The Tax Law Center at NYU Law

taxlawcenter.orgComment on the proposed citizenship question on draft Form 1040The Tax Law Center—along with former IRS Commissioners John A. Koskinen and Danny Werfel; former National Taxpayer Advocate and current Executive Director of the Center for Taxpayer Rights, Nina Olson...

We joined former IRS commissioners John A. Koskinen & Danny Werfel, Nina Olson (Center for Taxpayer Rights), and @centeronbudget.bsky.social in a comment opposing adding a citizenship question to Form 1040 taxlawcenter.org/work/comment...

The proposed citizenship question would impede tax administration by chilling voluntary compliance. It marks a sharp reversal of IRS policy: the IRS has long recognized that asking about citizenship would be counter to its revenue collection and tax administration goals.

Adding the proposed citizenship question would be arbitrary and capricious, and it should be removed from the Form 1040 before it is finalized.

nytimes.comTrump Administration Prepares to Ask Tax Filers if They Are U.S. Citizens

The administration’s stated rationale for adding the question “doesn’t hold water,” our policy director Brandon DeBot previously told @nytimes.com. www.nytimes.com/2026/09/29/b...

taxlawcenter.orgNew Tax Law Center analysis in Tax Notes: “Are sports event contracts on prediction markets gambling for federal tax purposes?”We recently published an analysis in Tax Notes examining the federal tax treatment of sports event contracts on prediction markets. This post highlights key points from the article.

Prediction markets are booming, and the question of how they should be taxed has become a topic of debate. We have a new analysis in Tax Notes examining the federal tax treatment of sports event contracts on prediction markets. taxlawcenter.org/blog/new-tax...

It is therefore possible that the tax system will fail to collect potentially billions of taxes properly owed on sports event contracts, and in doing so provide an incentive for activity to flow from traditional sportsbooks to prediction markets.

As policymakers raise concerns about the social and health impacts of both gambling and prediction markets and consider tools including raising excise taxes, they should consider whether prediction markets provide a ready way to avoid federal excise and income taxes.

Based on our understanding of the facts and analysis of current law, we conclude that the best reading of the tax code is that sports event contracts appear, like conventional sports bets, to be "wagers” and “wagering" and subject to gambling excise and income tax rules.

There is currently no explicit public guidance or case law that specifically addresses the federal tax treatment of a sports event contract on a prediction market, and there is little clarity on what tax positions market participants are taking.

The Tax Law Center at NYU Law reposted

hamiltonproject.orgReforming regulation: Debating cost-benefit analysis and the role of OIRA - The Hamilton ProjectOn October 14, The Hamilton Project and The Tax Law Center at NYU Law will host a virtual event on how to improve federal rulemaking.

Replying to @hamiltonproject.org

Join us online TODAY @ 1:30 PM ET: www.hamiltonproject.org/event/reform...

The Tax Law Center at NYU Law reposted

hamiltonproject.orgReforming regulation: A proposal to end unsound cost-benefit analysis requirements for tax and transfer rules - The Hamilton ProjectGreg Leiserson offers a proposal to streamline and accelerate rulemaking and improve the quality of the rulemaking process.

A new proposal from @hamiltonproject.org and @taxlawcenter.org on regulatory reform is out. Greg Leiserson argues that formal cost-benefit analysis doesn’t make sense for a certain category of rules, known as tax and transfer rules. Learn more: www.hamiltonproject.org/publication/...

On October 14, Senior Fellow Greg Leiserson will speak at a @hamiltonproject.org virtual event focused on how to improve federal rulemaking. Register to watch online: www.hamiltonproject.org/event/reform...

In conjunction, the Tax Law Center and the Hamilton Project will release a policy proposal explaining how formal cost-benefit analysis does not provide meaningful insights when applied to rules implementing tax laws and other transfer programs like Social Security and Medicare.

taxlawcenter.orgTreasury and the IRS Should Withdraw Proposed Rules That Would Unlawfully Deny Tax Credits to Certain Noncitizen TaxpayersThe Tax Law Center submitted a comment in response to Treasury and the IRS’s proposed regulations that would unlawfully deny eligibility for the refunded portion of the Earned Income Tax Credit, Child...

We recently submitted a comment in response to proposed regulations that would unlawfully deny eligibility for the refunded portion of several tax credits. If finalized, these rules would take away credits from roughly a million people. taxlawcenter.org/blog/treasur...

Treasury and the IRS are attempting to override the clear rules Congress has set for tax credit eligibility and decades of administrative practice. Our comment explains why Treasury and the IRS’s analysis is deeply flawed and why finalizing the proposed rules would be unlawful.

americanprogress.orgBeyond Billionaires: Small Business, Taxes, and Who’s Rich in AmericaJoin the Center for American Progress for a conversation on business ownership as the main path to wealth in America, and what that means for the future of tax policy and the American Dream.

On Thursday 10/8, our Faculty Director Lily Batchelder will speak at an event hosted by @americanprogress.bsky.social focused on business ownership and wealth in America, and the implications for tax policy. Register to attend in person or online: www.americanprogress.org/events/beyon...

Center for American Progress@americanprogress.bsky.social

Don't miss this event on October 8th featuring the authors of "The Everywhere Millionaire," policy practitioners, and advocates! RSVP: www.americanprogress.org/events/beyon...

The Tax Law Center at NYU Law reposted

How can we improve federal rulemaking? On 10/14, join The Hamilton Project and @taxlawcenter.org for a virtual event on cost-benefit analysis and the role of OIRA: www.hamiltonproject.org/event/reform...

taxlawcenter.orgA New Wave of ETFs & Other Tax-Focused Investment ProductsIn certain corners of the investment fund world, engineered tax minimization strategies aimed at wealthy investors are proliferating. Many of these products rely in part on special tax rules that appl...

In certain corners of the investment fund world, engineered tax minimization strategies aimed at wealthy investors are proliferating. Many of these strategies rely in part on special rules that apply to exchange-traded funds, or ETFs. taxlawcenter.org/blog/a-new-w...

Treasury and IRS recently released guidance addressing the tax treatment of certain aggressive multi-step ETF transactions and indicating that they are focused on releasing additional guidance on several strategies. This is a positive development.

Treasury and the IRS should continue to pursue guidance addressing tax-motivated products that overstep the bounds of the law. But legislative action will also be required to most effectively preserve revenue and the integrity of the tax system.

The tax benefits of ETFs cost at least $205 billion in revenue over a decade as of 2021, according to a reported Joint Committee on Taxation estimate.

Certain of these transactions and products have been referred to as “shams,” “tax traps,” and “black holes” for capital gains. via.library.depaul.edu/cgi/viewcont...

Our new blog post explains the tax advantages ETFs provide that were not intended by Congress, and how some investors are using ETFs in increasingly aggressive ways.

wsj.comThe IRS Is Cracking Down on a Favorite Way the Ultrawealthy Pass On MoneyOne family is fighting a $736 million gift tax bill on its GRATs while the popular trusts proliferate.

22 Sept

The Wall Street Journal recently highlighted the use of GRATs – which are just one tool used to transfer wealth between generations while largely avoiding tax. www.wsj.com/personal-fin...

taxlawcenter.orgGrantor retained annuity trustsGRATS enable the transfer of wealth virtually free of transfer tax by taking advantage of legal ambiguity.

22 Sept

Our Tealbook highlights how policymakers can address the use of GRATs and make other reforms to strengthen the tax system. Reforms to the use of trusts could raise more than $80 billion over 10 years. taxlawcenter.org/tealbook/pol...

16 Sept

Today, the House Ways & Means Committee is marking up a bill focused on taxing digital assets like cryptocurrency. Policymakers should focus on three important principles when considering this bill: parity with similar assets, administrability, and guardrails to prevent abuse.

taxlawcenter.orgWhat’s new in the House Ways & Means bill on taxing digital assets?Today, the House Committee on Ways and Means is marking up a bill focused on the taxation of digital assets. This blog describes key changes in the bill being marked up today with a particular focus o...

16 Sept

Our new blog examines key changes in the bill and how it measures up to these important principles. taxlawcenter.org/blog/whats-n...

19 Aug

"The Administration is attempting to override both the clear rules Congress has set for tax credit eligibility and decades of administrative practice through a novel and incorrect reinterpretation of a 1996 law."

taxlawcenter.orgUpdated Resource: Policy options to broaden the tax baseWe have updated our “Tealbook,” a compendium of over 70 policy options to broaden and strengthen the tax base.

28 July

We have updated our "Tealbook," a compendium of over 70 policy options to broaden and strengthen the tax base. Updates include revised and new entries to account for OBBBA and other significant gaps in the tax system. Read more: taxlawcenter.org/blog/updated...

13 July

Our response to the court order issued by Judge Williams in the Trump v. IRS lawsuit.

taxlawcenter.orgThe Administration’s Regulatory Tax Giveaways Likely Exceed $100 Billion, with More Risks of Costly or Unlawful Actions on the HorizonWe have updated our spotlight for tax regulatory decisions to reflect new actions by Treasury and the IRS. We now estimate that the Trump Administration has likely delivered over $100 billion over a d...

8 July

We now estimate that the Trump administration has delivered more than $100 billion over a decade in tax cuts through regulatory giveaways, driven largely by undermining CAMT and rolling back regulations on partnership related-party basis shifting. taxlawcenter.org/blog/the-adm...

lawfaremedia.orgLawfare Daily: Attorney General Blanche’s Purported Waiver of Pres. Trump’s Past Tax LiabilitiesWhat steps could Congress take to investigate how the waiver came about?

2 July

Director of Litigation Kelsey Merrick explains the background on the Trump v. IRS lawsuit that led to the settlement agreement and audit release. Listen to our full conversation with @lawfaremedia.org: www.lawfaremedia.org/article/lawf...

Lawfare@lawfaremedia.org

The DOJ settled Trump's $10B IRS lawsuit, and acting AG Todd Blanche claimed to waive his past tax liabilities as a part of that settlement. 🎙️ @rparloff.bsky.social talked to @taxlawcenter.org's Brandon DeBot and Kelsey Merrick about the legality of the settlement. youtu.be/R3vAejMjTio?...

taxnotestalk.taxnotes.comTrump’s IRS Lawsuit and Settlement: What Comes Next? - Tax Notes TalkBrandon DeBot of the Tax Law Center at New York University discusses President Trump’s lawsuit and subsequent settlement with the IRS, where things stand with the "Anti-Weaponization" Fund, and potent...

29 June

The Trump v. IRS settlement is "part of a broader story about the breaking down of guardrails designed to prevent politicization of federal tax administration" says Policy Director Brandon DeBot in a conversation with @taxnotes.com. taxnotestalk.taxnotes.com/124942/episo...

24 June

We joined @lawfaremedia.org to discuss the audit release, potential violations of the tax system's protections against political interference, and what Congress can do. Watch the full episode: www.youtube.com/watch?v=R3vA...

Lawfare@lawfaremedia.org

On Lawfare Daily, @rparloff.bsky.social spoke to Brandon DeBot and Kelsey Merrick of @taxlawcenter.org about Attorney General Todd Blanche’s purported waiver of President Trump’s past tax liabilities on May 19, as part of a settlement of Trump’s $10 billion suit against the IRS. youtu.be/R3vAejMjTio

taxlawcenter.orgOur resources on how to unwind the Trump v. IRS dealThe Department of Justice announced on May 18 a settlement in Trump v. IRS and the creation of a $1.8 billion “compensation” fund. On May 19, the DOJ released an addendum which purports to drop claims...

24 June

See all our resources on the settlement, including an explainer and detailed analysis of what Congress should do to unwind the deal: taxlawcenter.org/blog/our-res...

taxlawcenter.orgHow Congress should quickly block the President’s get-out-of-tax-free cardMembers of Congress and observers across the political spectrum have criticized the Administration’s attempts to give the President, his family, and his affiliates an extraordinary release of claims i...

18 June

Although the $1.8 billion fund is currently blocked by a court order, the Administration is still attempting to give the President and his affiliates protection from audits. Our new piece offers four steps Congress should take to block this deal: taxlawcenter.org/blog/how-con...

18 June

Explainer on Trump-IRS settlement | how Congress can unwind the deal and block the audit protections, laws against political interference in tax administration, & DOJ’s lack of authority to unilaterally drop tax audits taxlawcenter.org/blog/our-res...

taxlawcenter.orgTaxing Large Pass-Throughs Like Corporations: A Closer LookIn a policy proposal for the Hamilton Project, we analyze a potential reform to pass-through taxation: requiring large or complex pass-through entities to pay federal income tax at the entity level, a...

16 June

We have a new paper with @hamiltonproject.org examining a proposal to tax large pass-through businesses like corporations. This proposal could raise significant revenue, but its success depends on its design and implementation. Read more: taxlawcenter.org/blog/taxing-...

hamiltonproject.orgTaking on tax: The future of corporate taxation - The Hamilton ProjectOn June 16, The Hamilton Project, the Tax Law Center at NYU Law, and the Urban-Brookings Tax Policy Center will host an event on business tax reform.

16 June

This paper is part of a @hamiltonproject.org series on business tax reform. Today’s event on the Future of Corporate Taxation will dive into the policy proposals in further detail. Register here: www.hamiltonproject.org/event/taking...

15 June

Join us tomorrow for a conversation on business tax reform: www.hamiltonproject.org/event/taking...

The Hamilton Project@hamiltonproject.org

TOMORROW at 3 PM ET: @hamiltonproject.org, @taxlawcenter.org, and @taxpolicycenter.bsky.social are hosting an event on business tax reform. www.hamiltonproject.org/event/taking...

11 June

On June 16, our Executive Director Chye-Ching Huang and Faculty Director Lily Batchelder will speak at a @hamiltonproject.org event focused on business tax reform. Register to attend or watch online: www.hamiltonproject.org/event/taking...

11 June

In conjunction with the event, the Tax Law Center, Hamilton Project, and Tax Policy Center will release a policy proposal examining taxing large pass-through businesses as corporations.

The Tax Law Center at NYU Law reposted

3 June

The United States collects substantially less revenue from corporations than it did several decades ago, and less than peer countries do today. On June 16, leading experts will discuss paths forward on business tax reform. RSVP here: www.hamiltonproject.org/event/taking...

justsecurity.orgWhat Congress Should Do About the President’s Sweetheart Deal in Trump v. IRSThree core actions that Congress must take to fully unwind the Trump administration’s settlement and hold its architects accountable.

3 June

Our new article in @justsecurity.org explores the legislative options available to block the audit release and the potential criminal violations of the tax code stemming from the negotiations over the deal. www.justsecurity.org/140939/congr...

taxlawcenter.orgOur resources on the Trump-IRS lawsuit and settlement agreementThe Department of Justice announced on May 18 a settlement in Trump v. IRS and the creation of a $1.8 billion “compensation” fund. On May 19, the DOJ released an addendum which purports to drop claims...

22 May

Explainer on Trump-IRS settlement | improper use of the Judgment Fund, laws against political interference in tax investigation, DOJ’s lack of authority to unilaterally drop tax audits, & why the $1.8 billion fund should be taxable to Trump plaintiffs taxlawcenter.org/blog/our-res...

In response to news that the Acting Attorney General signed an apparent addendum to the Trump v. IRS settlement with a sweeping general waiver of claims—including claims related to the President’s tax returns—Tax Law Center Policy Director Brandon DeBot released the following statement:

The IRS would need to act to make the release of claims effective, which could raise additional questions about whether there has been unlawful political interference in the audit process.

taxlawcenter.orgStatement on Trump Lawsuit & DOJ Settlement AddendumIn response to news that the Acting Attorney General signed an apparent addendum to the Trump v. IRS settlement with a sweeping general waiver of claims—including claims related to the President’s tax...

The settlement and general release of claims is a breathtaking abuse of the tax and legal system, at the same time courts are finding this administration is violating the taxpayer privacy laws the president is now invoking to seek extraordinary benefits for his own purposes."

"The new release heightens concerns about potential criminal violations of the tax code’s protections against political interference given White House officials’ reported involvement in the settlement negotiations—which demand thorough investigation.