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.
