Paul L. Caron

Saturday, March 22, 2008

Littriello and the Federal Tax Personality of Disregarded LLCs

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.

Scholarship | Permalink

TrackBack URL for this entry:

Listed below are links to weblogs that reference Littriello and the Federal Tax Personality of Disregarded LLCs:

» SMLLCs and Federal Employment Taxes from Unincorporated Business Law Prof Blog
posted by Gary Rosin “when you’re alone you’re alonewhen you’re alone you ain’t nothing but alone” --Bruce Springsteen Early corporate law wrestled with the problem of what the civil law called the corporation sole. Were corporations with a single shar... [Read More]

Tracked on Mar 22, 2008 9:47:56 PM