New York state’s tax ‘workarounds’ will face IRS scrutiny, Professor Ventry tells Bloomberg Tax

Professor Dennis J. Ventry, Jr.told Bloomberg Tax that New York state’s attempts to mitigate the impact of the new federal tax law on deductions likely will face an IRS challenge.

New York Gov. Andrew M. Cuomo recently signed a bill that includes “workarounds” to counter the federal tax law’s $10,000 cap on state and local tax deductions. One workaround establishes statewide charitable funds to pay for health care and education. New Yorkers would be able to contribute in lieu of taxes.

Professor Ventry foresees the IRS issuing “imminent guidance” that will limit the deductibility of charitable credits.

“It’s near certain they are not going to say these programs are OK,” he told Bloomberg Tax.

Professor Ventry is an expert in tax policy and legal ethics. His research interests include tax expenditure analysis, family taxation, professional responsibility and standards of care, tax filing and administration, tax compliance, public finance, and tax and legal history. In addition, he is Chairman of the IRS Advisory Council, and co-author on the casebook, Federal Income Taxation with Martin McMahon, Jr., Daniel L. Simmons and Bradley T. Borden.