Tax Court cases have drama, according to Damien Martin, CPA, tax partner at EY. Whether it’s a complicated divorce or a business dispute, the real-life scenarios of tax law make reading court cases interesting.
“Cases are a really fun way to learn about tax and the tax law,” said Martin. “They fill in the gaps between the regulations and guidance and how you’re actually going to apply [them] in a real-life financial situation.”
Reviewing and contextualizing tax cases is one of the best ways to become a stronger and more knowledgeable tax practitioner, and looking at past cases can help you understand the future of the tax code.
Learn something you didn’t know before
Today’s tax policy and applications are rooted in previous tax cases and rulings, making them invaluable educational tools. While reviewing previous cases is important, Martin admits reading them can be difficult with their dry content and legal jargon. He prefers to have casual, approachable conversations about tax law that break down the facts of each case and ruling.
That’s why Martin and fellow EY tax partner Tony Nitti, CPA, will explore noteworthy tax cases during the 2023 AICPA®& CIMA® National & Sophisticated Tax Conference, Nov 13–14. Inspired by previous podcast episodes they’ve hosted together, the two will delve deep into seven tax cases in their session, "The Top Tax Cases of All Time.”
The key characteristic to make the list isn’t the complexity of a crime committed or the amount of money involved. The common thread these cases all share, according to Martin, “is that you’ll walk away learning something about the tax law that maybe you didn’t know before.”
Practitioners at every level of their careers can benefit from diving into tax law and exploring the nuances.
“Lifelong learning is at the heart of why I love what I do,” said Martin. “This provides a framework you can apply to other situations. We’re talking about a fundamental skill you can use no matter where you’re at in your career.”
The lasting impact of Glenshaw and the potential impact of Moore
While it’s been nearly 70 years since the Supreme Court ruled in Commissioner v. Glenshaw Glass Co., Martin still loves to discuss this seminal case because it broadened the definition of income. It’s important for tax practitioners to take cases like Glenshaw and review them under today’s lens to better understand possible issues that could arise for your clients or your firm.
“Glenshaw is the definitive case on income recognition,” said Martin. “But it wouldn’t have been before the court if there wasn’t some element of interpretation. That’s the reason to still talk about these cases — to understand them through a different lens of current events.”
But Martin and Nitti will also be stepping into the future and talking about Moore v. United States, a pending Supreme Court Case for which a ruling could alter a significant portion of the Internal Revenue Code. Because of its potential far-reaching consequences, Martin wants to discuss how the case evolved and what potential rulings could mean for the profession.
Bring tax code to life
Tax law and compliance are complex and ever-changing and require a never-stop-learning mindset. Being a tax practitioner has evolved far beyond filing tax returns and could involve needing familiarity with cybersecurity, digital assets, sustainability data, and so much more.
The AICPA & CIMA National & Sophisticated Tax Conference enables learning opportunities for professionals at every level of their careers. Just one of the many engaging sessions at the conference, "The Top Tax Cases of All Time” will add context, nuance, and personality to tax code — bringing cases off of the page and into the real world.
“There’s the numbers on the page when you’re filing tax returns and then there’s the story behind the numbers — and that’s the interesting thing,” said Martin. “And that’s what case law does: It brings the stale words on the page to life.”
Demystify the federal tax ecosystem at the 2023 AICPA® & CIMA® National & Sophisticated Tax Conference, where you’ll connect with industry experts, emerging trends, learn the latest federal tax updates and access resources to better serve your clients. Learn more about live online and on-site options. The two-day conference kicks off on Monday, Nov. 13, at the Omni Shoreham Hotel in Washington, D.C. Register today.