1. column
  2. TAX MATTERS

Counting Escrows

Please note: This item is from our archives and was published in 2007. It is provided for historical reference. The content may be out of date and links may no longer function.

Related

TOPICS

The First Circuit Court of Appeals has upheld the Tax Court in Burke v. Commissioner , 99 AFTR 2d 2007-941. In so doing, the courts underscored the IRS’s position that distributed income from a partnership must be recognized as taxable income even when it is held in escrow by the partners because of a legal dispute. For a description of the case, see “ Tax Matters,” JofA , May 06, page 82.