United States Federal Circuit
Stobie Creek Inv. LLC. v. US, 08-5190
In a tax refund suit involving the "Son of BOSS" tax shelter, Court of Federal Claims' decision upholding the Notices of Final Partnership Administrative Adjustment determinations and associated penalties is affirmed where: 1) the district court properly disregarded a series of transactions under the economic substance doctrine; 2) plaintiff was properly subject to accuracy-related penalties under 26 U.S.C. section 6662; 3) the reasonable-cause defense in 26 U.S.C. section 6664(c)(1) does not apply because it was not reasonable for plaintiff to rely on the advice of professionals in promoting and implementing the tax shelter; and 4) testimony of plaintiff's expert was properly excluded under Federal Rule of Evidence 702.
Appellate Information
- Decided 06/11/2010
- Published 06/11/2010
Judges
Court
- United States Federal Circuit