Tax Law Commons^™

Taxation Of Boot Received During Acquisitive Reorganization: Dividend V. Capital Gain, Stephen Lee Dalton

University of Richmond Law Review

Acquisitive reorganizations either by consolidation or statutory merger have become a popular means for corporations with surplus cash or treasury stock to diversify their investment base. The tax treatment of cash received during such reorganizations is an often litigated and still unsettled area of the law. Such confusion is the product of inconsistent and irreconcilable case holdings and Revenue Rulings as the courts and the Internal Revenue Service have attempted to apply the myriad of judicial doctrines and intricate Code law dealing with this question to various factual situations.

Virginia Wealth Transfer Tax- Proposed Alternatives, Michael D. Flemming

University of Richmond Law Review

House Resolution 34, which was approved by the House of Delegates during the 1977 session of the Virginia General Assembly, observed that Virginia's inheritance and gift tax laws have remained essentially unchanged for more than 50 years and commissioned a study of those laws "in light of recent developments."' The proponents of House Resolution 34 no doubt had the 1976 amendments to the federal estate and gift tax laws fresh on their minds. But in addition to the federal changes, several of the states have altered their approach to transfer taxation in recent years. These changes expand the options available …

A Larson-Zuckman Checklist For Partnership Tax Classification Of Ulpa Real Estate Shelters, J. Durwood Felton Iii

University of Richmond Law Review

Real estate developments necessarily require large amounts of capital, and are usually dependent on financing from sources other than the venture group assembled to construct and operate a proposed project. Theoretically, such ventures may be undertaken in many forms, corporate and otherwise, and the available financing vehicles may include debt instruments, equity shares and innumerable combinations thereof. In reality, however, business and legal considerations often dictate organization and operation of such ventures within more narrowly defined limits.

The Taxation Of Distributions From Qualified Employee Benefit Plans, Louis A. Mezzullo

University of Richmond Law Review

One of the most confusing aspects of employee benefit plans is the federal tax treatment of distributions to the participants of these plans and to the beneficiaries of deceased participants. The issues frequently involve not only income taxation, but estate and gift taxation as well. While the average practitioner may never be called upon to draft a pension or profit-sharing plan, he may be asked by his client about the consequences of the various alternative methods

of receiving a benefit from such a plan. Many employee benefit plans, particularly profit-sharing plans, offer a participant upon his retirement from the plan …

Property Taxation In Virginia, Gordon M. Cooley, Burton F. Dodd, Norman T. Fowlkes, Julia Krebs-Markrich, Ronald E. Kuykendall

University of Richmond Law Review

The Virginia Constitution mandates that all property within the state, except exempt property, must be taxed. In light of the constitution's directive, this note examines the present Virginia property taxation structure in order to provide the practitioner with a guide to its application and operation.

Section 1244 Small Business Stock - Professional Responsibility Demands Its Use

University of Richmond Law Review

In 1958, Congress added section 1244 to the Internal Revenue Code, which allows ordinary loss treatment for original owners of specified stock in "small business corporations" when such stock is sold, exchanged at a loss, or when the stock becomes worthless. The purpose of section 1244 is to reduce the discrepancy between the tax treatment of losses sustained by corporations and those sustained by proprietorships or partnerships, thereby diminishing the role which tax considerations play in determining whether a business should be conducted in corporate or in unincorporated form. When an unincorporated business sustains an operating loss, such loss is …

The "Elaborate Interweaving Of Jurisdiction:" Labor And Tax Administration And Enforcement Of Erisa And Beyond, John W. Lee

University of Richmond Law Review

On Labor Day 1974, President Ford signed into law~the Employee Retirement Income Security Act of 1974, commonly known by its acronym ERISA. The genesis of ERISA is found in a study released in 1965 by the President's Committee on Corporate Pension Fund and Other Private Retirement and Welfare Programs, titled "Public Policy and Private Pension Programs-A Report to the President on Private Employee Retirement Plans." The Committee had been established in 1962 by President Kennedy in recognition of the growth of the pension industry and the need for reform. The report made recommendations as to vesting; funding; termination insurance and …

The Tax Consequences Of Inter Vivos Charitable Contributions After December 31, 1969 Under Section 170, Olin R. Melchionna Jr.

University of Richmond Law Review

To give and live to give again has always been the American way. Traditionally, Americans contribute to those charitable institutions and associations which effectuate their benevolent, philanthropic desires. Many individuals believe the funding of charitable institutions should be primarily by direct contributions from the private sector as opposed to federal and state government subsidies. This view is supported by the federal income, I gift and estate tax deductions.

Special Purpose Taxation Districts: Coming Or Going?, John E. Juergensmeyer

University of Richmond Law Review

Special purpose taxing districts, as an instrument of local government, have been widely criticized and commonly blamed for many of the problems of "urban sprawl." However, despite repeated and extensive criticism, and continual attempts to limit and restrict them, special purpose districts have expanded in number and function.

Tax Reform And The Voluntary Support Of Higher Education, Sheldon Elliot Steinbach

University of Richmond Law Review

Since colonial times voluntary support has been a major factor in the financing of American higher education. It is estimated by the Council for Financial Aid to Education that the total voluntary support of institutions of higher education in 1971-72 was slightly over $2 billion. This represents an increase of $160 million or 8.6% over the $1.8 billion received in 1970-71.2 Private philanthropy is not limited to private colleges but is increasingly being extended to state-controlled institutions so that in 1971-72 such state-controlled institutions received over 21% of the total voluntary support to higher education. The financial plight of colleges …

Ancient Simplicity Is Gone- Procedural Aspects Of Relief From Taxes Administered By The Virginia Department Of Taxation, Lee F. Davis Jr.

University of Richmond Law Review

The Virginia Supreme Court has referred to "the convenience, elasticity and fairness" of the Virginia procedure for the correction of erroneous assessments of taxes. Few would add "clarity" to this description, yet the statutory remedies, however complicated, are usually the only source of relief for the taxpayer.

Federal Estate Taxation - Inter Vivos Gift Between Co-Owners Of United States Savings Bonds Requires Surrender And Reissue

University of Richmond Law Review

At the present time there are approximately 500 million Series E United States Savings Bonds outstanding about 75% of which are registered in the names of co-owners. Until recently there had been no consensus in the federal courts as to whether a registered co-owner of such a bond could remove it from his gross estate by making an inter vivos gift to the other co-owner without having the bond reissued according to Treasury Regulation procedures. This conflict in case law and its attendant confusion has had the effect of preventing uniform application of federal estate tax law concerning savings bonds. …

Charitable Remainder Trusts: Some Considerations To Draftsmanship, Harold G. Wren

University of Richmond Law Review

The Tax Reform Act of 1969 limited the charitable deduction for remainder interests for the purposes of income, estate and gift taxes to three specific forms: the annuity trust, the unitrust, or a gift to a pooled-income fund. This article will not deal with the details of a pooled-income fund, commonly established by a public charity to make it possible for a donor of a relatively small gift to do what we shall discover the wealthy donor can do by way of a charitable remainder trust. Since estate planners are primarily concerned with the drafting of trusts for donors of …

Command Performance: The Tax Treatment Of Employer Mandated Expenses, John W. Lee

University of Richmond Law Review

Employers frequently not only expect but require performance of duties by employees beyond a nine to five tour at the office or plant. Such obligations may include the employee's living or eating on the employer's business premises, relocating himself and his family as a condition precedent to promotion or continued employment, obtaining additional education, entertaining his employer's customers, and traveling, including trips (frequently accompanied by his spouse pursuant to employer command, express or implied) to meetings and conventions, either sponsored by the employer or otherwise.

Recent Legislation, J. Rodney Johnson

University of Richmond Law Review

The 1972 session of the General Assembly was especially active in the areas of wills, trusts, and estates. Much of this legislation deals with fine points not affecting the average lawyer in his practice. However, the following items of legislation should be of general interest to the attorney whose practice involves probate work or estate planning, even though he does not hold himself out as a specialist in these areas.

Deferred Compensation Under The Tax Reform Act Of 1969, David R. Goode

University of Richmond Law Review

Executive compensation covers a broad range of benefits, including current cash payments, stock bonuses and options in their various forms, qualified pension plans, life insurance and even such fringe benefits as use of company provided automobiles and aircraft. A significant portion of the compensation picture encompasses contracts and plans which defer the receipt of income until a taxable period later than the period to which the services giving rise to the compensation are related. Although only one of many compensation devices, deferred compensation is of considerable importance to American industry as a form of executive pay. A recent study of …

Recent Decisions

University of Richmond Law Review

This is a summary of the case law from 1968.

Recent Cases

University of Richmond Law Review

This article provides a list of the recent cases and their summaries for the year of 1963.

Notable Legislation Of 1962, Harry L. Snead Jr.

University of Richmond Law Review

Unless otherwise indicated, the statutes and amendments noted below will be effective on June 29, 1962. All code refer- ences are to the 1950 Code of Virginia.

Lawyers And The Professional Association Act, Ellsworth Wiltshire

University of Richmond Law Review

The Professional Association Act passed by the recent Gen- eral Assembly of Virginia becomes effective as Chapter 277 of the Acts of 1962 on June 29, 1962. It permits three or more individuals authorized to practice in Virginia any one of the following named professions to form an association, which will be a legal entity separate from the associates comprising it: "architecture, professional engineering, land surveying, certified public accounting, dentistry, optometry, practice of the healing arts, and veterinary medicine, surgery and law".

The Issuance Of Stock Under Section 1244 Of The Internal Revenue Code, Carle E. Davis

University of Richmond Law Review

The purpose of this brief note is to examine the provisions of section 1244 with a view toward qualifying for the tax benefits of that section.

State Taxation Of The Net Income From Interstate Business, Harry L. Snead Jr.

University of Richmond Law Review

On February 24, 1959, the Supreme Court of the United States, in companion cases, held, by a 6-3 vote, that a state could levy a properly apportioned tax on the net income of a corporation doing a purely interstate business, provided there were sufficient "activities" within the state to justify a tax. NorthwesternStates PortlandCement Co. v. Minnesota, and Commissioner v. Stockham Valves and Fittings, Inc. Were this article a movie script, I would begin by portraying the separate meetings of two groups: the hastily summoned executive committee of the National Association of Manufacturers gravely, but vigorously, exploring means of avoiding …