Economic Substance

IRS Guidance 

LB&I Directives

Guidance for Examiners and Managers on the Codified Economic Substance Doctrine and Related Penalties (July 15, 2011)

Notices

Chief Counsel Notice 2012-008: Coordination Procedures for Economic Substance Doctrine and Related Penalties
(April 3, 2012)

Notice 2010-62: Interim Guidance under the Codification of the Economic Substance Doctrine and Related Provisions in the Health Care and Education Reconciliation Act of 2010 (September 13, 2010)

Legislation

111th Congress

JCX-18-10: Joint Committee on Taxation Technical Explanation Of The Revenue Provisions Of The “Reconciliation Act Of 2010,” As Amended, In Combination With The “Patient Protection And Affordable Care Act” (March 21, 2010)
**Economic Substance discussion in Footnote 344

H.R. 4872, Health Care and Education Reconciliation Act of 2010
Approved March 25, 2010

Section 1409 of H.R. 4872, Codification of Economic Substance Doctrine

Previous Bills

H.R. 4213, American Workers, State, and Business Relief Act of 2010
Substitute Amendment S.AMDT.3336 Introduced March 1, 2010

Cosponsors (None)      More information

JCX-11-10: Joint Committee on Taxation Technical Explanation of the Revenue Provisions Contained in the "American Workers, State and Business Relief Act of 2010," As Passed by the Senate on March 10, 2010 (March 11, 2010)

Press Release: Baucus, Reid Introduce Package to Restore Aid for Out-of-Work Americans, Improve Tax Certainty for Families, Businesses to Bolster Job Creation (March 1, 2010) 

Senate Republican Policy Committee Summary of the American Workers, State, and Business Relief Act (March 1, 2010)

DRAFT of Senate Jobs Bill
As of February 9, 2010

H.R. 3962, Affordable Health Care for America Act
Introduced October 29, 2009 by Rep. John Dingell; Passed by the House November 7, 2009
Among other things, would codify the economic substance doctrine to offset the cost of health care reform.  

Sec. 562 of H.R. 3962 Codification of Economic Substance Doctrine

JCX-53-09: Estimated Revenue Effects Of The Revenue Provisions Contained In H.R. 3962, The “Affordable Health Care For America Act,” Scheduled For Consideration By The House Of Representatives (November 7, 2009)

JCX-52-09: A Description of a Modification to the Revenue Provisions of the Manager’s Amendment to H.R. 3962 (November 7, 2009)

Cosponsors     More information

H.R. 3200, America's Affordable Health Choices Act of 2009
Introduced July, 14, 2009 by Reps. Dingell, Rangel, Waxman, Miller, Stark, Pallone and Andrews
Among other things, would codify the economic substance doctrine to offset the cost of health care reform.  

Sec. 452 of H.R. 3200 Codification of Economic Substance Doctrine

House Committee on Education and Labor's Summary of H.R. 3200

Excerpt from Joint Committee on Taxation: Description Of The Revenue Provisions Of H.R. 3200, The “America’s Affordable Health Choices Act Of 2009” (July 14, 2009)

*Footnote 94 from JCT explanation, JCX-30—09

Joint Committee on Taxation: Estimated Effects Of The Revenue Provisions Of H.R. 3200, The “America’s Affordable Health Choices Act Of 2009” (July 14, 2009)

H.R. 2345 Abusive Tax Shelter Shutdown and Taxpayer Accountability Act of 2007
May 16, 2007

S. 1565 Tax Shelter and Tax Haven Reform Act of 2005
July 29, 2005

President's Proposed Budget

Proposed Budget of the United States Government, Fiscal Year 2011

JCX-7-10R: Estimated Budget Effects Of The Revenue Provisions Contained In The President's Fiscal Year 2011 Budget Proposal (March 15, 2010)

JCX-7-10: Estimated Revenue Effects Of The Revenue Provisions Contained In The Presidents Fiscal Year 2011 Budget (March 08, 2010)

Other Resources 

Reports, Letters and Testimony

Letter to IRS Re: LB&I Directive and Guidance on Economic Substance Doctrine Codification (September 7, 2011)

Historic Tax Credit Coalition Letter to Treasury Acting Assistant Secretary for Tax Policy Michael Mundaca Seeking Guidance Related to the Codification of Economic Substance and Historic Tax Credits (July 23, 2010)

LIHTC Working Group Letter Seeking Guidance Related to Codification of Economic Substance and Low-Income Housing Tax Credits (October 27, 2010)

ABA Tax Section Comments on Notice 2010-62 Regarding the Implementation of the Economic Substance Legislation (January 18, 2010)

NMTC Coalition Letter to Acting Assistant Secretary for Tax Policy Michael Mundaca Regarding the Codification of the Economic Substance Doctrine and the NMTC (January 15, 2010)

Joint Committee on Taxation Description Of Revenue Provisions Contained In The President’s Fiscal Year 2010 Budget Proposal
Part Two: Business Tax Provisions

(September 9, 2009)

Ernst & Young Letter to Eric Solomon/IRS Regarding New Markets Tax Credit Investments and Profit Motivation
(October 2, 2006)

New Markets Tax Credit And Economic Substance Doctrine: Senate Floor Colloguy
(May 11, 2004)

NMTC Coalition Comment Letter on Revised Temporary NMTC Regulations
New Markets Tax Credit Coalition (May 10, 2004)

Podcast: Novogradac Report on Tax Credits

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Download archived podcasts to hear Michael J. Novogradac, CPA, discuss the development of various proposals involving the codification of the economic substance doctrine. The topics for each week are named in the title of that week's podcast and listed on the Tax Credit Tuesday Podcast home page.

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