Estate of Lydia G. Maxwell, Deceased First National Bank of Long Island Victor C. McCuaig Jr., Executors v. Commissioner of Internal Revenue

Nearly 60 years ago, in words as true today as they were then, Judge Learned Hand wrote that “[a]ny one may so arrange his affairs that his taxes shall be as low as possible; he is not bound to choose that pattern which will best pay the Treasury; there is not even a patriotic duty to increase one’s taxes.” Helvering v. Gregory, 69 F.2d 809, 810 (2d Cir.1934), aff'd, 293 U.S. 465, 55 S.Ct. 266, 79 L.Ed. 596 (1935). Thus, “when a taxpayer chooses to conduct his business in a certain form, ‘the tax collector may not *598deprive him of the incidental tax benefits flowing therefrom, unless it first…