Taxation-Federal Commons^™

Enforcement, E. Barrett Prettyman

William & Mary Annual Tax Conference

No abstract provided.

Income Tax—Dividends Held Taxable Income In Year Of Actual Receipt, Richard C. Wagner

Buffalo Law Review

Commissioner v. Fox, 218 F. 2d 347 (3d Cir. 1954).

Income Taxation Of Collapsible Corporations, Irwin E. Ginsberg

Buffalo Law Review

No abstract provided.

Taxation - Federal Income Tax - Meals And Lodging Under The 1954 Code, John H. Mcdermott

Michigan Law Review

Before discussing the application of the 1954 Internal Revenue Code with regard to the taxability of meals and lodging furnished an employee by his employer, several fundamental tax concepts should be examined. The first of these involves the definition of gross income, which for many years has been cast in broad statutory language. For example, section 22(a) of the 1939 Internal Revenue Code provided that gross income includes " ... gains, profits, and income derived from salaries, wages, or compensation for personal service ... of whatever kind and in whatever form paid .... " Comprehensive as these terms appear, gross …

Taxation - Federal Income Taxation - Problems Created By The Complex Trust Provisions Of The 1954 Code, Harvey A. Howard S.Ed.

Michigan Law Review

This comment will not be expository of all of the trust provisions but rather will attempt to deal with some of the more important interpretative difficulties likely to be encountered in the new law involving the taxation of the income of those trusts which may accumulate income, distribute corpus, or pay or set aside amounts for charitable purposes. It will be assumed that the reader is familiar with the basic statutory pattern of the trust sections of the new code.

Stipulations--Operation And Effect--Administrative Compared With Judicial Proceedings, H. C. B.

West Virginia Law Review

No abstract provided.

Taxation - Federal Income Tax - Corporate Accumulations, Stock Dividends And The "Preferred Stock Bail-Out," And Taxability Of The Corporation Upon The Distribution Of "Inventory Assets" Under The Internal Revenue Code Of 1954, Alice Austin S.Ed.

Michigan Law Review

It is the purpose of this discussion to indicate, with respect to corporate accumulations and distributions, some of the major interpretative problems existing under the 1939 code which Congress has failed to resolve, as well as some of the major interpretative difficulties which arise for the first time under the 1954 code.

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, …

Community Property—Ownership During Probate Of The Estate Of One Spouse For Income Tax Purposes, John A. Gose

Washington Law Review

In the case of U.S. v. Merrill, 211 F.2d 297, (9th Cir. 1954), the court held that when a wife dies in the state of Washington leaving solely community property and the surviving spouse serves as executor of her estate, only one-half of the executor's fee paid to the husband from community funds is taxable to him as income. The other one-half of the fee is chargeable to his share of community property. Further, the court in dictum said that when one spouse dies leaving an estate consisting only of community property, the executor or administrator is not the owner …

Taxation - Federal Income Tax - Extent To Which A Dividend In Kind Is Ordinary Income Under The Internal Revenue Code, Alice Austin S.Ed.

Michigan Law Review

Taxpayer, a corporate shareholder, received from the corporation a distribution of property which had appreciated in value over its adjusted cost. The earnings and profits of the corporation were sufficient to cover the adjusted cost of the property distributed, but were not sufficient to cover its full fair market value at the time of distribution. The Tax Court held that the fair market value of the distribution was taxable as a dividend only to the extent of the corporation's earnings and profits. On appeal, held, reversed. In determining whether a distribution in kind is a dividend under section 115(a), …

Taxation--Conveyance Of In-Oil Payment Rights--Capital Gain Or Ordinary Income, Sylman I. Euzent

Kentucky Law Journal

No abstract provided.

Tax Advantages Of Foundations And Exempt Organizations, Joseph Berman, Daniel S. Berman

Cleveland State Law Review

Businessmen these days are playing an ever increasing role in the creation and support of "non-profit" philanthropic foundations. Their purpose is a dual one; to save taxes and to immortalize a family name, and they are as old as the pyramids. We know of about 20,000 foundations existing in England, but the large broad-purpose foundations were created in the United States. The greatest expansion in this area is attributable to the family and corporate foundations. The corporation tax of 52% and the individual income tax of up to 91% are so severe that high-bracket taxpayers can give to charity at …

The Federal Income Tax Consequences Of Transactions Relating To Mortgages On Land, Lester R. Rusoff

Buffalo Law Review

No abstract provided.

Michigan Title Examinations And The 1954 Revenue Code's New General Lien Provisions, L. Hart Wright

Michigan Law Review

Title examiners, and more particularly their clients, have long suffered from a controversy-limited almost exclusively to Michigan- involving the methods by which the United States Treasury Department could perfect general federal tax liens. The December 1952 issue of the Michigan Law Review carried an article by the present writer pointing up the irreconcilable difference which has existed for a quarter of a century between the type of record notice which the Treasury was willing to provide prospective bona fide purchasers et al., and the quite different and more demanding type which the Michigan Legislature insisted upon if the local offices …

Taxation - Federal Income Tax - Deferred Compensation As Affected By Constructive Receipt Doctrine, David D. Dowd, Jr. S.Ed.

Michigan Law Review

Prior to his retirement as a general agent of a life insurance company, the petitioner entered into a new contract with the company by which he was to receive upon retirement fixed monthly instalments for fifteen years in lieu of his original contract rights to receive renewal premium commissions as they were paid into the company. Petitioner, as a cash basis taxpayer, reported as income only the instalments received. The Commissioner assessed deficiencies in the reports, contending that petitioner's taxable income consisted of all renewal commissions received by the company during the taxable year, rather than the instalment payments. Rejecting …

Federal Taxation: Perspective During The Fifth Decade, J. W. Riehm

Michigan Law Review

Since the enactment of the income tax provisions of the Tariff Act of October 3, 1913 forty years have elapsed within which we have seen a profound change in the revenue system of our federal government, the growth of a great new branch of public law, the development of a highly specialized field of legal practice and the publication in legal periodicals of innumerable articles on the subject of taxation. Tax men can, with great pride, point out that technical proficiency has done an amazing job of keeping pace with the rapid expansion of the system from the utilization of …

Taxation-Federal Income Tax-Limited Deductibility Of Entertainment Expenses, David W. Belin S.Ed.

Michigan Law Review

In the sophisticated commercial world of today there are many expenses that might be termed of a "mixed complexion," having elements of both a business and non-business character. Nowhere is this better exemplified than in the area of entertainment expenses. Though one may assume that it should be the policy of the courts to allow full and fair deduction of business expenses in general, many difficulties arise regarding expenditures for entertainment purposes. In virtually all entertainment there is personal enjoyment of a social nature by the taxpayer as well as potential business value. Furthermore, what business value there is will …

Income Tax—Entertainment Expense Attributable To Taxpayer Deductible Only If In Excess Of Amount One Ordinarily Spends, Rudolph F. Defazio

Buffalo Law Review

Sutter v. Commissioner, 21 T. C. No. 20 (1953).

Federal Tax Consequences Of Alimony And Separate Maintenance Payments, Paul D. Lagomarcino

Buffalo Law Review

No abstract provided.

Income Tax—Exercise Of Employee’S Stock Options, Jules Gordon

Buffalo Law Review

McNamara v. Commissioner, 210 F. 2d 505 (7th Cir. 1954).

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 …

Book Reviews, Robert L. Hale, John P. Dawson, Monrad G. Paulsen, William R. Roalfe, John C. Payne, Maxwell Cohen, L. C. B. Gower, John S. Bradway, Paul Sayre, Herbert A. Berman, James S. Savage, Joseph Dainow, Edwin P. Friedberg, Edwin J. Hadd, Kenneth L. Black, H. W. Hannah, Dix W. Noel, Robert F. Koretz, Heinrich Kronstein

Journal of Legal Education

No abstract provided.

Taxation-Federal Income Tax-Tax Avoidance By Use Of Preferred Stock ''Bail-Out", Raymond R. Trombadore S.Ed.

Michigan Law Review

In 1946 petitioner received a pro-rata dividend of preferred stock of the distributing corporation, paid on its voting common, the only class of stock then outstanding. The dividend stock was immediately sold to certain insurance companies pursuant to prior informal agreements between the insurance companies, the corporation, and the shareholders. Provision was made for the mandatory redemption of the preferred stock over a period of eight years. The transactions were the culmination of a series of negotiations intended to eliminate the large accumulated surplus of the corporation, in order to avoid the imposition of a penalty surtax thereon. In reporting …

Taxation - Federal Income Tax - Deductibility Of Expenses Incurred By Attorney In Attending Tax Institute, John E. Riecker S.Ed.

Michigan Law Review

Petitioner was a member of a firm of lawyers engaged in general practice in Binghamton, New York. The firm did enough work in federal taxation to warrant petitioner's specializing in this field, and his partners relied upon him to keep abreast of all significant developments in tax law. Petitioner attended the Fifth Annual Institute on Federal Taxation, conducted in New York City under the sponsorship of New York University and designed exclusively for practitioners and specialists in the tax field. He incurred expenses for travel, board, lodging, and tuition, all of which he deducted as ordinary and necessary business expenses …

Kentucky Income Tax Compared With Federal Income Tax, Charles R. Lockyer

Kentucky Law Journal

No abstract provided.

The Income Tax And Accounting Records For Illegal Businesses, Thomas J. Whiting

Cleveland State Law Review

The activities of gamblers and other illegal operators have received considerable public notice recently as a result of the Kefauver Committee's investigations. Although the amounts of money involved in these operations are astronomical, no complete records are maintained by these individuals. Amounts entered on income tax returns of this type are completely incapable of verification in the usual method because of the incompleteness of the records and data available. Admittedly these operators are in the unenviable position of being required to keep complete records for income tax purposes, but being afraid to do so because of their evidentiary value to …

Taxation - Federal Income Tax - Exchange Of Debentures For Preferred Stock As Tax-Free Reorganization, Raymond R. Trombadore S.Ed.

Michigan Law Review

Plaintiff held common and preferred stock of the Gulf States Paper Corporation. In 1942 plaintiff received new debentures in exchange for his preferred stock, pursuant to a plan for the recapitalization of the company whereby the entire 25,000 shares of previously outstanding preferred stock (including plaintiff's 208 shares) were exchanged for new debentures of like value. In 1950 the Commissioner assessed an income tax deficiency against plaintiff, determining that the redemption and cancellation of the preferred stock represented a distribution essentially equivalent to the distribution of a dividend and taxable under section 115(g)(1) of the Internal Revenue Code. Plaintiff sued …

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 …

Income Tax—Expenses Of Attending Tax Institute Held Deductible, Hubert J. Holler

Buffalo Law Review

Coughlin v. Commissioner, 203 F. 2d 307 (2d Cir. 1953).

Income Tax—Treasury Stock Dividends Held To Be Taxable, Victor C. Silverstein

Buffalo Law Review

Schmitt v. Commissioner, 20 T. C. No. 44 (May 14, 1953).