IRS Defends Cost-Sharing Rule Nixed By Tax Court In Altera

Law360, New York (October 11, 2017, 9:15 PM EDT) -- The Internal Revenue Service tried to defend a cost-sharing rule that chipmaker Altera Corp. successfully challenged in the U.S. Tax Court, telling the Ninth Circuit during oral arguments on Wednesday that the lower court failed to answer questions about Treasury’s authority to amend regulations.

The Tax Court had sided with chipmaker Altera Corp. in July 2015 after finding that the IRS had ignored significant evidence and public comments while promulgating its rule requiring cost-sharing agreements between related parties to include the costs of stock-based compensation.

The agency’s...
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