American Mutual Life Insurance Company and Subsidiaries v. United States

DECISION

GAJARSA, Circuit Judge.

American Mutual Life Insurance Co. (“American Mutual”) appeals from a grant of summary judgment by the United States Court of Federal Claims finding that income resulting from releases in life insurance reserves was required to be included as taxable income because the tax benefit rule is unavailable where the event, in this case the releases, does not meet the “fundamental inconsistency” test and where the taxpayer receives a tax benefit. Am. Mut. Life Ins. Co. v. United States, 46 Fed. Cl. 445 (2000). For the reasons discussed below, we affirm.

BACKGROUND

The…