Tax Law Commons^™

The Master Limited Liability Partnerships Parity Act: Friend Or Foe?, Sonia J. Toson

Pace Environmental Law Review

In April of 2013, Democratic Senator Chris Coons of Delaware introduced legislation that seeks to level the playing field between renewable and non-renewable energy companies. Titled the “Master Limited Partnerships Parity Act” (MLPPA), the legislation would amend the federal tax code to allow renewable energy companies to form master limited partnerships and thereby gain valuable financing and tax advantages. This legislation would clear the way for the formation of master limited partnerships investing in renewable energy, which would have significant impact on clean energy production in the United States. This article discusses the Master Limited Partnerships Parity Act and explores …

Tax Incidents Of Private Annuities, Richard L. Grant

Akron Law Review

One can best describe a private annuity by stating what it is not: It is not purchased from a commercial underwriter, but from a person, who, in the ordinary course of his business, does not write annuity contracts. It does not contain a secured promise to perform. In all other respects, the private annuity resembles commercial annuities in that the annuitant transfers cash or other property in exchange for a promise of the transferee (obligor) to make periodic payments of money either for a term of years or for the life of the annuitant. One writer' would fragment such a …

Equal Protection - Property Taxes As A Method Of Funding Public Education; San Antonio Independent School District V. Rodriguez, Mark K. Croft

Akron Law Review

Suit was brought in U.S. District Court for the Western District of Texas challenging the constitutionality of the Texas school financing system on the theory that it discriminated on a basis of wealth, permitting provision of a higher quality of education to be offered the children in property-rich school districts while residents pay a lower tax rate, thus denying equal protection of the law.' The District Court found the laws forming this system unconstitutional on this basis. Appeal brought the case to the Supreme Court in October of 1972, where it was reversed.

Income Tax Considerations In The Transition To A Professional Corporation, Harvey Dunn

Akron Law Review

[T]he tax considerations in the formation and operation of a professional corporation are numerous and, unfortunately, there are many areas which lack definite guidelines so as to enable the practitioner to give as definite an answer as he would like to. However, as with any new area of tax law, it will take time, decisions and rulings to develop what one may term as reasonable guidelines for reaching a conclusion. In the meantime, there is little doubt that with careful planning in the formative stages and close observation of the operation of a professional corporation, the risk of problems with …

Employee Medical Reimbursement Plans In The Age Of Erisa, Robert D. Rosewater

Akron Law Review

THE EMPLOYEE MEDICAL reimbursement plan presents a new dimension in the spectrum of available corporate fringe benefits. Its attractiveness lies in the relative ease by which the plan may be adopted and administered as well as the favorable federal income tax consequences to both the corporation and its participating employees. These plans undoubtedly will proliferate as other traditional fringe benefits become less attractive due to changes in tax laws,2 as medical expenses continue to increase, and as the advantages of employee medical reimbursement plans become more widely known. The scope of this article is to discuss the purposes of these …

Federal Income Tax Developments: 1975

Akron Law Review

FEDERAL INCOME TAX DEVELOPMENTS: 1975 is the third of an annual series of articles to be published in the Winter Issue of the Akron LAW REVIEW. The thrust of this article is not only to identify the new developments, but also to trace these concepts through their formative stages. The area of concentration for this article includes cases decided through September 30, 1975. Given the volatile nature of taxation, it is crucial for the practitioner in this field to remain current with the changes which have occurred during the tax year. The purpose of this article is to highlight for …

Trading With Related Foreign Entitites: Current American Tax Perspective, Mortimer Caplin

Akron Law Review

This article attempts to summarize existing United States tax law and government policy on arm's-length dealing, with the hope that it will illuminate the current perspective in this important and complex area

The Business Purpose Doctrine In Corporate Divisions, Stephen Rigsby

Akron Law Review

The corporate division, however, lends itself to schemes for avoidance of tax. These schemes are attempts to convert ordinary income into income taxable at capital gains rates. An elaborate statutory mechanism has been created to prevent this conversion. In addition, the courts have created judicial doctrines which sometimes work by adding to the statutory framework and sometimes overlap. The resulting confusion of statute and judicial doctrine is the subject of this article. The investigation will focus on that part of the statute known as the device clause and its interaction with the judicial doctrines which together are known as the …

Federal Income Tax Developments: 1977

Akron Law Review

The thrust of this article is not only to identify the new developments, but also to trace these concepts through their formulative changes. This article covers the new developments in the case law including those cases and rulings implementing the Tax Reform Act of 1976.

Federal Income Tax Developments: 1978

Akron Law Review

FEDERAL INCOME TAX DEVELOPMENTS: 1978 is the sixth of an annual series of articles to be published in the AKRON LAW REVIEW. The scope of this survey is limited to the substantive developments in the field of income taxation. The thrust of this article is not only to identify new developments, but also to trace these concepts through their formulative changes.

Sales Taxation Of Mixed Transactions In Ohio: A Proposal To End The Turmoil, Gregory L. Petersen

Akron Law Review

This note will examine Ohio's statutory framework for the exemption of personal service transactions from sales taxation in light of judicial developments and the Tax Commissioner's interpretations. The analysis begins with whether a mixed transaction, one involving personal service and tangible personal property, is subject in its entirety to sales taxation only because a small amount of personal property was included. Then the advantages and disadvantages of separating personal service and personal property expenses will be examined. There the taxpayer would charge the client sales tax for the personal property portion of the transaction, but not for the personal service …

Nontaxpayer Suits: Seeking Injunctive And Declaratory Relief Against Irs Administrative Action, John A. Lynch

Akron Law Review

Who should be entitled to challenge Internal Revenue Service (IRS) tax policy decision making? Should the concerned citizen or the aggrieved competitor of a company receiving favorable treatment from the IRS be precluded from seeking review of allegedly illegal action when his own taxes are not specifically involved? ...

It is clear from an analysis of recent decisions that several federal courts have been unwilling to accept the proposition that the Anti-Injunction Act and the Declaratory Judgment Act exception insulate the IRS from judicial scrutiny even when judicial intervention would pose no threat to federal revenues. An analysis of the …

Unreasonable Compensation In The Professional Corporation, Vincent J. Falcone

Akron Law Review

This comment will discuss the federal income tax issue of unreasonable compensation as it affects the incorporated professional. Discussion will first center on the modus operandi of the professional corporation, and how the compensation issue arises. Unreasonable compensation will then be defined and explained in that context. Next, the actual considerations used in determining whether compensation is excessive or not will be discussed. Then, the additional requirement that the remuneration be compensation in fact, and not a return on investment, will be investigated. The applicability of the 50% maximum tax on personal service income will also be analyzed. Finally, some …

Federal Income Tax Developments: 1979

Akron Law Review

The scope of this survey is limited to the substantive developments in the field of income taxation. The thrust of this article is not only to identify new developments, but also to trace these concepts through their formulative changes

Federal Income Tax Developments: 1980

Akron Law Review

The scope of this survey is limited to the substantive developments in the field of income taxation. The thrust of this article is not only to identify new developments, but also to trace these concepts through their formulative changes.

An Examination Of The Current Ohio Condominium Law, Patricia Mcquillen Billow

Akron Law Review

Ohio sanctioned condominiums in 1963 by enacting the Condominium Property Act. The act addresses five issues: (1) the creation of the condominium form of ownership; (2) the respective interests each unit owner possesses in the common area; (3) the administration of the condominium; (4) the rights of the lienors; and, (5) the removal of the property from the Act's provisions. The Act was amended in 1978 to facilitate consumer protection. This comment will examine the 1978 amendment and evaluate its effectiveness. It will then examine the tax considerations involved in the purchase of a condominium unit.

Application Of Computer-Assisted Analysis Techniques To Taxation, Richard J. Kovach

Akron Law Review

Thus, it may be useful at this early point in the development of computer-assisted legal analysis to speculate on the full potential for computer applications to taxation in light of the analytic complexities commonly encountered in tax work.

Search: A Computer Program For Legal Problem Solving, Robert Hellawell

Akron Law Review

This article describes a computer program called SEARCH which is designed to assist a lawyer in legal analysis. SEARCH deals with a single subject in corporate taxation, but its approach can be used for a variety of legal problems. SEARCH's subject is the attribution rules of section 318 of the Internal Revenue Code (hereinafter Code). These rules, heartily disliked by many, are seemingly complex and often both difficult and time consuming to apply. Essentially, the attribution rules provide that a taxpayer, in certain cases, will be considered to own corporate shares that he does not actually own. Such shares are …

I.R.C. §(A)(3)(D): Reorganizing An Insolvent Savings And Loan Association, Brenda D. Crocker, Michael L. Unti

Akron Law Review

Whether or not the new reorganization provision, section 368(a)(3) (D), succeeds in inducing the acquisition of insolvent savings and loan associations, it is likely to be viewed as a creative attempt at a solution. To best illustrate the novelty of Congress's approach, the ensuing sections begin with an explanation of federal tax law as it has evolved in the context of insolvency reorganizations.

The Use Of Short-Term Trusts In Conjunction With Interests In Oil Or Gas Properties: A Practitioner's Guide, Robert W. Malone

Akron Law Review

This article will address the tax consequences of the funding of a short-term trust with an interest in oil or gas wells. At the end of this article there is set forth as Appendix 11 a form of short-term trust which could be used for this purpose. Appendix 11 contains an example of a situation where such use would be appropriate and a computation of the tax savings which can be generated by the use of such a trust.

Federal Income Tax Developments: 1981

Akron Law Review

The scope of this survey is limited to the substantive developments in the field of income taxation. The thrust of this article is not only to identify new developments, but also to trace these concepts through their formulative changes.

Individual, Couple Or Family? The Unit Of Taxation For Transfer Tax Purposes: A Shifting Focus, Anne-Marie Rhodes

Akron Law Review

This paper examines the shifting focus of the transfer tax system from the perspectives of the articulated primary purpose for the taxes and the appropriate unit of taxation given that purpose. The historical progression shows that as a sense of purpose became less clear, the unit of taxation similarly became less focused.

Denial Of Tax Exempt Status For Racially Discriminatory Schools, Bob Jones University V. U.S., Margaret K. Cassidy

Akron Law Review

The extent to which the government may deny tax-exempt status in order to further its goal of eliminating racial discrimination is a question of paramount importance. The United States Supreme Court recently addressed this question in the case of Bob Jones University v. U.S., a consolidated action which involved a conflict between two established public policies: racial equality and religious freedom. The Court held that this nation's policy of racial equality overrides any interest that an educational and religious institution may have in promoting racial discrimination.

Partnership Sales: When Nonrecourse Debt Exceeds Fair Market Value, Commissioner V. Tufts, Joseph Perkovich

Akron Law Review

The United States Supreme Court has used its decision in Commissioner v. Tufts to settle a conflict between circuits and to fine tune an ambiguity which it created thirty-six years ago in Crane v. Commissioner. The circumstances focus on a taxpayer who sells his partnership interest by having the purchaser assume nonrecourse debt to which the partnership property is subject.

Internal Revenue Service Review Of Tax Accrual Workpapers United States V. Arthur Young & Co., Steven Dimengo

Akron Law Review

The broad summoning power of the Internal Revenue Service [IRS] which enables it to examine any documents related to a taxpayer's liability' was challenged in United States v. Arthur Young & Co. The major issue of the proceedings was whether tax accrual workpapers, prepared by a taxpayer's independent auditor during the course of an annual audit, were subject to disclosure to the IRS pursuant to a summons under section 7602 of the Internal Revenue Code of 1954. In reaching its holding, the Supreme Court had to determine whether tax accrual workpapers were relevant to an IRS inquiry within the meaning …

Dickman And Code Section 7872: The Death Knell To Interest-Free And Below-Market Loans, Beverly Mcdonel

Akron Law Review

This comment will discuss the history of interest-free and below-market rate loans, including recent changes in the law from Dickman and the Internal Revenue Code (Code) revision in 1984. In addition, some of the tax planning alternatives to interest-free loans will be briefly examined.

A Line Drawn By Unsteady Hands: Section 170, Charitable Contributions, And Return Benefits In Hernandez V. C.I.R., David M. Phipps

Akron Law Review

This Note analyzes the majority decision and dissenting opinion in Hernandez, which have far-reaching implications for charitable organizations, taxpayers, and the government. Traditional tax deductions for charitable organizations may be in danger and these organizations may suffer economic difficulty?

Taking It With Them The Dynamics Of Changing A State Income Tax Residence, Hamlin C. King

Akron Law Review

Since nonresidence is taking on "hot issue" status in Ohio, it is the purpose of this article to closely focus on two issues regarding the taxation of such nonresident income. The first issue is what constitutes a state income tax residence change. The second is to identify the income items originating from Ohio sources that may pass out to nonresidents free of the Ohio income tax. As we go along, we will take notice of how these two issues impact the taxpayers' federal income tax, as well as their Ohio and federal estate taxes.

Nonpayment Of Taxes: When Ignorance Of The Law Is An Excuse, Jon Strauss

Akron Law Review

"Ignorance of the law is no excuse" is a well-known saying regarding criminal law. Yet the 1991 Supreme Court decision of Cheek v. United States held that a defendant's ignorance of the federal tax laws is an excuse to the crime of nonpayment of income taxes. This paper reviews the history of the defense of ignorance of the law in tax crimes, discusses the philosophical ramifications of this defense, and examines the extent to which the Supreme Court's allowance of this defense is appropriate.

Gray Market Goods Produced By Foreign Affiliates Of The U.S. Trademark Owner: Should The Lanham Act Provide A Remedy?, Steven M. Auvil

Akron Law Review

I shall argue that, with limited exceptions, the problem posed by genuine gray market imports from an affiliated source is not a trademark problem per se, and as such federal relief must come from Congress in the form of sui generis legislation. First, I shall briefly examine the historical background of this problem and discuss the debate leading up to the K Mart decision. Second, I shall discuss the nature of the trademark right, provisions under the Lanham Act that safeguard that right and several illustrative gray market cases decided thereunder. Third, I shall discuss the relationship between the trademark …