Friday, March 10, 2017

Repetti on Taft v. Bowers

And while we’re on the topic of tax history, James R. Repetti, Boston College Law School, has posted Taft v. Bowers: The Foundation for Non-Recognition Provisions in the Income Tax, which appears in the ACTEC Law Journal 42 (2017): 23-27:
Taft v. Bowers is a Supreme Court decision that is rarely studied in law schools or discussed by scholars. Yet, it is a case of vast significance. In the Taft decision, the Supreme Court confirmed that Congress may create non-recognition exceptions to the income tax that merely defer the recognition of income, rather than permanently exclude it. If the Taft case had been decided differently, it is likely that the number of non-recognition provisions in the Internal Revenue Code ("Code") would be significantly reduced.

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