The US Court of Appeal reversed a decision from the Tax Court that 26 C.F.R. § 1.482-7A(d)(2), under which related entities must share the cost of employee stock compensation in order for their cost-sharing arrangements to be classified as qualified cost-sharing arrangements and thus avoid an IRS adjustment, was invalid under the Administrative Procedure Act.
The Court of Appeal ruled that the Commissioner of Internal Revenue had not gone beyond the authority delegated under 26 U.S.C. § 482, and that the Commissioner’s rule-making authority complied with the Administrative Procedure Act.
The Opinion was shortly after (August 7, 2018) withdrawn by the Court of Appeal – see below.
A new Decision was issued June 7, 2019
The Annulment issued August 7, 2018:US-vs-Altera-16-70496-Withdrawn