Tax News Update    Email this document    Print this document  

January 21, 2021
2021-0145

Tax Court holds IRS properly denied deductions/credits to company that failed to file returns until after the IRS prepared substitutes

In a T.C. Opinion (Adams Challenge (UK) Limited v. Commissioner), the Tax Court has held a UK corporation that owned a vessel chartered by a US firm to help decommission offshore oil wells is not entitled, under IRC Section 882(c)(2), to deductions or credits for the tax years at issue because it did not submit tax returns for those years until after the IRS prepared substitute returns. The Court also held IRC Section 882(c)(2) does not violate the business profits or nondiscrimination article of the US-UK income tax treaty.

 

The information contained herein is general in nature and is not intended, and should not be construed, as legal, accounting or tax advice or opinion provided by Ernst & Young LLP to the reader. The reader also is cautioned that this material may not be applicable to, or suitable for, the reader's specific circumstances or needs, and may require consideration of non-tax and other tax factors if any action is to be contemplated. The reader should contact his or her Ernst & Young LLP or other tax professional prior to taking any action based upon this information. Ernst & Young LLP assumes no obligation to inform the reader of any changes in tax laws or other factors that could affect the information contained herein.

 

Copyright © 1996 – 2024, Ernst & Young LLP

 

All rights reserved. No part of this document may be reproduced, retransmitted or otherwise redistributed in any form or by any means, electronic or mechanical, including by photocopying, facsimile transmission, recording, rekeying, or using any information storage and retrieval system, without written permission from Ernst & Young LLP.

 

EY US Tax News Update Master Agreement | EY Privacy Statement