Volume 53, No. 3 - Spring 2000

Articles

Tax Benefits, Tax Administration, and Legislative Intent

David P. Hariton

This Article examines various tax benefits that are associated with the ownership of financial assets, why Congress granted them, why Congress limited their availability under certain circumstances, and how, in light of the answers to these questions, the relevant statutes should be administered by practitioners, the Service, the Treasury, and the courts. ...

The Role of Prescription in the Interpretive Problem of Basis Determination

Anthony P. Polito

The Millennium has arrived for calendar makers, but not for the income tax law. The much ballyhooed arrival of Y2K has not alleviated the problems that perennially plague the tax law. Return of capital issues, especially when viewed as interpretive problems, pose a particularly intractable set of difficulties in line-drawing. ...

What is Tax Treaty Abuse? (Is Treaty Shopping an Outdated Concept?)

Richard L. Reinhold

This paper represents an effort to re-examine the principal measures that have been developed to curb certain practices that have been labeled “tax treaty abuse.” Much attention has been devoted to this subject—both on the part of government as well as the private sector—since the 1970s, when the problem first received significant attention. ...

Capital Gain v. Ordinary Income and the FICA Tax Treatment of Employee Stock Purchase Plans

Kevin Wiggins

On July 2, 1999, the Service dropped a bombshell on sponsors of employee stock purchase plans (“ESPPs”) with the issuance of Field Service Advice 1999-26034 (“FSA”). The FSA dramatically changes how amounts received under an ESPP should be treated for purposes of the Federal Insurance Contributions Act. ...

Lecture

2000 Erwin N. Griswold Lecture Before the American College of Tax Counsel: How Will a Court Rule?

M. Carr Ferguson

The invitation to deliver the Griswold lecture is a formidable honor on many counts, among them Dean Griswold’s personal inauguration of the series and the high respect in which we hold each of the prior lecturers in the series. Special tribute is due tonight to two of them who left us within days of each other, John Nolan and Judge Ted Tannenwald. ...

Report

Standards of Tax Practice Statement

American Bar Association Section of Taxation Committee on the Standards of Tax Practice

This Statement addresses the issue of counsel’s responsibilities upon discovering a computational error made by the Service in the client’s favor that is unrelated to any affirmative representation or omission of either the client or counsel. ...

Notes

Collateral Estoppel Defense Disallowed When Not Initially Raised During Administrative Proceeding: True v. United States

Daniel K. Chang

In True v. United States, the U.S. Court of Appeals for the Tenth Circuit held that collateral estoppel claims omitted from an administrative refund filing were deemed waived for purposes of judicial review. The court then applied the step transaction doctrine to taxpayers’ oil and gas transactions...

Foreign Tax Credit Denied To Sham Tax Avoidance Transaction: Compaq v. Commissioner

Clifford D. Cohn

In Compaq Computer Corp. v. Commissioner, the Tax Court held that Compaq Computer Corp. was not entitled to a foreign tax credit from an American Depository Receipt arbitrage arrangement. The court stated that because the transaction lacked economic substance...

Payments to Employees of Closely Held Corporation Not Deductible under Section 162(a)(1) When They Represent Disguised Dividends: O.S.C. & Associates, Inc. v. Commissioner

Evan R. Fleck

In O.S.C. & Associates, Inc. v. Commissioner, a divided Ninth Circuit affirmed the Tax Court and held that payments made to shareholder-employees of a closely held corporation with the purported objective of compensation were not deductible because the payments were merely dividends in disguise. ...

A Framework for Determining Priority of Tax Liens Pursuant to Section 6323: Amato v. United States

Matthew Freimuth

In Amato v. United States, the U.S. District Court for the District of Idaho held that a real estate purchaser’s interest in property had priority over a prior perfected judgment lien creditor’s interest and the federal government’s tax lien. As a matter of Idaho law, the real estate contract was a valid agreement based on the doctrine of partial performance. ...

Assessing Employer FICA Tax on the Estimated Aggregate Unreported Tips of Employees: Quietwater Entertainment, Inc. v. United States

Jonathan H. Lehr

In Quietwater Entertainment, Inc. v. United States, the U.S. District Court for the Northern District of Florida held that the Service is not authorized to assess an employer’s share of FICA taxes based on an estimate of employees’ aggregate unreported tips. The court distinguished a recent Eleventh Circuit decision, Morrison Restaurants, Inc. v. United States...

Equitable Recoupment—Is it Beyond the Tax Court’s Jurisdiction?: Estate of Branson v. Commissioner

Luis C. Marini

In Estate of Branson v. Commissioner, the Tax Court held that it had jurisdiction to hear an equitable recoupment claim. The court reasoned that the Tax Reform Act of 1969 placed it in standing similar to a federal district court, thus allowing the Tax Court to exercise jurisdiction over equitable remedies. ...

Gain-Triggering Abandonment of Leasehold Subject to Nonrecourse Debt Occurred upon Agreement Transferring Substantive Ownership: L & C Springs Associates v. Commissioner

Nina S. Tallon

In L & C Springs Associates v. Commissioner, the Seventh Circuit held that, for purposes of triggering gain through debt cancellation, abandonment of property occurred when the taxpayer lessee was effectively relieved of its nonrecourse debt obligation and its leasehold interest in the property. ...

Act of State Doctrine Allows Foreign Taxes on “Net Loan” Interest Paid by a Foreign Central Bank to be Credited as a Foreign Tax Credit: Riggs National Corp. v. Commissioner

Mark Vincent Vlasic

In Riggs National Corp. v. Commissioner, the U.S. Court of Appeals for the D.C. Circuit reversed the Tax Court and held that a U.S. bank which received interest payments pursuant to a net loan with the Brazilian Central Bank is entitled to foreign tax credits under section 901 for Brazilian taxes paid on its behalf by the Brazilian Central Bank. ...

The Tax Lawyer

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Vol. 53, No. 3 - Spring 2000

The Tax Lawyer, Spring 2000

Articles

Tax Benefits, Tax Administration, and Legislative Intent

The Role of Prescription in the Interpretive Problem of Basis Determination

What is Tax Treaty Abuse? (Is Treaty Shopping an Outdated Concept?)

Capital Gain v. Ordinary Income and the FICA Tax Treatment of Employee Stock Purchase Plans

Lecture

2000 Erwin N. Griswold Lecture Before the American College of Tax Counsel: How Will a Court Rule?

Report

Standards of Tax Practice Statement

Notes

Collateral Estoppel Defense Disallowed When Not Initially Raised During Administrative Proceeding: True v. United States

Foreign Tax Credit Denied To Sham Tax Avoidance Transaction: Compaq v. Commissioner

Payments to Employees of Closely Held Corporation Not Deductible under Section 162(a)(1) When They Represent Disguised Dividends: O.S.C. & Associates, Inc. v. Commissioner

A Framework for Determining Priority of Tax Liens Pursuant to Section 6323: Amato v. United States

Assessing Employer FICA Tax on the Estimated Aggregate Unreported Tips of Employees: Quietwater Entertainment, Inc. v. United States

Equitable Recoupment—Is it Beyond the Tax Court’s Jurisdiction?: Estate of Branson v. Commissioner

Gain-Triggering Abandonment of Leasehold Subject to Nonrecourse Debt Occurred upon Agreement Transferring Substantive Ownership: L & C Springs Associates v. Commissioner

Act of State Doctrine Allows Foreign Taxes on “Net Loan” Interest Paid by a Foreign Central Bank to be Credited as a Foreign Tax Credit: Riggs National Corp. v. Commissioner

The Tax Lawyer

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Vol. 53, No. 3 - Spring 2000

The Tax Lawyer, Spring 2000

Articles

Tax Benefits, Tax Administration, and Legislative Intent

The Role of Prescription in the Interpretive Problem of Basis Determination

What is Tax Treaty Abuse? (Is Treaty Shopping an Outdated Concept?)

Capital Gain v. Ordinary Income and the FICA Tax Treatment of Employee Stock Purchase Plans

Lecture

2000 Erwin N. Griswold Lecture Before the American College of Tax Counsel: How Will a Court Rule?

Report

Standards of Tax Practice Statement

Notes

Collateral Estoppel Defense Disallowed When Not Initially Raised During Administrative Proceeding: True v. United States

Foreign Tax Credit Denied To Sham Tax Avoidance Transaction: Compaq v. Commissioner

Payments to Employees of Closely Held Corporation Not Deductible under Section 162(a)(1) When They Represent Disguised Dividends: O.S.C. & Associates, Inc. v. Commissioner

A Framework for Determining Priority of Tax Liens Pursuant to Section 6323: Amato v. United States

Assessing Employer FICA Tax on the Estimated Aggregate Unreported Tips of Employees: Quietwater Entertainment, Inc. v. United States

Equitable Recoupment—Is it Beyond the Tax Court’s Jurisdiction?: Estate of Branson v. Commissioner

Gain-Triggering Abandonment of Leasehold Subject to Nonrecourse Debt Occurred upon Agreement Transferring Substantive Ownership: L & C Springs Associates v. Commissioner

Act of State Doctrine Allows Foreign Taxes on “Net Loan” Interest Paid by a Foreign Central Bank to be Credited as a Foreign Tax Credit: Riggs National Corp. v. Commissioner

The Tax Lawyer

Subscribing

ABA Resources

The ABA

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