PDF by Carter G. Bishop · May-27-2010 · Categories: Lead Articles, Number 3, Print Edition, Volume 43
The 1997 “check-the-box” Regulations replaced the 1960 Kintner corporate resemblance tests, substituting simplicity and certainty for complexity and uncertainty regarding the federal tax classification of unincorporated business entities. The check-the-box Regulations have attracted some criticism. One broad modern critique argues that the regulations fail in several important respects to reach their full promise. While this Article is also critical of the check-the-box Regulations, the approach is different and indeed is based on an issue barely mentioned in the broader modern critique: “it does seem appropriate not to subject the latter type of entity [ordinary trust] to a regime designed to tax businesses.” Because of this conclusion, the issue was not further explored and the critics failed to seriously consider the reasonable alternatives and [...]




