Philip Morris Inc. v. Commissioner of Internal Revenue

WINTER, Circuit Judge:

Philip Morris Inc. appeals from a Tax Court decision (Theodore Tannenwald, Jr., Judge) rejecting its claim that income realized from the repayment of a foreign currency loan after the currency has depreciated qualifies as “income by reason of the discharge of indebtedness.” Under earlier caselaw, the income in question would have been considered as resulting from such a discharge within the meaning of Section 108 of the Internal Revenue Code in effect for the relevant tax years. We agree with the Tax Court that the Supreme Court’s decision in United States v. Centennial…