Constructive Dividends and the Substance Over Form Doctrine

Jack Townsend has an excellent post today (all of his posts are excellent) about C corporation constructive dividends. In United States v. Ellefsen, ___ F.3d ___, 2011 U.S. App. LEXIS 18684 (8th Cir. 2011), the appeals court addressed the issue of whether the IRS properly reclassified payments made by a C corporation to a trust, of which… Continue reading Constructive Dividends and the Substance Over Form Doctrine

David Cay Johnston Reports More Government Waste

Courtesy of Paul Caron in Johnston: Your Tax Dollars At Work, Unconstitutionally: Reuters, A Gift, From NY to Abu Dhabi, by David Cay Johnston: How does being taxed to give money to the oil-rich kingdom of Abu Dhabi and its hereditary ruler strike you?  The cost, if you live in New York State, comes to about $1.4 billion, or roughly… Continue reading David Cay Johnston Reports More Government Waste

A Case for the Corporate Income Tax?

My old blogging friend, Joe Kristan, of Roth & Company has published his “Fight the Power” edition of Tax Roundup. In this case, the power to be fought isn’t the federal government, but private corporations. Fight the Power!  Tax Analysts’ Joseph Thorndike defends the corporation income tax as a bulwark against corporate power ($link): “Popular fondness for taxing… Continue reading A Case for the Corporate Income Tax?