Taxation-Federal Commons^™

Federal Tax Rulings: Procedure And Policy, Saul C. Belz

Vanderbilt Law Review

The rulings program of the Internal Revenue Service was designed to meet the need for predictability of the tax consequences of any given financial transaction. Though the rulings program is not particularly important to the average taxpayer, it has become increasingly crucial both to the financial community and to the Service itself. As the tax laws become more complex, and tax risks become increasingly important to the success of business ventures, the need for confirmation before entering into a transaction is intensified. Thus parties to a transaction will generally request a ruling...

"whenever the answer is uncertain or when the …

Is A Partnership Under The Uniform Partnership Act An Aggregate Or An Entity?, A. Ladru Jensen

Vanderbilt Law Review

The conflict in entity versus aggregate views of a partnership is materially lessened in those jurisdictions which have removed the procedural disability of partnerships to be sued in their own names. The advantages secured by having a procedural statute allowing partnerships to be sued in their own names argue strongly for the adoption of such act in all of the states having the Uniform Partnership Act, as is indicated by the foregoing analysis. The recognition of the Internal Revenue laws of partnerships as an aggregate for purposes of income taxation will most surely long continue, even though partnerships may be …

Recent And Prospective Developments In Taxation Of Partnerships, Arthur B. Willis, Stephen A. Bauman

Vanderbilt Law Review

This article will attempt to set forth the provisions of the Revenue Act of 1962 insofar as they affect the taxation of partners and partnerships, the recent developments in this area in brief detail and wide exposure, and the significant aspects of expected future legislation,including an analysis of certain parts of H.R. 9662.

Characterization Of An Income Tax For The Purpose Of The Foreign Tax Credit, Stanley L. Ruby

Vanderbilt Law Review

Perhaps the best reconciliation of the many conflicting policies underlying the foreign tax credit would be to give preferential treatment by tax treaties to investment income from those areas where our foreign policy dictates that investment should be encouraged, whereas taxes imposed on income from other areas should be handled by the deduction approach. Thus the loss of revenue through investment in heavily industrialized areas (with stable governments and relatively little risk-taking) with high tax rates would end, but there would exist the flexibility, through treaties, to encourage investment in underdeveloped areas.

The Western Hemisphere Trade Corporation, Edward C. Blank, Ii

Vanderbilt Law Review

The existing complexity involved in the taxation of corporate income derived from sources without the United States has motivated Congress to undertake an extensive review of our governmental policy pertaining to this area of taxation. The particular provisions of the Internal Revenue Code of 1954 relating to this subject are merely an ad hoc accumulation, noticeably void of any systematic design. The intended purpose of the present congressional inquiry is to determine whether or not incentive taxation is a proper method by which this nation's foreign policies can be implemented. If it be deemed advisable to offer tax benefits to …

Book Reviews, Winthrop R. Munyan, John W. Fager, Walter P. Armstrong Jr., Jerry L. Moore

Vanderbilt Law Review

Taxation of Foreign Income By Boris I. Bittker and Lawrence F. Ebb. Stanford: Stanford University, 1960. Pp. xii, 580.

reviewer: Winthrop R. Munyan

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The Planning and Administration of Estates Edited by Rene A. Wormser. New York: Practising Law Institute, 1961. Pp. 324.

reviewer: John W. Fager

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How to Evaluate and Settle Personal Injury Cases By Allen Bush Indianapolis: The Bobbs-Merrill Company, Inc., 1959. Pp. x,148.

reviewer: Walter P. Armstrong, Jr.

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The Tax Practice Deskbook By Harrop A. Freeman and Norman D. Freeman Boston and Toronto: Little, Brown and Co., 1960. Pp. vii, 581. $17.50.

reviewer: Jerry L. …

Motor Carrier Taxation, Hal H. Hale

Vanderbilt Law Review

Provisions of the Federal Aid Highway Act of 1956 vastly expanded the federal role in highway improvement on a long range basis, especially with respect to the so-called Interstate System. Authorizations of highway aid were further increased substantially by Congress in legislation enacted in 1958. The 1956 act for the first time also provided that the funds to pay for federal aid highway programs should come from specified levies upon highway users and a highway trust fund was established for this purpose. Owing principally to cost increases exceeding the original estimates, it has become apparent since the 1956 act was …

The Coverage Of Unemployment Compensation Laws, Alanson W. Willcox

Vanderbilt Law Review

The federal tax which induced the states to enact unemployment compensation laws set a pattern of coverage which the states were under pressure to meet, but which they were wholly free to exceed. With notable exceptions, state coverage is shaped to conform with federal law. In this matter, indeed, federal leadership is so far accepted that the charge of federal "dictation" has not, as it has in other aspects of unemployment compensation, prevented some expansion of the system by federal initiative.

Coverage of the Federal Unemployment Tax Act starts with the concept of "employment" as the determinant of tax liability, …

Federal Income Taxes And The Civil Fraud Penalty, Raymond Whiteaker

Vanderbilt Law Review

The drive against tax evaders is now in full swing after a complete reorganization of the Internal Revenue Service, and the new Commissioner has promised an efficient enforcement of all revenue laws. Although the effective administration of the federal income tax rests primarily upon the willingness of the taxpayer voluntarily to disclose his correct income, Congress has provided certain civil and criminal penalties to punish those who have not fulfilled their obligations to the United States Treasury. This article will deal only with the administration and operation of the civil fraud penalty.

The most severe civil penalty that may be …

Section 112(B)(6): Benefit Or Burden?, Raymond Whiteaker

Vanderbilt Law Review

The general provision in the Internal Revenue Code pertaining to the liquidation of corporations is section 115 (c). Under this section gain or loss on a liquidation is recognized to the extent that the assets received in liquidation exceed or fail to exceed the basis of the share-holder's stock. An exception to this general rule, however, is provided by section 112(b) (6) whereby a parent may liquidate a subsidiary without recognizing any gain or loss on the liquidation if the statutory requirements are met.

The nonrecognition provision first appeared in the Revenue Act of 1935 as section 110 (a).' This …

Book Reviews, Robert J. Lynn, William J. Bowe (Reviewer), Samuel J. Foosaner (Reviewer), Stanley D. Ross (Reviewer)

Vanderbilt Law Review

Handbook on the Law of Future Interests

By Lewis M. Simes

St.Paul, West Publishing Co., 1951. Pp. xv, 495. $8.00

reviewer: Robert J. Lynn

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Tax Savings in Real Estate Transactions

Prepared by Bureau of Analysis, Davenport, Iowa. Chicago: Published under auspices of National Institute of Real Estate Brokers of the National Association of Real Estate Boards, 1951. Pp. 98. $5.00

reviewer: William J. Bowe

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Income Tax Treatment of Life Insurance proceeds and other Tax Articles

By William J. Bowe

Nashville: Vanderbilt University Press,1951. Pp. 90. $2.10

reviewer: Samuel J. Foosaner

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Justice According to Law

By Roscoe Pound …

Recent Cases, Law Review Staff

Vanderbilt Law Review

RECENT CASES

CONTRACTS--CONSIDERATION--AGREEMENT TO SUPPORT ILLEGITIMATE CHILD

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CONTRIBUTION--JOINT TORTFEASORS--REMEDY GRANTED

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CONTRIBUTION--JOINT TORTFEASORS--REMEDY GRANTED WHEN TORT CONSISTS OF NEGLIGENCE

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CREDITORS' RIGHTS--RECEIVERSHIP OF OPERATING BUSINESS--CHATTEL, MORTGAGEE ENTITLED TO FORECLOSURE RATHER THAN SMALLER MONTHLY PAYMENTS ORDERED BY COURT

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EVIDENCE--DEAD MAN STATUTE--OBSERVATION OF PHYSICAL CONDITIONS NOT A "TRANSACTION" WITHIN MEANING OF STATUTE

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EVIDENCE--JUDICIAL NOTICE--TENETS OF COMMUNIST PARTY

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FEDERAL COURTS--HABEAS CORPUS IN EXTRADITION PROCEEDINGS--NECESSITY OF EXHAUSTING REMEDIES IN STATE COURTS

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IMPLIED WARRANTY--WARRANTY OF SEAWORTHINESS--WARRANTY WITHOUT A SALE

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NEGLIGENCE OF LANDOWNER--PERSON TAKING SHORTCUT THROUGH STORE--LICENSEE OR BUSINESS GUEST?

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RES JUDICATA--INDEMNITOR-INDEMNITEE RELATIONSHIP AS EXCEPTION TO REQUREMENT OF MUTUALITY--CREATION …

Current Constitutional Problems In Federal Taxation, Charles L.B. Lowndes

Vanderbilt Law Review

The most significant constitutional problem in federal taxation today is the absence of constitutional problems. The federal income, estate and gift taxes all encountered an extremely critical reception at the hands of the courts and suffered serious constitutional set-backs early in their careers. Today, however, they function in a constitutional climate as benevolent as it was formerly hostile. A microscopic analysis of the present federal tax system may reveal minor irregularities which might conceivably be magnified into major constitutional issues. From a practical point of view, however, the chance of invalidating a federal tax assessment on constitutional grounds is infinitesimal. …

Options And Valuation Of Property For Federal Tax Purposes, William J. Bowe

Vanderbilt Law Review

In Estate of John Q. Strange, there was an agreement between two brothers, engaged in business in a close corporation, which provided that upon the death of either, the survivor might acquire the stock of the other upon payment of $10,000 to his estate. Payment was so made following the decedent's death. The fair market value of the stock on the date of death was stipulated to be $238,126.54. The Board of Tax Appeals held that the option price of $10,000 was the proper amount to be included in the decedent's gross estate as the value of his stock.

In …

Book Reviews, Philip A. Hendrick, Charles L.B. Lowndes (Reviewer), Adrian W. Dewind (Reviewer), Chas. A. Morehead (Reviewer), John R. Stivers (Reviewer)

Vanderbilt Law Review

An Estate Planner's Handbook By Mayo Adams Shattuck

Boston: Little, Brown & Company, 1948. Pp. 575. $7.50

reviewer: Philip A. Hendrick

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Estate Planning and Estate Tax Saving By Edward N. Polisher

Philadelphia: George T. Bisel Company. Second Edition, 1948. 2 Volumes. Pp. xxxii, 923. $20.00

reviewer: Charles L.B. Lowndes

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Federal Taxes--Corporations and Partnerships, 1948-49 By Robert H. Montgomery, Conrad B. Taylor and Mark E. Richardson

Vol. I: Gross Income and Deductions Vol. II: Taxes, Returns and Administration New York: The Ronald Press Company, 1948. Pp. xiii, 1001; pp. iv, 881. $20.00

Federal Taxes--Estates, Trusts and Gifts, 1948-49

By …

Family Partnership V. Corporation -- Income Tax Aspects, Bruce Mcclain

Vanderbilt Law Review

At the outset, it must be emphasized that a decision as to the more desirable mode of doing business should never be based solely upon tax considerations. In every instance, the following legal and practical advantages of transacting business as a corporation must always be borne in mind: (1) Limited Liability. The liability of a stockholder for the debts of the corporation is limited to his investment in its stock, while all of the property bf a general partner is subject to the claims of the firm's creditors, if its assets are insufficient to satisfy such claims in full. (2) …