07 August 2018 Ninth Circuit withdraws opinion in Altera which held that stock-based compensation was a compensable cost under Section 482 The Ninth Circuit has withdrawn its opinion issued on July 24, 2018, in Altera in which it reversed the Tax Court ruling and held that stock-based compensation was a compensable cost under Section 482. In Altera v. Comm'r, 145 T.C. 91 (2015), the Tax court had previously ruled that a 2003 regulation that required participants in a cost sharing arrangement to treat stock-based compensation costs (SBC costs) as compensable was invalid. One of the three judges on the panel that had heard the appeal, Judge Stephen Reinhardt, passed away prior to the issuance of the opinion but after oral arguments and after formally concurring in the majority opinion. On August 2, 2018, the clerk of the court issued an order naming Judge Susan Graber to replace Judge Reinhardt on the panel hearing the case. On August 7, 2018, the Ninth Circuit published an order withdrawing the opinion "to allow time for the reconstituted panel to confer on this appeal." Document ID: 2018-9018 |
