Corporate Practice of Medicine, Federal Income Taxes and Pension Plans

IN three separate decisions during late 1968, the federal district courts have given important victories to medical groups that have formed "professional service corporations" to take advantage of federal tax benefits available to corporations, especially regarding pension and profit-sharing plans. In all three cases,1 the courts held Internal Revenue Code regulations invalid under the law. The courts held that the regulations, which would have prevented these particular organizations from qualifying as corporations under the federal tax laws, were discriminatory toward these professional corporations, imposing upon them more stringent standards than would be applied to other business corporations.It is well . . .