Number: RS22586
Title: The Economic Substance Doctrine: Recent Significant Legal Decisions
Authors: Erika Lunder, American Law Division 
Abstract: The economic substance doctrine is a judicially developed doctrine that has become one of the IRS's primary tools in fighting abusive tax shelters. The doctrine permits transactions lacking in economic substance to be disregarded for tax purposes. In 2006, four significant decisions dealing with the doctrine were issued by U.S. courts of appeals. In the 110th Congress, S. 96 (Export Products Not Jobs Act) has been introduced to codify the doctrine. This report discusses the doctrine's development and the four cases and summarizes the bill.
Pages: 6
Date: January 29, 2007