Allstate Insurance v. United States

OPINION

FUTEY, Judge.

This case is before the court on defendant’s motion for partial summary judgment and plaintiff’s cross-motion for summary judgment. Plaintiff claims reimbursement for 3 years of tax overpayment, based on an application of the tax benefit rule to salvage and subrogation recoveries. Defendant contests the applicability of the rule and contends the statutory mechanism *309for taxation of insurance companies exclusively provides for these recoveries. Furthermore, defendant argues that even if the rule is applicable, plaintiff has failed to prove a sufficient relationship between…