In 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
Tag Archives: Son-of-Boss
First Circuit Applies 40% Valuation Penalty On Son of BOSS Transaction
Posted in Economic Substance, General, Partnership/LLC, Tax SheltersIn Fidelity International, the First Circuit upheld a 40% valuation penalty on a so-called “Son of BOSS” transaction described in Notice 2000-44. These transactions involved contributing offsetting long and short options into a partnership and claiming that the net effect of the options resulted in a very high tax basis in the partnership for purposes of… 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
10th Circuit Defers to IRS Regulations and Applies Six-Year Statute Of Limitations
Posted in Statute of LimitationsIn the most recent of a series of appellate decisions, the Tenth Circuit in Salman Ranch, has 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… Continue Reading
7th Circuit Sides with IRS on 6-Year Statute of Limitations
Posted in Statute of LimitationsIn a highly watched case, the Seventh Circuit Court of Appeals reversed a Tax Court decision and held that overstated tax basis is equivalent to an omission of gross income, causing the longer six-year statute of limitations to apply. The court held that the prior taxpayer-favorable Colony case did not apply in light of subsequent… Continue Reading
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