Steve Dixon Quoted Regarding Wells Fargo Interest Netting Decision in Tax Notes Today

"News Analysis:  Wells Fargo Solves a Netting Problem, but More Remain"
Tax Notes Today
07.14.14Steve Dixon was quoted regarding the recent decision in the Court of Federal Claims finding that Wells Fargo was able to use underpayments or overpayments from acquired entities for interest-netting claims when those entities were statutorily merged with Wells Fargo. "If you merge, it's hard [for the IRS] to argue that you don't become the same taxpayer. You become the same taxpayer for all other purposes." In Wells Fargo, the court explained that taxpayers should only be charged interest on the amount they actually owe. "This notion of what the taxpayer actually owes informs the taxpayer's argument that if you are liable for underpayment interest and entitled to overpayment interest, you are the taxpayer who owes and you ought to be able to benefit from netting," Dixon said, adding that in Wells Fargo, "the court correctly focused on the legal liability for the tax." The article discusses the extension of this principle to the consolidated-group context.
Related Files
Related Links