Tag Archives: Tax Court

Treasury’s Section 482 Regulation Losses

▪ Written by Jasper L. (Jack) Cummings, Jr.

Do what Treasury said, not what it says it meant. Earlier this month, our Federal Tax Group explains why the circuit court affirmed one Tax Court decision and reversed another in the name of consistency – and why it means regulation preambles are more important than ever. Affirming in Amazon, reversing in Altera Holding the IRS to literal terms of the regulation Similarity to the Supreme Court ruling on the census citizenship question Read the full advisory here. [...]Read more

Altera Redux – The Ninth Circuit Once Again Holds in Favor of the IRS

▪ Written by Henry Birnkrant, Stefanie Kavanagh and Ryan Kelly

Last week, our International Tax Group examines the Ninth Circuit repeating itself in reversing a unanimous Tax Court holding on the validity of the Treasury's regulations under Section 482. We examine the reconstituted panel's significant decisions, which in many ways follow the first panel's conclusions. Altera v. Commissioner, Parts 1, 2, and now, 3 What is the meaning of “commensurate with income”? What does this case say about previous standards under Chevron? Read the full advisory here. [...]Read more

Another Chapter in the Effectively Connected Income Saga—IRS Issues Proposed Regulations on Sales of Partnership Interests by Foreign Partners

▪ Written by Edward Tanenbaum, Daniel Reach and Seth Buchwald

The IRS gets granular on new Section 864(c)(8), created by the Tax Cuts and Jobs Act. Our International Tax Group examines the implications of the newest proposed regulations brought on by tax reform. How Section 864(c)(8) codifies longstanding IRS principles on effectively connected income The proposed regulations’ complex formula for deemed partnership asset sales Application to tiered partnerships and treaties Read the full advisory here. [...]Read more

Regulation Confusion

▪ Written by Jasper L. (Jack) Cummings, Jr.

The Office of Management and Budget may throw a wrench into how IRS and Treasury regulations are treated. Our Federal Tax Group outlines why slowing down the regulation process may be the least of taxpayers’ worries. Will the OMB discard traditional distinctions? Legislative vs. interpretive regulations What does it mean for tax reform? Read the full advisory here. [...]Read more

International Tax ADVISORY: Big Tax Court Win for Eaton in Canceled APA Case

▪ Written by Henry Birnkrant and Stefanie Kavanagh

The IRS abused its discretion when it canceled two advance pricing agreements. Our International Tax Group covers Eaton’s victory in the Tax Court and how it allays concerns about how worthwhile an APA can be. Public and judicial scrutiny Standard of review Where do we go from here? Read the full advisory here. [...]Read more

Federal Tax ADVISORY: Fourth Circuit Economic Substance Doctrine

▪ Written by Jasper L. (Jack) Cummings, Jr.

The Tax Court takes on the Fourth Circuit's version of the sham transaction doctrine. Our Federal Tax Group considers the implications going forward. The Tax Court said no The peculiar things about the opinion The takeaway Read the full advisory here. [...]Read more

International Tax Advisory: Back to School: Recent Cases Offer Lessons in International Tax “Basics”

▪ Written by Edward Tanenbaum and Heather Ripley

Our International Tax Group offers a refresher course on U.S. residency start dates and double taxation with U.S. territories.

Click here to read the full advisory.

International Tax Advisory: Tax Court Flexes Its Debt-Equity Muscle on “Unrelated” Parties

▪ Written by Edward Tanenbaum and Heather Ripley

A recent Tax Court case shows the government’s willingness and ability to attack financing arrangements that do not reflect arm’s-length debt standards, even without the forthcoming Section 385 regulations. Our International Tax Group analyzes that case and reviews the IRS’s decision to stop treating some FATCA intergovernmental agreements as “in effect.”