High Court Reverses 5th Circ. In Tax Penalty Case

Law360, New York (December 3, 2013, 1:23 PM EST) -- The U.S. Supreme Court on Tuesday reversed a Fifth Circuit decision allowing the former owner of the Minnesota Vikings football team to escape millions of dollars in tax liability, saying the Internal Revenue Code's valuation misstatement penalty applies to certain sham transactions used to evade taxes.

In a unanimous decision written by Justice Antonin Scalia, the court found that the IRS was correct in slapping Texas billionaire Billy Joe "Red" McCombs and his business partner Gary Woods with a 40 percent penalty for using a tax...
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