Sometimes Unguided (or Maybe Misguided) Economic Substance Guidance
Journal of Taxation of Investments, Winter 2015, at 27
Posted: 1 Jun 2016
Date Written: May 31, 2016
This article discusses guidance issued in 2014 about key issues in Section 7701(o), the codification (or “clarification”) of the economic substance doctrine, and the associated penalty provision in Section 6662(b). In particular, Notice 2014-58 considered the meaning of the statutory terms “transaction” and “similar rule of law.” Although guidance about the meaning of key terms and concepts is always welcome, the notice, which amplified Notice 2010-62 (also discussed and criticized in the article), was not as helpful as it might have been.
Keywords: Notice 2014-58, Notice 2010-62, economic substance codification, Section 7701(o), transaction, similar rule of law, Section 6662(b)
JEL Classification: K34
Suggested Citation: Suggested Citation