In the Altera1 decision issued on July 27, 2015, the U.S. Tax Court struck down 2003 cost-sharing regulations that required the sharing of stock-based compensation ("S.B.C.") under a cost sharing agreement ("C.S.A.") with a party under common control for purposes of Code 482. The I.R.S. filed an appeal in the Altera case with the Ninth Circuit in February 2016.2

On January 12, 2018, the I.R.S. issued a directive that no new examinations on S.B.C. in qualified C.S.A.'s may be opened pending the issuance of an opinion in the Altera appeal.3

However, in the case of an ongoing S.B.C. examination, the taxpayer may agree to extend the statute of limitations until the final determination of the appeal in the Altera case. Otherwise, the examination will continue without regard to the directive.