Chemtech Royalty Associates, L.P. v. United States

JERRY E. SMITH, Circuit Judge:

In a prior appeal of this tax case, we affirmed the district court’s decision to disregard the partnership form of Chem-tech Royalty Associates, L.P. (“Chemtech I”), and Chemtech II, L.P. (“Chemtech II”), for tax purposes but vacated and remanded as to the penalty award. On remand, the court reinstated the vacated penalty award and further held that a tax penalty for gross-valuation misstatement applied to Chemtech II. Through its wholly-owned subsidiary Dow Europe, S.A., which was the tax matters partner for Chemtech I, real party in interest The Dow Chemical…