Saturday, March 22, 2008
Brent M. Johnston (J.D. 2009, Washburn) has published Comment, The Federal Tax Personality of Disregarded LLCs (Littriello v. United States, 484 F.3d 372 (2007)), 47 Washburn L.J. 203 (2007). Here is part of the Introduction:
In Littriello v. United States, the United States Court of Appeals for the Sixth Circuit relied on the Chevron test to uphold the validity of the check-the-box regulations. The court also deferred to the IRS's conclusion that a disregarded entity cannot be the “employer” for employment tax purposes. Accordingly, the court concluded that because the owner of a disregarded LLC is the “employer” of the company's employees, he is directly liable for the company's employment taxes. This comment examines the Sixth Circuit's opinion and analyzes what amount of deference courts should extend to the IRS's position that a disregarded LLC cannot be the “employer” of the LLC's employees. The comment considers relevant Supreme Court opinions, analyzes the statutory definition and regulatory interpretation of the term “person,” addresses the circuits' conflicting interpretations of this term, and discusses relevant authority regarding the role of state law.