CCH Quotes Mark Allison: Supreme Court Upholds IRS's Application Of Valuation Misstatement Penalty To Sham Transaction
CCH Federal Tax Weekly spoke with Mark D. Allison concerning the U.S. Supreme Court's unanimous decision to uphold a gross valuation misstatement penalty where two partnerships had engaged in a tax shelter transaction and lacked economic substance. To view a PDF of the complete article, please click here.
Excerpt taken from the article.
"The Supreme Court has finally disposed of two important issues which have caused a backlog of cases in the Tax Court and other trial level courts, namely the jurisdiction of the trial court to determine penalties in a partnership level proceeding and the applicability of gross valuation misstatement penalties in cases where the IRS or the court determines that the transaction in dispute lacks economic substance," Mark Allison, Caplin & Drysdale, Chartered, New York, told CCH.
"While questions remain following the Woods decision, including whether and to what extent partner level defenses can be asserted or waived in a partnership level proceeding, it is likely that pending cases that were awaiting Woods should now be disposed and resolved."