This Comment critiques two recent decisions, Hardee v. United States and Dickman v. Commissioner, in which the IRS successfully challenged the favorable income and gift tax treatment accorded interest-free loans. The author examines the history of the interest-free loan cases and the various interpretations of the Internal Revenue Code. The author also examines the favorable precedents in Dean v. Commissioner and Crown v. Commissioner. The author concludes that, although the IRS' position that interest-free loans are taxable events may be logically defensible, the Hardee and Dickman decisions are unlikely to undermine the precedents established in Dean and Crown.
Thomas A. Dombrowski,
Successful I.R.S. Challenges to Dean and Crown: An Uncertain Future for Interest-Free Loans?,
San Diego L. Rev.
Available at: https://digital.sandiego.edu/sdlr/vol20/iss4/14