September 06, 2022

Monte A. Jackel, Lecturer/Principal, Jackel Tax Law, published a letter to the editor in Tax Notes Federal, a weekly publication of Tax Analysts, Fairfax, VA. "In this letter to the editor, [Jackel] discusses the provision in the new tax law (the Inflation Reduction Act) relating to the tax-free sale of energy tax credits."

Tax Notes Federal
Date: September 5, 2022
By: Monte A. Jackel
Letter To The Editor - Who Is a Partner Under the Inflation Reduction Act of 2022?

"On the 'who is a partner' issue, it is regrettable that the IRS has not provided definitive guidance in the form of a safe harbor or similar-type guidance. The Cross Refined Coal case held, on the facts, that there existed a material risk of failing to receive a return on investment, but the Historic Boardwalk Hall case held, on the facts there, that there was neither a meaningful downside risk (because the court held that the taxpayer in question was certain to recoup its contributions) nor any meaningful upside potential.

In the end, what kind of guidance does this conflict among the cases provide?"

To read the full letter by Monte A. Jackel, click here.