Economic Substance Doctrine

127 Florida cases classified under this topic · sorted by citation count · browse and sort

• Goldberg v. United States
  789 F.2d 1341· 9th Cir.· 1986-05-14 ·cited 10×
  The court held that the claimed interest deduction was properly disallowed because the underlying transactions lacked economic substance and were shams undertaken for tax reduction purposes.
• John W. Barnard & June W. Barnard v. Commissioner OF Internal Revenue
  731 F.2d 230· 4th Cir.· 1984-04-05 ·cited 10×
  The court affirmed the Tax Court's decision, holding that the purported tax shelter was a sham lacking economic substance and profit motive, and the nonrecourse note was not a genuine liability.
• Salley v. Commissioner OF Internal Revenue
  464 F.2d 479· 5th Cir.· 1972-07-24 ·cited 10×
  The court held that the taxpayers' purported interest payments on loans from their controlled insurance company were not deductible because the transactions lacked economic substance and a business purpose.
• Goldman v. United States
  403 F.2d 776· 10th Cir.· 1968-11-20 ·cited 10×
  Interest deductions on life insurance policy loans are not proper if the transactions lack economic substance and do not create bona fide debts.
• United States v. Regan
  937 F.2d 823· 2d Cir.· 1991-06-28 ·cited 8×
  The court held that the district court erred by failing to instruct the jury on the defendants' good faith reliance on their interpretation of 26 U.S.C. § 1058, which was a crucial defense to the tax fraud charges. The court also affirmed convictions related to securities fraud a
• Allen v. Commissioner OF Internal Revenue
  925 F.2d 348· 9th Cir.· 1991-02-06 ·cited 8×
  The court held that the taxpayers could not deduct charitable contributions made with borrowed funds that were part of a circular flow of money among related entities, and that the negligence penalty was properly imposed.
• Hilton v. Commissioner OF Internal Revenue
  671 F.2d 316· 9th Cir.· 1982-03-08 ·cited 8×
  The court affirmed the Tax Court's decision, finding the sale-leaseback transaction lacked economic substance and was distinguishable from Frank Lyon.
• Durand A. Holladay and Blanche F. Holladay v. Commissioner OF Internal Revenue
  649 F.2d 1176· 5th Cir.· 1981-07-09 ·cited 8×
  The court held that the allocation of all joint venture losses to Holladay lacked economic substance and was a sham, and thus he could only claim 50% of the losses.
• Maclin P. Davis, Jr. v. Commissioner OF Internal Revenue
  585 F.2d 807· 6th Cir.· 1978-10-27 ·cited 8×
  The court held that the taxpayers could not deduct losses arising from the ownership and operation of apartment buildings because the transfer and management agreements with their corporations were shams lacking economic substance and business purpose.
• Samuel P. Norton & Est. of Beatrice Norton v. Commissioner OF Internal Revenue
  474 F.2d 608· 9th Cir.· 1973-02-01 ·cited 8×
  The court held that the transactions were shams lacking economic substance and thus disallowed the claimed interest deductions.
• Carola W. Rothschild v. The United States
  407 F.2d 404· Ct. Cl.· 1969-02-14 ·cited 8×
  Interest paid on a loan used for an investment transaction that yields no net pre-tax earnings and provides no economic benefit apart from tax deductions is not deductible under I.R.C. § 163(a).
• Gheen v. Commissioner OF Internal Revenue
  331 F.2d 470· 6th Cir.· 1964-05-08 ·cited 8×
  The court held that claimed interest payments deducted by petitioners did not qualify as 'interest on indebtedness' because petitioners never acquired control of the funds or Treasury notes, thus lacking the use or forbearance of money.
• Roth v. Commissioner OF Internal Revenue
  321 F.2d 607· 9th Cir.· 1963-08-05 ·cited 8×
  The court held that the taxpayer failed to prove the transaction had economic substance, and even if it did, the payments were attributable to unrealized receivables, thus not eligible for capital gains treatment.
• Eisenberg v. Commissioner of Internal Revenue
  161 F.2d 506· 3d Cir.· 1947-04-22 ·cited 8×
  The court held that the Tax Court correctly determined that the settlors remained taxable on the partnership income for the years in question because the arrangements did not effect a change in their economic status, and the reformation of the trusts by the state court was not re
• Kipnis v. Bayerische Hypo-Und Vereinsbank, AG
  784 F.3d 771· 11th Cir.· 2015-04-17 ·cited 6×
  Plaintiffs, who participated in a fraudulent CARDS tax shelter scheme promoted by HVB, sued HVB for fraud, breach of fiduciary duty, and related claims nearly 12 years after the transaction terminated. The district court dismissed the complaint as time-barred under Florida's stat
• Bohrer v. Commissioner OF Internal Revenue
  945 F.2d 344· 10th Cir.· 1991-09-19 ·cited 6×
  The court affirmed the Tax Court's decision, holding that the London Metal Exchange (LME) straddle transactions lacked economic substance and were shams, thus the claimed deductions were improper.
• Jonas R. Bryant v. Commissioner OF Internal Revenue
  928 F.2d 745· 6th Cir.· 1991-03-22 ·cited 6×
  The court held that the taxpayer was at risk for the promissory note for the Austin Silver Mine development expenses and that the Summit Gold Mine investment was not a sham, remanding for further profit motive analysis.
• Chase v. Commissioner OF Internal Revenue
  926 F.2d 737· 8th Cir.· 1991-02-22 ·cited 6×
  The court held that the business trusts lacked economic substance and were properly disregarded for tax purposes, and that the taxpayer was liable for a negligence penalty.
• United States v. Iles
  906 F.2d 1122· 6th Cir.· 1990-06-28 ·cited 6×
  The court held that the defendant was not deprived of his Sixth Amendment rights when the district court appointed his retained counsel to represent him at government expense after the attorney identified a conflict of interest and the defendant claimed indigency, as the defendan
• Kielmar v. Commissioner OF Internal Revenue
  884 F.2d 959· 7th Cir.· 1989-08-28 ·cited 6×
  The court held that the taxpayers' London option trades lacked economic substance, and therefore, their losses were not deductible, affirming the Tax Court's decision.
• Gomberg v. Comm'r, Internal Revenue Serv.
  868 F.2d 865· 6th Cir.· 1989-02-28 ·cited 6×
  The court affirmed the Tax Court's decision, upholding the Commissioner's disallowance of the tax deduction and assessment of penalties.
• Paccar v. Comm'r Internal Revenue Serv.
  849 F.2d 393· 9th Cir.· 1988-06-09 ·cited 6×
  The court held that the transfer of inventory parts to Sajac was not a bona fide sale for tax purposes because Paccar retained sufficient control over the inventory, and thus, Paccar could not claim inventory losses.
• Marathon OIL Co. v. Commissioner OF Internal Revenue
  838 F.2d 1114· 10th Cir.· 1987-11-09 ·cited 6×
  The court affirmed the Tax Court's denial of deductions for interest and redemption premiums paid to Husky Canada, and affirmed the Tax Court's decision on the withholding issue. The court also affirmed the Tax Court's allowance of deductions for intangible drilling costs and inv
• Ferris F. and Mary Ann S. Hamilton v. The United States
  687 F.2d 408· Ct. Cl.· 1982-08-25 ·cited 6×
  The court held that the partnership agreements had economic substance and rejected the IRS's 'loan' theory, granting plaintiffs' motion for partial summary judgment.
• Falkoff v. Commissioner OF Internal Revenue
  604 F.2d 1045· 7th Cir.· 1979-08-30 ·cited 6×
  The court held that a corporation's distribution of funds borrowed against its own assets, even without current earnings and profits, is not a taxable dividend to the shareholder if the shareholder is not personally liable for the loan.
• Weisbart v. Commissioner OF Internal Revenue
  564 F.2d 34· 10th Cir.· 1977-10-31 ·cited 6×
  The court held that the taxpayer could not deduct feed expenses in 1968 because the transaction lacked economic substance and did not constitute a genuine payment.
• Frank Lyon Co. v. United States
  536 F.2d 746· 8th Cir.· 1976-05-26 ·cited 6×
  The court held that the taxpayer did not possess sufficient genuine interests in the property to be considered its owner for tax purposes, despite the transaction being labeled a sale-leaseback.
• First R.R. & Banking Co. OF Ga. v. United States
  514 F.2d 675· 5th Cir.· 1975-06-11 ·cited 6×
  The court held that a reinsurance treaty did not effectively transfer risk and reserves, thus the income of the sub-subsidiary could not be excluded from the consolidated return.
• Lewis & Taylor, Inc. v. Commissioner OF Internal Revenue
  447 F.2d 1074· 9th Cir.· 1971-08-18 ·cited 6×
  The court held that a corporation could deduct post-mortem payments to a deceased employee's estate as compensation, even if part of a stock repurchase agreement, if the transaction had economic substance and was realistically valued.
• Miss. Valley Portland Cement Co. v. United States
  408 F.2d 827· 5th Cir.· 1969-03-14 ·cited 6×
  Distributions of net profits by a cooperative to its shareholders, where shareholders did not physically handle the product and acted primarily as investors, are not deductible patronage dividends but are taxable corporate dividends.
• Cahn v. Commissioner OF Internal Revenue
  358 F.2d 492· 9th Cir.· 1966-04-04 ·cited 6×
  The dissenting judge would have allowed a partial deduction for interest paid on a loan used to purchase both treasury notes and corporate securities.
• Nat'l Lead Co. v. Commissioner OF Internal Revenue
  336 F.2d 134· 2d Cir.· 1964-09-01 ·cited 6×
  The court held that a taxpayer could revoke an election to use LIFO inventory provisions if the revocation occurred within the period set by regulations, even if the initial election was stated as irrevocable. The court also held that a purported loss from a currency exchange on
• Salley v. Commissioner OF Internal Revenue
  319 F.2d 847· 5th Cir.· 1963-07-03 ·cited 6×
  The court held that interest payments on loans for annuity policies were not deductible as 'interest on indebtedness' because the transactions lacked economic substance.
• Doyle v. Commissioner OF Internal Revenue
  286 F.2d 654· 7th Cir.· 1961-02-08 ·cited 6×
  The court held that the Tax Court erred in disallowing a capital loss deduction based on a strained interpretation of the wash sale provisions and that the transaction did not lack economic substance.
• Smith v. Westover
  237 F.2d 201· 9th Cir.· 1956-07-23 ·cited 6×
  The court held that the trial court correctly found that the partnership lacked independent economic substance and was not a valid taxable entity, affirming the denial of the tax refund.
• Woodward v. United States
  208 F.2d 893· 8th Cir.· 1953-12-08 ·cited 6×
  Interest payments on promissory notes executed by a taxpayer to his wife for the repurchase of life insurance policies, where the transaction lacked economic reality and was primarily for familial protection rather than a genuine debt, are not deductible as interest on indebtedne
• Hilary P. Gardner v. Commissioner OF Internal Revenue
  954 F.2d 836· 2d Cir.· 1992-01-22 ·cited 4×
  Commodities straddle transactions that lack economic substance are not deductible, even if entered into by a commodities dealer, as Section 108(b) does not override the economic substance doctrine.
• Smith v. Commissioner OF Internal Revenue
  937 F.2d 1089· 6th Cir.· 1991-06-27 ·cited 4×
  The Tax Court's findings that the partnerships were not engaged in for profit and that the transaction was a sham are not clearly erroneous and should be affirmed.
• Agro Sci. Co. v. Commissioner OF Internal Revenue
  934 F.2d 573· 5th Cir.· 1991-03-25 ·cited 4×
  The court held that the research notes lacked economic substance and the partnerships lacked a bona fide profit motive, thus disallowing the deductions.
• Fed. Nat'l Mortg. Ass'n v. Commissioner OF Internal Revenue
  896 F.2d 580· D.C. Cir.· 1990-02-20 ·cited 4×
  The court affirmed the Tax Court's decision, holding that FNMA could recognize losses from Concurrent Mortgage Sales (CMS) transactions but not from Resale/Refinance transactions.
• Mapco Inc. v. The United States
  556 F.2d 1107· Ct. Cl.· 1977-06-15 ·cited 4×
  The court held that the assignment of future pipeline revenues was not a bona fide sale for tax purposes, but rather a loan, and that damage payments made during pipeline construction were part of the cost of constructing the pipelines, qualifying for investment credit.
• Ginsburg v. United States
  17 F.4th 78· 11th Cir.· 2021-10-26 ·cited 3×
  A partner must exhaust the issue of IRS supervisory approval for penalties with the Service before filing a refund lawsuit and must raise it during partnership-level proceedings, not partner-level proceedings.
• Illes v. Commissioner OF Internal Revenue
  982 F.2d 163· 6th Cir.· 1992-09-21 ·cited 3×
  The court held that a tax shelter investment lacking economic substance cannot form the basis for deductions, regardless of the taxpayer's subjective profit motive, and affirmed additions to tax for negligence, valuation overstatement, and increased interest.
• Howard v. Commissioner OF Internal Revenue
  931 F.2d 578· 9th Cir.· 1991-04-26 ·cited 3×
  The court held that taxpayers who entered into sham transactions for tax benefits, without a primary profit motive, are liable for deficiencies, negligence penalties, and increased interest, even if they relied on financial advisors without providing evidence of the advice receiv
• Raghunathan Sarma v. Commissioner of Internal Revenue
  45 F.4th 1312· 11th Cir.· 2022-08-19 ·cited 2×
  The court held that a small partnership's outside basis in a TEFRA partnership is an affected item, making the IRS's notice of deficiency timely.
• United States v. H.J. "Mickey" Sallee
  984 F.2d 643· 5th Cir.· 1993-02-16 ·cited 2×
  The court held that sufficient evidence existed for a rational jury to find that the defendant willfully failed to report taxable income, affirming his conviction.
• Upham v. Commissioner OF Internal Revenue
  923 F.2d 1328· 8th Cir.· 1991-01-24 ·cited 2×
  The court held that the partnership did not acquire substantial ownership of the film, but rather a contractual right to share in exploitation proceeds, and thus was not entitled to the claimed deductions and investment tax credit.
• Shirar v. Comm'r Internal Revenue Serv.
  916 F.2d 1414· 9th Cir.· 1990-10-16 ·cited 2×
  Interest paid on loans against the cash value of a life insurance policy is deductible if the policy has economic substance and the loan transactions are not shams, even if the policy is surrendered early due to changes in tax law.
• United States v. Campbell
  897 F.2d 1317· 5th Cir.· 1990-03-27 ·cited 2×
  The court held that the promoter's misrepresentations regarding the economic substance of Brazilian currency notes and the value of tax shelter investments violated IRS Code Section 6700, justifying an injunction, but modified the injunction's duration for affirmative obligations
• Merryman v. Commissioner OF Internal Revenue
  873 F.2d 879· 5th Cir.· 1989-05-30 ·cited 2×
  The dissenting judge believes the Tax Court erred in finding the partnership lacked economic substance.