Economic Substance Doctrine

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

• Jolana S. Bradshaw v. The United States
  683 F.2d 365· Ct. Cl.· 1982-06-30 ·cited 2×
  The court held that the transfer of real property to a controlled corporation in exchange for installment obligations was a sale, not a transfer under section 351 or a capital contribution, and that a second controlled corporation's passive investment income did not exceed the st
• Invs. Ins. Agency, Inc. v. Commissioner OF Internal Revenue
  677 F.2d 1328· 9th Cir.· 1982-05-26 ·cited 2×
  The court held that the $130,000 payment was interest, even though it accrued before the debt became unconditional, because the parties intended it as interest and it became legally enforceable.
• Walker v. Commissioner OF Internal Revenue
  544 F.2d 419· 9th Cir.· 1976-10-22 ·cited 2×
  The court held that the dividend distribution was taxable to the seller of the stock, as he was the beneficial owner at the time of the dividend declaration, despite the buyer's control over the corporation.
• Am. Body & Equip. Co. v. United States
  511 F.2d 647· 5th Cir.· 1975-04-16 ·cited 2×
  The judgment for the government is correct and must be affirmed because the taxpayer failed to prove its case regarding genuine indebtedness and business purpose for the borrowing.
• Hutton v. United States
  501 F.2d 1055· 6th Cir.· 1974-07-05 ·cited 2×
  Payments received by taxpayers in retirement of corporate notes are taxable as capital gains, not dividends, when the transaction has a valid business purpose and is not a sham, even if the notes were acquired for less than face value.
• Sumner E. and Barbara P. Brown v. The United States
  396 F.2d 459· Ct. Cl.· 1968-06-14 ·cited 2×
  A purported capital loss from a transaction lacking economic substance and entered into primarily for tax benefits is not deductible under I.R.C. § 165(c)(2).
• Haas v. Commissioner OF Internal Revenue
  248 F.2d 487· 2d Cir.· 1957-10-07 ·cited 2×
• Lukens v. Commissioner OF Internal Revenue
  945 F.2d 92· 5th Cir.· 1991-10-07 ·cited 1×
  The court held that nonrecourse debt incurred for timeshare units lacked economic substance and did not constitute genuine indebtedness, thus disallowing interest deductions and affirming the imposition of penalty interest.
• Gunther v. Morgan, Lewis & Bockius, LLP
  Fla. 2d DCA· 2026-07-08
  The finality accrual rule does not apply to aiding and abetting fraud and breach of fiduciary duty claims against a law firm that facilitated a tax shelter scheme. Once the Federal Circuit determined that the underlying tax shelter lacked economic substance and the partnership st
• Kaylan A. Lewis v. Commissioner of Internal Revenue
  11th Cir.· 2023-07-05
  The Eleventh Circuit affirmed the Tax Court's determination that the IRS properly used deficiency procedures rather than direct assessment procedures when adjusting affected items arising from a sham partnership tax shelter scheme, holding that the phrase "require partner level d
• Acker v. AIG Int'l, Inc.
  398 F. Supp. 2d 1239· S.D. Fla.· 2005-11-08
  The court held that the plaintiffs' state law claims did not necessarily raise a substantial disputed federal issue, and therefore, removal to federal court was improper.
• Pasternak v. Commissioner OF Internal Revenue
  990 F.2d 893· 6th Cir.· 1993-04-08
  The court held that the Tax Court did not err in determining that the master recording leasing transactions lacked economic substance and a profit motive, thus correctly disallowing business expense deductions and tax credits.
• Waters v. Commissioner OF Internal Revenue
  978 F.2d 1310· 2d Cir.· 1992-10-21
  A taxpayer is not considered "at risk" under I.R.C. § 465(b)(4) for amounts protected against loss by arrangements that remove any realistic possibility of economic loss, even if those arrangements are not formal agreements.
• United States v. Bernhard Fred Manko
  979 F.2d 900· 2d Cir.· 1992-10-09
  The court held that while the district court's conduct in questioning witnesses and holding an ex parte conference was improper, it did not deny the defendants a fair trial when viewed in the context of the entire record and jury instructions.
• Hildebrand v. Comm'r Internal Revenue Serv.
  967 F.2d 350· 9th Cir.· 1992-06-26
  The court held that the taxpayers could not deduct interest on nonrecourse debt that lacked economic substance, and affirmed the Tax Court's findings regarding valuation, penalties, and interest.
• In re Gran v. Internal Revenue Serv.
  964 F.2d 822· 8th Cir.· 1992-05-21
  The court held that the purported cattle investment was a sham transaction lacking economic substance, and thus the taxpayers were not entitled to the claimed tax deductions and credits.
• Est. OF Timothy F. Carberry v. Commissioner OF Internal Revenue
  933 F.2d 1124· 2d Cir.· 1991-05-24
  The court held that a special allocation of partnership deductions lacked substantial economic effect and was therefore invalid for tax purposes, and that the penalty interest rate applied to the resulting deficiency.
• Burke v. Commissioner OF Internal Revenue
  929 F.2d 110· 2d Cir.· 1991-04-04
  The court held that while the Tax Court correctly applied the bank deposits method for most income, it overstated the taxpayer's income by including a disallowed charitable contribution carryover in cash expenditures. The court affirmed the damages awarded for filing a frivolous
• Young v. Comm'r Internal Revenue Serv.
  923 F.2d 719· 9th Cir.· 1991-01-16
  The court held that the Tax Court did not err in disallowing the allocation of 75% of partnership losses to a partner because the allocation lacked economic substance.
• Rothstein v. United States
  735 F.2d 704· 2d Cir.· 1984-05-21
  The installment sale of stock by a trust to its grantor was not a 'borrowing' under IRC § 675(3) because it possessed genuine economic substance and was not a sham.
• Dwyer v. United States
  622 F.2d 460· 9th Cir.· 1980-07-02
  The court held that a taxpayer who forgives a debt owed to him by a corporation immediately before its liquidation, where the forgiveness's sole purpose is to avoid taxes, results in the taxpayer realizing ordinary income.
• Ippolito v. Commissioner OF Internal Revenue
  364 F.2d 744· 2d Cir.· 1966-07-22
  The court held that the prepaid interest deduction was properly disallowed because the transaction was a sham lacking economic substance.