News
Goldberg Kohn Corporate Group Principal Kelly Glynn is featured in the August 14, 2026, edition of Bloomberg's Tax's daily "Insight & Commentary" section. The section spotlights prominent tax professionals who are willing to share their thoughts about their work and the practice of tax these days.
Kelly shared lessons learned from her early years of practice, the biggest challenges confronting tax practitioners today, and the section of the tax code she would like to change - Section 355, which governs tax-free corporate spinoffs. To qualify for tax-free treatment under 355, a spin-off transaction must satisfy several strict, fact-intensive requirements, including that both the distributing and controlled corporations satisfy the five-year active trade or business requirement, that the transaction be motivated by a genuine business purpose, and that the transaction not be used as a “device” for distributing earnings and profits of either corporation.
These requirements exist to prevent taxpayers from using spinoffs to avoid tax on dividends or the sale of appreciated assets. However, Kelly writes that, in practice, this anti-abuse framework relies on subjective standards that create uncertainty and compliance burdens disproportionate to the anti-abuse benefit the rules are meant to secure.
CLICK HERE to read the entire feature.
