IRS Actions on Decisions

IRS Action on Decision: Backup Withholding Liability Statute of Limitations

The IRS issued an Action on Decision regarding backup withholding liability and the statute of limitations. The Fifth Circuit held that the limitations period for assessing backup withholding liability begins to run upon the filing of Form 1040 and Form 1099-MISC, even if payee TINs are omitted. The IRS disagrees with this interpretation.

IRS: CSX Corp. relocation benefits excludable under RRTA

The IRS has issued an Action on Decision disagreeing with the Eleventh Circuit's interpretation of the Railroad Retirement Taxation Act (RRTA). The IRS will not follow the court's ruling that certain relocation benefits paid by CSX Corp. were excludable from RRTA taxation as business expenses. This decision indicates the IRS's continued stance on taxing such benefits.

Tax Refund for Crude Oil Exports Under Export Clause

The IRS has issued an Action on Decision regarding Trafigura Trading LLC v. United States, addressing whether a tax refund is due for crude oil exports due to the Export Clause of the U.S. Constitution. The case concerns the constitutionality of the tax funding the Oil Spill Liability Trust Fund.

IRS Action on Decision: Complex Media, Inc. v. Commissioner

The IRS has issued an Action on Decision regarding Complex Media, Inc. v. Commissioner. The decision clarifies that a taxpayer is bound by the form of a series of transactions as implemented, resulting in assets received having a carryover basis without a step-up. This action addresses the tax treatment of a Section 351 transaction and subsequent redemption.

Green Rock LLC v. IRS: Notice 2017-10 Invalidated Under APA

The Eleventh Circuit affirmed a lower court ruling invalidating IRS Notice 2017-10, which identified certain syndicated conservation easement arrangements as "listed transactions." The court found the notice invalid under the Administrative Procedure Act for failing to undergo notice-and-comment rulemaking procedures. This decision impacts the IRS's ability to designate listed transactions through sub-regulatory guidance.