Home Mutual Insurance Company, Cross v. Commissioner of Internal Revenue, Cross

TONE, Circuit Judge.

This case involves two provisions of the Internal Revenue Code concerning the taxation of mutual casualty insurance companies: § 832(b)(5), which allows a “losses incurred” deduction from the companies’ underwriting income; and § 821(e), which permits certain companies a “special transitional underwriting loss” deduction from its statutory underwriting income. The issues *337presented are highly technical and can be adequately stated only after a more detailed description of the statute. The Tax Court ruled in favor of the taxpayer on one issue and in favor of the Commissioner…