Overview
Tax Court Rules on Supervisory Approval for Penalties in Partnership Proceedings: Today, the US Tax Court issued an opinion in Dynamo Holdings LP v. Comm’r, 150 T.C. No. 10 (2018) ruling that the IRS does not bear the burden of production with respect to penalties in a partnership-level proceeding. The Tax Court decided that its ruling in Graev v. Comm’r, 149 T.C. No. 23 (2017) (Graev III), which held that the Commissioner’s burden of production includes evidence of written supervisory approval, is not applicable to partnership proceedings, because partnership proceedings do not concern “individuals” within the meaning of section 7491(c).
Annual Advance Pricing and Mutual Agreement Program Report Released: On May 4, the Treasury Department released the annual report for 2017 on trends in the issuance of advance pricing agreements (APAs) and results from the Advance Pricing and Mutual Agreement Program (APMA Program). The report shows that in 2017, 101 complete APA applications were filed, and 116 APAs were executed.