Deferred Compensation and the Supreme Court
Taxes, Vol. 60, p. 684, 1982
11 Pages Posted: 6 Sep 2009
Date Written: 1982
This article responds to arguments that deferred compensation agreements are an unwarranted form of tax avoidance and that a regrettable dichotomy has arisen between the decisions of the Supreme Court and the lower federal courts in this area. This, however is not true, for the accounting provisions under Section 446(b) provide an adequate means of checking any abuse that may arise in the area of deferred compensation. Lucas v. Earl and United States v. Basye do not negate Supreme Court jurisdiction over either the income tax law or deferred compensation arrangements.
Keywords: Tax Law, Internal Revenue Code Seciton 446(b), Deferred Compensation
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