Today, the Ninth Circuit issued its opinion in Altera v. Commissioner. In a 2-1 decision, the court upheld the validity of the cost-sharing regulation requiring stock-based compensation be treated as a cost-shared cost, reversing the Tax Court (reaching the same conclusion as the 9th Circuit's previously withdrawn opinion). One of the judges on the three-judge panel dissented. The full opinion can be found here. Because Altera is entitled to seek reconsideration or reconsideration en banc (or possibly seek review by the Supreme Court), the Ninth Circuit's decision is not yet final. We will issue a more detailed Tax Insight on the Altera opinion shortly.
For more information, please contact:
Greg Ossi, Washington, DC
+1 202 414 1409
greg.ossi@pwc.com
Ward Connolly, San Jose
+1 408 817 8234
ward.connolly@pwc.com
Andy Kim, Los Angeles
+1 650 346 3242
andy.kim@pwc.com
