Tax Law Commons^™

'Complete' Accrual Taxation, Fred B. Brown

All Faculty Scholarship

Under the realization rule, accrued gains and losses generally are not taken into account for income tax purposes until a disposition occurs. Thus, the realization rule is responsible for tax deferral, which in turn likely leads to economic inefficiencies and inequities. The realization rule also contributes greatly to the complexity of the federal income tax system by necessitating numerous Internal Revenue Code provisions that address the many consequences arising from the decision to postpone taxation until a disposition occurs.

An alternative to the realization rule is accrual taxation - the inclusion in the tax base of annual increases and decreases …

Federal Income Taxation Of U.S. Branches Of Foreign Corporations: Separate Entity Or Separate Rules?, Fred B. Brown

All Faculty Scholarship

Foreign corporations conduct U.S. business activities either through U.S. subsidiaries or U.S. branches. A U.S. subsidiary of a foreign corporation generally is taxed as any other domestic corporation, that is, as a separate taxable entity apart from its foreign parent. In contrast, a U.S. branch of a foreign corporation is not treated as a separate taxable entity; instead, the Code and regulations employ a set of special rules that allocate and apportion to the U.S. branch a portion of the foreign corporation's income in order to determine the net income subject to U.S. tax.

The rules used for taxing U.S. …

Comments: The Public Policy Doctrine And Tax Logic: The Need For Consistency In Denying Deductions Arising From Illegal Activities, Charles A. Borek

University of Baltimore Law Review

No abstract provided.

Tax Symposium: Introduction, Howard A. Dawson Jr.

University of Baltimore Law Review

No abstract provided.

Tax Symposium: Subpart F, 1986 And Beyond, Walter D. Schwidetzky

University of Baltimore Law Review

No abstract provided.

Tax Symposium: An Overview Of The Low Income Housing Tax Credit, Andrew Zack Blatter, Elena Marty-Nelson

University of Baltimore Law Review

No abstract provided.

Tax Symposium: General Utilities' Last Stand, J. Ronald Shiff

University of Baltimore Law Review

No abstract provided.

Tax Symposium: Limitations Imposed By The Tax Reform Act Of 1986 On A Corporation's Use Of Net Operating Loss Carryovers After An Ownership Change, William M. Davidow Jr.

University of Baltimore Law Review

No abstract provided.

Tax Symposium: The At-Risk Rules Under The Tax Reform Act Of 1986: The Door Closes On Tax-Motivated Investments, Olivia S. Byrne

University of Baltimore Law Review

No abstract provided.

Tax Symposium: Passive Activity Losses And Credits, Lester D. Bailey

University of Baltimore Law Review

No abstract provided.

Comments: Taxation: Deduction Of Expenses Incurred By Another In The Performance Of A Service To A Charitable Organization, Jane Rutherford Luckey

University of Baltimore Law Review

No abstract provided.

Tax Symposium: Generation Skipping Transfer Tax, A. Macdonough Plant, Lynn Wintriss

University of Baltimore Law Review

No abstract provided.

Tax Symposium: Capital Losses: Falling Short On Fairness And Simplicity, Fred W. Peel Jr.

University of Baltimore Law Review

No abstract provided.

Shifting Of Income Within The Family: Will 1986 I.R.C. Changes Bring Significant Reform, John A. Lynch Jr.

All Faculty Scholarship

In challenging Congress and the citizenry to embrace tax reform, President Reagan stated:

While most Americans labor under excessively high tax rates that discourage work and cut drastically into savings, many are able to exploit the tangled mass of loopholes that has grown up around our tax code to avoid paying their fair share-sometimes to avoid paying any taxes at all.

Fairness and simplicity were clearly overriding objectives of the tax reform movement that culminated in the Tax Reform Act of 1986.

From the perspectives of both fairness and simplicity, one of the most egregious features of prior law was …

Environmental Benefits Of Tax Reform, Brent Blackwelder

University of Baltimore Law Forum

No abstract provided.

Casenotes: Federal Income Tax — Taxpayers Can Defer The Gain Recognized On The Sale Of Their Primary Residence And Deduct Depreciation And Maintenance Expenses On The Rental Of That Same Property. Bolaris V. Commissioner, 776 F.2d 1428 (9th Cir. 1985), Kendel L. Sibiski

University of Baltimore Law Review

No abstract provided.

Below Market Loans: From Abuse To Misuses – A Sports Illustration, Phillip J. Closius, Douglas K. Chapman

All Faculty Scholarship

Below market loans have been traditionally used as substitutes for gifts, salaries, and dividends for the primary purpose of tax avoidance in the transfer of wealth. The Supreme Court's opinion in Dickman v. Commissioner subjected both demand and term loans in an intrafamilial setting to the federal gift tax. Congress, while subjecting all below market loans to either income or gift tax, applied different valuation formulas to term and demand loans and, in so doing, favored the use of demand loans as a salary substitute. This Article analyzes the current status of below market loans by examining their use in …

Comments: Conflict Between The Internal Revenue Code And The Fifth Amendment Privilege Against Self-Incrimination, Richard B. Stanley

University of Baltimore Law Review

The privilege against self-incrimination contained in the fifth amendment to the United States Constitution is invoked with some frequency in the reporting of income to the Internal Revenue Service. Unfortunately, no definite standard for the applicability of this privilege to income reporting has emerged. In this comment, the author reviews decisional law on the applicability of this privilege to income reporting and analyzes under what circumstances this privilege can be invoked.

Casenotes: Tax Collection — Where One Codepositor In A Joint Bank Account Fails To Pay Federal Income Tax, The Internal Revenue Service May Levy On The Account Without Notice To Innocent Codepositors, Provided The Delinquent Taxpayer Has An Absolute Right Under State Law To Withdraw Funds From The Joint Account. United States V. National Bank Of Commerce, 105 S. Ct. 2919 (1985), Stephen S. Mccloskey

University of Baltimore Law Review

No abstract provided.

Taxation Of The Disposition Of Partnership Issues: Time To Repeal I.R.C. Section 736, John A. Lynch Jr.

All Faculty Scholarship

As part of the Internal Revenue Code of 1954 Congress enacted section 736. This section specifies the tax treatment of the various types of payments that a partnership may make to a withdrawing partner. It introduced the concept of a liquidation of a partnership interest by the partnership itself, as opposed to the sale of that interest to an outsider or to the continuing partners. In some instances it provides tax consequences for continuing and withdrawing partners which are different from those attendant to a sale. It was designed to make the law concerning disposition of partnership interests simpler and …

Commments: Continuing Vitality Of The "Goods Or Services" Test, Wayne Michael Willoughby

University of Baltimore Law Review

The term "trade or business" is used frequently throughout the Internal Revenue Code, and the determination of whether a taxpayer's activities constitute a trade or business has a major impact on the applicable tax treatment. Unfortunately, no definition of trade or business is supplied in the Internal Revenue Code, the legislative history, or the Treasury Regulations. Consequently, the courts have been left this task and two different standards for determining trade or business status have emerged. In this comment, the author reviews the history of the term "trade or business, " examines the decisional law, and analyzes the two current …