Taxation-Federal Commons^™

Small Issue Industrial Development Bonds: The Growing Abuse

Washington and Lee Law Review

No abstract provided.

Federal Recent Developments

American Indian Law Review

No abstract provided.

Planning With The Changed Cost Recovery Rules, Jere D. Mcgaffey

William & Mary Annual Tax Conference

No abstract provided.

Compliance With The New Continuity Of Business Enterprise Regulation, John J. O'Donnell

Washington Law Review

Many questions unanswered by the new regulation have already been dealt with in these older forms of continuity of enterprise requirements. This article will discuss the major unanswered questions of the new regulation, examine how the older forms of continuity of enterprise have dealt with such issues, and consider the propriety of applying the older-form decisions to the new reorganization-enterprise continuity regulation. The result will be some guidance, although unfortunately no guaranteed methods, on how to avoid being forced to litigate the validity of the regulation itself.

Accrual Of Gambling Debts Under Internal Revenue Code Section 451, Michigan Law Review

Michigan Law Review

This Note examines whether an accrual-basis taxpayer must include a legally unenforceable claim in taxable income when it is executed or satisfied. Section I of the Note interprets the "all events test" to require measurement of the likelihood of payment of a debt at the time it is executed: If payment is sufficiently certain, the debt must be accrued. The section concludes that the casinos must include the outstanding markers as income in the year of their execution, and cannot postpone their inclusion until the debts are repaid. Section II argues that accrual-method taxpayers are entitled to use a "bad …

The Likely Source: An Unexplored Weakness In The Net Worth Method Of Proof, Ian M. Comisky

University of Miami Law Review

The government will often suspect a taxpayer of tax evasion if it discovers that the taxpayer's net worth has increased and that the taxpayer did not report the full amount of the increase as taxable income. If the government can establish a likely source for the increase, a jury will be permitted to infer that the taxpayer derived the increase from currently taxable and unreported income. In this article, the author discusses the origins, development, and varied applications of this "likely source inference." Then, after critically examining the constitutional underpinnings of the inference, the author argues that the inference is …

Revocation Of Tax-Exempt Status Of Religious Schools-Conflict With The Religion Clauses Of The First Amendment: Bob Jones University V. United States, R. Clyde Parker Jr.

BYU Law Review

No abstract provided.

Internal Revenue Service Summonses For "Sensitive"Accountants' Papers, Robert G. Nath

Vanderbilt Law Review

Every modern public corporation has obligations of accountability and disclosure to the public and to its shareholders. These accepted duties of disclosure, however, become the source of conflicts when government agencies make unanticipated inquiries of accountants about otherwise private or background data concerning the corporations they audit. This is particularly true when a public corporation's duties of financial accountability, which stem chiefly from securities law requirements and fiduciary duties,evoke the Internal Revenue Service's interest in information that may reveal or be probative of the corporation's tax liability. Most corporate taxpayers and their accountants understand and accept--if only reluctantly--their obligations to …

United States V. Lee, Lewis F. Powell, Jr.

Supreme Court Case Files

No abstract provided.

Tufts -- The Resurrection Of Crane's Footnote 37, Janet Jacobowitz

Florida State University Law Review

No abstract provided.

Rawls, Justice, And The Income Tax, Charles R.T. O'Kelley

Scholarly Works

To the extent the primacy of justice is acknowledged in tax policy debate, such acknowledgment is coupled with the assertion that, of course, questions of justice cannot be meaningfully debated. The discussants then attempt to resolve the issue in question by use of ad hoc arguments of fairness and efficiency. The major purpose of this article is to show that not only is justice the primary issue, but that questions of justice can be meaningfully addressed. First, I will examine some of the ad hoc arguments of fairness and efficiency which have been made by proponents of a consumption base …

The Decline And Fall Of Taxable Income, Glenn E. Coven

Michigan Law Review

After first exploring the intellectual climate that has facilitated the congressional disregard of taxable income, this Article will examine three areas in which taxable income is no longer the exclusive mechanism for allocating the burden of taxation. That examination will outline the undesirable consequences of the decline of taxable income, and demonstrate that Congress need not have disregarded taxable income to secure the desired pattern of taxation. Because the use of multiple rate schedules constitutes the most significant deviation from the concept of taxable income in terms of the number of taxpayers that it affects and the popular resentment against …

Home Office Deductions: May A Taxpayer Have More Than One Principal Place Of Business?, Michigan Law Review

Michigan Law Review

This Note argues that the Tax Court's more liberal interpretation is correct because it more nearly reflects Congress's intent. Part I seeks a basis for preferring one of the competing interpretations in the text of section 280A and in the section's legislative history, but finds none. Looking, of necessity, to the purposes that Congress sought to advance with section 280A, Part II argues that those purposes do not demand a restrictive reading of "principal place of business." Such a reading, moreover, would undermine fundamental and longstanding congressional tax policies. In the absence of a more explicit statement of congressional intent, …

Carnation Co. V. Commissioner, 640 F.2d 1010 (9th Cir. 1981), Jorge E. Alvarez

Florida State University Law Review

Income Tax-FOREIGN INCOME-INSURANCE PAYMENTS TO WHOLLY-OWNED FOREIGN CAPTIVE INSURANCE COMPANY ARE RECAST AS CAPITAL CONTRIBUTIONS

The Mortgage Subsidy Bond Tax Act Of 1980: A Step In The Wrong Direction, Joseph Edward Broadus

Florida State University Law Review

No abstract provided.

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.

A Substance-Oriented Approach To The Boot-Netting Rules Under Section 1031 Of The Internal Revenue Code: Biggs V. Commissioner, Gregory Clark Newton

BYU Law Review

No abstract provided.

Ogiony V. Commissioner, 617 F.2d 14 (2d Cir. 1980), Vincent A. Sable

Florida State University Law Review

Taxation-DISREGARDING THE CORPORATE ENTITY-PARTNERS UNABLE TO IGNORE EXISTENCE OF CORPORATION USED FOR FINANCING PURPOSES

Of No Interest: Truth, Substance, And Bargain Borrowing, Joseph W. Jacobs

Florida State University Law Review

No abstract provided.

Federal Regulation Of Foreign Currency Trading For Future Delivery On Interbank And Futures Markets, Stewart L. Brown, W. Dekle Day

Florida State University Law Review

No abstract provided.

The Tax Implications Of Corporate Insolvency Under The Bankruptcy Tax Act Of 1980, Douglas Robison

Duquesne Law Review

This issue's lead article is concerned with the provisions of the recent Bankruptcy Tax Act which affect insolvent corporate debtors. The author provides a detailed examination of how the Act interfaces with the Internal Revenue Code and discusses how the Code has been modified. He concludes that, although it is a product of compromise and thus may be faulted for some of its provisions, the Act should be welcomed by tax and bankruptcy practitioners.

Re-Examining The Sham Doctrine: When Should An Overpayment Be Reflected In Basis?, Mitchell M. Gans

Buffalo Law Review

No abstract provided.

Do Chinese Income Taxes Qualify For The U.S. Foreign Tax Credit, Richard Pomp, Timothy A. Gelatt

Faculty Articles and Papers

The desirability of doing business in any foreign country may turn on the ability to avoid double taxation. This issue is a serious concern for foreign countries. For example, in China authorities have expressed a willingness to pursue a treaty specifically removing the problem of double taxation regarding a proposed petroleum or mineral exploitation tax. However, without such a treaty, U.S. taxpayers will be left with an important question: Will the Chinese income taxes be creditable against their U.S. income taxes?

A U.S. foreign tax credit is generally allowed for foreign income taxes paid or accrued, or for foreign income …

Tax Breaks For Law Students

Washington and Lee Law Review

No abstract provided.

B Reorganizations: The Voting Stock Rule Revisited

Washington and Lee Law Review

No abstract provided.

Comparative Analysis Of Systems Of Domestic Taxation Of Controlled Foreign Corporations, Jamie S. Martin, A. Dale Wilson

Vanderbilt Journal of Transnational Law

This Note outlines the existing law and practice of the domestic taxation of CFC's in the United States, United Kingdom, France, West Germany, and Japan, each of which exhibits a high level of economic and industrial advancement. United States developments are important because the statutory provisions of Subpart F have been adopted, with modifications, by other nations, including West Germany and Japan. The United Kingdom and France, on the other hand, have not yet adopted an integrated statutory scheme providing for domestic taxation of CFC's. These countries attack tax evasion schemes utilizing foreign controlled companies primarily through general laws, exchange …

Corporate Distributions And The Income Tax: A Consideration Of The Inconsistency Between Subchapter C And Its Underlying Policy, Charles O'Kelley

Faculty Articles

The issue of whether the sale of shares to an issuer shall be treated as a dividend or as received in exchange for a capital asset has troubled Congress, courts, and commentators since the Revenue Act of 1913. If a corporation redeems some of its shares or distributes all of its assets in complete liquidation, the transaction is generally described as having the characteristics of a divided to the extent the distribution is ‘out of earnings and profits' and the characteristics of a sale to the extent that it terminates the equity interest of the redeemed party. In light of …

Rawls, Justice, And The Income Tax, Charles O'Kelley

Faculty Articles

To the extent the primacy of justice is acknowledged in tax policy debate, such acknowledgment is coupled with the assertion that, of course, questions of justice cannot be meaningfully debated. The discussants then attempt to resolve the issue in question by use of ad hoc arguments of fairness and efficiency. The major purpose of this article is to show that not only is justice the primary issue, but that questions of justice can be meaningfully addressed. First, Professor O’Kelley examines some of the ad hoc arguments of fairness and efficiency which have been made by proponents of a consumption base …

Stock Redemptions: The Standards For Qualifying As A Purchase Under Section 302(B)., Douglas A. Kahn

Articles

This Article discusses the requirements of section 302(b) for characterizing a stock redemption as a purchase rather than as a dividend equivalent. The focus is primarily on two issues: (1) whether the election authorized by section 302(c)(2) to waive family attribution rules should be available to an entity such as a trust or estate; and (2) the determination of the standards to be applied in resolving whether a redemption is "not essentially equivalent to a dividend" so that section 302(b)(1) is applicable.