-281-
relevant facts. Sec. 1.6662-4(d)(2), Income Tax Regs. There is
substantial authority for a position if the weight of the
authorities supporting the treatment is substantial in relation
to the weight of authorities supporting contrary treatment. Sec.
1.6662-4(d)(3)(i), Income Tax Regs. Because the substantial
authority standard is an objective standard, the taxpayer’s
belief that there is substantial authority for the tax treatment
of an item is not relevant in determining whether there is
substantial authority for that treatment. Id. Relevant
authorities for this purpose are limited to materials such as
applicable provisions of the Code, regulations, revenue rulings
and revenue procedures, court cases, and legislative history.
Sec. 1.6662-4(d)(3)(iii), Income Tax Regs.197
Petitioner has cited no substantial authority that might
provide a basis for reducing any understatement of income tax.
In the first place, the transaction between the Ackerman group
and CDR, Generale Bank, and CLIS, had no economic purpose. The
transaction’s sole purpose was to transfer approximately $1.7
billion in built-in tax losses from the banks to Somerville S
Trust in exchange for a $10 million cash payment. Although these
197 Conclusions reached in legal opinions or opinions
rendered by tax professionals are not authority; however, the
authorities underlying such expressions of opinion where
applicable to the facts of a particular case may give rise to
substantial authority. Sec. 1.6662-4(d)(3)(iii), Income Tax
Regs.
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