Sometimes Unguided (or Maybe Misguided) Economic Substance Guidance

摘要

This article discusses newly issued guidance about key issues in Section 7701 (o), the codification of the economic substance doctrine, and the associated penalty provision in Section 6662(b). In particular, Notice 2014-58 discusses the meaning of the statutory terms "transaction" and "similar rule of law." Although guidance about the meaning of key terms and concepts is always welcome, the new notice, which amplifies Notice 2010-62 (also discussed and criticized in the article), is not as helpful as it might have been.