Top 6 Tax Cases to Watch in the Second Half of 2016

A number of high-profile tax issues affecting companies with business interests in the United States and across the globe are coming to a head in U.S. courts in the next few months.

Law360 highlighted six tax cases to watch in the second half of 2016, including upcoming battles over online retailers’ sales tax obligations, an interstate tax agreement, the IRS whistleblower program and offshore accounts, and transfer pricing.

Fenwick tax partner Larissa Neumann spoke with Law360 about some of these upcoming cases and what to look for.

Among the most closely watched centers on the IRS’s long-running audit of Microsoft. The outcome of U.S. vs. Microsoft Corp. is of interest because of the transfer pricing questions it raises and the billions of dollars at stake. It also could determine the extent to which the government can use private lawyers in an audit.

“This could be the largest transfer pricing issue to date. IRS officials have stated that this is one of the largest audits in IRS history,” Neumann said.

Another case drawing interest is Altera Corp. against Commissioner in the U.S. Court of Appeals for the Ninth Circuit. Neumann told Law360 that this case has implications not only in the transfer pricing context, but also in the broader administrative law context, as it “establishes a great precedent for attacking the IRS’ abuse of discretion in issuing regulations without reasoned decision-making.

The full article is available through the Law360 website (subscription required).