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Article
May 1969

Favorable Legal Developments for Physicians

Arch Otolaryngol. 1969;89(5):800. doi:10.1001/archotol.1969.00770020802026

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Abstract

A significant development in the problem of malpractice suits in favor of physicians and hospitals is a new law enacted in California, in 1968, that if there is a question in such a suit as to the statute of limitations, this must first be determined by a separate trial. If the action has not been brought within the statutory time limit it will be dismissed immediately (The Citation 17:187 [Oct] 1968).

Of considerable importance to groups of physicians who have formed corporations are two recent cases where physicians successfully challenged the Treasury Department's Kintner regulations restricting professional groups in obtaining corporate tax status. In Florida two physicians practiced as a corporation, in which they were salaried employee-stockholders. The IRS had ruled that the group was taxable as a partnership rather than corporation, but the court decided that the Treasury Department has a dual set of criteria, one for nonprofessional organizations,

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