Tax ControversyOctober 3, 2026
Economic Substance Doctrine After Section 7701(o) Codification
Codification rewrote the doctrine's structure while leaving its most contested question unanswered.
5 stories by Claudette Osei-Mensah
Codification rewrote the doctrine's structure while leaving its most contested question unanswered.
The exemption jumps to $15 million per person, but Congress could cut it again.
The permanent cap on business losses reaching noncorporate taxpayers just dropped sharply.
Knowing which confidence standard applies determines what penalty defenses survive audit.
Courts can no longer simply defer to Treasury's reading of tax code gaps.