Taxation-Federal Commons^™

Alternative Gains Tax Treatments Of Decedents' Appreciated Capital Assets, D. Allen Grumbine

Vanderbilt Law Review

The present treatment of appreciated assets under section 1014' of the Code permits a great deal of accrued appreciation to escape the income tax. While decedents pay a greater estate tax because asset appreciation swells their estates, they pay no gains tax at death on this accrued appreciation. Moreover, the recipients of the decedent's property generally take a stepped-up basis for the property equal to its fair market value at the time of death. A great deal of criticism has been leveled at this system, and numerous proposals have been made for remedying the situation: imposition of a capital gains …

The Standards For Enforceability Of John Doe Summonses Of Third Party Records Relating To The Affairs Of Unidentified Taxpayers

Washington and Lee Law Review

No abstract provided.

Retroactive Allocations To New Partners: An Analysis Of The Area After Rodman, John W. Lee, Robert S. Parker Jr.

Faculty Publications

In the recent Rodman case, the Tax Court has held that a partner newly admitted near year-end must report his share of the full year's partnership profits. Messrs. Lee and Parker analyze the status of retroactive partnership allocations in view of Rodman, the first decision to expressly sanction retroactive allocations of income (and implicitly of losses) to new partners, and reallocations under Section 704.

Demolition Losses In Leasing: Current Or Deferred Federal Income Tax Deductions, Linda Kreer Witt

Loyola University Chicago Law Journal

No abstract provided.

The United States Interest Equalization Tax, Richard Pomp

Faculty Articles and Papers

The United States Interest Equalization tax is a one-time tax levied on certain foreign securities, proposed by President Kennedy in order to reduce the balance-of-payments deficit by restricting portfolio investment. Although the tax was enacted in 1964 as a short-term measure, it was continually extended and amended. This article explores the contours of the tax.

Prior to the tax, many foreign debt issues were attracting large amounts of capital due to their high interest rates. The IET attempts to equalize the yield of foreign debt issues with domestic debt issues by imposing a tax on the foreign issues and thus …

Catch-269, Cynthia Kappus

Loyola University Chicago Law Journal

No abstract provided.

Federal Invome Tax Discrimination Between Married And Single Taxpayers, Michael W. Betz

University of Michigan Journal of Law Reform

This article explores the present tax rate structure and its implications, considers the historical events and policies which created four separate tax rates, analyzes the tax policies embodied by the different rate treatment of married and single taxpayers, and examines the constitutional problems involved in maintaining the present disparate tax treatment. An alternative tax rate treatment, which will avoid the discrimination inherent in the present system, is suggested.

Case Digest, Journal Staff

Vanderbilt Journal of Transnational Law

1. ACT OF STATE ACT OF STATE

Doctrine precludes Payment of Insurance Policy's Cash Surrender Value in Contravention of the Law of the Nation Governing the Contract

2. ADMINISTRATIVE LAW

Secretary of the Interior may suspend Gas and Oil Leases to Conserve Maritime Natural Resources

3. ADMIRALTY

Libel in Rem against Vessel demise Chartered to the United States is not within Court's Jurisdiction under Suits in Admiralty Act when Ship is Outside United States Territorial Waters

Status as Crew Member of and a Relatively Permanent Connection with a Floating Structure required for Recovery Under the Jones Act

Employer may not …

The Expanding Rights Of Third Parties Under The Internal Revenue Service's Tax Preparers Project: A Limit On Internal Revenue Fishing Expeditions., Gregory A. Mazza

St. Mary's Law Journal

Abstract Forthcoming.

Treatment Of Income Tax Refunds In Bankruptcy After Lines V. Frederick, Michigan Law Review

Michigan Law Review

Under section 70a(5) of the Bankruptcy Act, the bankruptcy trustee is entitled to take the debtor's interest in "property" that "prior to the filing of the petition [the debtor] could by any means have transferred or which might have been levied upon and sold under judicial process against him." The Act does not, however, specifically define the term "property," and, as a result, the Supreme Court has developed its own definition. No problem has been presented by money or assets held by the bankrupt at the time of filing; such items are uniformly considered to be property. Nor has a …

The Employee's Home Office Deduction: The Problem Of Duplicate Facilities, Michigan Law Review

Michigan Law Review

The Internal Revenue Code expressly and impliedly allows taxpayers to deduct many business-related expenses that also fill personal needs. However, the deductibility of home office expenses under the general provision for business expenses, section 162 of the Code, has been a frequent subject of litigation. Section 162 requires that the employee establish that the expenses were "ordinary and necessary expenses paid or incurred during the taxable year in carrying on any trade or business." Since it is well established that working for an employer is carrying on a trade or business within the statute, in order to secure a deduction …

Limitation On Artificial Accounting Losses (Lal): Another Assault On The Tax Shelter., Jeffrey Clarke Anderson

St. Mary's Law Journal

Abstract Forthcoming.

Another Word On Child Care, Alan L. Feld

Faculty Scholarship

Professors Schaffer and Berman have written a stimulating brief in support of a deduction for child care expenses in computing federal taxable income. But, in addition, by the range of considerations which their article takes into account, it illustrates the difficulty in opting for deductibility or nondeductibility on the basis of a rational consideration of income tax policies. The difficulty derives primarily from the fact that child care expenditures partake of both a personal (consumption) element and a business (income earning) element.¹ To the extent it represents the latter, it does not represent personal income appropriately subject to tax; …

Income Tax "Loopholes" And Political Rhetoric, Boris I. Bittker

Michigan Law Review

When used by newspaper reporters and politicians, the term "tax loophole" is always a pejorative, though the tone of disapproval may be mingled with a dash of admiration for the astute lawyer or accountant who discovered the device. Since condemnation is the predominant tone, it is always assumed that loopholes can be quickly and reliably distinguished from tax provisions that are reasonable and fair. Sometimes, to be sure, it is suggested that the only criterion is self-interest: one man's loophole is another man's relief provision. More frequently, loopholes are said to inure primarily, if not solely, to the benefit of …

Avoiding The Anti-Injunction Statute In Suits To Enjoin Termination Of Tax-Exempt Status

William & Mary Law Review

No abstract provided.

Bargain Sales As Taxable To The Controlling But Non-Benefiting Shareholder

Washington and Lee Law Review

No abstract provided.

Self-Incrimination And The Use Of Income Tax Returns In Non- Tax Criminal Prosecutions

Washington and Lee Law Review

No abstract provided.

The Real Estate Investment Trust: State Tax, Tort, And Contract Liabilities Of The Trust, Trustee, And Shareholder, Michigan Law Review

Michigan Law Review

This Comment will attempt to alert potential investors in and trustees of REITs to the full extent of the liabilities that they could suffer for contract debts incurred in the name of the trust and torts committed by trust personnel. Since state tax considerations also play a significant role in investment decisions, the manner in which each state taxes the REIT and its shareholders on income derived from property and business in that state will also be investigated. Finally, a rational path out of the morass created by current state law will be articulated in order to prompt renewed discussion …

Judicial Review Of Treasury Regulations For Taxpaying And Nontaxpaying Citizens, Paul E. Sullivan, Jr.

Washington Law Review

This paper explores the possibility of subjecting such an administrative ruling to judicial review initiated either by a taxpayer not benefited by the regulation or by a nontaxpayer. For either party to prevail he must prove that he has standing, that judicial review is available, and that there is a remedy which he can obtain by judicial review

Income Tax—Section 482 Of The Internal Revenue Act: Commissioner's Authority To Allocate Income Is Limited By Taxpayer Legal Disability—Commissioner Of Internal Revenue V. First Security Bank Of Utah, N.A., 405 U.S. 394 (1972), J. P. H.

Washington Law Review

First Security Bank, a wholly owned subsidiary of Holding Company, referred its borrowers to Security Life, a sister subsidiary, for the purpose of obtaining credit insurance. Security Life paid no commissions to First Security, but it did pay substantial dividends to Holding Company. By funneling all of the premium income through Security Life, which qualifed for preferential treatment as a life insurance company, Holding Company enjoyed a substantial tax advantage. The Commissioner of Internal Revenue, acting pursuant to section 482 of the Internal Revenue Code,4 sent notice of deficiencies to First Security based on an allocation to that subsidiary of …

Gift And Leaseback: A Continuing Tax Controversy, Eugene L. Mahoney

Loyola University Chicago Law Journal

No abstract provided.

Federal Tax Administration And The Small Taxpayer, L. Hart Wright

University of Michigan Journal of Law Reform

The actual or supposed complexity of substantive federal tax law has generated two unresolved administrative by-products of peculiar importance in the case of small taxpayers. In each of these circumstances the Internal Revenue Service (and in one, the Congress) has tended to default on its programmatic responsibility to facilitate payment by small taxpayers of no less and no more than they owe under the tax law. For too long and to too large an extent, these taxpayers, although completely bewildered and devoid of self-confidence in the conduct of their tax affairs, have had to fend for themselves, both at return …

Rhoades: Income Taxation Of Foreign Related Transactions, Alan G. Choate

Michigan Law Review

A Book Review of Income Taxation of Foreign Related Transactions by Rufus von Thülen Rhoades

Command Performance: The Tax Treatment Of Employer Mandated Expenses, John W. Lee

Faculty Publications

No abstract provided.

Deferred Compensation Arrangements Under Section 83 Of The Internal Revenue Code: Is Restricted Property Still A Viable Means Of Compensation?, Michigan Law Review

Michigan Law Review

When faced with the problem of compensating key executives, employers have tended to avoid the exclusive use of current cash compensation, since this would result in an immediate and substantial income tax to highly paid employees. Deferred compensation plans have been utilized in order to maximize tax benefits for employees, such as deferred recognition of income and capital gains treatment. Although such plans are structured to meet the needs of the particular employer and employee, several forms of deferred compensation are common. Among these are qualified and unqualified pension, profit-sharing, and stock bonus plans; qualified, restricted, and employee stock purchase …

Deductibility Of Expenses For Child Care And Household Services: New Section 214, Alan L. Feld

Faculty Scholarship

It is increasingly common to find families composed of husband, wife and young children, where both husband and wife are gainfully employed. For some, this pattern is regarded as preferable to the older "ideal" family, where the husband was the sole breadwinner and the wife cared for the children, performed household chores and perhaps engaged in social or charitable activities. Where both spouses are gainfully employed, it is often necessary for the family to employ household help to care for the children and do the housework. These expenditures are "necessary" to the gainful employment of both spouses in the sense …

Book Review Of Readings In Federal Taxation, L. Graeme Bell Iii

Journal of Legal Education

No abstract provided.

Federal Taxation In Separation And Divorce, Edward S. Graves

Washington and Lee Law Review

No abstract provided.

The Burden Of Proof Required Of A Parent Claiming Child Exem Ption

Washington and Lee Law Review

No abstract provided.

Corporate Taxation In 1971; Something New, Something Old., Malcolm L. Shaw

St. Mary's Law Journal

Abstract Forthcoming.