State of Virginia Weighs in Against the IRS in Virginia Historic

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August 11, 2010

Virginia has filed an amicus brief in the Fourth Circuit in support of the taxpayers in the Virginia Historic case.  (See here and here for previous coverage of the appeal).  The brief focuses primarily on policy, arguing that Virginia created these tax credits to facilitate historic preservation and expected that partnership vehicles might be necessary for businesses and individuals to make use of the credits.  According to the Commonwealth, “the IRS’s aggressive position threatens the effectiveness of the program and its benefits for all Virginians.”  Although the amicus brief is light on analysis of the federal tax issues, it may well help persuade the Fourth Circuit that this is not a case where it needs to step in to prevent some kind of taxpayer “hanky-panky,” but rather that going along with the Tax Court would be “doing the right thing.”

Virginia Historic – Amicus Brief of Commonwealth of Virginia