Taxation-Federal Commons^™

New Exemptions From Withholding Of Federal Income Taxes On Compensation Paid To Nonresident Aliens, Kenneth R. Meyers

Vanderbilt Journal of Transnational Law

The exemptions available in the 1984 regulations will benefit nonresident aliens receiving compensation for personal services. The exemptions will allow nonresident aliens to receive more of their compensation while they are in the United States, and, in turn, will enable them to spend more of it in the United States. The exemptions are substantially broader and more generous than the narrow exemptions previously available. If a nonresident alien avails himself of the final payment exemption or the withholding agreement exemption, if he is to receive income from United States and foreign sources from one withholding agent, the required negotiations with …

The Character Of A Partner's Distributive Share Under The "Substantial Economic Effect" Regulation, Alan Gunn

Journal Articles

Partnership income and deductions are allocated according to the amount and the character of each partner's distributive share. This article examines the ways in which the section 704(b) regulations apply the "substantial economic effect" test to character allocations. It argues that it is important to distinguish allocations of character from allocations of amounts to understand these regulations. This is because tests that the regulations apply to character issues have to do with source-measurement correspondence and proration, while amounts are determined according to economic effect in the capital account sense. Although the regulations' rules for character allocations purport to define "substantiality," …

Limiting Losses Attributable To Nonrecourse Debt: A Defense Of The Traditional System Against The At-Risk Concept, Glenn E. Coven

Faculty Publications

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 …

For A Few Dollars More: Client’S Right To Discharge His Attorney Under A Contingent Fee Contract, Irving Cohen

Cardozo Law Review

No abstract provided.

The Parenting Tax Penalty: A Framework For Income Tax Reform, Charles R.T. O'Kelley

Scholarly Works

Part I considers the proper tax treatment of out-of-pocket parenting expenses such as the costs incurred in providing food, clothing, shelter, and other goods and services to children for their consumption. Part I first characterizes the principal design alternatives to the present flat dependency deduction. It then examines the dominant accretion definition of income and concludes that the current flat dependency deduction is more consistent with the accretion concept and our actual governing beliefs than is any of the alternatives advocated by its critics.

Part II considers the tax relevance of imputed income from self-performed services. It explains (1) how …

Section 83 Applied To Partnership Transactions: The Road To Certainty In Planning And Controlling The Tax Consequences Of Exchanges Of Partnership Interests For Services, Charles R. Gehrke

Florida State University Law Review

No abstract provided.

Recent Developments In The Federal Tax Law Treatment Of Nominee Corporations, Carla Green

Florida State University Law Review

No abstract provided.

An Opportunity Missed: Armco, Inc. V. Hardesty, A Retreat From Economic Reality In Analysis Of State Taxes, C. James Judson, Susan G. Duffy

West Virginia Law Review

No abstract provided.

Overturning Bellas Hess: Due Process Considerations, Sandra B. Mccray

BYU Law Review

No abstract provided.

Does Charity Begin At Home? The Tax Status Of A Payment To An Individual As A Charitable Deduction, Michigan Law Review

Michigan Law Review

In White v. United States, the United States Court of Appeals for the Tenth Circuit reversed a district court decision and held that the taxpayers could deduct expenses they paid directly to their dependent son to support his missionary activities away from home. In Brinley v. Commissioner, the Tax Court sitting in Texas refused to follow the Tenth Circuit in White, and held that while the missionary son was entitled to deduct his personal expenses, the parents could not deduct their payment of the son's expenses.

This Note supports the result in Brinley and argues that the …

Internal Revenue Code Section 414(N): Congressional Authorization To Discriminate Among Retirement Plan Participants, David A. Channer

BYU Law Review

No abstract provided.

Tax Policy For Post-Liberal Society: A Flat-Tax-Inspired Redefinition Of The Purpose And Ideal Structure Of A Progressive Income Tax, Charles R.T. O'Kelley

Scholarly Works

A flat rate comprehensive federal income tax could be achieved by replacing graduated rates with a single rate that applies to all taxpayers, eliminating many currently available deductions and credits, and treating as taxable income types of economic gain presently excluded from the tax base. The fact that Congress is seriously considering such radical changes makes it appropriate for tax scholars to reconsider longheld beliefs about the ideal structure of an income tax. This Article analyzes the characteristics and underlying rationale of a progressive flat rate comprehensive income tax and reconsiders the nature and purpose of a progressive income tax. …

United States Taxation Of Its Citizens Abroad: Incentive Or Equity, Renee J. Sobel

Vanderbilt Law Review

The United States, unlike many sovereignties, has exercised worldwide income tax jurisdiction over its individual citizens since the inception of the income tax. Since 1926, however, United States citizens working abroad have received special treatment in the taxation of their foreign earned income. By the use of a tax credit, direct double taxation has been avoided. In addition, various exclusions and deductions have been permitted. Such tax preferences have been justified on the grounds that they promote tax equity and that they serve as incentives to encourage Americans to work overseas.

This Article considers whether the special treatment of United …

Internal Revenue Code Section 7701(B): A More Certain Definition Of Resident, Rolf E. Kroll

Penn State International Law Review (1982 - 2011)

The purpose of this Note is four-fold. First, it seeks to articulate the central concepts underlying taxation of nonresidents and residents. In so doing, the discussion endeavors to show the importance of section 7701(b) of the Internal Revenue Code. Second, it attempts to cancas the case law and pertinent regulations and rulings and highlight the ambiguities therein. Third, the discussion will address the essential features of section 7701(b) and illustrate Congress' new approach to the problem of determining resident status for aliens. Finally, the policy implications of 7701(b) are examined and suggestions for further improvement are made.

Commments: Putting The House In Order: An Analysis Of And Planning Considerations For Home Office Deduction, Mark T. Holtschneider

University of Baltimore Law Review

Section 280A of the Internal Revenue Code allows a taxpayer to deduct expenses incurred with respect to his home office only if the home office qualifies as a principal place of business, is a place of business where he meets or deals with patients, clients, or customers, or is in a separate structure detached from his residence. These exceptions, designed to permit a home office deduction only to deserving taxpayers, have been a point of contention between the Internal Revenue Service and taxpayers. In this comment, the author examines the statutory components of section 280A, reviews the decisional law, suggests …

Installment Land Contracts--The National Scene Revisited, Dale A. Whitman, Grant S. Nelson

Faculty Publications

In 1977 we published an article in this Review that discussed the legal aspects of the installment land contract. The installment contract was then, and continues to be, widely used as a device for seller financing of real estate. In our judgment, and increasingly in the judgment of the courts, that is a mistake. Few situations, if any, would lead an informed lawyer to advise his client to use an installment contract rather than its financing cousin, the note secured by a mortgage or deed of trust. Since the prior article was published, the courts have continued to place impediments …

The Tax Expenditure Budget: A Typological Analysis, Jochen Winter

LLM Theses and Essays

The Tax Expenditure Budget has been part of the budgetary process for more than ten years. This study attempts to review the academic and administrative pros and cons. It focuses on the effect of the tax Expenditure Budget on tax legislation. Finally, it determines the role of the Tax Expenditure Budget in today’s fiscal policy.

Greater Efficiency Or Higher Consumer Rates? Fcc Preemption Of State Depreciation Methods For Telephone Companies In Virginia State Corporation Commission V. Fcc

Washington and Lee Law Review

No abstract provided.

Abusive Tax Shelters After The Tax Reform Act Of 1984

Washington and Lee Law Review

No abstract provided.

Taxing Personal Insurance: The Case Of Tax Audit Insurance, William D. Popkin

Articles by Maurer Faculty

No abstract provided.

Federal Law And State Corporate Income Taxes, Charles E. Mclure, Jr.

Vanderbilt Journal of Transnational Law

Beginning as early as 1959, when the Supreme Court handed down its decision in Northwestern States Portland Cement and Stockham Valves, the business community has repeatedly asked that federal legislation be enacted to restrict the scope of permissible state action in taxing corporate income. In the intervening quarter century, the only federal legislation on state corporate income tax was P.L. 86-272, which restricted the ability of states to tax a nondomiciliary company when the company's only activity in the state was the solicitation of sales. In 1983 following the Court's decision in Container Corporation of America, foreign corporations and foreign …

The Supreme Court's Misconstruction Of A Procedural Statute-A Critique Of The Court's Decision In Badaracco, Douglas A. Kahn

Articles

When a taxpayer files an honest' federal income tax return for a taxable year, section 6501(a) of the Internal Revenue Code2 limits the period of time during which the Government can assess a tax for that year to a three-year period commencing with the date that the return was filed. The three-year limitations period is extended for an additional three years by section 6501(e)(1)(A) if the taxpayer's return omits properly includible gross income in an amount in excess of twenty-five percent of the gross income that was reported. If a taxpayer fails to file a return for a taxable year …

Tax Policy For Post-Liberal Society: A Flat Tax Inspired Redefinition Of The Purpose And Ideal Structure Of A Progressive Income Tax, Charles O'Kelley

Faculty Articles

A flat rate comprehensive federal income tax could be achieved by replacing graduated rates with a single rate that applies to all taxpayers, eliminating many currently available deductions and credits, and treating as taxable income types of economic gain presently excluded from the tax base. The fact that Congress is seriously considering such radical changes makes it appropriate for tax scholars to reconsider longheld beliefs about the ideal structure of an income tax. This article analyzes the characteristics and underlying rationale of a progressive flat rate comprehensive income tax and reconsiders the nature and purpose of a progressive income tax. …

Disparate Tax Treatment Of Different Types Of Business Organizations: Where Should We Go From Here?, Douglas A. Kahn

Articles

If several persons wish to join together in a common enterprise in order to pool their capital or labor or some of each, they may choose among a variety of available organizational structures that will serve that purpose. The most common entity forms are partnerships (including joint ventures), corporations, and trusts. While, in its typical structure, each of those entity forms has its own distinct characteristics, the structure of such organizations often is modified by agreement so as to adopt attributes of another type of entity. Because of this, the substantive distinction between entity types is blurred.

Recent Developments In Tax-Exempt Organizations, Stephen Schwarz

Faculty Scholarship

No abstract provided.

Constitutional Protection For Creative Tax Shelter Promoters: Ninth Circuit Restricts The Government's Arsenal Of Power—United States V. Dahlstrom, 713 F.2d 1423 (9th Cir. 1983), Cert. Denied, 104 S. Ct. 2363 (1984), Beryl N. Simpson

Washington Law Review

In United States v. Dahlstrom, the Ninth Circuit Court of Appeals reversed the criminal tax fraud convictions of five tax advisers. The defendants had been convicted for developing and promoting a program in which a United States taxpayer shifted taxable income to a controlled trust in a tax-haven country. The Ninth Circuit held that, as a matter of law, the promoters of the foreign trust arrangement could not be convicted of counseling fraud because the particular scheme had not yet been declared fraudulent. Through its decision the court has restricted the government's campaign against abusive tax shelters, and placed a …

Defining "Trade Or Business" Under The Internal Revenue Code: A Survey Of Relevant Cases, E. John Lopez

Florida State University Law Review

No abstract provided.

Are Mandatory Income Tax Withholding Work Expenses Or Are They Not Income In Afdc: An Analysis Of The Statute And Its History, William D. Herlong

North Carolina Central Law Review

No abstract provided.

Blowing Hot And Cold At The Same Time: Section 1034 Rollover And Rental Deductions On Rental And Sale Of Principal Residence

Washington and Lee Law Review

No abstract provided.