Overview
IRS Issues Final Regs on Substantiation and Reporting Requirements for Charitable Contributions: Today the IRS issued final regulations providing guidance concerning substantiation and reporting requirements for cash and noncash charitable contributions. Among other things, the final regulations set forth: (1) the substantiation requirements for contributions of more than $500 under section 170(f)(11)(B) through (D); (2) the new definitions of qualified appraisal and qualified appraiser applicable to noncash contributions under section 170(f)(11)(E); (3) substantiation requirements for contributions of clothing and household items under section 170(f)(16); and (4) recordkeeping requirements for all cash contributions under section 170(f)(17). Click here to read more.
DC Court of Appeals Reverses Tax Court in Good Fortune Shipping: Today the US Court of Appeals for the DC Circuit reversed the Tax Court’s decision in Good Fortune Shipping SA v. Commissioner. The Tax Court held that the bearer share regulations under section 883 that were applicable for the 2007 tax year were entitled to Chevron deference. The Court of Appeals disagreed, finding that the regulations unreasonably interpreted section 883.
Federal Circuit Vacates and Remands Claims Court Decision in Alta Wind: The US Court of Appeals for the Federal Circuit (Federal Circuit) vacated and remanded the decision of the US Court of Federal Claims (Claims Court) in Alta Wind v. United States. The plaintiffs, Alta Wind, placed into service various windfarm facilities and applied for approximately $703 million in grants under section 1603 of the American Recovery and Reinvestment Act of 2009, Pub. L. No. 111-5. The government awarded grants in the amount of approximately $495 million. Plaintiffs brought suit in Claims Court, seeking approximately $206 million in additional grant payments, and the government counterclaimed, asserting that it had overpaid plaintiffs in the amount of $59 million. The Claims Court found in favor of plaintiffs, approving their method of basis calculation and rejecting the government’s argument that basis must be calculated using the residual method of section 1060, which applies in the case of an acquisition of a trade or business. The Federal Circuit disagreed, finding that the Claims Court erred in refusing to utilize the residual method of section 1060 and in excluding the testimony of the government’s expert witness as to the appropriate basis calculation.
UPCOMING EVENT
Join members of Steptoe’s tax on Thursday, August 9 for a webinar, as we make sense of the new and challenging sales tax issues presented by the US Supreme Court’s recent decision in the Wayfair case. Click here for more information or to register.