Circuits Split on Deductibility of Proceeds From Stock Redemption Used to Satisfy ESOP Distribution Obligations discusses the circuit split between the Eighth Circuit (General Mills, Inc. v. United States, No. 08-1638 (8th Cir., January 26, 2009)) and the Ninth Circuit (Boise Cascade Corp. v. U.S. (9th Cir., No. 01-36086, 5/20/03)). The split is on whether or not a corporation is entitled to a deduction under IRC Section 404(k) - Deduction for dividends paid on certain employer securities for the proceeds from a stock redemption that were used to fund cash distributions. It also notes that the IRS's intent to continue to litigate may mean that the Supreme Court will eventually need to decide this issue.

Brief of the ERISA Industry Committee, The Grocery Maufacturers Association, The National Association of Manufacturers and the Organization for International Investment in Support of Appellee's Petition for Rehearing En Banc is an amicus brief that supports a rehearing of the case en banc.