Volvo Cars of North America, LLC v. United States

OPINION

NIEMEYER, Circuit Judge:

In this federal income tax refund case, Volvo Cars of North America, Inc., and its subsidiaries and predecessors (collectively “Volvo”), wrote off excess and slow-moving inventory that it purportedly sold to a warehouser under an April 6, 1983 contract, thus reducing its taxable income for the 1983 tax year. When the IRS asserted that the sales were not bona fide sales, because Volvo retained control over the inventory even after Volvo transferred the inventory, Volvo paid the taxes avoided by the write-off and commenced this action against the United States for…