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This week we look at two Tax Court opinions released on the same day that both dealt with whether a transaction represented a loan to the taxpayer or was income. The cases are \\nTeymourian v. Commissioner (TC Memo 2005-232) and \\nKarns Prime and Fancy Food, Ltd. (TC Memo 2005-233). \\n

\\nThe results may initially appear to be at odds with most tax professional\'s expectation based on the fact that in the case where the taxpayer prevailed, the loan in question was with his closely held corporation and poorly documented, while in the case where the IRS prevailed the purported loan was from an unrelated third party and clearly documented as a loan.\\n

\\nI also briefly discuss the IRS\'s release of new \\n\\nproposed regulations to explain Section 409A that Congress put into the law last October. If your client either participates in a nonqualified plan or sponsors one, you should review these new proposed regulations, which modify the original guidance the IRS provided in Notice 2005-1.\\n

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