Election year lull? Not in the tax world.

• Author: McDonough, Robert J.

In my last column, I wrote that 2008 will involve a lot of "stage setting" in terms of what will happen following this year's U.S. presidential election. While that remains the case, TEI's year has already been eventful--and promises to remain that way. A look at the table of contents of this issue confirms the tax world (and the Institute) has not slipped into a state of suspended animation:

* We held productive liaison meetings with the Treasury Department's Office of Tax Policy, the Internal Revenue Service, and the IRS's Large and Mid-Size Business Divisions.

* We filed comments on the recent protocol to the U.S.-Canada tax treaty (a first for the Institute), as well as on the final report of the Organisation of Economic Co-operation and Development on the role of tax intermediaries.

* We reiterated our opposition to the codification of the economic substance doctrine--successfully this time around, though the subject requires continuing vigilance.

* We offered suggestions for how the IRS and Treasury can improve the rules (currently set forth in Notice 2007-88) relating to accounting method changes.

* And we testified before the IRS Oversight Board on ways in which the Internal Revenue Service can recruit, develop, and retain its next generation of leaders.

The agendas for TEI's Washington liaison meetings (reprinted in this issue) confirm the breadth and depth of the Institute's technical interest--from the CAP program and LMSB's industry issue focus program to the use of data from Schedule M-3 in case and issue selection and possible modification of the cellphone substantiation rules; from the rules regarding capitalization of expenses and section 965 to imposition of penalties on return preparers and other practitioners and ongoing treaty negotiations; and from GAAP/ IFRS convergence (and its effect on LIFO accounting) to the (now issued) contract manufacturing regulations.

They also confirm, albeit indirectly, the debt TEI owes its cadre of committee chairs and members who spearhead our advocacy efforts. I thank everyone who participated in the development of the agenda, and offer special thanks to our committee chairs and the members of the Executive Committee who travelled to Washington to participate in the meetings.

I also wish to single out the leadership and openness of Eric Solomon at the Treasury Department, Linda Stiff at the Internal Revenue Service, and Frank Ng at the Large and Mid-Size Business Division. TEI's liaison...