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Second Circuit Declines Altria's Invitiation to Sustain a BS Tax Shelter

The Second Circuit recently rejected another hokey tax shelter in Altria Group, Incorporated v. United States , ___ F.3d ___, 2011 U.S. App. LEXIS 19644 (2d Cir. 2011), here . I have previously blogged on the trial level results in the following blogs: (i) Altria # 1 - Frank Lyon and tax shelters (3...

Courts Reject More BS Tax Shelters

DOJ Tax is touting the stunning phenomenon of three major victories in BS tax shelters all in a single day. See Press Release, Justice Department Prevails in Three Tax Shelter Cases on Same Day (10/4/11), here (with links to the pdf files for the opinions). All of these cases were tried to judges in...

4th Circuit: Denial of Transferee Liability for Intermediary Transaction Tax Shelter Affirmed

The Fourth Circuit Court of Appeals affirmed the Tax Court's decision in favor of four taxpayers who were alleged to have participated in what the IRS describes as an Intermediary Transaction tax shelter. The majority opinion, authored by Circuit Judge Davis, held that the Tax Court properly identified...

Economic Substance Uncertainty in Civil Cases

In past entries on this blog, I have expressed concern about deploying the economic substance doctrine in criminal cases. Here is yet another reason for concern. In American International Group v. United States (SDNY 1:09-cv-01871), in a civil tax case, the IRS has raised economic substance to defeat...