Karen C. Burke (San Diego) has published Castle Harbour:  Economic Substance and the Overall-Tax-Effect Test, 107 Tax Notes 1163 (May 30, 2005), also available on the Tax Analysts web site as Doc 2005-10220, 2005 TNT 104-39. Here is the abstract:

The taxpayer victory in Castle Harbour v. Commissioner has been heralded as a watershed in tax shelter litigation.  The district court rejected the government’s arguments that the partnership was a sham and that the partnership’s allocations violated the overall-tax-effect test.  This article explores the relationship between the economic substance doctrine and limitations on flexible allocations under subchapter K.  Although the § 704(c) regulations now provide an antiabuse rule that should make it impossible to replicate the Castle Harbour transaction, the government also maintained that the partnership’s allocations lacked substantial economic effect under the § 704(b) regulations. The article argues that the district court’s circular interpretation of the overall test threatens to undermine the ability of the § 704(b) regulations to deter tax-driven allocations.  Although the government’s relative ownership test was defective, Burke suggests alternative methods for reallocating the partnership’s book items to reflect the partners’ economic interests.