Law Commons^™

Corporate Employee Tax Status For The Professional Man, Carmen A. Stavole

Cleveland State Law Review

Professional associations (i.e., corporations) have been specifically authorized by several state legislatures recently, contrary to the old rule that practice of a learned profession by a corporation is forbidden. Among these states are Connecticut, Illinois, Ohio, Oklahoma, Pennsylvania and Wisconsin. The purpose is to make available to professional men the tax advantages of corporate employee status.

Corporate Employee Tax Status For The Professional Man, Carmen A. Stavole

Cleveland State Law Review

Professional associations (i.e., corporations) have been specifically authorized by several state legislatures recently, contrary to the old rule that practice of a learned profession by a corporation is forbidden. Among these states are Connecticut, Illinois, Ohio, Oklahoma, Pennsylvania and Wisconsin. The purpose is to make available to professional men the tax advantages of corporate employee status.

Stock Options For Directors In Small Corporations, Robert H. Moore Jr.

Cleveland State Law Review

The treatment stock options have received since the enactment of Section 421 of the 1954 Code has come under much criticism. Section 421 of the Code authorizes the so-called "restricted"stock options. It is not the purpose of this paper, however, to enter the controversy about restricted stock options but to consider the so-called "non-restricted" and to suggest revisions in the law that appear merited with respect to them.

Taxation-Federal Income Tax-Accrual Of State Property Taxes Paid Under Protest, Robert L. Harmon

Michigan Law Review

During the years 1946 to 1950 a local tax upon respondent's real property was assessed at one hundred dollars. Respondent paid the full assessment to avoid interest penalties and seizure and sale of the property under tax liens, but contested the assessment in the state court, denying any liability greater than eighty-five dollars. In each of the preceding years, complying with a private ruling directed to it by the Commissioner, respondent had deducted the full one hundred dollars, and, when in 1951 the tax was fixed by the state court at ninety-five dollars, respondent included the five-dollar refund in its …

Bankruptcy-Federal Tax Claims-Accrual Of Post-Petition Interest, Robert Lane

Michigan Law Review

In 1953 taxpayer filed a petition and was discharged in bankruptcy owing federal withholding and social security taxes for 1951. In 1958 taxpayer became entitled to a refund on his 1953-1954 taxes. The Commissioner applied a portion of this ·refund against the balance of the tax for the year 1951, plus accrued interest to 1958. Taxpayer claimed that he was not liable for the interest which had accrued during the period between the date of petition in bankruptcy and the date of refund. When the Commissioner disallowed his claim, the taxpayer brought an action in district court to recover the …

Taxation - Federal Income Tax - Capital Gain Treatment Of Amount Received From Sublessee By Lessee-Sublessor For Surrender Of Lease To Lessor, Paul Tractenberg

Michigan Law Review

The lessor and the sublessee of a valuable piece of business property sought to remove the intervening interest of petitioner, the lessee-sublessor. Petitioner agreed to release to the lessor all his right and interest in the leasehold and in consideration therefor petitioner received a sum of money from the sublessee. The Tax Court decided in a deficiency proceeding that the entire amount should be taxed as ordinary income on the ground that it was merely a substitute for future rental payments. On appeal, held, reversed. Since the substance of the transaction was the transfer of the leasehold from the …

Taxation - Federal Income Tax - Deductibility Of Seminar Cruise As Business Expense, Thomas W. Van Dyke

Michigan Law Review

Petitioner, a physician, participated in a postgraduate medical seminar held aboard a passenger ship during an eighteen-day cruise of the Mediterranean. A number of hour-long lectures followed by discussion periods were held on the ship during each of the six or seven days it was at sea and occasionally while in port; additional study was not required. Petitioner spent most of his time in leisurely activities aboard ship and in sightseeing. All expenses of the course and cruise were included in one charge which petitioner claimed as an ordinary and necessary business expense under section 162 (a) . The Commissioner …

Revenue Procedure 60-18—New Techniques For The Early Consideration And Disposition Of Tax Court Cases, Melvin L. Sears

Washington Law Review

With the promulgation of Revenue Procedure 60-18 (published in IRB No. 1960-37, p. 61), the Internal Revenue Service has again instituted a procedure for the benefit of the taxpayers, the tax Bar, the Tax Court and the Service. The effective operation of this new procedure undoubtedly will prove to be of substantial benefit to all parties concerned by securing a fair and expeditious disposition, either by settlement or trial, of tax controversies before the Tax Court.

Taxation- Federal Income Tax-Status Of Stock-For-Stock Exchange Where Boot Is Involved, Roger B. Harris S. Ed

Michigan Law Review

Taxpayer was the sole stockholder of International Dairy Supply Company. In 1952, Foremost Dairies, Inc. acquired from taxpayer all his stock in Supply Company in exchange for 82,375 shares of Foremast's common stock and 3,000,000 dollars cash. Taxpayer reported as gain from the transaction only the 3,000,000 dollars "boot" received, less allowable expenses. The Commissioner determined a deficiency of 278,823 dollars, asserting that the nonrecognition provision of the 1939 Code counterpart of section 356 (a) (1) was inapplicable and therefore taxpayer's entire gain realized on the disposition must be recognized. The Tax Court upheld taxpayer's contention that by virtue of …

The Western Hemisphere Trade Corporation, Edward C. Blank, Ii

Vanderbilt Law Review

The existing complexity involved in the taxation of corporate income derived from sources without the United States has motivated Congress to undertake an extensive review of our governmental policy pertaining to this area of taxation. The particular provisions of the Internal Revenue Code of 1954 relating to this subject are merely an ad hoc accumulation, noticeably void of any systematic design. The intended purpose of the present congressional inquiry is to determine whether or not incentive taxation is a proper method by which this nation's foreign policies can be implemented. If it be deemed advisable to offer tax benefits to …

Book Reviews, Winthrop R. Munyan, John W. Fager, Walter P. Armstrong Jr., Jerry L. Moore

Vanderbilt Law Review

Taxation of Foreign Income By Boris I. Bittker and Lawrence F. Ebb. Stanford: Stanford University, 1960. Pp. xii, 580.

reviewer: Winthrop R. Munyan

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The Planning and Administration of Estates Edited by Rene A. Wormser. New York: Practising Law Institute, 1961. Pp. 324.

reviewer: John W. Fager

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How to Evaluate and Settle Personal Injury Cases By Allen Bush Indianapolis: The Bobbs-Merrill Company, Inc., 1959. Pp. x,148.

reviewer: Walter P. Armstrong, Jr.

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The Tax Practice Deskbook By Harrop A. Freeman and Norman D. Freeman Boston and Toronto: Little, Brown and Co., 1960. Pp. vii, 581. $17.50.

reviewer: Jerry L. …

Characterization Of An Income Tax For The Purpose Of The Foreign Tax Credit, Stanley L. Ruby

Vanderbilt Law Review

Perhaps the best reconciliation of the many conflicting policies underlying the foreign tax credit would be to give preferential treatment by tax treaties to investment income from those areas where our foreign policy dictates that investment should be encouraged, whereas taxes imposed on income from other areas should be handled by the deduction approach. Thus the loss of revenue through investment in heavily industrialized areas (with stable governments and relatively little risk-taking) with high tax rates would end, but there would exist the flexibility, through treaties, to encourage investment in underdeveloped areas.

Federal Income Taxation: Meals And Lodging Furnished For The Convenience Of The Employer - Two Sequels To The Boykin Case, Rexford R. Cherryman

William & Mary Law Review

No abstract provided.

The Deductability Of Moving Expenses And Investigatory Expenses, Bernard Goldstein

William & Mary Law Review

No abstract provided.

The Civil Aspects Of The Net Worth Method, Richard D. Schwab

William & Mary Law Review

No abstract provided.

Federal Income Taxation: Deductability Of Medical Expenses Which Are Also Personal Expenses, Ronald L. Buckwalter

William & Mary Law Review

No abstract provided.

Taxation - Federal Income Tax - Published Opinions Of The New Tax Officialdom: A Review, David G. Hill S.Ed.

Michigan Law Review

President John F. Kennedy has appointed as his principal tax officials two men who have long been on record as proponents of tax reform. This comment is a collection and, to a small extent, an analysis of the opinions found in their published statements on taxation. Stanley S. Surrey, fifty-year-old Assistant Secretary of the Treasury for Tax Policy, first served with the Treasury Department in 1937. He was Tax Legislative Counsel from 1942 to 1947 and later served as Special Counsel to the House Ways and Means Subcommittee on Administration of the Revenue Laws. He also has served as Reporter …

Taxation-Federal Income Tax-Corporation Held Not Collapsible Where View To Sell Arose After Construction Completed, Amalya L. Kearse

Michigan Law Review

Petitioners had formed a corporation for the purpose of building and operating a housing project. After the construction was completed and most of the apartments rented, small cracks were discovered in the buildings. Without soliciting engineering or other technical opinion, petitioners sold their stock in the corporation. The Tax Court upheld respondent-commissioner's taxing the profit from the sale of stock as ordinary income rather than capital gain, on the theory that the corporation was "collapsible" under section 117 (m) of the Internal Revenue Code of 1939. On appeal, held, reversed. Since the view to the sale of stock did …

Taxation - Income Tax -Gross Income From Mining As The Basis For Computing Percentage Depletion Allowances, John Niehuss

Michigan Law Review

Respondent, a miner of raw fire clay and a manufacturer of such clay into vitrified products, claimed a percentage depletion deduction based upon the gross income from the sale of its finished goods, contending that because its crude minerals could not be sold profitably in a local market, these final products were the first to meet the statutory standard of "commercially marketable mineral product." The district court and the Court of Appeals for the Seventh Circuit accepted respondent's contention. On certiorari to the United States Supreme Court, held, reversed, one Justice concurring. The fact that a taxpayer himself cannot …

Payments To Widows--Taxable Income?, Thomas L. Jones

Kentucky Law Journal

No abstract provided.

Sale Of Endowment Policy To Avoid Ordinary Tax Treatment, Richard Attea

Buffalo Law Review

Commissioner v. Phillips, 275 F.2d 33 (4th Cir. 1960).

Taxation Of Professional Athletes, Ronald B. Cohen

Cleveland State Law Review

There is very little doubt that the current income tax laws are not applied with equal fairness to people of all occupations. There are many groups whom Congress has seen fit to give many tax advantages, both directly and indirectly. Others assert, and rightly so, that they must pay too much of the tax burden. Professional athletes have probably often wondered just which category best fitted them. This article is for the purpose of pointing out some of the unique problems of the "play for pay" boys. I have grouped those problems into three topics, which I call, "Deferred Compensation", …

Tax Of Qualified Deferred Compensation Plan, Lucius C. Gossick

Cleveland State Law Review

One of the primary reasons for the steady growth in the number of qualified deferred compensation plans described in Section 401 (a) of the Internal Revenue Code of 19541 is their usefulness as tax planning devices. An important tax consideration in adopting such a plan is that the taxation of plan benefits to employee-participants or their beneficiaries, provided by current employer contributions, will be deferred to some future time. Because of the rapid changes that occur in the income tax law this article will cover general tax considerations applicable to such benefits that exist presently. Consideration will be given the …

Taxation-Federal Income Tax-Strike Benefits May Be Gifts, Christopher Cobb

Michigan Law Review

Taxpayer received assistance from a labor union while he was participating in a strike called by the union. The area in which he lived had become a distressed area as a consequence of the strike, and the union had established a general program of aid for strikers with no other source of income. Both before and after he joined the union payments were made to taxpayer under this program. Taxpayer sued for a refund of the income tax he payed on the value of the assistance so received, and the jury returned a verdict in his favor, finding the payments …

Taxation - Federal Income Tax- Full Payment A Prerequisite To Refund Suit, Stuart S. Gunckel

Michigan Law Review

A tax deficiency of $28,908.60 including interest was levied by the Commissioner of Internal Revenue against the petitioner for a single tax year. Petitioner paid $5,058.54 but later filed a claim for refund which was disallowed by the Commissioner. On suit by petitioner in a United States district court for the refund, the court held the petitioner was not entitled to the refund because the claimed losses were actually capital in nature. The Court of Appeals for the Tenth Circuit reversed and dismissed the complaint on the ground that the district court could not have jurisdiction until there had been …

Tax—Lease Agreements—Deductibility Of "Rental" Payments As Business Expense, Robert W. Mckisson Jr.

Washington Law Review

During 1959 two cases involving the right to deduct as an "ordinary and necessary" business expense rental payments made pursuant to equipment lease contracts came before the Courts of Appeals of the Eighth and Ninth Circuits. Both taxpayers claimed the deductions were permissible by authority of section 162 (a) (3) of the 1954 Internal Revenue Code. In both cases the Commissioner of Internal Revenue determined that the "lease" agreements were actually conditional sales contracts, the taxpayer thereby having title to the property, or that with each "rental" payment the taxpayer acquired an equity in the property. The Commissioner disallowed the …

Taxation - Federal Income Tax - Section 355 Held Applicable To The Division Of A Single Business, James N. Adler

Michigan Law Review

Petitioner, E. P. Coady, and M. Christopher each owned 50 percent of the stock of the Christopher Construction Co., a corporation engaged for more than five years prior to November 15, 1954, in the conduct of a construction business. On that day the parent, Christopher Company, organized a subsidiary, E. P. Coady & Co., to which it transferred approximately one half of its contracts, equipment, and cash. In exchange, the parent company received all the stock of the subsidiary. Immediately thereafter, the parent distributed to petitioner, one of the two equal shareholders of the parent company, all the stock of …

Taxation, Amount Received For Future Damages, John J. Harrington

William & Mary Law Review

No abstract provided.

The Income Tax Effect Of Mortgages, John W. Drye, Jr.

Washington and Lee Law Review

No abstract provided.

Useful Life, Salvage Value, And The 1954 Internal Revenue Code

Washington and Lee Law Review

No abstract provided.