9th Circ.'s Shift From Arm's-Length Rule May Embolden IRS
By Vidya Kauri (July 24, 2018, 10:32 PM EDT) -- The Ninth Circuit's revival of an IRS cost-sharing regulation previously invalidated by the U.S. Tax Court throws into disarray multinational companies' expectations that they can rely on the arm's-length standard to craft agreements for sharing research and development costs.
Intel's 2015 victory in U.S. Tax Court against the IRS over the inclusion of stock-based compensation in cost-sharing agreements was reversed by the Ninth Circuit. (AP) The arm's-length standard, which has been the bedrock of transfer pricing and cost-sharing agreements, dictates that transactions between related businesses sharing the costs of developing intangible property are comparable to what unrelated parties might negotiate....
Stay ahead of the curve
In the legal profession, information is the key to success. You have to know what’s happening with clients, competitors, practice areas, and industries. Law360 provides the intelligence you need to remain an expert and beat the competition.
Access to case data within articles (numbers, filings, courts, nature of suit, and more.)
Access to attached documents such as briefs, petitions, complaints, decisions, motions, etc.
Create custom alerts for specific article and case topics and so much more!