Chevron Corp. v. Commissioner
United States Tax Court
This case concerns the allocation and apportionment of certain State taxes between domestic and foreign source gross income. Secs. 861(b) and 862(b), I.R.C. Resolution of that issue will determine the extent to which Ps may take a credit for foreign taxes under sec. 901, I.R.C. Ps have brought into question the validity of sec. 1.861-8(e)(6)(i), Income Tax Regs.
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This case concerns the allocation and apportionment of certain State taxes between domestic and foreign source gross income. Secs. 861(b) and 862(b), I.R.C. Resolution of that issue will determine the extent to which Ps may take a credit for foreign taxes under sec. 901, I.R.C. Ps have brought into question the validity of sec. 1.861-8(e)(6)(i), Income Tax Regs. The principal State tax with which we deal is the California bank and corporation franchise tax (a so-called unitary tax, imposing "worldwide combined reporting"). 1. Held, Ps' alternative methods of allocating and apportioning State…
1Opinion of the Court
TABLE OF CONTENTS
Page
FINDINGS OF FACT
Stipulations . 722
Consolidated Return. 723
1977 and 1978 Returns . 723
Pleadings . 724
California Franchise Tax . 725
Dividends. 725
OPINION
I. Introduction. 726
II. Preliminary Matters . 727
A. Standard of Review . 727
B. Statutory Framework. 729
1. Determination of Source of Income. 729
2. Foreign Tax Credit . 729
C. Pre-1977 Regulations . 730
D. 1977 Regulations . 731
E. Special Rule for Income Taxes . 731
1. 1977 Special Rule . 731
2. 1988 Temporary Regulations . 732
3. 1991 Final Regulations . 732
a. Section 1.861 — 8(e)(6)(i) . 733
b. Section 1.861-8(e)(6)(ii) . 735
c.…
2Cases cited18 opinions
- Chevron U. S. A. Inc. v. Natural Resources Defense Council, Inc.Supreme Court of the United States · 1984
- United States v. CorrellSupreme Court of the United States · 1967
- Container Corp. of America v. Franchise Tax BoardSupreme Court of the United States · 1983
- National Muffler Dealers Assn., Inc. v. United StatesSupreme Court of the United States · 1979
- United States v. Vogel Fertilizer Co.Supreme Court of the United States · 1982
13 more not listed; retrieve them via the Exa API.
3Cited by1 opinion
- Chevron Corp. v. CommissionerUnited States Tax Court · 1995