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Ninth Circuit’s decision upholding section 482 stock-based compensation regulations is final

Section 482 stock-based compensation regulations

A decision of the U.S. Court of Appeals for the Ninth Circuit is reported to be final.


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On November 20, 2019, the U.S. Court of Appeals for the Ninth Circuit issued the mandate, formally entering judgement of its June 7, 2019 decision, Altera Corp. v.  Commissioner.  The mandate is issued seven days after the denial of a petition for rehearing en banc, unless a motion to stay the mandate is granted pending a petition for certiorari to the U.S. Supreme Court.  On November 12, the Ninth Circuit denied the taxpayer’s motion for rehearing en banc. Read TaxNewsFlash for a KPMG report on the petition for rehearing en banc.

In June 2019, the Ninth Circuit reversed a 2015 decision of the Tax Court that had invalidated a Treasury regulation under section 482 (Reg. § 1.482-7A(d)(2)) that requires participants in a qualified cost-sharing arrangement (QCSA) to share the cost of employee stock-based compensation. Read TaxNewsFlash for a KPMG report on the June 2019 decision by the Ninth Circuit.

The taxpayer has 90 days from November 12, 2019 (the date of the denial of the motion for rehearing en banc) to file a petition for certiorari with the U.S. Supreme Court. 


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