Wednesday, January 26, 2011
The Seventh Circuit handed the IRS a big victory today in a Son-of-BOSS tax shelter case, reversing the Tax Court (Beard v. Commissioner
, T.C. Memo. 2009-184 (Aug. 11, 2009)) and treating a taxpayer's overstatement of basis as an omission of income under § 6501(e), triggering the six-year (not three-year) statute of limitations. Beard v. Commissioner
, No. 09-3741 (7th Cir. Jan. 26, 2011). Other cases rasiing this issu are pending in the Fourth, Fifth, Tenth, and Federal Circuits. For a detailed discussion of the case, see Miller & Chevalie's Tax Appellate Blog, Seventh Circuit Sets Up Likely Supreme Court Showdown By Reversing Tax Court on Intermountain Issue
. (Hat Tip: Kristin Hickman.)
Update: State Bar of Wisconsin, Seventh Circuit Court of Appeals Distinguishes 1958 Tax Case to Reject Taxpayer's Defense.