ABA Tax Administrative Practice Committee Meeting - Subcommittee on IRS Liaison Activities
07.20.16Steven R. Dixon will speak on the monthly conference call meeting of the ABA Tax Administrative Practice Committee - Subcommittee on IRS Liaison Activities on July 20, 2016. Dixon will present about the Wells Fargo case, where the Federal Circuit's decision addressed issues concerning application of the interest netting rules. The Federal Circuit held that when two separate entities, one with an underpayment and the other with an overpayment, merge into a single entity, they are not the same taxpayer. However, under section 6621(d), an acquired entity with a pre-merger overpayment may be considered the same taxpayer as a post-merger surviving entity that acquired it. The decision clarifies the law and opens the door for substantial refund claims by companies affected by mergers and acquisitions.