S&C Lawyers Author Article on Final Cost Sharing Regulations in Tax Management Transfer Pricing Report

January 2012

Ms. Banerjee, Mr. Korb, Ms. Maxwell, Mr. Solomon and Mr. Wang authored an article titled, “Final Section 482 Cost Sharing Regulations: A Renewed Commitment to the Income Method,” which was published in the January issue of Bloomberg/BNA’s Tax Management Transfer Pricing Report. The authors discussed the final U.S. cost sharing regulations and how they provide insight into the IRS’s overall approach to cost sharing, particularly in light of the service’s 2009 loss in the Veritas litigation. The article stated, “Through the issuance of the final regulations, the IRS has explicitly renewed its commitment to certain principles litigated in Veritas with respect to valuing platform contributions.” The authors also highlighted changes from the temporary rules, which were released in December 2008, such as the expanded definition of platform contribution.