Tax Law Commons^™

A Policy Analysis Of Fee-Shifting Rules Under The Internal Revenue Code, Gary Myers, Richard L. Schmalbeck

Faculty Publications

Until recently, the costs of litigating federal tax cases were borne exclusively by the parties who incurred them, regardless of whether the government or the taxpayer prevailed in the litigation. This practice reflects the application to tax disputes of the ‘American rule’ against fee shifting. Although the American rule continues to be predominant in the tax area, it has been modified in important respects. An explicit fee-reimbursement rule, benefiting prevailing taxpayers in cases in which the government is found to have acted unreasonably, was added to the Internal Revenue Code (IRC) by the Tax Equity and Fiscal Responsibility Act of …

Interest Rate Swaps: Status Under Federal Tax And Securities Laws, Christopher Dean Olander, Cynthia L. Spell

Maryland 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 …

Industrial Development Bond Financing After The Deficit Reduction Act Of 1984: The Final Chapter?, Scott W. Bernstein

Fordham Urban Law Journal

Approximately sixteen years after Congress purportedly divested industrial development bonds (IDB) of the general tax exemption accorded interest on state and local obligations, President Reagan signed into law the Deficit Reduction Act of 1984 (1984 Act) which contains a substantial number of provisions affecting IDB financing. Title VII of the 1984 Act places a ceiling on the total dollar amount of IDBs that each state can issue per calendar year, further restricts the use of tax-exempt IDB proceeds, and eliminates various loopholes in the Internal Revenue Code pertaining to IDBs. Coincidentally, on November 27, 1984, the Treasury Department, in its …

States' Use Of The Unitary Method: A Taxing Burden On International Commerce, Bryan C. Skarlatos

Penn State International Law Review (1982 - 2011)

This comment will discuss the constitutionality of state use of the unitary method to tax multinational corporations. After considering the problems involved in allocating income between the jurisdictions in which a multinational corporation operates, the comment will examine the two predominant methods of allocation designed to solve these problems. The discussion will then analyze and criticize the Court's decision in Container Corp. v. Franchise Tax Board.

Is The Connection Effective? Through The Maze Of Section 864, Alan B. Stevenson

Northwestern Journal of International Law & Business

This article discusses certain of the rules under which foreign corporations and nonresident alien individuals may be subjected to United States federal income tax. It may at first be surprising that there are any situations in which the United States would attempt to tax the income of a nonresident alien or a foreign corporation. A moment's reflection, however, will reveal that in some situations it is quite logical that the United States should tax at least a portion of the income of such persons. For example, it seems reasonable that a corporation which conducts some minimum level of business in …

Reflections On Commonwealth Edison Co. V. Montana, Mike Mcgrath, Walter Hellerstein

Scholarly Works

On the final day of its 1980-81 term, the United States Supreme Court handed down its long-awaited decision in Commonwealth Edison Co. v. Montana, which sustained Montana's coal severance tax over commerce and supremacy clause objections. In a six-to-three decision, the Court upheld the right of the states to set their own tax rates without fear of judicial interference. The Court's conclusion was rooted in its recognition that the determination of the rate or amount of a state tax is fundamentally a political question, which "must be resolved through the political process . . . by state legislatures in …

United States Taxation Of Foreign Direct Investment, Alan G. Cohate

Penn State International Law Review (1982 - 2011)

This article, while broad in scope, is narrow in focus. It aims solely at those aspects of the United States' internal tax laws which should be considered by the foreign investor in planning for his investment. These tax considerations may affect the structure of operation of the business enterprise in the United States. The article is not intended as a short course in United States taxation, and the reader should be aware that the complexities of the United States Internal Revenue Code and the regulations issued thereunder are so great that no particular fact situation can be correctly analyzed except …

Special U.S. Rules Directly Affecting Foreign Investment, C. Tanner Rose Jr.

Penn State International Law Review (1982 - 2011)

The purpose of this article is to provide a list of special U.S. rules which guide domestic attorneys in counseling foreign investors on tax and finance consequences of their transactions in the United States. A firm grasp of these rules, as a starting point, enables an attorney to formulate proper suggestions to foreign clients in acquiring property and conducting business without being subject to excessive tax consequences.

The Foreign Investment In Real Property Act Of 1980, Lisa B. Petkun

Penn State International Law Review (1982 - 2011)

For a number of years, foreign investors were able to invest in real property located in the United States and to avoid, to a great extent, the payment of United States income tax on the operating income from the property and on the gain realized upon the disposition of the property. However, with the enactment of the Foreign Investment in Real Property Tax Act of 1980 ("FIRPTA") the ability of foreigners to avoid the United States tax gains realized upon the sale of real property located in the United States has been greatly circumscribed. To accomplish this result, FIRPTA added …

Dubious Interpretative Rules For Construing Federal Taxing Statutes, Richard A. Westin

Law Faculty Scholarly Articles

Knowing even a substantial portion of the Internal Revenue Code of 1954 is a major achievement. Divining how the courts might react to a complex tax transaction is also terribly difficult, but for this ability lawyers are often well-rewarded on earth. The tools of this esoteric trade include a mass of interpretative rules of a most uncertain nature, as sophisticated tax advisors are well aware. This article discusses the application and limits of a litany of the interpretative rules. The rules are frequently applicable outside the tax field, but the following study is confined to their application to tax decisions. …

Divorce, An Overlooked Tax Planning Tool (Or Gimmick), Theodore W. Hirsh

Maryland Law Review

No abstract provided.

The Midstream Incorporation Of A Cash-Basis Taxpayer: An Update, Robert I. Keller

Maryland Law Review

No abstract provided.

The Artist's Tax Dilemma, Wendy J. Gordon

Scholarship Chronologically

An artist's first job is to create. Somewhere down the line, most artists find they have a second job, which is to sell. Many artists resist involvement in the second task (with mixed results), yet beyond it the artist encounters a duty even more dreaded: to pay taxes.

The Tax Parameters Of Inventory Valuation, William F. Rigsby

Kentucky Law Journal

No abstract provided.

Spooner V. Askew, 345 So. 2d 1055 (Fla. 1976), Charles A. Johnson

Florida State University Law Review

Ad Valorem Taxation- RATIFICATION OF FLORIDA'S AD VALOREM TAX STRUCTURE: REJECTION OF AN EQUAL PROTECTION CHALLENGE.

Income Shifting Through A Subchapter S Corporation

Maryland Law Review

No abstract provided.

Taxation Of Distributions From Accumulation Trusts: The Impact Of The Tax Reform Act Of 1976, David T. Link, Michael J. Wahoske

Journal Articles

The complex rules governing the taxation of income from trusts and estates have at times been described as incomprehensible. Perhaps the most confusing of these are the accumulation distribution throwback rules. In an effort to alleviate some of this confusion, Congress included accumulation trusts within the purview of the Tax Reform Act of 1976. Though Congress claimed that the rules are now "considerably simplified," it is not without some effort that one is able to translate the statutory language into a form useful to the practitioner.

Given the complexity of the rules, it is necessary to begin with a caveat. …

The Small Tax Case Procedure: How It Works--Does It Work?, Christopher J. Badum

Fordham Urban Law Journal

In 1968 the section of Taxation of the American Bar Association proposed an amendment to the Internal Revenue Code of 1954 to provide for a small claims division in the United States Tax Court. Such a division was thought to be a necessary alternative to the often expensive and time consuming tax litigation procedure in the Tax Court, the Court of Claims, and the district court. Congress adopted the proposal and it was incorporated into the Tax Reform Act of 1969. This Note will discuss the proceedings of bringing suit in the Small Tax Case Division and will propose ways …

The Behavior Of Justice Douglas In Federal Tax Cases, Marjorie A. Silver, Bernard Wolfman, Jonathan L. F. Silver

Scholarly Works

No abstract provided.

Section 6332(B) Of The Internal Revenue Code: Summary Levy Procedure On Life Insurance Policies - United States V. Prudential Insurance Co. Of America

Maryland Law Review

No abstract provided.

The Statutory Trust Fund Under Irc § 7501 (A) Versus Administrative Expenses In Bankruptcy - In Re Halo Metal Products, Inc.

Maryland Law Review

No abstract provided.

Real Estate And Tax Reform: An Analysis And Evaluation Of The Real Estate Provisions Of The Tax Reform Act Of 1969, C. Willis Ritter, Emil M. Sunley Jr.

Maryland Law Review

No abstract provided.

The Tax Benefit, Recoveries, And Sales Of Property Under Section 337, Don L. Ricketts

William & Mary Law Review

No abstract provided.

Deductions For Legal Education - Welsh V. United States And Condit V. Commissioner, Barrett W. Freedlander

Maryland Law Review

No abstract provided.

Taxation-Accounting Methods--Forfeiture Of Privilege Of Electing Installment Basis, Daniel R. Elliott Jr.

Michigan Law Review

During 1953, petitioner sold her farm and agreed to receive payment in yearly installments. Her 1953 income tax return, in which she elected to report the sale on the installment basis, was not filed until 1957. Respondent, the Commissioner of Internal Revenue, assessed a deficiency and included the entire gain from the transaction in petitioner's 1953 return. On the basis of previous Tax Court decisions, he contended that petitioner was not entitled to use the installment method because of her failure to file a timely return. Petitioner argued that neither the statute nor the regulations required a timely return as …

The Mysterious Stock Option, Erwin N. Griswold

Kentucky Law Journal

No abstract provided.

Tax And Other Legal Aspects Of The Corporate Practice Of Medicine, Jerry B. Martin

Vanderbilt Law Review

With the coming of regulations allowing doctors the tax advantages of corporate employees, the doctors will probably be more solidly behind the positions of the AMA in favor of the prohibition against the corporate practice of medicine. For example, at least one state group, the Tennessee State Medical Association, has recently adopted a resolution against practicing medicine in the corporate form, and there have been no recent reports of state associations taking the opposite position. The American Hospital Association which seems to lead the opposition to the corporate practice rule does not attack the rule as being intrinsically bad but …

A Critical Analysis Of The Tax Treatment Of Prepaid Income, Murray H. Rothaus

Maryland Law Review

No abstract provided.

Wolff-Bloch V. Jerusalem District Assessing Officer, Alfred Witkon, Yoel Sussman, Shneor Zalman Cheshin

Translated Opinions

The appellant, a dentist who had travelled to the U.S.A., and had spent 10 weeks there studying the latest developments in her profession, claimed the expenses so incurred by her as a deduction for purposes of income tax on the ground that they were incurred "in the production of income." The Assessing Officer refused to allow the deduction and this decision was upheld by the District Court.

Held, allowing an appeal (Cheshin D.P. dissenting), that the expenditure incurred by the appellant was incurred for the purpose of preserving "an existing asset" and could properly be deducted.