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Close The Yield Exemption Loophole Created By Childs, Brant J. Hellwig, Gregg D. Polsky
Close The Yield Exemption Loophole Created By Childs, Brant J. Hellwig, Gregg D. Polsky
Scholarly Articles
The proposal would reverse the holding of Childs v. Commissioner, 103 T.C. 634 (1994), and clarify that a contractual payment obligation received by a service provider is subject to immediate taxation under section 83 if the obligor is a person other than the recipient of the service provider’s services. As a result, the proposal would ensure the appropriate taxation of investment income in structured payment arrangements.
The proposal is based on a more comprehensive article by the authors, forthcoming in volume 51 of the Boston College Law Review, titled ‘‘Taxing Structured Settlements,’’ a draft of which is available at http://ssrn.com/abstract=1403248. …