Pat Smith Quoted in Law 360 on Likelihood of Supreme Court Review of Altera CasePDF
IPB attorney Pat Smith was quoted in a Law 360 article on the likelihood that the Supreme Court might agree to review the Ninth Circuit decision in Altera, reversing the Tax Court’s decision holding that the provision in the section 482 regulations requiring companies to share the costs of stock-based compensation violated the Administrative Procedure Act’s arbitrary and capricious standard, now that the Ninth Circuit has denied Altera’s petition for en banc review of the panel decision. Admin. Law Could Pave Way For High Court Tax Regs Fight.
Patrick J. Smith, a partner with Ivins Phillips & Barker Chtd., said a potential Supreme Court petition from Altera should focus on the administrative law element of the case.
The panel "decided the case based on a rationale that was not relied on by the Treasury at the time these regulations were issued,” he said. “That’s a fundamental violation of basic administrative law principles.”