5th Circ. Upholds Ruling For IRS On 'Sham' Tax Deal

Law360, New York (November 11, 2009, 4:42 PM EST) -- A federal appeals court has affirmed a judgment in favor of the U.S. Internal Revenue Service in a case brought against the government by Enbridge Energy Co. Inc. concerning a conduit transaction the IRS called a sham.

The U.S. Court of Appeals for the Fifth Circuit said Tuesday that a district court had not erred in ruling that the IRS had appropriately assessed taxes on an Enbridge transaction and that the agency was permitted to assess a 20 percent penalty.

Enbridge, formerly known as Midcoast Energy...
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