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Saint Louis University School of Law

Tax

2015

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Merger Is Indirect Gift In Cavallaro, Kerry A. Ryan Jan 2015

Merger Is Indirect Gift In Cavallaro, Kerry A. Ryan

All Faculty Scholarship

In Cavallaro v. Commissioner, the Tax Court held that a merger of two family-owned businesses resulted in a substantial taxable gift. The taxpayers avoided penalties by demonstrating that they relied in good faith on the mistaken advice of competent tax advisers.