Wandry Roller Coaster Continues

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I have written several times about the Wandry decision, and its respect for a formula adjustment clause in the gift tax arena. This decision has had its ups and downs, since it came out earlier this year.

Up – the Tax Court issues its decision upholding the clause.

Down – the IRS appeals the decision.

Up – the IRS withdraws its appeal.

Down – the IRS has now issued its nonacquiescence to the Wandry decision.

After the IRS withdrew its appeal, I don’t think that there were too many people out there who read that as an IRS concession that these clauses were valid and effective (although many hoped so). With its nonacquiescence, the IRS has now made clear that it does not believe Wandry is good law.

For more on Wandry, click here.

What exactly is a “nonacquiescence?” The Internal Revenue Bulletin provides that it means, as to a Tax Court decision, that “although no further review was sought, the Service does not agree with the holding of the court and, generally, will not follow the decision in disposing of cases involving other taxpayers.”

AOD in 2012-46 IRB

 

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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.

© Charles (Chuck) Rubin, Gutter Chaves Josepher Rubin Forman Fleisher P.A. | Attorney Advertising

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Charles (Chuck) Rubin
Gutter Chaves Josepher Rubin Forman Fleisher P.A.

A tax and business attorney who assists clients in preserving & enhancing individual, family &... View Profile »


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