Personal Holding Companies and the Revenue Act of 1964

By 1964, many years had elapsed since significant changes were made in the federal income tax treatment of so-called personal holding companies. For that reason alone, any amendments contained in the Revenue Act of 1964 that dealt with personal holding companies would have deserved attention. But the fact is that the changes made by the 1964 Act are so powerful in their thrust that they require the most careful kind of study by every practitioner charged with advising closely held corporations. Since the new provisions are rather complicated in nature, such a study cannot lead to a full understanding of their scope and effect without a proper appreciation of the reasons behind their enactment

Constitutional Law - Due Process - Denial of Admission to the Bar Based on Unwarranted Inferences of Bad Moral Character

Power over admission to the bar has long been vested in the judiciary of each state. While the legislature may prescribe certain standards, the state court alone is responsible for the determination of those qualified for the practice of law within its jurisdiction. The application of these standards often demands the exercise of meticulous judgment by the court in reaching its conclusion as to an applicant\u27s fitness. Where, on the evidence or lack of evidence presented, the court finds that it cannot in good conscience grant its approval, the candidate is denied admission. To the extent that such a denial appears unjustified, serious constitutional questions may be raised. Is the state\u27s determination to be final, based on a freedom to select its own bar? Or should the United States Supreme Court review this determination in order to ascertain whether the applicant\u27s exclusion was arbitrary in violation of the Fourteenth Amendment to the Constitution? Two recent cases decided by the Supreme Court, Schware v. Board of Bar Examiners of New Mexico, and Konigsberg v. State Bar of California, have shown that a denial predicated on unwarranted inferences and conclusions, especially with regard to past affiliation with the Communist Party, will be treated as offensive to due process of law under the Fourteenth Amendment. The sweeping language of these opinions appears to indicate that this constitutional protection to be afforded an individual will by no means be limited to candidates for admission to the bar

L. Hart Wright: Mentor and Friend

A Tribute to L. Hart Wrigh

Taxation - Federal Income Tax - Proceeds from Cancellation of Contract Treated as Ordinary Income

Taxpayer had the exclusive right for a period of ten years to purchase all the coal mined by the operator of certain mines. In 1949 the operator paid taxpayer $500,000 as consideration for the complete acquisition of taxpayer\u27s right and interest in the purchase agreement. Taxpayer reported this sum as a long-term capital gain. The Commissioner claimed that the amount received was ordinary income. The Tax Court upheld taxpayer\u27s contention, indicating that the transaction had resulted in the sale or exchange of a capital asset. On appeal by the Commissioner, held, reversed, one justice dissenting. This transaction was more in the nature of an extinguishment of taxpayer\u27s right than of its sale or transfer. The amount received was thus ordinary income and not capital gain. Commissioner v. Pittston Co., (2d Cir. 1958) 252 -F. (2d) 344

Future Interests - Validity of Shifting Executory Interest on Event Certain to Occur

Testator\u27s will provided for alternative devises of his business real estate. If employees of the business exercised an option granted by the will to purchase his partnership interest within eight months after his death, the real estate was to pass to a bank in trust for his daughter and her children. If the option was not exercised within this period, the real estate was to pass to his widow. A residuary clause divided the remainder of his estate equally between his widow, absolutely, and the named bank as trustee. After passage of the eight-month period, testator\u27s daughter sought a declaration that she was owner in fee of the land in question. She asserted that, as testator\u27s sole heir at law, the real estate passed to her as intestate property during the eight-month interim. Since performance of the conditions relating to the exercise of the option had been rendered impossible through actions by the widow, neither of the alternative devises in the will could take effect and title consequently remained in her absolutely. The probate department of the Circuit Court of Multnomah County rejected the daughter\u27s contention and determined that title to the property had now vested in the widow. On appeal, held, affirmed. The land did not pass temporarily as intestate property, but passed under the residuary clause as a fee simple defeasible subject to alternative executory devises, one of which was certain to take effect at the end of the eight-month period. Title was to pass absolutely to the widow if for any reason the option was not exercised by the employees, even though one of the reasons was impossibility of performance. Estate of Palmer, (Ore. 1957) 315 P. (2d) 164

Impact of Recent Tax Stimulants on Modest Enterprises

The recession year 1958 found Congress in a mood to aid and encourage small business through more favorable tax treatment. The thrust of the ensuing legislation touched in varying degrees the whole life span of a modest enterprise, from organization through liquidation. The focus here, however, will be confined to a consideration of the practical impact of the recent statutory changes on the organizational and ordinary operational phases of such a business

Embezzled Funds as Taxable Income: A Study in Judicial Footwork

The James case might not be worthy of extensive comment if its only significance rested on the decision that embezzled funds constitute taxable income in the year of misappropriation. But close analysis of the five separate opinions that were written indicates that James may have considerable significance beyond its precise holding

Paul G. Kauper: As Remembered by His Students

A Tribute to Paul G. Kaupe

Mechanisms of increased risk of tumorigenesis in Atm and Brca1 double heterozygosity

<p>Abstract</p> <p>Background</p> <p>Both epidemiological and experimental studies suggest that heterozygosity for a single gene is linked with tumorigenesis and heterozygosity for two genes increases the risk of tumor incidence. Our previous work has demonstrated that <it>Atm/Brca1 </it>double heterozygosity leads to higher cell transformation rate than single heterozygosity. However, the underlying mechanisms have not been fully understood yet. In the present study, a series of pathways were investigated to clarify the possible mechanisms of increased risk of tumorigenesis in <it>Atm </it>and <it>Brca1 </it>heterozygosity.</p> <p>Methods</p> <p>Wild type cells, <it>Atm </it>or <it>Brca1 </it>single heterozygous cells, and <it>Atm</it>/<it>Brca1 </it>double heterozygous cells were used to investigate DNA damage and repair, cell cycle, micronuclei, and cell transformation after photon irradiation.</p> <p>Results</p> <p>Remarkable high transformation frequency was confirmed in <it>Atm</it>/<it>Brca1 </it>double heterozygous cells compared to wild type cells. It was observed that delayed DNA damage recognition, disturbed cell cycle checkpoint, incomplete DNA repair, and increased genomic instability were involved in the biological networks. Haploinsufficiency of either ATM or BRCA1 negatively impacts these pathways.</p> <p>Conclusions</p> <p>The quantity of critical proteins such as ATM and BRCA1 plays an important role in determination of the fate of cells exposed to ionizing radiation and double heterozygosity increases the risk of tumorigenesis. These findings also benefit understanding of the individual susceptibility to tumor initiation.</p

Thermal stability of Mg_2Si_(0.4)Sn_(0.6) in inert gases and atomic-layer-deposited Al_2O_3 thin film as a protective coating

Mg_2Si_(1−x)Sn_x solid solutions are promising thermoelectric materials to be applied in vehicle waste-heat recovery. Their thermal stability issue, however, needs to be addressed before the materials can be applied in practical thermoelectric devices. In this work, we studied the crystal structure and chemical composition of Mg_2Si_(1−x)Sn_x in inert gas atmosphere up to 823 K. We found that the sample was oxidized even in high-purity inert gases. Although no obvious structural change has been found in the slightly oxidized sample, carrier concentration decreased significantly since oxidation creates Mg vacancies in the lattice. We demonstrated that an atomic-layer deposited Al_2O_3 coating can effectively protect Mg_2Si_(1−x)Sn_x from oxidation in inert gases and even in air. In addition, this Al_2O_3 thin film also provides in situ protection to the Sb-doped Mg_2Si_(1−x)Sn_x samples during the laser-flash measurement and therefore eliminates the measurement error that occurs in uncoated samples as a result of sample oxidation and graphite exfoliation issues