United States Ninth Circuit

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Altera Corp. v. Commissioner of Internal Revenue, 16-70496

Upheld an Internal Revenue Service regulation addressing the tax treatment of employee stock options. In a ruling that has tax implications for multinational companies especially, the Ninth Circuit concluded that the Tax Court erred in striking down a regulation, 26 C.F.R. section 1.482-7A(d)(2), which says that related entities must share the cost of employee stock compensation in order for their cost-sharing arrangements to be classified as qualified cost-sharing arrangements and thus avoid an IRS adjustment. The panel held that the regulation was entitled to Chevron deference.

Appellate Information

  • Decided
  • Published 2018/07/24


  • Thomas


  • United States Ninth Circuit