Boyd Gaming Corporation, F.K.A. The Boyd Group and Subsidiaries v. Commissioner of Internal Revenue, California Hotel & Casino and Subsidiaries v. Commissioner of Internal Revenue

83 A.F.T.R.2d 99 -2354, 99-1 USTC P 50,530 , 1999 Daily Journal D.A.R. 4423 BOYD GAMING CORPORATION, f.k.a. The Boyd Group and Subsidiaries, Petitioner-Appellant, v. COMMISSIONER OF INTERNAL REVENUE, Respondent-Appellee. California Hotel & Casino and Subsidiaries, Petitioner-Appellant, v. Commissioner of Internal Revenue, Respondent-Appellee. Nos. 98-70123, 98-70126. United States Court of Appeals, Ninth Circuit. Argued and Submitted March 11, 1999. Filed May 12, 1999. Charles L. Almond and Marie R. Yeates, Vinson & Elkins, Houston, Texas, for the petitioners-appellants. Annette M. Wietecha, United States Department of Justice, Tax Division, Washington, D.C., for the respondent-appellee. Gregory R. Smith, Irell & Manella, Los Angeles, California, for the amicus curiae. Appeals from the United States Tax Court; David Laro, Tax Court Judge, Presiding. Tax Ct. Nos. 3433-95, 3434-95. Before: FERNANDEZ and McKEOWN, Circuit Judges, and WEINER, * District Judge. McKEOWN, Circuit Judge: 1 This case involves the question whether there really is a "free lunch." In 1986, concerned that the tax laws unfairly allowed high-income taxpayers to structure their business affairs in a…