Another Federal Court of Appeals Weighs in on the Applicability of the Six-Year Statute of Limitations Period to an Overstatement of Basis

more+
less-

The U.S. Court of Appeals for the D.C. Circuit recently reversed two U.S. Tax Court decisions and held that an overstatement of basis constitutes an omission from gross income that is subject to the six-year statute of limitations period under sections 6229(c)(2) and 6501(e)(1)(A). These decisions further the conflict among the appellate courts regarding the applicability of the extended limitations period.

On June 21, 2011, another U.S. Court of Appeals weighed in on the dispute between taxpayers and the Internal Revenue Service (IRS) as to whether an overstatement of basis constitutes an omission from gross income that triggers the six-year statute of limitations period under sections 6229(c)(2) and 6501(e)(1)(A) of the Internal Revenue Code. In Intermountain Ins. Serv. of Vail, LLC v. Commissioner, No. 10-1204 (D.C. Cir. 2011) (Intermountain II), rev’g T.C. Memo 2009-195 (Intermountain I), and UTAM, Ltd. v. Commissioner, No. 10-1262 (D.C. Cir. 2011), rev’g T.C. Memo 2009-253, the U.S. Court of Appeals for the District of Columbia reversed the U.S. Tax Court’s decision and held that an overstatement of basis does constitute an omission from gross income that is subject to a six-year statute of limitations period.

Please see full article below for more information.

LOADING PDF: If there are any problems, click here to download the file.

Written by:

Published In:

Tax

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© McDermott Will & Emery | Attorney Advertising

Don't miss a thing! Build a custom news brief:

Read fresh new writing on compliance, cybersecurity, Dodd-Frank, whistleblowers, social media, hiring & firing, patent reform, the NLRB, Obamacare, the SEC…

…or whatever matters the most to you. Follow authors, firms, and topics on JD Supra.

Create your news brief now - it's free and easy »

All the intelligence you need, in one easy email:

Great! Your first step to building an email digest of JD Supra authors and topics. Log in with LinkedIn so we can start sending your digest...

Sign up for your custom alerts now, using LinkedIn ›

* With LinkedIn, you don't need to create a separate login to manage your free JD Supra account, and we can make suggestions based on your needs and interests. We will not post anything on LinkedIn in your name.
×
Loading...
×