Volume 53, No. 1 - Fall 1999

Articles

Business Purpose: The Assault upon the Citadel

Robert Thornton Smith

The status of the business purpose, or economic substance, doctrine (the "Economic Substance Doctrine") is solidly entrenched, without the slightest suggestion in judicial opinions that it is ill-founded. This doctrine plays a central role in the recent heightened focus on corporate tax shelters and under President Clinton's tax reform proposals. ...

Rethinking Deferential Review of Tax Court Decisions

David F. Shores

Uniformity is of critical importance to federal income taxation. Fundamental fairness requires that a unified system of law provide similar treatment for similar things. So, under the federal income tax system, income realized by a resident of California ought to be taxed in the same way as income realized by a resident of Maine. ...

Why Can't We All Just Get Along: Finding Consistent Solutions to the Treatment of Derivatives and Other Problems

Willard B. Taylor and Diana L. Wollman

Some of the day-to-day complexity in the tax law results from the accretion over a period of years of different answers to essentially similar problems. In part this may simply be the product of a compartmentalized Service in which different people deal with aspects of the same issue, depending on whether the aspect is "foreign" or "domestic" or otherwise pigeon-holed...

Publicly-Traded Partnerships and Unrelated Business Taxable Income

Johnny Rex Buckles

Publicly-traded partnerships have become a common vehicle for attracting a variety of investors, large and small. Interests in PTPs offer many of the same benefits to investors as shares in corporations, including liquidity, the benefit of expert management, and ease of valuation. Not surprisingly, large organizations exempt from federal income taxation under section 501(a)...

It's a Wonderful Life Insurance Policy: Determining the Correct Theory to Tax the Employee in Employer-Pay-All Equity Split-Dollar Life Insurance Arrangements

Jay Katz

For years, the media tax commentators, and the insurance industry have universally lauded all types of split-dollar life insurance arrangements as a low cost, tax-effective way to provide a taxpayer with tax-favored retirement benefits, charitable giving opportunities, beneficiary survivor income, and estate liquidity. ...

Tax Evidence: A Primer on the Federal Rules of Evidence as Applied by the Tax Court

Joni Larson

The United States Tax Court applies the Federal Rules of Evidence during its proceedings. These rules establish the guidelines the judge will use to determine what testimony and documents will be admissible in evidence. ...

Notes

Non-Payment of Taxes Without Exercise of Ordinary Business Care Justifies Tax Penalties: Fran Corp. v. United States

Andrea E. Battaglini

In Fran Corp. v. United States, the Second Circuit held that financial difficulties faced by a corporate taxpayer may constitute "reasonable cause" and excuse the imposition of penalties for non-payment of trust fund taxes. However, if the taxpayer's claim of financial difficulties is due to a lack of ordinary business care and not undue hardship...

Wife's Elective Share Included in Gross Income under Section 662(a) as Distribution of Estate's DNI to Beneficiary: Brigham v. United States

Kiva Flaster

In Brigham v. United States, the First Circuit held that sections 661 and 662 applied to estate distributions in satisfaction of a widow's elective share, and that the income taxation of the decedent's estate earnings was properly passed on to the widow. In affirming the district court, the First Circuit held that the distributions were not excludable as gifts...

Corporation Cannot Amortize Cost of Term Interests in Partnerships When Shareholders' Remainder Interests Are Funded by Extraordinary Distributions: CGF Industries v. Commissioner

John L. Hynes

In CGF Industries v. Commissioner, the Tax Court held that a taxpayer corporation could not amortize the costs of acquiring term interests in partnerships when the remainder interests were simultaneously acquired by the taxpayer's shareholders, with funds distributed to them by the taxpayer. ...

Recalculation of Disability Retirement Benefits Based on Date of Hire Does Not Alter Section 104(a)(I) Tax Exemption Treatment: Picard v. Commissioner

Charmaine D. Williams

In Picard v. Commissioner, the Ninth Circuit reversed the Tax Court and held that a taxpayer's disability-retirement benefits were excludable under section 104(a)(l) when the amount was recalculated to equal the service-retirement benefit he would have received after twenty-five years of uninterrupted service. ...

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Vol. 53, No. 1 - Fall 1999

The Tax Lawyer, Fall 1999

Articles

Business Purpose: The Assault upon the Citadel

Rethinking Deferential Review of Tax Court Decisions

Why Can't We All Just Get Along: Finding Consistent Solutions to the Treatment of Derivatives and Other Problems

Publicly-Traded Partnerships and Unrelated Business Taxable Income

It's a Wonderful Life Insurance Policy: Determining the Correct Theory to Tax the Employee in Employer-Pay-All Equity Split-Dollar Life Insurance Arrangements

Tax Evidence: A Primer on the Federal Rules of Evidence as Applied by the Tax Court

Notes

Non-Payment of Taxes Without Exercise of Ordinary Business Care Justifies Tax Penalties: Fran Corp. v. United States

Wife's Elective Share Included in Gross Income under Section 662(a) as Distribution of Estate's DNI to Beneficiary: Brigham v. United States

Corporation Cannot Amortize Cost of Term Interests in Partnerships When Shareholders' Remainder Interests Are Funded by Extraordinary Distributions: CGF Industries v. Commissioner

Recalculation of Disability Retirement Benefits Based on Date of Hire Does Not Alter Section 104(a)(I) Tax Exemption Treatment: Picard v. Commissioner

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Vol. 53, No. 1 - Fall 1999

The Tax Lawyer, Fall 1999

Articles

Business Purpose: The Assault upon the Citadel

Rethinking Deferential Review of Tax Court Decisions

Why Can't We All Just Get Along: Finding Consistent Solutions to the Treatment of Derivatives and Other Problems

Publicly-Traded Partnerships and Unrelated Business Taxable Income

It's a Wonderful Life Insurance Policy: Determining the Correct Theory to Tax the Employee in Employer-Pay-All Equity Split-Dollar Life Insurance Arrangements

Tax Evidence: A Primer on the Federal Rules of Evidence as Applied by the Tax Court

Notes

Non-Payment of Taxes Without Exercise of Ordinary Business Care Justifies Tax Penalties: Fran Corp. v. United States

Wife's Elective Share Included in Gross Income under Section 662(a) as Distribution of Estate's DNI to Beneficiary: Brigham v. United States

Corporation Cannot Amortize Cost of Term Interests in Partnerships When Shareholders' Remainder Interests Are Funded by Extraordinary Distributions: CGF Industries v. Commissioner

Recalculation of Disability Retirement Benefits Based on Date of Hire Does Not Alter Section 104(a)(I) Tax Exemption Treatment: Picard v. Commissioner

The Tax Lawyer

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