International Tax Cases to Watch in 2024

International Tax Cases to Watch in 2024

January 1, 2024, Law360

Kevin Otero’s commentary was included in a Law360 article that provided insight into major tax cases being considered in 2024. Kevin offered his insight on an Eighth Circuit case involving Minnesota-based company Medtronic, with transfer pricing approaches that fall under the "unspecified method" of Section 482 regulations at issue.

Kevin noted that practitioners will be watching the Eighth Circuit's review of the case for some guidance and clarity on how much latitude there is with the unspecified method. In addition to issues about how to approach the method in terms of accuracy and reliability, the case could also address questions about when it's appropriate to depart from traditional transfer pricing methods, he said. In adopting unspecified methods, Kevin asked, "how much authority is there to pursue unspecified methods, given that the regime prescribes traditional methods?"