Law Commons^™

Professor T.S. Adams (1873-1933) On Federal Taxation: Deja Vu All Over Again, Thomas Earl Geu

Akron Tax Journal

Professor Thomas Sewell ("T.S.") Adams was instnmental in the development of the income tax and one of income tax's greatest proponents. As a result of his efforts, he left much of the income tax as his legacy. Born on December 29, 1873, he was a Professor of Political Economy at Wisconsin. Washington University in St. Louis, Comell, and Yale.

Beyond being a scholar, however, he was pragmatist and was very aware of the practical significance of an efficient and effective tax system. He recognized that the true laboratory of tax theory was the nation's economy, and he actively engaged in …

S Corporation Shareholders And Entity-Level Indebtedness: Is A Shareholder Ever Allowed To Deduct Losses Against Entity-Level Indebtedness?, Sumner E. Copple Iii

Akron Tax Journal

The owner of a closely-held business does not generally consider the tax implications when it is necessary to obtain financing for his business. A loan is negotiated and the borrowed funds are put to use by the business. However, in the case of a third-party loan to an S corporation,' different tax consequences may greet taxpayers conducting business as an S corporation, depending on the form of the loan transaction. Business owners adopting the S corporation form of doing business may discover that operating losses of the entity cannot be deducted due to the form of loan transactions between their …

Bankruptcy Officials Vs. The Internal Revenue Service: The Beat Goes On, Craig J. Langstraat, K. Dianne Jackson

Akron Tax Journal

This author has previously addressed several areas of conflict between bankruptcy officials; i.e., trustees and judges, and the Internal Revenue Service ("IRS"). Due to continued litigation, both in the U.S. Supreme Court and in certain federal courts of appeal, some of these areas will be reevaluated in this article. In addition, new areas of conflict resulting in litigation in various levels of the federal court system will be discussed. Policy and statutory modifications will be suggested to alleviate the growing costly burden of litigation.

The Innocent Spouse Relief: A Reconciliation Of Conflicting Judicial Interpretations, Donald C. Haley

Akron Tax Journal

This paper reviews the statutory requirements for obtaining the innocent spouse relief, briefly identifies the degree of consensus among the courts in interpreting key provisions of the statute, and then focuses on the major area of conflict in qualifying for relief: the "lack of knowledge" requirement on the part of the alleged innocent spouse. Particular attention is given to the rigid standard utilized by the Tax Court in its interpretation of this critical requirement versus the broader, more flexible standard employed by the U.S. Courts of Appeal for the Eighth and Ninth Circuits. Finally, an analysis of a workable reconciliation …

The Excludability Of Damages For Personal Injury After The Supreme Court's Decision In Burke, Ray A. Knight, Lee G. Knight, Wayne Nix

Akron Tax Journal

The scope of the personal injury exclusion under Internal Revenue Code § 104(a)(2) has been significantly broadened since the mid-1980's as the result of numerous court decisions in the areas of reputation and discrimination injuries. In our increasingly litigious society, more tax cases contesting the excludability of damages recoveries are expected. In United States v. Burke, decided May 26, 1992, the Supreme Court resolved an important issue regarding excludability from federal taxation of damages received in discrimination cases. Unfortunately, the case was decided on narrow grounds, which may only add to, rather than reduce, the conflict among the lower …

Employment Taxes: What Can The Small Businessman Do?, Kirsten Harrington

Akron Tax Journal

This article focuses on two of the employment taxes, FICA and FUTA. Part I surveys the payroll tax regime and the consequences of running afoul of it. Part II considers the recent history of dividend recharacterizations in the S corporation shareholder-employee context. Part III considers what would be "reasonable (minimum) compensation" for a shareholder-employee in an S corporation. Finally, Part IV takes up current, lively developments in the perennial debate between the Service and small business over independent contractor status.

International Tax Issues Of The U.S. Pharmaceutical Industry, Jonathan L. Mezrich

Akron Tax Journal

This article will attempt to illustrate the recent tax issues in the pharmaceutical industry, now the "scapegoat" of the nation's health care problems, which have international effects; it will also defend the necessity of research credits and other tax incentives for this recently revived industry. Finally, it will attempt to evaluate the concerns raised by Gerald Mossinghoff of the PMA in his testimony before Congress.