Swallows Holding, Ltd. v. Comm'r
United States Tax Court
P is a foreign corporation whose only substantial asset is unimproved land in the United States. On its 1994, 1995, and 1996 Federal income tax returns, P recognized rent and option income and claimed deductions for taxes and licenses, the result of which was a reported loss for each year.
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P is a foreign corporation whose only substantial asset is unimproved land in the United States. On its 1994, 1995, and 1996 Federal income tax returns, P recognized rent and option income and claimed deductions for taxes and licenses, the result of which was a reported loss for each year. P filed each return after its due date, but before any contact from R. R determined that sec. 882(c)(2), I.R.C., precluded P from deducting its expenses because it filed its returns untimely. In Anglo-Am. Direct Tea Trading Co. v. Commissioner, 38 B.T.A. 711 (1938), a setting similar to that here, the Board…
1DissentHolmes, J.
Section 882(c)(2) denies foreign corporations that have U.S. income the benefit of the deductions and tax credits they would otherwise get if they fail to file returns “in the manner prescribed by subtitle F.” Section 6072 — which is part of the Code’s subtitle F — imposes a time limit for filing foreign corporate returns. Before 1990, courts had construed the phrase in section 882(c)(2) — “in the manner prescribed by subtitle F” — as meaning neither “foreign corporations must file their returns by the deadline set in section 6072” nor “foreign corporations have till the end of time to file,”…
2Cases cited74 opinions
- Chevron U. S. A. Inc. v. Natural Resources Defense Council, Inc.Supreme Court of the United States · 1984
- Motor Vehicle Mfrs. Assn. of United States, Inc. v. State Farm Mut. Automobile Ins. Co.Supreme Court of the United States · 1983
- Skidmore v. Swift & Co.Supreme Court of the United States · 1944
- United States v. Mead Corp.Supreme Court of the United States · 2001
- Agostini v. FeltonSupreme Court of the United States · 1997
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