In this issue:
- US Supreme Court Imposes Valuation-Misstatement Penalty in TEFRA Proceeding
- Southern District of New York holds Cooperation with Government Waives Attorney-Client Privilege
- IRS Issues Revised Information Document Request Procedures
- Several Swiss Banks accept DOJ Settlement Program
- IRS Issues John Doe Summons for Hidden Accounts
- Second Circuit Vacates and Remands Tax Court Decision in Midco Acquisitions Case
- IRS Notice 2013-69 Provides Guidance to FFIs and Draft FFI Agreement
- IRS Introduces Revised IRM 8.11.6 Relating to FBAR Penalties
- Court of Federal Claims Refuses to Amend the Judgment in Salem Financial
- Subcommittee Urges Action Against Tax Evaders
- District Court Denies Bankers Associations’ Challenge to Bank Reporting Regulations
- Excerpt from US Supreme Court Imposes Valuation-Misstatement Penalty in TEFRA -
Proceeding On December 3, 2013, the United State Supreme Court, in a unanimous decision written by Justice Scalia, ruled that San Antonio entrepreneur and former owner of the Minnesota Vikings, Red McCombs, and his business partner, Gary Woods, were liable for the 40 percent gross valuation-misstatement penalty under IRC § 6662.1 The Supreme Court granted certiorari to address the question whether the federal district courts have jurisdiction in a TEFRA partnership level proceeding to determine whether a partnership’s lack of economic substance could justify imposing a valuation-misstatement penalty on the partners. The Supreme Court reversed the Fifth Circuit, and found that the District Court had jurisdiction in the TEFRA proceeding to determine the applicability of the valuation-misstatement penalty.
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