Charles E.Hodges II (Chuck)

Erfahrung

The following represents experience acquired prior to joining Jones Day.

Represented in the Sixth Circuit Court of Appeals a taxpayer in a matter involving the interpretation of a "foreign currency contract" under section 1256.  Sixth Circuit found in favor of taxpayer.

Represented in U.S. District Court a transportation company in a jury trial involving the IRS' challenge of the per diem plan for reimbursing drivers for over-the-road travel expenses under section 62. The court issued directed verdict to the company at the conclusion of the trial with the IRS liable for attorneys' fees.

Represented a corporate taxpayer in examination by the IRS of transfer pricing issues associated with sale of business assets to an Irish company.

Represented employers with respect to IRS examinations of 401(k) and other types of retirement plans.

Represented in the U.S. Tax Court an insurance company against an IRS challenge of tax implications of alleged failed tax-deferred "A" merger under section 368 that resulted in a full concession by the IRS.

Represented in the U.S. Tax Court a corporation in connection with an IRS challenge of deductibility of premium payments made to a captive insurance company under section 831. The IRS conceded the case shortly before trial.

Represented in the Eleventh Circuit Court of Appeals a company seeking a reversal and remand from a district court decision granting the IRS motion for summary judgment on issue of whether corporate executives acted "reasonably" in establishing a per diem plan. The Eleventh Circuit reversed and remanded the case for trial, finding the company presented sufficient evidence to show a genuine dispute over reasonableness of executives' actions.

Defended in U.S. District Court a taxpayer against the IRS' motion to compel transactional tax attorney's notes and related files. The IRS motion to compel was denied based on attorney-client privilege and work product protection.

Represented in the U.S. Tax Court a corporation and subsidiaries in an IRS challenge of accumulated earnings, personal holding company status, medical reimbursement plan, repairs & maintenance versus capitalization issues, timing of deduction for disputed liabilities as accrual method taxpayer, and substantiation of expenses issues including net operating loss carryover (sections 162, 164, 168, & 172).

Represented in the Fifth Circuit Court of Appeals three home health care agencies and their owners in an action by the IRS that sought more than $250 million in excise taxes referred to as "intermediate sanctions" under section 4958 in relation to the transfer of assets and liabilities. The Fifth Circuit found in favor of the home health care agencies.

Represented in the U.S. Tax Court a credit financing company in a TEFRA proceeding in connection with an IRS challenge of the company's section 754 "step-up" in basis election and corresponding amortization deductions under sections 197, 754, & 743.

Represented in U.S. District Court the hedge fund/partnership and the TMP in a challenge by the IRS on the economic substance of investments and allocation of partnership income and deductions.

Represented in the U.S. Tax Court a large home builder against an IRS challenge of multiple conservation easements and other charitable contributions under section 170.

Represented in the U.S. Tax Court a national chartered bank in a case of first impression against an IRS challenge of the reporting of deductions by the bank of OREO costs (costs associated with property bank acquired in foreclosure — "other real estate owned"). The IRS fully conceded the case (IRC section 162).

Represented in U.S. District Court fund-of-funds in a two-week trial involving economic substance of multiple transactions and IRS imposition of accuracy-related penalties. The court found that penalties did not apply.

Represented a large corporate taxpayer on an IRS assertion that back-up withholding applied with regards to failure to properly file information returns.

Represented an employee stock ownership plan (ESOP) in examination by the IRS over qualification of the ESOP under section 401 and applicable regulations.

Represented in the U.S. Tax Court a taxpayer in an IRS challenge of the value of a historical figure's writings and related intellectual property rights.

Handled more than 10 U.S. Tax Court cases in connection with IRS challenges of the value of business interests for income, estate, gift, and excise tax purposes.

Represented in the U.S. Tax Court a large home building business in an IRS challenge of the current deductibility versus capitalization of certain expenses associated with a home building business under sections 162 and 263A.