We’ve launched Minimum Competence CLE, and our first course is now available completely free. Researching Federal Tax Issues After Loper Bright looks at how the Supreme Court’s decision ending Chevron deference changes the way lawyers should research and evaluate Treasury regulations, IRS guidance, and other federal tax authorities. Take the course and earn CLE credit at cle.minimumcomp.com. This Day in Legal History: Ford Pardons Nixon On September 8, 1974, exactly one month after Richard Nixon resigned the presidency, his successor, Gerald Ford, granted him “a full, free, and absolute pardon” for all federal crimes he “committed or may have committed” while in office. In a single stroke, Ford ended the possibility that a former president would be criminally prosecuted for Watergate—and he did it before Nixon had even been charged with anything. The pardon was, and remains, one of the most controversial exercises of presidential power in American history. Ford defended it as an act of national healing, arguing that a prolonged prosecution of Nixon would keep the country trapped in the trauma of Watergate—that, as he put it, “our long national nightmare” needed to end. Critics were furious, many suspecting a corrupt bargain in which Ford had traded the pardon for the presidency. The decision almost certainly contributed to Ford’s narrow loss in the 1976 election. Ford himself later carried in his wallet a passage from the Supreme Court’s decision in Burdick v. United States, which held that accepting a pardon carries an imputation of guilt—his answer to those who said Nixon got off scot-free. The significance of September 8, 1974 is that it defined, in the most dramatic possible way, the breadth of the constitutional pardon power. The Constitution gives the president near-total authority to pardon federal offenses, and the Nixon pardon showed just how sweeping that is: it can be granted before charges are filed, for unspecified crimes, over enormous public objection, with no one able to override it. That power—its scope, its potential for abuse, its use to shield allies from accountability—has been very much in our headlines this year, from the January 6 pardons onward. Ford’s decision is the towering precedent behind all of it, and the enduring, unresolved question it poses is the one we still argue about: is the pardon power an instrument of mercy and healing, or a tool for placing the powerful beyond the reach of the law? A federal appeals court has upheld the ban on the administration’s bid to use a federal immigration database to scrub state voter rolls—another significant ruling in the long-running fight over federal control of elections. In a 2-1 decision, the D.C. Circuit declined to lift a lower court’s block on the government using the Department of Homeland Security’s SAVE system—that’s the Systematic Alien Verification for Entitlements database—to check the citizenship of registered voters. The legal grounds are worth noting because they’re a bit unusual. Chief Judge Sri Srinivasan and Judge Robert Wilkins, both Obama appointees, upheld the finding that using SAVE this way likely violates the Social Security Act, because the system exposes millions of Americans’ private information, including Social Security data. The court also flagged the accuracy problem we’ve discussed before: SAVE is error-prone, and relying on it risks flagging actual citizens, forcing them to prove their citizenship or even face cancellation of their registration. Judge Gregory Katsas, a Trump appointee, dissented. The ruling keeps the database off-limits for voter checks ahead of the November 3 midterms. This is a direct continuation of the SAVE fight we covered back in July, and it fits the summer-long pattern—courts repeatedly rebuffing federal efforts to centralize control over voter rolls, and here doing so on a privacy statute rather than the Constitution. The significance is that, once again, and now at the appellate level, the judiciary has said the federal government cannot repurpose a benefits-verification database into an election-policing tool—especially not weeks before an election, and not at the cost of exposing private data and risking the disenfranchisement of eligible citizens. Federal appeals court upholds ban on Trump’s bid to use citizenship data for voter checks | Reuters Now for the first half of a double dose of my own work this week—and this one let me put on my data-analyst hat. I did the statistical analysis behind a Bloomberg Tax deep dive into the “Montana license plate” loophole, and the numbers are genuinely startling. Here’s the scheme: instead of registering your car—or truck, boat, or private plane—in your home state and paying sales tax and fees, you set up a shell LLC in Montana, which has no sales tax, cheap registration, no emissions testing, and lets you hide behind the company. A registered agent will do it all for you, for around a thousand dollars, and you never have to set foot in Montana. The result is a lot of very expensive vehicles wearing Montana plates in states where their owners actually live. My job was to measure how big this has gotten, and I did it by comparing Montana to its genuinely car-heavy rural neighbors—Idaho, the Dakotas, Wyoming. The headline figure: in 2024, Montana had over 2.4 million registered vehicles but only 879,000 licensed drivers—a ratio of 2.81 vehicles per driver, the highest in the nation and more than double the U.S. average. That implies nearly a million vehicles that can’t be explained by geography or economics—and measured against the national average rather than Montana’s rural peers, the “excess” balloons to about 1.4 million. Crucially, the pattern tracked the national average until about 2010, and then registrations exploded, up 175% as the registered-agent LLC industry took its pitch online. My simulations put the lost sales-and-use-tax revenue somewhere between $2 billion and $5.1 billion. And states are now fighting back hard: Utah, using its insurance database to cross-check, has flagged as many as 80,000 suspect vehicles and is sending demand letters in waves; California has brought criminal charges; Tennessee indicted a YouTuber who filmed himself torching a Montana-plated Ferrari. The significance is that this sits right on the line between lawful tax avoidance and unlawful tax evasion—and the data suggests an awful lot of people have wandered across it. Utah Takes Montana License Plate Fight to 80,000 Vehicle Owners | Bloomberg Tax And for the second half of the double dose—my column for Bloomberg Tax this week—I look at a smaller but wonderfully fixable problem: New York’s charitable-giving program is letting donations pile up, undistributed, inside state government. Here’s the setup. When New Yorkers file their state income taxes, they can donate part of their refund to various charitable causes through tax “checkoffs.” The giving side actually works—New Yorkers gave $3.8 million this way in fiscal 2025, up from $2.6 million the year before, and I think the moment of a refund is psychologically a great time to give; that $50 feels more like found money than it does weeks later. The problem is what happens next. The state comptroller found $17.5 million sitting undistributed in these funds—the Gifts for Food Banks Fund sitting on more than a million dollars, a volunteer-firefighter and EMS recruitment fund holding more than two million, neither having disbursed a cent since 2023 or 2024. The money is being collected and then stranded inside a state grantmaking bureaucracy. My argument is that the fix is easy: stop routing charitable intent back through the government. Instead of parking donations in state-administered funds, New York should let taxpayers direct their contributions straight to eligible nonprofits—the state maintains a registry of qualifying charities, the taxpayer picks one at filing, and the state’s role ends at verifying eligibility and remitting the payment. That turns a grantmaking problem, which needs appropriations and agencies and rules, into a payment-processing problem, which the state already knows how to solve. If lawmakers want to juice giving further, offer a small match on the first $50 or $100. The deeper point is philosophical: the whole justification for favoring charities is that they do public-serving work outside of government—so when you route the giving back through Albany, and the money just sits there, you’ve defeated the entire purpose. A hungry person doesn’t get less hungry waiting for an agency to figure out how to disburse a food-bank fund. New York’s Bureaucratic Charitable Giving Program Has an Easy Fix | Bloomberg Tax This is a public episode. If you'd like to discuss this with other subscribers or get access to bonus episodes, visit www.minimumcomp.com/subscribe