Casualty Damage or Destruction Must Occur After Adoption of a Plan of Liquidation to Qualify for Nonrecognition Under Section 337
Casstevens, Earnest C.
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In Central Tablet, the court held, for purposes of nonrecognition of a gain or loss following corporate liquidation under section 337 of the Internal Revenue Code, casualty damage or destruction must occur after the corporation adopts a plan of liquidation. By contrasting Central Tablet with other case law, the author claims Central Tablet illustrates the difficulty of judicial decision making in an area in which Congress has not expressed its intent. The Central Tablet court relied on a combination of congressional intent ground in the legislative history of section 337 to distill any available evidence of Congressional intent. Overall, the author suggests public policy and the general judicial approach to tax questions supports the court’s rationale in Central Tablet.