Consolidated Groups and the "Same-Taxpayer" Issue Under Section 6621(d)

Business Entities


In this article, Steve Dixon analyzes one issue of statutory interpretation that pertains to interest netting claims. He addresses the chronology of the statutory interpretation of the term "same taxpayer" as it is applied in the context of consolidated groups. "When an agency like the IRS has a vested interest in a particular interpretation, it requires vigilance by taxpayers and the courts to keep the interpretation from going off the rails," he said.

"The article is not meant ... to merely serve as a cautionary tale about the hazards of statutory interpretation. By tracing the chronology of the 'same taxpayer' issue under Section 6621(d), the article should provide corporate taxpayers with an overview of the existing law and guidance regarding this term," Dixon said. "The article also gives taxpayers some ammunition on an issue where the IRS has sometimes taken an aggressive and demonstrably incorrect stance."