Fourth Quarter Newsletter 2018

As previously reported by Ropes & Gray, on July 24, 2018, the Ninth Circuit reversed the Tax Court’s prior decision in the Altera case and upheld the IRS regulation requiring the allocation of stock-based compensation in qualified cost-sharing agreements. The decision was particularly notable since it ended in a 2-1 vote, in which Judge Reinhardt,

In an unexpected 2-1 decision, Judge Reinhardt, who passed away in March of this past year, cast the Ninth Circuit’s deciding vote to reverse the Tax Court’s prior ruling in Altera. In 2015, the Tax Court invalidated Treasury Regulation 1.482-7A(d)(2)’s requirement that related parties allocate stock-based compensation costs when entering into cost-sharing agreements to

Move over, South Dakota v. Wayfair Inc. During the long debate over the U.S. Supreme Court’s physical presence standard for state sales taxes, a quiet revolution in state corporate income taxes has been taking place — the shift to market-based sourcing for services income. By the early 2000s, only a smattering of states had