Kligfeld Holdings, Kligfeld Corporation, Tax Matters Partner - Page 3

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          the FPAA was issued, more than three years had passed since that            
          partnership filed its 1999 tax return.  The Commissioner says               
          that it doesn’t matter--the three-year restriction is only on               
          assessments, not on adjustments.  Kligfeld’s partnership has                
          moved for summary judgment, arguing that three years means three            
          years and the Commissioner’s FPAA was too late.                             
               This case is one battle in the Commissioner’s war against an           
          alleged tax shelter called Son-of-BOSS.3  Son-of-BOSS is a                  
          variation of a slightly older alleged tax shelter known as BOSS,            
          an acronym for “bond and options sales strategy.”  There are a              
          number of different types of Son-of-BOSS transactions, but what             
          they all have in common is the transfer of assets encumbered by             
          significant liabilities to a partnership, with the goal of                  
          increasing basis in that partnership.  The liabilities are                  
          usually obligations to buy securities, and typically are not                
          completely fixed at the time of transfer.  This may let the                 
          partnership treat the liabilities as uncertain, which may let the           
          partnership ignore them in computing basis.  If so, the result is           
          that the partners will have a basis in the partnership so great             

               2 It should be remembered that the facts described in this             
          section are meant to illuminate the summary judgment motion--               
          they have not been found to be true after a trial.                          
               3 See also G-5 Inv. Pship. v. Commissioner, 128 T.C. ___               

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