Page 113 - TaxAdviser_Jan_Apr23_Neat

TAX TRENDS

transactions when it amended mon- the idea that congressional oversight (REG-106134-22), which will un-
etary penalties in Sec. 6707A but did hearings, written statements by the dergo notice-and-comment procedures
nothing regarding the IRS’s practices respective chairs of the Senate Finance (including, as the IRS stated, due
for identifying listed transactions. The Committee at the oversight hearings, consideration of public comments) that
court noted that, as the Sixth Circuit and testimony related to these transac- identify certain conservation syndicated
had expressed, “[i]naction may, but tions from executive branch members easement transactions as listed transac-
does not always, mean ratification” and could serve as express congressional tions. The IRS stated it will also in the
“rarely suffices to show express modifi- intent sufficient to override the require- near future issue more proposed regula-
cation of the APA’s bedrock procedural ments of the APA with respect to tions that identify additional transac-
guarantees given the raft of potential Notice 2017-10. tions as listed transactions.
explanations for inaction on Capitol Green Valley Investors, LLC, 159
Hill” (Mann Constr., Inc., 27 F.4th at Reflections T.C. No. 5 (2022) ■
1147). In a footnote, the Tax Court stated:
In a final argument, the IRS claimed “Although this decision and subsequent
that a committee print from 2020 order are applicable only to petitioner, Contributor
relating to continued congressional the Court intends to apply this decision
oversight of syndicated conservation setting aside Notice 2017-10 to the James A. Beavers, CPA, CGMA, J.D.,
easement transactions was persuasive benefit of all similarly situated taxpay- LL.M., is The Tax Adviser’s tax techni-
evidence that Congress intended to ers who come before us.” In response cal content manager. For more infor-
override the APA’s applicability to the to this case and the Mann Construction mation about this column, contact
IRS’s listing of transactions. How- case, the IRS relented to the court’s thetaxadviser@aicpa.org.
ever, the Tax Court refused to accept view. It issued proposed regulations

Welcome to

the age of

specialization.

When you become a member of an AICPA specialized section,
®
you’re joining an elite community of like-minded peers. You’re also giving
yourself high-quality, curated content, free CPE and webcasts on hot topics, delivered
by the sharpest minds in the profession. Most of all, you’ll get the needed support
to flourish and grow.
Learn more or join today: aicpa.org/sections

© 2021 Association of International Certified Professional Accountants. All rights reserved. 2103-62839

2103-62839 Section Ads_CMYK.indd 2 4/29/21 9:40 AM
58 February 2023 The Tax Adviser