Court Opinion

ID: 9467485
Source: CourtListenerOpinion
Date Created: 2023-08-05 01:50:13.236886+00
Date Added: 2024-06-11T17:40:22.545471
License: Public Domain

CUDAHY, Circuit Judge,
concurring:
I agree with the majority of the full Court and of the panel that the decided cases, with the possible exception of American Financial Corp. v. Commissioner, 72 T.C. 506 (1979), appear to employ the exclusionary aspect of the tax benefit rule only when the items sought to be excluded are asserted to be taxable by means of the inclusionary aspect. This is not in my view the case in which to introduce “flexibility” in a whole new dimension into the tax benefit rule. Cf. First Trust & Savings Bank of Taylorville v. United States, 614 F.2d 1142, 1145 (7th Cir. 1980). When such a case may be presented, however, I do not believe that the existing precedents necessarily constitute a complete bar to extension of the rule in some fashion as an exclusionary mechanism only.