JPMorgan Chase & Co. v. Commissioner

FLAUM, Circuit Judge.

This case concerns the taxation of JPMorgan’s income from swap transactions. JPMorgan tried to carve out and defer a part of this income for certain costs and expenses associated with the swaps. The Commissioner of the Internal Revenue Service (“Commissioner”), and ultimately the Tax Court, concluded that these income deferrals were not proper, and that JPMorgan’s valuation methodology did not clearly reflect income. JPMorgan then appealed the Tax Court’s decision to this Court, and we remanded the case so that the Tax Court could apply a more deferential standard of…