Recent Litigation Highlights Potential For Increased Use Of Regulation Challenges In IRS Audit Disputes

Since the passage of the Tax Cuts and Jobs Act (TCJA) in 2017, the promulgation of regulations amplifying TCJA provisions has led practitioners to shift their attention to potential challenges to the Treasury Department’s (Treasury) interpretation of certain statutes. In this article, Tax Members George Hani and Loren Ponds examine a recently filed district court case, Liberty Global, Inc. v. United States, which raises novel arguments in asserting that the Treasury erred when it promulgated […]

By | July 26th, 2021 ||

IRS Memo On 482 Adjustments For CSAs With Reverse Claw-Back Provisions

After Altera’s victory in Tax Court in 2015,1 many companies with cost sharing arrangements (“CSA”) ceased sharing stock-based compensation (“SBC”) costs. To address the possibility of a reversal on appeal, many of these companies added reverse claw-back provisions to their CSAs. Under these provisions, in the year a reversal of Altera becomes final, the US participant typically “claws back” from the foreign participants the amount of SBC costs not shared in prior years (the “claw-back true-up”). The […]

By | July 20th, 2021 ||

TAX TAKE: The Rubber Has Met The Road: Senate Democrats Announce $3.5 Trillion Package

Last week Senate Democrats, led by Senate Majority Leader Charles Schumer (D-NY), announced an agreement on a $3.5 trillion package that includes President Biden’s spending priorities, including “social infrastructure” proposals focusing on education, health care, child care, paid family and medical leave, and climate change. This package is expected to be considered under the budget reconciliation rules, and it is separate from the bipartisan agreement announced last month that focuses on traditional infrastructure such as roads and bridges. […]

By | July 12th, 2021 ||