Exelon Corp. v. Commissioner – Expert independence: Interfere at your own risk

Description

Abstract: Professional standards require valuation experts to perform assignments with impartiality, objectivity and independence. This article summarizes a recent U.S. Tax Court opinion that serves as a cautionary tale for attorneys who would seek to influence an expert’s conclusions. The court found that a law firm’s interference in the valuation process tainted the expert’s opinion and rendered it “useless.” A sidebar explains why taxpayers can’t hire experts as an “insurance policy” against blatant tax avoidance strategies. Exelon Corp. v. Commissioner, 147 T.C. No. 9, September 19, 2016