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NOTES 311 Tax Lawyer, Vol. 56, No. 1 NOTE DEBATING THE “PLAIN MEANING” OF SECTION 355’S ACTIVE BUSINESS REQUIREMENT: MCLAULIN V. COMMISSIONER In McLaulin v. Commissioner1 the Eleventh Circuit held that a distribution by an S corporation (“Parent”) of its ownership interest in a subsidiary corporation (“Subsidiary”) did not qualify for non-recognition treatment as a spin-off under sections 355(a)(1)(C) and (b)(2)(D)(ii).2 Affirming the Tax Court’s decision, the appellate court held that the...

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