Tax Court May Be The Forum Of Choice For Taxpayers Seeking To Challenge Treasury Regulations

By Dustin Covello & Phil Karter As Tax Blawg readers know, after the Supreme Court’s Mayo decision adopted the deferential Chevron standard for determining the validity of Treasury regulations (instead of the less deferential National Muffler standard that taxpayers preferred), taxpayers and practitioners have speculated that seeking to invalidate a regulation may be a fool’s … Continue reading Tax Court May Be The Forum Of Choice For Taxpayers Seeking To Challenge Treasury Regulations

Innocent Spouse Relief After Mayo: Congress Strikes Back?

By David Shakow Following the Supreme Court’s decision in Mayo Foundation v. United States, in which the Court ruled that tax regulations receive deference from courts under the Chevron doctrine that applies to non-tax regulations, many commentators acknowledged the decision’s anticipated impact on disputes about the validity of tax regulations.  The new standard gives the … Continue reading Innocent Spouse Relief After Mayo: Congress Strikes Back?

Pass The Mayo Foundation: The Supreme Court Says Goodbye To National Muffler

By David Shakow The Supreme Court’s decision this week in Mayo Foundation for Medical Education and Research v. United States clarifies the approach courts should take in determining the validity of IRS regulations.  The decision is a victory for the IRS, but it leaves many issues unresolved.  One thing is very clear, however: the IRS … Continue reading Pass The Mayo Foundation: The Supreme Court Says Goodbye To National Muffler

Treasury Finalizes New Debt Modification Regulations

By Jonathan Prokup On Friday, the Treasury Department issued final regulations under Code section 1001 relating to the modification of debt instruments.  In relevant part, the regulation provides that, following the modification of a debt instrument, the classification of the modified instrument as debt or equity for federal income tax purposes does not take into … Continue reading Treasury Finalizes New Debt Modification Regulations

The Schedule UTP Regulation: Is The IRS Gearing Up For Battle?

By Jonathan Prokup and Dustin Covello Last week, the IRS issued a proposed regulation that would generally require corporations to attach Schedule UTP (Uncertain Tax Position Statement) to their returns.  The regulation effectively would give the IRS authority to require that the schedule be filed; but the issuance of the regulation raises an interesting question: … Continue reading The Schedule UTP Regulation: Is The IRS Gearing Up For Battle?

When Is Debt No Longer Debt? Treasury Proposes To Ease Debt-Modification Regulations

By Jonathan Prokup Times are tough, and many troubled companies are facing the need to modify debts that were issued when times were better (and the companies were financially much stronger).  For companies that wish to modify their debts, and for investors that hold those debts, federal tax law imposes an unfortunate limitation.  An outstanding … Continue reading When Is Debt No Longer Debt? Treasury Proposes To Ease Debt-Modification Regulations

A Four-Letter Word Causes The IRS Trouble

By Buck Buchanan Last summer, the Ninth Circuit Court of Appeals handed the IRS a defeat that the IRS did not take lightly.  The Ninth Circuit ruled that an overstated basis, no matter how large, is simply not omitted income.  See Bakersfield Energy Partners, LP v. Commissioner , 568 F.3d 767 (2009).  The key to … Continue reading A Four-Letter Word Causes The IRS Trouble