Reading Radio, Inc. v. United States

OPINION

BOWNES, District Judge.

This is a “refund suit” for the recovery of income taxes. The focal point of the case is the allocation made of a lump-sum purchase price to the assets of a going business purchased by the plaintiff. More specifically, the plaintiff contests the Commissioner’s reallocation of purchase price, reducing the cost basis of the depreciable assets from $296,780 to $108,462. Jurisdiction is founded upon 28 U.S.C. § 1346(a) (1). In order to prevail, the plaintiff must meet the formidable burden of proof required to overcome the presumptive correctness of the…