Jupiter Painting Contracting Co. v. United States

OPINION

JOSEPH S. LORD, III, Chief Judge.

This motion for discovery against the Government arises in a taxpayer’s suit for refund and abatement of federal employment withholding taxes. The taxpayer’s claims total $38,341.18. The Government has counterclaimed for $48,478.80, a sum which includes unpaid taxes, penalties and interest. At issue is whether the taxpayer properly reported as travel expenses funds paid to its employees in 1971 and 1972. The Government contends that these payments were in fact compensation and that by reporting them as expenses the taxpayer substantially understated its…