Law Schools

How To Choose Where To Get Your Tax LL.M. Degree

Remember that which school is right for you depends on your professional goals.

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A few weeks ago, I wrote about whether it is a good idea to get a LL.M. in Taxation after law school. To make a long story short, go if you know what you want to do after graduation and have either prior professional tax experience or have done well in your tax classes. Don’t go just because you think tax “sounds interesting,” or you want to do a law school do-over.

So today, I want to give some advice to help future tax lawyers choose the right Tax LL.M. program. This column will be focused more on current law students who want to find a job after graduating, but I think the advice also applies to existing lawyers who want to incorporate tax into their practice or switch to tax altogether. I would like to thank the many Tax LL.M. graduates who reached out to me to share their thoughts, advice, and their subsequent student loan bills. I also want to thank the tax program directors and professors for their advice.

First, consider options other than a Tax LL.M. Some law schools do not have a formal Tax LL.M. program but award a general LL.M. with a tax specialization. There are also other advanced tax degrees. The more common ones are the Master of Taxation, the Master of Science in Taxation, and the Master of Business Taxation degrees. There are also MBA programs with a focus on tax and accounting.

So what is the difference between these degrees? The obvious one is that the LL.M. degree is only available to lawyers. LL.M. tax courses focus more on legal analysis and less on compliance and accounting. LL.M. programs also teach procedure courses that nonlawyer tax professionals generally do not use, such as civil and criminal tax litigation. Master’s in tax programs have courses on compliance where students will learn how to complete basic and complex tax forms, such as consolidated tax returns for corporations with multiple subsidiaries. But other than those, the course materials for many graduate tax programs are very similar. Most non-LL.M. tax programs also offer courses in personal income tax, gift and estate tax, corporate tax, and state and local tax. Also, master’s in tax degrees are usually less expensive than Tax LL.M. degrees.

Which one is right for you depends on your goals. If your goal is to work for a top tax law firm immediately after graduation, you may have no other choice but to get a LL.M. since that is the degree most lawyers are familiar with. In addition, most top firms will only hire from the top LL.M. programs, which I will describe later. But if your goal is to work for an accounting firm or a boutique tax law firm, they may be willing to hire people with non-LL.M. degrees. A non-LL.M. degree may be more advantageous than a Tax LL.M. degree if the accounting firm focuses more on compliance rather than legal analysis or consulting, especially if these courses also help you prepare for the CPA examination.

Second, when it comes to Tax LL.M. degrees, rankings still matter, although to a point. The TaxProf Blog publishes its annual top tax law programs taken from the U.S. News Tax Law Rankings. NYU is consistently ranked as the top Tax LL.M. program, with Florida and Georgetown rounding out the top three. The rest of the top stay the same although their rank tends to shuffle every year.

Generally, it is recommended to go to the name brand schools: NYU, Florida, Georgetown, and Northwestern. This is because these degrees carry a lot of weight and are known nationwide. If you are not interested in these schools, then it is better to choose a school in the area you want to practice in with priority given to the schools in the TaxProf list.

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Also, consider this. The top Tax LL.M. programs are very selective and only accept the top J.D. students. Thus, if you have been accepted to one of these programs, you might not need it to obtain a tax position at a large law firm as your J.D. grades and rank may be enough to get you a position. If you look at the profiles of the tax lawyers at the major firms, you’ll notice that many do not have Tax LL.M.s. Two of my favorite tax lawyers, the late Martin Ginsburg and Mitch McDeere, also do not have Tax LL.M.s. Also, you may be giving up a job offer at a reputable firm so consider this opportunity cost as well.

Finally, the earlier you decide, the better. If you are a 1L, you have the option to transfer to the school where you want to get the LL.M. If you are a 2L, you can apply to be a visiting student although you will get your law degree from the school you currently attend. This is important for two reasons. First, you can get a feel for the school to see if it is a good fit when you matriculate as an LL.M. student. Second, many Tax LL.M. programs give credit for tax courses taken at the school while a J.D. student. This can allow you to obtain the degree in one semester instead of one year, thus saving you time and money.

And as usual, I must remind every potential student to always negotiate a tuition discount. With tuition and living expenses, you will be paying up to an additional $100,000 per year. Remember, law schools do not give you a higher GPA for paying full sticker price. I recently learned that only 25 percent of law students are paying full tuition. If you are not willing to negotiate down tuition, you may want to think about whether you can deal with a tax audit.

Choosing the right Tax LL.M. program will require you to think about tuition, opportunity costs, and employment opportunities after graduation. Some people may not need a Tax LL.M. to obtain a tax job. Either their law school grades might be enough or a Master’s in Tax degree will get the same results at a cheaper price.

If you want more detailed information about selecting a Tax LL.M. program, read these two articles:

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Steven Chung is a tax attorney in Los Angeles, California. He helps people with basic tax planning and resolve tax disputes. He is also sympathetic to people with large student loans. He can be reached via email at sachimalbe@excite.com. Or you can connect with him on Twitter (@stevenchung) and connect with him on LinkedIn.

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