Tax
Aug. 27, 2014
Circuit court clears confusion over tax-sharing agreements
A new decision is instructive in how to draft tax-sharing agreements that specify each subsidiary's tax liability in a consolidated return as well as the allocation of refunds. By Stephen Turanchik, Nancy Iredale and Haley Horton
Stephen J. Turanchik
Attorney
Paul Hastings LLP
Email: stephenturanchik@paulhastings.com
Stephen is an attorney in the Tax practice of Paul Hastings and is based in the firm's Los Angeles office. Mr. Turanchik's practice focuses on tax controversy and litigation at the state and federal levels and tax advice on international reporting.
On July 8, the 6th U.S. Circuit Court of Appeals reversed and remanded the district court's decision in FDIC v. AmFin Financial Corporation, holding that it erred in refusing to consider the FDIC's extrinsic evidence that the parties intended to establish an agency or trust relationship in their tax-sharing agreement.
The dispute centered on ownership of a $170 million tax refund that the Internal Revenue Service issued to the AmFin Financial Corporation, the parent compa...
For only $95 a month (the price of 2 article purchases)
Receive unlimited article access and full access to our archives,
Daily Appellate Report, award winning columns, and our
Verdicts and Settlements.
Or
$795 for an entire year!
Or access this article for $45
(Purchase provides 7-day access to this article. Printing, posting or downloading is not allowed.)
Already a subscriber?
Sign In