ASAT, Inc. v. Commissioner
United States Tax Court
P, a wholly owned domestic subsidiary, purchased assembly services from its parent, a foreign corporation. During an IRS audit of P's 1991 Federal corporate income tax return, the IRS notified P that it would need to be appointed its parent's limited agent under sec. 6038A(e)(1), I.R.C. P did not obtain the authorization of agent before R issued a notice of deficiency.
Read the full summary
P, a wholly owned domestic subsidiary, purchased assembly services from its parent, a foreign corporation. During an IRS audit of P's 1991 Federal corporate income tax return, the IRS notified P that it would need to be appointed its parent's limited agent under sec. 6038A(e)(1), I.R.C. P did not obtain the authorization of agent before R issued a notice of deficiency. Consequently, pursuant to sec. 6038A(e)(3), I.R.C., which grants the Commissioner the authority to determine in her sole discretion the cost of goods sold and deductions arising out of transactions between a domestic…
1Opinion of the Court
VASQUEZ, Judge:
Respondent determined a deficiency in petitioner’s Federal income tax in the amount of $407,592 and an accuracy-related penalty under section 6662(a)2 of $81,518 for its taxable year ending April 30, 1991. Although respondent gave alternative grounds for each adjustment in the notice of deficiency, her first ground in regard to petitioner’s cost of goods sold and net operating loss was section 6038A(e)(3), which grants the Commissioner the authority to determine in her sole discretion the cost of goods sold and expenses arising out of transactions between a domestic corporation…
2Cases cited26 opinions
- Welch v. HelveringSupreme Court of the United States · 1933
- New Colonial Ice Co. v. HelveringSupreme Court of the United States · 1934
- Consumer Product Safety Commission v. GTE Sylvania, Inc.Supreme Court of the United States · 1980
- United States v. American Trucking AssociationsSupreme Court of the United States · 1940
- Deputy, Administratrix v. Du PontSupreme Court of the United States · 1940
21 more not listed; retrieve them via the Exa API.
3Cited by19 opinions
- Esgar Corp. v. Comm'rUnited States Tax Court · 2012
- Gibson & Associates, Inc. v. CommissionerUnited States Tax Court · 2011
- Hill v. Comm'rUnited States Tax Court · 2003
- Aspro, Inc. v. CIRCourt of Appeals for the Eighth Circuit · 2022
- Cherry v. CommissionerUnited States Tax Court · 1998
14 more not listed; retrieve them via the Exa API.