Credit Life Insurance v. United States

MICHEL, Circuit Judge.

The government appeals the United States Claims Court’s grant of summary judgment in favor of The Credit Life Insurance Company (“Credit Life” or “taxpayer”) in its suit for a partial refund of income taxes paid. Credit Life Ins. Co. v. United States, No. 585-84T (Cl.Ct. Oct. 17, 1990). The Claims Court erred in concluding that in claiming a bad debt deduction, taxpayer was entitled to rely on the conclusive presumption of worthlessness in the pertinent Treasury Regulation, 26 C.F.R. § 1.166-2(d)(l) (1973), despite not meeting the conditions set forth in the regulation.…