Economic Substance: Part Two

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Economic Substance: Part Two

November 04, 2026

United States
United States
United States

Have taxpayers and practitioners been thinking about economic substance all wrong?

In part two of Eversheds Sutherland’s Federal Tax Podcast discussion on the economic substance doctrine, Partner Sandy Bradford and Counsel R.J. Hagerman, explore a practical framework for assessing economic substance risk. They discuss three key considerations: the strength of the transaction’s support in the tax code, whether there is a genuine non-tax purpose, and the size of the resulting tax benefit.

Using cases such as Summa Holdings and examples involving charitable contributions, Sandy and R.J. also examine why congressional intent, documentation and a transaction’s broader narrative can matter when facing IRS scrutiny.

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Key contacts

sandybradford@eversheds-sutherland

Cassandra S. Bradford

Partner

Atlanta, United States

RichardHagerman@eversheds-sutherland.com

Richard “R.J.” Hagerman

Counsel

Washington, DC, United States

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