3 Principles of Tax Interpretation

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Lyrics

[Verse 1]
When Congress writes the tax code down in black and white
Plain meaning rules unless the words don't shine their light
But when the text gets murky, dig through history's pages
Find what lawmakers intended through legislative stages

[Chorus]
Three principles guide the way we read the law
Statutory construction, what the text says raw
Judicial doctrines pierce the veil of fake design
Economic substance draws the binding line

[Verse 2]
Courts won't let you dress up deals in fancy clothes
Substance over form - they see what really shows
Step transaction doctrine links your moves together
Business purpose test - storms your tax-free weather

[Chorus]
Three principles guide the way we read the law
Statutory construction, what the text says raw
Judicial doctrines pierce the veil of fake design
Economic substance draws the binding line

[Verse 3]
Section seventy-seven oh one letter O
Codified the rules that make sham transactions go
Pre-tax profit plus significant change of state
Both requirements met or penalties await

[Bridge]
Tax Court specializes, knows the revenue game
District Courts and Claims Court play a broader frame
Circuit Courts review them, Supreme Court's at the peak
IRS acquiesces when their position's weak

[Chorus]
Three principles guide the way we read the law
Statutory construction, what the text says raw
Judicial doctrines pierce the veil of fake design
Economic substance draws the binding line

[Outro]
Nonacquiescence means they'll fight another day
Canons of interpretation help words find their way
From plain text to purpose, courts and code align
Three principles of tax interpretation's shrine

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