Wallach v. United States

ORDER ON CROSS-MOTIONS FOR SUMMARY JUDGMENT

WHITE, Senior Judge.

The plaintiffs, who are husband and wife and prominent professional actors, sue for the recovery of the amounts of additional income tax (and assessed interest) which the Internal Revenue Service (IRS) required the plaintiffs to pay for each of the years 1978 and 1979.

The Minimum Tax

The additional tax for 1978 was assessed by the IRS under section 56(a) of the Internal Revenue Code of 1954 (the Code), as amended by section 301(a) of the Tax Reform Act of 1976 (90 Stat. 1520, 1549). As effective for the year 1978, this section…