Overview
Law360 quoted Eric Solomon in a November 30 article titled "Microcaptive Reporting Row May Spark More Guidance Spats." The article discusses arguments at the US Supreme Court on a preenforcement challenge to an IRS notice requiring the disclosure of potentially abusive microcaptive insurance arrangements. The case could pave the way for future lawsuits against other informal guidance.
Solomon says the justices' ruling may affect how other taxpayers can fight reporting requirements, both for transactions of interest and for listed transactions. In addition, the case could influence how the IRS enforces what it perceives as aggressive transactions, he adds.
"The IRS would have a big interest in this case because it could affect IRS enforcement of transactions it has identified as tax shelters," Solomon tells Law360. "This [case] is about a transaction of interest, but taxpayers could make the same argument for listed transactions … because if the taxpayer prevails, presumably other taxpayers will make similar arguments about IRS notices."
The full article can be read at Law360 (subscription required).