Mark Allison Quoted by CCH Regarding Tax Court Valuation Misstatement Penalty
Caplin & Drysdale's Mark D. Allison is quoted by CCH regarding the Tax Court's recent decision that an understatement of tax may be attributable to a valuation misstatement even when the IRS's determination of an underpayment of tax may also be sustained on a ground unrelated to basis or valuation. To read the full story, please click here.
Excerpt taken from the article.
"The Tax Court decision effectively concludes that the virtues of settlement, including by conceding the substantive issues to avoid the 40 percent penalty, are outweighed by the need for an expansive construction of the penalty's application," Mark Allison, member, Caplin & Drysdale, Chartered, New York, told CCH. "This is tantamount to treating the section 6662(h) as a strict liability penalty in line with the economic substance penalty under Code Sec. 6662(i)."
- Senior Counsel