An Action on Decision (AOD) is a formal memorandum prepared by the IRS Office of Chief Counsel that announces the future litigation position the IRS will take with regard to the court decision addressed by the AOD.

The following list initially presents these documents in reverse chronological order, from the present back to calendar year 1997.

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2001-08 N.Dakota State Univ v. USA, 84 F. Supp. 1043 (D.N.D. 1999), The Eighth Circuit held that a payment made to a tenured faculty member under the taxpayer's early retirement program was made in exchange for the relinquishment of the tenured faculty member’s contractual and constitutionally-protected tenure rights rather than as remuneration for services to taxpayer. The court cited Rev. Rul. 58-301, 1958-1 C.B. 23, as support for its decision and rejected the government's argument that 01/01/2002
2001-06 Therese Hahn v. Commissioner, 110 T. C. No. 140 (1998) Reflects the Service's acquiescence in the court's conclusion that the 1981 amendment did not expressly repeal the effective date of section 2040(b)(1), since there is no language in the 1981 amendment that specifically repeals the effective date of subsection (b)(1). The Court also held that the 1981 amendment did not impliedly repeal the effective date of section 2040(b)(1), because section 2040(b)(1) enacted in 1976 and the 1981 amendment to 10/18/2001
2001-05 Mesa Oil, Inc. v. United States. Reflects the Service's nonacquiescence whether a verbatim recording of a collection due process (CDP) hearing is required under §§ 6320 and 6330 to create a judicially reviewable administrative record. The district court held the administrative record to be inadequate for judicial review under section 6330(d)(1)(B), because “no record of the hearing was made, and no analysis of the evidence or arguments was presented in the 08/23/2001
2001-04 Exxon v. Commissioner, 113 T. C. No. 338 (1999). Reflects the Service's acquiescence in result only in the court's conclusion, with respect to the net income issue, that the PRT allowances effectively compensated for the nondeductibility of interest expense and that the PRT, in its predominant character, constituted a tax in the nature of an income or excess profits tax in the U.S. sense. In reaching this holding, the Court relied on “representative industry data” presented at trial by Exxon. The Court 08/17/2001
2001-03 Farmland Industries, Inc. v. Comm., T.C. Memo. 1999-388 T.C. Reflects the Service's acquiescence in the Court's conclusion that held that each corporation was formed, operated, and sold to facilitate the petitioner's petroleum business. Because a sufficient nexus to the patronage business existed, the court found the stock not to be an investment and held its sale generated patronage income or loss. Likewise, the section 1231 assets were found to be used in the petitioner's 03/27/2001
2001-02 Arnold W. Vinick v. USA, 205 F.3d 1 (1st Cir. 2000). Reflects the Service's nonacquiescence in the First Circuit's reversal of the lower court's decision that Vinick was liable as a responsible person under section 6672 for the unpaid withholding taxes of Jefferson Bronze Company. The First Circuit held that the lower courts' findings of fact were 'based on a misunderstanding of the legal standard for what constitutes a responsible person.' The court further stated that [a]bsent a 02/27/2001
2001-01 Security State Bank v. Comm., 214 F.3d 1254 (10 th Cir. 2000). This Action on decisions reflects the Service's acquiescence in the Court's conclusion that neither section 1281(a)(1) nor section 1281(a)(2) were applicable to short-term loans made in the ordinary course of business. 01/29/2001
2000-09 Weisbart v. United States Dept of Treas. & IRS. Reflects the Service's acquiescence with the United States Court of Appeals for the Second Circuit's decision that section 7502 treats the claim as filed on the date of mailing (August 17, 1995) because the taxpayer mailed the claim on the last day of the period prescribed for filing the claim with respect to the withheld taxes. Pointing to Treas. Reg. §§ 301.6402-3(a)(5) and 301.7502-1, the Second 11/17/2000
2000-08 John D. Shea v. Commissioner, 112 T.C. 183 (1999) The Tax Court held that the burden of proof should be placed on the Commissioner with respect to the section 66(b) issue. Rather than relying on established case law for its determination as to whether the section 66(b) issue was new matter, the court incorporated section 7522 into its analysis. Section 7522 requires the Commissioner to issue a notice of deficiency which contains a description of the basis for the Commissioner's tax 11/03/2000
2000-06 Diane Fernandez v. Commissioner, 114 T. C. No 21. Reflects the Service's acquiescence in the court's conclusion holding that when a taxpayer makes a requisite election under sections 6015(b) and/or (c) along with its request under section 6015(f), and files a timely petition with the Tax Court pursuant to section 6015(e), the Tax Court has jurisdiction to review the request for innocent spouse relief under all subsections of section 6015.The court reasoned that the statutory language gave 09/25/2000
2000-07 Kathy A. King v. Commissoner, 115 T.C. No. 8 (Aug 10, 2000). Reflects the Service's acquiescence in the Court's conclusion that held that the nonpetitionering spouse was entitled to notice and an opportunity to intervene. The Tax Court reasoned that the rationale for the notice and intervention rules of section 6015(e)(4), i.e., fairness to the nonelecting spouse to be heard in order to ensure that innocent spouse relief is granted on the merits after taking into account all relevant 09/25/2000
2000-04 Smith v. Comm, 198 F.3d 515 (5th Cir. 1999), rev'g, 108 T.C. 412. The Tax Court upheld the Commissioner’s determination that the claim against the estate should be limited to the amount actually paid. The Tax Court held that, '[w]here a claim is disputed, contingent, or uncertain as of the date of the decedent's death, the estate is not entitled to a deduction until the claim is resolved and it is determined what amount, if any, will be paid. It is this latter amount that is allowed as a deduction.' 108 T.C. at 419. 05/09/2000
2000-05 Osteopathic Medical v. Commissioner, 113 T.C. No. 26. This Action on Decision reflects the Service's acquiescence in the court's conclusion that held that the taxpayer was not required to account for inventories or to use an accrual method of accounting based on its determination that the furnishing of chemotherapy drugs was not a sale of merchandise within the meaning of Treas. Reg. § 1.471-1. Osteopathic Medical Oncology and Hematology, P.C. v. Commissioner, 113 T.C. No. 26 (No. 11551-98 Nov. 22, 1999). 04/29/2000
2000-03 Simpson v. United States, 183 F.3d 812 (8th Cir. 1999). Reflects the Service's nonacquiescence in the Court's conclusion, that under the plain language of TRA 86 section 1433(b)(2)(A), the statutory protection applies to transfers under trusts that were irrevocable on September 25, 1985, because Congress intended to protect trust creators who relied on the law as it existed at the time the trust became irrevocable. The district court in Simpson v. United States, 17 03/04/2000
1999-02 Larotonda v. Commissioner, AOD CC-1998-010. An action on decision stating that the Service will not acquiescence to the Court's conclusion in Larotonda. Recent legislation warrants the withdrawing of this AOD. The statutory provision effectively at issue in Larotonda was modified by the Restructuring and Reform Act of 1998, Pub. L. No. 105-206, 112 Stat. 685 (1998), enacted on July 22, 1998. Section 3436 of the Act amends section 72(t) to provided that the early distribution tax shall not apply to a distribution made on account of a levy 03/03/2000
1997-01 Xerox Corporation v. United States, 41 F.3d 647 (Fed. Cir. 1994). Reflects the Service's disagreement that the U.S.-U.K. Income Tax Treaty allows a United States corporation to treat advance tax paid by a U.K. subsidiary as a creditable tax under I.R.C. § 902(a). 03/03/2000
1997-05 Hurt v. USA, 70 F.3d 1261 (4th Cir. 1995). Reflects the Service's disagreement with the Fourth Circuit's opinion that the Service was not entitled to collect statutory interest on the taxes assessed pursuant to a Tax Court decision based upon a settlement agreement. 03/03/2000
1999-01 Eisenberg v. Comm., 155 F. 3d 50 (2d Cir. 1998). This Action on Decision reflects the Service's acquiescence in the Court's conclusion, to the extent, that it held that there is no legal prohibition against the discount in the value of a gift of closely held stock by an amount attributed to the potential capital gains tax liability of the corporation upon liquidation, or upon the sale or distribution of its assets. The applicability of such a discount, as well as its amount, will hereafter be treated as factual matters to be determined by competent expert testimony. 03/03/2000
1999-10 Boyd Gaming Corporation v. Comm., 9th Cir. 1999. Reflects the Service's acquiescence in the Court's conclusion that held that the taxpayer's particular security and other business-related concerns provided sufficient justification for its policy of requiring employees to stay on the employer's business premise to satisfy "the convenience of the employer" test of section 119. In applying section 119 and Treas. Reg. § 1.119-1, the Service 03/03/2000
1999-17 Duke Energy Natural Gas Corporation v. Comm. Reflects the Service's nonacquiescence in the court's conclusion holding that natural gas gathering systems are property includible in asset class 13.2 and must be depreciated over a 7-year period. 03/03/2000
1997-02 United States v. Kao, 81 F.3d 114 (9th Cir. 1996). Reflects the Service's acquiescence in the result that the Service could not, by issuing summonses, compel taxpayers to sign consent directives authorizing the release of records from unidentified domestic and foreign banks. 03/03/2000
1998-04 Fredericks v. Commissioner, No. 96-7748. Reflects the Service's agreement with the circuit court's ruling that, based upon the particular facts of this case, the Service was equitably estopped from relying upon a Form 872-A to indefinitely extend the period of imitations for making an assessment when the Service's actions misled the taxpayer into believing that the form was not in effect. 03/03/2000
1997-10 Sun Microsystems, Inc. v. Commissioner, T.C.M. 1995-69. Reflects the Service's agreement that the income recognized by the taxpayer's employees under I.R.C. § 421(b) on the "disqualifying disposition" of incentive stock options were includable as "wages" incurred as a research expense in calculating the taxpayer's credit for increasing research expenses under I.R.C. § 41. 03/03/2000
1999-03 Murillo v. Commissioner, T.C. Memo. 1998-13. This Action on Decision reflects the Service's acquiescence in the Court's conclusion, in this case, that the Individual Retirement Account (IRA) forfeiture was similar to the Service's levy on a Keogh account in Larotonda v. Commissioner, 89 T.C. 287 (1987) (involving the predecessor to section 72(t)), and was outside the class of early distributions that Congress intended to discourage in enacting section 72(t). 03/03/2000
1997-04 Duncan v. U.S., Docket No. 95-228 (U.S. D.C.,E.D. Ky.) Reflects the Service's agreement that disability benefits paid from a Kentucky policemen and firefighter's retirement fund can be excluded from gross income under I.R.C. § 104(a)(1) as benefits paid under a statute in the nature of a workmen's compensation act. 03/03/2000

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