Skip to Main Content
 

David Rosenbloom and Elizabeth Stevens Submit Amicus Brief to Uphold Decision Favoring Amazon in IRS Transfer Pricing Dispute

July 9, 2018, Law360

Two law professors have urged the Ninth Circuit to uphold a U.S. Tax Court decision in favor of Amazon.com Inc. in a transfer pricing dispute with the Internal Revenue Service, saying the agency was relying on an incorrect reading of cost-sharing regulations. The amicus brief was authored by New York University School of Law professors H. David Rosenbloom and John P. Steines Jr., and submitted by Elizabeth Stevens on Friday. Stevens is an associate and Rosenbloom a member of Caplin & Drysdale, Chtd.

The IRS’ interpretation that residual business assets such as goodwill and going concern value be compensated under cost-sharing agreements did not apply in 2005 when Amazon made an agreement that granted its European affiliate certain asset rights, said the professors in the amicus brief. Instead, the professors said, the agency is trying to retroactively apply changes made to the cost-sharing rules in 2009.

“In 2009, after the transactions at issue, the commissioner made sweeping changes to the applicable rules,” the brief said. “He now contends, in effect, that the new and dramatically expanded rules covered Amazon’s CSA. Regulatory and legislative history confirm they did not.”

For the full article, please visit Law360’s website (subscription required).

Excerpt taken from the article “NYU Professors Urge 9th Circ. To Uphold Amazon Tax Win” by Yvonne Juris for Law360.

________________________________________________

About Caplin & Drysdale
Having celebrated our 50th Anniversary in 2014, Caplin & Drysdale continues to be a leading provider of taxtax controversy, and litigation legal services to corporations, individuals, and nonprofits throughout the United States and around the world. We are also privileged to serve as legal advisors to accounting firms, financial institutions, law firms, and other professional services organizations.
The firm's reputation over the years has earned us the trust and respect of clients, industry peers, and government agencies. Moreover, clients rely on our broad knowledge of the law and our keen insights into their business concerns and personal interests. Our lawyers' strong tactical and problem-solving skills -- combined with substantial experience handling a variety of complex, high stakes, matters in a boutique environment -- make us one the nation's most distinctive law firms.
With offices in New York City and Washington, D.C., Caplin & Drysdale's core practice areas include:
For more information, please visit us at www.caplindrysdale.com.
Washington, DC Office:
One Thomas Circle NW
Suite 1100
Washington, DC 20005
202.862.5000
New York, NY Office:
600 Lexington Avenue
21st Floor
New York, NY 10022
212.379.6000
___________________________
Disclaimer
This communication does not provide legal advice, nor does it create an attorney-client relationship with you or any other reader. If you require legal guidance in any specific situation, you should engage a qualified lawyer for that purpose. Prior results do not guarantee a similar outcome.
Attorney Advertising
It is possible that under the laws, rules, or regulations of certain jurisdictions, this may be construed as an advertisement or solicitation.
© 2018 Caplin & Drysdale, Chartered
All Rights Reserved.