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Abstract

The author is an attorney in a Kansas City, Missouri law firm. His topic is the deductibility for federal income tax purposes of certain "premium" payments made by federally chartered savings and loan associations to the Federal Savings and Loan Insurance Corporation (FSLIC). Recently his firm was successful in establishing this point before a federal district court, and more recently the Court of Appeals for the Ninth Circuit, re- versing the Tax Court, reached a similar conclusion involving a savings and loan institution chartered under the laws of the state of California. In this article the author urges the correctness of the result in these recent cases while arguing against the reasoning of a published ruling of the Internal Revenue Service which reaches a different conclusion.

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