Statement of Eileen J. O'Connor, Assistant Attorney General for the Justice Department's Tax Division, on the Federal Circuit Court of Appeals Decision in Coltec Industries, Inc. v. United States

The following press release was published by the US Department of Justice on July 12, 2006. It is reproduced in full below.

FOR IMMEDIATE RELEASE WEDNESDAY, JULY 12, 2006 WWW.USDOJ.GOV TAX (202) 514-2007 TDD (202) 514-1888 “Today’s decision by the United States Court of Appeals for the Federal Circuit confirms that illusionary losses purportedly created by the so-called ‘contingent liability’ tax shelter are not deductible against actual taxable income. The Court’s decision is the second from a United States Court of Appeals to address this tax shelter scheme, and represents a significant advance in the Justice Department’s ongoing effort to combat abusive tax shelters and restore integrity to the tax laws.” 06-426

Source: US Department of Justice