United Dominion Industries, Incorporated v. United States

Reversed and remanded by published opinion. Judge KING wrote the opinion, in which Judge TRAXLER and Judge SEYMOUR joined.

OPINION

KING, Circuit Judge:

The question in this case arises from the filing of consolidated tax returns by the predecessor of plaintiff United Dominion Industries, Incorporated (the “taxpayer” or “AMCA” 1 ). The taxpayer and the Government (the “IRS”) disagree on how to determine the amount of the taxpayer’s product liability expenses that may be characterized as “product liability loss.”

The IRS appeals from the district court’s judgment ordering tax refunds and statutory…