General Motors Acceptance Corp. v. Director

Plaintiff, General Motors Acceptance Corporation (GMAC), a subsidiary of General Motors (GM), appeals from the Tax Court’s dismissal of GMAC’s complaint seeking a refund of a Corporate Business Tax (CBT) GMAC paid. GMAC filed its claim untimely and the doctrine of equitable recoupment does not apply. We affirm.

When GMAC filed its CBT return for the year 2000 it included 50% of dividends generated from its foreign subsidiary as taxable income. GMAC reported the dividends because it understood mistakenly that it owned less than 80% of the subsidiary.

The Internal Revenue Service (IRS) then…