Texas Attys Should Face Tax Shelter Penalties: 5th Circ.

Law360, New York (January 27, 2014, 4:30 PM EST) -- The Fifth Circuit ruled Thursday that partners in Texas law firm Nix Patterson & Roach LLP should be subject to reporting penalties for participating in an alleged tax shelter that was designed to significantly reduce liabilities related to a $600 million tobacco settlement fee.

In a published opinion, the appeals court agreed with the Internal Revenue Service that the partners could not claim substantial tax deductions that were generated through the purchase and sale of foreign currency in the early 2000s and that reporting penalties should...
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