Interior Glass Systems, Inc. v. United States

The Ninth Circuit affirmed the district court's grant of summary judgment for the United States in a tax refund action. On appeal, taxpayer argued that the penalties were wrongly imposed because it did not actually participate in a listed transaction and thus had nothing to disclose, and that its due process rights were violated because it was not afforded an opportunity for pre-collection judicial review.The court found neither contention meritorious, holding that taxpayer was required to disclose its participation in the transaction at issue because it was similar to the listed transaction identified in Notice 2007-83. The court held that taxpayer could not evade a finding of substantial similarity solely by claiming a deduction on a different basis or by using a different intermediary to complete the transaction. The court also held that taxpayer received all the process it was due where the combination of pre-collection administrative review plus post-collection judicial review satisfied the requirements of the Due Process Clause. View "Interior Glass Systems, Inc. v. United States" on Justia Law