Taxation-Federal Commons^™

Federal Taxation, Steven C. Evans

Mercer Law Review

The federal tax cases decided by the Eleventh Circuit during 1991 reversed one trend and continued another trend of 1990. The Eleventh Circuit decided a number of procedural tax cases during 1991. This trend is similar to the number of procedural cases decided in years prior to 1990, but is substantially more than the number of procedural cases decided by the Eleventh Circuit in 1990. Cases decided under the Employment Retirement Income Security Act of 1974 ("ERISA"), as amended, continued to constitute the majority of the substantive tax cases decided by the Eleventh Circuit during 1991.

Federal Taxation, Steven C. Evans

Mercer Law Review

The federal tax cases decided by the Eleventh Circuit during 1990 were surprising in several respects. First, the number of procedural tax cases decided by the Eleventh Circuit was surprisingly low when compared to the number of procedural cases decided in previous years. Second, and more importantly, cases decided under the Employment Retirement Income Security Act of 1974 ("ERISA") constituted the vast majority of substantive tax cases decided by the Eleventh Circuit.during 1990. This trend is evidence of the increasing amount of litigation under ERISA and the importance of ERISA to the tax practitioner.

Taxpayers Stripped Of Clothing Deductions By An Objective Standard, Thomas Daniel Brannan

Mercer Law Review

In Pevsner v. Commissioner, the Fifth Circuit Court of Appeals held that the purchase price of expensive designer clothing was not deductible as an "ordinary and necessary" business expense of a boutique manager, even though the clothing was to be worn only at the boutique. With this holding, the court adopted an objective standard for determining adaptability of work clothing to general use.

Ms. Sandra Pevsner was the manager of a boutique that sold only women's clothes and accessories designed by Yves St. Laurent (YSL). The apparel was very expensive, and Pevsner was required by her employer to purchase …

Federal Taxation, Robert G. Woodward

Mercer Law Review

The Fifth Circuit Court of Appeals decided over sixty cases during 1980 that involved federal tax issues. This survey article discusses the Fifth Circuit's federal tax decisions that were deemed the most significant to tax scholars and practitioners. These decisions are grouped according to their subject matter.

Capital Gains As Well As Ordinary Income Absorb Net Operating Loss Deductions, Neal Weinberg

Mercer Law Review

In United States v. Foster Lumber Co., the U.S. Supreme Court, in a 5-4 decision, held that a § 1722 net operating loss deduction is absorbed by both ordinary and capital gains portions of taxable income, even though it does not reduce capital gains subject to tax in the §1201 alternative tax method.

Taxes--Constitutional Law--Nondiscriminatory Ad Valorem Tax Not Prohibited By Import-Export Clause, Michael F. Swick

Mercer Law Review

In Michelin Tire Corp. v. Wages the United States Supreme Court held that the assessment by the tax commissioners and tax assessors of Gwinnett County, Georgia, of a nondiscriminatory ad valorem property tax against petitioner's inventory of imported tires maintained at its wholesale distribution warehouse was not within the prohibition of the Import- Export Clause of the Constitution.

Federal Taxation--Credit Allowed For Foreign Social Security Payments, Ronald M. Mack

Mercer Law Review

In Revenue Ruling 69-338 the Internal Revenue Service held that certain compulsory contributions levied on the salary of a U.S. citizen employee under article 66 of the Venezuelan social security law were "an income tax which is creditable within the meaning of section 901 of the Code."

Section 901 requires that in order for a foreign tax to be creditable against U.S. income tax, it must be an income tax, a war profit tax, or an excess profits tax. Section 903 expands the concept by making certain taxes imposed in lieu of income taxes also creditable against U.S. income tax.