Economic Substance Doctrine 2010 (Audio Only)

On March 30, 2010, the Health Care and Education Affordability Reconciliation Act of 2010 added Section 7701(o) to the Internal Revenue Code. Section 7701(o) codifies the judicially created economic substance doctrine (ESD) and requires that, for any transaction to which ESD is relevant, the transaction must change in a meaningful way (apart from Federal income tax effects) the taxpayer's economic position and the taxpayer must have a “substantial purpose” (apart from Federal income tax effects) for entering into such transaction. Significantly, a strict liability penalty may be imposed for any understatement associated with the failure to satisfy ESD.
In this program, a highly experienced panel of tax professionals:
* Review and discuss significant aspects of Section 7701(o) and the related penalty provisions;
*Discuss the application of the statutory language to common transactions;
* Discuss the views of the IRS Chief Counsel's office and the extent to which taxpayers can expect guidance;
* Discuss how the codification may affect the advice given by advisors and associated ethical obligations; and
* Discuss the circumstances under which penalties will be imposed.
Program Speakers
Karen Gilbreath Sowell, CPA (Moderator)
Ernst & Young LLP
Washington, DC
William D. Alexander, Esq.
Associate Chief Counsel (Corporate)
Office of Chief Counsel
Internal Revenue Service
Washington, DC
David P. Hariton, Esq.
Sullivan & Cromwell LLP
New York City
Bryan C. Skarlatos, Esq.
Kostelanetz & Fink LLP
New York City
W. Kirk Wallace, Esq.
Skadden, Arps, Slate, Meagher & Flom LLP
New York City
Total MCLE Credits 1.5
Ethics MCLE Credits1.0