Supreme Court Shouldn’t Take Loan Guarantee Tax Case, IRS Says

There is no reason for the U.S. Supreme Court to review the treatment of loan guarantees by controlled foreign corporations as taxable income, the IRS said in a court filing.

A Delaware-based partnership in September asked the high court to review a Third Circuit decision upholding the IRS’s determination that the partnership should have included about $380 million in its taxable income for 2007-08. The partnership, SIH Partners LLLP, argued that the Third Circuit’s opinion was “serious flawed” and in conflict with several other appellate courts.

The IRS, in a Dec. 2 brief, argued the partnership’s arguments have no ...