Codification of Economic Substance Doctrine - Is It an Idea Whose Time has Come and Gone?

An interactive webinar sponsored by Steptoe & Johnson LLP

Congress is considering codification of the economic substance doctrine as part of the farm bill (H.R. 2419) which will go to conference in the near future. Lawmakers have said they would like the farm bill to be reconciled and sent to President Bush by the end of February. The Administration has issued a veto threat, stating: "The economic substance doctrine is a judicial rule that is best left for the courts to apply in appropriate cases." House Ways and Means Committee Chairman Charles Rangel (D-NY) has also introduced an omnibus tax bill (H.R. 3970) which also contains a provision codifying the economic substance doctrine. The application and scope of the economic substance doctrine has recently been considered by courts in Coltec v. United States, 454 F.3d 1340 (Fed. Cir. 2006); H.J. Heinz Co. v. United States, 76 Fed. Cl. 570 (Ct. Fed. Cl. 2007); Jade Trading, LLC v. United States, 2008-1 U.S.T.C. ¶ 50,112 (Ct. Fed. Cl. 2007); and Countryside Limited Partnership v. Commissioner, 95 T.C.M. 1006 (2008).

These legislative developments and recent cases likely will continue to impact transaction planning for years to come.

Speakers:

Donald L. Korb, Chief Counsel, Internal Revenue Service
Fred M. Greenwood III, Assistant General Counsel and Chief Tax Counsel, Ashland Inc.
Arthur L. Bailey, Partner, Steptoe & Johnson LLP
Mark J. Silverman, Partner, Steptoe & Johnson LLP