaching a statement to the tax return showing
the reason why a portion of the 1099-K amount is excludable
from income.
Another method that accountants are likely to employ is reporting the entire amount of the 1099-K and then using a “plug”
figure for income from other sources. The IRS has revised
business tax returns to include a line for merchant card and
third party payments. To compensate for this, taxpayers whose
1099-K includes amounts that are excludable from income may
report the entire 1099-K amount, and then adjust their income
from other sources so that their total income is accurate. Additional IRS guidance will be necessary to best explain large
discrepancies caused by this new form.
Finally, Section 6050W requires that the information reported
on a 1099-K exactly match the legal name and federal tax
identification number on file with the IRS. A 28 percent with-
holding penalty on credit card transactions will apply if the
merchant information does not match the IRS records. The
IRS, in Notice 2011-88, extended the effective date for backup
withholding to Section 6050W payments made after December
31, 2012. This means that if a business does not match its legal
name and Tax Identification Number with its PSE, it is exposing
itself to the penalties imposed by Section 3406.
It is important that business owners are aware of this requirement so that they are able to implement new accounting
procedures in order to avoid issues in the future. Because the
IRS extended the effective date of the requirements of Section
6050W, it would be prudent for business owners to take a look at
any 1099-K issued for 2011 to detect and preemptively resolve
any discrepancies or problems prior to return due dates.
This article was written by Kaitlyn Loughner, a law clerk at
Frost & Associates, and Glen E. Frost, Owner of Frost &
Associates. Frost & Associates is a tax controversy law firm
located in Annapolis, Maryland. If you would like additional
information on the subject matter of this article, please feel
free to visit the firm’s website: www.DistrictOfColumbiaTaxAttorney.com

The Maryland State Bar Association’s Taxation Section Council is always seeking articles for Tax Talk,
the quarterly newsletter for the Taxation Section.
Tax Talk features articles on recent events, activities,
topics of interest and member news that are relevant
to Taxation Section members.
If you would like to contribute an article for publication in the newsletter, please contact Jim Liang,
Newsletter Editor, at jliang@rosenbergmartin.com.
Articles should be limited to 1,000 words or less.
The editors reserve the right to edit, accept or reject
prospective materials in accordance with their editorial judgment.
6 • TAX TALK
Fall 2012
Save the Date!
Maryland Association of Certified
Public Accountants
The Maryland State Bar Association
Maryland Bar Center
520 West Fayette Street, Suite 300
901 Dulaney Valley Road, Suite 710
Towson, Maryland 21204-2683
Baltimore,Maryland 21201-1756
ATI
Advanced Tax Institute
MONDAY, NOVEMBER 5, 2012
WEDNESDAY, NOVEMBER 7, 2012
THURSDAY, NOVEMBER 8, 2012
FRIDAY, NOVEMBER 9, 2012
Martin’s West
6817 Dogwood Road - Baltimore, Maryland 21244
EACH DAY FEATURES NATIONALLY KNOWN AUTHORITIES
OFFERING ANALYSIS & ADVICE TO HELP YOU IN YOUR PRACTICE
November 5, 2012
November 7, 2012
Current Events: Corporate Update; Individual
Update; New Currents in Self-Employment
Taxes & Definition of “Limited Partner”; Procedure Update; Fin 48; Choice of Entity in Maryland: Is the LLC Taxed as a Partnership Still the
Best Bet
Estate Planning: Maryland Tax Update; Maryland Court Case Update; Voluntary Disclosure
Panel Session; DC and VA Update; “SALT
To Ten”; Mid-Atlantic State Update; National
Developments
November 8, 2012
November 9, 2012
State and Local Tax Day: Charitable Giving;
Post Mortem Planning & Portability; Update;
Using Annuity & Estate Planning
Real Estate & Partnerships: The Year in
Review; Creative Deal Structures; Like-Kind
Exchanges 1031; Update from the “Hill”; Open
Session for “Hot” topic
Special Savings on Multi-Day Registrations
Registration opening soon!
8 C P E C r e d i t s P e r D a y - 6.5 C L E C r e d i t s P e r D a y
Fall 2012
TAX TALK • 7
THE TAXATION SECTION
OF THE MARYLAND STATE BAR ASSOCIATION
PRESENTS THE TWELFTH ANNUAL
TAX PROFESSIONALS’ NETWORKING NIGHT
Thursday, November 15, 2012
6:00 p.m. – 9:00 p.m.
The Diamondback Tavern
3733 Old Columbia Pike
Ellicott City, Maryland 21043
www.diamondbacktavern.com
Space is limited – Order your tickets now!!
There will be an OPEN BAR, BOUNTIFUL FOOD, & DOOR PRIZES!!!
The Section thanks CCH and Café Press for contributions of door prizes.
The Section thanks the following firms for their generous donations to help underwrite this evening:
Rosenberg | Martin | Greenberg, LLP
Stein, Sperling, Bennett, De Jong, Driscoll & Greenfeig, P.C.
Selzer Gurvitch Rabin Wertheimer Polott & Obecny, P.C.
Levy, Mann, Caplan, Hermann & Polashuk, LLP
Gordon, Feinblatt, Rothman, Hoffberger & Hollander, LLC
Paley Rothman, Goldstein, Rosenburg, Eig & Cooper
Miles & Stockbridge P.C.
Venable LLP
Kelly | Dorsey P.C.
Whiteford, Taylor & Preston L.L.P.
TAX SECTION MEMBERS: $20 | NON-MEMBERS/GUESTS: $25 | STUDENTS: $10
TAXATION SECTION - TAX PROFESSIONALS’ NETWORKING NIGHT
Name _________________________________ Phone _______________ Fax __________
Firm _______________________________________________ E-mail __________________
Address __________________________________________________________________
Please reserve:
___member tickets @ $20
Names of members attending _______________________________________________
___non-member tickets @ $25
Names of non-members attending ___________________________________________
___student tickets @ $10
Names of students attending _______________________________________________
___total tickets
Total: $_____
RETURN BY NOVEMBER 8TH TO
Maryland State Bar Association 520 W. Fayette Street Baltimore, MD 21201
FAX TO: 410-685-1016 (credit cards only) No. of Kosher Meals ________
INCLUDE: check payable to MSBA or credit card information: Name on card:
Card number: ____________________________________
VISA____MC____DIS___Exp Date___/___ Security Code____
Billing Address: ___________________________________
Cardholder Phone Number_________________
8 • TAX TALK
Fall 2012
SAVE THE DATE
December 19, 2012
6:00 – 8:30 p.m.
THE SECTION OF TAXATION
jointly with
THE HEALTH LAW SECTION
will present a discussion
of the post-election interface of
TAXES & HEALTH LAW
at the
Coho Grille
11130 Willow Bottom Drive
Columbia, MD 21044
(410) 740-2098
thecohogrille.com
Hors d’oeuvres & liquid refreshments of the season
Fall 2012
TAX TALK • 9
Tax Prep Volunteers Needed
The Baltimore CASH Campaign works to promote the economic stability and empowerment
of low-income households in the Baltimore area. The campaign is the work of a coalition that
includes foundations, nonprofits, community organizations, Baltimore City government agencies,
the IRS, and hundreds of volunteers like you. The campaign focuses on helping working families
access the tools and services needed to maximize their earning dollars. Tax volunteers provide
free tax preparation services to working families in Baltimore, helping them save money by
avoiding tax preparation fees and claim valuable tax credits.
Requirements:
• Tax Volunteers must complete free tax preparation training in January and successfully
pass IRS Certification test
• We ask Tax Volunteers to commit to 16 hours of tax preparation services during tax season (January to April)
• Willingness to maintain client confidentiality
• Basic computer skills
Benefits:
• Empower low-income Baltimore families using your professional experience
• Volunteer hours may be used toward Pro Bono time requirements
• Free tax law and tax preparation training
• Support from trained tax professionals
Contact: Sharon Baldwin, Volunteer Maryland Coordinator, by email at
volunteer@baltimorecashcampaign.org or call 410-234-2804
For more information on the Baltimore CASH Campaign visit our website at
www.baltimorecashcampaign.org
10 • TAX TALK
Fall 2012
Meet the Study Groups!
Employee Benefits Study Group
The Employee Benefits Study Group is a lively group of new and experienced ERISA attorneys, with insights from IRS representatives, actuaries, third-party administrators, retirement plan auditors, and other pension professionals. The group meets for
lunch every other month, generally on the second Tuesday of January, March, May, July, September, and November, at Venable's
offices on the Inner Harbor in Baltimore. Each meeting is a roundtable discussion of timely employee benefit topics. Recent
discussions have focused on IRS and DOL programs for correcting plan errors, the impact of same-sex marriage on employee
benefit plans, new fiduciary disclosure rules, plan fees and revenue sharing, health care reform, and amendments, amendments,
and more amendments. Meeting announcements and topics are e-mailed shortly before each meeting. If you would like to be
added to the e-mail list, please contact one of the Study Group's co-chairs, Katrina Kamantauskas-Holder <katrina.kamantauskas@holderlaw.com> or Jennifer Spiegel Berman <jsberman@venable.com>.
http://www.msba.org/sec_comm/sections/taxation/study_groups/empben.asp
Estate and Gift Tax Study Group
The Maryland Estate and Gift Tax Study Group meets on the third Thursday of each month and provides members of the
MSBA Sections of Taxation and Estates & Trusts with the ongoing opportunity to participate in continuing legal education
focused on estate and gift tax issues in estate planning. The Group is held in two locations that are linked by video conference: Ober Kaler in Baltimore City and Shulman Rogers in Rockville. Lunch is offered during the meetings. Please contact
either of the Co-Chairs of the Group, Danielle Cruttenden (410-268-006) or Brian R. Della Rocca (301-637-2889) for more
information on membership.
http://www.msba.org/sec_comm/sections/estate/studygrp.asp
Fall 2012
TAX TALK • 11
Meet the Study Groups!
State Tax Study Group
The Maryland State Bar Association’s State Tax Study Group meets monthly from October through May. However, additional
meetings are scheduled to address significant state tax issues or recent state/multi state tax developments. Generally, the speaker(s)
is from a State agency that deals with tax issues – e.g., the Maryland Comptroller, the State Department of Assessments and
Taxation, the Maryland Tax Court, or various attorney generals for State agencies.
Most often our meetings are held at 8:30 a.m. on the third Tuesday of the month at the Law Offices of Ober|Kaler at 100 Light
Street, Baltimore, Maryland 21202. A video conference from the Rockville offices of Miles & Stockbridge is generally available. For more specific information concerning Rockville, contact Jim Dawson.
We look forward to your participation.
Very truly yours,
Gary M. Hyman
http://www.msba.org/sec_comm/sections/taxation/study_groups/statetax.asp
Tax Controversy Study Group
The Maryland State Bar Association Tax Section’s Tax Controversy Study Group meets once a month from the months of September through May. We typically have a speaker from the IRS who addresses recent developments in the speaker’s particular
area.
We sometimes have round table discussions where our members get the opportunity to address problems or issues they are
facing in their own practice. On occasion, one of our own members will give a presentation on a particular topic in the area of
tax controversy.
Our meetings are held at the Law Offices of Rosenberg Martin Greenberg, LLP and we always have a delicious continental
breakfast. Rosenberg Martin Greenberg is located at 25 South Charles Street and offers a convenient location for our IRS speakers. For most meetings we have remote access from a location in Montgomery County.
We would welcome additional members to our meetings. We do charge a small amount of dues to cover the breakfast. Please
join us!!!
Very truly yours,
David J. Polashuk, Esquire, Chair
http://www.msba.org/sec_comm/sections/taxation/study_groups/controversy.asp
12 • TAX TALK
Fall 2012
Meet the Study Groups!
Transactional Tax Study Group
The MSBA Tax Section’s Transactional Tax Study Group meets monthly from September through June. A significant part of each
meeting is typically conducted in an “open forum” format, where attendees contribute information about current federal and state
tax issues impacting the planning and structuring of various types of transactions (e.g. corporate reorganization, partnerships,
real estate transfers, etc.) and pose questions or structuring ideas to the group for further discussion and input. We sometimes
have an outside speaker or a member of the Group present on a recent development or topic in the speaker’s particular practice
area that is of interest to the group, followed by a group discussion on the topic.
Our meetings are held at noon at the Law Offices of Whiteford, Taylor & Preston L.L.P. at 7 St. Paul Street, 19th Floor, in Baltimore. Lunch is served at the meeting.
We welcome new members and encourage you to attend a meeting and experience the value of participating in this Group for
yourself. Please note that in order to cover food costs, we charge annual dues (currently $90), and ask our members to RSVP
to each meeting so that the appropriate amount of food is available.
Sincerely,
Jonathan Z. May, Esquire, Chair
http://www.msba.org/sec_comm/sections/taxation/study_groups/transact.asp
Tax Exempt Organizations Study Group
The MSBA Tax Section’s Tax Exempt Organizations Subcommittee / Study Group meets four to five times a year. A significant
part of each meeting is typically conducted in an “open forum” format, where attendees contribute information about current
federal and state issues impacting tax-exempt organizations (e.g. tax-exempt status requirements, unrelated business income,
excess benefit transactions, governance, mergers and conversions, fundraising and charitable solicitations, legislative developments, etc.) and pose questions or ideas to the group for further discussion and input. We sometimes have an outside speaker
or a member of the Group present on a recent development or topic in the speaker’s particular practice area that is of interest to
the group, followed by a group discussion on the topic.
Our meetings are held at 8:30 am at the Law Offices of Whiteford, Taylor & Preston L.L.P. at 7 St. Paul Street, 19th Floor, in
Baltimore. A light breakfast is provided at the meeting.
We welcome new members and encourage you to attend a meeting and experience the value of participating in this Group for
yourself. Please note that we ask our members to RSVP to each meeting so that the appropriate amount of food is available.
Sincerely,
Jonathan Z. May, Esquire, Chair
http://www.msba.org/sec_comm/sections/taxation/study_groups/taxexempt.asp
Fall 2012
TAX TALK • 13
Meet the 2012-13 Tax Section Council
Brian L. Oliner
Chair
Paul G. Marcotte, Jr.
Chair Elect
Jennifer Anne Pratt
Secretary-Treasurer
Legal
Education
Committee
Member
Services
Committee
Communications Special
Committee
Programs
Committee
Keith Blair –
Chair
Beverly
Winstead Chair
Jim Liang – Chair
Keith Blair, Chair
Legal Education Committee
14 • TAX TALK
Pro Bono
Committee
State
Legislation
& Regulatory
Proposals
Mike Salem Pam Chaney – Herman
– Chair
Chair
Rosenthal
–Chair
Beverly Winstead, Chair
Member Services Committee
Fall 2012
Meet the 2012-13 Tax Council
Fall 2012
Jim Liang, Chair
Communications Committee
Mike Salem, Chair
Special Programs Committee
Pam Chaney, Chair
Pro Bono Committee
Herman Rosenthal, Chair
State Legislation & Regulatory Proposals
TAX TALK • 15
Calendar of Events
NOVEMBER
Nov. 5-9
Advanced Tax Institute (Martin’s West, Baltimore, MD)
Nov. 8, 2012
Montgomery / PG County Tax Study Group (Stein Sperling Bennett De Jong,
Rockville) - 8 AM
Nov. 13, 2012
Employee Benefits Study Group (Venable LLP, Baltimore) - 12 PM
Nov. 14, 2012
Tax Controversy Study Group (Rosenberg, Martin, Greenberg, LLP,
Baltimore) - 9 AM
Nov. 15, 2012
Estate and Gift Tax Study Group (Ober | Kaler, Baltimore) - 11:45 AM
Nov. 15, 2012
Tax Networking Night (Diamondback Tavern, Ellicott City, MD) – 6-9 PM
Nov. 20, 2012
State Tax Study Group (Ober | Kaler, Baltimore) - 8:30 AM
Nov. 28, 2012
Transactional Tax Study Group (Whiteford Taylor, Baltimore) - 12 PM
DECEMBER
Dec. 6, 2012
Tax-Exempt Study Group (Whiteford Taylor, Baltimore) – 8:30 AM
Dec. 12, 2012
Transactional Tax Study Group (Whiteford Taylor, Baltimore) - 12 PM
Dec. 18, 2012
State Tax Study Group (Ober | Kaler, Baltimore) - 8:30 AM
Dec. 19, 2012
Joint Program with Health Law Section (Coho Grille, Columbia, MD) – 68:30 PM
Dec. 19, 2012
Tax Controversy Study Group (Rosenberg, Martin, Greenberg, LLP,
Baltimore) - 9 AM
Dec. 20, 2012
Estate and Gift Tax Study Group (Ober | Kaler, Baltimore) - 11:45 AM
JANUARY
Jan. 8, 2013
Employee Benefits Study Group (Venable LLP, Baltimore) - 12 PM
Jan. 10, 2013
Montgomery / PG County Tax Study Group (Shulman, Rogers, Ganda,
Potomacl) - 8 AM
Jan. 15, 2013
State Tax Study Group (Ober | Kaler, Baltimore) - 8:30 AM
Jan. 16, 2013
Tax Controversy Study Group (Rosenberg, Martin, Greenberg, LLP,
Baltimore) - 9 AM
Jan. 16, 2013
Transactional Tax Study Group (Whiteford Taylor, Baltimore) - 12 PM
Jan. 16, 2013
Tax Council Meeting - 6 PM
Jan. 24, 2013
Estate and Gift Tax Study Group (Ober | Kaler, Baltimore) - 11:45 AM
16 • TAX TALK
Fall 2012
Calendar of Events
FEBRUARY
Feb. 7, 2013
Tax-Exempt Study Group (Whiteford Taylor, Baltimore) – 8:30 AM
Feb. 12, 2013
State Tax Study Group (Ober | Kaler, Baltimore) - 8:30 AM
Feb. 13, 2013
Transactional Tax Study Group (Whiteford Taylor, Baltimore) - 12 PM
Feb. 14, 2013
Montgomery / PG County Tax Study Group (Law Offices of Diana Gary
Law Offices of Harold Pskowski, Rockville) - 8 AM
Feb. 20, 2013
Tax Controversy Study Group (Rosenberg, Martin, Greenberg, LLP,
Baltimore) - 9 AM
Feb. 20, 2013
Tax Council Meeting – 6 PM
Feb. 21, 2013
Estate and Gift Tax Study Group (Ober | Kaler, Baltimore) - 11:45 AM
MARCH
March 20, 2013
Transactional Tax Study Group (Whiteford Taylor, Baltimore) - 12 PM
March 10, 2013
Tax Symposium (tentative date)
March 12, 2013
Employee Benefits Study Group (Venable LLP, Baltimore) - 12 PM
March 14, 2013
Montgomery / PG County Tax Study Group (Stein Sperling Bennett De Jong,
Rockville) - 8 AM
March 19, 2013
State Tax Study Group (Ober | Kaler, Baltimore) - 8:30 AM
March 20, 2013
Tax Controversy Study Group (Rosenberg, Martin, Greenberg, LLP,
Baltimore) - 9 AM
March 21, 2013
Estate and Gift Tax Study Group (Ober | Kaler, Baltimore) - 11:45 AM
APRIL
April 11, 2013
Montgomery / PG County Tax Study Group (Law Offices of Fred Goldman,
Rockville) - 8 AM
April 11, 2013
Tax-Exempt Study Group (Whiteford Taylor, Baltimore) – 8:30 AM
April 13, 2013
Transactional Tax Study Group (Whiteford Taylor, Baltimore) - 12 PM
April 17, 2013
Tax Controversy Study Group (Rosenberg, Martin, Greenberg, LLP,
Baltimore) - 9 AM
April 17, 2013
Tax Council Meeting – 6 PM
April 18, 2013
Estate and Gift Tax Study Group (Ober | Kaler, Baltimore) - 11:45 AM
April 30, 2013
State Tax Study Group (Ober | Kaler, Baltimore) - 8:30 AM
Fall 2012
TAX TALK • 17
Calendar of Events
MAY
May 9, 2013
Montgomery / PG County Tax Study Group (Jackson & Campbell, PC,
Rockville) - 8 AM
May 14, 2013
Employee Benefits Study Group (Venable LLP, Baltimore) - 12 PM
May 15, 2013
Transactional Tax Study Group (Whiteford Taylor, Baltimore) - 12 PM
May 16. 2013
Estate and Gift Tax Study Group (Ober | Kaler, Baltimore) - 11:45 AM
May 16 or 23, 2013
Annual Irving Shulbank Memorial Dinner and Program (tentative date)
May 21, 2013
State Tax Study Group (Ober | Kaler, Baltimore) - 8:30 AM
May 22, 2013
Tax Controversy Study Group (Rosenberg, Martin, Greenberg, LLP,
Baltimore) - 9 AM
JUNE
June 13, 2013
Tax-Exempt Study Group (Whiteford Taylor, Baltimore) – 8:30 AM
June 12-15,
13-14 2013
MSBA Annual Meeting, Ocean City (tentative date)
June 19, 2013
Transactional Tax Study Group (Whiteford Taylor, Baltimore) - 12 PM
June TBD, 2013
Estate and Gift Tax Study Group (Ober | Kaler, Baltimore) - 11:45 AM
MSBA Events
2013 MSBA Mid-Year Meeting
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
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2013 MSBA Annual Meeting


18 • TAX TALK
T A X T A L K © 2012
MSBA TAX SECTION
Editor, Jim Liang
Rosenberg Martin Greenberg LLP
25 South Charles Street
21st Floor
Baltimore, MD 21201
(410) 727-6600
(410) 727-1115 (Fax)
jliang@rosenbergmartin.com
www.rosenbergmartin.com
Comments, contributions, and suggestions are greatly appreciated. Please direct them to the Editor.
Items contained in Tax Talk reflect the views of the
individuals who prepared them and do not necessarily
reflect the opinions of the MSBA Tax Section.
Fall 2012