Fla. Progress Corp. v. Comm'r
United States Tax Court
U, a public utility filing consolidated Federal income tax returns with P, engaged in the retail and wholesale distribution of electricity and related services. Federal income tax rates were reduced in 1986 pursuant to the Tax Reform Act of 1986, Pub. L. 99-514, sec. 821, 100 Stat. 2372, creating an excess in deferred Federal income tax collected from customers of U. U was required to adjust utility rates in 1987 and 1988 to compensate for this overcollection.
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U, a public utility filing consolidated Federal income tax returns with P, engaged in the retail and wholesale distribution of electricity and related services. Federal income tax rates were reduced in 1986 pursuant to the Tax Reform Act of 1986, Pub. L. 99-514, sec. 821, 100 Stat. 2372, creating an excess in deferred Federal income tax collected from customers of U. U was required to adjust utility rates in 1987 and 1988 to compensate for this overcollection. U was allowed to collect funds equal to its projected fuel and energy conservation costs. Pursuant to regulatory law, monthly…
1Opinion of the Court
OPINION
Cohen, Judge:
Respondent determined deficiencies in petitioner’s consolidated Federal income tax for 1986, 1987, and 1988 in the amounts of $1,356,802, $1,321,896, and $7,099,160, respectively.
After concessions by the parties, the issues for decision are: (1) Whether one of petitioner’s subsidiaries is entitled to compute its tax liability for 1987 and 1988 pursuant to section 1341 and (2) whether funds overcollected pursuant to fuel and energy conservation cost recovery rates constitute income under section 61.
Unless otherwise indicated, all section references are to the Internal…
2Cases cited16 opinions
- Helvering v. CliffordSupreme Court of the United States · 1940
- Commissioner v. Glenshaw Glass Co.Supreme Court of the United States · 1955
- North American Oil Consolidated v. BurnetSupreme Court of the United States · 1932
- Brown v. HelveringSupreme Court of the United States · 1934
- Healy v. CommissionerSupreme Court of the United States · 1953
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3Cited by13 opinions
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