Action on Decision (AOD) 2017-07—appearing in the Internal Revenue Bulletin 2017-42 (dated October 16, 2017)—states that the IRS Commissioner does not acquiesce to a 2015 decision of a federal district court that addressed issues under the passive activity rules of section 469.
In Stanley v. United States, No. 5:14-CV-05236 (W.D. Ark. 2015), the federal district court granted summary judgment for the taxpayers in their tax refund suit. At issue were questions about the taxpayer/husband's material participation in real estate activities, and whether all work engaged in by him for the benefit of a property-management company would be counted toward determining whether he materially participated in his rental real estate activity.
AOD 2017-07 appears in IRB 2017-42 [PDF 211 KB] and explains that the nonacquiescence relates to the holdings that:
© 2018 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.
KPMG International Cooperative (“KPMG International”) is a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm.
The KPMG logo and name are trademarks of KPMG International. KPMG International is a Swiss cooperative that serves as a coordinating entity for a network of independent member firms. KPMG International provides no audit or other client services. Such services are provided solely by member firms in their respective geographic areas. KPMG International and its member firms are legally distinct and separate entities. They are not and nothing contained herein shall be construed to place these entities in the relationship of parents, subsidiaries, agents, partners, or joint venturers. No member firm has any authority (actual, apparent, implied or otherwise) to obligate or bind KPMG International or any member firm in any manner whatsoever. The information contained in herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 4366, 1801 K Street NW, Washington, DC 20006.