John P. McKeague and Constance F. McKeague v. The United States

FRIEDMAN, Circuit Judge.

This is an appeal from a judgment of the United States Claims Court that the appel-lees recover from the United States in a refund suit the additional tax the Internal Revenue Service assessed as a result of its disallowance of a deduction for attorney and accountant fees the appellees had paid in a private law suit. We vacate and remand for further proceedings.

I

A. This case grows out of a bitter dispute that arose between the appellee John P. McKeague (McKeague) and the company of which he was an officer, director, and stockholder, F.W. Dwyer Manufacturing Co., Inc.,…