MoneyGram International, Inc. v. Commissioner
United States Tax Court
To qualify as a "bank" under I.R.C. section 581, a taxpayer must meet three distinct requirements. First, it must be "a bank or trust company incorporated and doing business" under Federal or State law. Second, "a substantial part" of its business must "consist[] of receiving deposits and making loans and discounts." Third, it must be "subject by law to supervision and examination" by Federal or State authorities having supervision over banking institutions.
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To qualify as a "bank" under I.R.C. section 581, a taxpayer must meet three distinct requirements. First, it must be "a bank or trust company incorporated and doing business" under Federal or State law. Second, "a substantial part" of its business must "consist[] of receiving deposits and making loans and discounts." Third, it must be "subject by law to supervision and examination" by Federal or State authorities having supervision over banking institutions. P, a U.S. corporation, is in the "money services business." Its business involves the movement of money through three main channels:…
1Opinion of the Court
OPINION
Lauber, Judge:
With respect to petitioner’s Federal income tax for the taxable years 2005 — 2007 and 2009, the Internal Revenue Service (IRS or respondent) determined deficiencies in the following amounts:
Year Deficiency
2005 . $13,852,600
2006 . 25,471,993
2007 . 31,796,692
2009 . 11,644,589
In large part, these deficiencies stem from the disallowance of bad debt deductions that petitioner claimed for 2007 and 2008 under section 166(a) with respect to “non-real-estate mortgage investment conduit” (non-REMIC) asset-backed securities. Normally, losses realized upon the worthlessness of such…
2Cases cited25 opinions
- Davis v. Michigan Department of the TreasurySupreme Court of the United States · 1989
- Dolan v. United States Postal ServiceSupreme Court of the United States · 2006
- Carcieri v. SalazarSupreme Court of the United States · 2009
- Iselin v. United StatesSupreme Court of the United States · 1926
- Commissioner v. LundySupreme Court of the United States · 1996
20 more not listed; retrieve them via the Exa API.
3Cited by2 opinions
- Bradford v. United States Department of the Treasury—Internal Revenue Service (In re Bradford)United States Bankruptcy Court, M.D. Georgia · 2015
- MoneyGram International, Inc. and Subsidiaries v. CommissionerUnited States Tax Court · 2019