Tax Notes Quotes Mark Allison on Gross Valuation Penalty
Mark D. Allison was quoted by Tax Notes concerning the Tax Court's holding on March 14 that a taxpayer may not avoid a 40% gross valuation misstatement penalty under section 6662(h) by conceding a deduction or credit on grounds unrelated to value or basis of property. For more on the story, please go to Tax Notes' website.
Excerpt taken from the article "Concession Does Not Negate Gross Valuation Misstatement Penalties," by Shamik Trivedi for Tax Notes
Mark D. Allison of Caplin & Drysdale said that ‘‘insofar as the courts of appeal have been chipping away at the concession approach to mitigating the gross valuation penalty, the Tax Court decision may have been only a matter of time.'' Nonetheless, the court ‘‘punted on how it would have handled the issue in the Fifth and Ninth Circuits, and there will eventually need to be a day of reckoning with cases appealable there,'' Allison said.