Obama nominated Kathryn Keneally, a partner at Fulbright & Jaworski and longstanding officer in the ABA Tax Section as chair of several important committees, as head of the Justice Department's tax division.
Obama's prior nomination, Mary Smith, was blocked in the Senate because of her lack of tax experience. Keneally, in comparison, has extensive experiecne in tax controversies. As her firm blurb notes, she 'has represented financial institutions, public and private corporations and individuals in commercial litigation matters, in addition to representing individuals and companies in federal, state and locasl tax proceedings, sensitive criminal investigations, trials and appeals." Areas include "tax controversy, tax fraud, money laundering, currency trnasaction reporting, securities fraud, bank fraud, false statements, RICO and issues under the U.S. Sentencing Guidelines."
Keneally has been a pro-taxpayer litigator, arguing strenuously for taxpayer-favorable interpretations of the Code and common law privileges, including an article castigating the First Circuit for its decision in Textron that tax accrual workpapers, prepared in the ordinary course of business for financial accounting purposes, were not protected by the work product doctrine. If confirmed as litigator in the Justice Department on behalf of the government, which there is every expectation that she will be, she will need to look at these issues more closely from the government's perspective.
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