Professor Willis argues that the Tax Court's "erroneous deduction exception" to the tax benefit rule is theoretically sound. He maintains that application of the exception sets up a circumstance of adjustment pursuant to the mitigation rules of sections 1311 through 1314. As a result, whenever...

Most tax lawyers and accountants view the Tax Benefit Rule as a Court-created doctrine. They misunderstand. Properly understood, almost all traditional Tax Benefit Rule cases are unnecessary, as they merely apply the traditional basis mechanism.The Supreme Court properly understood this in the...