In Memoriam

Articles

Notes

State Tax Liens Became Choate When Tax Returns Were Processed, Not When Filed by the Taxpayer: Minnesota Department of Revenue v. United States

In Minnesota Department of Revenue v. United States, the Eighth Circuit held that a federal tax lien has priority over a Minnesota state tax lien, because the state lien did not become choate until the tax return was processed by the state, which occurred after the federal tax assessment. Reversing the District Court, the Eighth Circuit determined...

Regulation Section 1.882-5 Violates the Separate Enterprise Principle of Article 7 of the U.S.-U.K. Tax Treaty: National Westminster Bank, PLC v. United States

In National Westminster Bank, PLC v. United States, the U.S. Court of Federal Claims held that the separate enterprise principle of the U.S.-U.K. Income Tax Treaty requires that the profits of a U.S. branch of a U.K. banking corporation should be determined by taking into account intra-corporate lending transactions reflected on the branch's books, subject to possible adjustments. ...

Challenges to Enforceability of a Debt Do Not Trigger the Contested Liability Exception to the Discharge-of-Indebtedness Income Rule: Preslar v. Commissioner

In Preslar v. Commissioner, the Tenth Circuit held that the contested liability exception to discharge-of-indebtedness income does not apply when a good faith dispute concerns only liability for the debt. Under the contested liability exception a taxpayer debtor who disputes in good faith the original amount of debt may, upon settlement or judgment of the claim...

Vehicle Service Contract Price Includable and Administrator's Fees Deductible in Year of Contract: Johnson v. Commissioner

In Johnson v. Commissioner, the Eighth Circuit affirmed a Tax Court holding that accrual-method car dealerships must report as gross income the escrowed portion of purchase payments made for multiyear vehicle service contracts. The Eighth Circuit also agreed with the Tax Court that investment income from the escrowed amounts was taxable in the year earned. ...