Balch v. Commissioner’s Empirical Analysis

Citation profile

2 federal appellate · 1 state decisions

Most-quoted passages

The sentences later courts lift from this opinion, ranked by how many decisions quote each — the parts of the opinion doing the work. These counts are smaller than the citation total above because most of the 8 citing decisions cite the case generally; a passage count includes only decisions quoting that exact language verbatim.

1. “Example (3). Assume that a disqualified individual is a common law employee of a corporation. A change in control of the corporation occurs, and, pursuant to a formal or informal understanding reached before the change occurs, the individual enters into an employment agreement, consulting agreement, agreement not to compete, or similar arrangement with the acquiring company for a term of 3 years. An amount equal to the value ... of payments to be made under such an agreement is to be treated as contingent on the change in control.”

   3 later decisions quote this exact passage
   e.g. Cline v. Commissioner · Richard G. Cline and Carole J. Cline v. Commissioner of Internal Revenue

2. “We base our finding that American Stores agreed to use its best efforts to employ [the executives] in order to compensate them for the reduction in their severance pay on the undisputed testimony of Messrs. Berrey [Jewel’s general counsel] and Bergeson [American Stores’ senior vice president], and on Mr. Sunday’s [American Stores’ general counsel’s] notes. Mr. Berrey testified that American Stores intended to compensate [the executives] for the reduction in severance pay under the amended severance agreements. Mr. Bergeson testified that he told [the executives] that American Stores intended to use its best efforts to compensate them for the reduction in severance pay under the amended severance agreements. And, according to his notes, Mr. Sunday told [the executives] that American Stores would consider their efforts to make the post-acquisition transition as smooth as possible.”

   2 later decisions quote this exact passage
   e.g. Cline v. Commissioner · Richard G. Cline and Carole J. Cline v. Commissioner of Internal Revenue

3. “Applying petitioners' reasoning, any disqualified individual could avoid taxation of his parachute payment by utilizing such a strategy. For example, a disqualified individual might seek to reduce his severance pay to an amount less than three times his base amount in exchange for the acquiring company's promise to use its best efforts to employ and compensate him after the change in control. Then, after the change in control, to make up for the reduction in his severance pay, the acquiring company could employ the individual for an amount in excess of reasonable compensation, thereby avoiding the adverse tax consequences of sections 280G and 4999.”

   2 later decisions quote this exact passage
   e.g. Cline v. Commissioner · Richard G. Cline and Carole J. Cline v. Commissioner of Internal Revenue