Substance over Form

Counsel for Fidelity Investments engaged Brattle to provide consulting and testifying services in Cross Refined Coal LLC v Commissioner, a dispute with the IRS over the firm’s allocation of $330 million in refined coal production tax credits. Brattle applied a Monte Carlo analysis to quantify the risk distribution for the partnership and individual partners and demonstrated the significant risks borne by the taxpayer. A Brattle principal testified and a team of consultants worked closely with Fidelity and their counsel for two years to build the economic and financial evidence. The court issued a bench opinion – a rare event for large corporate tax disputes – ruling in favor of Brattle’s client.