Square D Company and Subsidiaries v. Commissioner of the Internal Revenue Service

MANION, Circuit Judge.

Square D Company attempted to take deductions for certain interest payments to its French parent that accrued in 1991 and 1992. Relying on Treasury Regulation § 1.267(a)-3, the Commissioner of the Internal Revenue Service adopted the position that any such deductions had to be taken when the interest payments were actually made, not when they accrued. Square D challenged this regulation and the Commissioner’s actions before the Tax Court. The Tax Court sided with the Commissioner, and we affirm.

I

Square D Company (“Square D”) and the Commissioner of the Internal Revenue…