Overview
Tax Notes cited Matt Frank in an June 7 article titled "Tax Court Urged to Reconsider Constitutionality of Coca-Cola." The article discusses Coca-Cola's motion to ask the Tax Court to reconsider its 2020 opinion that is upholding nearly $10 billion in transfer pricing adjustments. In Coca-Cola Co. v. Commissioner, 155 T.C. No. 10 (2020), the Tax Court upheld the IRS's primary transfer pricing adjustments in their entirety and rejected all of Coca-Cola's objections regarding the agency's selection of method and decision not to honor an expired closing agreement.
Motions under Tax Court Rule 161 are typically only granted in exceptional circumstances usually require some combination of substantial error, unique circumstances, or a failure by the court to consider the consequences of its opinion. Coca-Cola argues that all of those conditions are present in this case.
Frank says the motion’s focus on those arguments is notable in light of their virtual absence in earlier filings and that Coca-Cola doesn't explain in its new motion why it failed to do so.
The full article can be read at Tax Notes (subscription required).