Faculty Notes

Prof. Linda Galler Quoted in Law360 Article on Microsoft Ruling

Linda Galler, Professor of Law

Microsoft Ruling Highlights Need to Document Biz Decisions
By Natalie Olivo
Law 360
January 30, 2020

A Washington federal judge recently took a broad interpretation of what constitutes a tax shelter when ordering Microsoft to turn over documents to the Internal Revenue Service — a decision that companies shouldn’t ignore during their own correspondence with practitioners.

The judge based his definition of a tax shelter on Internal Revenue Code Section 6662 , which describes such arrangements as having “a significant purpose” of tax avoidance or evasion. But such a literal reading of the statute could cover routine tax advice, according to Linda Galler, a professor at the Hofstra University Maurice A. Deane School of Law.

“When you talk about routine advice that a tax professional gives a client, the mere fact that there is a significant tax issue — putting statutory language aside — in my mind doesn’t mean that we’re talking about a tax shelter,” she said.

Read the full article on the Law360 website.