Document Type
Article
Publication Date
2024
Abstract
In December 2023 Abbott Laboratories petitioned the Tax Court to reverse $417 million in section 482 deficiencies. The petition addresses many issues, but as Tax Notes contributing editor Ryan Finley pointed out in his excellent recent article, the most important one relates to the issue of whether stock-based compensation should be included in the pool of costs covered by a costsharing arrangement. This is the same issue that taxpayers have litigated repeatedly, with the most recent case, Altera, resulting in an IRS victory in the Ninth Circuit. If Abbott wins, the case is appealable to the Seventh Circuit, potentially setting up a circuit split that (given the amount of revenue involved) could ultimately end up in the Supreme Court.
Recommended Citation
Avi-Yonah, Reuven S. "Is Treasury Bound by the Arm's-Length Standard?" Tax Notes International 114, no. 1 (2024): 109-112.
Comments
Reprinted with the permission of Tax Analysts.