1986 Article Republished in Tax Notes Today Provides Some Historical Context for Reform Discussions

To commemorate its fortieth anniversary, Tax Notes Today republished a 1986 article by distinguished professor George K. Yin discussing Congress's proposal to repeal the General Utilities doctrine, an idea that was eventually not made part of the Tax Reform Act of 1986.  The General Utilities doctrine, codified in I.R.C. §§ 336-338, provides that a corporation may make liquidating distributions tax-free at the corporate level if it meets the enumerated requirements.  Yin notes that popular support was heavily in favor of repealing the General Utilities doctrine at the time, but he instead lays out several arguments for preserving it.  This perspective is particularly relevant considering the current situation surrounding the proposed Buffett Rule.

See George K. Yin, "General Utilities Repeal: Is Tax Reform Really Going to Pass It By?," Tax Notes Today, 2012 TNT 73-18 (June 16, 1986; republished Mar. 20, 2012).

Posted by Matthew Evan Rappaport, Associate Editor, Wealth Strategies Journal