TaxProf Blog

Editor: Paul L. Caron
Pepperdine University School of Law

A Member of the Law Professor Blogs Network

Wednesday, January 26, 2011

7th Circuit: Overstatement of Basis Is Omission of Income, Triggering 6-Year SOL

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.

http://taxprof.typepad.com/taxprof_blog/2011/01/7th-circuit.html

New Cases, Tax | Permalink

TrackBack URL for this entry:

http://www.typepad.com/services/trackback/6a00d8341c4eab53ef0148c80a427d970c

Listed below are links to weblogs that reference 7th Circuit: Overstatement of Basis Is Omission of Income, Triggering 6-Year SOL:

Comments