In a reversal of the taxpayer-favorable lower court opinion, the Appeals Court for the federal Court of Claims concluded that Consolidated Edison’s Lease-In Lease-Out (LILO) transaction did not have economic substance and the purported lease was not a “true lease”. The IRS “listed” this particular transaction in Rev. Rul. 2002-69 and Congress further stopped these… Continue Reading
Category Archives: Litigation/Controversy
Subscribe to Litigation/Controversy RSS FeedTax Court Respects Related-Party Loan
Posted in Debt vs. Equity, General, Litigation/Controversy, Partnership/LLCIn a significant taxpayer win, the Tax Court concluded in NA General Partnership v. Commissioner that related-party loans from a U.K. corporation to its controlled U.S. subsidiary were respected as debt, and the U.S. subsidiary was entitled to $932 million of interest deductions. The original loans were $4 billion in fixed-rate notes and $896 million in floating-rate… Continue Reading
Supreme Court Rules Against IRS in Statute of Limitation Case
Posted in General, Litigation/Controversy, Procedure, Statute of LimitationsIn a much-anticipated decision, the U.S. Supreme Court voted 5-4 against the IRS and held that the three-year and not six-year statute of limitations applied to a so-called Son of BOSS tax shelter in U.S. vs. Home Concrete & Supply LLC. This is the culmination of a series of split appeals court decisions on… Continue Reading
IRS Has Three New Wins On Tax Shelter Cases
Posted in Economic Substance, General, International, Litigation/Controversy, Partnership/LLCThe Justice Department touted three significant wins on tax shelter cases involving importing foreign built-in tax losses, foreign tax credits, and generating tax losses from “underwater” commercial leases. In the first case, Southgate Master Fund LLC v. United States, the Fifth Circuit Court of Appeals, affirmed a lower court ruling that a purported “partnership” was… Continue Reading
FBAR Voluntary Disclosure – IRS Provides Short-term Extension to September 9
Posted in Compliance, General, International, Litigation/ControversyNOTE (Aug. 29, 2011): The IRS clarified that the Sept. 9, 2011, extension also applies to taxpayers filing delinquent FBARs pursuant to IRS Q&A 17 and 18 for the simplified program applicable to taxpayers who did not owe tax but failed to file the appropriate tax forms. _________________________________________________________ Due to Hurricane Irene, the IRS extended… Continue Reading
IRS Reminds Taxpayers of Aug. 31 Deadline for FBAR Voluntary Disclosure
Posted in Compliance, General, International, Litigation/ControversyThe IRS issued a press release reminding taxpayers that they have until August 31 to join the 2011 Offshore Voluntary Disclosure Initiative. According to the press release, the 2011 initiative offers benefits to encourage taxpayers to come forward rather than risk detection by the IRS, observing that taxpayers hiding assets offshore who do not come… Continue Reading
D.C. Circuit Defers to IRS Regulations and Applies Six-Year Statute Of Limitations
Posted in Litigation/Controversy, Statute of LimitationsIn the most recent of a series of appellate decisions, the D.C. Circuit in Intermountain Insurance, held in favor of the IRS by applying a six-year statute of limitations period as a result of an overstated partnership tax basis. In 2010, the IRS issued regulations treating over-stated tax basis as an understatement of gross income,… Continue Reading
Subscribe to this blog via RSS
Retail Law Advisor
Goulston & Storrs
Follow us on Twitter
Subscribe to this blog by email
Follow Us on LinkedIn