Court Leaves Government with Limited Options in Partnership Case

For many years the IRS has argued for a broad reading of the term “partnership item”, items that demand entity-level determinations. In the Journal of Passthrough Entities, columnist Thomas Greenaway analyzes the recent case of Alpha I, L.P., a case where the Court of Federal Claims rejected an IRS attempted broad-reaching interpretation of the term “partnership item” in a TEFRA proceeding (Tax Equity and Fiscal Responsibility Act, provisions of which are found in Code Secs. 6221 through 6233). The holding for the taxpayer in this case may signal a need for a revision of the IRS’s approach in these types of cases.

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This story is from the CCH’s monthly Focus on Tax newsletter, which provides advise and guidance on federal and state tax issues for tax and accounting professionals.

Read this article from CCH’s Journal of Taxation of Financial Products

AUTHOR

Wolters Kluwer Tax and Accounting

Wolters Kluwer Tax and Accounting is a leading provider of software solutions and local expertise that helps tax, accounting, and audit professionals research and navigate complex regulations, comply with legislation, manage their businesses and advise clients with speed, accuracy and efficiency. Wolters Kluwer Tax and Accounting is part of Wolters Kluwer N.V. (AEX: WKL), a global leader in information services and solutions for professionals in the health, tax and accounting, risk and compliance, finance and legal sectors. We help our customers make critical decisions every day by providing expert solutions that combine deep domain knowledge with specialized technology and services. Wolters Kluwer reported 2016 annual revenues of €4.3 billion. The company, headquartered in Alphen aan den Rijn, the Netherlands, serves customers in over 180 countries, maintains operations in over 40 countries and employs 19,000 people worldwide. Wolters Kluwer shares are listed on Euronext Amsterdam (WKL) and are included in the AEX and Euronext 100 indices. Wolters Kluwer has a sponsored Level 1 American Depositary Receipt program. The ADRs are traded on the over-the-counter market in the U.S. (WTKWY).

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