Codification of Economic Substance No Common Law Change

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The codification of the economic substance doctrine by Congress does nothing to change the common law basis for the doctrine, a Treasury Department official says. Speaking at a Practising Law Institute tax strategies seminar, Bryon A. Christensen, deputy tax legislative counsel (regulatory affairs), points to IRS guidance (Notice 2010-62) issued in September as making clear that determinations over whether the doctrine is relevant to a transaction should be made as if there had been no codification statute.