Post-Graduate Legal Training: The Case for Tax-Exempt Programs

65 Journal of Legal Education 463 (2016)

43 Pages Posted: 10 Nov 2015 Last revised: 2 Feb 2016

See all articles by Adam Chodorow

Adam Chodorow

Arizona State University (ASU) - Sandra Day O'Connor College of Law

Philip Hackney

University of Pittsburgh - School of Law

Date Written: 2015

Abstract

The challenging job market for recent law school graduates has highlighted a fact well known to those familiar with legal education: A significant gap exists between what students learn in law school and what they need to be practice-ready lawyers. Legal employers historically assumed the task of providing real-world training, but they have become much less willing to do so. At the same time, a large numbers of Americans – and not just those living at or below the poverty line – are simply unable to afford lawyers. In this Article, we argue that post-graduate legal training, similar to post-graduate medical training, is a good way to address these market failures and reduce the gap in both skills and legal services.

We consider a number of questions regarding how best to structure post-graduate legal training programs, including whether law schools should take the lead in developing them, and, if so, whether to locate such programs within law schools. We then turn to the important tax issues such programs raise. Programs operated within law schools should generally not affect those schools’ tax-exempt status. Tax exemption for stand-alone programs is more complicated, but we conclude that properly structured programs should be granted tax-exempt status, both as a policy matter and under current IRS guidance. We offer suggestions about how best to design programs to come within that guidance and call on the IRS to issue clear guidance for these kinds of programs.

Keywords: tax exempt, charitable organizations, legal education, access to justice, charities, 501(c)(3), skills training, non-profit, education, post-graduate legal training

JEL Classification: I20, I22, K34

Suggested Citation

Chodorow, Adam and Hackney, Philip, Post-Graduate Legal Training: The Case for Tax-Exempt Programs (2015). 65 Journal of Legal Education 463 (2016). Available at SSRN: https://ssrn.com/abstract=2687549

Adam Chodorow (Contact Author)

Arizona State University (ASU) - Sandra Day O'Connor College of Law ( email )

Box 877906
Tempe, AZ 85287-7906
United States

Philip Hackney

University of Pittsburgh - School of Law ( email )

3900 Forbes Ave.
Pittsburgh, PA 15260
United States
412.643.0434 (Phone)
412.648.2649 (Fax)

HOME PAGE: http://www.law.pitt.edu/people/philip-hackney

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