Hartz Mountain Industries, Inc. v. Commissioner
United States Tax Court
A civil suit alleging certain antitrust violations was brought against petitioner corporation in 1978. In 1979, after settlement discussions, petitioner entered into a settlement agreement in which it agreed to pay $ 42.5 million in damages over 5 years. Petitioner alleges that this payment was intended as compensation for past lost income, and claimed the payment as an ordinary deduction.
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A civil suit alleging certain antitrust violations was brought against petitioner corporation in 1978. In 1979, after settlement discussions, petitioner entered into a settlement agreement in which it agreed to pay $ 42.5 million in damages over 5 years. Petitioner alleges that this payment was intended as compensation for past lost income, and claimed the payment as an ordinary deduction. Respondent contends that petitioner's payment resulted in a capital rather than an ordinary loss. Petitioner withheld from respondent certain documents relating to the antitrust suit on the basis that they…
1Opinion of the Court
OPINION
FAY, Judge:
This case was assigned to Special Trial Judge Carleton D. Powell pursuant to the provisions of section 7443A(b)(4) of the Internal Revenue Code of 1986 and Rule 180 et seq.1 The Court agrees with and adopts the opinion of the Special Trial Judge, which is set forth below.
OPINION OF THE SPECIAL TRIAL JUDGE
POWELL, Special Trial Judge:
Respondent determined deficiencies in and additions to the corporate petitioner’s tax liability for taxable years 1976 through 1979, and determined deficiencies in the individual petitioner’s tax liability for taxable years 1977 and 1978. Hartz…
2Cases cited13 opinions
- Hickman v. TaylorSupreme Court of the United States · 1947
- Upjohn Co. v. United StatesSupreme Court of the United States · 1981
- United States v. NoblesSupreme Court of the United States · 1975
- In Re Sealed CaseCourt of Appeals for the D.C. Circuit · 1982
- Natta v. HoganCourt of Appeals for the Tenth Circuit · 1968
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3Cited by19 opinions
- Arnold v. City of ChattanoogaCourt of Appeals of Tennessee · 1999
- Ames v. CommissionerUnited States Tax Court · 1999
- Bernardo v. CommissionerUnited States Tax Court · 1995
- Johnston v. Comm'rUnited States Tax Court · 2002
- Fu Inv. Co. v. CommissionerUnited States Tax Court · 1995
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