Home Mutual Insurance Company, Cross v. Commissioner of Internal Revenue, Cross

I agree with the majority of the full Court and of the panel that the decided cases, with the possible exception of American Financial Corp. v. Commissioner, 72 T.C. 506 (1979), appear to employ the exclusionary aspect of the tax benefit rule only when the items sought to be excluded are asserted to be taxable by means of the inclusionary aspect. This is not in my view the case in which to introduce “flexibility” in a whole new dimension into the tax benefit rule. Cf. First Trust & Savings Bank of Taylorville v. United States, 614 F.2d 1142, 1145 (7th Cir. 1980). When such a case may be…