Issue: What tax cases address the limits of the IRS’s discretion to set the minimum minority discount?
| Area of Law: | Tax Law |
| Keywords: | IRS discretion; Minimum minority discount; Limit |
| Jurisdiction: | Federal |
| Cited Cases: | 601 F.3d 763; 423 F. Supp. 2d 605; 461 F.3d 614 |
| Cited Statutes: | None |
| Date: | 12/01/2014 |
Peracchi v. Commissioner, T.C. Memo 2003-280 (Limited Partnership- 6% minority interest discount and 25% marketability discount).
Pierre v. Commissioner, T.C. Memo 2010-106 (LLC- 8% lack of control discount and 30% marketability discount).
Kelly v. Commissioner, T.C. Memo 2005-235 (Limited Partnership-12% minority discount, and 20% marketability discount).
Temple v U.S., 423 F. Supp. 2d 605 (E.D. Tex. 2006) (Limited Partnership – discounts ranging from 3.3% to 60%).
Holman v. Commissioner, 130 T.C. 170 (2008) (Limited Partnership- 4.63%-14.34% minority discounts, and marketability discount 12.5%), rev’d in part, 601 F.3d 763 (8th Cir. 2010).
McCord v. Commissioner, 120 T.C. 358 (2003), rev’d, 461 F.3d 614 (2006).
Knight v. Commissioner, 115 T.C. 506 (2000) (Limited Partnership – 15% discount for minority interest and lack of marketability).
Lappo v. Commissioner, T.C. Memo 2003-258 (Limited Partnership – 8.5% to 19% minority discount and 24% discount for lack of marketability).
Astleford v. Commissioner, T.C. Memo 2008-128 (Limited Partnership – 17% lack of control and 22% marketability discounts).
Godley v. Commissioner, 286 F.3d 210 (4th Cir. 2002) (Partnership – 0% minority discount).
Keller v. U.S., 2009-2 USTC ¶ 60,579 (S.D. Tex. 2009), aff’d, 697 F.3d 238 (5th Cir. 2012).
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