If a principal purpose of any transaction is to evade or avoid liability under this chapter, this chapter shall be applied (and such liability shall be imposed) without regard to such transaction.
Title 26
Want me to explain this in plain English?
This is not an official government website.
Copyright © 2026 PLEJ LC. All rights reserved.
Title 26
Sham transactions
Need the full chapter outline? Open Chapter 99 to browse every section without loading the entire chapter explorer on this page.
If a principal purpose of any transaction is to evade or avoid liability under this chapter, this chapter shall be applied (and such liability shall be imposed) without regard to such transaction.
Release: pl-119-73not60 (2026-01-23)