Tax Alert: Implications of the Codification of the Economic Substance Doctrine

In a recent tax alert, Miller and Chevalier Chartered reports on the codification of the economic substance doctrine as part of the Health Care and Education Reconciliation Act of 2010. The tax alert provides an overview of the doctrine and discusses the practical implications for future tax planning. According to the alert, the statute adopts a conjunctive two-part test, applies only where judicial doctrines would have applied, does not define "transaction," and leaves open the treatment of foreign taxes.