University of Florida places second at National Tax Moot Court Competition

by Joshua on February 14, 2010

The University of Florida Tax Moot Court Team earned second place in this year’s National Tax Moot Court Competition sponsored by the Tax Section of the Florida Bar. After victories against Louisiana State University, University of Wisconsin, and Charleston Law School, the team argued in the final round before a panel United States Tax Court Judges. The panel included Senior Judge Renato Beghe and Special Trial Judges Lewis R. Carluzzo and Peter J. Panuthos.

This year’s problem asked the participating law students to consider whether an overstatement of basis constitutes an omission from gross income under IRC 6501 and whether a partnership may raise the defense of the reasonable cause exception at the partnership proceeding.  The problem is particularly current in light of the Treasury’s release of Temporary Regulation 301.6501(e)-1T, which states that an overstatement of basis does constitute an omission from gross income. This is contrary to the Supreme Court’s holding in  Colony, Inc. v. Commissioner, 357 U.S. 28 (1958). Recent decisions in the Ninth and Federal Circuit Court of Appeals have affirmed the Colony decision. The Government has appealed the Federal Circuit’s decision in Salman Ranch Ltd. v. U.S., 573 F.3d 1362 light of the new regulations.

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