Pat Smith Quoted in Daily Tax Report on Expiration of Section 482 Regulations on AggregationPDF
Ivins attorney Pat Smith was quoted in an article in Bloomberg BNA’s Daily Tax Report on the significance of the expiration of temporary regulations under section 482 on the aggregation of transactions. Multinationals Face Gap in IRS Transfer Pricing Valuation Rules.
Because the 2015 temporary and proposed regulations cross-referenced each other, the existence of the proposed regulations could also allow the Service to finalize the now-expired temporary rules in the future, said Patrick Smith, a partner at Ivins, Phillips and Barker.
“I think they could issue, a week from today, final regs saying exactly the same thing, and not have any procedural defect as a result,” Smith told Bloomberg Tax. “The existence of the proposed reg means that the expired temporary reg could still be made final whenever the IRS wants to.”
“The cross-reference in the proposed regs to the provisions in the temporary regs should provide sufficient notice to interested parties that the rules in the temporary regulations continue to be what the IRS and Treasury view as the right provisions,” he added in an email to Bloomberg Tax.