Tax Reports 2001

Tax Report and Letter 1001 
"Report Responding to Notice 2001-44 on the Timing of Income and Loss from Swaps Providing for Contingent Payments" Proposed method for timing of income inclusions and deductions from notational principal contracts ("swaps") that call for contingent payments ("contingent swaps").

Tax Report and Letter 1000 
Report on deductibility of punitive damages comparing conflicting goals of providing deterrence of wrongful conduct and the application of the Federal income tax to net income.

Tax Report 999 
Letter to Congressional Tax Writing Leaders commenting upon pending Tax Shelter deterrent legislation.

Tax Report 998 
Letter to Treasury Officials commenting upon modifications to Temporary Regulations governing tax shelter disclosure, registration and listing requirements.

Tax Report and Letter 997 
The Straddle Rules under Internal Revenue Code Sections 1092 and 263(g) would (i) provide rules for determining when and into what property certain interest and carrying costs incurred in connection with straddle positions must be capitalized; (ii) provide that certain asset-linked debt instruments may constitute straddle positions and (iii) modify the exception to the straddle rules for "qualified covered call" options. The report discusses each of these issues but focuses its principal attention on the capitalization regime under Code section 263(g).

Tax Report and Letter 996 
Analyzes objectives and ramifications of proposed bill that would exclude first $1,000 of capital gains each year, permit deduction of 50% of net capital gains above exclusion amount, shorten long-term holding period to six months, increase deduction of capital losses against ordinary income from $3,000 to $10,000 and index exclusion of gain on sale of principal residence. 7/20/01 report 8/23/01 letter

Tax Report and Letter 995 
Comments upon proposed Treasury Regulations amending Circular 230 governing practice before the Treasury Department and the Internal Revenue Service. July 25, 2001.

Tax Report and Letter 994 
Report and Transmittal Letter suggesting improvements to the Passive Foreign Investment Company Regulations to prevent the inadvertent classification of foreign corporations engaged in the conduct of active businesses as PFICs. May 22, 2001.

Tax Report 993 
Letter to New York City Department of Finance commenting favorably upon the draft Statement of Audit Procedures designed to eliminate the automatic assertion of penalties in all cases where deficiencies are asserted. Dated May 21, 2001

Tax Report 992 
Letter to Congress commenting upon HR656 and S 336 permitting taxpayers with average receipts of less than $5 million to use the cash method of accounting even where inventories and receivables are involved. The Tax Section applauds the simplification achieved but expresses concern that the legislation not provide a path to "game" the system through tax avoiding timing of purchases, sales, payments and receipts. Dated April 27, 2001.

Tax Report and Letter 991 
Comments on Revised Proposed Treasury Regulations Section 1.355-7, implementing Code Section 355(e). Dated April 10, 2001.

Tax Report and Letter 990 
Prepaid Forward Contracts -- Taxation of parties to contracts calling for the delivery of property at a specified future date, with payment for that purchase being made at the time of contract. Dated March 26, 2001

Tax Report 989 
Letter urging Congress to provide full funding for the Internal Revenue Service to enable it to perform all its essential functions, including adequate audit coverage Dated March 2, 2001.

Tax Letter 988 
Letter expressing the Tax Section's concern with the significant reduction in recent years in the audit rate by the Internal Revenue Service and the reduction in the overall number of Revenue Agents and Tax Auditors.

Tax Letter 987 
Tax Fairness Act - Robert H. Scarborough Dated January 23, 2001.

Tax Report 986 
Letter dated January 16, 2001 to Hon. Stuart L. Brown, Chief Counsel, Internal Revenue Service and Eric Solomon, Esq., Deputy Assistant Secretary (Tax Policy), Treasury Department, from Robert H. Scarborough regarding Business Plan for 2001