FindLaw.com (a free service) had two cases for 31 May 2012.
In Starnes v. Comm'r of Internal Revenue, the Fourth Circuit upheld 2-1 a Tax Court decision in what the lone dissenter wrote "This case involves a straightforward transaction made complicated so as to facilitate the fraudulent avoidance of a tax liability."
On one hand,it's difficult to disagree with the dissent. On the other hand, it looks like a excellent example of estate planning. I suspect the Service is going to pursue this one up to Johnny and the Supremes.
The United States Federal Circuit made the IRS 0 for 2 when it reversed the Court of Federal Claims in Dominion Resources v. US, No. 2011-5087. In a concurring opinion, Judge Clevenger wrote "the government failed to shoulder the burden assigned to it by State Farm, and that Treasury Regulation 1.263A-11(e)(1)(B), as it applies to property temporarily withdrawn from service, is accordingly unlawful.
What surprised me in this case that the issues are so simple that it could be used as an exam question in a gradate Tax course.
Dick