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Tax Court Provides Color on “For Cause” Termination Under Code Section 83

Our tax law colleague, Jonathan Talansky, discusses a recent tax court decision discussing that dreaded concept of “substantial risk of forfeiture” under section 83 of the Internal Revenue Code. As Jonathan writes, this case, Austin v. Commissioner, serves as a warning to taxpayers to make sure that their employment and employment-related agreements are drafted carefully, and that self-serving language in those agreements that track the applicable tax regulations will not always hold sway when weighed against the substance of the arrangement.

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