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Licensees and economic interest in minerals after Swank and revenue ruling 83-160

Journal Article · · Ky. Law J.; (United States)
OSTI ID:5767288

In the three years since the Supreme Court decided in United States v. Swank that a coal operator mining a coal deposit under a written lease terminable without cause on 30 days notice held an economic interest in the mineral in place, tax literature began noting that this decision rejected a long-held position of the Internal Revenue Service (IRS). The author assesses the impact of Revenue Ruling 83-88, in which the IRS went beyond Swank in concluding that there is no minimum period during which a lessee must have a legal right to extract minerals as a prerequisite to an economic interest. He examines the proposition that, after Swank and Revenue Ruling 83-160, licensees who previously were considered not to have acquired an economic interest, should now be found to have an economic interest in the mineral deposit they are extracting.

Research Organization:
Univ. of Kentucky, Lexington
OSTI ID:
5767288
Journal Information:
Ky. Law J.; (United States), Journal Name: Ky. Law J.; (United States) Vol. 72:4; ISSN KYLJA
Country of Publication:
United States
Language:
English