Wednesday, December 24, 2008
"But the Treasury's and IRS's notice troubled many tax experts, who saw it as a strike against a portion of the tax law known as Section 382 that was intended to prevent companies from buying other companies solely for their tax losses. 'There's real doubt that the Treasury and the IRS even have the authority to issue this notice,' [Robert] Willens said, 'What they did was nullify a portion of the statute that Congress had enacted. It's certainly the consensus of tax experts that [Treasury and the IRS] have overstepped their bounds'," my emphasis, Heidi Moore at the WSJ, 10 December 2008.
I agree with Willens, and see no basis for IRS suspending Section 382 to facilitate Wells Fargo's Wachovia purchase. John Calhoun, nullification proponent, must be dancing.