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Beyond The Fruit Tree: A Proposal For Revision Of The Assignment Of Income Doctrine—Caruth Corp. V. United States, 865 F.2d 644 (5th Cir. 1989), Traci A. Sammeth
Beyond The Fruit Tree: A Proposal For Revision Of The Assignment Of Income Doctrine—Caruth Corp. V. United States, 865 F.2d 644 (5th Cir. 1989), Traci A. Sammeth
Washington Law Review
The Supreme Court developed the assignment of income doctrine to solve the question of who the proper taxpayer is under section 61 of the Internal Revenue Code. The question arises when individuals transfer income that rightly belongs to them without declaring the income for federal tax purposes. The assignment doctrine attributes income, for tax purposes, to the earner or practical owner of the income notwithstanding that person's assignment of the income. However, the Supreme Court's development of the doctrine has been inadequate, as exemplified by the recent decision of the Fifth Circuit Court of Appeals in Caruth Corp. v. United …