Constructive cash distributions to partners with possible concomitant severe tax impact can occur whenever a partners share of firm or individual liabilities is cut. This reduction of liabilities can be triggered by a variety of typical partnership transactions. Messrs. Parker arid Lee analyze those transactions under which there is the danger of unforeseen taxation and urge extreme caution.
41 The Journal of Taxation 88-94 (1974)
Parker, Robert S. Jr. and Lee, John W., "Constructive Cash Distributions in a Partnership: How and When They Occur" (1974). Faculty Publications. 1396.