Originally the courts (in opposition to Congress)determined that businesses should be able to restructure without being subject to taxation.To be consistent with court findings,Congress changed the Code to provide reorganizations with treatment similar to that given under § 351 for starting a corporation.

Question

Quizplus · Accepted Answer

The statement is opposite to the actual events that occurred. Initially, Congress allowed tax-free reorganizations, but courts later determined that reorganizations should be subject to taxation. Congress then changed the Code to provide tax treatment similar to starting a new corporation.

Originally the Courts (In Opposition to Congress)determined That Businesses Should