Monte Jackel Quoted in Tax Notes Today on Grecian Magnesite’s New Model for Taxing Nonresident Partners

Monte Jackel, senior counsel in the tax practice at Akin Gump, has been quoted in the Tax Notes Today article “A New Model for Taxation Of Nonresident Partners,” regarding a decision last month by the Tax Court in Grecian Magnesite Mining, Industrial & Shipping Co. SA v. Commissioner pertaining to the taxation of capital gains of nonresident partners.

Jackel pointed out that the government, in Grecian Magnesite, did not argue that under the partnership antiabuse rule, which states that if the IRS determines it is appropriate to treat a partnership as an aggregate of its partners, the taxpayer can rebut that presumption by showing that the tax code clearly provides for entity treatment and the ultimate tax results of that entity treatment. In his view, however, taxpayer success in that showing would be rare, except in Grecian Magnesite.